Canada Gazette, Part I, Volume 158, Number 37: Regulations Amending the Pension Benefits Standards Regulations, 1985 (Solvency Reserve Accounts and Multi-Employer Pension Plans)

September 14, 2024

Statutory authority
Pension Benefits Standards Act, 1985

Sponsoring department
Department of Finance

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issues

Solvency reserve accounts

Federally regulated defined benefit pension plans are required to be funded on both a solvency and a going concern basis. External conditions, such as the uncertainty of investment returns on assets and interest rates on liabilities, can lead to unpredictable and volatile solvency funding requirements for employers sponsoring defined benefit plans. In some cases, employers that were required to make special payments to make up a deficit may find their plans are over fully funded in the following year. In these circumstances, however, federal pension legislation’s rules on refunding surplus funds to an employer are highly restrictive, leaving these special payments “trapped” in the plan as surplus. As a result, employers typically contribute only the minimum required special payments into their plan, which may not be in the best interest of plan members’ and retirees’ pension benefit security. In Budget 2022, the Government announced the introduction of a legislative framework for SRAs for federally regulated defined benefit pension plans. Regulatory amendments to the PBSR are required to set out the requirements for the establishment of an SRA and set out the prescribed conditions to govern their operation.

Multi-employer pension plans solvency funding requirements

Defined benefit MEPPs and other pension industry stakeholders have noted that there is a lower risk for MEPPs terminating in an underfunded position compared to single-employer defined benefit plans because the risk of insolvency and underfunding is shared across multiple participating employers. As a result, stakeholders have advocated that MEPPs should not be subject to the same solvency funding standards as those of single-employer plans (i.e. 100% solvency ratio). It has also been noted that the cost of maintaining current solvency funding standards has the potential to result in lower benefit levels for retirees, as benefits may need to be decreased in order to cover a solvency deficiency.

Lowering the solvency funding requirements for federally regulated MEPPs (that are not negotiated contribution plans) is not likely to result in reductions in benefits. It would allow plans greater flexibility in setting a sustainable level of benefits for plan members and retirees.

Background

Solvency reserve accounts

The federal Pension Benefits Standards Act, 1985 (PBSA) and the PBSR apply to private sector plans linked to federally regulated areas of employment (banking, interprovincial transportation, telecommunications, etc.), all private sector employment in the Territories, and employment in certain federal Crown corporations. The PBSA and the PBSR do not govern the core federal public service, Royal Canadian Mounted Police, or Canadian Forces pension plans.

Under the PBSA and the PBSR, federally regulated defined benefit pension plans are required to be fully funded on a going concern basis (i.e. where the plan is assumed to be ongoing), and on a solvency basis (i.e. where the plan is assumed to be terminated and all benefits must be paid). If plan liabilities exceed plan assets, the plan has a funding deficit and is required to make special payments, in addition to their normal cost contributions, which are to be amortized over a number of years (15 for a going concern deficit and 5 for a solvency deficit), instead of having to pay the deficit all at one time.

These funding rules protect the rights and interests of plan members and beneficiaries by ensuring that defined benefit plans have sufficient assets to cover their liabilities, which supports benefit security and long-term plan sustainability. At the same time, the PBSA provides the flexibility for employers to amortize pension deficits over time, in recognition that deficits may be too large to eliminate all at once without harming the financial integrity of the employer.

In addition to special payments, external conditions, such as better-than-expected investment returns or higher interest rates, may help plans to eliminate pension deficits at a faster pace and can potentially give rise to a pension surplus. In circumstances where a plan experiences a pension surplus following a period of required employer special payments, some employer special payments may have proven to be unnecessary to secure pension benefits. These special payments may now be “trapped” in the plan as surplus, as under the PBSA refund of surplus provisions, employers may be unable to recover previously contributed special payments once the plan is in surplus.

