Regulation - LGIC
Amendment to the Benefit Plans Regulation under the Employment Standards Act, 2000 regarding Pooled Registered Pension Plans
Regulation Number(s):
Instrument Type:
Regulation - LGIC
Bill or Act:
Employment Standards Act, 2000
Summary of Decision:
Pooled registered pension plans (PRPPs) are a new type of voluntary tax-assisted individual retirement savings vehicle created pursuant to Ontario's Pooled Registered Pension Plans Act (PRPPA). PRPPs can be offered through an employment relationship or directly between an individual and a PRPP administrator outside of an employment relationship.
The ESA prohibits employers from offering or arranging for a pension plan that treats employees (or their beneficiaries, survivors or dependants) differently because of the age of the employee. "Age" is defined in the Benefit Plans regulation under the ESA (O. Reg. 286/01) to mean any age of 18 years or more and less than 65 years.
This regulation provides several exemptions from the prohibition of age-based differentiation in pension plans. This amendment provides an additional exemption for PRPPs that differentiate because of age in:
• establishing requirements for when an individual may elect to receive variable payments, where such requirements comply with the federal Pooled Registered Pension Plans Act (Canada); or
• establishing requirements for when an administrator may transfer the funds in an individual's PRPP account to a prescribed account, where such requirements comply with the federal Pooled Registered Pension Plans Act (Canada).
The ESA prohibits employers from offering or arranging for a pension plan that treats employees (or their beneficiaries, survivors or dependants) differently because of the age of the employee. "Age" is defined in the Benefit Plans regulation under the ESA (O. Reg. 286/01) to mean any age of 18 years or more and less than 65 years.
This regulation provides several exemptions from the prohibition of age-based differentiation in pension plans. This amendment provides an additional exemption for PRPPs that differentiate because of age in:
• establishing requirements for when an individual may elect to receive variable payments, where such requirements comply with the federal Pooled Registered Pension Plans Act (Canada); or
• establishing requirements for when an administrator may transfer the funds in an individual's PRPP account to a prescribed account, where such requirements comply with the federal Pooled Registered Pension Plans Act (Canada).
Further Information:
Regulation 286/01
Proposal Number:
17-MOL019
Posting Date:
October 23, 2017
Summary of Proposal:
Pooled registered pension plans (PRPPs) are a new type of voluntary tax-assisted individual retirement savings vehicle created pursuant to Ontario's Pooled Registered Pension Plans Act (PRPPA). PRPPs can be offered through an employment relationship or directly between an individual and a PRPP administrator outside of an employment relationship.
The ESA prohibits employers from offering or arranging for a pension plan that treats employees (or their beneficiaries, survivors or dependants) differently because of the age of the employee. "Age" is defined in the Benefit Plans regulation under the ESA (O. Reg. 286/01) to mean any age of 18 years or more and less than 65 years. This regulation provides several exemptions from the prohibition of age-based differentiation in pension plans. The proposed amendment would provide an additional exemption for PRPPs that differentiate because of age in:
• establishing requirements for when an individual may elect to receive variable payments, where such requirements comply with the federal Pooled Registered Pension Plans Act (Canada); or
• establishing requirements for when an administrator may transfer the funds in an individual's PRPP account to a prescribed account, where such requirements comply with the federal Pooled Registered Pension Plans Act (Canada).
The ESA prohibits employers from offering or arranging for a pension plan that treats employees (or their beneficiaries, survivors or dependants) differently because of the age of the employee. "Age" is defined in the Benefit Plans regulation under the ESA (O. Reg. 286/01) to mean any age of 18 years or more and less than 65 years. This regulation provides several exemptions from the prohibition of age-based differentiation in pension plans. The proposed amendment would provide an additional exemption for PRPPs that differentiate because of age in:
• establishing requirements for when an individual may elect to receive variable payments, where such requirements comply with the federal Pooled Registered Pension Plans Act (Canada); or
• establishing requirements for when an administrator may transfer the funds in an individual's PRPP account to a prescribed account, where such requirements comply with the federal Pooled Registered Pension Plans Act (Canada).
Contact Address:
Ministry of Labour, 400 University Avenue,
Suite 1502, Toronto, Ontario, M5G1S7
Suite 1502, Toronto, Ontario, M5G1S7
Effective Date:
January 1, 2018
Decision:
Approved