May 26, 2011
Ontario is taking another step toward modernizing pensions.
The government is providing more flexibility for the funding of jointly sponsored pension plans (JSPPs) – a kind of pension plan where risk is shared between employers and employees. Contributions required from members and employers who participate in these plans would be more stable and predictable. Plans would also be required to disclose more information to their members, who as joint sponsors have a say in how their pension plan is governed.
To ensure that plans of different sizes are treated fairly, the government is also simplifying the rules for “solvency concerns”, which determine whether a pension plan must file a valuation report on its financial state every year. Typically, plans must file valuation reports every three years.
Certain JSPPs and specified Ontario multi-employer pension plans (SOMEPPs) will be exempt from “solvency concerns” requirements until December 31, 2012, because these plans are presently not required to fund on a solvency basis. During this exemption period, a different test will be developed to determine when these plans need to file valuation reports annually in the future.
As reaffirmed in the 2011 Budget - Turning the Corner, the McGuinty government is committed to modernizing Ontario's pension system, and playing a leading role in national discussions on the retirement income system to help Ontario families.
See the pension and retirement income system reforms that the McGuinty government has undertaken.
Read the new regulation on Ontario’s e-Laws website.
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