An FTR Now published on May 5, 2020 written by Hicks Morley’s Stephanie Kalinowski was mentioned in the May 8, 2020 Benefits and Pensions Monitor Daily News Alert. The alert summarizes the FTR Now titled “Canada Revenue Agency Announces Temporary COVID-19 Relief for Registered Pension Plans.”
In response to industry requests, the Canada Revenue Agency (CRA) announced on May 5, 2020 that the minimum 1% employer contribution rule applicable to defined contribution (DC) pension plans is temporarily suspended. In addition, the federal Department of Finance issued a comfort letter confirming that it will recommend an amendment to the Income Tax Regulations to extend the deadline for electing to purchase a leave of absence on a current-service basis. These measures are intended to temporarily assist the sponsors and administers of DC and defined benefit (DB) registered pension plans in light of the COVID-19 pandemic.