Articles

An actuarial valuation revealed that contributions to the plan had to be increased. ICBC argued contributions must be equal between it and the employees, whereas the employees argued that their contributions were not to exceed 9% of their earnings as defined in the plan. In order to increase the employees’ contributions, it was necessary to apply to the Minister of National Revenue for a waiver. The three trustees appointed by ICBC refused to take any position on the matter.

In 1997, the plan was amended to expand investment options and the definition of “earnings” was mistakenly changed to include overtime and bonuses. This change, which was not discovered until 2013, was contrary to the employer's intention and to how it had been administering the plan. The employer applied to the court for an order of rectification, which was granted.

Ontario filed regulations amending General Regulation 909 to exempt “securities issued by the Government of the United States of America” from the 10% rule and to make certain changes with respect to letters of credit.

Ontario published four proposed regulations, which address requirements for SIP&Ps, statements for former and retired members, changes to accounting standards and direct payments from DC pension plans.

Upon Shi’s termination of employment, her DC account was transferred to an RRSP on a non-locked-in basis. Shi complained that: (i) the pension contributions should not have been deducted from her last two pay cheques; and (ii) she wanted the DC account transferred on a locked-in basis. The Superintendent refused to make the order sought because, in his view, Shi’s DC account had been administered in accordance with the plan and the Ontario Pension Benefits Act (PBA).

The Canadian Association of Pension Supervisory Authorities (CAPSA) has finalized its Defined Contribution Pension Plans Guideline.

On April 24, 2013, the federal government announced that it is launching consultations on a potential federal framework for Target Benefit Plans, or TBPs. TBPs would be a new, voluntary, sustainable and flexible pension option available to federally regulated private sector employers and Crown Corporations.

As this year’s Pensions & Benefits Section Executive draws to a close, I’d like to take a moment to thank our 2012/2013 executive members for their service.

Sutherland v. CAW-Canada, Local 1090 and Lear Canada Corporation, [2012] FST File No. P0504-2012 (F.S.T.) - Employee Not Entitled to Extra Service as Collective Agreement Provision Not Reflected in Plan

Federal and Ontario