October 29, 2009
Ontario is pledging to introduce measures next month to enhance protection for employee plans following federal moves to modernize pension rules. The Finance Minister plans to reform the laws in two stages, beginning with legislation next month and again next year that will focus on provincially regulated pension funds. The Finance Minister will also press Ottawa to work with all provinces on measures to help the majority of workers who have no pension plans.
Pension experts say the new federal reforms do little to address concerns about huge new funding obligations following last year's market meltdown, and argue that new costs imposed in the changes may even accelerate the loss of pension plans in the private sector.
"Pension plan sponsors now looking at this are saying, 'Great, more rules that we have to jump through,'" Mitch Frazer says.
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