Is there a Canadian equivalent to the Pension Benefit Guarantee Corporation (PBGC)?
Only the Canadian province of Ontario has a fund that guarantees payment of certain defined benefit pensions in Ontario, subject to prescribed limitations. Called the “Pension Benefit Guarantee Fund” (PBGF), it is a program paid for by employers with defined benefit pension plans through an annual assessment based on the number of Ontario plan members and the plans financial situation. In situations where an employer is insolvent and there is an underfunding in the plan on its wind-up, the PBGF will top up the benefits received under the plan by the plans Ontario members, within prescribed limits. If money is paid out of the PBGF, the Ontario pension regulator is given a lien and charge over the assets of the employer in an amount equal to that paid out of the PBGF plus interest.