The PBSA provides strict requirements for a refund of plan surplus to the employer and requires the consent of the Office of the Superintendent of Financial Institutions. For an ongoing plan, the refund of surplus to the employer is limited to the amount of surplus in excess of the greater of (a) two times the employer’s current service cost,^{footnote 1} and (b) 25% of the plan’s solvency liabilities.^{footnote 2} Additionally, the employer may only seek the consent of the Superintendent of Financial Institutions for a refund of surplus after establishing either an entitlement to the surplus under the plan documents or a claim to the surplus. An employer can establish a claim to the surplus by obtaining the consent of two-thirds of the plan members and two-thirds of the group consisting of former members (i.e. retirees and vested deferred members) and any persons within a class prescribed by regulations.

Given these requirements, employers can face a pension funding asymmetry by bearing the downside funding risk, while having highly restricted access to any plan surplus that may arise. This can create an opportunity cost for employers that could have used the special payment amounts contributed for other purposes, such as investing in the business.

In Budget 2022, the Government announced the introduction of a legislative framework for SRAs for federally regulated defined benefit pension plans. These are designed to address the problems associated with trapped capital and encourage more employer contributions to their plans. SRAs would be separate or notional accounts within a pension fund into which employers could remit certain types of payments that could be withdrawn at a later date if the plan is sufficiently well funded (and subject to other conditions). This would give employers improved funding flexibility while incentivizing them to pay off pension deficits when they are financially able and improve retiree income security.

Amendments to the PBSA to allow for the establishment of SRAs were introduced in Budget Implementation Act, 2022, No. 1, which received royal assent on June 23, 2022. These amendments will come into force on a day fixed by an Order in Council and include provisions governing the general operation of an SRA and the associated responsibilities of employers and plan administrators. Regulatory amendments to the PBSR are required to set out the requirements for the establishment of an SRA and set out the prescribed conditions to govern their operation. The legislative framework gives the Governor-in-Council broad regulatory-making powers with respect to SRAs under section 39 of the PBSA to ensure that necessary regulatory details concerning the establishment and administration of the SRA are included in the framework.

Multi-employer pension plan solvency funding requirements

Budget 2021 announced a revised framework for the funding of federally regulated negotiated contribution (NC) plans that would exempt these plans from federal solvency funding requirements. Legislative amendments were made through the Budget Implementation Act, 2021, No. 1, which received royal assent on June 29, 2021, and regulatory amendments were prepublished in the Canada Gazette, Part I, on June 24, 2023.

There are five federally regulated MEPPs that are not NC plans and would not fall under this revised framework. Stakeholders have previously highlighted that, because multiple employers participate in a MEPP, there is a lower likelihood that MEPPs would be required to terminate underfunded, and therefore a 100% solvency ratio requirement is unnecessary. It has also been noted that the 100% solvency funding requirement may not be in the best interest of plan members and retirees. Because participating employers in a MEPP typically have fixed levels of contributions, MEPPs may be forced to offer lower pension benefit levels for their members and retirees to ensure they can meet solvency funding requirements to cover a funding deficit. In addition, many provincial jurisdictions maintain an 85% solvency funding requirement for their respective MEPPs, and the federal jurisdiction is currently one of the only jurisdictions to require full solvency funding for MEPPs.

In correspondence with some MEPP plans, the Minister of Finance has indicated that the Government recognizes that the existing solvency funding requirements may not be in the best interest of MEPP members and retirees. The Minister also committed to developing proposed amendments to the PBSR to lower the solvency funding requirement from 100% to 85% for MEPPs that do not meet the definition of negotiated contribution plans. This would bring the federal jurisdiction into better alignment with the provinces in terms of required solvency funding for MEPPs.

Objective

The objectives of the proposed Regulations are

• To improve the flexibility and sustainability of federally regulated defined benefit pension plans for plan sponsors, and to enhance the retirement security of defined benefit plan members and retirees by encouraging sponsors to make more than the minimum required contributions into their plans.
• To improve the long-term sustainability of federally regulated non-NC MEPPs and improve the retirement security of their members and retirees, and to bring the federal solvency funding framework for MEPPs into closer alignment with provincial jurisdictions.

