Alberta Releases Temporary Solvency Funding Relief Regulations

Sponsors of Alberta-registered defined benefit (DB) pension plans received welcome news on September 21, 2012 as the Alberta government released new regulations providing temporary relief from solvency funding obligations. The new rules, which apply to all DB pension plans other than specified multi-employer plans, provide a limited opportunity for employers to double from five to 10 years the period over which solvency funding deficiencies must be eliminated.

Specifically, Alberta Regulation 161/2012 permits plan administrators filing an actuarial valuation report with a review date between December 31, 2011 and December 31, 2012 to consolidate all solvency deficiencies and seek the consent of the Superintendent of Pensions for an extension of the solvency deficiency amortization period from five to 10 years. The two primary conditions associated with obtaining such relief are that such consent must be disclosed to members in the first annual statement following