“Checkerboarding” means applying provincial pension law to a member’s pension service based on the province in which the service was accrued, rather than applying to all service the law of the province in which the member ended his/her plan membership (the “final location” approach). Currently, the “final location” approach is followed by the provincial regulators.
In 2001, the “final location” approach was called into question when Ontario threatened to apply a “checkerboarding” approach. The province eventually backed away from this position, but the issue is not dead and the legislation is not clear.
ACPM opposed the proposed move to a checkerboarding approach. In February 2002, ACPM wrote to Ontario’s Finance Minister expressing our opinion. At that time, ACPM also proposed that “final location” be part of the Model Pension Law – a suggestion that was accepted.
As this issue remains unresolved, ACPM will continue to advocate for clarity and continued acceptance of the “final location” rule until such time as uniform or harmonized pension legislation is introduced.