Federal Budget Contains Important Measures Impacting Pensions, Employee Benefit Plans, and the Labour Force
|
|
- Brooke Shana Hudson
- 5 years ago
- Views:
Transcription
1 Federal Budget Contains Important Measures Impacting Pensions, Employee Benefit Plans, and the Labour Force Yesterday, the federal government delivered its budget, or Economic Action Plan Certain measures, such as changes to OAS eligibility, were widely anticipated; others, perhaps less so. Regardless, the government is continuing its focus on a return to balanced budgets over the medium term. 1. Pension Measures OAS Eligibility As suggested by the government and various commentators in recent months, the Budget has announced that the eligibility age for Old Age Security (OAS) and the Guaranteed Income Supplement (GIS) will be increased from 65 to 67. It is interesting to note that the OAS, when first introduced, had an eligibility age of 70, when at that time, Canadians' life expectancy was about 20 years less than it is now (for a brief history of the OAS, see the accompanying Side Bar). This change will be phased in commencing April 2023 and will be fully implemented by January Fortunately, a long lead time for planning this major change is being allowed. The measure will affect Canadians born in April 1958 and later. Effectively, the eligibility age will increase by one month for every two months of elapsed time. The ultimate age 67 eligibility will apply to Canadians born in or after February What had not been previously indicated was that, unlike the current situation, Canadians will be able to defer the start of their OAS Old Age Security (OAS) According to Service Canada, the Old Age Security (OAS) program is one of the cornerstones of Canada's retirement income system, and has undergone extensive evolution since its primary component, the Old Age Security pension, was first introduced in The age of eligibility, initially set at 70, was gradually reduced to 65 between the years 1965 and During this period the Guaranteed Income Supplement was also introduced in Subsequently, the Spouse's Allowance was introduced in 1975 and extended 10 years later to all lowincome widows and widowers between the ages of 60 and 64. Full cost-of-living indexation, first annually and then quarterly, occurred during the early 1970s. "Clawback" provisions, by which pensioners earning an income over a given threshold ($69,562 in 2012) have to pay back part or all of the pension, were introduced in Benefits and obligations were extended to same-sex common-law partners in Although financed from Government of Canada general taxation revenues, the Parliamentary Budget Officer recently reported that OAS is sustainable in its present form until at least Aon Hewitt 2012 Aon Consulting Inc./Hewitt Associates Corp. (Aon Hewitt). All Rights Reserved. 1
2 benefits (but not GIS) for up to five years, starting July 1, 2013, where the starting pension will be increased actuarially due to the delayed pension commencement. This measure parallels existing CPP/QPP features designed to encourage senior Canadians to stay in the workforce longer and increase the ratio of workers to nonworkers. We are however, disappointed that the government did not also include a provision for earlier commencement of OAS benefits via actuarial reductions (as is the case for CPP/QPP benefits). The government has pointed out that 22 out of 34 Organisation for Economic Cooperation and Development (OECD) countries have raised their public pension eligibility ages, including Australia, France and Germany (to 67 between 2012 and 2029), the U.S. (to 67 by 2025) and the U.K. (to 68 by 2046). Ages of eligibility for the Allowance and the Allowance for the Survivor (for low-income seniors) will also be increased by two years in the same manner, from the current 60-64, to Other federal government income support programs will be adjusted to pay beyond age 65 to dovetail with the announced OAS changes. Obviously, provincial government support programs will be strained by these changes as they will be required to pay out greater benefits to lower income Canadians between the ages of 65 and 67. The federal government has therefore announced that they will compensate the provinces for the net additional costs they face due to the increased OAS/GIS eligibility age. Commentators have been justifiably criticizing the application system for OAS, as many older Canadians are not aware of the program and accordingly do not apply for and miss out on benefits to which they are entitled. To address this concern, the government has announced that they will put procedures in place to eliminate the need for seniors to apply for OAS and GIS. This will reduce the administrative