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Solvency Special Payments Relief Regulations, 2020 (SOR/2020-113)

Regulations are current to 2024-11-26

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Solvency Special Payments Relief Regulations, 2020

SOR/2020-113

PENSION BENEFITS STANDARDS ACT, 1985

Registration 2020-05-27

Solvency Special Payments Relief Regulations, 2020

P.C. 2020-393 2020-05-27

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to paragraphs 39(1)(e) and (e.1)Footnote a, subparagraph 39(1)(e.2)(v)Footnote a and paragraphs 39(1)(h.2)Footnote b and (o) of the Pension Benefits Standards Act, 1985Footnote c, makes the annexed Solvency Special Payments Relief Regulations, 2020.

Definitions

Marginal note:Definitions

1 The following definitions apply in these Regulations.

Act

Act means the Pension Benefits Standards Act, 1985. (Loi)

solvency special payment

solvency special payment means a special payment required under paragraph 9(4)(c) or (d) of the Pension Benefits Standards Regulations, 1985. (paiement spécial de solvabilité)

Payment Relief

Marginal note:Reduction of annual payments

2 The solvency special payments that are required for a plan year are to be reduced by the total amount of all instalments of those payments in respect of that plan year that, under paragraph 9(14)(b) of the Pension Benefits Standards Regulations, 1985,

  • (a) became due during the period beginning on April 1, 2020 and ending on the day before the day on which these Regulations come into force, unless the plan year ended more than 30 days before the day on which these Regulations come into force; or

  • (b) but for subsection 3(1), would have become due during the period beginning on the day on which these Regulations come into force and ending on December 30, 2020.

Marginal note:Instalments not required

  • 3 (1) Despite paragraph 9(14)(b) of the Pension Benefits Standards Regulations, 1985, no solvency special payment instalments are required to be paid during the period beginning on the day on which these Regulations come into force and ending on December 30, 2020.

  • Marginal note:Deduction from other payments

    (2) The amount of any solvency special payment instalment that becomes due after March 31, 2020 and is paid no later than the day on which these Regulations come into force may be deducted from the total amount of all instalments that become due to the same plan under paragraphs 9(14)(a) and (b) of the Pension Benefits Standards Regulations, 1985 during the period beginning on the day on which these Regulations come into force and ending on December 30, 2020, and the corresponding contributions and going concern special payments required under paragraphs 9(4)(a) and (b) of the Pension Benefits Standards Regulations, 1985 are to be reduced accordingly.

  • Marginal note:No interest

    (3) Despite paragraph 10(2)(b) of the Pension Benefits Standards Regulations, 1985, no interest is payable in respect of a special solvency payment instalment that became due after March 31, 2020 but before the day on which these Regulations come into force.

Marginal note:No reduction for subsequent plan year

4 Subsection 9(6) of the Pension Benefits Standards Regulations, 1985 does not apply in respect of any portion of an additional payment that, but for these Regulations, would have been payable as a solvency special payment.

Marginal note:Letter of credit — reduction of face value

  • 5 (1) The face value of a letter of credit that was provided or transferred before the day on which these Regulations come into force may, in addition to any reduction permitted under subsections 9.1(2) to (4) of the Pension Benefits Standards Regulations, 1985, be reduced by an amount not exceeding the total amount of all instalments referred to in paragraphs 2(a) and (b) of these Regulations that were to be replaced by the letter of credit.

  • Marginal note:Deeming

    (2) If the face value of a letter of credit is reduced in accordance with subsection (1), it is deemed to have been reduced in accordance with the Pension Benefits Standards Regulations, 1985 and the non-renewal of that letter of credit for its full face value does not constitute a default for the purpose of section 9.1 of those Regulations.

Marginal note:Void amendment — solvency ratio

6 For the period beginning on the day on which these Regulations come into force and ending on November 30, 2020, the prescribed solvency ratio level for the purposes of paragraphs 10.1(2)(c) and (d) of the Act is 1.05.

Marginal note:Provision of information

7 The following information is prescribed, in addition to the information referred to in subsections 23(1) and (1.1) of the Pension Benefits Standards Regulations, 1985, for the purposes of subparagraphs 28(1)(b)(iv) and (b.1)(ii) of the Act in respect of any plan year for which a solvency special payment is reduced under section 2 of these Regulations:

  • (a) the amount of the reduced solvency special payments for the plan year; and

  • (b) the amount of the solvency special payments that would have been required for the plan year, but for these Regulations.

Coming into Force

Marginal note:Registration

8 These Regulations come into force on the day on which they are registered.

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