Ontario is proposing to strengthen and modernize the employment pension system to help pension plans adapt to economic changes while balancing the need for benefit security.

The Pension Benefits Amendment Act, 2009, introduced today, would build on the recommendations in the report by the Expert Commission of Pensions, and would:

• Clarify the benefits of plan members affected by lay-offs and eliminate partial wind-ups.  A partial wind-up occurs when only part of a pension plan is closed
• Facilitate the restructuring of pension plans affected by corporate reorganizations, while protecting benefit security for plan members and pensioners
• Increase transparency and access to information for plan members and pensioners
• Enhance regulatory oversight
• Improve plan administration and reduce compliance costs.

Providing clear rules and modernizing pension plan administration would enable plan sponsors and plan administrators to operate more efficiently and effectively. 

The Pension Benefits Amendment Act, 2009 is part of a multi-step process that represents the first pension reform of this magnitude in more than 20 years.  Another bill is planned for 2010.