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Article | Client Advisory

Québec amends the funding rules for defined benefit multi-jurisdictional pension plans

Pensions Corporate Consulting|Retirement
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April 23, 2019

Quebec amends the funding rules for defined benefit multi-jurisdictional pension plans to reintroduce solvency funding with a reduced target solvency ratio

The final version of the regulation re-introducing solvency funding requirements for defined benefit pension plans registered in Québec that have members in other jurisdictions has been published and will come into force on April 25, 2019, with retroactive effect to December 31, 2018. It requires employers who sponsor such a plan to make special payments if the solvency ratio of the plan is below 75%. Some changes were made compared to the draft regulation that was published last December, especially related to the transition rules. This Client Advisory will be of interest to sponsors and administrators of pension plans registered in Québec that have members in other jurisdictions.

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