Negotiated Cost Pension Plans (NCPPs)

Negotiated cost pension plans (NCPPs), plans in which funding obligations are subject to limits set out in the collective agreement and can be reduced if the plan is running a funding deficit, are allowed in the public sector. Now the government wants to change the pension laws to allow for NCPPs in the private sector and has released a consultation paper explaining how the rules would work. Deadline to comment is July 31. On a related note, the Financial and Consumer Affairs Authority also published extensive new guidelines on DB plan funding.