Quebec and federal government announce relief measures for pension plans
On April 15 and 16, 2020, Retraite Québec and the Department of Finance Canada announced relief measures to help pension plans registered in Quebec and at the federal level in response to the crisis caused by the COVID-19 pandemic.
Retraite Québec issued a press release (in French only) announcing temporary flexible measures for the administrative management of pension plans. Essentially, these measures provide for:
- a three-month extension granted to plan sponsors for submitting certain documents to Retraite Québec and plan members; and
- monthly updates of the solvency ratio that is taken into consideration for transfers or refunds paid from defined benefit pension plans.
For plan sponsors that carry out full settlements of benefits despite a solvency ratio below 100%, this latest measure could result in an increase in special contributions for residual benefits.
Retraite Québec also announced temporary relief measures for 2020 aimed at:
Following a series of temporary measures announced on March 27 by the Office of the Superintendent of Financial Institutions (OSFI) (see our bulletin), the Canadian government has announced an additional relief measure for the funding of federally regulated pension plans.
This temporary and immediate relief will be in the form of a moratorium, through the remainder of 2020, on solvency payment requirements for defined benefit plans. The government will also consult various stakeholders in the coming months about easing funding obligations in 2021, if needed.
Defined benefit plans, defined contribution plans, RRSPs and other savings plans: none have been spared by COVID-19, as its many repercussions have quickly spread.
Our experts are working on a webinar to be presented on April 30. They will analyze the current situation from four different angles: financial, operational, administrative, and communication and will share avenues for consideration for the coming weeks and months to help your organizations get ready for what’s to come.
The presentation will be followed by a question and discussion period with participants.
When? April 30, 9 to 10 a.m.
Want to participate? Email us!
* In French only
Normandin Beaudry’s consultants will continue to closely monitor the pension plan sector and will keep you informed of future developments. Feel free to contact us if you have any questions.