Human Resources Legislative Update
Ontario Releases Proposed Grow-In Benefit Regulations
Date: May 3, 2012
Further to the release of pension reform proposals, on Thursday, May 3, 2012 the Ontario government published additional draft amendments to General regulation 909 under the Pension Benefits Act (“Act”).
As anticipated, the draft regulations prescribe additional “activating events” or circumstances that would trigger grow-in benefits for the purpose of s. 74(1), paragraph 3 of the Act, establish how and when jointly-sponsored pension plans (“JSPPs”) and multi-employer pension plans (“MEPPs”) may elect to “opt-out” of providing grow-in benefits or rescind an election, and clarify the rules regarding the Superintendent’s power to order a wind up of a plan, in certain circumstances, among other matters.
Stakeholders are invited to submit feedback on these proposals by June 1, 2012.
We are in the process of reviewing the proposed regulations, and a more detailed FTR Now discussing the implications of these changes for employers and plan administrators will be available shortly on our website.
