A brief update on the movement on the pension reform front.
CPP
Negotiating changes to the Canada Pension Plan isn’t going to be easy. Changes made to the CPP require the agreement of two-thirds of the provinces, representing two-thirds of Canada’s population. Currently, Alberta Finance Minister Ted Morton is not onside with such changes. Alberta is home to 10.3% of Canada’s population, based on the latest census statistics.
Finance Minister Jim Flaherty admitted to The Globe and Mail recently that reforming the pension system is going to be difficult, saying that he “isn’t sure Ottawa has the support of enough provinces to move ahead with changes to CPP.” While it’s common knowledge that Alberta is opposed to the CPP changes, he said he isn’t sure of the position of Quebec. Quebec residents make up 23.5% of Canada’s population. The next largest province by population is British Columbia with 13.2%; that province’s government has expressed its support for CPP changes.
Related Content
• Canadians support increase in CPP
Ontario
Last week the Ontario government introduced Bill 120, the Securing Pensions Benefits Now and for the Future Act. This act amends the Pensions and Benefits Act and if passed will do the following:
• Strengthen Ontario’s pension funding rules by requiring more sustainable funding of promised benefits and stronger funding standards for benefit improvements;
• Provide a framework to permit more flexible funding rules for certain multi-employer pension plans and jointly sponsored pension plans;
• Clarify pension surplus rules and provide a dispute resolution process to allow members, retirees and sponsors to reach agreements on how surplus should be allocated on wind up;
• Provide a more sustainable Pension Benefits Guarantee Fund by implementing a strategy to build reserves, increase revenues, limit current exposure and reduce risk to taxpayers in the future; and
• Further strengthen regulatory oversight and improve plan administration.
Related Content
• Pensions and Benefits Law – Osler forum