Multi-Employer Benefit Plan Council of Canada

Submissions

Discharge of Administrator- Purchase of Annuities – Section 43, Ontario Pension Benefits Act R.S.O, 1990 (PBA)

Dear Ms. Best and Mr. Sweeting,

We are writing to follow up on a request made to include the discharge for an administrator of a target benefit pension plan (multi-employer pension plans) as part of the new funding framework for these plans.

As you know, the flaw in the current PBA, Section 43.1, was pointed out by FSRA. The flaw, simply put, provides that the administrator of single employer pension plans receives a discharge under the PBA if annuities are purchased and specified criteria are met. No such discharge is provided for multi-employer pension plans.

There is no reason for the administrators of single employer and multi-employer pension plans to have different treatment when annuities are purchased. Furthermore, we believe the discharge for the administrator should be applicable in respect of any class of member, not just retired members, former members, surviving spouses of a member, former member or retired member.

We ask that this flaw will be corrected in the new funding framework. As always, MEBCO is prepared to review this request and discuss any element of the funding framework with the Ontario Ministry of Finance.

Background on MEBCO

MEBCO was established in 1992 to represent the interests of Canadian multi-employer pension plans (MEPPs) and benefit plans (MEPs) with provincial and federal governments regarding proposed or existing legislation and policies affecting these plans. MEBCO is a federal no-share capital corporation, operating on a not-for-profit basis.

MEBCO is representative of all persons and disciplines involved in MEPs, including union and employer trustees, professional third-party administrators, non-profit or "in-house" plan administrators, professionals including actuaries, benefit consultants, lawyers and chartered accountants. MEBCO is administered by a Board of Directors consisting of representatives from each of the above groups. MEBCO represents all stakeholders in target benefit multi-employer pension plans (MEPPs) – employers, unions, and professionals.

Multi-employer pension plans (MEPPs) are typically administered by a board of trustees. The trustees in most MEPPs are appointed by some combination of the trade union(s) representing plan members and employer association(s) representing the participating employers. Both the trade unions and the employer associations are not-for-profit organizations with limited resources. The trade unions and the employer associations typically receive most of their funding through dues payable in accordance with the applicable collective agreements.

Yours truly,
Alex McKinnon, MEBCO President

Main Submissions Page

The expert voice of multi-employer benefit interests in Canada.

Join Today!