Canadian Government makes amendments to federal pension regulations

This and other subjects included in the current issue of the Morneau Shepell News & Views monthly publication

TORONTO, March 24, 2015 /CNW/ - In the March 2015 issue of its monthly newsletter, News & Views, Morneau Shepell examines the final version of amendments made to federal pension regulations. It also looks at a decline in pension plan solvency, which may affect commuted value transfers in certain jurisdictions.

• Amendments to federal pension regulations – Morneau Shepell analyzes the final version of amendments to federal pension regulations. The final version of the amendments responds to the comments received during the public consultation period and sets the implementation date. The amendments include revised investment rules, enhanced disclosure requirements and also affects regulatory framework for defined contribution plans.
• Decline in pension plan solvency may affect commuted value transfers in certain jurisdictions – Morneau Shepell notes that with the reduction of interest rates and equity market fluctuations in the early part of 2015, some defined benefit pension plans may have experienced declines in their transfer or solvency ratios. This may affect commuted value transfers.
• FSCO mandate under review – The Government of Ontario has announced it is launching a review of the mandate of the Financial Services Commission of Ontario (FSCO). Morneau Shepell explains the process.
• Market Indices – Monthly summary of returns from various market indices such as the FTSE TMX Bond Indices and Canadian, U.S. and Foreign Equity Indices. Also includes returns from benchmark portfolios used by pension funds.
• Tracking the funded status of defined benefit pension plans – Impact of past returns on plan assets and the effect of interest rate changes on solvency liabilities.
• Impact on pension expense under international accounting – Expense impact for a typical defined benefit pension plan.

About Morneau Shepell Inc.

Morneau Shepell is the largest company in Canada offering human resources consulting and outsourcing services. The Company is the leading provider of employee and family assistance programs, as well as the largest administrator of retirement and benefits plans and the largest provider of integrated absence management solutions in Canada. Through health and productivity, administrative, and retirement solutions, Morneau Shepell helps clients reduce costs, increase employee productivity and improve their competitive position. Established in 1966, Morneau Shepell serves approximately 20,000 clients, ranging from small businesses to some of the largest corporations and associations in North America. With approximately 3,600 employees in offices across North America, Morneau Shepell provides services to organizations across Canada, in the United States, and around the globe. Morneau Shepell is a publicly-traded company on the Toronto Stock Exchange (TSX: MSI). For more information, visit morneaushepell.com.

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Nathan Gibson, Manager, Corporate Communications, Morneau Shepell, 416-390-2641, [email protected]