Ontario offers deferral of DB employer contributions
An in-depth look at this and other subjects are covered in the current issue of the Morneau Shepell News & Views
TORONTO, Oct. 26, 2020 /CNW/ - Morneau Shepell released the October 2020 issue of its monthly newsletter, News & Views, in which the company looks at the following topics:
- Ontario offers deferral of DB employer contributions – A new regulation permits Ontario employers to defer their defined benefit (DB) pension contributions due from October 1, 2020 to March 31, 2021. Employers who make this election will be subject to a number of prohibitions and restrictions until the deferred contributions are made to the pension fund, and are required to file updates including prescribed information throughout the deferral period.
- FSRA releases draft supervisory approach to DB asset transfer applications – The Financial Services Regulatory Authority of Ontario (FSRA) has published a new draft guidance document on DB asset transfers between pension plans. The guidance provides examples of variances to asset transfer requirements that FSRA may consider approving. FRSA has also released new information disclosure forms to accompany asset transfer applications.
- Ontario extends the COVID-19 deemed leave of absence period – Ontario has extended its Infectious Disease Emergency Leave until January 2, 2021. The job-protected leave had originally been scheduled to end on September 4, 2020.
- Alberta requires amendments and other documents to be filed online – The Alberta Superintendent of Pensions has introduced revisions to its online filing system. All audited financial statements, plan texts and amendments, and fund holder documents that are required to be filed under pension legislation must now be filed online.
- Tracking the funded status of pension plans as at September 30, 2020 – Morneau Shepell describes the funded status of pension plans since December 31, 2019 based on three typical investment portfolios. A graph shows the changes in the financial position of a typical defined benefit plan since the end of 2019. A table shows the impact of past returns on plan assets and the effect of interest rate changes on solvency liabilities of a medium duration pension plan.
- The impact of pension expense under international accounting as at September 30, 2020 – Morneau Shepell has shown the evolution of the pension expense for a typical defined benefit pension plan. Since the beginning of the year, the pension expense has increased by 12 per cent (for a contributory plan) mainly due to the decrease in the discount rates.
About Morneau Shepell
Morneau Shepell is a leading provider of technology-enabled HR services that deliver an integrated approach to employee wellbeing through our cloud-based platform. Our focus is providing world-class solutions to our clients to support the mental, physical, social and financial wellbeing of their people. By improving lives, we improve business. Our approach spans services in employee and family assistance, health and wellness, recognition, pension and benefits administration, retirement consulting, actuarial and investment services. Morneau Shepell employs approximately 6,000 employees who work with some 24,000 client organizations that use our services in 162 countries. Morneau Shepell is a publicly traded company on the Toronto Stock Exchange (TSX: MSI). For more information, visit morneaushepell.com.
SOURCE Morneau Shepell Inc.