Released on June 27, 2013
The Government of Saskatchewan has amended the funding rules under The Pension Benefits Regulations, 1993 for most public sector defined benefit pension plans so that contribution levels are less erratic, while ensuring that accrued pensions are adequately funded.
“We've reworked the funding rules to find a fair and balanced approach to this complex situation,” Minister responsible for the Financial and Consumer Affairs Authority Gordon Wyant said. “These rules will result in less erratic contribution levels, while protecting accrued pensions.”
The new rules, which are overseen by the Financial and Consumer Affairs Authority (FCAA), remove the requirement to fund a plan’s solvency deficiency while decreasing the period of time by which a going concern unfunded liability is required to be amortized from 15 to ten years.
There are 19 public sector defined benefit plans with 110,000 plan members registered under The Pension Benefits Act, 1992. Public sector plans include plans for employees of provincial government agencies, school boards, health care providers, universities and municipalities. The amended funding rules do not apply to the City of Regina's pension plan. The government is waiting for the conclusion of negotiations respecting plan amendments before considering application of these rules to the pension plan.
A solvency valuation measures whether there are sufficient assets to pay accrued benefits to members, based on current financial market conditions. A going concern valuation measures whether there are sufficient assets to pay accrued benefits to members, based on longer-term financial assumptions.
In addition to the funding rules, the amendments also include changes to filing fees, and other minor amendments.
The new rules came into force on June 26, 2013.
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For more information, contact:
Daniela Machuca
Financial and Consumer Affairs Authority
Regina
Phone: 306-798-4160
Email: daniela.machuca@gov.sk.ca