Update: New Brunswick pension plan funding rules
On October 22, 2020, New Brunswick amended its defined benefit (DB) funding framework in line with the changes proposed earlier this year and discussed in the July 2020 News & Views. The only difference between the proposed changes and those that were ultimately adopted is that solvency exempt pension plans (i.e., municipal and university pension plans that have made an election to be solvency exempt in accordance with regulations) will not be subject to the new DB funding framework.
All of the changes are now in effect, except for the requirement for pension plans to include provisions respecting the funding, by employers, of the normal cost, and of any going concern unfunded liability or solvency deficiency. This requirement comes into force on December 31, 2020.
For a more detailed summary of the changes, please see the July 2020 News & Views article.