What's New in Pensions and Benefits - Nov/Dec 2018

  • January 03, 2019
  • Evan Shapiro and Michelle Rival, Willis Towers Watson

Ontario Introduces Bill 57

The Ontario government introduced, on November 15, 2018, Bill 57, Restoring Trust, Transparency and Accountability Act, 2018. It is an omnibus bill, introduced following Ontario’s Economic Outlook and Fiscal Review, and amends several statutes, including the Pension Benefits Act (PBA). The Bill was proclaimed into force on December 6, 2018.

This new legislation amends the Ontario’s PBA to provide:

  • The ability to designate beneficiaries electronically (new section 30.1.1)
  • The ability to unlock benefits for non-residents (new section 50.0.1)
  • The administrators with a discharge on the purchase of an annuity under section 43.1 for a surviving spouse who is in receipt of a survivor pension following the death of a retired member
  • Clarification that the discharge under section 43.1 does not affect any potential claim regarding surplus if the plan is wound up in the future, regardless of whether there is surplus at the time the annuity purchase
  • For the withdrawal or transfer of 50% of the variable benefit account (new subsection 39.1(5))

The first two items are effective on December 6, 2018. However, the remaining changes (except for the clarification of surplus entitlement and a corrected section reference which are now in force) are still not effective.