burden on both seniors affected and the government, and will be implemented between 2013 and Pension plan sponsors may wish to consider these changes in OAS benefits for several reasons. Financial/retirement planning services to members should be even more important than in the past, to enable employees to properly prepare for retirement at or beyond age 65, with less public pension benefits from ages 65-67, particularly for plan sponsors with defined contribution or other money-purchase plans. Employers must consider their workforce planning now, as there will be a disincentive for employees to retire at or near age 65, with many opting to work longer, perhaps with age 67 becoming the new "normal retirement age." On the one hand, this could be beneficial where employers wish to retain older experienced workers; however, in other cases, where it is necessary to make room for younger staff, employers may need to re-evaluate their severance and retirement benefits designs to encourage employees to retire in dignity. We note that last week's Quebec budget added a tax incentive for workers to stay at work beyond age 65. Aon Hewitt 2012 Aon Consulting Inc./Hewitt Associates Corp. (Aon Hewitt). All Rights Reserved. 2
3 Pension Plans for Public Servants and Parliamentarians With an emphasis on ensuring the sustainability of the pension plans provided to federal public service employees, the Budget contained the following proposals, which will introduce changes gradually following consultation with key stakeholders: Adjust employee contributions to the Public Service Pension Plan over time, to be equal to those of the employer. Comparable changes will be made to the pension plans for the Canadian Forces, the RCMP and Parliamentarians; Raise the normal retirement age from 60 to 65 for employees joining the federal public service after 2012; Introduce adjustments to the pension plan for Parliamentarians in the next Parliament (i.e. after the next federal election which will probably not occur for at least several more years); and Work with Crown corporations to ensure their pension plans are financially sustainable and broadly aligned with those available for federal employees. Needless to say, these proposals may have broader implications for employers with pension plans modeled after the public sector pension plan and also for public sector plans at the provincial and municipal level. Changes to RCA and EPSP Rules The Budget proposes changes to Retirement Compensation Arrangements (RCAs) and Employee Profit Sharing Plans (EPSPs). RCA's are non-registered funded retirement savings arrangements typically enjoyed by higher-income individuals whose pension benefits from a Registered Pension Plan exceed the government maximum. Employer contributions to an RCA are tax deductible, but a refundable tax of 50 per cent is imposed on contributions as well as income and capital gains. The tax is later refunded when taxable distributions are made from the RCA. A rule exists allowing the payment of the refundable tax to take place in circumstances when the RCA assets are severely depleted. However, some individuals and their employers have used this rule in an attempt to access the refundable tax by artificially reducing the RCA assets. Budget 2012 has responded by introducing "prohibited investments" and "advantage" rules to prevent RCA's from engaging in non-arm's length transactions. The custodian of an RCA set up for an employee with a significant interest in his or her employer will have to pay a 50 per cent tax on the fair market value of any prohibited investment. Similarly, the RCA custodian will need to pay a tax equal to the fair value of any advantage, which will occur when an RCA buys an investment and the value of such investment is later intentionally eroded or transferred from the RCA without adequate consideration. These measures will apply in respect of investments acquired, or that become prohibited investments, on or after March 29, Aon Hewitt 2012 Aon Consulting Inc./Hewitt Associates Corp. (Aon Hewitt). All Rights Reserved. 3
