Ontario Making Progress On Pension Rules
McGuinty Government Signs Pension Plan Agreement With Quebec
Ontario is moving forward with Quebec to create rules that will make the pension regulatory environment more efficient and transparent.
The Agreement Respecting Multi-Jurisdictional Pension Plans would establish clear rules on how multi-jurisdictional pension plans (MJPPs) are administered in Ontario and Quebec. Specifically, the agreement would:
- Set out legally how these plans are regulated and clarify issues unique to MJPPs that are not addressed in existing pension statutes;
- Clarify the rules that apply to these plans; and
- Would allow a single supervisory authority to regulate an MJPP.
The agreement would apply to a pension plan when the plan is registered with the pension regulator of Quebec or Ontario and the pension plan provides benefits to members, or former members, in both provinces.
The agreement is the result of over ten years of negotiation and consultation with affected stakeholders, most recently led by the Canadian Association of Pension Supervisory Authorities.
As reaffirmed in the 2011 Budget - Turning the Corner, the McGuinty government is committed to modernizing Ontario's pension system, and playing a leading role in national discussions on the retirement income system to help Ontario families.
- A multi-jurisdictional pension plan is a pension plan that provides benefits for plan members in two or more Canadian jurisdictions. Over one million Canadians belong to Ontario-registered MJPPs.
- The agreement is expected to come into force on July 1, 2011.
- Ontario regulates approximately 8,350 employment pension plans, which comprise more than 40 per cent of all registered pension plans in Canada.
- Read the proposed Agreement Respecting Multi-Jurisdictional Pension Plans.
- Read the agreement's Commentary Guide, which provides additional explanation and examples about the agreement's requirements.
- See the pension and retirement income system reforms that the McGuinty government has undertaken.
- Read the Financial Services Commission of Ontario's announcement of the signing of the agreement.
“The signing of this agreement is a further step in the McGuinty government's plan to strengthen Ontario's and Canada's retirement income system. By clarifying the rules for multi-jurisdictional pension plans, we are continuing to build a more efficient, modern pension framework.”