Ontario Economic Outlook and Fiscal Review 2026: Pension Highlights
November 12, 2026
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On October 29, 2026, the Ontario government released its 2026 Ontario Economic Outlook and Fiscal Review, titled A Plan to Protect Ontario (the “2026 Fall Economic Outlook”). Budget legislation, Bill 143, Plan to Protect Ontario Act (Budget Measures), 2026 (No. 2) (“Bill 143”), was introduced into the legislature on the same day. Below is a summary of the pension related updates.
Expanding the Framework for Converting DC Plans to Jointly Sponsored Pension Plans
A framework to enable the conversion of single employer pension plans (“SEPPs”) that provide defined contribution (“DC”) benefits to jointly sponsored pension plans (“JSPPs”) was first introduced in the 2025 Fall Economic Outlook, as discussed in our earlier article: Ontario Economic Outlook and Fiscal Review 2025: Modernizing Ontario’s Pension Sector. Technical amendments to the DC conversion framework were made in Bill 97, Plan to Protect Ontario Act (Budget Measures), 2026 which was introduced earlier this year in connection with the 2026 Ontario Budget.
The 2026 Fall Economic Outlook notes that the government has consulted extensively with stakeholders and is moving forward with the DC to JSPP conversion framework, with a targeted effective date of January 1, 2027.
In response to feedback received during the consultations, Bill 143 amends sections 80.5 and 101.4 of the Pension Benefits Act (Ontario) (“PBA”), which are the not-yet-in-force provisions that would enable the DC to JSPP conversion framework. In particular, section 101.4 of the PBA addresses individual transfers of DC assets to a JSPP where an employer that sponsors a SEPP providing DC benefits becomes a participating employer in a JSPP. As currently drafted, section 101.4 applies only where the employer stops contributing to the DC component of the SEPP for all of its members. If passed, Bill 143 would broaden section 101.4 so that DC assets could also be transferred to a JSPP where the employer stops contributing to the DC component of a SEPP in respect of only a class of employees.
Notably, the 2026 Fall Economic Outlook does not address developments on the draft regulations supporting the DC to JSPP conversion framework, which were published for consultation earlier this year.
Ontario Municipal Employees Retirement System (“OMERS”) Governance Review
The 2026 Fall Economic Outlook confirms that the government is proceeding with changes to OMERS' governance structure which stem from the 2025 OMERS governance review.
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We will continue to monitor developments as Bill 143 passes through the legislature in the coming weeks. If you have any questions regarding the 2026 Fall Economic Outlook or Bill 143, please do not hesitate to reach out – we’re here to help.
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