Canada Post Task Force identifies pension deficit as key issue
This and other subjects are included in the current issue of the Morneau Shepell monthly publication, News & Views
TORONTO, Oct. 17, 2016 /CNW/ - In the October 2016 issue of its monthly newsletter, News & Views, Morneau Shepell reviews the Canada Post Task Force discussion paper, coverage of cholesterol-lowering drugs by private medical insurance plans and proposed regulations for Ontario-registered pension plans.
- Canada Post Task Force identifies pension deficit as key issue – Last month, the Canada Post Task Force issued its discussion paper titled Canada Post in the Digital Age. The Task Force was set up to identify options to help put Canada Post on a sustainable long-term financial footing. Among other issues, the discussion paper identifies Canada Post's pension deficit as a key issue that needs to be dealt with in order to achieve financial sustainability. One of the options would involve changes in solvency rules.
- Ontario to permit appointment of replacement administrator if employer is restructuring –The proposed regulations would permit the Superintendent of Financial Services to appoint a replacement administrator without the requirement for the plan to be wound up if the employer is bankrupt, in receivership or in restructuring.
- Medications: Private insurance plans can contain costs – Morneau Shepell takes a look at how employers manage insurance plan costs with the advent of newer medications such as the PCSK9 inhibitors, which are estimated to cost around $7,500 per year. The most successful companies will be those that consult and collaborate with the various stakeholders to make the most informed choices.
- Tracking the funded status of pension plans as at September 30, 2016 – During the month of September, Canadian universe bonds, Canadian long term bonds, Canadian long-term provincial bonds, Canadian and global equity markets as well as alternative investments showed positive returns.
- Impact on pension expense under international accounting as at September 30, 2016 – The expense impact for a typical defined benefit pension plan that starts the year at an arbitrary value of 100 (expense index).
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