Ontario Introduces Second Stage of Pension Reform
On October 19, 2010, the Ontario government introduced the second stage of pension reform – Bill 120, The Securing Pension Benefits Now and for the Future Act, 2010.
A press release indicated that Bill 120 would include amendments aimed at:
- strengthening pension plan funding requirements;
- providing certain multi-employer pension plans and jointly sponsored pension plans with more flexible funding rules;
- clarifying the surplus sharing provisions by providing a "dispute resolution process" to allow members, retirees and plan sponsors to reach agreements on how surplus should be allocated on wind up;
- making the Pension Benefits Guarantee Fund more sustainable;
- strengthening regulatory oversight; and
- improving plan administration.
The Ontario government also expressed its continued interest in a “modest and gradual” expansion of the Canada Pension Plan and further pension innovation.
We will provide a more detailed post on these most recent legislative amendments later this week.
