The Board of Trustees of the City of Saint John Employee Pension Plan (the Trustees) commenced an action against John Ferguson, a member of the Common Council of the City of Saint John, for defamation based upon certain comments Mr. Ferguson made at both council meetings and in a newspaper article. At issue in two… Continue Reading
Category Archives: Canada Pensions & Benefits Law
Subscribe to Canada Pensions & Benefits Law RSS FeedEmployees Entitled to Pension Loss Due to Employer’s Failure to Provide Reasonable Notice of Termination Following Sale
Posted in Canada Pensions & Benefits Law, Sale of BusinessThe Kerfoot v. Weyerhaeuser Company Limited case deals with wrongful dismissal damage claims for the loss of pension and savings benefits by two former non-union managerial employees of Weyerhaeuser Company Limited (the Company) when their employment with the Company was terminated by the 2007 sale of a pulp mill to Domtar. The case offers an… Continue Reading
Pension Plan Restructuring (Part III) – Plan Conversions
Posted in Canada Pensions & Benefits Law, Plan ConversionsThis is the third post in my series on pension plan restructuring (for prior posts see April 12, 2012 and June 8, 2012). In this post, I will examine the basics of converting your defined benefit (DB) plan to a defined contribution (DC) plan. To avoid the uncertainty inherent in the funding of a DB… Continue Reading
Pension Plan Restructuring (Part II) – Defined Benefit Plan Wind Up
Posted in Canada Pensions & Benefits Law, Plan Wind-UpsIn an earlier post, I provided an overview of the different ways that some plan sponsors are looking to exit the defined benefit (DB) world. In this post I consider the most drastic and complete way to “restructure” a DB plan – through a pension plan wind up. There are pros and cons to a… Continue Reading
FSCO Instructions for MEPPs & JSPPs Looking to Opt Out of Grow-In Benefits Now
Posted in Canada Pensions & Benefits Law, Pension Reform, Public Sector PlansThe Financial Services Commission of Ontario (FSCO) has posted information for jointly sponsored pension plans (JSPPs) and multi-employer pension plans (MEPPs) which are planning to opt out of the new grow-in benefit regime. Of particular note, these plans may file notice of their election with the Superintendent of Financial Services before July 1, 2012, though… Continue Reading
Osler Makes Submission on Draft Pension Regulations
Posted in Canada Pensions & Benefits Law, Plan Wind-UpsOsler made a submission to the Ontario Ministry of Finance in response to its draft regulations regarding grow-in benefits and the Superintendent’s authority to order a pension plan wind up. We understand that the draft regulations were intended to address the following issues: specific circumstances in which an employer-initiated termination of employment would, and would… Continue Reading
Ontario Releases More Draft Pension Regulations: Disclosure Requirements
Posted in Canada Pensions & Benefits Law, Legislation & Regulations, Pension Reform, Plan AdministrationLate last week, the Ontario government released another round of draft regulations. This time the focus is on disclosure of plan related documents to plan members, former members, retired members, and their spouses, as well as other specified persons. They include amendments with respect to the following: plan records to be made available on request… Continue Reading
British Columbia Bill 38 Includes Some Novel Pension Reforms
Posted in Canada Pensions & Benefits Law, DB Plan Funding, Innovation & Plan Design, Legislation & Regulations, Pension ReformOn April 30, 2012, British Columbia introduced Bill 38, Pension Benefits Standards Act, for first reading. If passed, the current British Columbia Pension Benefits Standards Act (PBSA) would be repealed and replaced in its entirety by Bill 38. Bill 38 marks the first significant amendments to British Columbia’s pension regime since the Joint Expert Panel… Continue Reading
Federal Budget Bill Includes Changes for LTD Plans Sponsored by Federally-Regulated Employers
Posted in Benefit Plans, Canada Pensions & Benefits Law, Legislation & RegulationsThe federal government followed up on its Budget announcement earlier this year by introducing Bill C-38, Jobs, Growth and Long-term Prosperity Act, for first reading. While much discussion of the Budget has focussed on proposed changes to Old Age Security (OAS) and Guaranteed Income Supplement – gradually increasing the age of eligibility from 65 to… Continue Reading
Ontario Releases Long-Awaited Draft Pension Regulations
Posted in Canada Pensions & Benefits Law, Legislation & Regulations, Pension Reform, Plan Wind-Ups, Public Sector Plans, SurplusAlmost two years after passing its initial amendments to the Ontario Pension Benefits Act (the PBA) in Bill 236 and Bill 120, the Ontario government has released the first round of regulations required to implement its pension reform agenda. The regulations, which are in draft form and subject to public consultation, address a number of… Continue Reading
Ontario Government Announces Consultation with Public Sector Plans
Posted in Canada Pensions & Benefits Law, DB Plan Funding, Public Sector PlansFollowing up on its 2012 budget, the Ontario government announced that it will begin consultations on a new legislative framework for jointly sponsored public sector pension plans (JSPPs). As the government indicated previously, their focus is to make public sector pension plans "more sustainable for members and more affordable for taxpayers.” In addition, the Ontario… Continue Reading
Pension Plan Restructuring (Part I)
Posted in Canada Pensions & Benefits Law, DB Plan Funding, Plan Conversions, Plan Wind-UpsThese days, many plan sponsors are looking to exit the defined benefit (DB) world – largely for the following reasons: they want to cut benefit funding and administration costs, as market volatility and low interest rates drive up solvency deficits and make planning more difficult; to achieve better planning and budgeting by making pension liabilities… Continue Reading
