2013 Survey on Economic Assumptions to account for costs of DB Pension Plans and Regulation Changes for Pension Plans in Saskatchewan and Ontario
These are among the subjects included in the current issue of the Morneau Shepell News & Views, a monthly publication dedicated to providing insights to its clients in Canada.
TORONTO, July 18, 2013 /CNW/ - Morneau Shepell releases, in the current issue of its newsletter, News & Views, highlights of its 2013 survey on the economic assumptions used by Canadian public companies to account for the costs of their defined benefits pension plans.
- 2013 SURVEY - ECONOMIC ASSUMPTIONS IN ACCOUNTING - According to the results of this survey of Canadian public companies, the discount rates used for pension plans have decreased for the fourth straight year. Also, about 68 per cent of the companies responding to the survey disclosed an expected long-term rate of return on plan assets between six and seven per cent. See this issue for more survey highlights and our website for the full survey.
- A NEW TRANSFER OPTION FOR RETIREES OF AVEOS - Read about the new special measures for this federally-regulated plan. Aveos retirees will not be required to purchase an immediate life annuity from an insurer following the wind-up of the retirement plan, which filed for creditors' protection under the CCAA in March 2012.
- CANADIANS CAN NOW DELAY THEIR OLD AGE SECURITY PENSION FOR UP TO 5 YEARS - As of July 1, 2013, Canadians can choose to defer payment of their Old Age Security (OAS) pension for up to five years after their 65th birthday. This will lead to a higher monthly amount in the future. It might be an interesting option for Canadians who will continue to work past 65.
- REGULATION CHANGES FOR PENSION PLANS IN SASKATCHEWAN - Amendments to a number of rules under the pension benefits regulations in Saskatchewan came into effect June 26, 2013. Among the changes are some funding relief for public sector pension plans and an increase in the annual assessments that all pension plans registered in the province must pay.
- ONTARIO RELEASES DRAFT ASSET TRANSFER REGULATIONS - Draft regulations issued by Ontario's Ministry of Finance would facilitate transfers of assets between pension plans as a result of corporate reorganizations, including the sale of a business. The legislative amendments and draft regulations provide a formula, based on the transferring plan's solvency ratio, to determine the amount of assets to be transferred. Also covered is how the benefit security for members in both plans is protected.
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