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Pensions & Benefits Law A Discussion of Canadian and U.S./Cross-Border Pension & Benefit Legal Issues

Category Archives: Surplus

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Ontario Releases Long-Awaited Draft Pension Regulations

By Paul Litner on Posted in Canada Pensions & Benefits Law, Legislation & Regulations, Pension Reform, Plan Wind-Ups, Public Sector Plans, Surplus

Almost 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

Bill 120 – Second Stage of Ontario Pension Reform – Receives Royal Assent

By Lesha Van Der Bij on Posted in Canada Pensions & Benefits Law, DB Plan Funding, DC Plans, Legislation & Regulations, Pension Reform, Plan Administration, Surplus

Yesterday Bill 120, Securing Pension Benefits Now and for the Future Act, 2010, received royal assent. As discussed in previous posts (see October 22, October 29 and December 6, 2010 posts), Bill 120 made a number of significant changes to the Ontario Pension Benefits Act, including:

Osler Submission re Bill 120: Seeking Clarification for Pension Plan Sponsors and Administrators

By Ian McSweeney on Posted in Canada Pensions & Benefits Law, Pension Reform, Surplus

Earlier this month, the Ontario government introduced Bill 120, The Securing Pension Benefits Now and for the Future Act, 2010 for first reading. While we commend the government for pushing ahead with pension reform, we are concerned that a number of the amendments may not resolve ongoing issues as intended or may in fact have… Continue Reading

Ontario Pension Reform Continues – Bill 120 Amendments re Surplus Withdrawal

By Douglas Rienzo on Posted in Canada Pensions & Benefits Law, Pension Reform, Surplus

With the introduction of Bill 120, the Securing Pension Benefits Now and for the Future Act, 2010, on October 19, 2010, the Ontario government moved forward with its stated objective to continue its reform of the province’s pension system. This second stage of pension reform follows on the heels of Bill 236, which received royal… Continue Reading

Ontario Introduces Second Stage of Pension Reform

By Lesha Van Der Bij on Posted in Canada Pensions & Benefits Law, DB Plan Funding, Legislation & Regulations, Pension Reform, Surplus

On October 19, 2010, the Ontario government introduced the second stage of pension reform – Bill 120, The Securing Pension Benefits Now and for the Future Act, 2010. A press release indicated that Bill 120 would include amendments aimed at: strengthening pension plan funding requirements; providing certain multi-employer pension plans and jointly sponsored pension plans… Continue Reading

Burke Case Resolved in Employer’s Favour, But Questions Linger

By Ian McSweeney on Posted in Canada Pensions & Benefits Law, Pension Reform, Surplus

On October 7, 2010, the Supreme Court of Canada released its decision in Burke v. Hudson’s Bay Co., upholding the Ontario Court of Appeal’s ruling that Hudson’s Bay Co. (HBC) was permitted to charge plan administration expenses to the pension fund, and did not have a fiduciary obligation to transfer a portion of the actuarial… Continue Reading

Osler Makes Submissions to Ontario Government on Pension Reform

By Ian McSweeney on Posted in Canada Pensions & Benefits Law, Pension Reform, Surplus

In late August of this year, the Ontario government announced the second stage of pension reform. While we were pleased to see that the government was continuing to move forward with its reforms to the Ontario pension system, we were concerned that these proposals did very little to encourage employers in the private sector to… Continue Reading

Ontario Pension Reform – One Step Forward, Two Steps Back

By Douglas Rienzo on Posted in Canada Pensions & Benefits Law, Pension Reform, Surplus

As indicated in our previous post on Bill 236 (the Pension Benefits Amendment Act, 2010), the provisions that address surplus withdrawal on full or partial wind-up have come into force. There is still some controversy, however, surrounding how the Financial Services Commission of Ontario (FSCO) is interpreting the new provisions. On September 20, 2010, FSCO… Continue Reading

Ontario’s New Surplus Sharing Rules: In Force but Questions Linger

By Douglas Rienzo on Posted in Canada Pensions & Benefits Law, Legislation & Regulations, Pension Reform, Surplus

As indicated in a previous post, among the very few aspects of Bill 236, the Pension Benefits Amendment Act, 2010 to come into force on royal assent were the provisions addressing surplus withdrawal on full or partial wind-up. Some issues of concern regarding these provisions have already arisen, as they have been subject to competing… Continue Reading

New Surplus Sharing Regime In Force In Ontario

By Louise Greig on Posted in Canada Pensions & Benefits Law, Legislation & Regulations, Pension Reform, Plan Wind-Ups, Surplus

As indicated in a previous post, most of the provisions of Bill 236, Pension Benefits Amendment Act, 2010, which recently received Royal Assent, have not yet come into force, but there is one important exception – the new surplus withdrawal regime for full and partial wind ups. Under the old plan wind up surplus withdrawal rules, an employer had to… Continue Reading

