The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
The province has introduced proposed changes to the Pension Benefits Act which would strengthen and update the legislation, and give senior Manitobans more options for managing their retirement, Labour and Immigration Minister Nancy Allan announced yesterday. "This bill will provide a range of new options for Manitobans who are at or nearing retirement and allow them more flexibility in developing retirement plans," said Allan. "This will be the first significant pension reform in over 20 years and is also essential to ensuring our seniors have a greater degree of control over their future." The legislation would amend the act to implement pension reform recommendations made by the Pension Commission of Manitoba in March of 2003. The proposed amendments focus on four key areas: clarification of pensions as 'family assets', protection of the 'pension promise' of an income for life, provision of increased flexibility and updated requirements for the governance and management of pension plans. The proposed overhaul of the legislation would address a wide range of issues including: permitting a one-time transfer of up to 50 per cent of the balance in an individual locked-in retirement benefit plan (LIF/LRIF) to a creditor-proof RRIF that is not locked-in, subject to informed spousal consent; providing flexible benefits that pension plans could offer members on an optional basis such as enriched early retirement benefits and cost of living adjustments; making it easier for pension plans to offer ancillary benefits to members such as disability benefits and pre-retirement death benefits; allowing phased-in retirement so that older workers could choose, with their employers' agreement, to receive a benefit while continuing to work part-time instead of having to choose only between full retirement and continuing full time work; requiring committee management of certain pension plans so that active members, retirees and other non-active beneficiaries have representation in the management of their plans; requiring certain joint trustee-managed plans to have representation from non-active members and beneficiaries including retirees; providing active members, retirees and other non-active beneficiaries with a voice in decisions about the disposition of pension plan surpluses; and harmonizing pensions with other jurisdictions. "Manitoba is seeking a greater level of control and flexibility for seniors over their pension funds while ensuring the promise of a lifetime pension income is protected," said Allan. "Our amendments also balance the desire for more flexibility with the need to respect the rights of spouses and protect pension savings against creditors." The Pension Commission report is available on line at www.gov.mb.ca/labour/pension/historical/historicaldocs.html.