Description

Solvency reserve accounts

The proposed Regulations would establish requirements and conditions related to the operation of SRAs for federally regulated defined benefit pension plans. These would include conditions on the establishment of an SRA by plan administrators (such as outlining the design of the SRA in the plan’s text), eligibility requirements on the types of employer payments that could be made into an SRA, restrictions on the withdrawal of funds from an SRA by the employer, and reporting requirements with respect to disclosures to plan members and retirees.

In terms of eligible payments, under the proposed Regulations, the employer would only be able to remit into the SRA the following types of payments: (1) any special solvency payments required to amortize a solvency funding deficiency (including those required under a distressed pension plan workout agreement); (2) any additional solvency special payments that are required to be made after a plan amendment; and (3) any contributions in excess of those necessary to meet the tests and standards for solvency.

Additionally, the proposed Regulations would establish the following restrictions on the amount of funds an employer can withdraw from an SRA:

• Any withdrawal from the SRA cannot cause the plan’s going concern ratio or its solvency ratio to fall below 1.05 (i.e. below 105% funded). This is to lessen the risk that a withdrawal from the SRA could negatively impact the ability of the plan to provide for its benefit obligations.
• An employer may not withdraw more than 20% of the SRA’s eligible surplus in a given year. The SRA’s eligible surplus (i.e. the maximum amount of funds that can be withdrawn from the SRA while maintaining a solvency ratio of 1.05) would be determined by the most recently filed actuarial valuation report.
• On the termination of the pension plan, an employer may withdraw any remaining funds in the SRA only after all benefit obligations are fully paid.

With regard to the plan administrator’s reporting requirements for plan members and retirees, the plan administrator will be required to include information on the operation of its SRA in its annual statement to members and retirees. The proposed Regulations would require that this report include information such as the total amount of funds in the SRA, payments into and withdrawals from the SRA during the preceding plan year, and the impact of these payments and withdrawals on the overall funding status of the plan.

Multi-employer pension plan solvency funding requirements

The proposed Regulations would reduce the solvency funding requirement for federally regulated MEPPs, that are not NC plans, from 100% to 85%.

Regulatory development

Consultation

Solvency reserve accounts

Between November 6, 2020, and January 14, 2021, the Department of Finance conducted a public consultation on proposals to strengthen the framework for federally regulated pension plans. A proposed framework for SRAs was included as part of this consultation.

The Government received written submissions from over 40 stakeholder groups. These groups were widely representative of retiree stakeholders across Canada, and included pensioners and retirees (e.g. Canadian Federation of Pensioners, National Pensioners Federation, CN, Bell Pensioners), labour groups (e.g. Canadian Labour Congress, Unifor, Teamsters), plan sponsors (e.g. NAV CANADA, CMHC, Bank of Canada, Bell Canada), actuarial firms (e.g. Mercer, Eckler, Aon), life insurance companies (e.g. Canadian Life and Health Insurance Association, Sun Life), and industry associations (Canadian Institute of Actuaries, Association of Canadian Pension management, Pension Investment Association of Canada).

Most stakeholders were supportive of the proposed regulatory framework. While some plan administrators advocated for eliminating any limits on employers’ access to surplus funds, unions and retirees’ groups advocated for having these limits in place as safeguards against excessive employer withdrawals. Additionally, there were some opposing views shared with regard to the proposed annual withdrawal limits. While some plan administrators agreed that this was an understandable limit to protect retirees, many stated this was unnecessary given the solvency and going concern ratio requirements and would merely restrict employers’ financial flexibility. In addition, in terms of eligible payments, plan administrators advocated for maximum flexibility on making payments into the SRA while labour and retiree representatives typically emphasized restricting eligible payments to only special solvency funding payments. The proposed Regulations were developed with a mind to promote employer flexibility to the extent possible without imposing undue risk to benefit security (i.e. 1.05 ratio requirements and 20% annual withdrawal limit proposals were retained).

Further consultations will take place with stakeholders through the prepublication of the proposed Regulations through the Canada Gazette, Part I.

