Ontario Proposes to Require PBGF Claim Exposure Reporting as Part of 2021 Budget

In its 2021 budget, released on March 24, the Ontario Government announced that it will amend Regulation 909 under the Pension Benefits Act (the “PBA”), to require pension plan administrators to calculate and report their plan’s Pension Benefits Guarantee Fund (“PBGF”) claim exposure.  The Budget does not specify how a plan’s PBGF claim exposure will be determined and reported, or the frequency with which such reports will be required to be filed.

The proposed amendment is the result of a review of the PBGF by the Ontario Government (which is required under the PBA), which found that more data is necessary to estimate the PBGF’s exposure to future claims and determine the appropriate level of PBGF funding required of plan sponsors.