Human Resources Legislative Update
Ontario Announces Consultations to Enhance BPS Pension Fund Investment Efficiencies
Date: June 5, 2012
Further to initiatives first announced in its 2012 Budget, the Ontario government has appointed a special Pension Investment Advisor, Bill Morneau, to develop recommendations for the government’s consideration through a public consultation process in anticipation of a new legislative framework that will facilitate the pooling of pension fund assets in the broader public sector (“BPS”).
Pension plan administrators and other stakeholders are invited to comment on the following questions:
- What is the appropriate mechanism(s) for pooling the investments of BPS pension plans?
- Should participation in the model be voluntary or mandatory?
- What is the appropriate governance model to ensure effective leadership and representative decision-making?
- How can the model meet plan-specific investment needs in a manner that is consistent with the fiduciary responsibilities of plan administrators?
- How can the model be implemented? What is the appropriate transition period for implementation? How should transition costs be allocated?
- What role should pension plan design, asset allocation models and the size of the plan play in determining participation?
- Are there any obstacles to the inclusion of defined contribution pension plans in the model?
- Should the model include other BPS Investment Funds?
Comments may be submitted by June 30, 2012, and will be posted on the Ministry of Finance website at a future date, unless otherwise directed.