Pension regulators across Canada have been taking steps
to address the impact of COVID-19 on registered pension plans,
including deadline extensions, restrictions on portability
transfers and certain exceptions for plans that temporarily reduce
contributions. In this update we take a closer look at the various
relief and restrictions applicable to federally registered pension
plans subject to the Pension Benefits Standards Act, 1985
(Canada) ("PBSA") and Income Tax Act
(Canada)("ITA").
Funding Relief for DB Plans
On April 15, the federal government
announced that it would provide immediate, temporary relief to
sponsors of federally regulated, defined benefit ("DB")
pension plans. As previously
reported, the proposed relief is expected to take the form of a
moratorium, through the remainder of 2020, on solvency payment
requirements for defined benefit plans.
