Amendments to O. Reg. 310/13: Asset Transfers under Sections 80 and 81 of the Pension Benefits Act (PBA)
Regulation - LGIC
Bill or Act:
Pension Benefits Act
Summary of Proposal:
NOTE: The proposed regulatory amendments are not related to the proposed framework for Target Benefit multi-employer pension plans.
The proposed regulation would allow recent amendments to the PBA to come into effect. The amendments to the PBA allow the existing rules that apply to single employer pension plans (SEPPs) in circumstances of a merger to apply also to multi-employer pension plans (MEPPs).
The current asset transfer rules came into effect on January 1, 2014. These rules were intended to facilitate the transfer of assets and liabilities from one pension plan to another when pension plans are affected by corporate reorganizations, including pension plan mergers. These rules set out, for example, requirements that must be met in order to obtain approval for the transfer from the pension regulator, including notice to members, retired members and other beneficiaries of the plans. Currently, these rules apply only to single employer pension plans.
The proposed regulatory amendments would allow the existing rules for asset transfers to apply also to mergers involving two or more MEPPs. By merging, some smaller MEPPs may benefit from the economies of scale that a larger plan may have, such as access to a larger pool of assets for investment purposes and the potential for reduced administrative costs.
February 2, 2016
Comments Due Date:
March 21, 2016
Pension Policy Branch
Ministry of Finance
Asset Transfers - MEPPs
5th Floor, Frost Building South
7 Queen's Park Crescent
Toronto, ON M7A 2Y7