In its first federal budget, presented on March 22, the Liberal government announced a range of developments that will affect employers and the pension and benefits industries. They include:
- The investment of more than $120 billion in infrastructure over the next decade. The government said it would also seek additional funding from Canada’s pension funds.
Read more: Liberals to ‘engage public pension plans’ as part of infrastructure boost
- Consultations in the coming months to give Canadians an opportunity to share their views on enhancing the Canada Pension Plan.
Read more: Government to launch consultations on enhanced CPP
- Changes to the agreement powers of the Pension Benefits Standards Act.
Read more: Budget 2016 promises changes to pension regulations
- A consultation process on the investment rule that restricts pension plans from holding more than 30 per cent of the voting shares of a company.
Read more: Government to consult on usefulness of 30% investment rule
- A commitment to provide more flexibility in parental leave benefits and make compassionate care benefits easier to access and more flexible and inclusive.
Read more: Government commits to improve compassionate care leave and parental leave benefits
- A proposal to cancel the provisions in the Old Age Security Act that increase the age of eligibility for old-age security and guaranteed income supplement benefits from 65 to 67 and allowance benefits from 60 to 62 over the 2023-29 period.
Read more: Changes to OAS and GIS benefits confirmed
- Providing $39 million over three years, starting in 2016-17, to the Canadian Foundation for Healthcare Improvement, with the aim of supporting ongoing efforts to identify and introduce innovations in the health-care system.
Read more: Government commits $39 million to foundation for healthcare improvement
- After Finance Minister Bill Morneau stated there would be a $100,000 cap on favourable tax treatment for stock options, the budget has left the existing regime in place — at least for now.
Read more: Liberals spare stock options
For more quick hits on the budget, visit Benefits Canada‘s companion site, Advisor.ca