Ottawa proposes changes to private pensions

Intended to make plans less sensitive to financial market volatility
|hrreporter.com|Last Updated: 01/04/2011

(Reuters) - The Canadian government has proposed changes to rules governing federally supervised private pension plans to make them less sensitive to financial market volatility.

The regulatory amendments would provide more tools to sponsors of federally regulated private pension plans to "better manage their funding obligations while providing additional protection to plan members and retirees," said Finance Minister Jim Flaherty.

The changes would only affect about seven per cent of all private pension plans in Canada, as most are regulated by provincial authorities. The suggested amendments are: