In Canada, several provinces have put together expert commissions to study pension plans -- their funding, sustainability, relevance and expansion. Three reports from four provinces have been released.
The final report (Getting Our Acts Together: Pension Reform in Alberta and British Columbia) was released on November 14, 2008.
Among the recommendations:
- Harmonize each province’s legislative frameworks.
The two provinces should adopt identical pension acts, establish a joint policy advisory council and joint pension tribunal and work towards a single pension regulator.
- Promote confidence in the pension system.
Alberta and British Columbia should shift to a more principle-based regulatory system, improve pension plan governance and revise the rules relating to funding, disclosure and benefits of pension plans.
- Improve individuals’ knowledge and choice regarding their pensions.
The two governments should work to enhance financial literacy and revise the rules relating to the “locking in” of contributors’ pension monies.
- Improve pension coverage for Albertans and British Columbians.
The two governments should create a new pension plan operated independently and available to any employer, employee or self-employed person.
Commission Resources:
Full report
Other Resources:
Joint Expert Panel on Pension Standards: Getting Our Acts Together, Canadian Benefits & Compensation Digest
Alberta-British Columbia Panel Releases Final Report, Watson Wyatt
Alberta/British Columbia Joint Expert Panel on Pension Standards Report, Blake, Cassels & Graydon LLP
Ontario
Expert Commission on Pensions
The final report (A Fine Balance: Safe Pensions, Affordable Plans, Fair Rules) was released in November 2008.
Among the broad recommendations:
Innovation in the pension system
- A new government agency (the Pension Champion) that would assume responsibility for collecting and disseminating reliable information about the pension system, for thinking creatively about new pension strategies and policies, and for working with stakeholders to improve the pension system
- An adaptable legislative and regulatory framework
- Possible expansion of the Canada Pension Plan, or creation of a comparable provincial plan to expand pension coverage
- A national pension summit to investigate all reform, simplification and expansion ideas
Improvement in the process of pension policy making
- Enhanced capacity of the government to collect, analyze and better utilize pension data
- Formation of Pension Community Advisory Council to advise government on all significant policy initiatives and to serve as a forum for the exchange of views
- Pension legislation to facilitate the introduction of new plan designs as well as new regulatory initiatives
- Comprehensive review of pension legislation every eight years
- Government support of efforts to avoid further divergence in pension policy, legislation and regulation among Canadian jurisdictions
- Greater standardization of technical and procedural requirements among pension regulators
Commission Resources:
Expert Commission's main Web page
Summary of report
Full report
Expert advisors' consensus recommendations on technical and operational issues
Other Resources:
Report of the Ontario Expert Commission on Pensions: A Fine Balance, Canadian Benefits & Compensation Digest
Communique: Ontario Releases Expert Commission Report, Mercer
Ontario Expert Commission Report: The Road Ahead for Pension Plans, Watson Wyatt
Report of the Ontario Expert Commission on Pensions: Highlights and Analysis, McMillan LLP
Ontario Expert Commission on Pensions Releases Final Report, Torys LLP
Ontario Expert Commission on Pensions Report, Blake, Cassels & Graydon LLP
Nova Scotia
Pension Review Panel
The final report (Promises to Keep) was released on January 27, 2009.
Key recommendations include:
- Requiring all pension plan promises to be properly funded
- Simplifying rules and permitting greater flexibility in plan design
- Replacing going concern and solvency funding standards with a single standard
- Improving governance and requiring greater transparency for employees and representatives
- Having an agency to administer a provincewide plan and to promote pension knowledge
Commission Resources:
Pension Review Panel main Web page
Press release
Final report
Other Resources:
Nova Scotia Pension Review Panel Releases Report: Promises to Keep, Canadian Benefits & Compensation Digest
Communique: Nova Scotia Pension Review - Final Report, Mercer