Ontario Proposes to Eliminate PBGF Assessments for DB SEPP to JSPP Conversions
October 22, 2026
The Ontario government is proposing regulatory amendments that would eliminate Pension Benefit Guarantee Fund (“PBGF”) assessments for employers who are awaiting regulatory approval to convert a defined benefit single-employer pension plan (“DB SEPP”) into a jointly sponsored pension plan (“JSPP”), as announced in the 2026 Ontario Budget.
As announced in the 2026 Ontario Budget, the Ontario government is exploring measures to support pension plan consolidation into JSPPs. The proposed amendments would allow PBGF assessments and related filing requirements to end after a DB SEPP applies under section 80.4(11) of the Pension Benefits Act (Ontario) to transfer its assets and liabilities to a JSPP.
The proposed exemption is conditional and would apply only if the conversion is ultimately completed. If the conversion does not proceed, the employer would be required to pay any PBGF assessments that would otherwise have been due during the exemption period with interest.
The consultation on the draft regulations is open until November 1, 2026. The proposed changes are targeted to come into force on January 1, 2027.
Click on ‘More information’ below to read the regulatory proposal:
