Nova Scotia’s government has introduced an amendment that will ensure all pension plans are fully funded when a company leaves the province or winds down their pension plan and is also planning to review its pension benefits legislation.

“We are committed to bringing forth legislative amendments that will address pension issues in a sustainable and comprehensive way,” says Mark Parent, the province’s environment and labour minister.

If the amendment passes, it will be backdated to June 1. That would force Trenton Works Limited to be responsible for fully funding the pension benefits of its former employees.

The company’s pension plan was only 91% funded when The Greenbrier Companies, TrentonWorks’ parent firm, decided to shut the division down earlier this year.

In addition to the pension benefits amendment, the government has committed to a full review of pension benefits legislation.

“I will create an advisory panel to review our current legislation to ensure best practices are being followed to protect pension plan members,” he adds.

The advisory panel of experts, similar to the Ontario Expert Commission on Pensions, will come from the pension field. The committee will consult broadly with stakeholders and make recommendations to government in the fall of 2008.

To comment on this story, email craig.sebastiano@rci.rogers.com.

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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