On August 9, 2017, the Nova Scotia Superintendent of Pensions
announced temporary solvency relief for defined benefit pension
plans available effective August 8, 2017. The changes allow pension
plan sponsors a one-time option to fund eligible solvency
deficiencies over a period up to 15 years, rather than the usual
5-year period. Eligible solvency deficiencies are those determined
in valuation reports with valuation dates from December 30, 2016 to
January 2, 2019 as well as existing solvency deficiencies being
funded over a 5-year period.
Nova Scotia previously introduced solvency relief measures in February, 2013 (when the amortization period
was also extended to 15 years), and November, 2009 (10 years). As previously, plan
administrators must notify plan members, former members, retired
members and bargaining agents if solvency relief is being sought.
Essentially, if one-third of the plan members, former members or
retired members object in writing, the plan cannot
