This is my second blog post in a series regarding target benefit plans (TBPs) (for Part I, which provides a general overview of TBPs, see my March 10, 2014 post). In this post I will focus on New Brunswick, as the first jurisdiction that has implemented comprehensive target benefit legislation. In 2012, New Brunswick introduced… Continue Reading
Many in the legal community (myself included) have felt for years that the Alberta pension regulator and the Alberta courts got it wrong in Halliburton when they concluded that the employer was precluded from implementing a “hard” freeze on defined benefits (i.e., freezing both service and earnings) when converting to a defined contribution (DC) formula… Continue Reading
On July 19, 2012 OSFI issued its final Instruction Guide – Authorization of Amendments Reducing Benefits in Defined Benefit Pension Plans, which replaced the previous April 2006 version. The Guide sets out the factors and specific requirements (e.g., valid amending power – unilateral or mutual by affected groups, legislative compliance, options considered, plan viability and… Continue Reading
This 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
These 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
In response to recent pension legislation reform, the Manitoba Office of the Superintendent – Pension Commission has issued a policy providing guidance to Manitoba plan administrators wishing to convert a defined benefit (DB) plan to a defined contribution (DC) plan.
The St. Marys Cement and United Steelworkers Local 9235 decision by a labour relations arbitrator may provide some comfort to employers who sponsor collectively bargained pension plans, since the arbitrator in that decision held that an employer’s ability to amend a pension plan is not necessarily restricted simply because the pension plan is incorporated by… Continue Reading
Sponsors of defined benefit (DB) pension plans transitioning to a defined contribution (DC) platform would be well advised to carefully consider how they communicate the change to their employees. The claim made by plan members in Dawson v. Tolko Industries Ltd. confirms the potential legal pitfalls associated with programs offering members the option to move… Continue Reading