Copyright 2010, Blake, Cassels & Graydon LLP
Originally published in Blakes Bulletin on Pension & Employee Benefits, August 2010
Further to our August 24th bulletin, Blakes will make submissions to the Ontario Ministry of Finance on a number of Phase 2 proposals. Should you wish us to include your comments or concerns, please speak to any member of our Pension & Employee Benefits Group.
Two additional pieces of information which may be of interest:
1. As noted in our bulletin, the Phase 2 legislation is going to precede the Phase 1 and 2 regulations. We have confirmed with the Ministry the expected order of the regulations, and the Phase 2 regulations will precede the Phase 1 Regulations.
Ontario Regulatory Policy provides that Ontario regulations are only effective January 1st and July 1st. Accordingly, there will likely be a significant time lapse between the Phase 1 pension legislation (Bill 236) and the regulations relating to that legislation.
2. The reference in the August 24, 2010 Technical Backgrounder to protecting surplus rights in plan splits and mergers will only apply on termination of the merged plan. The right to merge pension plans and cross-fund will not be restricted in a merged plan notwithstanding any termination surplus language.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
