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
Ruth Trask and John Samms Newfoundland and Labrador employers who continued operations this spring during Alert Levels 4 and 5 of the COVID-19 pandemic should take note of a new program offered by the provincial…
Read MoreChristopher Marr, TEP & Lauren Henderson As defined benefit pension plans (“DB Plans”) throughout Canada continue to face funding challenges due to mounting solvency deficits, the New Brunswick Financial and Consumer Services Commission (“FCNB”) is…
Read MoreJennifer Taylor The Supreme Court of Nova Scotia has acknowledged the ongoing impact of systemic racism against African Nova Scotians in an important decision on the Land Titles Clarification Act (“LTCA”). The case,…
Read MoreEffective July 1, 2020, the North American Free Trade Agreement (“NAFTA”) was officially replaced by the Canada-United States-Mexico Agreement (“CUSMA”). Like NAFTA, CUSMA contains provisions for the temporary entry of foreign “business persons” to Canada…
Read MoreKillian McParland and Jennifer Thompson In a decision released earlier today, Uber Technologies Inc. v. Heller¹, the Supreme Court of Canada determined that an agreement requiring Uber drivers to go to arbitration instead of suing…
Read MoreStephanie Stapleford, Mike Carver, Matthew Craig, Kimberly MacLachlan and Christine Pound Part 2: Electronically-Signed Share Certificates The COVID-19 crisis, and federal, provincial and local government directives for individuals to continue complying with social distancing policies…
Read MoreJoe Thorne and Kara Harrington Vexatious litigants are a category of persons who misuse the court process through repeated improper, abusive, and/or meritless proceedings. Vexatious litigants may take many forms, but ultimately they are a…
Read MoreWe are pleased to present the sixth issue of Discovery, our very own legal publication targeted to educational institutions in Atlantic Canada. During these unprecedented times, universities and colleges are encountering unique challenges of working…
Read MoreTwila Reid and John Samms On Friday, June 12, 2020, the Government of Newfoundland and Labrador announced it has extended the time period under section 50 of the Labour Standards Act (“the Act”) that converts…
Read MoreKathleen Leighton Those who have vacation homes or cottages in Canada may be starting to form their summer plans as temperatures begin to rise. However, the ongoing pandemic has resulted in a host of…
Read More