Practice Area: Pension, Benefits & Executive Compensation

Ontario Releases New Pension Reform Legislation

· 2 min read

Following swiftly on the heels of the Report of the Expert Commission on Pensions, the Ontario Government released draft pension reform legislation on December 9, 2009. The draft legislation marks the beginning of what the Government is calling a multi-stage pension reform process to modernize Ontario’s pension system. The legislation covers an array of issues,…

Federal Government to Overhaul Federal Pension Laws

· 9 min read

On October 27, 2009, the Honourable Jim Flaherty, Minister of Finance, announced proposed changes to the federal Pension Benefits Standards Act, 1985 (“PBSA”) and the associated Regulations. The PBSA and Regulations apply to pensions provided to employees employed in shipping, railway, air transportation, radio broadcasting, banks and other businesses within the legislative authority of the…

Tax Treatment of Tuition Awards Provided To Employees’ Family Members

· 6 min read

The Canada Revenue Agency (“CRA”) has recently reviewed its unpopular characterization of tuition fees, scholarships, and bursaries (“tuition awards”) provided by employers to family members of employees as taxable benefits to the employees. The CRA’s updated position is that a tuition award provided by an arm’s length employer for the post secondary education of an…

Supreme Cour tof Canada Issues Definitive Guidance on Pension Plan Expenses and Use of Surplus

· 9 min read

Today, the Supreme Court of Canada released its judgment upholding the Ontario Court of Appeal decision in Kerry (Canada) Inc. v. DCA Employees Pension Committee. The Supreme Court’s decision provides helpful guidance on a number of important issues, including the payment of plan expenses from a pension fund, the use of actuarial surplus under a…

Supreme Court of Canada Issues Definitive Guidance on Pension Plan Expenses and Use of Surplus

· 9 min read

Today, the Supreme Court of Canada released its judgment upholding the Ontario Court of Appeal decision in Kerry (Canada) Inc. v. DCA Employees Pension Committee. The Supreme Court’s decision provides helpful guidance on a number of important issues, including the payment of plan expenses from a pension fund, the use of actuarial surplus under a…

Prior Approval for Commuted Value Transfers Now Required

· 5 min read

Due to recent changes to the Regulations under the Ontario Pension Benefits Act, administrators of underfunded defined benefit pension plans registered in Ontario must in certain situations obtain the approval of the Superintendent of Financial Services of Ontario (the “Superintendent”) before transferring any part of the commuted value of a terminated member’s deferred pension or…

Defining “Employer” For Pension Funding Purposes

· 13 min read

The Financial Services Tribunal (the “Tribunal”) recently released a decision that discusses, in detail, who is the employer for funding purposes under the Pension Benefits Act (“PBA”). This decision will be of interest to employers who participate in pension plans with more than one employer, but are not multi-employer pension plans or “MEPPs”, if the…

Solvency Funding Relief is Here

· 21 min read

This week saw the culmination of many months of work by the Ontario and Federal Governments with respect to solvency funding relief measures. As of yesterday, June 24, 2009, both sets of solvency funding relief regulations have been enacted. The new regulations attempt to balance the goals of maintaining benefit security for employees and retirees,…