On August 30, 2011, the federal government released a paper outlining proposed tax rules governing Employee Profit Sharing Plans (“EPSPs”) for public consultation, in furtherance of initiatives first announced in its 2011 Budget. Specifically, the government is seeking stakeholder input on the following issues: eligibility of non-arm’s length employees / “related persons” to participate in…
Practice Area: Pensions, Benefits & Compensation
Federal Government Launches EI Consultations
On August 18, 2011, the federal government announced the launch of Employment Insurance (“EI”) rate-setting consultations, and released a related consultation paper. The EI consultations are intended to enhance delivery of benefits, and increase overall premium stability. Individuals and stakeholders may participate in the web-based consultation process online, or via email before November 30, 2011.
New Income Tax Proposals Introduced – Federal Budget 2011
On August 16, 2011, the Department of Finance released draft legislative and regulatory proposals to implement a number of key tax measures first introduced by the federal government in Budget 2011, the Next Phase of Canada’s Economic Action Plan—A Low-Tax Plan for Jobs and Growth. In part, “Legislative Proposals Relating to the Income Tax Act…
Taxation Rules for Lump Sum Amounts Received in Lieu of Benefits Coverage
In June, 2011, the Canada Revenue Agency (“CRA”) announced new rules governing lump sum payments made to employees or retirees in lieu of their healthcare coverage. These new rules, which come into effect on January 1, 2012, followed the announcement in the 2011 federal Budget that CRA was re-examining its position on these payments (see…
Supporting Regulations Proposed for Transfer Agreements under Section 80.1
The Ontario government has posted proposed content for Pension Benefits Act regulations for public review and commentary. These regulations are required before amendments to section 80.1 of that Act come into effect. Once proclaimed in force, section 80.1 of the Act will allow the administrators of certain public sector plans to negotiate agreements to give…
Susie Taing Contributes to The Advisor Newsletter
An article by Hicks Morley’s Susie Taing appeared in the July 2011 issue of Pal Benefits’ The Advisor. In the article, “Employer Ordered to Pay Terminated Employee Disability Benefits to Age 65,” Susie reviews a recent court decision warning employers to address the risk that terminated employees may become disabled. View Article
Hicks Morley Named a Leading Canadian Labour, Pensions and Employee Benefits Firm in the 2011 Canadian Legal Lexpert® Directory
Published since 1997, the annual Canadian Legal Lexpert® Directory is the most comprehensive guide to legal talent in Canada. It identifies leading lawyers across Canada in 64 practice areas. It has become the resource of choice for Canadian corporate counsel and Canadian law firms as well as for US corporate counsel and law firms in…
Bill 133 Regulations (Asset Division on Marriage Breakdown) Filed Under Pension Benefits Act
On June 24, 2011, the Ontario government filed long-anticipated regulations in support of amendments to the Pension Benefits Act effected by Bill 133, the Family Statute Law Amendment Act, 2009. O. Reg. 287/11 (Family Law Matters) follows the previously reported March 2011 release of draft regulations and a related Consultation Paper, and reflects that consultation…
FSCO Releases Guidance Note on Revised CIA Standards of Practice
The Financial Services Commission of Ontario (“FSCO”) released its Guidance Note (PDF) with respect to how it expects plans to apply the revised Canadian Institute of Actuaries’ (“CIA”) Practice-Specific Standards for Pension Plans (the “Standards”). The Guidance Note expressly states that the application of some of the CIA revisions to the Standards, which became effective…
Broader Public Sector Perquisites Directive Issued by the Ontario Government
Management Board of Cabinet has issued the Broader Public Sector Perquisites Directive (the Directive), dated August 2, 2011, which will apply to any person in a designated broader public sector (BPS) organization, including appointees, board members, elected officials (e.g. school trustees) and employees. The Directive has been issued under the provisions of the Broader Public…