4 Many small business owners have been directing company profits to their EPSPs which primarily benefit their family members. Since such contributions are taxdeductible to the company, payment of income tax on such profits are reduced or deferred. Note that all allocations to individuals within the plan are taxable in the year of allocation. To discourage excessive employer contributions, employees receiving EPSP benefits will be taxed at the highest possible marginal federal and provincial tax rates on "excess EPSP amounts" which are defined as EPSP allocations for an individual that exceed 20 per cent of that individual's salary from the employer. An exemption from regular income tax will be allowed to avoid double taxation on the excess EPSP amount, and there will also be a provision for the Minister to waive or cancel this new tax if it is just and equitable to do so. CPP and Pension Legislation The government reiterated the strong financial position of the CPP. Actuarial reports have indicated that it is self-sustaining for at least the next 75 years using the current combined employer/employee contribution rate of 9.9 per cent, so no changes are required to the CPP at this time. The government also stated that it will continue to work closely with provinces to encourage implementation of a PRPP framework in a timely manner to help Canadians reach their retirement objectives, but noted that a high level of harmonization across jurisdictions will be required to increasing the availability of PRPPs and achieve lower costs with respect to such plans. In light of the Quebec and Ontario budgets, released last week and earlier this week respectively, such harmonization may prove difficult to achieve. The government is also reviewing stakeholder comments received on draft ITA and regulatory changes, proposed last fall, and expects to implement new tax rules for PRPPs some time this year (for further information on PRPPs, see Aon Hewitt s on topic: Federal Government Introduces PRPP Enabling Legislation). 2. Health and Benefits Taxation of Group Sickness and Accident Plans Employer contributions paid on or after March 29, 2012 for coverage in 2013 and beyond to a group sickness or accident plan are considered a taxable benefit to the employee. This is a change to subsection 6(1) of the Income Tax Act (ITA). While group sickness and accident plans are not formally defined in the ITA, Aon Hewitt's preliminary view on this change is that the following benefits will now become taxable benefits across Canada: Employer-paid Accidental Death & Dismemberment (AD&D) insurance premiums; and Employer-paid premiums for Critical Illness insurance. Aon Hewitt 2012 Aon Consulting Inc./Hewitt Associates Corp. (Aon Hewitt). All Rights Reserved. 4
5 The budget documents have also clearly stated that this change does not impact the tax treatment of private health services plans (PHSPs). Accordingly, PHSP's (such as medical, dental and prescription drug plans, and Health Spending Accounts) remain non-taxable benefits for federal income tax purposes. PHSPs have been considered a taxable benefit for Quebec provincial income tax for approximately 20 years. Due to the wording of the change to subsection 6(1), further research is needed to confirm the benefits affected by this ITA change. However, if the benefits indicated above are now considered taxable benefits as of March 29, 2012, this will impact all employer plans that offer these benefits, either through traditional insurance arrangements, or in flexible benefit plans where employees may pay for benefits with employer provided flex dollars. Changes to both employee communication materials and administrative systems will need to be made to reflect this change. LTD Plans at Federally Regulated Employers Must be Insured The government has committed to introducing legislation which will require federally regulated employers to insure their Long-term Disability (LTD) plans going forward. This change is part of a government initiative originally announced in 2010 to better protect workers when their employers go bankrupt, and will only affect federally regulated employers currently self-insuring their LTD benefits. Confirmation of Canada Health Transfer Through 2024 As originally set out in December 2011, the budget confirms the annual increases in the Canada Health Transfer (CHT) to the provinces will be: 6 per cent per annum for the next five years; Increase based on three-year average nominal GDP growth (minimum 3 per cent) until 2024; and To be reviewed in With the future decrease in rate of growth of the CHT, we would anticipate that even greater pressure will fall on provincial budgets, and specifically with respect to health care. As we are already beginning to see, changes will be required in many provinces in order to return to balanced budgets. Given the inter-relationship between public health plans and workplace equivalents, employers should expect more changes in government health care that will affect their plans. In addition, with separate decisions being made in each province, both the cost and complexity of managing a national employer health plan will increase over the next few years. Aon Hewitt 2012 Aon Consulting Inc./Hewitt Associates Corp. (Aon Hewitt). All Rights Reserved. 5
