The government of Ontario government released a draft proposed
amendment to the Pension Benefits Act (Ontario) regulations
(Regulations) on February 5, 2014 that would modify the application
of the 10% quantitative limit for plans registered in
Currently, the investments of assets of pension plans registered
in Ontario must comply with the investment rules set out in
Schedule III to the regulations under the Pension Benefits
Standards Act(Canada) (Federal Pension Investment Rules), which
impose a 10% limit on the book value of pension plan assets which
may be invested in the securities of any one person or related
persons. The proposed amendment to section 78 of the
Regulations would provide an exemption from the 10% quantitative
limit for investments in securities issued by and fully guaranteed
by the government of the United States.
The proposed amendment is part of an effort to
"modernize" the investment rules applicable to
Ontario-registered pension plans, as previously announced in the 2013 Economic Outlook and Fiscal Review (2013
Fall Economic Statement) and is directed at providing
greater flexibility to plan administrators to adopt investment
strategies which allow a better matching of plan investments with
As noted, the amendment would introduce an exception from the
federal pension investment rules applicable only to
Ontario-registered plans, and is thus is another step away from the
utopian goal of uniformity in pension standards legislation in
Canada. Nonetheless, the proposed amendment would be welcomed
by many plan sponsors of Ontario-registered plans that wish to
invest in secure long-bonds to better match plan liabilities.
We support the initiative, and would hope the government of Ontario
sees fit to expand the exemption to include securities issued and
guaranteed by an agency of the US government. We also hope
the Federal Pension Investment Rules will be amended in a like
fashion so the exemption will become uniform across those
jurisdictions that adopt the Federal Pension Investment Rules.
In the 2013 Fall Economic Statement, the government of Ontario
also announced plans to amend the Regulations to allow plan
administrators to "further invest in Ontario infrastructure by
exempting plans' investments in certain Ontario public
infrastructure projects from the rule limiting ownership in a
single corporation to 30 per cent of voting shares".
This initiative was not included in the draft amendment released on
February 5, 2014, suggesting that further draft amendments will
The amendment, if passed, will not affect the application of the
10% limit for plans registered outside of Ontario. No
effective date was provided with the proposed amendment, but as it
is non-controversial we would anticipate that it will be adopted in
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.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Unfortunately, reasonable accommodation for employees in the workplace continues to be the source of significant litigation and even today we continue to see outrageous examples of employers behaving badly.
We are now beginning to see reported cases involving charges and subsequent fines laid against employers for failing to provide information, instruction and supervision to protect a worker from workplace violence.
On October 13, 2016, the Supreme Court of Canada denied leave to appeal an Ontario Court of Appeal decision which ordered an employer to pay a former employee 37 months of salary and benefits following termination.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).