Pensions & Employee Benefits Update: Nova Scotia pension funding framework & regulatory review
Peter McLellan, QC & Level Chan
In September 2017, Nova Scotia’s Department of Finance and Treasury Board announced that stakeholder input is being sought regarding potential permanent changes to the funding framework for defined benefit pension plans for Nova Scotia.
There is no indication as to any preferred course of action for Nova Scotia; however the discussion paper does summarize what has been done in the past in Nova Scotia – predominantly temporary solvency relief (and permanent solvency relief for certain quasi-public sector plans) – and also references what has been done in other jurisdictions, notable Ontario and Quebec. This is an important opportunity for sponsors of defined benefit pension plans in Nova Scotia to have input on the regime on a go forward basis in Nova Scotia:
- Do we maintain the status quo (full solvency funding)?
- Do we eliminate solvency funding and enhance going concern funding (e.g. the Ontario approach)?
- Do we reduce solvency funding – i.e. from 100% to 85%?
Input is also being sought on a number of regulatory issues including:
- Should Nova Scotia proceed with providing for target benefit plans? If so, should they be restricted to unionized workplaces and should defined benefit plans be permitted to convert to target benefit plans, including accrued benefits?
- What restrictions should apply to annuity buy-outs?
- Should Nova Scotia mirror or adopt recently updated federal investment regulations?
The Province has set a deadline of Friday, November 10, 2017 for stakeholder input.
Our Pensions and Employee Benefits Group would be pleased to discuss this review with you and to assist in any submissions to be made to the Province.
Archive
In preparing for the 2020 Proxy season, you should be aware of some of the regulatory developments and institutional investor guidance that is likely to impact disclosure to, and interactions with, shareholders. This update highlights…
Read MoreJennifer Thompson Nova Scotia’s Premier’s Office has today made an unexpected announcement regarding several changes to be made to Nova Scotia’s minimum wage and partial hours rules, with effect from April 1, 2020. Additional increase…
Read MoreKathleen Leighton For individuals whose Permanent Resident Cards (“PR Cards”) have expired, it can be a time of panic. “Did I lose my status?”, “Do I have to leave the country immediately?”, “Can I still…
Read MoreDante Manna The Nova Scotia Government is seeking input by way of public survey or written submissions on proposed changes to family property law that would, among other things, affect pension division between former spouses.…
Read MoreAtlantic Canada experienced a number of legal developments in 2019 that regional employers should be aware of as they plan for the year ahead. Click the image below to read our 2019 year in review,…
Read MoreG. Grant Machum & Richard Jordan On December 20, 2019, the Supreme Court of Canada released its decision in Canada Post Corporation v. Canadian Union of Postal Workers, 2019 SCC 67. This case involved a…
Read MoreLevel Chan and Dante Manna In this update we provide what we see on the employee benefits and pension plans legal horizon in 2020 and beyond, along with a review of some highlights from 2019.…
Read MoreJennifer Thompson The Accessible Canada Act (“Act”) came into force on July 11, 2019, ushering in the start of a march towards a Canada without barriers for persons with disabilities. While the Act only applies…
Read MoreKathleen Leighton If you employ an individual who holds a work permit to authorize their work in Canada, you likely have various obligations to adhere to and can face significant consequences if your business is…
Read MoreDavid Constantine and Joe Thorne In the recent Supreme Court of Canada decision in Desgagnés Transport Inc v Wärtsilä Canada Inc, 2019 SCC 58, the court examined how provincial statutes and the federal maritime law…
Read More