On December 21, 2011, the Ontario government announced changes to the Pension Benefits Guarantee Fund (“PBGF”) that will become effective January 1, 2012. The enhancements to the PBGF were introduced with Phase II of Ontario’s pension reform and the passage of Bill 120, Securing Pension Benefits Now and for the Future Act, 2010, and are enacted pursuant to Regulation 466/11 under the Pension Benefits Act.

Specifically, under O. Reg. 466/11, the government will:

• establish a minimum assessment level of $250 for each covered plan;
• raise the base fee per plan member from $1 to $5;
• increase the maximum fee per plan member in underfunded plans from $100 to $300;
• eliminate the overall assessment cap, currently $4 million, for underfunded plans; and
• extend the initial waiting period for PBGF coverage of new plans and benefit improvements from three to five years.

These increased fees apply to assessment dates falling on or after January 1, 2012.

More information about Bill 120 is available in our FTR Now of October 29, 2010, "Ontario Introduces Bill 120, the Securing Pension Benefits Now and for the Future Act, 2010."

Details about the PBGF are available on the Financial Services Commission of Ontario (“FSCO”) website.