Pension Measures and Economic Advisory Panel Address Market Uncertainty 

     McGuinty Government Taking Action In Challenging Times

     TORONTO, Dec. 16 /CNW/ -

     NEWS

     The McGuinty government is proposing to introduce legislation this spring

to provide pension plans with solvency funding relief - a measure designed to

protect jobs and families during these rapidly changing economic conditions.

     The proposed legislation would allow businesses to spread their solvency

payments over a longer period of time, freeing resources for operations,

including payroll expenses. It would also increase transparency, ensuring that

workers and retirees have clear information about the financial health of

their plans, while protecting benefit security in a number of ways.

     If approved by the legislature, the government's measures would provide

temporary solvency funding relief, through regulations, retroactive to

September 30, 2008. If passed, the eight measures would include:

     -   An extension of solvency amortization periods from five to 10 years

         with the consent of active members or their collective bargaining

         agent and retired plan members

     -   Consolidation of previous funding schedules

     -   Deferral of catch-up payments to provide one year of cash flow relief

     -   Permitting the use of actuarial gains to reduce annual cash payments

         by plan sponsors

     -   Enhanced notice to active and retired plan members

     -   Accelerated funding of benefit improvements

     -   Temporary limitations going-forward on certain contribution holidays

     -   Adoption of the revised Canadian Institute of Actuaries' Standard of

         Practice for Pension Commuted Values for solvency valuations

     Today, the Minster of Finance is also announcing members of an economic

advisory panel from key sectors who have been actively involved in ongoing

discussions regarding the rapidly changing economy. The panel will continue to

offer ideas, analysis and advice in a new forum on ways to strengthen

Ontario's economy.

     The members are: Gordon Cheesbrough, Janet Ecker, Tim Hodgson, David

Leith, Tito Martins, Michael J. Mueller, Lynn Patterson, Jim Stanford and

Douglas Turnbull.

     QUOTES

     "By proposing these changes on pensions, we are protecting Ontario jobs

and bringing an element of stability in a time of great economic uncertainty,"

said Finance Minister Dwight Duncan

(http://www.fin.gov.on.ca/english/about/min.html). "We are proposing action to

strengthen and protect the viability of Ontario's pension system to address

this situation and help ensure that the plans can fulfill their requirements

and meet the needs of their current members and their retirees."

     "I am pleased that Minister Duncan is responding to the current funding

difficulties encountered by Ontario pension plans in the balanced and

transparent spirit of my recent report, A Fine Balance," said Harry Arthurs,

Chair of the Ontario Expert Commission on Pensions.

     QUICK FACTS

     -   Ontario regulates 4,100 of the 11,000 defined benefit pension plans

         in Canada, more than any other jurisdiction.

     -   Solvency requirements for pension plans ensure that they are able to

         pay out benefits as promised if the plan terminates. Plans are also

         required to fund according to going concern rules, and those rules

         will continue to be enforced.