Human Resources Legislative Update
Federal Government Consults Public on Proposed Target Benefit Plans Framework
Date: April 24, 2014
On April 24, 2014, the federal government announced the launch of consultations on a potential federal framework for Target Benefit Plans (“TBP”). TBPs, if introduced through subsequent legislative reforms, would create a new pension design option available to federally regulated private sector and Crown corporation plan sponsors under the Pension Benefits Standards Act, 1985 (“PBSA”). The government clarified that this proposed framework would not apply to the core public sector pension plans which are governed by statutes such as the Public Service Superannuation Act, the Canadian Forces Superannuation Act and the Royal Canadian Mounted Police Superannuation Act.