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Are You Prepared for the New Pension Advisory Committees Legislation?
Does your company sponsor an Ontario-registered pension plan (RPP)? If so, you need to know about the new legal obligations under Ontario’s recent law on Pension Advisory Committees (PACs).
On January 1, 2017, the province enacted new legislation on PACs, stating that RPP members and retired members, or unions working on their behalf, may participate in a vote to establish a PAC if 10 or more members request it. The newly enacted PAC, then, would monitor the plan administration, make recommendations to the administrator, and promote awareness and understanding of the plan among members.
In order to promote optimal operation of a PAC, RPPs need to focus on the following key issues:
This new PAC legislation could have profound effects on your Ontario-registered pension plan. Your RPP may be better served by proactive measures to ensure adequate preparedness.
Though no exclusions are made for RPP administrators who already provide compliant and detailed RPP communications, plan members may be less likely to request a vote to establish a PAC if they are satisfied with current communication efforts and feel they are well-informed about the RPP.
If you expect plan members will want to form a PAC, you may want to consider preparing in advance for a voting system and PAC support services. This can ensure appropriate management of the process as well as reduced costs.
Mercer’s Pension experts can help you prepare and communicate by:
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