In its fall economic statement on Wednesday, the Ontario government said it plans to consult with pension industry stakeholders on the possibility of offering variable life benefits to employees in the province.
In 2021, the federal government made amendments to the federal Income Tax Act to permit Canadian jurisdictions to regulate this new pension option, noted the province, adding it plans to begin consultations this fall.
The statement also reiterated the finalization of a permanent target-benefit framework for Ontario pension plan sponsors, which is on track to take effect Jan. 1, 2025.
Read: Ontario’s target-benefit framework too prescriptive, could lead to increased plan costs: ACPM
“As pension plan sponsors begin operating under the target-benefit framework, the government will monitor the new regime to ensure that it’s working as intended and meeting the needs of all plan members,” said the statement.
The statement also provided a brief update on the Building Ontario Fund, which was announced in the 2023 fall economic statement and is designed to attract allocations from institutional investors to infrastructure projects in the province.
This month, the fund named Michael Fedchyshyn as its inaugural chief executive officer, while continuing to recruit other key executives. It’s also developing a detailed investment framework and is advancing discussions with institutional investors, project proponents and government ministries.
While the statement didn’t name specific projects, it said the fund has a “robust pipeline” of outcome‐focused projects in priority areas of energy, transportation, affordable housing, long‐term care and municipal and Indigenous community infrastructure, noting potential near‐term investment opportunities include affordable student housing, energy, and long‐term care projects.
Read: Ontario Infrastructure Bank to leverage public sector pension investments