Jobs & Economy

End funding of retirement incentives from underfunded pensions

The Ontario Pension Benefits Act allows companies to pay commuted value retirement incentives from the pension plan regardless the plan's solvency. This makes a bad situation worse as underfunded pensions are further depleted to cover these retirement incentives.

The regulations should be changed to only allow companies to utilize pension funds as retirement incentives when the pension is fully funded. If it isn't companies should fund retirement incentives from operations.

Please don't just pass by. If you choose not to support this idea, please post why and what you would propose as an alternative.

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Idea No. 367