On May 10, 2011, Bill 173, the Better Tomorrow for Ontario Act (Budget Measures), 2011, carried at Third Reading after being reported as amended by the Standing Committee on Finance and Economic Affairs. It is expected to receive Royal Assent shortly.

The Committee amendments to Bill 173 with respect to the Pension Benefits Act relate specifically to the new asset transfer rules for prior sales of business (section 80.1) introduced by Bill 236, the Pension Benefits Amendment Act, 2010 (the details of which are discussed in our FTR Now of May 19, 2010).

The amendments include a new provision that will permit employees who terminated employment with the successor employer between May 18, 2010 and the date these provisions are proclaimed into force to elect to consolidate their benefits under the pension plan provided by the successor employer. In contrast, retirees will continue to be restricted from the ability to elect to consolidate their benefits via an asset transfer.

Certain other Pension Benefits Act amendments will come into force on Royal Assent, most notably the amendment to permit portability transfers for the purchase of annuities at the option of a pension plan (section 42). However, the Bill should be consulted for coming into force information.

As previously reported, Bill 173 is omnibus legislation amending a variety of statutes to implement certain initiatives outlined in the 2011 Ontario Budget tabled on March 23, 2011.

More information about Bill 173 is outlined in our FTR Now of March 31, 2011, "Ontario Budget 2011 - Highlights For Employers".