Ministry of Finance calls for consultation on Pension Benefit Act Regulations

The Ministry of Finance has called for consultation on their proposed regulations covering the conversion of Single Employer Pension Plans to Jointly Sponsored Pension Plans.

As you may remember, the Solvency Relief Application filed by Ontario Northland back in 2011 contained the following under

D2 Framework for Change

(the last bullet)  Commitment to continued exploration of greater sharing of risk and governance through conversion to joint sponsorship for future service.

There were other measures contained in that application, one of which was increased contributions, which the unions and the company subsequently agreed to.  In Aug of 2014, I asked the company the following

Q.  Is the company still committed to all the other items in Section D2 of the Solvency Relief Application?

A.  The group that made the recommendation used the framework in D2 in their analysis of the various alternatives to achieve a more sustainable plan.  In the end it was determined that increasing employee contributions would be sufficient to meet the funding target.  The health of the plan will continue to be monitored and if it is determined that further action must be taken then we will bring back the committee that made the initial recommendation and have them look at alternatives and make a recommendation.

I am working with CFP to determine what is our best response to this call for consultations and will update in the near future.  We need to respond quickly as the call for consultation has a deadline of Feb 27th.

Any input would be greatly appreciated  Thank you

 

Phil Koning

Chair ONPA

 

4 thoughts on “Ministry of Finance calls for consultation on Pension Benefit Act Regulations

  1. Dear ONPA Board,
    During this consultation, please tell the Minister of Finance that we want a pension plan just like his.
    Thank you.
    Gord Hamilton.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s