Regulation 322/09 made under the Pension Benefits Act

O. Reg. 322/09 sets out further changes relating to the solvency funding relief provisions of Regulation 909 made under the Pension Benefits Act. Sections 1 and 3 of the regulation come into force on the date of filing. All other sections of the regulation are deemed to come into force on September 30, 2008. Ontario Regulation 322/09 was filed on August 25, 2009.

Regulation 321/09 made under the Pension Benefits Act

O. Reg. 321/09 relating to General Motors pension plans was filed on August 25, 2009.

Regulation 239/09 made under the Pension Benefits Act

O. Reg. 239/09 made under the Pension Benefits Act was filed on June 19, 2009.  The Regulation included a number of changes to locked-in accounts, solvency funding and related issues, including:

• Introduction of Temporary Solvency Funding Relief Measures applicable to the first actuarial valuation filed on or after September 30, 2008.

• Revised Standards for the use in solvency valuations with an effective date on and after December 12, 2008.

• Changes related to the payment of commuted values.

• Unlocking of up to 50% of a NEW LIF starting January 1, 2010.

• Changes to the rules governing locked-in accounts.

• Consolidation of the rules governing locked-in retirement accounts (LIRAs) under a new Schedule 3.

• Changes to the rules applicable to Contribution Holidays for plan fiscal year ends between June 30, 2010 and December 31, 2012.  

Bill 162, An Act respecting the budget measures and other matters

Bill 162 contains three schedules relating to pension plans.

Schedule 24 to the Bill amends the Ontario Pension Benefits Act to:

• Clarify and expand provisions with respect to loans and grants to the Pension Benefits Guarantee Fund (PBGF).

• Provide temporary authority to make regulations with retroactive effect to September 30, 2008, relating to the funding of defined benefit pension plans. The authority is required to implement the solvency funding relief measures announced in the 2009 Budget.

In addition:

• Schedule 22 to the Bill amends the Ontario Municipal Employees Retirement System Act, 2006 to allow the Administration Corporation to establish subsidiaries and, with the consent of the Sponsors Corporation, to enter into agreements to provide certain pension administration and investment services to administrators of other pension plans and other specified bodies and to invest the assets of the pension fund in an authorized subsidiary.

• Schedule 29 to the Bill amends the Teachers’ Pension Act to allow the Ontario Teachers’ Pension Plan Board, with the consent of the Minister of Education and the executive of the Ontario Teachers’ Federation, to establish subsidiaries to provide certain pension administration and investment services to administrators of other pension plans and other specified bodies and to invest the assets of the pension fund in an authorized subsidiary.

Bill 162 received Royal Assent on June 5, 2009.

Bill 133, An Act to amend various Acts in relation to certain family law matters and to repeal the Domestic Violence Protection Act, 2000

Bill 133 includes a number of amendments to the Pension Benefits Act (PBA). New sections of the PBA provide for the valuation, for family law purposes, of the benefits and entitlements of members and former members of pension plans and for the division of their benefits and entitlements for certain family law purposes. Many of the details of how these provisions will work will be set out in regulation.

Bill 133 received Royal Assent on May 14, 2009. The amendments to the PBA contained in Bill 133 will come into force on a day to be named by proclamation of the Lieutenant Governor.

Ontario Regulation 116/09 made under the Pension Benefits Act

O. Reg. 116/09 adopts the revised Canadian Institute of Actuaries Standard of Practice for pension commuted values. The regulation is effective on April 1, 2009 and applies to terminations on and after that date.

Previous Legislative and Regulatory Changes