To address concerns about pension coverage in Canada, the federal government introduced the concept of the pooled registered pension plan (PRPP) in late 2011 through Bill C-25, the Pooled Registered Pension Plan Act (PRPP Act). The PRPP is intended to provide a “low cost” and accessible retirement savings vehicle for Canadians who do not currently… Continue Reading
Category Archives: Innovation & Plan Design
Subscribe to Innovation & Plan Design RSS FeedOntario Budget 2013 – More Pension Reform to Come
Posted in Canada Pensions & Benefits Law, Family Law Issues, Innovation & Plan Design, Legislation & Regulations, Pension Reform, Public Sector PlansIn today’s budget, the Ontario government announced that it is continuing with its pension reform agenda, but it is not all “old news”. Perhaps of most interest to employers and plan administrators will be the government’s intention to review the implications of the recent Carrigan case and its expanded interest in alternative plan designs.
De-Risking On Trial? U.S. Verizon Litigation Still Active
Posted in Innovation & Plan Design, U.S. Pensions & Benefits LawIn our March 13 webinar on de-risking defined benefit pension plans, I stated that the U.S. litigation launched by a group of Verizon retirees challenging the annuitization of their pensions was not dead, even though a federal district court refused to stop the purchase of annuities from Prudential, and the annuities were purchased in 2012…. Continue Reading
De-Risking U.S. Pensions Through Lump Sum Offers – What’s on the Front Burner for 2013?
Posted in Innovation & Plan Design, U.S. Pensions & Benefits LawDoes your defined benefit plan have a lump sum option? Nearly forty percent of U.S. employers who sponsor defined benefit pension plans are at least “somewhat likely” to offer lump sums to retirees and vested terminated participants in 2013, according to an Aon Hewitt survey released earlier this month. It is safe to say that… Continue Reading
Quebec Budget Forecasts Further Pension Reform
Posted in Canada Pensions & Benefits Law, Innovation & Plan Design, Pension ReformLast month, the Quebec government posted its budget for 2012-2013, which included a number of pension-related items. Expert Committee: The committee tasked with studying Québec’s retirement system, chaired by Alban D’Amours, is expected to table its report in early 2013. The recommendations of the Expert Committee will likely lead to a round of pension reform… Continue Reading
Alberta Introduces New Pension Legislation
Posted in Canada Pensions & Benefits Law, DB Plan Funding, Innovation & Plan Design, Legislation & Regulations, Pension ReformAlmost four years after the Joint Expert Panel on Pension Standards (JEPPS) submitted its final report with recommendations to fundamentally reform Alberta and British Columbia’s pension systems, the Alberta government has introduced Bill 10, Employment Pension Plans Act. Similar to B.C.’s Bill 38, which was passed earlier this year, Bill 10, if passed, will replace… 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
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
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).
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
Federal Government Introduces Pooled Registered Pension Plans Legislation
Posted in Canada Pensions & Benefits Law, Innovation & Plan DesignFollowing up on the consultation paper it released last December, the federal government introduced Bill C-25: the Pooled Registered Pension Plans Act (Bill C-25) yesterday. Bill C-25 sets out a legal framework for the establishment and administration of pooled registered pension plans (PRPP).