Ontario Pension Reform Legislation Receives Royal Assent
Bill 236, the Pension Benefits Amendment Act, 2009 received Royal Assent late last month. While the new requirements in the Bill will not come into effect until proclaimed, the changes are significant and employers, plan sponsors and administrators should start planning for implementation now.
The Bill introduces the immediate vesting of benefits, rather than requiring of two years of participation in a pension plan. It also allows employers to extend the eligibility period to the maximum of two years or exclude participation in the plan to certain defined classes of employees. New provisions in the Bill will also help facilitate the often complicated task of obtaining regulatory approval for pension transfers in the purchase and sale of businesses where seller and buyers have pension plans. The Bill will also allow for the introduction of phased retirement and electronic transmittal of Plan member consents, notices, statements and other communications.
For more information on Bill 236, please see Heenan Blaikie's Pension Pulse " Ontario Pension Reform Bill 236 Given Royal Assent: Time to Act for Plan Sponsors and Administrators" (pdf).
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