Multi-employer pension plan solvency funding requirements

As part of the continual review and monitoring of the federal pension framework, the Department of Finance (the Department) regularly engages with pension industry stakeholders, including plan sponsors and members of non-NC MEPPs, on solvency funding requirements. In addition, throughout 2022 and 2023, the Department engaged with representatives of some non-NC MEPPs to discuss issues of long-term plan sustainability and benefit security related to solvency funding rules. The Department provided notice of the proposed Regulations by email to all non-NC MEPP plan administrators in fall 2023 and has not received any concerns with the proposal.

Further consultations will take place with stakeholders through the prepublication of the proposed Regulations in the Canada Gazette, Part I.

Modern treaty obligations and Indigenous engagement and consultation

Solvency reserve accounts

The proposed Regulations are not expected to have any differential impacts on Indigenous Peoples or implications for modern treaties, as per Government of Canada obligations in relation to rights protected by section 35 of the Constitution Act, 1982, modern treaties, and international human rights obligations.

Multi-employer pension plan solvency funding requirements

The proposed Regulations would only affect Indigenous Peoples to the extent that current and former employers (and their survivors) are members of federally regulated non-NC MEPPs. The proposed Regulations would improve the sustainability of these types of plans and their members/retirees.

Affected Indigenous Peoples who are members of federally regulated non-NC MEPPs have been engaged through their plan administrators, who have been informing plan members of any updates to the ongoing regulatory process. The plan administrators have indicated that their members are supportive of the proposed Regulations.

Instrument choice

Solvency reserve accounts

Budget 2022 introduced legislative amendments to establish the federal framework for SRAs. The proposed Regulations are required to operationalize the legislative amendments and, therefore, no other instruments were considered.

Multi-employer pension plan solvency funding requirements

The proposed Regulations are intended to change the solvency funding standards for non-NC MEPPs. These requirements are set out in the PBSR and, therefore, regulatory amendments are the only option to change the funding standards.

Regulatory analysis

Benefits and costs

Benefits

Solvency reserve accounts

The proposed Regulations would operationalize the federal SRA framework that was introduced in Budget 2022 and would provide employers of federally regulated defined benefit pension plans with additional financial flexibility when making contributions. When a plan has an SRA, certain types of payments may be remitted into the SRA, and then withdrawn by the employer at a later date if their pension plan is sufficiently funded and the prescribed conditions are met. This enables employers to avoid issues associated with “trapped capital,” promotes the overall financial sustainability of defined benefit pension plans, and removes disincentives of contributing more than minimum funding requirements. This is intended to improve the funded status of federally regulated defined benefit plans and, as a result, strengthen the retirement security of plan members and retirees.

Multi-employer pension plan solvency funding requirements

The proposed Regulations would lower the required solvency funding for federally regulated non-NC MEPPs from 100% to 85%. This is expected to provide more funding flexibility for plan sponsors, help ensure that retirees maintain a steady level of benefits, and align the federal MEPP solvency funding framework with other pension jurisdictions across Canada.

Costs

Solvency reserve accounts

The proposed Regulations are not expected to generate any significant costs on federally regulated defined benefit pension plan sponsors, administrators, members, or retirees.

Pension funds would incur some costs when establishing the SRA. These would include costs associated with amending plan text, creating the account within the plan, and tracking contributions and withdrawals. There will be costs to meet reporting requirements, such as providing information to plan members and retirees, and including new information related to the SRA in valuation reports. However, these costs are expected to be low. Additionally, these new costs would be limited as they are associated with activities that are already part of the general administration of the pension plan (preparing actuarial valuation reports, maintaining records of benefits, etc.).

The proposed Regulations would also not impose these costs on federally regulated pension plans as a whole. The administrative costs of starting and operating an SRA would only be incurred by those defined benefit pension plans that decide to establish an SRA. This decision rests solely with the pension plan administrator, and no pension plan would be subject to costs related to an SRA if they do not operate one.

Multi-employer pension plan solvency funding requirements

The proposed Regulations are not expected to result in any incremental costs incurred by federally regulated defined benefit plan sponsors, administrators, members, or retirees. The amendments would lower the solvency funding requirements for non-NC MEPPs to 85% and would not introduce any new reporting or administrative requirements.

