TORONTO, Sept. 21, 2020 /CNW/ - Ontario is providing employers with the option to defer contributions to certain defined benefit pension plans to help with their businesses' cash flow during COVID-19, while providing safeguards for funding member benefits.
Eligible private sector employers will be able to defer up to six months of pension contributions from October 1, 2020 to March 31, 2021. All deferred contributions must be paid with interest and in accordance with a schedule by March 31, 2022.
There will be restrictions on employers that choose to defer contributions to help ensure that funds made available from the contribution deferral are used to maintain business operations. The restrictions would no longer apply after all deferred contributions are made.
These changes will help support the stability and sustainability of employers in Ontario, while continuing to make pensioners' retirement funds a priority. As a result, FSRA is updating its Pension Sector Emergency Management Response Guidance.The updated Guidance sets forth the process by which FSRA will administer the temporary contribution deferral framework established by the Regulation.
Sponsors of defined benefit pension plans will also have 120 days, instead of 60 days, to make a "catch-up" contribution if a valuation report is filed on or before April 1, 2021.
The Financial Services Regulatory Authority of Ontario (FSRA) is continuing to work with those we regulate to ensure financial safety, fairness and choice for consumers and members. Learn more at: www.fsrao.ca.
SOURCE Financial Services Regulatory Authority of Ontario
For Media Inquiries: Malon Edwards, Senior Communications Officer, Corporate Communications, Financial Services Regulatory Authority of Ontario, C: 647-296-5479, Email: [email protected]
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