Pensions & Benefits Law

Ontario Releases More Draft Pension Regulations: Disclosure Requirements

Anthony Devir — Wed, 16 May 2012 10:02:50 -0500

Late last week, the Ontario government released another round of draft regulations. This time the focus is on disclosure of plan related documents to plan members, former members, retired members, and their spouses, as well as other specified persons. They include amendments with respect to the...

Does Your 401(k) Plan Have an Investment Policy Statement? That's Great, But Do Your Fiduciaries Follow It?

Carol Buckmann — Fri, 04 May 2012 08:05:29 -0500

Although investment policy statements are not required by the U.S. Employee Retirement Income Security Act (ERISA), it is highly recommended that every 401(k) plan have one. An investment policy statement (IPS) can protect the plan committee or other fiduciary responsible for investments by setting...

British Columbia Bill 38 Includes Some Novel Pension Reforms

Jonathan Marin — Thu, 03 May 2012 09:30:29 -0500

On April 30, 2012, British Columbia introduced Bill 38, Pension Benefits Standards Act, for first reading. If passed, the current British Columbia Pension Benefits Standards Act (PBSA) would be repealed and replaced in its entirety by Bill 38. Bill 38 marks the first significant amendments to...

Federal Budget Bill Includes Changes for LTD Plans Sponsored by Federally-Regulated Employers

Douglas Rienzo — Tue, 01 May 2012 12:24:28 -0500

The federal government followed up on its Budget announcement earlier this year by introducing Bill C-38, Jobs, Growth and Long-term Prosperity Act, for first reading. While much discussion of the Budget has focussed on proposed changes to Old Age Security (OAS) and Guaranteed Income Supplement -...

Ontario Releases Long-Awaited Draft Pension Regulations

Paul Litner — Mon, 30 Apr 2012 18:12:32 -0500

Almost two years after passing its initial amendments to the Ontario Pension Benefits Act (the PBA) in Bill 236 and Bill 120, the Ontario government has released the first round of regulations required to implement its pension reform agenda. The regulations, which are in draft form and subject to...

Ontario Government Announces Consultation with Public Sector Plans

Ian J.F. McSweeney — Fri, 27 Apr 2012 07:39:10 -0500

Following up on its 2012 budget, the Ontario government announced that it will begin consultations on a new legislative framework for jointly sponsored public sector pension plans (JSPPs). As the government indicated previously, their focus is to make public sector pension plans "more...

Have You Assumed Pension Termination Liability? Long Arm of the U.S. PBGC Reaches Non-U.S. Parent

Carol Buckmann — Fri, 20 Apr 2012 08:07:12 -0500

One of the most difficult rules for our non-U.S. based clients to accept is controlled group liability for plan termination under Title IV of the Employee Retirement Income Security Act of 1974, as amended (ERISA). Under these rules, all members of the controlled group may be jointly and severally...

Pension Plan Restructuring (Part I)

James Fera — Thu, 12 Apr 2012 08:51:25 -0500

These days, many plan sponsors are looking to exit the defined benefit (DB) world – largely for the following reasons: they want to cut benefit funding and administration costs, as market volatility and low interest rates drive up solvency deficits and make planning more...

Ontario Budget Bill 55: PBA Amendments

Ian J.F. McSweeney — Fri, 30 Mar 2012 10:29:23 -0500

On March 27, 2012, the Ontario government introduced Bill 55, Strong Action for Ontario Act (Budget Measures), 2012, for first reading. Schedule 53 of Bill 55 sets out a number of amendments to the Ontario Pension Benefits Act (PBA) which relate to previous amendments that have not yet come into...

Ontario Budget: Implications for Private and Public Sector Pensions

Paul Litner — Wed, 28 Mar 2012 08:29:34 -0500

The Ontario government’s 2012 Budget, released yesterday, includes a number of announcements which will be of interest to administrators of both private and public sector pension plans. Some Good News for Private Sector Employers The government recognized that as a result of ongoing market...

