Under the Ontario Pension Benefits Act (“PBA”) pension plan administrators are required to provide annual statements to active plan members within six months of the plan year-end. With many plans having a December 30 or 31 year-end, a large number of administrators are now in the process of preparing statements for 2011. The PBA Regulations…
Practice Area: Pension, Benefits & Executive Compensation
Québec Budget 2012
On March 20, 2012, the Quebec government introduced its 2012-13 Budget. As expected, the government is moving forward with the joint federal-provincial initiative to provide small business owners and their employees with access to large-scale, low-cost, professionally administered pension plans. Accordingly, the Budget introduces Voluntary Retirement Savings Plans (“VRSPs”), mandatory group pension plans that all…
The Drummond Report – Impact on the Broader Public Sector
On February 15, 2012, the Commission on the Reform of Ontario’s Public Services (the “Commission”) released its long-awaited, 543-page report (the “Report”, commonly referred to as the “Drummond Report”) which identifies sweeping reform measures aimed at increasing efficiencies within the broader public service (“BPS”). In our companion FTR Now, Drummond Commission Reports on Elementary and…
BPS Solvency Funding Relief Regulation Amended
On February 17, 2012, the Ontario government filed an amendment to O. Reg. 178/11 (Solvency Funding Relief For Certain Public Sector Pension Plans) under the Pension Benefits Act. O. Reg. 12/12 prescribes those plans that have successfully applied for and, are receiving, solvency funding relief under O. Reg. 178/11. The Regulation is now in force….
Super Priority for CCAA Charges Granted Preference Over Pension Deficits
On February 2, 2012, in On Re Timminco, the Commercial Court granted an order for “super priority” for an Administration Charge ($1,000,000) and Directors’ and Officers’ Charge ($400,000) in preference to other encumbrances, including pension deficits in Timminco’s pension plans (aggregate deficit is in excess of $11,000,000). Justice Morawetz found that federal insolvency legislation, specifically…
Federal Pooled Registered Pension Plan (“PRPP”) Legislation Referred to Committee
On February 1, 2012, Bill C-25, An Act relating to pooled registered pension plans and making related amendments to other Acts passed at Second Reading in the House of Commons, and was referred to the Standing Committee on Finance. As previously reported, Bill C-25 is new legislation implementing the framework for federally regulated PRPPs, and…
Federal Court of Appeal Interprets Term “Fixed or Ascertainable” for CPP Purposes
On November 16, 2011, the Federal Court of Appeal (“FCA”) released its decision in Minister of National Revenue v. Her Majesty the Queen in Right of Ontario (“HMQ”). The FCAs decision overturns the January 17, 2011 decision of the Tax Court of Canada (“Tax Court”) in which it had held that per diem amounts paid…
2012 Car Expense Benefit Rates, Deduction Limits Set
On December 29, 2011, the federal government announced automobile expense deduction limits and the prescribed rates for the automobile operating expense benefits that will apply in 2012. A number of deduction limits will remain the same, including: the existing, $30,000 capital cost allowance (“CCA”) ceiling with respect to passenger vehicles used for business purposes; the…
CPP Amendments – New Requirements for Employer-Paid Disability Benefits
On December 15, 2011, Bill C-13, Keeping Canada’s Economy and Jobs Growing Act received Royal Assent. Bill C-13 is omnibus legislation designed to implement a number of measures proposed in the federal government’s 2011 Budget. This FTR Now discusses one aspect of Bill C-13 that amends the Canada Pension Plan (CPP) and creates new requirements…
Changes to the Canada Pension Plan (CPP): Important Information For Employers
Changes to required employer deductions for CPP contributions are coming into effect on January 1, 2012. This FTR Now reviews these changes to the CPP. NO WORK INTERRUPTION As of January 1, 2012, employees will no longer be required to either stop working or reduce their earnings in order to receive their CPP pension. As…