Ontario Budget Bill 55: PBA Amendments
Posted in Canada Pensions & Benefits Law, Legislation & Regulations, Pension ReformOn March 27, 2012, the Ontario government introduced Bill 55, Strong Action for Ontario Act (Budget Measures), 2012, for first reading. Schedule 53 of Bill 55 sets out a number of amendments to the Ontario Pension Benefits Act (PBA) which relate to previous amendments that have not yet come into force, including amendments: clarifying entitlement… Continue Reading
Ontario Budget: Implications for Private and Public Sector Pensions
Posted in Canada Pensions & Benefits Law, DB Plan Funding, Innovation & Plan Design, Legislation & Regulations, Pension Reform, Plan Administration, Public Sector PlansThe Ontario government’s 2012 Budget, released yesterday, includes a number of announcements which will be of interest to administrators of both private and public sector pension plans. Some Good News for Private Sector Employers The government recognized that as a result of ongoing market volatility and low interest rates many private sector defined benefit plans… Continue Reading
FSCO to Make Electronic Filing Mandatory
Posted in Canada Pensions & Benefits Law, Plan Administration, Regulator Policies & CommunicationsIn March of 2010, the Financial Services Commission of Ontario (FSCO) launched its Pension Services Portal (PSP), which enables plan administrators to file Annual Information Returns, Investment Information Summaries, Pension Benefits Guarantee Fund Assessment Certificates, Pension Plan/Fund Financial Statements, Actuarial Information Summaries, and Actuarial Valuation Reports electronically. Last week, FSCO announced that effective January 1, 2013 all of these… Continue Reading
Quebec Budget Considers Voluntary Retirement Savings Plans
Posted in Canada Pensions & Benefits Law, Innovation & Plan DesignOn March 20th, the Quebec government introduced its 2012-2013 Budget. The Budget included a section on “Retirement”, which notes the “insufficient savings” of some Quebec workers and, in response, proposes the implementation of Voluntary Retirement Savings Plans (VRSPs).
Timminco Limited: CCAA Court Considers Fiduciary Obligations Post-Indalex
Posted in Bankruptcy, Canada Pensions & Benefits Law, DB Plan FundingTimminco Limited is among the first reported cases to be released following the Ontario Court of Appeal’s April 7, 2011 decision in Re Indalex. There are two Timminco decisions – Timminco 1 and Timminco 2. Indalex Recap Recall, that in Indalex, contrary to widely accepted principles governing pensions under the Companies’ Creditors Arrangement Act (the… Continue Reading
OSFI Provides More Guidance re Letters of Credit
Posted in Canada Pensions & Benefits Law, DB Plan Funding, Pension Reform, Regulator Policies & CommunicationsOver the past two years we have seen a number of amendments to federal pension legislation with respect to the funding of defined benefit (DB) plans (see April 1, 2010 and December 17, 2010 posts). These reforms include amendments permitting plan sponsors to use letters of credit in lieu of making solvency payments to a… Continue Reading
Orpin v. Littlechild: Will Revokes Insurance Policy Beneficiary Designation
Posted in Canada Pensions & Benefits Law, Plan AdministrationThe cases of Richardson Estate v. Mew and Tower Estate v. Tower Estate considered whether a provision in a separation agreement can revoke a prior beneficiary designation. In Orpin v. Littlechild, at issue was a provision included in the will of the deceased, and whether it had the effect of revoking a prior beneficiary designation… Continue Reading
Member Entitled to Deferred Pension Notwithstanding Earlier Payment of Small Pension
Posted in Canada Pensions & Benefits Law, Plan Wind-UpsShortly (eight days) after a series of transactions under which Imasco Inc.’s Shoppers Drug Mart business was transferred to Shoppers Drug Mart Inc. (Shoppers) and then sold (share sale) to institutional investors, Mr. Boys’ employment with Shoppers was terminated. As part of the transactions, Boys’ retained his accrued seventeen year pension under the Imasco pension… Continue Reading
Federal Government Releases Draft PRPP Tax Rules For Consultation
Posted in Canada Pensions & Benefits Law, Innovation & Plan DesignFollowing its introduction of Bill C-25 on November 17, 2011 (see my prior blog post), the federal government released for consultation a package of draft legislative proposals under the Income Tax Act to accommodate the creation of Pooled Registered Pension Plans (PRPPs) within the basic system of rules and limits currently applicable to registered pension… Continue Reading
Proposed Amendments to Nova Scotia Pension Benefits Act Largely Mirror Ontario’s Recent Reforms
Posted in Canada Pensions & Benefits Law, Pension ReformOn November 15, 2011 Nova Scotia introduced Bill 96, An Act Respecting Pension Benefits, for first reading. If passed, the current Nova Scotia Pension Benefits Act would be repealed and replaced in its entirety by Bill 96.
Supreme Court Of Canada To Hear Indalex Appeal
Posted in Bankruptcy, Canada Pensions & Benefits Law, DB Plan FundingThe Supreme Court of Canada has granted leave to appeal the decision of the Ontario Court of Appeal in Re Indalex. In its April 2011 ruling, the Court of Appeal held that the entire amount an employer is required to contribute to fund a pension plan wind-up deficiency under the Ontario Pension Benefits Act (PBA)… Continue Reading
Quebec Announces Extension of Solvency Funding Relief for DB Plans
Posted in Bankruptcy, Canada Pensions & Benefits Law, DB Plan Funding, Pension ReformBack in 2009, the Quebec government adopted measures to alleviate the effects of the 2008 financial crisis on the funding of defined benefit (DB) plans. These measures allowed an employer to instruct a plan’s pension committee to implement one or more of the following measures for the first complete actuarial valuation dated after December 30,… Continue Reading