There are new temporary relief measures for employers that sponsor deferred salary leave plans (DSLPs) or registered pension plans (RPPs) for their employees—relief measures intended to help employers manage and maintain employee benefit obligations throughout the coronavirus (COVID-19) pandemic.
The relief announced by the Department of Finance is also intended to allow employees who participate in DSLPs to suspend or defer their scheduled leave for a limited time without putting their plans at risk. Notably, this DSLP relief formalizes previously announced administrative relief from the Canada Revenue Agency for the period while the Department of Finance completed its review of the DSLP rules.
The DSLP relief would introduce temporary “stop-the-clock measures” for the period 15 March 2020 to 30 April 2021 so that an employee's DSLP does not need to be terminated if the employee suspends a leave of absence to return to work or the employees choose to delay their paid leave of absence.
The RPP relief would:
Read a July 2020 report prepared by the KPMG member firm in Canada
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