Act
Proposed Amendment to Regulation 909 under the Pension Benefits Act - Temporary Solvency Funding Relief for Certain Pension Plans in the Broader Public Sector
Regulation Number(s):
178/11
Instrument Type:
Act
Bill or Act:
Pension Benefits Act
Summary of Decision:
ONTARIO REGULATION 178/11
made under the
PENSION BENEFITS ACT
Made: May 17, 2011
Filed: May 20, 2011
Published on e-Laws: May 25, 2011
Printed in The Ontario Gazette: June 4, 2011
made under the
PENSION BENEFITS ACT
Made: May 17, 2011
Filed: May 20, 2011
Published on e-Laws: May 25, 2011
Printed in The Ontario Gazette: June 4, 2011
Further Information:
Details of Temporary solvency Funding Relief for Certain Pension Plans in the Broader Public Sector
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Public Sector Solvency Funding Relief
Proposal Number:
11-MOF006
Posting Date:
February 10, 2011
Summary of Proposal:
In an effort to support sustainable public sector and BPS pension plans, the Minister of Finance announced in the 2010 Budget that the government is considering providing additional temporary solvency funding relief to certain single employer, DB or hybrid pension plans in the public sector and BPS, including Ontario university pension plans.
In exchange for the relief, plan sponsors would be expected to adopt plan changes that would make their plans more sustainable in the long term. This process could include negotiations with collective bargaining agents. There would be no additional funding from the province to finance pension deficits.
Details of the relief measures, including eligibility criteria and additional conditions, would be outlined in an amendment to the regulations under the PBA, which is expected to come into effect by mid-May, 2011. Examples of steps that eligible pension plans could take and the measurement of financial impacts are not part of the amendment to the regulation, but are outlined in this proposal.
In exchange for the relief, plan sponsors would be expected to adopt plan changes that would make their plans more sustainable in the long term. This process could include negotiations with collective bargaining agents. There would be no additional funding from the province to finance pension deficits.
Details of the relief measures, including eligibility criteria and additional conditions, would be outlined in an amendment to the regulations under the PBA, which is expected to come into effect by mid-May, 2011. Examples of steps that eligible pension plans could take and the measurement of financial impacts are not part of the amendment to the regulation, but are outlined in this proposal.
Contact Address:
Public Sector Pension Plan Solvency Relief
Pension Policy Branch
Ministry of Finance
5th Floor, Frost Bldg S.
7 Queen’s Park Crescent
Toronto ON M7A 1Y7
Pension Policy Branch
Ministry of Finance
5th Floor, Frost Bldg S.
7 Queen’s Park Crescent
Toronto ON M7A 1Y7
Royal Assent Date:
May 20, 2011
Decision:
Approved