6 3. Job-creation incentives The following measures have been proposed by the federal government to address Canada's evolving labour force needs: The Hiring Credit for Small Businesses will be extended one more year to defray the costs of hiring new workers. As such, the credit will be applied on 2012 employers' EI contributions, based on contributions made in 2011; In addition, small and medium-sized businesses and their employees will be protected against large annual EI premium rate increases. Indeed, these increases will be capped at 5 cents annually; and - Changes to the immigration system are proposed. Among other things, improvements to the process of recognizing foreign credentials will be supported by the government. Also, target occupations within this context will be identified, with the collaboration of provinces and territories. Should you wish additional information on this topic, please contact your local Aon Hewitt Consultant, or send an to info@aonhewitt.com. Aon Hewitt 2012 Aon Consulting Inc./Hewitt Associates Corp. (Aon Hewitt). All Rights Reserved. 6
SPECIAL COMMUNIQUÉ 2012 FEDERAL BUDGET ABOUT US ELIGIBILITY AGE RAISED FOR OAS AND GIS
SPECIAL COMMUNIQUÉ ABOUT US Morneau Shepell Inc. is the largest Canadian-based firm providing human resource consulting and outsourcing focused on pensions, benefits, employee assistance program (EAP)
More information2012 Federal Budget March 29, 2012
2012 Federal Budget March 29, 2012 A summary of the key tax measures that may have a direct impact on you On March 29, 2012, Federal Finance Minister Jim Flaherty delivered the majority government s 2012
More information2012 FEDERAL BUDGET. Tax highlights from the 2012 federal budget PERSONAL TAX MATTERS. Personal income tax rates
2012 FEDERAL BUDGET By Jerry S. Rubin, B.E.S., B.Comm.(Hons), CMA, TEP, CFP Tax highlights from the 2012 federal budget Finance Minister James Flaherty tabled the 2012 federal budget on March 29, 2012.
More informationBudget Paper D FISCAL ARRANGEMENTS
Budget Paper D FISCAL ARRANGEMENTS FISCAL ARRANGEMENTS CONTENTS INTRODUCTION... CANADA S FISCAL FEDERALISM... History of Fiscal Federalism... INTERGOVERNMENTAL TRANSFERS... Equalization... How Equalization
More information2012 FEDERALBUDGETANALYSIS. March29,2012
2012 FEDERALBUDGETANALYSIS March29,2012 TABLEOFCONTENTS PersonalIncomeTaxMeasures BusinessIncomeTaxMeasures InternationalTaxationMeasures SalesandExciseTaxMeasures OtherMeasures PERSONAL INCOME TAX MEASURES
More informationIMPORTANT MESSAGES EMPLOYMENT INSURANCE (EI) EMPLOYMENT INSURANCE (EI) PREMIUM $51, $ % $ EMPLOYMENT INSURANCE (EI)
IMPORTANT MESSAGES EMPLOYMENT INSURANCE (EI) EI REDUCTION PROGRAM QUÉBEC PARENTAL INSURANCE PLAN PREMIUM (QPIP) CANADA PENSION PLAN (CPP) QUÉBEC PENSION PLAN (QPP) PROVINCIAL HEALTH CARE PREMIUMS 2018
More informationTHE MARCH 29, 2012 FEDERAL BUDGET
THE MARCH 29, 2012 FEDERAL BUDGET This issue of the Legal Business Report provides current information to the clients of Alpert Law Firm on the March 29, 2012 Federal Budget. Although these proposals are
More informationA STRONGER RETIREMENT INCOME SYSTEM MEETING THE EXPECTATIONS OF QUEBECERS OF EVERY GENERATION
A STRONGER RETIREMENT INCOME SYSTEM MEETING THE EXPECTATIONS OF QUEBECERS OF EVERY GENERATION 100% This document is printed on completely recycled paper, made in Québec, contaning 100% post-consumer fibre
More informationThe Pensions and Retirement Savings Landscape in Canada
Retirement Savings by ANTHONY DEVIR s pensions and benefits regime is varied and complex. The federal government and each of the provinces has its own minimum standards legislation in addition to the federally
More informationBudget Paper D FISCAL ARRANGEMENTS
Budget Paper D FISCAL ARRANGEMENTS FISCAL ARRANGEMENTS CONTENTS INTRODUCTION... MAJOR FEDERAL TRANSFERS TO PROVINCIAL AND TERRITORIAL GOVERNMENTS... Equalization... Canada Social Transfer... Canada Health
More informationCanadian Benefits Guide 2018 Overview of government benefit programs and core legislation relevant to group benefit plan sponsors
Canadian Benefits Guide 2018 Overview of government benefit programs and core legislation relevant to group benefit plan sponsors Foreword Privately-sponsored employee benefits may supplement and/or complement
More informationThe foundation of your retirement income
Government Benefits The foundation of your retirement income As you go through your working life, you will generally have one primary source of income: your job or your business. In retirement, you will
More informationLEARNING ABOUT TAXES WITH INTUIT PROFILE: 2016 TY. Chapter 1 - Basics of taxation
LEARNING ABOUT TAXES WITH INTUIT PROFILE: 2016 TY Chapter 1 - Basics of taxation Contents Chapter 1 - Basics of taxation... 2 Topics... 2 Introduction to Chapter 1... 2 Estimated time... 2 Let's meet Paul...
