Proposal to Implement Various Regulatory Amendments under the Pension Benefits Act (PBA)
Regulation - LGIC
Bill or Act:
Pension Benefits Act
Summary of Decision:
ONTARIO REGULATION 178/12
made under the
PENSION BENEFITS ACT
Made: June 20, 2012
Filed: June 26, 2012
Published on e-Laws: June 26, 2012
Printed in The Ontario Gazette: July 14, 2012
April 30, 2012
Summary of Proposal:
The changes to Regulation 909, General Regulation, would:
- Enable the proclamation of the "retired member" provisions in the PBA;
- Implement immediate vesting for plan members and increase the threshold for the small pension payout rule;
- Further clarify the surplus payment rules; and
- Reflect changes to the Income Tax Act (Canada) regarding Individual Pension Plans.
The government announced its intention to implement immediate vesting effective July 1, 2012 in the 2012 Budget.
Additional housekeeping amendments to Regulation 909 are proposed that would revoke provisions for "qualifying plans" and clarify the interest provisions in section 24.
Consequential amendments to other regulations of the PBA and to Regulation 11/01 of the Financial Services Commission of Ontario Act will also be made to reflect the changes to Regulation 909 and the PBA.
Pension Policy Branch
PBA (Various) Proposals
Ministry of Finance
5th Floor, Frost Bldg S.
7 Queen's Park Crescent
Toronto, ON M7A 1Y7
July 1, 2012