On Oct. 17, CAN ONT GVT issued permanent target pension benefits.
CAN ONT GVT announced implementing permanent framework for target benefits.
Framework help support sustainability of multi-employer pension plans, pave the way for more employers to offer these plans, helping workers save for their retirement.
Follows CAN ONT FSRA indicating began drafting Supervisory framework, #225551.
Target Benefit Framework
Establish framework to include measures to strengthen plan governance, enhance plan communication to members, and improve the management of plan funding.
Once pension plans begin operating under target benefit framework, government will monitor new regime to ensure is meeting objectives and needs of workers, retirees.
Provide a monthly stream of income in retirement at a predictable cost for employers.
Members of plans can move from employer to employer while continuing to participate in same pension plan, supports job mobility, helps to attract more into skilled trades.
Effectiveness
Final regs on permanent target benefit framework come into effect Jan. 1, 2025.
Multi-employer pension plans that wish to convert apply for consent beginning in 2025.
