Pension reform timeline: Ontario

Amendments to the Ontario Pension Benefits Act (OPBA) effective May 18, 2010:

• changes to surplus entitlement and withdrawal rules.

Amendments to the OPBA effective on a date to be proclaimed:

• new requirements for notice of plan amendments;
• new advisory committee rules;
• enhanced disclosure requirements;
• changes to regulatory oversight and power;
• elimination of partial plan windups;
• grow-in benefits for involuntary terminations of employment on and after July 1, 2012;
• immediate vesting; and
• new asset transfer rules.

Dec. 8, 2010
Bill 120, Securing Pension Benefits Now and for the Future Act, 2010, receives Royal Assent.

Amendments to the OPBA effective Dec. 8, 2010:

• express right for payment of administrative fees and expenses from plan fund where permitted under plan terms; and
• further clarification to surplus entitlement and withdrawal rules.

Amendments to the OPBA effective on a date to be proclaimed:

• contribution holidays permitted where sufficient surplus levels and authorized by plan terms;
• solvency exemption for jointly sponsored pension plans (JSPPs);
• restrictions on amendments authorizing benefit improvements if solvency ratio falls below a prescribed level;
• payment of life income fund (LIF)-type benefits from DC plans;
• use of letters of credit to satisfy solvency payments; and
• target benefits and optional benefits.

March 29, 2011
Ontario government tables 2011 Ontario Budget.

Further pension reform amendments to OPBA:

• plan administrators must file SIP&P;
• options for dealing with benefits of unlocated members of wound-up plans; and
• funding requirements for multi-employer pension plans (MEPPs) with members outside of Ontario.

May 12, 2011
Bill 173, Better Tomorrow for Ontario Act (Budget Measures), 2011, receives Royal Assent.

Amendments to OPBA relating to previously announced pension reforms.

May 20, 2011
Regulation 177/11, Jointly Sponsored Pension Plans, is released, with new solvency funding regulations for several large JSPPs and certain other public sector plans.

Regulation 178/11, Solvency Funding Relief for Certain Public Sector Pension Plans, is released with new solvency funding regulations for certain stipulated single-employer public sector plans.

Jessica Bullock is in the pension and employee benefits group with Blake, Cassels & Graydon LLP.