The investment rules applicable to Ontario-registered pension plans have changed. The key impact of this change is that Ontario-registered pension plans are no longer subject to prescribed investment limits on real property and Canadian resource properties.
The regulation under the Ontario Pension Benefits Act incorporates the investment rules under the federal Pension Benefits Standards Act, 1985 (the federal investment regulations). Until the recent change, those rules were frozen as at December 31, 1999. With the change, the federal investment regulations as they may be amended from time to time now apply to Ontario-registered pension plans. The Ontario approach parallels that taken by the western provinces.
As a result of this change, the recent changes to the federal investment regulations, which removed the prescribed limits on investments in real property and Canadian resource properties, will now apply to Ontario registered plans.
The change will also mean that Ontario-registered pension plans will benefit from the proposed changes to the federal investment regulations which are expected later this year.
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