The federal government’s recent decision to transfer a $1.9 billion surplus from the Public Service Pension Plan to its general revenue is within its purview, says Mitch Frazer, a pension lawyer and managing partner at Mintz, Levin, Cohn, Ferris, Glovsky and Popeo. “[This situation is] slightly different because this plan is made by a statute and, […]
The National Institute on Ageing is addressing the issue of missing pension plan members, in a new report highlighting the challenges faced by plan administrators and individuals entitled to unclaimed pension benefits. The report provides a framework for decision-making and emphasizes the importance of collaborative efforts from all sectors — government agencies, plan sponsors, financial […]
An article on the impact of Canadian pension income on federal and provincial tax revenues was the most-read story on BenefitsCanada.com this past week. Here are the top five human resources, benefits, pension and investment stories of the last week: 1. Canadian pension income adding $24.5BN to federal coffers in 2025: report 2. So long foosball, hello […]
The Ontario Municipal Employees’ Retirement System is reporting inflation adjustment of 2.61 per cent, providing plan members with full inflation protection in 2025. The adjustment is calculated at 100 per cent of the percentage increase in the 12-month average consumer price index for the period ending in October over the average for the same period […]
With many Canadian defined benefit pension plans in a strong funded position, plan sponsors, particularly those with unionized workforces, are increasingly discussing the use of surplus funds, says Gavin Benjamin, a partner in the retirement and benefits solutions practice at Telus Health. The funded position of a typical Canadian defined benefit pension plan rose on […]
International Business Machines Corp. is transferring roughly US$6 billion in defined benefit pension obligations through a group annuity buyout. Prudential Financial Inc. will assume responsibility for making retirement benefit payments to roughly 32,000 retirees and their beneficiaries beginning Jan. 1, 2025. Read: IBM entering US$16BN pension risk transfer The transaction marks the second pension risk […]
Going through a divorce can be an extremely stressful and emotional experience and, unsurprisingly, the impacts can spill into the workplace. “[Employees may be] at work but waiting for that text from the lawyer — they’re distracted on what they’re going to do next in the proceedings,” says Brent Dul, executive vice-president at Randstad Canada. […]
Ontario’s proposed regulatory framework for target-benefit pension plans includes requirements that are more prescriptive than other jurisdictions and could result in additional costs and reduced benefits for plan members, said the Association of Canadian Pension Management. In an open letter, the ACPM noted the inclusion of policies — such as those determining funding and benefits, […]
Ontario’s small claims court has ruled that an employer’s letter, which described the benefits coverage that would exist following a divestment as ‘comparable’ to prior levels of coverage, didn’t create a contractual obligation to preserve past service benefits. “The decision makes a clear distinction between an informational announcement or other general information that is not […]
An Ontario Superior Court ruling that allowed IBM Canada Ltd. to retrospectively rectify drafting errors that created unintended additional pension benefits for employees on disability leave augurs well for plan sponsors seeking similar relief going forward. “The case clarifies that there is a specific test for rectification of pension plans and other unilateral instruments, which […]