Limited Liability Plans (LLP) are defined benefit pension plan where the funding obligations are limited by a collective bargaining agreement or contract and where accrued and/or future benefits can be reduced if there is a funding deficit in the LLP. However, plans which are specified in Table 1 of The Pension Benefits Regulations, 1993 are not subject to the rules for limited liability plans. Rather, they Regulations prescribe different rules for those plans.
Effective August 25, 2017, the Regulations were amended to establish a new funding and regulatory regime for LLPs (“LLP Regime”).
In general, the LLP Regime is as follows:
For more information about limited liability plans read the Limited Liability Plan Guide.