Recent Budget Measures Bill Amends Ontario Pension Legislation

On November 16, 2016, Bill 70, Building Ontario Up for Everyone Act (Budget Measures), 2016 (Bill) received first reading in Ontario's legislative assembly. If passed, the Bill will amend the Pension Benefits Act (Ontario) (Act) in various respects.

1. The rules regarding portability options have been amended. Portability options are the options available to a former employee to withdraw his or her pension in lump sum and transfer it to certain other types of plans, such as another pension plan or a prescribed retirement savings arrangement. Due to amendments made to the Act in 2012, portability options were technically restricted to employees whose employment terminated prior to the employee's normal retirement date set out in the pension plan.

   The Bill amends the Act so employees whose employment terminates on or after the normal retirement date can be provided portability options prior to the member electing to receive a pension, if the plan so provides.