Home Greg Hurst

The great CPP debate: Expanding the CPP is a golden opportunity

Canada’s pension system has a large problem that needs addressing—and the sooner, the better. Our pension system is often characterized as a stool supported by three legs: public pensions, in the form of the Canada Pension Plan (CPP) and old age security (OAS); workplace pensions [registered pension plans (RPPs)] featuring employer and some employee contributions; and personal retirement savings via RRSPs for individual contributions.

  • February 1, 2014 September 13, 2019
  • 07:01

Why CPP expansion is inevitable

I am now going to publicly flip-flop and add my voice to calls for CPP expansion, which I now believe to be an inevitable development.

  • November 13, 2013 September 13, 2019
  • 12:48

Retooling pension custody for GST/HST reporting

In the closing paragraph of my last column, I stated that few pension custodians currently provide adequate recordkeeping for GST/HST purposes and made the promise to delve further into that topic with this column.

  • September 20, 2013 September 13, 2019
  • 09:57

Have you claimed your GST/HST credits on pension plan expenses?

The cloud of complex new GST/HST rules affecting pension plans that came into effect in 2010 has a significant silver lining for many pension plan sponsors, particularly if they had not been maximizing GST input tax credits (ITCs) on pension-related expenses prior to the new rules. In fact, many (if not most) employers were not maximizing ITCs prior to 2010 as the administrative policy published by the Canada Revenue Agency discouraged them from doing so. This policy was, however, struck down by the courts in a case involving General Motors Canada and this legal result that was contrary to the tax policy intentions of the federal government was the genesis of the new GST/HST deemed supply and pension entity rebate rules.

  • July 17, 2013 September 13, 2019
  • 10:18

The hidden DB in DC plans

The greatest attraction of a DB pension plan is the appearance of certainty in the levels of retirement income it promises to its members, which contrasts with the uncertainty of retirement income levels that a DC pension plan can provide to its members.

  • May 7, 2013 September 13, 2019
  • 10:27

Is investment choice necessary?

The first DB to DC pension plan conversion I was involved in took place in 1986. Back then, a DC pension plan was called a money purchase pension plan, which nomenclature remains in the Income Tax Act relating to such plans. In 1986, upon retirement under a money purchase pension plan retirement income was provided by way of a life annuity purchased from the value of the pension account balance, hence “money purchase.”

  • March 13, 2013 September 13, 2019
  • 06:50

Confusion over pension GST/HST

If you ask a registered pension plan administrator that has been dealing with GST/HST pension rebates and other tax filings what the acronym CRA stands for, it might suggest “confused revenue agency” or “confounded revenue agency.” Stories abound over pension entity rebate claims denied, time-wasting audits and reviews over small amounts, and demands to provide additional information and filings.

  • November 29, 2012 September 13, 2019
  • 09:34

Is the PRPP dead?

The only news around pooled registered pension plans (PRPPs) today seems to be coming from the federal Department of Finance, Ted Menzies, Minister of State (Finance)in particular, who has been stewarding the PRPP initiative.

  • October 19, 2012 September 13, 2019
  • 08:27

PRPP inducements: What they mean for employers

Pooled registered pension plans (PRPPs) will be attractive to employers that wish to shed the risks associated with the fiduciary obligations for employers that offer traditional retirement programs. The new draft PRPP regulations, released on August 13, further stack the deck in favour of employer abandonment of RPP sponsorship by baldly permitting employers to demand, or PRPP providers to offer, inducements to transfer membership and assets from traditional plans to a PRPP.

  • August 17, 2012 September 13, 2019
  • 10:58

GST/HST rules mark second anniversary

Just two years ago, on July 12, 2010, the new GST/HST legislative regime that affects pension and other employee benefits plans was passed into law. The new rules are painfully complicated, and there are lessons to be learned from the trials and tribulations of achieving compliance with them.

  • July 16, 2012 September 13, 2019
  • 11:54