Multi-Employer Benefit Plan Council of Canada
June 30, 2017 – TORONTO – The Multi-Employer Benefit Plan Council of Canada (MEBCO) is the expert voice of multi-employer plan interests in Canada. MEBCO welcomes yesterday’s announcement by the province of Ontario that there will be permanent relief from solvency funding for SOMEPPs. This has been a goal MEBCO has advocated for on behalf of our members for several years.
However, MEBCO remains concerned about the introduction and uncertainty regarding a provision for adverse deviation (PfAD) requirement because it can have unintended consequences such as intergenerational inequity. MEBCO remains committed to working with the Ministry of Finance to develop funding, and more specifically reserve requirements, that are appropriate for Ontario MEPPs. Accordingly, MEBCO will take all available opportunities to make submissions on these issues that are of critical importance for all members and beneficiaries of these plans.
In yesterday’s announcement, the government intends to introduce legislation in the fall and regulation in 2018 to implement these changes and will be consulting on the details of the new framework, including the design of the reserve and how plans transition to the new requirements. As an interim step, the government is extending the temporary solvency funding exemption currently in place for SOMEPPs by one year to August 2018.
For more information, please contact:
Michael Mazzuca
MEBCO Director
mmazzuca@kmlaw.ca
The expert voice of multi-employer benefit interests in Canada.
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