Ontario revamps pension system

First round of changes focuses on employees
By Shannon Klie
|Canadian HR Reporter|Last Updated: 01/11/2010

The Ontario government has proposed changes to the pension system that will benefit employees but employers will have to wait until the second phase of changes later in 2010 for any substantial benefits, such as funding rule alterations, according to pension experts.

“It really primarily focused on employees at this point in time. Most of the benefits are for employees and, hopefully, the next stage will bring in more to deal with employer issues around funding,” said Scott Clausen, a national partner at Mercer in Toronto.

The legislation, proposed in December, covers defined benefit (DB) pension plans and will increase benefits for laid off employees and require benefits to be vested immediately, instead of waiting two years.