Proposed amendment to Ontario Regulation 178/11 under the Pension Benefits Act - Solvency Funding Relief for Certain Public Sector Pension Plans
Regulation - LGIC
Bill or Act:
Pension Benefits Act
Summary of Decision:
ONTARIO REGULATION 12/12
made under the
PENSION BENEFITS ACT
Made: February 14, 2012
Filed: February 16, 2012
Published on e-Laws: February 17, 2012
Printed in The Ontario Gazette: March 3, 2012
December 16, 2011
Summary of Proposal:
Changes made to the regulation under the Pension Benefits Act (PBA) in May 2011 provide certain pension plans in the public sector and broader public sector with the opportunity to take advantage of temporary solvency funding relief (Ontario Regulation 178/11).
In exchange for the relief, plan sponsors are expected to adopt plan changes that would make their plans more sustainable in the long term. This process may involve negotiations with collective bargaining agents. There will be no additional funding from the province to finance pension deficits.
A first window for applications closed in March 2011. A second window for applications is now open, and closes December 30, 2011. This means that completed applications must be submitted to the Ministry of Finance no later than December 30, 2011.
The filing deadline for a pension plan with a valuation date on or after August 2, 2010 and on or before May 30, 2011 has been extended by regulation to February 29, 2012, to allow these plans to apply during the second window.
Plan sponsors will be notified whether or not they have been accepted into Stage 1 of the solvency relief regime by mid-February, 2012. Those pension plans that meet the criteria for temporary solvency funding relief will be named in Schedule 1 of Ontario Regulation 178/11.
Details of the relief measures, including eligibility criteria and additional conditions are outlined in Ontario Regulation 178/11. Examples of steps that eligible pension plans could take and the measurement of financial impacts are not part of the regulation, but are outlined in the link below.
Public Sector Pension Plan Solvency Relief
Pension Policy Branch
Ministry of Finance
5th Floor, Frost Building South
7 Queen's Park Crescent
Toronto ON M7A 1Y7
February 16, 2012