Regulation - LGIC
Reform of Ontario's Funding Rules for Defined Benefit Pension Plans: Description of New Funding Rules
Regulation Number(s):
Instrument Type:
Regulation - LGIC
Bill or Act:
Pension Benefits Act
Summary of Decision:
Regulations to implement the new funding framework were filed on April 20, 2018 and came into force on May 1, 2018. In response to stakeholder feedback from the posting for consultation, certain aspects of the framework have been modified from the description originally posted. Those modifications are described in an attachment to this posting.
Further Information:
Description of Proposed Funding Rules
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Pension Benefits Act
Regulation 909
Bill 177, Stronger, Fairer Ontario Act (Budget Measures), 2017
News Release: Making Workplace Pension Plans More Sustainable
Backgrounder: Strengthening and Modernizing Workplace Pensions
Regulation 250/18 (amends Regulation 909)
Regulation 253/18 (amends O. Reg. 310/13)
Regulation 255/18 (amends O. Reg. 311/15)
Regulation 257/18 (amends O. Reg. 178/11)
Update to Funding Framework Posting
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Proposal Number:
17-MOF018
Posting Date:
December 14, 2017
Summary of Proposal:
The posted document provides a description of proposed regulations relating to the new funding framework for defined benefit pension plans announced by the government on May 19, 2017.
Included in the document are descriptions of new rules for solvency payments, including modifications to rules for letters of credit; new going concern rules, including how the provision for adverse deviations will be determined and applied; enhanced funding rules for benefit improvements; restrictions on contribution holidays; disclosure requirements; transition rules; and certain consequential amendments regarding surplus.
Draft regulations will be posted on the Regulatory Registry when available.
Other matters that are part of the new framework, including funding and governance policies, administrator discharge of liabilities on annuity purchase, and changes related to the Pension Benefits Guarantee Fund will appear in subsequent postings.
Included in the document are descriptions of new rules for solvency payments, including modifications to rules for letters of credit; new going concern rules, including how the provision for adverse deviations will be determined and applied; enhanced funding rules for benefit improvements; restrictions on contribution holidays; disclosure requirements; transition rules; and certain consequential amendments regarding surplus.
Draft regulations will be posted on the Regulatory Registry when available.
Other matters that are part of the new framework, including funding and governance policies, administrator discharge of liabilities on annuity purchase, and changes related to the Pension Benefits Guarantee Fund will appear in subsequent postings.
Contact Address:
Funding rules for Defined Benefit Pension Plans
Pension Policy Branch
Ministry of Finance
5th Floor, Frost Bldg S.
7 Queen's Park Crescent
Toronto, ON M7A 1Y7
OR
Pension.feedback@ontario.ca
Pension Policy Branch
Ministry of Finance
5th Floor, Frost Bldg S.
7 Queen's Park Crescent
Toronto, ON M7A 1Y7
OR
Pension.feedback@ontario.ca
Effective Date:
May 1, 2018
Decision:
Approved