FSCO to Make Electronic Filing Mandatory

Lesha Van Der Bij — Mon, 26 Mar 2012 09:10:50 -0500

In March of 2010, the Financial Services Commission of Ontario (FSCO) launched its Pension Services Portal (PSP), which enables plan administrators to file Annual Information Returns, Investment Information Summaries, Pension Benefits Guarantee Fund Assessment Certificates, Pension...

Quebec Budget Considers Voluntary Retirement Savings Plans

Julien Ranger-Musiol — Thu, 22 Mar 2012 11:33:01 -0500

On March 20th, the Quebec government introduced its 2012-2013 Budget. The Budget included a section on “Retirement”, which notes the “insufficient savings” of some Quebec workers and, in response, proposes the implementation of Voluntary Retirement Savings Plans...

Canadian Equity Compensation 101

Sandra Cohen — Wed, 14 Mar 2012 13:36:41 -0500

As US multinational companies (and their related cross-border activities) continue to grow and expand, US lawyers and human resources professionals may be asked to consider issues related to equity compensation for their Canadian-based employees more and more. US employers operating in Canada must...

Are You Ready for a DOL Audit? 401(k) and Pensions Plans are in the Crosshairs

Carol Buckmann — Mon, 12 Mar 2012 13:27:03 -0500

A recent report of U.S. Department of Labor (DOL) audit results contained some surprising statistics: almost 3 out of 4 audits find violations of the Employee Retirement Income Security Act of 1974 (ERISA) and the average cost for a plan to correct them, including fines and penalties, is $450,000....

Timminco Limited: CCAA Court Considers Fiduciary Obligations Post-Indalex

Ian J.F. McSweeney — Thu, 23 Feb 2012 09:34:47 -0500

Timminco Limited is among the first reported cases to be released following the Ontario Court of Appeal’s April 7, 2011 decision in Re Indalex. There are two Timminco decisions – Timminco 1 and Timminco 2. Indalex Recap Recall, that in Indalex, contrary to widely accepted principles...

OSFI Provides More Guidance re Letters of Credit

Lesha Van Der Bij — Thu, 16 Feb 2012 15:40:27 -0500

Over the past two years we have seen a number of amendments to federal pension legislation with respect to the funding of defined benefit (DB) plans (see April 1, 2010 and December 17, 2010 posts). These reforms include amendments permitting plan sponsors to use letters of credit in lieu of making...

Orpin v. Littlechild: Will Revokes Insurance Policy Beneficiary Designation

Douglas Rienzo — Fri, 13 Jan 2012 14:03:29 -0500

The cases of Richardson Estate v. Mew and Tower Estate v. Tower Estate considered whether a provision in a separation agreement can revoke a prior beneficiary designation. In Orpin v. Littlechild, at issue was a provision included in the will of the deceased, and whether it had the effect of...

Member Entitled to Deferred Pension Notwithstanding Earlier Payment of Small Pension

Ian J.F. McSweeney — Tue, 10 Jan 2012 16:13:15 -0500

Shortly (eight days) after a series of transactions under which Imasco Inc.’s Shoppers Drug Mart business was transferred to Shoppers Drug Mart Inc. (Shoppers) and then sold (share sale) to institutional investors, Mr. Boys’ employment with Shoppers was terminated. As part of the...

U.S. 401(k) Disclosure Is Coming-What To Do In January

Carol Buckmann — Wed, 21 Dec 2011 13:17:15 -0500

In prior blog posts, (see posts from October 26, 2010 and July 15, 2011) I have described new participant fee and investment disclosure requirements that will apply to 401(k) plans and other participant-directed defined contribution plans beginning May 31, 2012. Many participants will learn for the...

Federal Government Releases Draft PRPP Tax Rules For Consultation

Ian J.F. McSweeney — Thu, 15 Dec 2011 14:23:56 -0500

Following its introduction of Bill C-25 on November 17, 2011 (see my prior blog post), the federal government released for consultation a package of draft legislative proposals under the Income Tax Act to accommodate the creation of Pooled Registered Pension Plans (PRPPs) within the basic system of...