Ottawa Takes A Swing At Pension Reform

On October 27, 2009, the Government of Canada announced its intention to reform the legislative framework applicable to federally-registered pension plans as well as the tax rules applicable to nearly all registered pension plans in Canada. The announcement follows the release in January 2009 of a discussion paper and consultation period on the federal pension rules and comes in the wake of numerous provincial attempts at pension reform. No timeline has been given for when formal amendments to the affected legislation and regulations will be forthcoming, and no opportunity to comment on the announcement was offered.

The purpose of the reforms does not appear to be so much to manage the effects of the current financial crisis, but rather to make fundamental changes to pension legislation that will lessen the impact of the next one. The stated dual objectives of the reforms are to enhance the benefit security of members and retirees while making pension plans easier to