On February 11, 2014, the Minister of Finance, the Honourable James Flaherty, tabled the 2014 Federal Budget “The Road to Balance: Creating Jobs and Opportunities” (Economic Action Plan 2014). This FTR Now focuses on some of the key proposals that are of particular interest to employers, human resources professionals and pension plan administrators. TAX INITIATIVES…
Practice Area: Pensions, Benefits & Compensation
Ontario Proposes “10% Rule” Exemption for U.S. Government Securities
On February 5, 2014, the Ontario government published proposed amendments to Regulation 909 under the Pension Benefits Act that would, if adopted, exempt investments in securities issued and fully guaranteed by the government of the United States of America (“U.S.”) from the so-called “10% rule” in respect of the quantitative investment limits applicable to registered…
SCC authorizes Québec class action regarding reduction of retiree benefits
The Supreme Court of Canada (“SCC”) recently released a unanimous decision authorizing a class action on behalf of retirees against their former employer, relating to announced changes to their supplemental health insurance plan (“Plan”). The case, Vivendi Canada Inc. v. Dell’Aniello, was decided under the specific wording of the Québec class proceedings statute. In 2009,…
Supreme Court of Canada Speaks on the Deductibility of Income Replacement Benefits from Wrongful Dismissal Damages
The Supreme Court of Canada has provided some much needed clarity to the issue of the deductibility of income replacement benefits from wrongful dismissal damages in its long-awaited decision, IBM Canada Ltd. v. Waterman (“Waterman“). Justice Cromwell, writing for the majority of the Court, dealt with the deductibility of pension benefit payments in particular. Ultimately,…
Federal Government Implements Pension Funding Relief Regulations (Air Canada)
On January 1, 2014, the federal government published regulations extending the temporary funding relief provided to Air Canada under the Air Canada Pension Plan Funding Regulations, 2009, which were originally set to expire on January 30, 2014. The Air Canada Pension Plan Funding Regulations, 2014 temporarily relieve Air Canada from the requirement to make special…
Federal Government Proposes Transitional Pension Funding Relief Regulations (Canada Post)
On December 21, 2013, the federal government published proposed transitional pension funding relief regulations that would temporarily relieve Canada Post Corporation from the requirement to make special payments to its defined benefit employee pension plan, as ordinarily required under the Pension Benefits Standards Act, 1985 (“PBSA”), for a period of four years. The proposed amendments…
Federal Budget Bill Receives Royal Assent (C-4)
On December 12, 2013, Bill C-4, the Economic Action Plan 2013 Act, No. 2, received Royal Assent. As previously reported, Bill C-4 is omnibus legislation implementing measures from the Economic Action Plan 2013 (the 2013 Budget), as well as certain previously announced tax measures. The Bill should be consulted for coming into force information. For a more detailed…
Regulation Exempts Remuneration From CPP Contributions
On December 18, 2013, the federal government published a regulation amending the Canada Pension Plan Regulations to add a new type of exempted employment in respect of which contributions are not required under Canada Pension Plan (“CPP”) legislation, in addition to the exemption for employment as a judge appointed by the Government of Canada. The…
Supreme Court of Canada Provides Clarity to the Deductibility of Income Replacement Benefits from Wrongful Dismissal Damages
The Supreme Court of Canada has provided some much needed clarity to the issue of the deductibility of income replacement benefits from wrongful dismissal damages in its long-awaited decision, IBM Canada Ltd. v. Waterman (“Waterman”). Justice Cromwell, writing for the majority of the Court, dealt with the deductibility of pension benefit payments in particular. Ultimately,…
New Pension Asset Transfer, Public Sector Solvency Funding Regulations
On December 14, 2013, the Ontario government published the following regulations under the Pension Benefits Act (the “Act”): O. Reg. 308/13 (Asset Transfers Under Section 80.1 of the Act), providing a supporting asset transfer framework for certain prescribed plans under paragraph 2 of subsection 80.1 (2) of the Act (transition, transfers upon the sale of…