Bill 34 explained in plain English
MPP Pension and Compensation Act, 2025
Ontario legislature bill summary, status, timeline, sponsor, votes, and official sources.
At a glance
Official Legislative Assembly of Ontario snapshot for 44th Parliament, 1st Session. Representative vote breakdowns appear when the Assembly publishes an Ayes and Nays page for the bill.
Our plain-language take, written for civic education.
Source: By PoliticalData.ca
Bill 34 removes a salary cap on Ontario MPPs that has been in effect since 2009, increases the salary for the Government House Leader, ends the existing MPP pension plan, makes MPPs members of the Public Service Pension Plan, and allows the government to establish a supplemental pension plan for MPPs.
Bill 34 makes significant changes to how Ontario members of provincial parliament (MPPs) are paid and pensioned. First, it removes a 16-year-old rule that had frozen MPP salaries at the level they were in 2009. This allows MPP salaries to increase beyond that frozen level. It also gives the Government House Leader a salary increase of 19.2 per cent. Second, it ends the current pension plan for MPPs and moves them into the Public Service Pension Plan (the same plan used for Ontario public servants). This is effective January 1, 2026. Third, it allows the Lieutenant Governor in Council (the provincial cabinet) to establish a supplemental (additional) pension plan specifically for MPPs on top of the Public Service Pension Plan. When first set up, this supplemental plan will follow specific rules laid out in the bill, including: - Benefits vest (become permanent) after 6 years of service - MPPs must be at least 55 years old to receive a pension - The pension is calculated at 3 per cent per year of service (up to 35 years maximum) - Pensions are reduced at age 65 and if taken before age 65 - Pensions are adjusted for inflation - MPPs do not have to contribute to this supplemental plan Any changes to the supplemental plan after it is created require approval from the Board of Internal Economy (an MPP oversight body). The bill also allows the government to provide allowances to any MPP who is not eligible for either the Public Service Pension Plan or the supplemental plan. MPPs who were in the old pension plan will have their account balances handled through transition options, including purchasing a pension, transferring to a locked-in retirement account, or transferring to the Public Service Pension Plan to buy service credit. Most changes take effect January 1, 2026, but the salary changes are deemed to have taken effect on February 27, 2025.
- Repeals subsection 61(1.2) of the Legislative Assembly Act, which had limited MPP salaries to the amount in effect on March 26, 2009, allowing salaries to increase beyond that frozen level
- Amends subsection 62(1) of the Legislative Assembly Act to provide a 19.2 per cent salary increase for the Government House Leader
- Adds an exception to section 63 of the Legislative Assembly Act so that pensions received under a supplemental MPP pension plan are not affected by that section
- Amends the MPPs Pension Act, 1996 to change the definition of 'member' to exclude Part XI (the new pension provisions) and Schedule 1
- Deems the Information and Privacy Commissioner and the Ombudsman to be members of the Assembly for pension purposes (except Part XI and Schedule 1)
- Terminates all memberships in the existing pension plan continued under the MPPs Pension Act, 1996
- Repeals the former subsections 4(1) and (2) of the MPPs Pension Act, 1996
- Makes members of the Legislative Assembly members of the Public Service Pension Plan continued under the Public Service Pension Act
- Provides special vesting rules for members of the 44th Parliament: benefits vest on the day Parliament is dissolved (if still a member) or on the day of death if they have at least 6 years of service
- Allows the Lieutenant Governor in Council to establish a supplemental pension plan for MPPs with specified initial terms, including vesting, eligibility, benefit calculation, and inflation adjustment rules
- Requires Board of Internal Economy consent for changes to the supplemental plan after it is established, except for changes required by federal tax law or other law
- Allows the government to pay allowances to MPPs who are not eligible for the Public Service Pension Plan or a supplemental plan
- Provides transition options for individuals who cease to be members of the old pension plan: purchasing a pension, transferring to a locked-in retirement account or life income fund, transferring to another registered pension plan, or transferring to the Public Service Pension Fund
- Requires the Speaker to provide statements to former members of the old pension plan by February 1, 2026, explaining their transition options
- Allows the Lieutenant Governor in Council to make regulations for implementation, and allows the Minister of Finance to make regulations regarding deadlines for transition options
- All current and future members of the Ontario Legislative Assembly (MPPs)
- The Government House Leader (receives 19.2 per cent salary increase)
- Members of the 44th Parliament (have special pension vesting rules)
- All individuals who were members of the existing MPP pension plan under the MPPs Pension Act, 1996 (their memberships are terminated and they receive transition options)
- The Information and Privacy Commissioner (deemed to be a member of the Assembly for pension purposes)
- The Ombudsman (deemed to be a member of the Assembly for pension purposes)
- The Board of Internal Economy (must consent to certain changes to supplemental pension plans)
- The Speaker of the Ontario Legislative Assembly (required to provide transition statements to former plan members)
- The Ontario Government (responsible for funding all employer contributions through the Consolidated Revenue Fund)
