UPDATE - Legislation and Regulations for Past Divestment Transfers Takes Effect January 1, 2014Posted: December 12, 2013
On November 29, 2013, the Ontario government introduced Regulation 308/13 under the PBA and announced that section 80.1 of the Pension Benefits Act (PBA) will become effective on January 1, 2014. Both section 80.1 of the PBA and Regulation 308/13 set out new rules for the consolidation of pension benefits for past divestments which occurred prior to January 1, 2014.
In 2014, OPTrust will be permitted to enter into transfer agreements with certain other public sector pension plans that will provide divested members covered by the applicable transfer agreement the option to transfer their OPTrust pension benefits to their current pension plan.
Already, OPTrust has been discussing the terms of a potential transfer agreement with other public sector pension plan administrators. As well, OPTrust has been engaging in efforts with the other public sector pension administrators to prepare for the potential offer to eligible members to transfer their OPTrust pension benefits to their current pension plan.
Subject to the approval of a transfer agreement, OPTrust intends to provide eligible members with information packages that set out individual election options. The plan is to do this through a staged-approach over a period of a few months. The transfer calculations to be included in the election packages will not be affected by this staged-approach, i.e., the transfer calculations will not be dependent on the date the election options are sent out, but rather, they will be based on a common calculation date.
OPTrust and the other affected public sector pension plans want to provide these options to as many members as possible, given the practicalities of the PBA provisions and what each plan can realistically administer.
Further updates will be provided as information becomes available.