As part of its ongoing pension reform initiative, on April 25,
2014, the Ontario government announced amendments to the general
regulation under the Pension Benefits Act (PBA) in
relation to the following:
The government invited interested stakeholders to comment on the
first three proposed amendments by June 16, 2014 and on the
variable benefit proposal by June 10, 2014.
Disclosure of Environmental, Social and Governance Factors in
In the 2011 Budget, the Ontario government announced
its intention to require plans to file SIP&Ps with the
Financial Services Commission of Ontario (FSCO) and disclose in
their annual statements whether or not their SIP&Ps address
environmental, social or governance factors.
If enacted, the proposed amendment would require plan
administrators to file their SIP&Ps with FSCO within 90 days
after the regulation comes into force, which is currently
anticipated to be on January 1, 2015.
Statements for Former and Retired Members
Bill 236 added the new subsection 27(2) to the
PBA (not in force yet), which requires plan administrators to
provide annual statements to former members and retired
The proposed regulatory amendments set out the prescribed
information for these statements, which is similar to the
information provided in the annual statements to active
With respect to the frequency of statements, the government
proposed that administrators provide statements to former and
retired members at least once every 3 years or within 6 months of
the filing date of the last valuation report, whichever occurs
sooner. Plan administrators would be required to provide the first
of these statements within 12 months following the proclamation of
subsection 27(2) of the PBA.
Updated Filing Requirements to Reflect Changes to
In the 2011 and 2013 Budgets, the government announced that it
would update regulatory requirements to reflect appropriate changes
to standards issued by professional bodies.
Further to these announcements, the proposed amendment would
amend s. 76 of the regulations under the PBA to reflect updates to
the Chartered Professional Accountant (CPA) Canada Handbook. The
updates to the CPA include, among others, changing the definition
of "related party", replacing references to "market
value" with "fair value" when reporting assets and
liabilities, and expanding the list of the disclosed types of
investment assets and liabilities.
Direct Payments from Pension Plans that Provide DC
Presently, an individual with retirement savings in a DC plan
must transfer the accumulated funds to a financial institution in
order to receive retirement income. In 2010, Bill 120 amended the PBA (not yet in force) to
allow pension plans with a DC component to provide the additional
option of receiving income directly from the plan.
The proposed amendment to the regulations would allow DC plans
to pay retirement income directly to retired members, as authorized
by the Income Tax Act (Canada). Eligible participants
would be able to establish a variable benefit account held by the
plan, and periodically receive income directly from this account.
The amounts payable from this account would mirror the amounts
payable from a Life Income Fund under the PBA.
Pension reform continues to be on the Ontario government's
agenda. With this week's upcoming provincial budget we
anticipate further pension changes from Ontario.
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).