Ontario Finance Minister Jim Flaherty today released a consultation paper entitled “Surplus Distribution from Defined Benefit Pension Plans”, designed to find a balance between employers and employees in pension surplus sharing arrangements.

“Recent court decisions have limited the ability of employers and employees to negotiate surplus sharing arrangements. As a result, the legislation that governs the way these arrangements are negotiated in Ontario requires reform,” said Flaherty.

The existing Surplus Regulation was first introduced as a temporary measure to regulate surplus withdrawals from defined benefit pension plans and was last renewed in 2000, pending the development of a more permanent resolution of the issue. Ontario is taking action to ensure that the Pension Benefits Act, 1990 and the Surplus Regulation are consistent, effective, and ensure that both employers, employees and pensioners are treated in an equitable manner in pension sharing arrangements.

John O’Toole, parliamentary assistant to the Minister, who will head up the consultations, said, “I am looking forward to meeting with stakeholders to discuss their vision for defining surplus sharing rules. It is time to finally put in place a solution that would clarify the rules.”

The Ministry of Finance is inviting stakeholders to participate in the consultation by providing comments on the proposed reforms of the surplus distribution provisions in the Pension Benefits Act. The consultation paper can be obtained at the Ontario Government Bookstore or on the Ministry of Finance website at www.gov.on.ca/FIN. Submissions should be forwarded by September 14, 2001, to: John O’Toole, MPP Parliamentary Assistant to the Minister of Finance, Ontario Ministry of Finance, 7 Queen’s Park Crescent, 7th Floor, Toronto, Ontario, M7A 1Y7