The Pension Commission of Manitoba has reviewed the province’s pension laws in an initiative to update and strengthen the existing pension system, Finance Minister Cameron Friesen announced today.
“We know how important it is for Manitobans to have secure income and certainty in their retirement,” said Friesen. “We look forward to receiving feedback on the proposed reforms, with a view toward improving pension benefits and building a stronger financial future for Manitobans.”
The Pension Commission is required to complete a statutory review of The Pension Benefits Act (PBA) every five years, and report its findings and recommendations to the minister. The latest review focused on new plan designs, solvency deficiency funding rules, locking-in provisions and access to locked-in pension funds, compulsory pension plan membership, division of pensions on relationship breakdown, clarification and legislative gaps.
Highlights of the commission’s recommendations include:
- introducing a target benefit or shared risk plan framework for defined benefit pension plans as another option to encourage defined benefit pension plans;
- introducing a new funding regime based on enhanced going concern funding and a lower solvency funding threshold of 85 per cent; and
- allowing greater flexibility for individuals to access locked-in pension funds due to financial hardship.
An online public consultation on the recommendations in the commission’s report will occur over a six-week period, the minister said. For more information on the review and consultation visit www.gov.mb.ca/labour/pension.