COVID-19 solvency special payments relief

On May 29, 2020, the Department of Finance announced the coming into force of new Solvency Special Payment Relief Regulations, 2020 (Relief Regulations).

The Relief Regulations provide funding relief to plan sponsors whose pension plans have a solvency deficiency, and who are normally required to make monthly payments to fund the deficiency and/or address their obligations using letters of credit.

Under the Relief Regulations, from the coming-into-force date (May 27, 2020) until December 30, 2020, federally regulated defined benefit pension plan sponsors are not required to make solvency special payments. The Relief Regulations also provide accommodations for solvency special payments made between April 1 and May 27.

Please refer to our FAQs for more details on the Relief Regulations.