VICTORIA, B.C. – The Province of British Columbia has announced that it will be introducing changes to the funding framework for defined benefit pension plans.
According to the Government, the changes to the funding framework will give employers the payment predictability needed to support the long-term sustainability of pensions that British Columbians depend on.
These changes will also help address long-standing funding pressures, such as low-interest rates and volatile investment returns, that can make it difficult for businesses to sustain payments towards defined benefit pension plans.
The Province launched a review of solvency funding requirements in October 2018. The new funding rules were shaped by recommendations developed through stakeholder consultation with plan members, retirees, unions, employers and other pension-industry stakeholders.
Members’ pensions will not be affected by the reforms and all changes will come into effect on December 31, 2019.
For more information, you can visit the Province’s website.