On November 15, 2012, the Ontario government filed O. Reg. 364/12, which amends Regulation 909 made under the Pension Benefits Act (“PBA”) and implements the framework for letters of credit under the yet to be proclaimed section 55.2 of the PBA. Section 55.2 of the PBA will allow the use of letters of credit in…
Practice Area: Pensions, Benefits & Compensation
Morneau Report on Pooling of Pension Fund Assets in BPS Released
On November 16, 2012, the Ontario government released “Facilitating Pooled Asset Management for Ontario’s Public-Sector Institutions,” a report from Pension Investment Advisor, William Morneau, to the Deputy Premier and Minister of Finance (“Morneau Report”). As previously reported, the Ontario government appointed Mr. Morneau further to its Budget 2012 initiatives, specifically to develop recommendations for the…
Federal Committee Considers Bill Requiring Disclosure of Information by Labour Organizations
On November 7, 2012, Bill C-377, An Act to amend the Income Tax Act (Requirements for labour organizations) was considered before the House of Commons Standing Committee on Finance. Bill C-377 is a private member’s bill which, if passed, will amend the Income Tax Act to require labour organizations to file a public information return…
Pension Solvency Funding Relief Is Here…Again
INTRODUCTION On November 1, 2012, important amendments were made to the Pension Benefits Act Regulation 909 (the “Regulation”). The amendments extend the temporary solvency relief measures for eligible defined benefit pension plans and make housekeeping changes to the sections requiring defined benefit pension plans to file annual, rather than triennial, actuarial valuations. This FTR Now…
Significant Decision on Pre-Retirement Death Benefits Rendered by Ontario Court of Appeal
On October 31, 2012, the majority of the Ontario Court of Appeal departed from the pension industry’s widely held interpretation of section 48 of the Pension Benefits Act when it awarded the pre-retirement death benefit payable under an Ontario registered pension plan to a member’s designated beneficiaries rather than to the member’s common law spouse….
Ontario Court of Appeal Decision Rewrites the Pension Pre-Retirement Death Benefit Regime
On October 31, 2012, a majority of the Ontario Court of Appeal awarded 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. The majority’s decision in Carrigan v. Carrigan Estate (“Carrigan”) is a departure from the pension industry’s widely held interpretation…
New Solvency Funding Relief Regulations Filed
On November 1, 2012, the Ontario government filed O. Reg. 329/12 and O. Reg 330/12, each of which amends Regulation 909 (General) made under the Pension Benefits Act. Further to the government’s Budget 2012, O. Reg 329/12 extends temporary solvency funding relief measures for private sector defined benefit pension plans, as first introduced in 2009…
2013 Pension and Retirement Savings Limits Announced
On November 1, 2012, the Canada Revenue Agency (“CRA”) released the “2013 Rates for Money Purchase limits, RRSP limits, YMPE, DPSP limits and Defined Benefits limits,” which are as follows: The 2013 annual pension for the year in which a pension commences to be paid under a Defined Benefit pension plan will be limited to…
2013 Maximum Pensionable Earnings Under CPP Announced
On November 1, 2012, the federal government announced that in 2013, the maximum pensionable earnings under the Canada Pension Plan will be $51,100. The maximum employer and employee contribution rates will remain at the 2012 rate of 4.95%.
Alberta Introduces Pension Reform Bill
On October 25, 2012, Bill 10, Employment Pension Plans Act, received first reading in the Alberta Legislature. Bill 10 is introduced further to a report tabled in 2008 by the Alberta and British Columbia Joint Expert Panel on Pension Standards, “Getting Our Acts Together,” regarding pension reform in those two provinces. Pension reform legislation was…