Regulation - LGIC

Reform of Ontario's Funding Rules for Defined Benefit Pension Plans: Description of Proposed Changes to Pension Benefits Guarantee Fund (PBGF) Assessments

Regulation Number(s):
Instrument Type:
Regulation - LGIC
Bill or Act:
Pension Benefits Act
Summary of Decision:
Ontario Regulation 250/18, which will implement the changes to the PBGF assessment formula that were posted on the Regulatory Registry for consultation, came into force on May 1, 2018 and will affect assessment dates on or after January 1, 2019.
Analysis of Regulatory Impact:
Administrative costs to business are not expected to increase as a result of this regulatory proposal.
Further Information:
Click to open Pension Benefits Act
Click to open Regulation 909
Click to open  Description of Proposed Changes to Pension Benefits Guarantee Fund (PBGF) Assessments    (Download Adobe Reader)
Click to open Regulation 250/18 (amends Regulation 909)
Proposal Number:
18-MOF005
Posting Date:
January 19, 2018
Summary of Proposal:
The posted document provides details of the proposed amendments to the PBGF assessment formula in Regulation 909 under the Pension Benefits Act.

Proposed reforms to the PBGF assessment formula include an increase to the current risk-based component, the addition of a new component based on a plan's PBGF liabilities (i.e. solvency liabilities in respect of Ontario plan beneficiaries) that is structured to reduce PBGF assessment volatility and the elimination of certain other assessment components, such as the basic assessment per member, to reduce complexity.
Contact Address:
Pension Benefits Guarantee Fund Assessment Formula
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

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