- All MPPs automatically become members of the Public Service Pension Plan as of January 1, 2026
- Members of the 44th Parliament have the right to pension benefits that vest when the 44th Parliament is dissolved (if they are still members and have at least 6 years of service) or on death (if still a member with at least 6 years of service)
- MPPs have the right to participate in a supplemental pension plan if one is established by the Lieutenant Governor in Council
- MPPs are not required to contribute to any supplemental pension plan established under the act
- Former members of the old pension plan have the right to choose how their registered plan account balance is used: purchase a pension, transfer to a locked-in retirement account or life income fund, transfer to another pension plan, or transfer to the Public Service Pension Fund
- The Speaker must provide each affected individual with a statement of their registered plan account balance and their transition options by February 1, 2026
- The Board of Internal Economy has the right to approve or deny changes to pension benefits, ancillary benefits, or contribution rates of any supplemental pension plan after it is established (except for changes required by law)
- The government must pay all employer contributions for MPP pensions from the Consolidated Revenue Fund
- February 27, 2025: Sections 1 and 2 (salary-related provisions) are deemed to have come into force
- January 1, 2026: All other provisions of the Act come into force, including the shift to the Public Service Pension Plan and the end of the old MPP pension plan
- On or before February 1, 2026: The Speaker must provide each affected individual with a statement of their registered plan account balance and transition options
- MPP salaries are no longer capped at 2009 levels, potentially resulting in salary increases
- The Government House Leader receives a 19.2 per cent salary increase
- All employer contributions to the Public Service Pension Plan for MPPs are charged to the Consolidated Revenue Fund
- All amounts payable to an MPP supplemental pension plan are charged to the Consolidated Revenue Fund
- Amounts paid as allowances to ineligible MPPs are charged to the Consolidated Revenue Fund
- Allowances paid to MPPs are not considered part of their 'salary' for purposes of the Legislative Assembly Act or the Public Sector Salary Disclosure Act, 1996, potentially affecting how compensation is publicly reported
- The bill text does not specify enforcement mechanisms or penalties for violations
- The bill does not specify what salary level MPPs will actually receive after the 2009 cap is removed; this will be determined by other means
- The bill does not specify when or if a supplemental pension plan will actually be established; it only gives the government the power to establish one
- The specific terms of the supplemental pension plan after initial establishment are not detailed in the bill; the bill only outlines initial terms in Schedule 1 and provides that changes require Board of Internal Economy consent
- The bill does not specify which MPPs will be ineligible for the Public Service Pension Plan or supplemental plans, or what allowances might be provided to them
- The bill does not specify the deadlines for transition options regarding registered plan account balances; it states these will be determined by regulation
- The bill does not specify how the Public Service Pension Plan will treat MPP service credit or how prior service can be purchased
- The amendment to section 1(5.1) of the MPPs Pension Act deems the Information and Privacy Commissioner and Ombudsman to be members for most purposes, but excludes Part XI and Schedule 1; the practical effect of this is unclear
Removes the rule that capped MPP salaries at the level they were on March 26, 2009, allowing MPP salaries to increase
Adds a 19.2 per cent salary increase for the Government House Leader
Adds an exception so that pensions received under a supplemental pension plan established under the MPPs Pension Act are not subject to the restrictions in subsection (1)
Changes the scope of who is considered a 'member' to exclude Part XI (new MPP supplemental pension rules) and Schedule 1
Adds a new provision deeming the Information and Privacy Commissioner and Ombudsman to be members of the Assembly for pension purposes (except Part XI and Schedule 1)
Terminates all memberships in the existing pension plan; every member ceases to be a member
Removes former provisions related to the old pension plan
Excludes Part XI deadlines and supplemental pension plan deadlines from the deadline extension rules
Replaces the old provisions with new Part XI that establishes MPP participation in the Public Service Pension Plan, special vesting rules for 44th Parliament members, and authority to establish supplemental pension plans
MPPs are now members of the Public Service Pension Plan continued under this Act; all employer contributions are charged to the Consolidated Revenue Fund
Generated using AI from official bill text. Not legal advice. It is written by PoliticalData.ca for civic education, automatically checked and spot-reviewed before publishing.
Official textProcess Snapshot
Vote Summary
This bill does not have a published recorded division in the current official sources, so representative-by-representative vote counts are not shown.
No published representative vote breakdown
The current official sources do not publish a recorded division breakdown for this bill, so there is no representative-by-representative table to show.
Official sources
Status, sponsor, votes, and timeline on this page are drawn from these official legislative sources and public records. Each summary above is attributed to its own source.
How this data is sourced