THE PENSION BENEFITS ACT
The main objective of the Pension Benefits Act is to safeguard employees’ rights to benefits promised under private pension plans. Over the years, the right of employees to obtain information has increased. There is now more protection for the spouse or common-law partner of a contributing member. In addition, employees who leave their jobs have new options regarding transfer of pension credits.
However, a recommendation for immediate vesting may unintentionally cause a reduction in the number of employees eligible for pension benefits, contrary to the overall goal of increasing pension plan enrolment.
Winnipeg Chamber of Commerce Recommendation:
- Do not change to immediate and full vesting of basic pension benefits (retroactive to July 1, 1976) because it will inflate pension plan costs with respect to payouts on termination of employees with less than two years service and it will increase the administrative burden on employers.
Adopted by The Winnipeg Chamber of Commerce board of directors, January 2003