Last week’s federal budget proposed more borrowing flexibility for registered defined benefit plans. The proposal would replace the historical 90-day term limit on short-term borrowing with restrictions based on plan assets: additional borrowed money can’t exceed the lesser of 20 per cent of the plan’s assets and the amount by which 125 per cent of […]
As arbitral decisions relating to the reasonableness of mandatory coronavirus vaccination policies emerge, employers have clearly gained the upper hand. “The overall box score shows that, for the most part, arbitrators have upheld mandatory vaccination policies as reasonable,” says George Vassos, a labour and employment partner at Littler Mendelson. “In the most recent case, involving […]
In certifying a pension class action by Brewers Retail Inc., an Ontario Superior Court judge denounced the Financial Services Regulatory Authority of Ontario for defying a decision of its predecessor, the Financial Services Commission of Ontario. Justice Ed Morgan certified the class on Feb. 10, 2022, setting the stage for a settlement approval hearing. In […]
The Ontario Court of Appeal is refusing to consider an appeal from Ontario’s Divisional Court judgement that affirmed employees’ right to sue for wrongful and constructive dismissal in the civil courts in cases of chronic mental stress arising from workplace harassment. “The case makes it very difficult for human resources professionals to give definitive advice […]
New Brunswick’s new unclaimed property regime, which came into force on Jan. 1, 2022 and is the fourth such provincial regime in Canada, will finally allow defined benefit pension plan sponsors with unlocatable or missing members to fully windup their plans. The governing legislation, the Unclaimed Property Act, received Royal Assent in March 2021, but […]
A Federal Court of Appeal ruling will make it very difficult for executives and employees to treat share transfers from their companies as capital gains rather than income. The decision involved Kitchener, Ont.-based D2L Corp., whose intention was to distribute appreciated shares of the company, held in a trust, to various employees. In turn, the […]
The Ontario Court of Appeal has overturned a Superior Court decision that allowed an employee to receive his stock option awards throughout his 24 months of reasonable notice on the grounds that the employer had failed to provide adequate notice of termination. “The decision gives important guidance to employers about what will be appropriate in […]
Although Manitoba’s Pension Amendments Act takes effect on Oct. 1, pension plan sponsors are disappointed that the provisions allowing them to use reserve accounts to fund solvency deficiencies have been excluded from the proclamation. “The government has not indicated when the reserve account provisions will come into effect and sponsors are anxious because they would […]
Ontario’s Divisional Court is affirming employees’ right to sue for wrongful and constructive dismissal in the civil courts in cases of chronic mental stress arising from workplace harassment. “That’s important because workplace compensation claims by employees suffering from mental stress as a result of harassment might increase an employer’s premiums slightly, but not nearly as […]
A recent Saskatchewan Court of Appeal decision illustrates the importance of clear communications from pension administrators seeking to avoid liability from lawsuits by claimants alleging they’re entitled to a plan member’s death benefits. “What it comes down to is that employers and pension plans that want to avoid lawsuits from plan members claiming to be […]