Update on Ontario’s Retirement Reforms and Initiatives

On Thursday, November 7, 2013, Ontario’s minority government released its economic outlook and fiscal review, titled Creating Jobs and Growing the Economy (the “Economic Outlook”). The Economic Outlook updates and also expands upon legislative and other reform initiatives that had previously been announced. In this FTR Now, we review the key retirement-related updates and developments…

Financial Services Tribunal Interprets the Accrued Benefit Protections of the Pensions Benefits Act (Ontario)

On August 15, 2013, the Ontario Financial Services Tribunal (“FST”) issued its decision in Royal Ontario Museum Curatorial Association v. Ontario (Superintendent Financial Services), concerning an amendment made to The Royal Ontario Museum Pension Plan (“Plan”). The Plan is a defined benefit (“DB”) pension plan. At issue before the FST was whether an amendment to…

Rachel Arbour Interviewed by the Canadian Bar Association’s National TV

Hicks Morley’s Rachel Arbour was recently interviewed by the Canadian Bar Association’s National TV. In the interview, Rachel answers questions regarding the Indalex ruling and explains what it means to companies that sponsor and administer defined benefit pension plans. Watch the interview. Read our FTR Now which summarizes the Supreme Court’s decision in Indalex.

Ontario Court of Appeal Revisits Pension and Insolvency Principles: Indalex

INTRODUCTION On April 7, 2011, the Ontario Court of Appeal (the “Court”) released its decision in Re Indalex Limited. In this decision, the Court considers and revisits fundamental and established Canadian pension and insolvency law principles, making this decision required reading for members of pension committees, human resources professionals involved in pension plan administration, and…

Federal Government to Overhaul Federal Pension Laws

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…

Prior Approval for Commuted Value Transfers Now Required

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…

No Surplus Distribution Required on Partial Termination of Federally-Regulated Pension Plans

In its much anticipated decision in Cousins v. Canada (Attorney General) and Marine Atlantic Inc. (“Marine Atlantic”), the Federal Court of Appeal has concluded that the federal Pension Benefits Standards Act, 1985 (the “PBSA”) does not require a proportionate distribution of surplus on a partial termination of a defined benefit (DB) pension plan.  The Federal…