Administrators Will Need To Revisit Governance Policies Under Ontario's Latest Pension Changes
May 19, 2017
On May 19, 2017, the Ontario government announced that it would require plan administrators to establish written governance and funding policies, regarding a new funding framework for defined benefit pension plans in the province.
This move is one of a number of proposed measures designed to protect benefit security for members of defined benefit plans once the new funding framework, which will eliminate solvency funding for plans with a funded ratio of at least 85 per cent, is in place. The other measures include increasing the monthly pension amount guaranteed by the pension benefits guarantee fund in the event of employer insolvency and requiring increased disclosure to plan members regarding the funded status of their plan.
Review the press release on the Ontario government's website and an article on the Benefits Canada website.