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
We are pleased to present the twelfth issue of Discovery, Stewart McKelvey’s legal publication targeted to educational institutions in Atlantic Canada. Our lawyers provide insight on a number of topics facing universities and colleges including…
Read MoreBy Kyle S. Hartlen, Gavin Stuttard, and Colton Smith What is the Innovation Equity Tax Credit? The Nova Scotia Innovation Equity Tax Credit (“IETC“) is a non-refundable personal and corporate income credit intended to encourage…
Read MoreBy Deanne MacLeod, K.C., Burtley G. Francis and David F. Slipp In June 2022, Canada’s federal government enacted a number of changes to the Competition Act (the “Act”) as the first step in a comprehensive…
Read MoreThis article was updated on April 19, 2023. By Mark Tector and Ben Currie On April 12, 2023 Bill 256: Patient Access to Care Act received Royal Assent. Schedule B of the Bill is the…
Read MoreThis Thought Leadership article is a follow-up to our January 2023 article on the introduction of the Prohibition on the Purchase of Residential Property by Non-Canadians Act. By Brendan Sheridan On January 1, 2023, the…
Read MoreBy Kevin Landry and Jahvon Delaney Background On March 25, 2023, the Government of Canada released a Notice of Intent titled Consultation on potential amendments to the Cannabis Regulations. The Notice outlines that Health Canada is…
Read MoreBy Kimberly Bungay On April 1, 2023, the Nova Scotia government will proclaim into force Bill 226, which amends the Companies Act (the “Act”) to require companies formed under the Act to create and maintain…
Read MoreBy Chad Sullivan and Kathleen Starke Background A recent decision, Vail v. Oromocto (Town), 2022 CanLII 129486, involved several grievances including an unjust dismissal claim by a firefighter as well as a grievance filed by…
Read MoreBy Stuart Wallace and Kim Walsh On January 1, 2022, the Underused Housing Tax Act (the Act) took effect. The Underused Housing Tax (the UHT) is an annual 1% tax on the value of vacant or…
Read MoreBy: David F. Slipp and Levi Parsche In May 2022, Bill 96 was adopted by Quebec’s National Assembly, significantly amending the Charter of the French Language (the “Charter“). The amendments create new requirements for using…
Read More