On June 4, 2024, the Financial Services Regulatory Authority (FSRA) of Ontario released their final guidance regarding retroactive adverse amendments. In the guidance, FSRA is prohibiting pension plan administrators from registering retroactive adverse amendments that could negatively affect plan members or beneficiaries, such as changes to contribution rates, with some exceptions. The new guidance is […]
On September 9, 2024, the Canadian Association of Pension Supervisory Authorities (CAPSA) published their highly anticipated revisions to the CAPSA Guideline No. 3. Background The Guidelines for Capital Accumulation Plans (CAP Guidelines) were first issued in May 2004 by the Joint Forum of Financial Market Regulators to outline regulators’ expectations for workplace CAP operations, regardless […]
by June Smyth and John Melinte In 1993, Bill Webb was working for a Canadian bank when all employees were offered a choice between keeping their Defined Benefit (DB) Pension Plan or converting to a (new) Defined Contribution (DC) option. At the time, interest rates were high and with the dot.com boom, equity markets were […]
Source: www.cra-arc.gc.ca and www.canada.ca If you have any questions about these government benefits and limits, please contact June Smyth at 416-863-9159 ext 233. […]
Effective November 28, 2022, FSRA proposed an increase to their pension-sector fees to a minimum of $1,000. The prior fee change in 2019 saw an increase from $250 to $750. The fee is dependent on the number of beneficiaries in the plan, with plans of 91 beneficiaries or fewer subject to a fee of $1,000. […]
Source: www.cra-arc.gc.ca and www.canada.ca If you have any questions about these government benefits and limits, please contact June Smyth at 416-863-9159 ext 233. […]
A new report published by C.D. Howe Institute suggests that plan sponsors should avoid prioritizing Social, Environmental and Governance (ESG) factors when making decisions that could potentially affect the financial outcome of their plan members. As some plan members shift their values in everyday decisions and choices that incorporate ESG factors, there may also be […]
The Financial Services Regulatory Authority of Ontario (FSRA) has released their final guideline on how to avoid a plan’s deregistration under the Income Tax Act (ITA). In the past, plan sponsors could face possible deregistration of their pension plan if over-contributions or excess benefit errors were made. The guidance identifies the documents, timeframes and information […]
The Financial Services Regulatory Authority of Ontario (FSRA) recently released draft Proposed Guidance on Pension Plan Amendments for consultation. The guidance seeks to provide clarity regarding the following: Effective Date of Amendments: Previously, FSRA has allowed effective dates of amendments to be earlier than the filing date with FSRA. The guidance seeks to update the […]
As part of the 2021 federal budget, the government committed to modernizing the Employment Insurance (EI) program in order “to better meet the changing needs of Canadian workers and employers” and “to offer better support to Canadian families”. They have since conducted a series of consultations, carried out in two phases over 12 months (August […]