Small business lens

Analysis under the small business lens concluded that the proposed Regulations would not have an impact on small businesses. Only federally regulated single-employer and multi-employer defined benefit pension plans would be allowed to establish SRAs under the proposed Regulations, and only non-NC multi-employer pension plans would have their required solvency funding ratio reduced. Currently, none of these types of plans are offered by small businesses.

One-for-one rule

Solvency reserve accounts

The one-for-one rule does not apply to the proposed Regulations as there is no incremental change in the administrative burden and no regulatory titles are repealed or introduced. The proposed Regulations would require plan administrators to provide information on their SRA in annual statements that they issue to plan members, but these are not considered to be an administrative burden under the Red Tape Reduction Act. Additionally, plan administrators are already required to submit their actuarial valuation reports to the regulator through an online portal. Additional content regarding a plan’s SRA would be expected to be included in these reports, but there is no additional requirement associated with transmitting them to the Office of the Superintendent of Financial Institutions (OSFI). Therefore, the proposed Regulations do not create an incremental increase or decrease in the administrative burden.

In addition, since an SRA would only affect a plan that decided to establish one, there would be no change in any administrative burden or compliance requirements for a plan that does not establish an SRA.

Multi-employer pension plan solvency funding requirements

The proposed Regulations are not expected to create an additional administrative burden for federally regulated non-NC MEPPs. Lowering the required solvency ratio from 100% to 85% would only change the threshold for when MEPPs would need to make special solvency payments. This would not create any additional reporting or administrative requirements.

Regulatory cooperation and alignment

The proposed Regulations are not part of a formal regulatory cooperation initiative and would not have an impact on how provincially regulated pension plans operate. Federal and provincial pension legislation applies with respect to plan members within their respective jurisdictions. In certain cases, the 2023 Agreement Amending the 2020 Agreement Respecting Multi-Jurisdictional Pension Plans simplifies the administration of these plans by using the rules of the jurisdiction with the plurality of members.

Solvency reserve accounts

Some provinces, such as Alberta, British Columbia, Quebec, and Nova Scotia, each allow the establishment and operation of SRAs as part of their pension standards legislation (called a “banker’s clause” in Quebec). While there are differences between each province’s SRA standards, the intent and overall operation of the proposed federal and provincial frameworks are broadly aligned (e.g. eligible contributions, limits on withdrawals from the SRA, required information reporting).

Multi-employer pension plan solvency funding requirements

Many provincial jurisdictions have implemented similar funding requirements for their defined benefit pension plans. British Columbia, Manitoba, Ontario, New Brunswick, and Nova Scotia all require their MEPPs to be 85% funded. Additionally, though they currently maintain 100% funding requirements, Alberta and Saskatchewan have signalled their intention to lower these thresholds to 85%.

Strategic environmental assessment

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required. The proposed Regulations would not result in any important positive or negative environmental impacts.

Gender-based analysis plus

Solvency reserve accounts

The SRA framework that would be operationalized by the proposed Regulations would benefit members and retirees of federally regulated defined benefit pension plans and would create broadly gender balanced effects. According to Statistics Canada, women accounted for approximately 41% of membership in federally regulated defined benefit private pension plans. As such, women constitute a minority of pensioners in federal defined benefit plans, though the impacts of the regulatory proposals would not vary based on the gender of plan members.

It should also be noted that current federal pension legislation does not allow sex to be taken into account when determining pension contributions or benefits.

Multi-employer pension plan solvency funding requirements

Lowering the required solvency funding ratio for federally regulated non-NC MEPPs would create broadly gender balanced effects. As outlined above, according to Statistics Canada, women accounted for approximately 41% of membership in federally regulated defined benefit plans. Two of the five non-NC MEPPs are First Nations pension plans. The proposed regulations would support the retirement security of these First Nations plan members and retirees by allowing these plans to maximize the sustainable level of benefits provided for a given level of contributions.

