This bulletin provides a reminder with respect to the new
funding rules for Ontario defined benefit (DB) pension plans that
came into effect on May 1, 2018. These new rules under the Ontario
Pension Benefits Act (PBA) necessitate changes to certain
plan-related documents, including the pension plan text, annual and
biennial member statements, and the Statement of Investment
Policies and Procedures (SIPP).
These changes were discussed at our previous client seminars and
are briefly discussed again below.
Pension Plan Text
The new funding rules provide that a DB pension plan text must
set out the obligation of the employer (and members, in the context
of a jointly sponsored pension plan) to contribute in respect of
the Provision for Adverse Deviation (PfAD) in respect of the normal
cost, any additional going concern liabilities associated with a
benefit improvement and any reduced solvency deficiency under the
plan.
