Pension plans

On April 11, the Supreme Court of Canada denied the application for leave to appeal the challenge to the Act to foster the financial health and sustainability of municipal defined benefit pension plans (Bill 15).

On December 27, 2023, the Quebec government published proposed regulation amending the Regulation respecting supplemental pension plans (Proposed Regulation)¹, intended to offer greater flexibility in the use of retirement savings as of age 55. This flexibility may be interesting for individuals who wish to make larger withdrawals in the early years of their retirement so they can defer government pensions.

On January 23, the Government of Quebec adopted the Regulation respecting the funding of defined-benefit pension plans of the municipal and university sectors (Regulation). The Regulation will come into force on February 22, 2024, and amendments will apply for actuarial valuations as at December 31, 2023.

After a significant rise in interest rates in previous quarters, the year ended with slightly lower rates than at the beginning of 2023. Despite the large variation of this key indicator, the financial position of the average pension plan remained relatively stable over the year. This favourable financial position allows many administrators and pension committees to prioritize and implement strategies that benefit their organization.

After a significant rise in interest rates in previous quarters, the year ended with slightly lower rates than at the beginning of 2023. Despite the large variation of this key indicator, the financial position of the average pension plan remained relatively stable over the year. This favourable financial position allows many administrators and pension committees to prioritize and implement strategies that benefit their organization.

The Financial Services Regulatory Authority of Ontario (FSRA) recently released its annual report, which outlines its many activities in the past year. This bulletin summarizes FSRA’s main activities in 2023.

Our specialists prepared a reference guide with the key social security parameters for 2024. This quick and easy-to-use document is your reference for public pension plans and other retirement plans. Feel free to bookmark this page!

The average pension plan’s going concern position remained relatively stable in Q3 and since the beginning of the year, whereas their solvency position improved during those same periods. Higher interest rates are generally favourable for pension plans, whose financial situation has remained at enviable levels for some quarters.

The average pension plan’s going concern position remained relatively stable in Q3 and since the beginning of the year, whereas their solvency position improved during those same periods. Higher interest rates are generally favourable for pension plans, whose financial situation has remained at enviable levels for some quarters.

The average pension plan funded ratio changed little in Q2 2023 and year-to-date.

The average pension plan funded ratio, excluding the effect of asset smoothing, is 119% as at June 30, 2023, down 1% over the second quarter and at the same position as at the beginning of the year.

Many private-sector organizations must include in their financial statements the recognition of their obligations toward defined benefit pension plans (DB pension plans) and other post-employment benefit plans, such as medical care plans offered to retirees (other benefits).

The Ministry of Finance of Ontario recently published a consultation document on proposed regulations for implementing a permanent target benefit framework in Ontario. Since 2007, over 50 Multi-Employer Pension Plans (MEPPs) that can reduce accrued benefits have been eligible for a temporary exemption from solvency funding requirements until 2024. These plans are also known as Specified Ontario MEPPs (SOMEPPs). The new proposed regulations will be implemented with the objective of continuing this exemption for SOMEPPs, while ensuring proper governance and funding of these plans and increasing member transparency and equity.