July 1, 2012 has been proclaimed as the date on which the following legislative provisions, among others, will come into force:
- immediate vesting of pension benefits;
- payment or “unlocking” of small amounts;
- extension of grow-in benefits to all eligible employees whose employment is terminated by the employer on or after July 1, 2012, other than for specified reasons;
- permitting plan administrators to use electronic means to send notices, statements and other records to
- specified persons with the recipient’s consent; and
- elimination of partial plan wind-ups.
These legislative changes will have an impact on the design and administration of your pension plans. We recommend that you review the plan documents and the administration of your pension plans to consider what actions need to be taken to ensure their continued legal compliance and to take advantage of the new provisions.