Issue

"Grow-in" is a feature of pension legislation in Ontario and Nova Scotia. Not only are early retirement enhancements provided to terminated members on wind-up, service is credited as if the termination had not occurred. ACPM has opposed grow-in and its effect on solvency valuations and plan wind-ups. In the Model Pension Law proposed by the Canadian Association of Pension Supervisory Authorities (CAPSA), grow-in is not a feature; wind-up issues are covered by enhanced vesting in the plan.

Action to Date

To date, there has been no indication that Ontario will change its position on grow-in, despite efforts by ACPM.

However, the Nova Scotia government reconsidered its position on grow-in. To help with the process, ACPM forwarded a copy of a letter we sent earlier (on May 14, 2004) to the Chair of the province’s Law Amendments Committee. The letter outlines ACPM’s position on grow-in. Plans in Nova Scotia now do not have to fund for grow-in benefits.

Future Action

ACPM will continue to press for the removal of grow-in from pension legislation.

Submissions/Publications

• May 2004 letter to Chair of the Law Amendments Committee, Nova Scotia
• February, 2009 Brief to the Ontario Government on The Report on the Ontario Expert Commission on Pensions
• November 2008 Comments on the Nova Scotia Pension Review Panel October 17, 2008 Position Paper