Modification to the funding framework for defined benefit pension plans in OntarioLinkedIn
There, in black and white
NB Bulletin Vol. 20, N. 9, May 2017
On May 19, 2017, the Ontario government released the broad outline of its reform on the funding of defined benefit pension plans. Several measures were inspired by the changes made in 2016 to the Quebec defined benefit pension plans.
As the centerpiece of this announcement, the Ontario government will be eliminating the solvency funding requirements, but only with regard to plans having a solvency ratio above 85%.
This announcement was the missing piece in the pension plan reform undertaken since the election of Kathleen Wynne back in 2013. The ORPP implementation project followed by the rallying for the CPP enhancement introduced by the Trudeau government have constituted the basis of this reform.
In Quebec, the public consultation led by the government regarding the QPP is about to be completed. The imminent announcement as to the decision regarding its enhancement should be the final step in the reform which began in 2013.
Normandin Beaudry’s consultants will continue to closely monitor the progress of legislative changes concerning pension plans and will keep you informed of future developments.
Please feel free to contact us for additional information.
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Montreal, Quebec, H3B 1S6