A 2018 roundup of the top legal cases in the benefits industry
December 21, 2018 When considering the legal cases attracting the most attention from the pension and benefits industry in 2018, the Ontario Human Rights Tribunal’s decision in Talos v. Grand Erie District School Board was one of the most talked about of the year. “This case is important because plan administrators who previously relied on the Employment Standards […]
Saskatchewan to adopt super-priority for deemed trusts
January 23, 2019 Saskatchewan will soon be the latest jurisdiction to adopt an enhanced priority for deemed trusts created by its pension benefits legislation. The Pension Benefits Act establishes a deemed trust for amounts contributed by both employers and employees. Bill 151, which amends the province’s Personal Property Security Act, will create a super-priority for […]
How will OHIP+ rollback affect plan sponsors?
February 4, 2019 The Ontario government is proposing a rollback of OHIP+, which would restrict the free prescription drug coverage program to dependants under age 25 who aren’t covered by private plans. The previous Liberal government implemented the program in January 2018 with an estimated cost of $465 million annually. It covered all OHIP-insured dependants […]
Ontario court grants appeal for employee in long-term disability case
March 27, 2019 The Ontario Court of Appeal has ordered a full trial for an employee who sued for $300,000 in long-term disability benefits despite signing a document that released such claims. The decision in Swampillai v. Royal & Sun Alliance Insurance Co. of Canada reverses a lower court decision that summarily found the release to be […]
Pension industry welcomes clarity around electronic communications
May 22, 2019 Plan administrators are welcoming the increased clarity accompanying the amendment of Ontario’s Pension Benefits Act to allow for the electronic designation of beneficiaries and the re-issue of the Canadian Association of Pension Supervisory Authorities’ guideline No. 2, which establishes best practices for electronic communications in the pension industry. “Clarity on the ability to […]
Are elements of U.S. pension reform worthy of Canadian consideration?
February 13, 2020 The first major reform to the U.S. retirement system in a decade, the Setting Every Community Up for Retirement Enhancement Act, contains provisions that could be useful guides for Canadian legislators and regulators. Signed into law by President Donald Trump in December, the act, known as SECURE, is primarily aimed at addressing […]
Is scrutiny on the rise for long-term disability claims?
Julius Melnitzer | June 17, 2019 A recent RBC Insurance Services Inc. study found 45 percent of employees on disability claimed their workplaces pressured them to go back earlier than they felt they were able to do so. This is a significant increase from the 33 per cent of respondents who said the same in the previous year’s […]
B.C. Supreme Court holds non-trustee liable for pension losses
Julius Melnitzer | January 16, 2020 The British Columbia Supreme Court has found that an individual who was the “directing mind of a company,” but not a trustee of its pension plan, was personally liable for a contribution shortfall because he “knowingly assisted” the company in breaches of its fiduciary duties. “The case is a heads-up, especially […]
Ontario appeal court rules former IMAX exec may exercise stock options in reasonable period
Julius Melnitzer | January 21, 2020 The Ontario Court of Appeal has ruled that a wrongfully dismissed employee could take advantage of the stock options and restricted share units that vested during the reasonable notice period, despite language in the governing plans that cancelled unvested units on termination. The case, between IMAX Corp. and a former executive named Larry […]
Should employer-provided parking be considered a taxable benefit?
The Federal Court of Appeal has ruled that an airport parking pass provided to a flight attendant by a commercial airline is an employee benefit for the purposes of income because he received “economic value” from the pass despite the fact that the employer provided it to improve its employees’ reliability and flexibility. “The established […]