Federal budget brings changes to retirement planning

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

TORONTO, April 21, 2016 /CNW/ - In the April 2016 issue of its monthly newsletter, News & Views, Morneau Shepell provides a detailed look at several pension and benefits related measures in the new Federal Budget.

• Federal budget: changes to Old Age Security, Guaranteed Income Supplement and Employment Insurance – The 2016 Federal Budget, released in March by the new Federal Government, included several expected announcements on public pension plans, consultation on the 30 per cent rule for pension plan investments and changes to employment insurance. Morneau Shepell explains what these changes will mean.
• Quebec: Regulation respecting the stabilization provision for private sector pension plans – The Quebec government has published a draft regulation for Bill 57. The highly anticipated regulation provides details that will have a significant impact on the funding of defined benefit (DB) pension plans in the Province.
• Ontario: removal of 30 per cent rule – The Ontario Ministry of Finance has released details regarding a proposed regulatory amendment which would remove the so-called "30 per cent rule" for investments of Ontario-registered pension plan. Morneau Shepell looks at what this will mean for stakeholders.
• CAPSA releases draft revisions to Pension Plan Governance Guideline – On March 11, 2016, the Canadian Association of Pension Supervisory Authorities (CAPSA), an organization consisting of Canada's pension regulators, released, for consultation, revisions to Guideline No. 4: Pension Plan Governance Guideline. The guideline has been increasingly referred to by Canadian pension regulators to assist pension plan administrators to understand their duties and obligations with respect to plan administration and governance.
• British Columbia releases Target Benefit Plan Conversion policy – Morneau Shepell summarizes the new proposed legislative requirements for a conversion from a defined benefit (DB) pension plan to a target benefit pension plan (TBP).
• Qualifying transfers to individual pension plans – On March 15, 2016, the Canada Revenue Agency (CRA) released a Registered Plans Directorate Newsletter on the topic of qualifying transfers to individual pension plans (IPPs). The Newsletter will be important to anyone who is purchasing past service in a new or existing IPP.
• OSFI releases guidance note: Administration of Negotiated Contribution Plans –The federal Office of the Superintendent of Financial Institutions (OSFI) has released a new guidance note that sets out OSFI's expectations respecting several regulations. Morneau Shepell summarizes those expectations for readers.
• New instruction guides for termination of federal pension plans – The Office of the Superintendent of Financial Institutions (OSFI) has issued two new instruction guides for the termination of defined benefit (DB) and defined contribution (DC) pension plans. The Instruction Guides are intended to inform administrators of federally regulated pension plans of the filing and reporting requirements for non-insured DB plans and/or DC plans that have terminated.
• Market indices as at March 31, 2016 – 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 pension plans as at March 31, 2016 – Tracking the funded status of pension plans as of March 31, 2016.
• Impact on pension expense under international accounting as at March 31, 2016 – Tracking how market changes up to March 31, 2016 affect the pension expense to be reported on a company's financial statement.

About Morneau Shepell Inc.
Morneau Shepell is the only human resources consulting and technology company that takes an integrative approach to employee assistance, health, benefits and retirement needs. The Company is the leading provider of employee and family assistance programs, 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 almost 4,000 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.

SOURCE Morneau Shepell - Pension/Retirement

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