Implementation, compliance and enforcement, and service standards

Implementation

The proposed Regulations for SRAs would come into force on the day on which section 186 and subsection 188(1) of the Budget Implementation Act, 2022, No. 1, chapter 10 of the Statutes of Canada, 2022, comes into force, but if they are registered after that day, they come into force on the day on which they are registered.

The proposed Regulations for multi-employer pension plans would come into force on the day on which they are registered.

The Office of the Superintendent of Financial Institutions (OSFI) supervises federally regulated private pension plans and ensures that they are in compliance with the PBSA, the PBSR, and under any regulations made under the PBSA, including the proposed Regulations.

Contact

Kathleen Wrye
Director
Pensions Policy
Financial Crimes and Security Division
Department of Finance
90 Elgin Street, 13th Floor
Ottawa, Ontario
K1A 0G5
Email: re-pension@fin.gc.ca

PROPOSED REGULATORY TEXT

Notice is given that the Governor in Council proposes to make the annexed Regulations Amending the Pension Benefits Standards Regulations, 1985 (Solvency Reserve Accounts and Multi-Employer Pension Plans) under paragraphs 39(1)(h.01)^{footnote a} and (o) of the Pension Benefits Standards Act, 1985 ^{footnote b}.

Interested persons may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. They are strongly encouraged to use the online commenting feature that is available on the Canada Gazette website but if they use email, mail or any other means, the representations should cite the Canada Gazette, Part I, and the date of publication of this notice, and sent to Kathleen Wrye, Director, Pensions Policy, Financial Crimes and Security Division, Department of Finance, 90 Elgin Street, 13th Floor, Ottawa, Ontario K1A 0G5 (email: re-pension@fin.gc.ca).

Ottawa, September 11, 2024

Wendy Nixon
Assistant Clerk of the Privy Council

Regulations Amending the Pension Benefits Standards Regulations, 1985 (Solvency Reserve Accounts and Multi-Employer Pension Plans)

Amendments

1 The definitions solvency deficiency and solvency excess in subsection 2(1) of the Pension Benefits Standards Regulations, 1985 ^{footnote 3} are replaced by the following:

solvency deficiency

means

• (a) in the case of a multi-employer pension plan that is not a negotiated contribution plan, the amount by which 85% of the solvency liabilities exceed the adjusted solvency asset amount, and
• (b) in the case of any other pension plan, the amount by which the solvency liabilities exceed the adjusted solvency asset amount; (déficit de solvabilité)

solvency excess

means

• (a) in the case of a multi-employer pension plan that is not a negotiated contribution plan, the amount by which the adjusted solvency asset amount exceeds 85% of the solvency liabilities, and
• (b) in the case of any other pension plan, the amount by which the adjusted solvency asset amount exceeds the solvency liabilities; (excédent de solvabilité)

2 Subsection 9(12) of the Regulations is replaced by the following:

(12) An additional solvency deficiency resulting from an amendment to the plan is equal to the amount by which the following amount exceeds the solvency excess on the day before the effective date of the amendment:

• (a) in the case of a multi-employer pension plan that is not a negotiated contribution plan, 85% of the increase in solvency liabilities determined in accordance with subsection (13); and
• (b) in the case of any other pension plan, the increase in solvency liabilities determined in accordance with subsection (13).

3 The Regulations are amended by adding the following after section 9.2:

Solvency Reserve Accounts

9.21 (1) A plan that provides for the establishment of a solvency reserve account in the plan’s pension fund must set out

• (a) whether interest, gains and losses attributed to the account will be calculated at the rate earned by the pension fund or the rate earned by the account; and
• (b) whether the payment of pension benefits will be attributed to the account and, if so, the method of attribution.

(2) A multi-employer pension plan that provides for the establishment of a solvency reserve account in the plan’s pension fund must provide for the method to be used to allocate the amounts in the account among the employers.

9.22 An employer may pay only the following into a solvency reserve account:

• (a) solvency special payments, including those that are made under paragraph 29(6)(b) of the Act;
• (b) solvency payments required under the funding schedule of a workout agreement or under paragraph 29(6)(c) of the Act; and
• (c) any amount paid into the plan that exceeds the amount necessary to meet the standards for solvency and that is not required under subsection 29(6) or (6.1) of the Act.

