Ontario government seeking comments from the public on solvency funding reform
August 18, 2016
In the August 2016 issue of its monthly newsletter, News & Views, Morneau Shepell looks at some of the revisions to recent legislation throughout Canada. Comments from the public are welcomed to ensure these amendments will best represent public opinion.
- Canada Pension Plan (CPP) Expansion Update – Earlier this year, finance ministers reached a deal to enhance the CPP. The deal – meant to be ratified by July 15 – is on hold as B.C. Premier Christy Clark takes additional time to address the opposition and highlight the merits of the enhancement throughout the province. The deal is still likely to be ratified, but it is not clear when this will happen. At this time, all of the other provinces and the federal government have accepted the enhancement, with the exception of Quebec who will put forth a proposal for changing the QPP in the fall.
- Ontario: Consultation on solvency funding reform – On July 26, 2016 the Ontario Ministry of Finance released a consultation paper on solvency funding reform. The consultation paper outlines a set of potential reforms to the funding regime for Ontario-registered defined benefit pension plans. Public comments are requested by September 30, 2016 and Morneau Shepell will be preparing a submission.
- Ontario: Solvency funding relief for certain public sector pension plans – Ontario's proposed legislative amendment will allow sponsors of broader public sector pension plans to temporarily reduce the minimum-required level of solvency funding. Members of the public are welcome to submit comments on the proposed regulation by September 9, 2016.
- Quebec: Draft regulation to amend the regulation respecting supplemental pension plans – A draft regulation, which was published in the Gazette officielle du Québec on July 20, 2016, is intended to set out various measures enacted by the Act to amend the Supplemental Pension Plans Act mainly with respect to the funding of defined benefit pension plans.
- 2016 Survey: Economic assumptions for accounting – Morneau Shepell issued its 16th annual survey studying the economic assumptions used by Canadian public companies to account for the costs of their defined benefits plans. Key highlights are outlined in the August News & Views.
- Tracking the funded status of pension plans as at July 31, 2016 – Morneau Shepell shares details on the evolution of the financial situation of a typical defined benefit plan since December 31, 2015.
- Impact on pension expense under international accounting as at July 31, 2016 – Morneau Shepell shows the expense impact for a typical pension plan that starts the year at an arbitrary value of 100.