Bill 236 – First Stage of Ontario Pension Reform – Receives Royal Assent

By Lesha Van Der Bij on Posted in Canada Pensions & Benefits Law, Legislation & Regulations, Pension Reform, Plan Administration, Plan Wind-Ups, Surplus

Bill 236, Pension Benefits Amendment Act, 2010, received royal assent on May 18, 2010. As discussed in previous posts (from April 21, 2010 and December 10, 2009) Bill 236 makes a number of significant changes to the Ontario Pension Benefits Act, including: eliminating partial wind-ups; introducing immediate vesting;  extending “Rule of 55” grow-in benefits to… Continue Reading

Ontario’s Bill 236 Pension Reforms Revised by Standing Committee

By Ian McSweeney on Posted in Canada Pensions & Benefits Law, Legislation & Regulations, Pension Reform, Plan Administration, Plan Wind-Ups, Surplus

Following several days of public hearings and receipt of many written submissions, on April 19, 2010 the Standing Committee on Finance and Economic Affairs reported on Ontario Bill 236, Pension Benefits Amendment Act, 2010, making a number of amendments to the Bill. Probably the most significant change in the revised version of the Bill, which… Continue Reading

Ontario Government Provides Insight into Next Stage of Pension Reform

By Douglas Rienzo on Posted in Canada Pensions & Benefits Law, DB Plan Funding, Pension Reform, Surplus

Yesterday’s Budget announcement by the Ontario government included its “vision” for further pension reform – with the emphasis being on changes to the funding of defined benefit plans. Ontario began its reform of the pension system late last year with the introduction of Bill 236, which it described as the “first stage” of a multi-step… Continue Reading

Federal Government Moves Ahead with Increases to Pension Plan Surplus Threshold

By Lesha Van Der Bij on Posted in Canada Pensions & Benefits Law, DB Plan Funding, Legislation & Regulations, Pension Reform, Surplus

Following through on its announcement last fall, the federal government has recently tabled a Notice of Ways and Means Motion, which includes amendments to the Income Tax Act increasing the pension plan surplus threshold from 10% to 25%. These amendments, which will apply to all registered pension plans, whether federally or provincially regulated, beginning with… Continue Reading

FSCO Attempts to Address Delays in Processing DB Plan Applications, but Legislative Reform Also Required

By Douglas Rienzo on Posted in Canada Pensions & Benefits Law, Pension Reform, Plan Wind-Ups, Regulator Policies & Communications, Surplus

In January 2010, the Financial Services Commission of Ontario (FSCO) released a consultation paper outlining proposals to streamline the regulatory review process for defined benefit (DB) applications (PDF). The proposals outlined in the most recent paper – an earlier consultation process had taken place in the spring of 2009 – are designed to lead to more… Continue Reading

Hydro One Decision: What are the Implications for Plan Wind-Ups in Light of Pending Pension Reform?

By Louise Greig on Posted in Canada Pensions & Benefits Law, Legislation & Regulations, Pension Reform, Plan Wind-Ups, Surplus

The Ontario Court of Appeal’s recent decision in Hydro One confirmed that the Superintendent may use a “subset analysis” when assessing the “significance” of plan member terminations for purposes of ordering a partial plan wind-up. The impact of this decision may be limited, however, if the amendments to the Ontario Pension Benefits Act (PBA) wind-up… Continue Reading

Ontario Announces First Stage of Pension Reform

By Ian McSweeney on Posted in Canada Pensions & Benefits Law, Legislation & Regulations, Pension Reform, Plan Administration, Plan Wind-Ups, Surplus

On December 9, 2009 the Ontario government announced the first stage of a multi-step process to reform the province’s occupational pension system – the Pension Benefits Amendment Act, 2009 (Bill 236). The next stage is scheduled to be released in the spring of 2010. It appears that the government is taking its cue from the… Continue Reading

Buschau v. Rogers Communications – The Never Ending Saga Favours Employers…For Now

By Jean-Pierre Laporte on Posted in Canada Pensions & Benefits Law, Plan Wind-Ups, Surplus

Is it permissible to re-open a closed pension plan and thereby quash the hopes of members to access the surplus bottled up in it? The latest decision in the Rogers v. Buschau saga suggests it is. As some may remember, the sponsor, Rogers Communications Inc., had closed a defined benefit pension plan, registered under the federal… Continue Reading

Surplus for Missing Members Can Be Paid into Court

By Shaun Miller on Posted in Canada Pensions & Benefits Law, Plan Wind-Ups, Surplus

The decision of the Ontario Superior Court of Justice in Re Hawker Siddeley Canada Inc. Pension Plan (PDF) presents an opportunity for employers to expedite the surplus distribution process by allowing surplus attributable to unlocated members and former members to be paid into Court.  When Hawker Siddeley Canada Inc. wound up its plan in 1996,… Continue Reading