The Ontario government said it will continue to consult on all aspects of a target benefit multi-employer pension plans framework, including funding rules.
In its 2016 budget, announced Feb. 25, the province said some concerns have been raised around transitioning multi-employer pension plans to a new framework, and it’s committed to providing a transition period that allows sufficient time and ensures minimal disruption to the collective bargaining process.
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In summer 2015, Ontario released a consultation paper seeking input from affected stakeholders on a proposed regulatory framework for target benefit multi-employer pension plans, including a permanent exemption from solvency funding requirements.
The consultation paper also proposed a transition period of three years for eligible plans to allow such plans to make necessary adjustments to comply with any new framework. Feedback was received from a variety of stakeholders, including actuarial firms, professional associations, multi-employer pension plans and labour unions, said the government.
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“While submissions were supportive of a new framework, including a solvency funding exemption, some concerns were raised that certain MEPPs may face challenges transitioning to a new framework and implementing changes in funding rules,” the government said.