More informationLEGISLATIVE UPDATE February 26, 2016
LEGISLATIVE UPDATE February 26, 2016 ONTARIO 2016 BUDGET NOTES On February 25, 2016, Ontario Finance Minister Charles Sousa presented the 2016 Ontario Budget, Jobs for Today and Tomorrow (the Budget ).
More informationCALU Special Report. Budget 2019: Government continues its commitment to invest in the middle class
CALU Special Report Budget 2019: Government continues its commitment to invest in the middle class Ottawa March 19, 2019 Finance Minister Bill Morneau tabled the Liberal Government s 2019 pre-election
More informationGREYHOUND WESTERN EMPLOYEES RETIREMENT INCOME PLAN YOUR PENSION PLAN SUMMARY
GREYHOUND WESTERN EMPLOYEES RETIREMENT INCOME PLAN YOUR PENSION PLAN SUMMARY November 2003 GREYHOUND WESTERN EMPLOYEES RETIREMENT INCOME PLAN PENSION PLAN SUMMARY YOUR RETIREMENT PLAN The Greyhound Western
More informationSecuring Canada s Retirement Income System
Securing Canada s Retirement Income System April 1997 FOREWORD Ensuring that Canada s seniors have an adequate retirement income is one of the most important social policy initiatives ever undertaken in
More informationPOLICY BRIEF. A Stronger Foundation. Pension Reform and Old Age Security. By Monica Townson. November 2009
POLICY BRIEF November 2009 A Stronger Foundation Pension Reform and Old Age Security By Monica Townson The current economic and financial situation has brought Canada s retirement income system into sharp
More informationRe: Tax and Retirement Savings Innovations to Promote Retirement Income
Joanne De Laurentiis PRESIDENT & CEO 416 309 2300 August 25, 2010 Ms. Louise Levonian Assistant Deputy Minister Tax Policy Finance Canada 140 O'Connor Street Ottawa, ON K1A 0G5 Tel: (613) 992-1630/797-0421
More informationRETIREMENT CHECKLIST MAKING THE MOST OF YOUR RETIREMENT
RETIREMENT CHECKLIST MAKING THE MOST OF YOUR RETIREMENT HELPING YOU MAKE THE MOST OF YOUR RETIREMENT If you are getting close to retirement, or have just recently retired, there are many financial details
More informationCanadian Benefits Guide
Canadian Benefits Guide Foreword It is our privilege to present you with the 37 th edition of our Canadian Benefits Guide. As Canada s leading integrated human capital consulting and outsourcing firm,
More information2018 Federal Budget: Goodbye Health and Welfare Trusts; Hello Expanded Parental Leave
February 27, 2018 2018 Federal Budget: Goodbye Health and Welfare Trusts; Hello Expanded Parental Leave T he 2018 Federal Budget, Equality + Growth, A Strong Middle Class (Budget), was tabled by Finance
More informationWhat every older Canadian should know about Income and Benefits from Government Programs
What every older Canadian should know about 2 Income and Benefits from Government Programs ISSD-043(2)-11-10 There are many government programs designed to help older Canadians stay financially independent.
