Ontario Passes Pension Reform Bill
On Tuesday, December 7, 2010, the Ontario government passed Bill 120, the Securing Pension Benefits Now and for the Future Act, 2010.
As previously reported, Bill 120 was amended by the Standing Committee on Finance and Economic Affairs and ordered for Third Reading on December 1, 2010 under an accelerated schedule for consideration and debate.
While certain amendments will come into force on Royal Assent, the Bill should be consulted for specific coming into force information.
Bill 120 builds on the first phase of Ontario pension reform outlined in Bill 236, the Pension Benefits Amendment Act, 2009, which was passed earlier this year. The reforms contained in Bill 120 encompass a range of significant pension issues including changes to the types of benefits and pension plans provided in Ontario, as well as changes to surplus entitlement and withdrawal rules, plan administration matters, funding standards, regulatory oversight, and Pension Benefits Guarantee Fund ("PBGF") coverage.
An FTR Now discussing the ramifications of the Bill as it was amended by the Committee will be available shortly on our website.
Information about Bill 120 prior to amendment 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".