Legislative and Regulatory Changes

2012| 2011 |

This page contains legislative and regulatory changes related to Ontario pension plans under the Pension Benefits Act and related legislation from 2011.

For legislative and regulatory update prior to 2011, see Legislative and Regulatory Changes 2006-10

Regulation 71/12 made under the Pension Benefits Act

O. Reg. 71/12 relating to the Abitibi pension plans was filed and came into force on May 4, 2012. The regulation amends Ontario Regulation 196/11 by redefining “Quebec Regulation” and adding various French versions of the regulation.

CAPSA update on FAQs relating to Multi-jurisdictional Pension Plans (MJPPs)

On May 3, 2012, CAPSA released an update to the Frequently-Asked Questions document related to the Agreement respecting MJPPs.

British Columbia has introduced new legislation

British Columbia has introduced legislation that will enable employers to offer a wider choice of pension plan options. Bill 38 repeals and replaces the current Pension Benefits Standards Act.

Bill 55 – An Act to Implement Budget Measures (2012) and to enact and amend various Acts

Bill 55 received first reading on March 27, 2012. Schedules 21 and 53 of the Bill contains amendments to the Financial Services Commission of Ontario Act, 1997 and to the Pension Benefits Act, respectively.

Spring 2012 Ontario Budget - Chapter IV: Tax and Pension Systems

On March 27, 2012, the Minister of Finance announced the Ontario Budget, Strong Action for Ontario. The budget contains a number of proposed changes to the Pension Benefits Act. The budget documents may be accessed at http://www.fin.gov.on.ca/en/budget/ontariobudgets/2012/

O. Reg 12/12 amending Regulation 178/11 “Temporary Solvency Funding Relief for Broader Public Sector Pension Plans”

O. Reg. 12/12 amending O. Reg 178/11 to the Pension Benefits Act relating to certain pension plans within the broader public sector was filed on February 16, 2012. The new amendment makes minor corrections to the regulation and adds seven pension plans to the schedule of specified pension plans that are eligible for temporary funding relief.

Regulation 467/11 made under the Pension Benefits Act

Effective January 1, 2012, Ontario Regulation 467/11 amends Ontario Regulation 287/11 (Family Law Matters) by temporarily adding the unproclaimed section 1.1 Pension Benefits Act (PBA) definitions of “retired member” and “former member. Once the new (Bill 236) section 1.1 PBA definitions come into force, the definitions in the Family Law Matters regulation will automatically be revoked. See also Questions and Answers related to Family Law Matters.

Regulation 466/11 made under the Pension Benefits Act

Regulation 466/11 was filed on December 16, 2011 and will come into effect on January 1, 2012. Regulation 466/11 implements changes to the Pension Benefits Guarantee Fund (PBGF). The Order in Council proclaiming subsection 38(1) of the Securing Pension Benefits Now and for the Future Act, 2010 (Bill 120) into force will also come into effect on the same date. See also Questions and Answers related to PBGF. More information is available at the Ministry of Finance website.

The Federal government introduces the Pooled Registered Pension Plans (PRPP) Act

On November 17, 2011, the federal government introduces the PRPP Act. More information can be found at the Canada Finance website.

Regulation 396/11 made under the Pension Benefits Act

O. Reg. 396/11 relating to the Ontario Municipal Employees Retirement System Pension Plan was filed and comes into force on August 23, 2011.

Regulation 336/11 made under the Pension Benefits Act

O. Reg. 336/11 relating to the Toronto Transit Commission Pension Fund Society was filed and comes into force on July 21, 2011.

Regulations 287/11 and 288/11 made under the Pension Benefits Act

On June 22, 2011, the Ontario Government proclaimed the amendments to the Pension Benefits Act (O. Reg. 287/11 and O. Reg. 288/11) and the Ontario Family Law Act that relate to the valuation and division of pension assets on breakdown of a spousal relationship. The new rules come into effect on January 1, 2012.

