Ontario proposing increase to PBGF’s monthly guarantee limit, cost reductions for pension plan administrators |
In its 2026 budget on Thursday, the Ontario government proposed doubling the pension benefits guarantee fund’s monthly guarantee limit from $1,500 to $3,000 for all eligible plan beneficiaries, the largest increase since the PBGF was created in 1980.
It cited a recent review of the PBGF that found the fund had $1.3 billion in net assets as of March 31, 2025. The change is proposed to be effective on or after March 26, 2026.
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“The 2026 review shows a decline in membership and the number of plans as [defined benefit single-employer pension plans] continue to close. In addition, plans are ageing and include a growing proportion of retirees, who are the most vulnerable to a potential employer insolvency. . . . However, the PBGF is in a financially strong position, which can be leveraged........