The financial health of pension plans in 2014 and forecast for 2015 and changes in provincial pension legislation

These are among the subjects included in the current issue of the Morneau Shepell News & Views, a monthly publication dedicated to providing insights to its clients in Canada

TORONTO, Jan. 26, 2015 /CNW/ - In the January 2015 issue of its monthly newsletter, News & Views, Morneau Shepell examines the financial health of pension plans in 2014 and gives its forecast for the state of plans in 2015.  It also analyzes its comprehensive pension database for 2014.

• Pension plans' financial position: looking at 2014 and 2015 from a risk management standpoint – Morneau Shepell summarizes 2014 for pension plans in terms of financial position and from a risk management standpoint. Through this analysis it provides a series of suggestions for plan sponsors or pension committees to consider or implement in 2015.
• Morneau Shepell's pension database – 2014 edition – Morneau Shepell maintains an extensive database on all of the defined benefit (DB) pension plans for which the firm is the valuation actuary. The database includes hundreds of plans containing more than $80 billion in DB assets. The 2014 database sheds light on trends involving DB pension plans.
• Ontario government consults on key design features of the Ontario Retirement Pension Plan – Last month, the Ontario government released a consultation paper on the Ontario Retirement Pension Plan (ORPP). Morneau Shepell outlines three important design issues discussed in the consultation paper.
• Alberta amends new Employment Pension Plans Regulation – The new Employment Pension Plans Regulation came into force in Alberta in September of 2014. Alberta has since released amending regulations on new compliance deadlines. Morneau Shepell looks at what this means for pension plan administrators in this province.
• Update on New Brunswick Drug Plan – The New Brunswick government has announced amendments to the Prescription and Catastrophic Drug Insurance Act that will eliminate the mandatory requirement for provincial residents to have prescription drug insurance. Morneau Shepell explains what this means for residents and employers.
• Quebec announces changes to premium taxes  – Changes to insurance premium taxes in Quebec took effect last month. Morneau Shepell outlines the effect this will have on rates.
• Untraceable Plan Members and Beneficiaries – penalties in Quebec after March 31, 2015 – Most Canadian provinces have mechanisms that allow financial institutions to remit amounts to a government body when the owner of the amount is untraceable or estates are not claimed. Under Quebec's Unclaimed Property Act, amounts payable under a pension plan must be remitted when they qualify as unclaimed property as defined by the Act, or else penalties may apply after 3 years.
• 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 more than 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.

SOURCE Morneau Shepell Inc.

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