An Eckler Special Notice reports that the Financial Services Commission of Ontario (FSCO) has registered an amendment to an Ontario-registered multi-employer pension plan allowing it to reduce payouts to members who terminate and withdraw their pension benefits when the plan is under-funded. The reduction is permanent, with no requirement to pay the balance at a later date, thereby protecting the financial health of the plan for active and retired members.
The amendment, which was filed by Eckler on behalf of a large multi-employer pension plan, initially prompted FSCO to issue a notice of proposal to refuse registration. However, following meetings with Eckler and the plan’s legal counsel, the regulator was satisfied that the change complies fully with the provincial Pension Benefits Act. This is the first change of its kind to be registered in Ontario…..Read More