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ARTICLE · 30 JUNE 2009

Ontario Introduces A Package Of Changes In Response To Current Economic Challenges

Borden Ladner Gervais LLP
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On June 23, 2009, the Ontario Government announced the filing of Regulation 239/09 (the "Regulation") under the “Pension Benefits Act” (Ontario).

CanadaEmployment and HR

On June 23, 2009, the Ontario Government announced the filing of Regulation 239/09 (the "Regulation") under the Pension Benefits Act (Ontario). The Regulation introduces a number of changes to implement the initiatives first proposed in December 2008 and committed to by the Government in the 2009 Ontario Budget.

Temporary Solvency Funding Relief

The administrator of a pension plan that provides defined benefit pension benefits may elect to use one or more of the following options:

Option 1: A deferral of the start of the period to pay the required special payments to liquidate a new going concern unfunded liability or a new solvency deficiency, up to 12 months.

Option 2: A consolidation of payments remaining under past solvency amortization schedules into a new 5-year schedule.

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