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Ontario Employer Advisor Keeping Employers Advised on Developments in Labour and Employment Law

Tag Archives: pensions

DB Pension Plans and Ontario’s Consultation on Solvency Funding Rules – Now is the Opportunity for Employers to Speak Up

Posted in Benefits, Compensation, Pensions

Employers that sponsor defined benefit (“DB”) pension plans know that contribution requirements can be volatile and onerous, especially given current low interest rates.

The Ontario Government has taken note. In its recent consultation paper, Review of Ontario’s Solvency Funding Framework for Defined Benefit Pension Plans (“Consultation Paper”), the Government proposes several approaches to change the current DB funding rules, including the complete elimination of solvency funding (as Québec did earlier this year).

Comments on the Consultation Paper are due by September 30, 2016. The Ontario Government then intends to hold a second public consultation on any proposed funding reforms … Continue Reading

An Expanded Canada Pension Plan (and a Very Questionable Future for the Ontario Retirement Pension Plan)

Posted in CPP, Pensions

The Ontario Retirement Pension Plan (ORPP) seemed like a sure thing—until it wasn’t.

Yesterday, Bill Morneau, the federal Minister of Finance, and eight of ten provincial finance ministers did what many to this point thought was impossible: reach an agreement in principle to expand the Canada Pension Plan (CPP).

The agreement represents the first significant increase to CPP benefits since the program’s creation in 1965. It will affect almost all employers in Canada with employees outside Quebec.

While it looks likely that the agreement in principle will translate to formal finalization, many details remain to be released publicly. We are … Continue Reading