Bill 34, MPP Pension and Compensation Act, 2025
Chamber
ontario
Stage
Introduced
This Ontario bill changes MPP salaries, ends their existing pension plan, and moves them into the Public Service Pension Plan with a new supplemental plan.
Key Changes
- Removes the 2009 salary freeze for MPPs, allowing their salaries to rise again
- Adds a 19.2% salary supplement for the Government House Leader
- Closes the existing MPP-only pension plan and ends membership for all current members
- Enrolls all MPPs in the Public Service Pension Plan used by Ontario government employees
- Allows the cabinet to create a new MPP supplemental pension plan with a 3% annual benefit accrual rate, minimum retirement age of 55, and six-year vesting period
- Provides transition options for MPPs to move their existing pension account balances to the new plan, a locked-in retirement account, or another registered pension plan
Gotchas
- The salary freeze removal is deemed retroactive to February 27, 2025, meaning MPPs could receive back pay for the period before the bill received Royal Assent.
- MPPs in the 44th Parliament have special vesting rules: their Public Service Pension Plan benefits vest automatically when the 44th Parliament is dissolved, rather than requiring the standard vesting period under the Pension Benefits Act.
- The supplemental pension plan is established by cabinet order, not directly by the legislature, though future changes to benefits or contribution rates require consent from the Board of Internal Economy.
- Allowances paid to MPPs ineligible for the pension plans are excluded from the definition of 'salary' under both the Legislative Assembly Act and the Public Sector Salary Disclosure Act, meaning they would not appear on the annual public sunshine list.
- MPPs are not required to make personal contributions to the supplemental pension plan — it is entirely employer-funded from the Consolidated Revenue Fund.
- If an MPP does not choose what to do with their old pension account balance by the specified deadline, the default is that the balance is used to purchase a pension under the existing rules.
Who's Affected
- Current and future Ontario MPPs
- The Government House Leader (receives a specific salary increase)
- Former MPPs with balances in the old pension plan
- Ontario taxpayers (employer pension contributions come from the Consolidated Revenue Fund)
- The Board of Internal Economy (must consent to future changes to MPP supplemental pension benefits)
Vibes
0 responses
Gotchas
- The salary freeze removal is deemed retroactive to February 27, 2025, meaning MPPs could receive back pay for the period before the bill received Royal Assent.
- MPPs in the 44th Parliament have special vesting rules: their Public Service Pension Plan benefits vest automatically when the 44th Parliament is dissolved, rather than requiring the standard vesting period under the Pension Benefits Act.
- The supplemental pension plan is established by cabinet order, not directly by the legislature, though future changes to benefits or contribution rates require consent from the Board of Internal Economy.
- Allowances paid to MPPs ineligible for the pension plans are excluded from the definition of 'salary' under both the Legislative Assembly Act and the Public Sector Salary Disclosure Act, meaning they would not appear on the annual public sunshine list.
- MPPs are not required to make personal contributions to the supplemental pension plan — it is entirely employer-funded from the Consolidated Revenue Fund.
- If an MPP does not choose what to do with their old pension account balance by the specified deadline, the default is that the balance is used to purchase a pension under the existing rules.
Summary
Bill 34, the MPP Pension and Compensation Act, 2025, makes two major changes for Ontario Members of Provincial Parliament (MPPs). First, it removes a salary freeze that had been in place since 2009, allowing MPP salaries to increase again. It also adds a salary increase for the Government House Leader. Second, it closes the existing MPP-only pension plan and moves all MPPs into the same Public Service Pension Plan that Ontario government employees use, starting January 1, 2026. In addition to joining the Public Service Pension Plan, the bill allows the provincial cabinet (Lieutenant Governor in Council) to create a new supplemental pension plan specifically for MPPs. This top-up plan would provide additional pension benefits beyond what the base public service plan offers. The initial terms of this supplemental plan are written into the bill itself, including a 3% annual benefit accrual rate, a minimum retirement age of 55, and a six-year vesting requirement. The bill was introduced by the Minister of Finance and affects all current and future Ontario MPPs. It provides transition rules for MPPs who had money in the old pension plan, giving them options for where to move those funds. The bill received Royal Assent and became law as Chapter 2 of the Statutes of Ontario, 2025.
Automatically generated from bill text using Claude
Vibes
0 responses