Regulation 196/11 made under the Pension Benefits Act

O. Reg. 196/11 relating to the Abitibi pension plans was filed and comes into force on June 3, 2011. The regulation implements certain agreements involving Ontario, Quebec and Abibow Canada Inc. relating to the funding of certain specified Ontario and Quebec pension plans listed in schedules 1 and 2 of the regulation.

Regulation 195/11 made under the Pension Benefits Act (PBA)

O. Reg. 195/11 relating to multi-jurisdictional pension plans was filed on June 3, 2011. The regulation adds a table to Regulation 909 which lists each agreement entered into under section 100 of the PBA with a designated jurisdiction. In particular, the agreement with Quebec, entitled “Agreement respecting multi-jurisdictional pension plans”, was signed in May 2011. Regulation 195/11 comes into force on July 1, 2011.

Regulation 178/11 Temporary Solvency Funding Relief for Broader Public Sector Pension Plans

O. Reg. 178/11 relating to certain pension plans within the broader public sector was filed on May 20, 2011. The regulation amends the Pension Benefits Act to provide temporary relief for specified pension plans. More information is available at the Ministry of Finance website.

The government has announced a second window for applications for temporary solvency funding relief for broader public sector pension plans. Completed applications must be submitted to the Ministry of Finance no later than December 30, 2011. More information is available at the Ministry of Finance website.

Regulation 177/11 made under the Pension Benefits Act (PBA)

O. Reg. 177/11, which makes changes to the rules for jointly sponsored pension plans and to certain filing requirements for all plans, was filed on May 20, 2011. More information is available at the Ministry of Finance website.

The changes that affect jointly sponsored pension plans are:

a new process by which a pension plan identifies itself as a jointly sponsored pension plan and new filing deadlines; and
the following public sector jointly sponsored pension plans are exempted from funding on a solvency basis but must satisfy additional requirements, including the filing of a solvency funding report with the Superintendent and the disclosure of information about the funded status of the plan to members and other beneficiaries:
- Pension plan for the Employees of the Ontario Public Service Employees Union, number 339861;
- Ontario Teachers’ Pension Plan, number 345785;
- OMERS Primary Pension Plan, number 345983;
- Healthcare of Ontario Pension Plan, number 346007;
- Colleges of Applied Arts and Technology Pension Plan, number 589895; and
- Ontario Public Service employees’ Union Pension Plan, number 1012046.

The changes that affect all pension plans are:

Changes to the requirements that determine the filing of annual solvency reports;
Changes to the information that must be included in the annual statement to members, and additional information that must be included in the annual statement to members of jointly sponsored pension plans that have a solvency deficiency below a certain limit; and
Changes to the contributions and interest that must be made to public sector plans that satisfy certain requirements.

Regulation 177/11 comes into force on June 1, 2011, although some provisions will come into force on January 1, 2012 and December 31, 2012.

Clear, Consistent Rules for Multi-jurisdictional Pension Plans

May 20, 2011 - The Government of Ontario announced that the Ontario and Quebec governments have signed the Agreement Respecting Multi-jurisdictional Pension Plans (MJPPA). The MJPPA will come into effect July 1, 2011 for those pension plans registered in Ontario or Quebec with both Ontario and Quebec members.

The MJPPA provides an efficient and transparent regulatory environment for multi-jurisdictional pension plans. It specifies the rules that apply to these plans and allows, to the extent provided for in the MJPPA, a single supervisory authority whose government has signed the MJPPA to exercise all of the supervisory and regulatory powers to which these plans are subject.

The MJPPA replaces the existing Memorandum of Reciprocal Agreement for multi-jurisdictional pension plans where the major authority (province of registration) is Ontario or Quebec and the pension plans have Ontario and Quebec plan members. To the extent described in the MJPPA, the Memorandum will continue to apply to those jurisdictions that have not yet signed the MJPPA.

Bill 120 – Proclaimed sections of the Pension Benefits Act (PBA), effective June 1, 2011

On May 17, 2011, the Order in Council proclaimed several sections of Bill 120 to be in force on June 1, 2011. These proclaimed sections are 1(2.1), 10(3) and 55(4) of the PBA which relate to Jointly Sponsored Pension Plans.

