The Ontario government has recently announced several proposed regulations that will affect the administration of Ontario-registered pension plans. These regulations will enable variable benefit accounts to be offered under Ontario-registered defined contribution plans, establish new filing requirements for SIPPs and set out the requirements for statements for former and retired members.

VARIABLE BENEFIT ACCOUNTS FOR DC PENSION PLANS

Of major significance for defined contribution (DC) pension plans in Ontario, the provincial government has announced a proposed regulation to implement section 39.1 of the Pension Benefits Act (Ontario) (PBA). This regulation would allow pension plans with a DC provision to offer members the option of having their DC account balances allocated to a variable benefit account from which benefits, mirroring those currently permitted from a Life Income Fund, would be paid on retirement.

The government has released a description of the proposed regulation and invited submissions from interested stakeholders. In addition, the government has asked stakeholders for views on several issues relating to members' ability to transfer assets into and out of variable benefit accounts, as well as members' ability to unlock funds allocated to variable benefit accounts.

Written submissions on the proposed variable benefit regulation should be sent by June 10, 2014, via email to pension.feedback@ontario.ca or by mail to the Pension Policy Branch, Ministry of Finance, 5th Floor, Frost Building South, 7 Queen's Park Crescent, Toronto ON, M7A 1Y7.

The Blakes Pensions, Benefits & Executive Compensation group will be providing comments to the Ministry of Finance on this proposed regulation relating to variable benefits from DC plans.

FILING OF SIPPS AND ESG DISCLOSURE

In addition, the government announced a proposed regulation to require the filing of statements of investment policies and procedures (SIPPs). Under this proposed regulation, SIPPs for new plans would need to be filed with the application for registration of the plan and existing SIPPs would be required to be filed within 90 days after the proposed regulation comes into force. In addition, the proposed regulation would require the annual statement to indicate whether or not environmental, social and governance factors are addressed in the SIPP.

Submissions on the proposed SIPP regulation may be made by June 16, 2014 by email through the Ontario Regulatory Registry or by mail to the Disclosure of Environmental, Social and Governance Factors, Pension Reform Branch, Ministry of Finance, 5th Floor, Frost Building South, 7 Queen's Park Crescent, Toronto, ON, M7A 1Y7.

ISSUANCE OF STATEMENTS TO FORMER AND RETIRED MEMBERS

When proclaimed, section 27(2) of the PBA would require information statements to be issued to former and retired members. The government has released a proposed regulation that would require plan administrators to issue these statements at least every three years to former and retired members. The content of the statements for former and retired members would be similar to that for annual statements issued to members, subject to certain modifications.

It is proposed that the first statements to former and retired members would be required to be issued within 12 months following the proclamation of section 27(2) of the Act.

The government has asked stakeholders for their views on some specific questions relating to the content and timing of the statements for retired and former members. Written submissions may be made until June 16, 2014 by email through the Ontario Regulatory Registry or by mail to the Pension Policy Branch, Ministry of Finance, Statements under subsection 27(2), 5th Floor, Frost Building South, 7 Queen's Park Crescent, Toronto, ON, M7A 1Y7.

The Blakes Pensions, Benefits & Executive Compensation group will provide a more detailed overview of these proposed regulations and their implications for plan sponsors and administrators at our upcoming seminar on May 7, 2014, Recent Developments in Pension and Employee Benefits Law.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.