Draft Regulatory Amendments to facilitate Single Employer Pension Plan mergers with Jointly Sponsored Pension Plans.
Ontario Regulation 311/15
Regulation - LGIC
Bill or Act:
Pension Benefits Act
Summary of Proposal:
The government plans to enact changes to better facilitate mergers for those broader public sector employers who would like to merge their single employer pension plans with an existing jointly sponsored pension plan.
The proposed regulatory amendments would expand the framework to:
• Allow a named JSPP to use an alternative method of calculating commuted values for the purposes of a merger.
• Provide clarity for a scenario where a single employer pension plan has insufficient assets to satisfy the amount of assets needed to be transferred, by requiring that the resulting deficiency (or shortfall) must be paid by the employer sponsor of the single employer pension plan on or after the effective date of the transfer.
June 27, 2017
Comments Due Date:
July 10, 2017
BPS Pensions Branch
Ministry of Finance
1st Floor, Frost Building South
7 Queen's Park Crescent East