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Among other things, Phase 2 proposes to:

• Impose a minimum assessment fee, increase the base fee per member, and increase the maximum fee per member to fund the Pension Benefits Guarantee Fund;
• Allow the use irrevocable letters of credit to fund a portion of solvency liabilities;
• Allow contribution holidays unless expressly prohibited by the plan or if taking the holiday would reduce a plan's solvency below a prescribed threshold;
• Require employers to disclose their intention to take a contribution holiday;
• Limit "smoothing" of pension plan assets and liabilities;
• Introduce a binding arbitration process to resolve disputes over surplus entitlement;
• Adopt the new quantitative investment limits in the federal Pension Benefits Standards Act;
• Permit the payment of reasonable expenses from a pension fund unless prohibited by pension plan documents;
• Exempt target benefit multi-employer and jointly sponsored pension plans from solvency funding requirements; and,
• Give public sector employers more time to pay down solvency deficiencies.

For more detailed information on Phase 2 of Ontario's pension reform agenda, please see Heenan Blaikie's Pension Pulse " Ontario Government Announces Phase 2 of Pension Reform" (pdf).