What the Ontario Budget means for employers

Ontario Finance Minister Charles Sousa announced the province’s 2016 budget on Thursday, outlining a range of developments of interest to employers and benefit plan sponsors, including:

  • Additional information on the implementation of the Ontario Retirement Pension Plan. The government plans to outline further legislation for the ORPP to be introduced in the spring. This legislation will focus on employer eligibility, benefit calculations, and the compliance and enforcement regime.

Read: Ontario Budget: The ORPP pushes ahead, more details to come in spring

  • Less than two months after Quebec changed the funding rules for its private defined benefit pension plans, the Ontario government said it will proceed with a review of the province’s solvency funding framework for single-employer defined benefit pension plans. The government also plans to extend temporary solvency funding relief measures.

Read: Ontario Budget: Province starts reviewing pension solvency rules

  • Details on the long-term overhaul of the Ontario Drug Benefit program, as well as changes to the ODB seniors’ program set to take effect Aug. 1, 2016.

Read: Ontario Budget: Redesigned public drug program to come by 2019

  • Ontario is introducing changes to the Pooled Registered Pension Plans Act, 2015 and is proposing changes to enable the introduction of pension advisory committees.

Read: Ontario Budget: Province to introduce PRPP changes

  • A clarification of the governments plans for reducing future WSIB premiums, continuing its review of benefits programs through income testing, and streamlining health, life and dental plans for the education sector.

Read: Ontario Budget: WSIB reductions, income testing for benefits, streamlined benefits for the education sector

  • The government said it will continue to consult on all aspects of a target benefit multi-employer pension plans framework, including funding rules.

Read: Ontario Budget: Government continues to consult on target benefit plans

  • A final report on modernizing and increasing accountability around the regulations of financial services and pension plans in Ontario is set to be released in the spring.

Read: Ontario Budget: Final report on modernization of pension plans to come this spring

  • The Gender Wage Gap Steering Committee is to make recommendations in May 2016 to help shape the implementation of Ontario’s Gender Wage Gap Strategy.

Read: Ontario Budget: Gender wage gap committee to report in May