A. Closure of the Ontario Retirement Pension Plan
On June 2, 2016, the Ontario government passed Bill 186 - Ontario Retirement Pension Plan Act (Strengthening Retirement Security for Ontarians), 2016, which establishes the ORPP.
On June 20, 2016, the federal government and all provinces except for Quebec and Manitoba reached an agreement in principle to enhance the Canada Pension Plan. Following the agreement-in-principle, the Ontario government decided to freeze all spending and existing project work on the ORPP and conclude operations of the ORPP Administration Corporation. The wind-up of the ORPP AC was substantially completed on August 12, 2016. The dissolution of the ORPP AC will occur with the repeal of the ORPP Act, which is expected in the fall of 2016.
B. Multi-jurisdictional pension plans agreement
Effective July 1, 2016, the 2016 Agreement Respecting Multi-Jurisdictional Pension Plans came into force. The MJPPA has been adopted by the governments of Ontario, British Columbia, Nova Scotia, Quebec and Saskatchewan. TheMJPPA replaces the Agreement Respecting Multi-Jurisdictional Pension Plans effective July 1, 2016 between Ontario and Quebec.
C. Asset transfer rules for MEPPs
Effective July 1, 2016, O.Reg.239/16 made under the Pension Benefits Act, relating to asset transfers between multi-employer pension plans, came into force. The regulation permits the existing asset transfer rules in section 81 of the PBA to apply to MEPPs.
D. Solvency funding relief
Effective July 1, 2016, O.Reg.161/16 amending the Regulation 909 under the PBA came into force, providing an extension of the 2009 and 2012 temporary solvency relief measures for private sector pension plans.
Amendments to O.Reg.178/11 regarding solvency funding relief for certain public sector pension plans were made by O.Reg.344/15 effective November 26, 2015 and O.Reg.313/15 effective January 1, 2016.
E. Consultations
On July 26, 2016, the Ontario Government released a consultation paper regarding the review of Ontario’s solvency funding framework for defined benefit pension plans. The Ontario Ministry of Finance accepted comments on the consultation paper until Sept. 30.
On August 25, 2016, amendments were proposed to Regulation 909 under the PBA regarding pension advisory committees. Based on feedback received during the consultation period, on August 22, 2016, the Ontario government proposed revisions to the proposed amendments. The Ontario Ministry of Finance accepted comments on the proposed amendments until Sept. 12.
On July 29, 2016, the Ontario Government proposed regulatory amendments under the PBA to allow for temporary reductions of the minimum required level of solvency funding of pension plans on a temporary basis. The Ontario Ministry of Finance accepted comments on the proposed amendments until Sept. 9.
Heather Di Dio is a partner with Dentons Canada LLP