Final Location for Grow-in Benefits - Questions and Answers

Q1: What is FSCO's position on the application of grow-in benefits on wind-up for pension plan members in Ontario - final location or checkerboarding?

A1: FSCO's position is that for plan members who were in Ontario at the time of a full or partial wind up, the final location approach should be applied for their entire service in determining grow-in benefits.

Q2: Why does FSCO take this position?

A2: Grow-in benefits allow pension plan members whose plans have been wound up to become entitled to enhanced early retirement benefits if they have attained a threshold number of points in years of service and age (55 points). The relevant provision of the Pension Benefits Act (PBA) which defines who is eligible for grow-in is subsection 74(1), which states "A member in Ontario of a pension plan whose combination of age plus years of continuous employment or membership in the pension plan equals at least fifty-five, at the effective date of the wind up of the pension plan in whole or in part, has the right to receive..."

The courts interpret words in a statute, including the PBA, in their plain and ordinary meaning within the legislative scheme and context of the statute. FSCO has concluded that the opening words of subsection 74(1), taken on their own and in their plainest meaning, require a final location approach for grow-in benefits for members in Ontario.