Amidst all of the talk about transparency in the investment industry, the dialogue around refundable fees has been on the quiet side. Also known as symmetric fees, they go up when the performance is good and down when it’s bad. Take a manager earning a fixed fee of 0.65 per cent with a symmetric component […]
New DB pension proposals in Quebec, Ontario tackle annuity purchases.
New draft regulations published in Quebec this summer address policies around annuity purchases for defined benefit pension plans for the first time. Industry stakeholders have been expecting the province’s regulations, which are currently under consultation, since Jan. 1, 2016, when Quebec implemented legislative changes that replaced its solvency regime with enhanced going-concern funding rules and required […]
While flexible benefits plans are a clear trend among Canadian employers, the range of choices can be daunting for employees. So how much choice is too much? That was a question Pitney Bowes Inc. considered when it redesigned its benefits plan in 2015. As part of the changes, the company trimmed its menu of mix-and-match […]
While the federal government’s plan to extend parental benefits under the employment insurance program to 18 months is a welcome move for some working parents, it could create a number of issues for employers that provide top-up programs to their staff. With the potential to create added costs and administrative complexities, the change to a […]
Saskatchewan begins applying its new six per cent sales tax on insurance premiums on Aug. 1. Will the new tax be a significant cost to employers that will discourage them from offering benefits or is it a small amount that will have little impact on their plans? Debra Wiegers, benefits consultant and head of the […]
Former Sears Canada Inc. employees who opt to take the commuted value of their defined benefit pension are facing an immediate 19 per cent reduction in their entitlements. According to an update to former employees from their legal counsel, Koskie Minsky LLP, the reduction is a result of the underfunding in the Sears pension plan. As […]
A recent decision by the Superior Court of Ontario has confirmed that working notice doesn’t count when an employee is away from work due to medical factors. The case, McLeod v. 1274458 Ontario Inc., dealt with Keith McLeod, who had worked as a mover at Frontier Sales in Scarborough, Ont., since 1998. In September 2015, he […]
Sears Canada Inc. has reversed course and will continue to make special payments to its defined benefit pension plan and provide post-employment benefits plans until Sept. 30, 2017. Have your say: Does the Sears Canada case signal the need for changes to better protect employees? The agreement, which the company reached with employees and retirees […]
KPMG LLP has run its first series of retirement education sessions through in-person workshops, one-on-one meetings and a version on Skype for employees at its smaller locations. The firm introduced the sessions in May after a 2015 pilot program with a small group of employees found people wanted to receive more education about their retirement savings. […]