On April 1, 2011, regulatory amendments to the Pension Benefits Standards Regulations, 1985 will come into force. These amendments support the changes to the Pension Benefits Standards Act, 1985 (PBSA) made by Bill C-9, which is discussed here. As previously reported, these amendments will: permit plan sponsors to secure properly structured letters of credit in…
Practice Area: Pension, Benefits & Executive Compensation
Federal Budget 2011
The Minister of Finance, the Honourable James M. Flaherty, tabled the Government of Canada’s 2011 Budget “A Low-Tax Plan for Jobs and Growth” in the House of Commons on March 22, 2011. In this FTR Now we review the key aspects of the Budget that are of most interest to employers and human resources professionals….
Québec Budget Announces New Voluntary Retirement Savings Plans for Employees
In its March 17, 2011 budget, Québec announced that it would implement voluntary retirement savings plans (VRSPs) for all workers who do not have access to a private pension plan. VRSPs will be capital accumulation plans (defined contribution savings plans) administered by third parties such as financial institutions. The financial institutions that offer these VRSPs…
Québec proposes stronger retirement income system
On March 17, 2011, the Québec government tabled its 2011-2012 Budget. The Budget proposed, among other things, to strengthen Québec’s retirement income system by: making adjustments to the Québec Pension Plan, as of January 1, 2012, to guarantee a new basic income to Québecers at retirement; and undertaking to implement new Voluntary Retirement Savings Plans…
Remuneration of Office-Holders may not be Pensionable for CPP Purposes
In two recent cases – Real Estate Council of Alberta v. The Minister of National Revenue (“RECA”) and Her Majesty the Queen in Right of Ontario v. The Minister of National Revenue (“HMQ”) – the Tax Court of Canada (“TCC”) ruled, respectively, that attendance and per diem fees paid to persons holding an office were…
Draft Pension Regulations (Asset Division on Marriage Breakdown) Posted for Public Comment
On March 3, 2011, the Ontario government posted draft regulations under Bill 133, the Family Statute Law Amendment Act, 2009, and a related Consultation Paper for public review and comment. Among other family law-related matters, Bill 133 amends the Pension Benefits Act and creates new rules governing both: (1) the valuation of pension assets by…
Solvency Funding Relief Proposal for Public Sector and BPS Pension Plans Released
On February 10, 2011, the Ontario government released its proposed details regarding solvency funding relief for the public sector and broader public sector (“BPS”). The government first announced that it would consider providing solvency funding relief for university pension plans on August 5, 2010 (which was consistent with the 2010 Budget announcement that solvency funding…
Solvency Funding Relief Details for Broader Public Sector Released by Ontario Government
On February 10, 2011, the Ontario government released the Details of the Proposed Temporary Solvency Funding Relief for Certain Pension Plans in the Broader Public Sector (“BPS”) (the “Details”). The government previously announced that it would consider providing solvency funding relief for pension plans provided in respect of BPS employers in the university sector on…
2010 Ontario Pension Reform Round-Up
Bill 120, Securing Pensions Benefits Now and for the Future Act, 2010, received Royal Assent on December 8, 2010. Bill 120 was one of four separate bills passed by the Ontario legislature in 2010 which included amendments to the Ontario Pension Benefits Act (“PBA“). Without a doubt, 2010 marks the most significant overhaul of Ontario’s…
CPP Regulatory Amendments In Force
On January 1, 2011, Regulations Amending the Canada Pension Plan Regulations came into force (SOR/2010-300). The regulations implement the legislative amendments in the Economic Recovery Act (stimulus) (which received Royal Assent on December 15, 2009) and are intended to restore and enhance the actuarial adjustments made to Canada Pension Plan retirement pensions taken before and…