In its 2026 budget on Thursday, the federal government introduced several amendments to existing pension legislation as well as new laws impacting both defined benefit pension plans and capital accumulation plans.

It proposed amendments to the Pension Benefits Standards Act and the Pooled Registered Pension Plans Act to reduce the burden on federally regulated pension plans by making it easier to use electronic communications and by removing some required communications to spouses and common-law partners.

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The amendments would also allow certain sponsors involved in pooled registered pension plans to set their own contribution rates or amounts and make technical amendments. The government also intends to identify ways to reduce burden and red tape for federally regulated pension plans through a review of the Pension Benefits Standards Regulations and the Pooled Registered Pension Plans Regulations.

The budget also proposed amendments to the Public Service Superannuation Act, the Royal Canadian Mounted Police Superannuation Act and the Canadian Forces Superannuation Act, as well as related regulations, to restore the coordinated pension accrual of two per cent of salary per year of service when combined with the Canada Pension Plan or the Quebec Pension Plan.

The government is also considering merging the core features of registered retirement savings plans and registered retirement income funds under the Income Tax Act into a single ‘RRSP for life’ and to make other changes to modernize the RRSP tax rules. According to the budget, this would eliminate the need for individuals to convert their RRSP to a RRIF at age 71. Individuals over age 71 would still........

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