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: Pension Reform
Subscribe to Pension Reform 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.
Expert Committee Pressing for Pension Reform in Quebec
Posted in Canada Pensions & Benefits Law, DB Plan Funding, Pension ReformBack in the fall of 2011, an expert committee chaired by Alban D’Amours was mandated by the Quebec government to analyze the state of the Quebec retirement income system and to make recommendations on how to improve it in light of the new economic and demographic realities. The Committee released a voluminous report on April… 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
Ontario Pension Plans Will be Permitted to Use Letters of Credit
Posted in DB Plan Funding, Pension ReformEffective January 1, 2013, certain Ontario employers will be able to use letters of credit to fund their pension plans’ solvency deficiencies. Provisions permitting letters of credit were added to the Ontario Pension Benefits Act (the PBA) in late 2010 when Bill 120 was passed, but they did not come into force pending the publication… 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
Ontario Pension Reforms Come into Force
Posted in Canada Pensions & Benefits Law, Legislation & Regulations, Pension Reform, Plan Administration, Plan Wind-UpsAs of July 1, 2012, a number of amendments to the Ontario Pension Benefits Act (PBA) and related amendments to the general regulation under the PBA were proclaimed in force. Employers and plan administrators should carefully review their plans and their administrative practices to ensure that they continue to be compliant with the PBA, and… 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
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
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 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
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
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.
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
FSCO Releases Proposed Family Law Forms
Posted in Canada Pensions & Benefits Law, Family Law Issues, Pension Reform, Plan AdministrationIn response to Ontario’s new regime for dividing pensions on marriage breakdown, which permits the former spouse of a plan member to receive an immediate payment of his or her share of the member’s pension and requires plan administrators to calculate the value of the pension, the Financial Services Commission of Ontario (FSCO) has released… Continue Reading
Pension Coverage in Canada: What Does the Future Hold?
Posted in Canada Pensions & Benefits Law, Pension ReformOver the last couple of years, Canadian federal and provincial governments have expressed concern over declining pension coverage. They have responded by appointing expert commissions to study the matter, and by proposing possible solutions such as pooled registered pension plans and modest enhancements to the Canada Pension Plan. These concerns regarding declining pension coverage appear… Continue Reading
New Brunswick Pension Task Force Seeks Submissions
Posted in Canada Pensions & Benefits Law, Pension ReformThe New Brunswick Task Force on Protecting Pensions has released a briefing note, outlining its plan to examine the pension risk management practices and regulatory structures being adopted by other jurisdictions, and to review written submissions “that promote and protect pension coverage”. As I discussed in an earlier blog post, New Brunswick was the fifth… Continue Reading
Ontario Releases Final Regulations re Pension Division on Marriage Breakdown
Posted in Canada Pensions & Benefits Law, Family Law Issues, Legislation & Regulations, Pension Reform, Plan AdministrationOn June 24, 2011, the Ontario government published final regulations governing the division of pensions on marriage breakdown. With the publication of these regulations, which come into force on January 1, 2012, long-awaited reform of the family law provisions of the Ontario Pension Benefits Act appears to be coming to a close.
Pooled Registered Pension Plans – Federal Government Takes Next Step
Posted in Canada Pensions & Benefits Law, Pension ReformThe federal government followed up on its promise in this year’s budget to implement pooled registered pension plans (PRPPs) “as soon as possible”, with the release of a consultation paper (the Paper) that considers the potential tax rules for PRPPs. The Paper seeks feedback on a number of issues, many of which arise as a… Continue Reading
Ontario Makes Changes to Pension Funding Requirements
Posted in Canada Pensions & Benefits Law, DB Plan Funding, Legislation & Regulations, Pension Reform, Public Sector PlansThe Ontario government recently filed regulations under the Pension Benefits Act (the PBA), which implement funding changes for jointly sponsored pension plans (JSPPs) and certain public sector plans, as well as more general changes applicable to all defined benefit (DB) plans.
Arbitrator Orders Unlocateable Plan Member Rights Preserved on Plan Wind Up
Posted in Canada Pensions & Benefits Law, Pension Reform, Plan Wind-UpsToronto Dress & Sportswear Manufacturers’ Guild Inc. v. Unite Here Ontario Council, [2010] CanLII 56592 (Ont. Arb.) When the Toronto Dress and Sportswear Industry Retirement Fund was wound up in April of 1996, the plan was severely underfunded. Plan assets were only sufficient to fund about 41% of plan liabilities. As the wind up proceeded,… Continue Reading
Federal Pension Reform Comes Into Force
Posted in Canada Pensions & Benefits Law, Legislation & Regulations, Pension ReformCertain provisions of Bill C-9, last year’s Budget Bill, which amended the federal Pension Benefits Standards Act (PBSA), have been proclaimed in force. As noted in an earlier blog post, Bill C-9 included a number of significant amendments to the PBSA related to funding, plan wind-ups, vesting, and plans at risk. Briefly, the sections coming into… Continue Reading