Small pension payout threshold to double from $1,500 to $3,000 under Ontario pension rules

Plain-language summary · AI-assisted

Ontario's General Regulation under the Pension Benefits Act is being amended to double the dollar threshold used wherever the $1,500 figure appears, replacing it with $3,000. This threshold typically governs when a pension plan administrator can pay out a small benefit as a lump sum rather than keeping it in the plan. Plan administrators and sponsors should review their plan documents and administrative processes to ensure they are ready to apply the higher $3,000 limit when the change takes effect. Members with small pension entitlements near the current threshold may be affected by how and when their benefit is paid out.

Who this affects
pension plan administrators · pension plan sponsors · plan members with small pension entitlements · pension plan trustees