The pace of pension reforms in Ontario has been fast-moving since the release of the Ontario Budget on March 28, 2018. Among other things, the Budget announced continued work on the new funding rules for defined benefit pension plans and related increases to coverage under the Pension Benefits Guarantee Fund, a consultation on a new funding framework for target benefit multi-employer pension plans, consultations regarding new protections for plan members affected by employer insolvencies, and continued work on the new pension and financial services regulator, the Financial Services Regulatory Authority.
defined contribution plan
It is no secret that DB plans are too financially risky for individual employers. It is also no secret that, on average, it costs approximately 92% more to provide the same $1 of retirement income under a DC plan than under a DB plan. DB plans are just that much more cost efficient. To provide more satisfactory results, DC plans should take the best features of DB plans.
On May 17, 2012, the Province of Nova Scotia adopted Bill 86, the NewPage Port Hawkesbury Pension Plans Act in response to a request by members of Local 972 of the Communications, Energy, and Paperworkers Union of Canada. The Act extends the life of four underfunded defined pension plans for the employees of the former NewPage Port Hawkesbury pulp and paper mill.