New pension guidelines in Ontario and Alberta

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

TORONTO, July 17, 2015 /CNW/ - In the July 2015 issue of its monthly newsletter, News & Views, Morneau Shepell looks at new pension guidelines in Ontario and Alberta some of which are open for comments during a short period. The July edition also examines the highlights of its 15^th annual survey on economic assumptions for accounting.

• 2015 Survey – Economic assumptions for accounting – Recently, Morneau Shepell issued its 15th annual survey on the economic assumptions used by Canadian public companies to account for the costs of their defined benefit plans. In this News & Views, Morneau Shepell reveals the highlights of that survey.
• IFRS accounting: Proposed amendments – In June 2015, the International Accounting Standards Board issued an Exposure Draft that proposes changes to accounting rules for defined benefit plans. Morneau Shepell examines the changes which target two specific areas.
• Newfoundland and Labrador: Teachers' pension plan changes – Morneau Shepell summarizes the major changes to reform the Teachers' Pension Plan in the province.
• Bill C-377 finally adopted despite labour opposition – Bill C-377, An Act to Amend the Income Tax Act, is intended to increase transparency and accountability of labour unions by amending the Income Tax Act to require unions to disclose certain financial information. Morneau Shepell looks at the new disclosure requirements.
• Ontario: Draft regulations for merger or conversion of SEPPs into JSPPs – On June 26, 2015, the Ontario Ministry of Finance released draft regulations for the merger or conversion of single employer pension plans (SEPPs) in the broader public sector into jointly sponsored pension plans (JSPPs). Morneau Shepell looks at what this means for all stakeholders.
• Ontario: Wind-up of a defined benefit plan replaced by a defined contribution plan – Morneau Shepell looks at how this new Policy will be of interest to sponsors of Ontario-registered DB pension plans who replaced it with a Defined Contribution (DC) plan and who may wish to wind up their frozen DB provisions.
• Ontario: Draft policies on DC investments and ESG factors – On June 30, 2015, the Financial Services Commission of Ontario (FSCO) released two guidance notes for public consultation. Morneau Shepell explains these guidance notes and the potential outcomes.
• Ontario: Draft policy on alternative settlement options – This month, the FSCO released a draft Actuarial Guidance to clarify FSCO's expectations on the use of alternative settlement methods in calculating the wind-up and solvency positions of an ongoing defined benefit (DB) pension plan. Morneau Shepell breaks down the details of this move.
• Alberta: Draft Interpretive Guides – On September 1, 2014, new pension legislation and regulations took effect in Alberta. Since then, the Alberta Treasury Board and Finance has published various draft Interpretive Guides related to the new legislation. Morneau Shepell explains these guides and the potential consequences of their implementation.
• New mortality table for pension commuted values –The Actuarial Standards Board (ASB) has issued a final communication to enable announcement of a new mortality table for calculating the commuted value of a deferred pension. Morneau Shepell looks at what this means for plans.
• 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 21,000 clients, ranging from small businesses to some of the largest corporations and associations in North America. With approximately 3,700 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]