What's New in Pension and Benefits – Winter 2022

  • February 04, 2022
  • Michael Long and Evan Shapiro, WTW

  1. LEGISLATION

INFECTIOUS DISEASE EMERGENCY LEAVES EXTENSIONS

Ontario is again extending, to July 31, 2022 (from December 31, 2021), the period during which an employee can take paid Infectious Disease Emergency Leave (Paid IDEL) and, to July 30, 2022 (from January 1, 2022), the period during which a temporary layoff will be deemed to be a leave (Deemed IDEL):

  • Paid IDEL allows employees to take up to three days paid leave for reasons relating to COVID‑19, including to get tested, get vaccinated, self-isolate, or care for a family member. The employer must pay the employees their wages to a maximum of $200 per day. The government will reimburse the employer for this amount.
  • Under the Deemed IDEL, employees are deemed to be on an unpaid leave if their work hours have been temporarily eliminated or reduced because of COVID-19. This means the provisions under the Employment Standards Act, 2000 that require an employee on temporary layoff to be terminated after a specified period will not apply for the period of the Deemed IDEL.

MEPP AND SOMEPP ELIGIBILITY CHANGES, EFFECTIVE OCTOBER 19, 2021

On October 19, 2021, the Pension Benefits Act and its General Regulation were amended. Now, a pension plan is not a multi-employer pension plan or Specified Ontario Multi-Employer Pension Plan (SOMEPP) if all the contributing employers are affiliates under the Not-for-Profit Corporations Act, 2010. This was already the case with respect to affiliates under the Business Corporations Act.

WHISTLE-BLOWER PROTECTIONS UNDER THE FSRA ACT

Amendments to the Financial Services Regulatory Authority of Ontario Act, 2016 have received Royal Assent (see Schedule 12 under the 2021 Budget Bill). Once proclaimed into force, they will protect whistle-blowers against reprisals by requiring reinstatement or payment of compensation. Assuming certain conditions are met, a whistle-blower is someone who discloses in good faith to FSRA an alleged or intended contravention of legislation under a regulated sector (i.e., the Pension Benefits Act or its regulations). Penalties are also set out for persons convicted of contravening the prohibition.

REMOVING CERTAIN DC PLAN REQUIREMENTS IN ONTARIO

Ontario has proposed regulatory amendments to remove two filing requirements for DC pension plans. First, administrators of member-directed DC plans would no longer have to establish a Statement of Investment Policies and Procedures (SIPP), nor file it with FSRA.  As well, statements about the SIPP would no longer be required in annual statements for members or in biennial statements for former or retired members of these plans.  Second, administrators of all DC plans would no longer have to file audited annual financial statements with FSRA; however, the Chief Executive Officer of FSRA retains the power to require DC plan administrators to prepare and file audited annual financial statements if it believes there is a substantial risk to benefit security, or of a significant change in plan circumstances. DC plan administrators would instead file unaudited annual financial statements.  These exceptions do not apply to hybrid or combination plans (i.e., plans that have a defined benefit and defined contribution provision.) 

FEDERAL LEAVE AMENDMENTS: PAID MEDICAL, ENHANCED BEREAVEMENT, AND COVID-19 LEAVE CHANGES

Amendments to the Canada Labour Code (CLC) have received Royal Assent and will, once proclaimed into force, allow employees in federally regulated industries and workplaces to take up to 10 days of paid medical leave. These paid days will be accrued over time, with one paid day earned for every completed month of service with the employer.

In addition, new CLC provisions will entitle employees to an enhanced unpaid Bereavement Leave of up to eight weeks on the death of their child (generally under age 18) or the death of a child of the employee’s spouse or common-law partner (up from the current 10 days, three of which are paid).

As well, a new unpaid Bereavement Leave, also of up to eight weeks, will apply in the event of a stillbirth (generally loss of pregnancy after 20 weeks); this new unpaid leave will also apply to the spouse or common law partner of the employee who suffered the stillbirth, and to any employee who would have been a parent had a child been born from the lost pregnancy.

Separately, the federal government passed legislation to increase the duration of the leave related to COVID-19 to six weeks (from four) for employees who have or may have contracted COVID-19, have underlying conditions that would make them more susceptible to it, or have had to self-isolate; and to 44 weeks (from 42) for employees who must care for a child or family member for reasons related to COVID-19. These increases match the increased benefit periods for the Canada Recovery Sickness Benefit and the Canada Recovery Caregiving Benefit. The comment deadline was November 23, 2021.