Withdrawal of real return bonds could financially impact DB pension plans: CIA
By: Julius Melnitzer | January 21, 2023 The Canadian Institute of Actuaries is urging the federal government to reconsider its cessation of real return bond issuances, citing the potential financial impacts to defined benefit pension plans. “We request not only that the decision to cease issuing real return bonds be reconsidered, but also that the […]
Ontario tribunal determines employer entitled to $320K pension surplus
By Julius Melnitzer | January 7, 2023 The Financial Services Tribunal of Ontario has allowed an employer to keep a $320,000 pension surplus, despite the plan’s trust agreements’ silence as to surplus entitlement. “The requirements for an employer to receive 100 per cent of surplus are strict, but the tribunal took a practical [approach] as […]
Employer’s prior conduct prohibits pension plan amendments, despite collective agreement terms: Ontario court
A recent Ontario Divisional Court ruling serves as a caution that employers’ prior conduct may prohibit them from amending pension plans even when the collective agreement clearly allows them to do so. “The takeaway from the decision is that employers’ discretion to amend plans will always be subject to labour law principles in cases that […]
SIGA liable for $1.2M in LTD benefits following termination without cause: Saskatchewan court
By Julius Melnitzer | November 15, 2022 The Saskatchewan Court of King’s Bench has held the Saskatchewan Indian Gaming Authority liable for more than $1.2 million in long-term disability benefits owed to a former employee whose benefits were cut off when he was fired and became permanently disabled during the notice period. “This case illustrates […]
Court rules employers must include electronic tips under pensionable earnings
By Julius Melnitzer | September 21, 2022 The Federal Court of Appeal has ruled that a Halifax restaurant must include a portion of the electronic gratuities intended for wait staff as “pensionable salary and wages” when calculating its liabilities under the Canada Pension Plan. The Federal Court of Appeal has ruled that a Halifax restaurant […]
Ontario court awards $210K in costs against FSRA in Brewers Retail pension case
By Julius Melnitzer | June 28, 2022 An Ontario Superior Court judge is awarding Brewers Retail Inc. $210,000 in costs against the Financial Service Regulatory Authority of Ontario. Justice Ed Morgan’s award followed his criticism of the regulator for defying a decision of its predecessor, the Financial Services Commission of Ontario. One veteran pensions litigator — speaking […]
Ontario judge cautions FSRA in certification of Brewers Retail pension class action
In certifying a pension class action by Brewers Retail Inc., an Ontario Superior Court judge denounced the Financial Services Regulatory Authority of Ontario for defying a decision of its predecessor, the Financial Services Commission of Ontario. Justice Ed Morgan certified the class on Feb. 10, 2022, setting the stage for a settlement approval hearing. In […]
New Brunswick to allow windup of pension plans with missing members
By Julius Melnitzer | January 3, 2022 New Brunswick’s new unclaimed property regime, which came into force on Jan. 1, 2022 and is the fourth such provincial regime in Canada, will finally allow defined benefit pension plan sponsors with unlocatable or missing members to fully windup their plans. The governing legislation, the Unclaimed Property Act, […]
Solvency reserve accounts missing from Manitoba’s new pension amendments
By Julius Melnitzer | October 20, 2021 Although Manitoba’s Pension Amendments Act takes effect on Oct. 1, pension plan sponsors are disappointed that the provisions allowing them to use reserve accounts to fund solvency deficiencies have been excluded from the proclamation. “The government has not indicated when the reserve account provisions will come into effect […]
Court of Appeal decision highlights importance of clear pension communications
By Julius Melnitzer | August 13, 2021 A recent Saskatchewan Court of Appeal decision illustrates the importance of clear communications from pension administrators seeking to avoid liability from lawsuits by claimants alleging they’re entitled to a plan member’s death benefits. “What it comes down to is that employers and pension plans that want to avoid […]