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Article | Client Advisory

Temporary solvency relief for defined benefit plans registered in British Columbia

Pensions Corporate Consulting|Retirement

March 8, 2019

Administrators of DB plans registered in BC can now consolidate and amortize existing solvency deficiencies over 10 years instead of 5 (“fresh start”)

British Columbia’s Pension Benefits Standards Regulation has been amended to provide a new round of temporary solvency relief measures for defined benefit plans registered in British Columbia with a review date between December 31, 2018 and December 31, 2020 (inclusive). Under the new relief measures, a plan can consolidate existing solvency deficiencies and amortize the consolidated deficiency over a 10-year period, although specific provisions will depend on whether the plan administrator had applied for similar temporary relief provided in 2016. Additional disclosure to members and pensioners is required but an administrator does not need their consent.

This Client Advisory sets out the requirements and rules with respect to temporary solvency funding relief and will be of interest to plan administrators of defined benefit plans registered in British Columbia.

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