How U.S. compensation clawback legislation could impact Canadian employers
By Julius Melnitzer | July 20, 2023 New U.S. Securities and Exchange Commission listing requirements that impact compensation clawbacks could create conflicts with domestic employment laws for Canadian companies listed on U.S. stock exchanges. The rules are expected to take effect on Oct. 2, 2023, with compliance mandated by Dec. 1, 2023. They require all […]
Quebec court rules municipal sector pension law unconstitutional for retirees, justified for active members
By Julius Melnitzer | July 1, 2023 The Quebec Court of Appeal has ruled the province’s Bill 15, which substantially modified municipal sector pension plans, is unconstitutional with respect to retirees but justified for active plan members. The legislation, which was passed in 2014, adopted a cost-sharing formula for plans and plan deficits, established a shared-cost stabilization […]
Ontario court overturns $249K judgment against employer that denied worker LTD benefits
By Julius Melnitzer | May 31, 2023 The Ontario Court of Appeal has overturned a $248,931 judgment against an employer that denied long-term disability benefits to an employee, citing the trial judge’s misinterpretation of eligibility requirements. “The employee’s position was that he was on temporary medical leave, but he had been working until the day […]
How will crypto disclosure rules impact federally regulated pension plans?
By: Julius Melnitzer | April 25, 2023 In its 2023 budget, the federal government announced plans to require that federally regulated pension plan sponsors disclose their cryptocurrency asset exposure. To that end, the Office of the Superintendent of Financial Institutions will be consulting with impacted organizations on the content of the forthcoming guidelines. “Just how these guidelines […]
The case for employee ownership trusts
By Julius Melnitzer | March 29, 2023 Tuesday’s federal budget finally provided Canadian businesses with the promise of a vehicle — the employee ownership trust (EOT) — that incentivizes business owners to sell their businesses to their employees. The budget contemplates that rules governing the EOTs will come into effect on January 1, 2024. “EOTs […]
Termination of LTD benefits for Air Canada workers eligible to receive unreduced pension benefits doesn’t amount to age discrimination: court
By Julius Melnitzer | March 6, 2023 The Federal Court has ruled that the termination of long-term disability benefits for employees who become eligible to receive unreduced pension benefits doesn’t amount to age discrimination. The case arose from the terms of a collective bargaining agreement between Air Canada and the Air Canada Pilots Association. The […]
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 […]