Pension Plan Regulatory Relief And COVID-19 Relief Measures: An Update

In this summary, we provide an update to the end of October 2020 on COVID-19 relief measures in respect of registered pension plans announced by pension regulators and enacted by governments across Canada. The announcements and associated regulatory amendments are intended to provide relief to participating employers and members of registered pension plans.

Federal – Income Tax Regulations

On July 2, 2020, the federal government published the following  draft amendments to the Income Tax Regulations (“Tax Regulations”) in respect of registered pension plans:

Borrowing

Under the Tax Regulations, a registered pension plan is prohibited from borrowing, except in limited circumstances. Under the draft amendments,  it is proposed that the 90-day limit on borrowing and the prohibition on a borrowing being part of a series of loans or repayment be temporarily suspended. A registered pension plan would be permitted to enter into a loan or a series of loans after