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.