A look at pension reforms from coast to coast

Provincial, federal governments strengthened DB funding standards, improved benefit security
By Leigh Ann Bastien
|Canadian HR Reporter|Last Updated: 02/11/2011

Among Canada’s 11 jurisdictions, there is almost always some pension reform in the works. After the economic crisis of October 2008, which hit an already badly stressed private pension system, governments across the country began to work in earnest. Many provided temporary solvency funding relief to sponsors of defined benefit (DB) plans. Permanent reforms also began to take shape in 2010.

The single most notable trend is the strengthening of DB funding rules to improve benefit security. Other measures adopted in 2010 include benefit improvements, governance, employer surplus withdrawal and regulatory supervision or process. Immediate vesting stands out as the benefit trend of the year.

Here is a coast-to-coast rundown of the major reform activity in 2010.