Ontario Helping Workers Plan For Retirement
Province implementing target benefit pension plan framework
The Voice of Canada News:
Ontario is helping workers prepare for their retirement by implementing a permanent framework for target benefits. This framework will help support the sustainability of multi-employer pension plans and pave the way for more employers to offer these plans, helping workers save for their retirement.
Target benefit pension plans provide a monthly stream of income in retirement at a predictable cost for employers. Multi-employer pension plans that provide target benefits are often created by a union or association within a specific industry, especially industries involving the skilled trades. Members of these plans can move from employer to employer while continuing to participate in the same pension plan, which supports job mobility and helps to attract more people into the skilled trades.
“Our government recognizes that retirement savings are crucial to protecting the financial security of workers and retirees, which is why this new permanent target benefits framework is so important,” said Minister Peter Bethlenfalvy. “These plans and their respective members are now supported with clear rules and responsibilities so that workers have a stable retirement with a secure stream of income they deserve.”
Following consultations with the sector, the government has finalized the regulations to establish a permanent target benefit framework, which will come into effect on January 1, 2025. Multi-employer pension plans that wish to convert their benefits to target benefits can apply to the regulator for consent beginning in 2025.
The target benefit framework includes measures to strengthen plan governance, enhance plan communication to members, and improve the management of plan funding. Once pension plans begin operating under the target benefit framework, the government will monitor the new regime to ensure that it is meeting these objectives and needs of workers and retirees with benefits in these plans.
Quick Facts
Currently, there are 68 multi-employer pension plans in Ontario, many of which were established for workers in the skilled trades. They have over one million participants and hold nearly $48 billion in assets.
In 2023, 1.3 million people worked in skilled trades-related occupations in Ontario. Over the next decade, the province is expected to need over 500,000 more workers in skilled trades-related occupations.
Quotes
“With this new permanent target benefits framework, our government is ensuring workers and retirees – the Golden Generation of Skilled Tradespeople who built this province into what it is today – receive the financial security and reliability that they have earned. This is part of our government’s plan to attract, retain, and train the province’s workforce who are shaping Ontario’s bright future.”-David Piccini
Minister of Labour, Immigration, Training and Skills Development
“For many years, LiUNA has advocated for permanent and appropriate regulations for multi-employer pension plans to provide our members with secure pensions in their retirement. On behalf of our members, we commend Premier Doug Ford, Minister Bethlenfalvy and the Ministry of Finance for collaborating with the sector to bring long overdue reform that will promote secure pensions for LiUNA members in Ontario’s construction and non-construction related industries. With this new permanent framework, the government is showing that it understands the unique challenges faced by unionized employees in the Ontario construction and non-construction related industries that participate in multi-employer pension plans and are stepping up to support their success both on the job and in retirement.”-Joseph Mancinell, Chair, Board of Trustees of the LiUNA Pension Fund of Central and Eastern Canada, LiUNA International Vice President and Canadian Director
“Our membership has been waiting seventeen years for the government of Ontario to meaningfully consult with the multi-employer pension sector and develop a permanent framework for target benefits pension plans. MEBCO is pleased to see the government’s continued support on this file and their continued commitment to engage with us to help workers prepare for their retirement.”-Alex D McKinnon President, Multi-Employer Benefit Plan Council of Canada (MEBCO)
