Revised multi-jurisdictional pension plan agreement signed by BC, NS, Ontario, Quebec and Saskatchewan
These and other subjects are covered in the current issue of the Morneau Shepell News & Views
TORONTO, June 20, 2015 /CNW/ - In the June 2016 issue of its monthly newsletter, News & Views, Morneau Shepell looks at changes in government regulations and how they affect pension plans across the country, including Ontario's move to renew solvency relief and reintroduce temporary restrictions on contribution holidays.
- Ontario adopts new regulations June 3, 2016 – The regulations adopted under the Ontario Pension Benefits Act will extend for an additional three years the temporary solvency funding relief measures previously provided to private sector defined benefit (DB) pension plan sponsors in 2009 and 2012. At the same time, the regulations impose additional restrictions on contribution holidays for DB plans registered in Ontario, identical to those in place from 2010 to 2013.
- Government representatives of five provinces sign multi-jurisdictional pension plan agreement – On June 2, 2016, the Canadian Association of Pension Supervisory Authorities ("CAPSA") announced that representatives of the governments of British Columbia, Nova Scotia, Ontario, Quebec and Saskatchewan have signed a new interim Agreement Respecting Multi-Jurisdictional Pension Plans, which is intended to come into effect for these jurisdictions on July 1, 2016 (the "2016 MJPP Agreement"). The agreement was negotiated as an interim measure while CAPSA coordinates amendments to the agreement that will address the changing solvency funding regimes across Canadian pension jurisdictions.
- Federal Finance Department launches consultation on the 30 per cent investment rule for pension plans – The objective is to assess the usefulness of the investment rule which currently restricts federally regulated pension plans from holding more than 30 per cent of the voting shares of a company ("the 30% rule"). The rule also affects plans under provincial jurisdiction, as provincial rules incorporate the federal investment rules by reference, except in New Brunswick and Quebec.
- 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, December 31, 2015 to May 31, 2016.
- Impact on pension expense under international accounting – Expense impact for a typical defined benefit pension plan, December 31, 2015 to May 31, 2016.
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Morneau Shepell is the only human resources consulting and technology company that takes an integrative approach to employee assistance, health, benefits and retirement needs. 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 approximately 20,000 clients, ranging from small businesses to some of the largest corporations and associations in North America. With almost 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.
SOURCE Morneau Shepell - Corporate