On September 14, 2023, Newfoundland and Labrador’s Regulation 72/23 was filed under the authority of the Pension Benefits Act, 1997, introducing amendments to the existing Pension Benefits Act Regulations with a specific focus on public sector pension plans, particularly the Memorial University Pension Plan. These amendments primarily address exemptions concerning employer contributions and unfunded liabilities related to indexed benefits. The regulation was formally enacted by the Lieutenant-Governor in Council, with the decision dated September 11, 2023.

One key change is found in subsection 41(4), which has been amended to exempt the Memorial University Pension Plan from certain financial obligations. Specifically, the plan is granted a time-limited exemption from April 1, 2022, to December 31, 2023, relieving the employer from paying amounts specified under paragraph 12(3)(d) during this period. Additionally, the regulation extends the time frame for liquidating unfunded liabilities related to indexed benefits from 15 years to 40 years. This extension applies to liabilities accrued due to indexing benefits associated with past service, as outlined in section 24.1 of the Memorial University Pensions Act.

The amendments also stipulate conditions in the event of plan termination. If the Memorial University Pension Plan is terminated, the employer will still be required to pay an amount that would have been required under paragraph 12(3)(d) had the exemptions not been in place, ensuring the pension fund retains some level of financial integrity even upon termination. Furthermore, the regulation repeals subsections 41(4.1), (4.2), (4.3), and (4.4) of the existing regulations, signifying a restructuring aimed at streamlining the rules governing public sector pension plans in the province.

Importantly, these amendments are considered to have come into force retroactively on April 1, 2022, allowing adjustments to apply to past periods and ensuring that financial obligations and exemptions align with previous management practices within the Memorial University Pension Plan.

Regulation 72/23 represents a response to the financial dynamics affecting the Memorial University Pension Plan. By offering temporary exemptions from certain employer contributions and extending the timeline for liquidating unfunded liabilities, the regulation aims to provide financial relief while promoting the long-term sustainability of the pension plan. These amendments reflect ongoing efforts to manage pension obligations effectively within the changing landscape of pension benefits in the province, and the repeal of previous provisions suggests a move toward more coherent and manageable pension regulations, potentially enhancing the financial health of public sector pension schemes.

Newfoundland and Labrador (72/23) September 15, 2023