Proposed Changes to Federal Pension Laws Announced
Yesterday, the Honourable Jim Flaherty announced proposed changes to federal pension laws. The majority of the changes will only affect registered pension plans that cover employees who fall within the federal government’s jurisdiction (including employees of airlines, railways, radio broadcasters, banks, ferries and shiplines). However, there is a proposed increase to the pension surplus threshold under federal tax legislation that would impact all pension plans, including those registered in Ontario. In addition, there is a proposed change to the federal investment rules which could prompt provincial changes, as Ontario’s pension investment rules (as well as the pension rules in several other provinces) currently refer to the existing federal investment rules.