9.23 (1) An employer may withdraw amounts from a solvency reserve account up to an annual limit of 20% of the lesser of

• (a) the amount by which the going concern assets exceed the product of the going concern liabilities multiplied by 1.05, based on the most recent actuarial report, and
• (b) the amount by which the solvency assets exceed the product of the solvency liabilities multiplied by 1.05, based on the most recent actuarial report.

(2) Despite subsection (1), an employer must not withdraw an amount from the account if the administrator has reason to believe that the solvency ratio of the plan, if it were determined on the day of the withdrawal, would be materially lower than the solvency ratio in the most recent actuarial report.

9.24 The administrator must transfer the amount of any reduction made under subsection 9(5), up to the balance of the solvency reserve account, out of the solvency reserve account but not out of the pension fund.

9.25 On the termination of the whole of the plan, an employer may withdraw the balance of funds remaining in a solvency reserve account — or, in the case of a multi-employer pension plan, the portion of the balance of funds remaining in the account that the employer is entitled to — after the Superintendent has approved the termination report and any obligation of the plan with respect to pension benefits, as they are determined on the date of the termination, has been satisfied.

4 (1) Clause 23(1)(q)(i)(B) of the Regulations is replaced by the following:

• (B) except in the case of a multi-employer pension plan, a description of the measures that the administrator has implemented or will implement to bring that ratio to one,
• (B.1) in the case of a multi-employer pension plan that is not a negotiated contribution plan,
  • (I) an explanation that the standards for solvency applicable to multi-employer pension plans target a solvency ratio of 0.85 rather than 1.0, and
  • (II) if that ratio is less than 0.85, a description of the measures that the administrator has implemented or will implement to bring that ratio to 0.85, and

(2) Subsection 23(1) of the Regulations is amended by adding the following after paragraph (q):

• (q.1) in the case of a plan that has a solvency reserve account,
  • (i) the total amount of funds in the account at the end of the plan year, and
  • (ii) the total amount of the payments into the account and the total amount of the withdrawals from the account in the plan year;

(3) Clause 23(1.1)(f)(i)(B) of the Regulations is replaced by the following:

• (B) except in the case of a multi-employer pension plan, a description of the measures that the administrator has implemented or will implement to bring that ratio to one,
• (B.1) in the case of a multi-employer pension plan that is not a negotiated contribution plan,
  • (I) an explanation that the standards for solvency applicable to multi-employer pension plans target a solvency ratio of 0.85 rather than 1.0, and
  • (II) if that ratio is less than 0.85, a description of the measures that the administrator has implemented or will implement to bring that ratio to 0.85, and

(4) Subsection 23(1.1) of the Regulations is amended by adding the following after paragraph (f):

• (f.1) in the case of a plan that has a solvency reserve account,
  • (i) the total amount of funds in the account at the end of the plan year, and
  • (ii) the total amount of the payments into the account and the total amount of the withdrawals from the account in the plan year;

Coming into Force

5 (1) Subject to subsection (2), these Regulations come into force on the day on which they are registered.

(2) Section 3 and subsections 4(2) and (4) come into force on the day on which subsection 188(1) of the Budget Implementation Act 2022, No. 1, chapter 10 of Statutes of Canada, 2022, comes into force, but if these Regulations are registered after that day, section 3 and subsections 4(2) and (4) come into force on the day on which these Regulations are registered.

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You have the right of access to and correction of your personal information. To seek access or correction of your personal information, contact the Access to Information and Privacy (ATIP) Office of the federal institution managing the proposed regulatory change.

You have the right to file a complaint to the Privacy Commission of Canada regarding any federal institution’s handling of your personal information.

The personal information provided is included in Personal Information Bank PSU 938 Outreach Activities. Individuals requesting access to their personal information under the Privacy Act should submit their request to the appropriate regulator with sufficient information for that federal institution to retrieve their personal information. For individuals who choose to submit comments anonymously, requests for their information may not be reasonably retrievable by the government institution.