On March 27, 2012, the Ontario government introduced Bill 55, Strong Action for Ontario Act (Budget Measures), 2012, for first reading. Schedule 53 of Bill 55 sets out a number of amendments to the Ontario Pension Benefits Act (PBA) which relate to previous amendments that have not yet come into force, including amendments:
- clarifying entitlement of retired members receiving joint and survivor pensions where their spouses pre-decease them;
- adding a transition provision requiring survivor consent to any lump sum settlement of small survivor benefits where the first instalment of the deceased retired member's pension is due before the coming into force date;
- specifying that the new letter of credit provisions do not apply to jointly sponsored pension plans, as well as multi-employer pension plans;
- repealing provisions that currently enable the Superintendent of Financial Services to consent to the commutation or surrender of certain retirement savings arrangements in circumstances of financial hardship;
- allowing the Superintendent to require plan administrators to provide additional information to persons entitled to notice upon the wind-up of a plan;
- clarifying requirements for asset transfers between defined contribution plans; and
- extending the time period (to June 30, 2013) permitting the government to make retroactive regulations in connection with defined benefit plan funding.
Ian McSweeney practises exclusively in the field of pensions and employee benefits and advises clients on pension plans, supplemental retirement arrangements, deferred profit sharing plans and other employee and executive compensation programs.
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.
