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
By Jim Cruikshank, Graham Haynes, and Dave Randell On November 3, 2022, the Honourable Chrystia Freeland delivered the Federal Government’s Fall Economic Statement (“FES”). The FES included a number of tax related announcements, including further…
Read MoreBy Stephen Penney, Joe Thorne, and Giles Ayers A new decision from the Supreme Court of Canada, Annapolis Group Inc. v. Halifax Regional Municipality, 2022 SCC 36 (“Annapolis”), has changed the law of constructive expropriation across the…
Read MoreAs part our presenting sponsorship of the Halifax Chamber of Commerce’s Annual Fall Dinner, we are pleased to present a series of thought leadership articles highlighting the dinner’s themes of immigration, recruitment, and labour market…
Read MoreAs part our presenting sponsorship of the Halifax Chamber of Commerce’s Annual Fall Dinner, we are pleased to present a series of thought leadership articles highlighting the dinner’s themes of immigration, recruitment, and labour market…
Read MoreBy Sara Espinal Henao Since its initial launch in January 2015, Express Entry has been a pillar of Canada’s immigration system. Recently passed amendments to the Immigration and Refugee Protection Act (IRPA) promise to drive…
Read MoreBy Brittany Trafford It is no secret that employers in Atlantic Canada are struggling to fill labour gaps. In June 2019 the Atlantic Canada Opportunities Agency (ACOA) published a report[1] indicating that the overall labour…
Read MoreThis article was updated on May 4, 2023. By Brendan Sheridan The Government of Canada has recently taken steps to further protect foreign workers employed in Canada. These efforts by the government have, in some…
Read MoreSadira Jan, Dave Randell, and James Gamblin On October 17, 2022, the Government of Nova Scotia tabled bills that would amend four pieces of legislation in support of future green hydrogen development. The intended impacts…
Read MoreBy Ruth Trask and Josh Merrigan Pay equity is an increasing focus for governments and advocates in the employment world, which means that employers must also pay attention. The Government of Newfoundland and Labrador has…
Read MoreBy Kathleen Leighton Canada is facing considerable labour shortages resulting from a myriad of factors including its aging population and declining birth rates. As a result, our immigration strategy going forward must help drive the…
Read More