On March 28, 2013, the Supreme Court of Canada will render its leave to appeal decision in Quinn v. Carrigan. The majority of the Ontario Court of Appeal awarded the payment of the pre-retirement death benefit payable under an Ontario registered pension plan to a member’s designated beneficiaries rather than to his common law spouse…
Practice Area: Pension, Benefits & Executive Compensation
Federal Budget 2013
On March 21, 2013, the Minister of Finance, the Honourable James M. Flaherty, tabled the 2013 Federal Budget “Jobs, Growth and Long Term Prosperity – Economic Action Plan 2013.” In this FTR Now we review those Budget items that are of most interest to employers, human resources professionals and pension plan administrators. These include: Amendments…
Federal Budget 2013 Highlights
On March 21, 2013, the federal government tabled its Budget 2013, Jobs Growth and Long Term Prosperity – Economic Action Plan 2013. Some of the highlights of interest to employers and pension plan administrators include: simplified GST/HST pension plan rules for employers; amendments to the Income Tax Act to permit the correction of reasonable pension…
Divisional Court Confirms that Section 80(3) of the PBA Deems Employment to Continue Following Sale of Business
In Ontario Pension Board v. Ratansi, the Ontario Divisional Court confirmed that the Pension Benefits Act (“PBA”) deems that following a sale of business transaction, both employment and pension plan membership continue under the predecessor employer’s pension plan while the employee continues in employment with the successor employer. The decision overturns an earlier decision of…
B.C. PRPP Legislation Does Not Proceed Past First Reading
As previously reported, the British Columbia government tabled Bill 16, Pooled Registered Pension Plans Act on February 28, 2013. With the adjournment of the Legislature on March 14, 2013 in anticipation of the May 14, 2013 provincial election, Bill 16 did not proceed past First Reading. Once the Legislature dissolves prior to the election, Bill…
Altering Vested Retiree Benefits Found to be Unlawful by Arbitrator
A recent arbitration decision serves as an important reminder that if an employer wishes to negotiate changes to retiree benefit entitlements in a unionized workplace for employees who have already retired, it can only do so where the applicable collective agreement contains clear and unambiguous language allowing for such changes. In this case, the employer…
Certain Old Age Security Amendments Contained in Federal Budget Bill Now in Force
The federal government has fixed March 1, 2013 as the day sections 449, 450 and 453 of the Jobs, Growth and Long-term Prosperity Act (“JGLPA”) come into force. These sections amend the Old Age Security Act to provide for automatic enrolment of eligible persons for Old Age Security (“OAS”) pensions, to allow an eligible person…
Amendments to SIN and Privacy Codes Contained in Federal Budget Bill Now in Force
The federal government has fixed March 1, 2013 as the day Division 7 Part 4, sections 304 to 308 and 310 to 312 and sections 685 and 687 to 695 of the Jobs, Growth and Long-term Prosperity Act (“JGLPA”) come into force. Division 7 Part 4 of the JGLPA consolidates the Privacy Codes of the…
British Columbia Introduces PRPP Legislation
On February 28, 2013, the government of British Columbia introduced Bill 16, Pooled Registered Pension Plans Act. If passed, Bill 16 would authorize pooled registered pension plans (“PRPPs”) to be made available to provincially-regulated employees and self-employed persons in British Columbia, subject to the requirements set out in the federal Pooled Registered Pension Plans Act…
Regulation under Section 80.1 of the Pension Benefits Act Proposed
The Ontario government has proposed a new regulation relating to pension asset transfers made under section 80.1 of the Pension Benefits Act (“Act”). Proposed content for this regulation was previously posted for consultation in July 2011. This regulation is required before section 80.1 of the Act comes into effect. Once proclaimed into force, that section…