On October 19, 2016, the federal government introduced Bill C-27, An Act to amend the Pension Benefits Standards Act, 1985, legislation that would, if passed, provide a framework for the establishment, administration and supervision of target benefit plans (TBPs). TBPs provide for fixed or capped contributions, a targeted “defined benefit type” pension formula and flexibility…
Practice Area: Pensions, Benefits & Compensation
Federal Government Introduces Amending Legislation to Support CPP Enhancement
On October 6, 2016, the federal government introduced Bill C-26, An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act, new omnibus legislation to support Canada Pension Plan (CPP) enhancement. If passed, Bill C-26 would, among other things, amend the CPP to: increase the maximum…
Ontario Moves Forward with BPS Executive Compensation Restraint
On September 6, 2016, the Ontario government published Ontario Regulation 304/16 “Executive Compensation Framework” (Regulation) under the Broader Public Sector Executive Compensation Act, 2014 (BPSECA), which provides the compensation framework in accordance with which compensation programs for “designated executives” under the BPSECA must be developed, including a detailed process and specific one-year timeline for their development…
Ontario Consults on (Revised) Proposed Amendments to Advisory Committee Regulations
The Ontario government is consulting on a revised proposal for amending the Pension Benefits Act(PBA) regulations with respect to Pension Advisory Committees (PACs). The consultation is open only until September 12, 2016…
Annuitization of Supplementary Pension Benefits: Less Favourable Tax Treatment Arrives January 1, 2017
On January 1, 2017, changes to Canadian tax rules come into force that will impact how certain annuity payments are taxed. For prescribed annuities purchased after that date, more of each payment will become taxable as a result of these changes…
Review of Ontario’s Solvency Funding Framework for Defined Benefit Pension Plans Sets Out Potential Options For Change
As described in our FTR Now of July 26, 2016, Marshall Consultation Paper on Ontario Pension Solvency Funding Framework Released, the Ontario government is undertaking a review of the current solvency funding framework (the Marshall Review) under the Ontario Pension Benefits Act (PBA)…
New Multi-Jurisdictional Pension Plan Agreement Now in Effect
Parties involved in the administration of pension plans have been waiting for Canadian pension regulators to agree to a new set of rules applicable to plans with members in more than one province. Recently, the governments of British Columbia, Nova Scotia, Ontario, Quebec and Saskatchewan signed a new Agreement Respecting Multi-Jurisdictional Pension Plans, which took effect July 1, 2016 (2016 Agreement)…
Ontario to Repeal ORPP Administration Corporation Act
On July 28, 2016, the Ontario government announced its plans to repeal the Ontario Retirement Pension Plan Administration Corporation Act, 2015 (Act) when the Legislature resumes sitting in the Fall, 2016. The Act created the Ontario Retirement Pension Plan (ORPP) Administration Corporation to administer the ORPP, Ontario’s stand-alone solution to address retirement security concerns for…
Marshall Consultation Paper on Ontario Pension Solvency Funding Framework Released
Ontario registered defined benefit (DB) pension plans must be funded on the greater of a going concern or solvency basis, as we outlined in our recent FTR Now Ontario Pension Solvency Funding Framework Under Review. Due to the recent, yet prolonged, low-interest rate environment, most DB plans are in a deficit position on a solvency basis, requiring many employers to make large special payments to fund the deficits over a five-year period…
CPP Expansion and the (Likely) Demise of Ontario’s Provincial Pension Plan
On June 20, 2016, following a highly anticipated meeting between the federal, provincial and territorial Ministers of Finance…