What's New in Pension and Benefits – Spring 2023

  • 19 avril 2023
  • Michael Long and Evan Shapiro, Willis Towers Watson

I. LEGISLATION

PENSION AND LEAVE ANNOUNCEMENTS IN FEDERAL BUDGET

In Budget 2023, tabled on March 28, 2023, the federal government announced that amendments will be introduced to the:

  • Pension Benefits Standards Act, 1985 and the Pooled Registered Pension Plans Act to add frameworks for variable payment life annuities
  • Canada Labour Code to create a new stand-alone leave for federally regulated workers who experience a pregnancy loss (including parents planning to have a child through adoption or surrogacy) and improve eligibility for the leave related to the death or disappearance of a child under age 25

No further details are available.

ONTARIO PAID INFECTIOUS DISEASE EMERGENCY LEAVE (IDEL) NO LONGER AVAILABLED

As of March 31, 2023, Ontario employees are no longer entitled to paid Infectious Disease Emergency Leave (IDEL) under the Employment Standards Act, 2000 (ESA). Paid IDEL had, beginning April 19, 2021, allowed eligible employees to take up to three days paid leave for reasons relating to COVID-19. The period during which a temporary layoff could be deemed a leave of absence (deemed or unpaid IDEL) expired on July 30, 2022.

ONTARIO POOLED REGISTERED PENSION PLANS REGULATION AMENDMENTS

Effective March 24, 2023, the General Regulation under the Pooled Registered Pension Plans Act, 2015 (Act) has been amended to add New Brunswick to the list of “designated jurisdictions” with in force legislation substantially similar to Ontario’s Act, and the New Brunswick regulator to the list of “prescribed supervisory authorities”.

DRAFT ONTARIO AMENDMENTS FOR CONVERSIONS, MERGERS AND ASSET TRANSFERS

Ontario is proposing two amendments to O. Reg. 311/15 under the Pension Benefits Act (PBA). The deadline for providing comments is May 18, 2023. This Regulation sets out details for converting single employer pension plans (SEPPs) into jointly sponsored pension plans (JSPPs) or the merger of a broader public sector SEPP with an existing JSPP, as allowed under sections 80.4 and 81.0.1 of the PBA:

  • The first amendment would extend the deadline for filing the report relating to a conversion and transfer of assets under section 80.4 (including an actuarial cost certificate for the JSPP as of the date the assets were transferred) to within 210 days of the effective date of a conversion through a transfer of assets and liabilities.  Currently, plans have 120 days from the effective date of the conversion to transfer the assets and another 90 days after to file the actuarial cost certificate. The change would allow the same maximum of 210 days but would allow more time in circumstances where assets are transferred early; and,
  • The second amendment would allow a plan administrator to certify how the consent threshold requirements for a proposed conversion and transfer of assets under section 80.4, or a proposed conversion under section 81.0.1, have been met, instead of providing certified copies of individual plan member consent and objection forms. However, the CEO could request certified copies of consent and objection forms from the administrator.