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.
