Pensions & Employee Benefits Update: Nova Scotia pension funding framework & regulatory review
Peter McLellan, QC & Level Chan
In September 2017, Nova Scotia’s Department of Finance and Treasury Board announced that stakeholder input is being sought regarding potential permanent changes to the funding framework for defined benefit pension plans for Nova Scotia.
There is no indication as to any preferred course of action for Nova Scotia; however the discussion paper does summarize what has been done in the past in Nova Scotia – predominantly temporary solvency relief (and permanent solvency relief for certain quasi-public sector plans) – and also references what has been done in other jurisdictions, notable Ontario and Quebec. This is an important opportunity for sponsors of defined benefit pension plans in Nova Scotia to have input on the regime on a go forward basis in Nova Scotia:
- Do we maintain the status quo (full solvency funding)?
- Do we eliminate solvency funding and enhance going concern funding (e.g. the Ontario approach)?
- Do we reduce solvency funding – i.e. from 100% to 85%?
Input is also being sought on a number of regulatory issues including:
- Should Nova Scotia proceed with providing for target benefit plans? If so, should they be restricted to unionized workplaces and should defined benefit plans be permitted to convert to target benefit plans, including accrued benefits?
- What restrictions should apply to annuity buy-outs?
- Should Nova Scotia mirror or adopt recently updated federal investment regulations?
The Province has set a deadline of Friday, November 10, 2017 for stakeholder input.
Our Pensions and Employee Benefits Group would be pleased to discuss this review with you and to assist in any submissions to be made to the Province.
Archive
Peter McLellan, QC and Level Chan On November 29, 2017, the Nova Scotia Department of Finance and Treasury Board released new regulations with respect to asset transfers between pension plans that are effective November 28, 2017.…
Read MoreRick Dunlop and Kevin Landry The federal government has opened its 60-day consultation period with the release of its Proposed Approach to the Regulation of Cannabis. The paper outlines a potential regulatory framework which could…
Read MoreJosie Marks and Lara Greenough As 2017 comes to a close, please find below a summary of significant 2017 legislative amendments in each of the Atlantic Canadian provinces as well as federally, along with a…
Read MoreBrian Johnston, QC and Julia Parent In response to the report of the House of Commons committee on pay equity, the federal Liberal government announced its intention to bring in legislation to better ensure that…
Read MorePaul Smith and Dante Manna On November 14, 2017, Bill 22, also known as the proposed Pooled Registered Pension Plan Act (the “NB Act”), was introduced in the New Brunswick Legislature. If passed, New Brunswick…
Read MoreAndrew Burke and Kevin Landry The Toronto Stock Exchange (“TSX”) has made two recent changes to the TSX Company Manual that will impact disclosure: A. It introduced a requirement for many corporate listed issuers to…
Read MoreJennifer Taylor There is a role for social justice in statutory interpretation, according to the Nova Scotia Court of Appeal in the recent decision of Sparks v Nova Scotia (Assistance Appeal Board). This case is…
Read MoreKevin Landry and Jamie Watson New Brunswick’s proposed cannabis regulatory scheme has been introduced. An initial press release was followed by the introduction of amendments to the New Brunswick Liquor Control Act, and the Motor…
Read MorePeter McLellan, QC & Level Chan In September 2017, Nova Scotia’s Department of Finance and Treasury Board announced that stakeholder input is being sought regarding potential permanent changes to the funding framework for defined benefit…
Read MoreAndrew Burke & Divya Subramanian Securities markets around the world are grappling with new concerns: As fintechs make cryptocurrency offerings such as Initial Coin Offerings (ICOs), Initial Token Offerings (ITOs) or other digital token offerings,…
Read More