Dynamics of Pension Reform: The Case of Ontario: ABSTRACT

Following a decade of pension debate, in order to improve the effectiveness of employment pension plans, the Ontario Government has recently formulated a number of policy initiatives as potential amendments to the Pension Benefits Act of l965. In this paper the authors undertake a comparative analysis of pension benefits and pension costs associated with these initiatives, as they are added to the "reform package" sequentially, under a number of representative scenarios. Two different modes of analysis are used: (1) a "steady state" analysis of comparing pension benefits and pension costs before the introduction of a reform package with those benefits and costs after the reform package has fully impacted, and (2) a "dynamic" analysis of describing the evolution of pension benefits and costs as the reform package takes effect.