Bill C-86 establishes pay equity and expanded leave for federally regulated employees
An in-depth look at these and other subjects are covered in the current issue of the Morneau Shepell News & Views
TORONTO, Jan. 24, 2018 /CNW/ - Morneau Shepell released the January 2019 issue of its monthly newsletter, News & Views, in which the Company looked at the following topics:
- Pay Equity Act creates new requirements for federally regulated employers – On December 13, 2018, the federal government's Bill C-86 received royal assent, establishing new requirements for federally regulated employers, including a new Pay Equity Act (the Act). The Act aims to ensure that women receive equal pay for work of equal value. The Act requires federally regulated employers of 10 or more employees to establish a pay equity plan within three years of the Act being proclaimed into force.
- Paid and unpaid leaves expanded for federally regulated employees – Bill C-86 will expand certain paid and unpaid leaves for federally regulated employers and employees under the Canada Labour Code (the Code). To facilitate the new employment insurance parental sharing benefit, which becomes effective in March 2019, the Code is amended to increase the aggregate amount of combined parental and maternity leave that may be taken by two parents from 78 weeks to 86 weeks. Bill C-86 will also make several new types of leave available, including five days of personal leave for all employees, the first three days of which will be paid if the employee has completed at least three months of employment.
- Proposed changes to the actuarial standards for pension commuted value calculations – On November 23, 2018, the Actuarial Standards Board of the Canadian Institute of Actuaries released the second exposure draft of proposed changes to the actuarial standards applicable for the calculation of pension commuted values. The draft includes updates that will affect both defined benefit and target pension arrangements across Canada.
- Quebec to modify funding rules for multi-jurisdictional defined benefit pension plans – On December 5, 2018, a draft regulation was published in Quebec that applies to pension plans registered in Quebec that have members in other provinces. It aims to protect Quebec members' benefits accumulated since 2016 and to ensure that plan assets are allocated more fairly between members in different provinces in the event of a defined benefit plan split or wind-up.
- OSFI releases fact sheet on pension and savings plan trends in Canada – OSFI's Office of the Chief Actuary issued a fact sheet, Registered Pension Plans (RPPs) and Other Types of Savings Plans – Coverage in Canada, summarizing key trends on pension and savings coverage in Canada. Statistics published in the fact sheet were assembled using information available from Statistics Canada and the Canada Revenue Agency. Among other findings, the fact sheet shows that the total number of active registered pension plan members increased from 5.8 million to 6.3 million between 2006 and 2016, and the continuing decline in defined benefit pension plan coverage in the private sector.
- Ontario government postpones implementation of Pay Transparency Act – The new Ontario government has delayed the implementation of the Pay Transparency Act, 2018, which was originally scheduled to come into effect on January 1, 2019, until a future date. The Act would have required provincially regulated employers in Ontario to begin disclosing compensation information in public job postings and prohibited inquiries into an applicant's compensation history. It also would have required an annual pay transparency report for employers with 100 or more employees. The government indicated it is postponing the Act to conduct consultations.
- Tracking the funded status of pension plans as at December 31, 2018 – Morneau Shepell describes the funded status of pension plans at end of 2018 based on three typical investment portfolios. A graph shows the changes in the financial position since the beginning of 2018 of a typical defined benefit pension plan. A table shows the evolution of the solvency ratio over 2018 for the three typical investment portfolios.
- The impact of pension expense under international accounting as at December 31, 2018 – Morneau Shepell has shown the evolution of the pension expense over 2018 for a typical defined benefit pension plan. Since the beginning of 2018, the pension expense has decreased by six per cent (for a contributory plan) due to an increase in discount rates despite the low returns on assets (relative to the discount rate).
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Morneau Shepell is the only human resources consulting and technology company that takes an integrated approach to employee well-being, health, benefits and retirement needs. The Company is the largest administrator of retirement and benefits plans and the largest provider of integrated absence management solutions in Canada. LifeWorks by Morneau Shepell is a total well-being solution that combines employee assistance, wellness, recognition and incentive programs. As a leader in strategic HR consulting and innovative pension design, the Company also helps clients solve complex workforce problems and provides integrated productivity, health and retirement solutions. Established in 1966, Morneau Shepell serves approximately 24,000 clients, ranging from small businesses to some of the largest corporations and associations. With more than 4,500 employees in offices worldwide, Morneau Shepell provides services to organizations around the globe. Morneau Shepell is a publicly-traded company on the Toronto Stock Exchange (TSX: MSI). For more information, visit morneaushepell.com.
SOURCE Morneau Shepell - Pension/Retirement