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
2015 ends with changes in workplace laws that our region’s employers will want to be aware of moving into 2016. Some legislation has been proclaimed and is in force, some has passed and will be…
Read MoreThe Island Regulatory and Appeals Commission (the “Commission”) has issued a holiday reminder to municipalities in Prince Edward Island about the importance of preparation, accuracy, and transparency when making decisions related to land use and…
Read MoreBy Brian G. Johnston, QC On the same day that the Nova Scotia government announced its projected deficit had ballooned to $241 million, it also introduced Bill 148, the Public Services Sustainability (2015) Act (“Act”). The stated purposes…
Read MoreBy Jennifer Taylor – Research Lawyer Nova Scotia’s Cyber-safety Act1 is no more, after a successful Charterchallenge to the legislation. In Crouch v Snell, 2015 NSSC 340, Justice McDougall of the Supreme Court of Nova Scotia found the entire statute—enacted in…
Read MoreBy Jennifer Taylor Introduction: Did Ontario have jurisdiction? Arguments about access to justice are not enough to oust the general principles of jurisdiction, according to a recent Ontario case. In Forsythe v Westfall, 2015 ONCA 810, the…
Read MorePART I: THE NSCA DECISION IN BRINE “Disability insurance is a peace of mind contract”: that’s the opening line of the Nova Scotia Court of Appeal’s long-awaited decision in Industrial Alliance Insurance and Financial Services Inc…
Read MoreThe taxation of estates, testamentary trusts and certain “life interest trusts” such as alter ego, joint partner and spousal trusts, and the rules for charitable donations made on death through an estate are changing significantly…
Read MoreSeveral important changes in the tax rules that apply to charitable gifts will be coming into effect in the near future. Some of the new rules take effect in 2016, and others will apply beginning…
Read MoreTHE EDITORS’ CORNER Michelle Black and Sean Kelly Trick, Treat or … Taunt? Workplace Bullying and Harassment Fall has arrived! The leaves are changing colours, families are stockpiling Halloween candy (some of which will actually last long…
Read MoreBy Jennifer Taylor – Research Lawyer With the federal election just days away, voting is on Canadians’ minds. This will be the first election conducted in accordance with the Fair Elections Act, SC 2014, c 12 [“FEA”] which…
Read More