McGuinty government tries to ease pension worries

NEWS RELEASE

MINISTRY OF FINANCE

************************* Further improvements to pensions for Ontarians

McGuinty government continues to modernize and strengthen retirement income system

Reforms to be introduced today will further strengthen Ontarians' pensions, addressing concerns of workers, retirees and employers.

The Securing Pension Benefits Now and for the Future Act, 2010 builds on the first phase of reforms that passed unanimously last spring.

Extensive consultations with partners and the public led to these reforms, which would:

- Strengthen Ontario's pension funding rules by requiring more sustainable funding of promised benefits and stronger funding standards for benefit improvements

- Provide a framework to permit more flexible funding rules for certain multi-employer pension plans and jointly sponsored pension plans

- Clarify pension surplus rules and provide a dispute resolution process to allow members, retirees and sponsors to reach agreements on how surplus should be allocated on wind up

- Provide a more sustainable Pension Benefits Guarantee Fund by implementing a strategy to build reserves, increase revenues, limit current exposure and reduce risk to taxpayers in the future; and

- Further strengthen regulatory oversight and improve plan administration.

Ontario continues to call for a modest and gradual expansion of the Canada Pension Plan and is advocating for pension innovation.

It would harness Canada's world-leading private sector expertise to provide more efficient, lower-cost retirement options for Ontario families.

"Strengthening and modernizing the Pension Benefits Act is an important part of adding to the security of retirement income for Ontarians. Taking the necessary steps today to preserve the quality of life for our future seniors is crucial to the health of our economy," said Dwight Duncan, Minister of Finance [shown].

Quick facts

The government's reforms to date will have responded to about two-thirds of the 142 recommendations in the Report of the Expert Commission on Pensions.

Remaining recommendations will be considered for inclusion in future reforms.

Before the reforms introduced by the province in 2009, Ontario's pension rules had been largely unchanged for more than two decades.

Ontario regulates approximately 8,350 employment pension plans, which comprise more than 40 percent of all registered pension plans in Canada.

Learn more

Learn more about Ontario's position on retirement income reform.

Read a summary of the report by the Expert Commission on Pensions.

McGuinty government taking additional steps to strengthen Ontario's pension system.

*************************