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Pensions Division |
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Objectives of The Pension Benefits Act, 1992 |
The objectives of The
Pension Benefits Act, 1992 are:
- to safeguard accrued pensions from undue loss
- to ensure the equitable treatment of plan members.
Notwithstanding our efforts to safeguard accrued pensions,
pensions are not guaranteed. If the employer funding a plan is insolvent and the plan has
insufficient assets to pay benefits, the only recourse is to reduce benefits.
"Equitable treatment" refers to a reasonable
expectation that the pensions accruing to plan members will not be lost due to death,
disability, termination of employment or retirement. For instance, vesting rules ensure
that most plan members that terminate employment receive a pension. Ensuring equitable
treatment should not be confused with being an advocate for employees or bargaining on
their behalf. The nature and generosity of a pension plan are established by an employer
or by collective bargaining.
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