Pension measures and economic advisory panel address market uncertainty

The McGuinty government is proposing to introduce legislation this spring to provide pension plans with solvency funding relief - a measure designed to protect jobs and families during these rapidly changing economic conditions.

The proposed legislation would allow businesses to spread their solvency payments over a longer period of time, freeing resources for operations, including payroll expenses.  It would also increase transparency, ensuring that workers and retirees have clear information about the financial health of their plans, while protecting benefit security in a number of ways.  

If approved by the legislature, the government's measures would provide temporary solvency funding relief, through regulations, retroactive to September 30, 2008.  If passed, the eight measures would include:

• An extension of solvency amortization periods from five to 10 years with the consent of active members or their collective bargaining agent and retired plan members
• Consolidation of previous funding schedules
• Deferral of catch-up payments to provide one year of cash flow relief
• Permitting the use of actuarial gains to reduce annual cash payments by plan sponsors
• Enhanced notice to active and retired plan members  
• Accelerated funding of benefit improvements
• Temporary limitations going-forward on certain contribution holidays
• Adoption of the revised Canadian Institute of Actuaries' Standard of Practice for Pension Commuted Values for solvency valuations

Today, the Minster of Finance is also announcing members of an economic advisory panel from key sectors who have been actively involved in ongoing discussions regarding the rapidly changing economy.  The panel will continue to offer ideas, analysis and advice in a new forum on ways to strengthen Ontario's economy.

The members are: Gordon Cheesbrough (Deceased, 2010), Janet Ecker, Tim Hodgson, David Leith, Tito Martins, Michael J. Mueller, Lynn Patterson, Jim Stanford and Douglas Turnbull.

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