Bill 173 – Better Tomorrow for Ontario Act (Budget Measures), 2011

On May 12, 2011, Bill 173 received Royal Assent. Section 35 of the bill contains amendments to the Pension Benefits Act (PBA). The pension-related provisions that are now in effect include:

a change to section 42(1)(c) of the PBA to provide that this option is available to the member on termination of employment if the pension plan permits; and
an amendment to section 68 (wind up of a pension plan) to authorize the Superintendent to require the plan administrator to provide specified additional information and documents to specified individuals.

Other proposed changes will only come into effect upon proclamation. See Bill 173 for more information.

Spring 2011 Ontario Budget - Chapter III: Tax and Pension Systems for Ontario’s Future

On March 29, 2011, the Minister of Finance announced the Ontario Budget. The budget (Section B: Securing Our Retirement Future: Reform of the Pension and Retirement Income Systems) contains a number of proposed changes to the Pension Benefits Act. An extension of the waiver of the fees on the application to unlock pension funds from a financial institution due to financial hardship was one of the proposed changes. The changes do not come into effect until proclamation.

Regulation 86/11 made under the Pension Benefits Act (PBA)

O. Reg. 86/11 relating to Abitibi pension plans was filed on March 25, 2011. This regulation amends the PBA to allow the employer to make certain payments into the pension fund within 180 days after a report under section 14 with a valuation date of September 30, 2010 is filed.

Regulation 85/11 made under the Pension Benefits Act (PBA)

O. Reg. 85/11 amends the PBA to provide for Ontario to adopt the federal investment rules (for investment of pension fund assets) as they are amended from time to time. Regulation 85/11 comes into force on March 25, 2011.

Please note: Pension plans registered in Ontario may now use the federal investment rules passed into law on June 25, 2010. Future changes to the federal investment rules will apply to Ontario registered pension plans upon enactment by the federal government.

Regulation 84/11 made under the Pension Benefits Act (PBA)

O. Reg. 84/11 relating to broader public sector pension plans was filed on March 25, 2011. This regulation amends the PBA to allow that a report under section 14 with a valuation date on or after December 31, 2009 and on or before August 1, 2010 may be filed on or before May 31, 2011. The amendment also provides that contributions with interest owing as a result of the filing of these reports are to be paid by June 1, 2011.

Regulation 19/11 made under the Pension Benefits Act

O. Reg. 19/11 relating to Abitibi pension plans was filed on January 28, 2011.

Bill 120 - Securing Pension Benefits Now and in the Future Act, 2010

On December 8, 2010, Bill 120 received Royal Assent. This bill follows the Pension Benefits Amendment Act, 2010 which received Royal Assent on May 18, 2010. Bill 120 makes significant changes that will further modernize and strengthen the Pension Benefits Act. Some of these changes come into effect immediately while other changes will come into effect upon proclamation.

Bill 135 – Helping Ontario Families and Managing Responsibly Act, 2010

On December 8, 2010, Bill 135 received royal assent. Schedule 8 of the bill contains an amendment to the Financial Services Commission of Ontario (FSCO) Act, 1997 which allows the Superintendent to delegate to FSCO employees the exercise of powers and performance of duties that are delegated to the Superintendent in an agreement under section 100 of the Pension Benefits Act (PBA). Section 100 deals with the new multi lateral pension plan agreement.

Schedule 15 of the bill contains a proposed amendment to the PBA to repeal clause 42(1)(c), which enables a former member of a pension plan to transfer the commuted value of his or her deferred pension for the purchase of a life annuity on June 30, 2011. A related amendment to section 42 of the PBA provides that if the commuted value of the former member’s deferred pension is greater than the amount that the Income Tax Act permits to be used to purchase the former member’s life annuity, the excess amount is payable to the former member.

Legislative and Regulatory Changes 2006-10