Ontario government gives universities temporary pension relief

If a university with the agreement of unions representing the employees, can reform its pension plan, the government will allow it to amortize its solvency deficits over a period of up to 10 years.

Toronto (6 August 2010) – The Ontario government is giving universities time to balance their pension plans. The Minister of Training, Colleges, and Universities John Milloy announced yesterday the government will be amending the Ontario Pension Benefits Act to grant universities a special exemption to pension solvency requirements, giving them up to ten years to tackle their pension deficits.

Without this exemption, many universities were facing large pension payments that would have come out of operating funds, causing cutbacks in other budget areas. Ontario universities, especially the larger ones, have bean facing large pension deficits, which have been placing significant pressure on their operating budgets. time students).
 

By granting universities solvency relief, the Ontario government is alleviating this pressure and helping universities weather the effects of the recession. In return, the government is asking universities to submit a plan to the Ministry of Finance on how they plan to make their pension plans sustainable. Once they do, they will get a three-year reprieve.

If a university with the agreement of unions representing the employees, can reform its pension plan, the government will allow it to amortize its solvency deficits over a period of up to 10 years.

NUPGE

The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE

 

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