Quebec Pension Plan expansion and new policies on missing beneficiaries in Ontario
An in-depth look at these and other subjects are covered in the current issue of the Morneau Shepell News & Views
TORONTO, Nov. 14, 2017 /CNW/ - Morneau Shepell released the November 2017 issue of its monthly newsletter, News & Views, in which the company looked at a number of topics, including details on the Quebec Pension Plan expansion, new policies on missing beneficiaries in Ontario and the new offering of pooled registered pension plans in Manitoba.
- Quebec tables bill to enhance the Quebec Pension Plan – On November 2, 2017, Quebec's minister of finance tabled Bill 149, "An Act to enhance the Quebec Pension Plan (QPP) and to amend various retirement-related legislative provisions." The bill amends the Supplemental Pension Plans Act to revise certain rules covering the use of surplus assets from private-sector defined benefit plans. It also creates an additional component that is almost identical to the one the Canada Pension Plan adopted in 2016 for the other provinces (see July 2016 News and Views).
- Two new policies issued on missing beneficiaries in Ontario – On September 30, 2017, the Financial Services Commission of Ontario (FSCO) issued two new policies related to missing beneficiaries. The first, Policy A300-900 or "Search Policy," sets out steps a pension plan administrator should consider when searching for plan beneficiaries. The second, Policy A300-901 or "Waiver Policy," sets out FSCO's requirements for granting a waiver from the requirement to provide statements to missing former members and retired members.
- Pooled registered pension plans now offered in Manitoba – On August 1, 2017, Manitoba proclaimed its legislation into action, permitting pooled registered pension plans (PRPPs). On October 5, 2017, the federal government amended its regulations to permit Manitoba to join the multi-lateral PRPPs agreement. Manitoba joins British Columbia, Nova Scotia, Ontario, Quebec, Saskatchewan and the federal jurisdiction as the newest province where PRPPs can be offered.
- Tracking the funded status of pension plans as at October 31, 2017 – Morneau Shepell shared the changes in the financial position of a typical defined benefit pension plan since December 31, 2016. The graph in the newsletter shows the impact of three typical portfolios on plan assets and the effect of interest rate changes on solvency liabilities of medium duration.
- Impact on pension expense under international accounting as at October 31, 2017 – Morneau Shepell shows the expense impact for a typical pension plan that starts the year at an arbitrary value of 100 (expense index). Since the beginning of the year, the pension expense has increased by 15 per cent (for a contributory plan) due to the decrease in the discount rates.
About Morneau Shepell
Morneau Shepell is the only human resources consulting and technology company that takes an integrated approach to employee assistance, health, benefits and retirement needs. The Company is the leading provider of employee and family assistance programs, the largest administrator of retirement and benefits plans and the largest provider of integrated absence management solutions in Canada. As a leader in strategic HR consulting and innovative pension design, the Company helps clients solve complex workforce problems and provides integrated productivity, health and retirement solutions. Established in 1966, Morneau Shepell serves approximately 20,000 clients, ranging from small businesses to some of the largest corporations and associations. With more than 4,000 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.
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