Memorandum Of Reciprocal Agreement Pension

According to Statistics Canada, Canada has nearly 3,000 registered pension plans with members in more than one province – hence the need for a national framework for coordinating pension management in a country with 10 different minimum standards. The 2020 agreement provides that certain provisions of the lead authority`s legislation apply to the pension plan with multiple jurisdictions, instead of the requirements of the legislation of small authorities. For more information, see question 3. The first attempt at revision was the 2011 MJPPs Agreement, established by the Canadian Association of Resident Supervisory Authorities. It has established detailed rules for the definition of the main authorities and transitional rules when the diversity of active members is shifted. A mandatory list of subjects for which the legislation of the lead authority has been applied throughout the plan and, by default, of matters regulated by the legislation of the subordinate authority or authorities has also been established. Unfortunately, it was only signed by Ontario and Quebec, so the 1968 agreements continued to govern the other legal services. Role of the PBGF With the signing of the agreement, Ontario finally accepted a ”final location” approach to determining the benefit entitlements of a member who has a jurisdiction service during their career. However, the agreement provides that the Ontario Benefits Guarantee Pension Fund (PBGF) continues to apply only to benefits accrued during employment in Ontario. The administrator of a pension plan submitted to the PBGF must therefore continue to keep records of all periods of service of members in Ontario to assist a potential application by the PBGF to terminate the plan. Employers who have employees in multiple legal departments often have a single plan registered in Canada – an MJPP – for the entire workforce or a large segment of it.

Given the legislative patchwork in the provinces, each MJPP should meet and register minimum standards for pension benefits in all applicable jurisdictions, on a member basis, without any particular relief. This would also apply to planning operations of a collective nature, such as. B the financing of the plan or the investment of defined benefit funds. . . .