Private sector pension plans offered relief

Justice Minister Marie-Claude Blais is offering private sector pension plans some temporary relief.

The provincial government issued a statement on Friday indicating that defined benefit plans will temporarily be able to consolidate their solvency deficiencies and amortize them over 10 years, instead of five years.

The justice minister said the move is temporary. It only applies to plans with a review date between April 1, 2010, and Jan. 1, 2012. And it can only be used once per pension plan.

"This temporary relief matches the most common of the measures being offered by other jurisdictions across Canada," Blais said in a statement.

"It will enable New Brunswick-based businesses to remain competitive while continued market turmoil is affecting pension plans."

A pension plan must also notify its members and seek the approval of the Superintendent of Pensions before it can take part in the temporary initiative.