More informationPUBLIC POSITION. Meeting the Needs of Canada s Future Retirees A CALL TO TIMELY ACTION: NOVEMBER 10, 2015 SUMMARY OF CIA POSITION
NOVEMBER 10, 2015 SUMMARY OF CIA POSITION The Canadian retirement system has been the subject of several studies and much public discussion. It is at a crossroads due to the convergence of many forces
More informationPension income splitting
Tax & Estate In 2006, the federal government introduced a new planning opportunity for Canadian seniors: the ability to split pension income. This Infopage explains what pension income splitting is and
More informationProvince of British Columbia Ministry of Finance MECHANISMS FOR EXPANDING PENSION COVERAGE AND RETIREMENT INCOME ADEQUACY IN CANADA
Province of British Columbia Ministry of Finance MECHANISMS FOR EXPANDING PENSION COVERAGE AND RETIREMENT INCOME ADEQUACY IN CANADA This paper seeks your views on how best to address anticipated future
More information2018 Federal Budget Review
February 27, 2018 On February 27, Finance Minister Bill Morneau unveiled the Liberal government s third Federal Budget entitled Equality + Growth: A Strong Middle Class which continues with many of the
More informationHow the Tax System Could Help to Reduce Poverty and Inequality
How the Tax System Could Help to Reduce Poverty and Inequality Presentation to Fair Tax Summit: Building a Better Canada March 30, 2012 Ottawa, Ontario Laurel Rothman Tel: 416-595-9230, x228 Email: laurelro@familyservicetoronto.org
More informationTax Rules for Pooled Registered Pension Plans (PRPPs)
Tax Rules for Pooled Registered Pension Plans (PRPPs) At the December 20, 2010 meeting of federal-provincial-territorial Ministers of Finance in Kananaskis, Ministers decided to move ahead with the introduction
More informationGil McGowan, President, Alberta Federation of Labour. Expansion of Pension Coverage Review of ABC Plan
Suite 1070, One Bentall Centre 505 Burrard Street, Box 42 Vancouver, BC V7X 1M5 Phone: 604-687-8056 Fax: 604-687-8074 To: From: Subject: Susan Chortyk and Tony Williams PBI Actuarial Consultants Ltd. Expansion
More informationAging and taxation: Retirement income and age-related tax issues
Tax & Estate Aging and taxation: Retirement income and age-related tax issues We all know the over-worn adage about the inevitability of death and taxes, but just because we recite it doesn t mean we have
More informationGroup Benefits Policy
Group Benefits Policy Policyholder: Policy Number: G0030630A Policy Effective Date: November 1, 2009 Policy Anniversary: Renewal Date: November 1st January 1st Table of Contents Group Benefits Schedule...1
More informationPAGE TRUST FUND DETAILS... O-1. Table of Contents... O-1 OVERVIEW OF TRUST FUNDS... O-2 DISCLAIMER... O-4
TRUST FUND DETAILS TABLE OF CONTENTS TRUST FUND DETAILS Table of Contents PAGE TRUST FUND DETAILS... O-1 Table of Contents... O-1 OVERVIEW OF TRUST FUNDS... O-2 DISCLAIMER... O-4 CHECKLISTS... O-5 Check
More informationYour. Pension Rights. A Guide for Members of Registered Pension Plans in Ontario
Your Pension Rights A Guide for Members of Registered Pension Plans in Ontario Endorsed by the Canadian Association of Pension Supervisory Authorities (CAPSA) What s In This Brochure Introduction....................................
More informationCanada s Aging Population and Public Policy: 5. The Effects on Employers and Employees
Canada s Aging Population and Public Policy: 5. The Effects on Employers and Employees Publication No. 2012-07-E 20 February 2012 Sandra Elgersma Tonina Simeone Social Affairs Division Édison Roy-César
More informationTax-Efficient Delivery of Health & Disability Benefits Filed under articles, Pension & Employee Benefits on Sunday, January 01, 2006.
