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In its fall economic statement, the Government of Ontario said it would take steps to make the province’s retirement income system better.
The government reiterated its plans to try to reach an agreement with the federal government and other provinces for an enhancement to the Canada Pension Plan.
“But if an agreement cannot be reached, we will move forward with a ‘made in Ontario’ solution for those Ontarians who will require more support than is currently provided by the Canada Pension Plan,” said Charles Sousa, the province’s minister of finance.
Ontario also said it will do the following:
- engage with interested parties on a target benefit framework for eligible multi-employer pension plans in the winter of 2014;
- engage with interested parties in the fall of 2013 on how pooled registered pension plans should be implemented in Ontario;
- develop regulations that would allow DC plans to pay retirement income directly to retirees;
- finalize new regulations on split pensions and asset transfers between pension plans, which, if approved, are expected to take effect in January 2014;
- look to the technical working group—established following the 2013 Budget—for advice on design, governance and transition issues in implementing an asset pooling framework for public sector pension plans in 2014;
- commit to seeing changes in electricity sector pension plans—including cost sharing, governance and other provisions—that will ensure these plans are more affordable; and
- modernize the investment rules governing Ontario pension plans, including changes to remove barriers to investments in Ontario public infrastructure projects, potentially creating a significant new source of capital to support economic growth and job creation in Ontario.
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