PMAC is supportive of the FCAA’s goal of seeking stakeholder feedback on options to amend the solvency funding framework for single employer private sector pension plans (SEPPPs) under The Pension Benefits Act, 1992 (Act) and the Pension Benefits Regulations, 1993 (Regulations).
Defined benefit (DB) plans are an integral part of Canadians’ retirement income savings, even as increasingly fewer of us are covered by such plans due to increased complexities and expenses in funding them. PMAC supports efforts to ensure that pension funding rules better support long-term plan sustainability and benefit security so that DB plans continue to provide lifetime pensions to their members and other beneficiaries.
As noted in the Report, other Canadian jurisdictions have also recently examined solvency funding frameworks for DB plans. PMAC has consistently advocated for harmonized approaches across Canada; we believe that Canadians should be entitled to similar protections, and benefit from reduced underlying plan complexity and costs, no matter their jurisdiction of residence.
Read the submission in full here