On May 13, 2010, Bill 54, the Retirement Savings Plans for Employees and Self-Employed Persons Act, 2010 was referred to the Standing Committee on Finance and Economic Affairs. Bill 54 is a Private Member's Public Bill, first introduced on May 5, 2010. As outlined in our FAQ section, historically, very few Private Member Bills progress beyond the Committee stage to Third Reading or receive Royal Assent. It is therefore unlikely to become law.

If passed, Bill 54 would amend the Employment Standards Act, 2000 ("ESA") to require every employer with 20 or more employees to establish or participate in a retirement plan (either a group RRSP or a registered pension plan, including a MEPP).

Bill 54 would also amend the Pension Benefits Act to introduce a new class of plan called a "defined contribution multi-employer pension plan". The amendments would allow insurance companies and financial institutions to establish and administer DC MEPPs. Employers subject to the proposed new provision in the ESA would have the option of participating in one of these DC MEPPs to satisfy their obligation to provide a retirement plan to employees. Sole proprietors would also have the ability to participate in a DC MEPP. While plan members would be required to make contributions to a DC MEPP, employer contributions would be voluntary (the Bill will have to be amended in this respect, since the ITA would prohibit this type of arrangement).