Letter of credit limits for federally regulated DB plans: Increase now in force
Further to the release of draft regulations on April 29, 2017, the Federal government has adopted regulations to amend the Pension Benefits Standards Regulations 1985 (the “PBSR”), to change the maximum amount of a letter of credit for a federally regulated defined benefit (DB) pension plan from 15% of assets to 15% of solvency liabilities.
There are no significant changes between the final amendments adopted and the proposed amendments (see the May 2017 edition of our News and Views).
The other changes included in the draft regulations, regarding locked-in accounts, were also adopted without significant modifications.
The amendments to the PBSR became effective on June 23, 2017.