Quebec applies pension relief measures, extends credit on employer contributions to health services fund
Quebec is applying new pension relief measures and is also extending the credit on employer contributions to the health services fund.
The pension relief measures, which the federal government announced in early July, will allow registered pension plans to borrow money and extend the deadline to retroactively credit pensionable service under a defined benefit plan.
In particular, the measures respond to potential cash flow difficulties faced by registered pension plans because of the coronavirus pandemic, ensuring it won’t be mandatory to terminate a deferred salary leave plan if an employee suspends their leave to return to work or if an employee decides to defer their paid leave.
Read: Feds announce new temporary relief measures for pension plan sponsors
The 12-week extension of the credit on employer contributions to the health services fund will be in force for the entire duration of the Canada Emergency Wage Subsidy program, which now extends until Nov. 21, 2020.
“The labour market is gradually reviving, but we must continue to support businesses to keep as many people as possible at work,” said Minister of Finance Eric Girard, in a press release. “We are continuing to closely monitor the situation and will adjust our initiatives to respond as best we can to the needs of Quebecers and businesses so that the Quebec economy gets back up to speed as quickly as possible.”
Read: Feds introduce 75% wage subsidy to help employers keep staff during coronavirus