TORONTO - Finance Minister Jim Flaherty says Ottawa is considering measures to help federally regulated companies deal with their funding obligations for pension plans that have taken a severe beating during the stock market downturn.
After a speech today in Toronto, the finance minister said the government helped companies deal with their pension payment requirements in the past and will review the issue again.
Canadian companies are lobbying the Conservative government for relief from their pension funding obligations as market turmoil drives down the value of their pension fund assets.
Analysts say the pension overhang is the worst they have seen in more than 35 years.
Since the beginning of 2008, Canada's benchmark S&P/TSX composite index has fallen about 37 per cent and the more than 800 point surge over the past two days will do little to offer much relief.
At the beginning of the year, federally incorporated organizations such as Crown corporations thought that their pension funding problems were improving, says Malcolm Hamilton, a consultant with human resources consulting firm Mercer (Canada) Ltd.
Now 10 months into the year, the problem looms as large as ever for them, he said.
Hamilton says none of these groups are looking to be bailed out.
Rather, they are seeking to extend the time over which the deficiency in their plans must be addressed, he said.
Federally regulated organizations include banks, telecommunications companies and federal Crown corporations.
