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 eighth issue of Discovery, our very own legal publication targeted to educational institutions in Atlantic Canada. With COVID-19 vaccines rolling out across the country, a renewed sense of hope is…
Read MoreDante Manna with the assistance of Kali Robertson (summer student) The Nova Scotia Government recently released regulations reassigning the authority for administering financial hardship unlocking in the province. Effective July 1, 2021, individuals will apply directly…
Read MoreBrittany Trafford The Canadian borders have been restricted for over a year now and many families have struggled with being separated. Throughout 2020 and early 2021 restrictions have fluctuated as the federal government tried to…
Read MoreHarold Smith, QC with the assistance of Matthew Raske (summer student) A recent labour arbitration decision, Unifor Local 64 and Corner Brook Pulp and Paper Limited, shows how the permissibility of drug and alcohol testing continues…
Read MoreBrittany Trafford Last week the Maritime provinces announced various re-opening plans based on vaccine trajectories, with Newfoundland and Labrador making an announcement today¹. These plans address, among other things, who will be able to enter…
Read More*Last updated: May 31, 2021 (Originally published April 1, 2020) Kathleen Leighton Due to the COVID-19 pandemic, there are various implications for the immigration world, including for those already in Canada, as well as those…
Read MoreKatharine Mack Premier Ian Rankin and Chief Medical Officer of Health Dr. Robert Strang provided details on Nova Scotia’s reopening plan this afternoon. The Province’s plan has a total of 5 phases. Phase 1, which focuses…
Read MoreChad Sullivan A recent labour arbitration decision (Canadian Broadcasting Corp. and Canadian Media Guild (Khan), Re, 2021 CanLII 761) provides another example of how privacy law continues to evolve and can directly impact the outcome…
Read MoreKevin Landry and Annelise Harnanan (summer student) In April 2021, the federal government introduced the draft Retail Payments Activities Act (“RPAA”) as part of Bill C-30, the Act to implement the 2021 federal budget. Under…
Read MoreChristopher Marr, TEP and Level Chan with the assistance of Annelise Harnanan (summer student) On May 20, 2021, the New Brunswick Financial and Consumer Services Commission (“FCNB”) released a revised version of one of its…
Read More