On October 24, 2014, the Financial Services Commission of Ontario (“FSCO”) published a new proposed Investment Guidance Note in respect of Prudent Investment Practices for Derivatives (“Derivatives Guidance Note”). Once finalized, the Derivatives Guidance Note will provide plan administrators detailed guidance with respect to prudent investment practices related to derivatives. The Derivatives Guidance Note sets out…
Business Operation: Prince Edward Island
Federal Government Proposes Amendments to Temporary Foreign Worker Program
On October 23, 2014, the federal government introduced Bill C-43, Economic Action Plan 2014 Act, No. 2, omnibus legislation intended to further implement measures first announced in its Budget 2014, Economic Action Plan 2014. Among other matters, Division 24 of Part 4 of Bill C-43 would amend the Immigration and Refugee Protection Act (“Act”) to support a…
FSCO Consultation on Proposed Investment Guidance Notes (Buy-In Annuities)
On October 7, 2014, the Financial Services Commission of Ontario (“FSCO”) announced that it will be publishing Investment Guidance Notes (“Guidance Notes”) with respect to various investment activities of Ontario registered pension plans. The Guidance Notes will set out FSCO’s expectations and identify issues that plan administrators should consider and address in respect of the…
Disclosure Reforms and New Defined Contribution Payment Option for Federally Regulated Pension Plans
On September 19, 2014, the federal government released proposed amendments to the Pension Benefits Standards Regulations, 1985 (“PBSR”). Proposals relating to the pension investment rules that apply more broadly – to federally regulated pension plans[1] as well as pension plans that are regulated by the provincial pension legislation in Ontario, Alberta, British Columbia, Manitoba, Newfoundland…
Five PRPP-Licenced Insurers Now Registered for Implementation
On October 7, 2014, the federal government announced that the following five insurance companies have been given licences under the federal Pooled Registered Pension Plan (“PRPP”) framework and have been registered with the Office of the Superintendent of Financial Institutions and the Canada Revenue Agency: Sun Life, Great West Life, Manulife, Standard Life and Industrial-Alliance….
Proposed Investment Rule Changes for Registered Pension Plans
On September 19, 2014, the Department of Finance Canada released proposed amendments to the federal Pension Benefits Standards Regulations, 1985 (“PBSR”). The proposed amendments would modernize the pension investment rules applicable to pension plans registered in many Canadian jurisdictions. Specifically, these changes will, if adopted as drafted, impact the investments that are permitted to be…
Long-Awaited Federal Pension Regulations Are Proposed
On September 19, 2014, the federal government released long-awaited regulations for public comment that would, if adopted as drafted, implement significant reforms to the current framework governing federally regulated private pension plans. Investment-related reforms will also have implications for Ontario regulated pension plans, and for pension plans regulated by other provinces where such jurisdictions have adopted the federal…
2015 EI Maximum Insurable Earnings Rate Set
On September 12, 2014, the Canada Employment Insurance Commission (“CEIC”) announced that the 2015 Employment Insurance (“EI”) Maximum Insurable Earnings rate will increase to $49,500 from $48,600 in 2014. Premiums will be reduced by $0.34 per $100 of insurable earnings for residents of Quebec covered under the Quebec Parental Insurance Plan. Accordingly, those residents will…
Mandatory Insurance of LTD Plans: New Federal and Provincial Requirements
As previously reported, effective July 1, 2014, federally-regulated employers, including Crown corporations, who are governed by Part III of the Canada Labour Code and who provide their employees with long-term disability (“LTD”) plan benefits must insure the plan, on a go-forward basis, with an entity that is licensed to provide insurance under the laws of…
Small Business Job Credit and New EI Rate-Setting Mechanism Announced
On September 11, 2014, the federal government announced the introduction of the Small Business Job Credit (“Credit”), which is intended to provide tax relief for small employers. The Credit effectively lowers the Employment Insurance (“EI”) premium rate for eligible businesses from the current, legislated rate of $1.88, to $1.60 per $100 of insurable earnings in…