Morneau Shepell welcomes Government of Canada plan to allow shared risk pension plans
TORONTO, April 24, 2014 /CNW/ - Morneau Shepell (TSX: MSI), the largest company in Canada offering human resources consulting and outsourcing services, welcomed today's announcement that the Government of Canada will be launching a national discussion of proposed new target benefit pension plans that share the risks between employers and employees. The announcement was made earlier today by the Honourable Minister of State for Finance Kevin Sorenson during a keynote speech to the Economic Club of Canada in Toronto.
Mel Bartlett, Managing Partner for Morneau Shepell's Atlantic office, commented, 'This announcement by the Government of Canada is a progressive move, and a necessary step in the right direction towards federal pension reform. It will have positive implications for pension plans in this country."
"Traditional defined benefit pension plans have been under considerable pressure as a result of improved life expectancy and capital markets volatility," Bartlett said. "Across Canada, there is agreement that pension issues must be reviewed and addressed. Today's announcement provides a great framework for discussion in shifting the focus to sustainable solutions such as shared risk plans that provide plan members with adequate, predictable pensions."
Fred Vettese, Morneau Shepell's Chief Actuary said, "The review conducted in New Brunswick focused on financial sustainability, intergenerational equity and benefit transparency. Alberta and Nova Scotia have also introduced legislation allowing target benefit plans. We are pleased to see the Government of Canada consider a similar path, and would encourage other jurisdictions to follow suit as well."
Morneau Shepell and shared risk and target benefit pension plan design
Morneau Shepell assisted in the development of New Brunswick's Shared Risk Pension Plan design in 2012. The company is now working with a number of other pension plans in New Brunswick that have adopted the Shared Risk Pension Plan model, plus several others that are considering the change.
About Morneau Shepell Inc.
Morneau Shepell is the largest company in Canada offering human resources consulting and outsourcing services. The Company is the leading provider of Employee and Family Assistance Programs, as well as the largest administrator of retirement and benefits plans and the largest provider of integrated absence management solutions in Canada. Through health and productivity, administrative, and retirement solutions, Morneau Shepell helps clients reduce costs, increase employee productivity, and improve their competitive position. Established in 1966, Morneau Shepell serves more than 21,000 clients, ranging from small businesses to some of the largest corporations and associations in North America. With approximately 3,300 employees in offices across North America, Morneau Shepell provides services to organizations across Canada, in the United States, and 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 Inc.