Ontario Finalizes Regulations For Target Benefit Plan Framework

On October 16, 2024, the Ontario government filed various regulations under the Pension Benefits Act to implement a permanent target benefit pension plan (Target Benefit Plan) framework.

Target Benefit Plans seek to offer members a monthly income stream in retirement at a predictable cost for employers. The Ontario government has been consulting on the Target Benefit Plan framework for several years, and the finalized regulations for the framework, which include both new regulations and amendments to existing regulations, will come into effect on January 1, 2025.

Key aspects of the new Target Benefit Plan framework include:

• A requirement that a Target Benefit Plan be a multi-employer plan that is not a jointly sponsored pension plan, as well as certain requirements for employers of plan members