Proposal
Proposed Amendment to Regulation 909 under the Pension Benefits Act - Direct Payments from Pension Plans which provide Defined Contribution Benefits
Regulation Number(s):
N/A
Instrument Type:
Proposal
Bill or Act:
Pension Benefits Act
Summary of Proposal:
The government announced in the 2013 Economic Outlook and Fiscal Review that it would develop regulations to allow DC plans to pay retirement income directly to retirees.
Currently, an individual with retirement savings in a DC plan must transfer their money to a financial institution in order to receive retirement income. Unproclaimed amendments to the Pension Benefits Act would allow pension plans with a DC component to provide the additional option of receiving income directly from the plan. Eligible participants would be able to establish a variable benefit account. The amounts that would be payable from this account would be the same as from a Life Income Fund under the PBA.
Currently, an individual with retirement savings in a DC plan must transfer their money to a financial institution in order to receive retirement income. Unproclaimed amendments to the Pension Benefits Act would allow pension plans with a DC component to provide the additional option of receiving income directly from the plan. Eligible participants would be able to establish a variable benefit account. The amounts that would be payable from this account would be the same as from a Life Income Fund under the PBA.
Further Information:
Description of Proposed Regulation
Proposal Number:
14-MOF005
Posting Date:
April 25, 2014
Comments Due Date:
June 10, 2014
Contact Address:
Pension Policy Branch
Ministry of Finance
5th Floor, Frost Building South
7 Queen's Park Crescent
Toronto ON M7A 1Y7
Ministry of Finance
5th Floor, Frost Building South
7 Queen's Park Crescent
Toronto ON M7A 1Y7