Ontario: draft regulations on MEPP asset transfers
On February 2, 2016, the Ontario Ministry of Finance released draft regulations to facilitate asset transfers between multi-employer pension plans ("MEPPs"). Asset transfers between MEPPs are currently prohibited. The amendments would allow the existing rules that apply to single employer pension plans to apply also to MEPPs.
By merging, some smaller MEPPs may benefit from the economies of scale that a larger plan may have, such as access to a larger pool of assets for investment purposes and the potential for reduced administrative costs.
Comments on the draft regulations are due by March 21, 2016.