Ontario announces more ORPP details and Ottawa opens consultations on a voluntary CPP supplement
These and other subjects are included in the current issue of the Morneau Shepell monthly publication, News & Views
TORONTO, Aug. 25, 2015 /CNW/ - In the August 2015 issue of its monthly newsletter, News & Views, Morneau Shepell looks at the new plan design details for the Ontario Retirement Pension Plan ("ORPP"), to be launched in 2017, while the Federal Government opens consultations on a voluntary supplement to the Canada Pension Plan. Morneau Shepell also highlights the Ontario consultation paper on new rules for target benefit multi-employer pension plans.
- Ontario announces more ORPP details – Morneau Shepell looks at the implications of the additional details on the ORPP, in particular, one of the most contentious aspects raised during the recent public consultations -- the possibility of being exempt from the ORPP when there is a "comparable" workplace pension plan.
- Ottawa opens consultations on a voluntary supplement to the Canada Pension Plan – Morneau Shepell takes a look at the Federal Government discussion paper that proposes voluntary contributions be managed in individual accounts, much like a defined contribution (DC) pension plan or group RRSP.
- Ontario: Consultation on target benefit multi-employer plans –The Ontario government released its consultation paper titled Regulatory Reform for Target Benefit Multi-Employer Pension Plans. With the release of this consultation paper, Ontario has taken the first step in the process of developing rules for target benefit plans.
- Pooled Registered Pension Plans: Federal Government publishes draft multilateral agreement – The Agreement is intended to streamline the supervision and administration of Pooled Registered Pension Plans (PRPPs) across Canadian jurisdictions by allowing PRPPs to be registered only with the federal Office of the Superintendent of Financial Institutions (OSFI) instead of provincial pension regulators, with some exceptions in Quebec.
- Canada Revenue Agency: Periodic review of pension plans – A recent newsletter explains CRA's new approach to review pension plan amendments. Morneau Shepell highlights that plan sponsors can expect a comprehensive review of their plan documentation every six years.
- Market Indices – Monthly summary of returns from various market indices such as the FTSE TMX Bond Indices and Canadian, U.S. and Foreign Equity Indices. Also includes returns from benchmark portfolios used by pension funds.
- Tracking the funded status of defined benefit pension plans – Impact of past returns on plan assets and the effect of interest rate changes on solvency liabilities.
- Impact on pension expense under international accounting – Expense impact for a typical defined benefit pension plan.
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SOURCE Morneau Shepell - Pension/Retirement