Ontario seeks comment on pension regs

By Staff | March 9, 2011 | Last updated on March 9, 2011
1 min read

On March 3, 2011, the Ontario government released draft regulations regarding the division of pension assets on marriage breakdown. Public comments are invited up to April 18, 2011. The new rules may be proclaimed into force as soon as July 1, 2011.

The new regulations will require administrators to:

1. Provide a new type of calculation when a member (or their spouse) requests a statement of benefits.

2. Adjust their systems and create processes to handle the new type of calculation.

3. Update administration manuals to ensure compliance with the new regulations.

4. Prepare communication materials that meet the requirements (utilizing yet-to-be-released forms).

The draft regulations require the immediate settlement of a claim by a separated spouse for both active and inactive plan members. The new rules have disposed of “if-and-when” arrangements that, in the past, deferred a settlement. The new rules also make plan administrators responsible for the valuation of pension assets for family law purposes. Administrators are also responsible for managing the implementation of the settlement according to the legislation.

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The staff of Advisor.ca have been covering news for financial advisors since 1998.