Draft Regulations to the Pension Benefits Act Released
Date: April 30, 2012
On April 30, 2012, the Ontario government released a draft regulation amending Regulation 909 (General) made under the Pension Benefits Act (“Act”) for commentary by June 1, 2012. Among other things, the proposed regulation would: enable the proclamation of the “retired member” provisions in the Act; implement immediate vesting for plan members and enable the small pension payout rule; further clarify the surplus payment rules; and reflect changes to the Income Tax Act (Canada) regarding Individual Pension Plans. The proposed regulation also makes additional housekeeping amendments and clarifies the rules regarding credited interest on contributions.
The government also released a consultation paper discussing the important features of the new extended grow-in rules (including the “activating events”) which come into force July 1, 2012. Comments on this paper are also invited by June 1, 2012.
We are in the process of reviewing the draft regulation and consultation paper, and will be providing you with a more detailed analysis of the implications of these proposals over the coming days. In the meantime, we have posted a summary of these proposals on the Human Resources Legislative Update blog.
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