Page 1 of 10 Tax-Efficient Delivery of Health & Disability Benefits Filed under articles, Pension & Employee Benefits on Sunday, January 01, 2006. Elizabeth Boyd Designing effective employee health and
More informationREFERENCE GUIDE. To Canadian Benefits 2018
REFERENCE GUIDE To Canadian Benefits 2018 Table of Contents CANADA PENSION PLAN/OLD AGE SECURITY...3 Maximum Monthly OAS Benefits...3 Contributions 2018...3 Maximum Monthly Benefit 2018... 4 Maximum Contribution
More informationGOVERNMENT BENEFITS UPDATE 2017
GOVERNMENT BENEFITS UPDATE 2017 Our annual update of the statutory benefits provided by the Federal and Provincial Governments of Canada TRG Group Benefits & Pensions Inc. Suite 800, 1177 West Hastings
More informationKEY TOPICS. What retirement looks like today What does retirement mean to you? Next steps: how to prepare today for tomorrow
KEY TOPICS What retirement looks like today What does retirement mean to you? Next steps: how to prepare today for tomorrow WHAT RETIREMENT LOOKS LIKE TODAY LIFE IN RETIREMENT Source: Sun Life Financial
More informationQPAT Pension Workshop
QPAT Pension Workshop Names You Should Know Retraite Québec merged administrative body that replaces CARRA and Quebec Pension Plan (QPP) administrative branch RREGOP Régime de retraite des employés du
More informationOld Age Security and the Canada Pension Plan
Old Age Security and the Canada Pension Plan A Reference Guide March 2008 A Reference Guide Old Age Security and the Canada Pension Plan This booklet is a reference guide to the Canada Pension Plan and
More informationQPAT Pension Workshop
QPAT Pension Workshop Names You Should Know Retraite Québec merged administrative body that replaces CARRA and Quebec Pension Plan (QPP) administrative branch RREGOP Régime de retraite des employés du
More informationFederal Fiscal Sustainability and Elderly Benefits. Ottawa, Canada February 8,
Ottawa, Canada February 8, 212 www.parl.gc.ca/pbo-dpb The mandate of the Parliamentary Budget Officer (PBO) is to provide independent analysis to Parliament on the state of the nation s finances, the government
More informationPensions Part 1 Defined Benefit Plans
The Navigator RBC WEALTH MANAGEMENT SERVICES Pensions Part 1 Defined Benefit Plans This article is the first part of a four-part series on employer retirement plans. Due to the complexity and variety of
More information40 th. Canadian Benefits Guide Edition
About Aon Aon plc (NYSE:AON) is a leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 72,000 colleagues
More informationPOLICY BRIEF. What Can We Do About Pensions? By Monica Townson. October 2009
POLICY BRIEF October 2009 What Can We Do About Pensions? By Monica Townson This is a revised version of a paper commissioned by the Tommy Douglas Research Institute which kindly agreed to its publication
More informationBrad Underwood. October 14, 2015
Brad Underwood October 14, 2015 1 Starting in 2023, phased in over 6 years. Full implementation (67) by 2030. Announced in 2012, legislation passed in 2013. Federal election result on October 19 will dictate
More informationThe Canadian Pension System
The Canadian Pension System Edward Tamagno Policy Associate Caledon Institute of Social Policy Ottawa, Canada General Assembly of the Japan Pension Research Council Tokyo, 8-98 9 September 2005 Outline
More informationMyBenefits At A Glance Supplement 2017/01/01
MyBenefits At A Glance Supplement 2017/01/01 Supplement to the mybenefits At A Glance for full-time, regular part-time and TERM employees of the following union groups: CFF; CRPEG; USW 404, 896,1568; CRNSOA;
More informationAmong other matters, the bill purports to amend the Act respecting labour standards (LSA) with respect to: Disparity of treatment
Information Bulletin March 23, 2018 In this issue Overhaul of Québec labour standards: A bill is tabled! 2 Disparity of treatment 2 Annual leave with pay 3 Absences owing to sickness, organ or tissue donation,
More informationBudget 2016: Recommendations to the Department of Finance
Budget 2016: Recommendations to the Department of Finance A healthy and secure future is every Canadian s goal. But between uncertain economic times, a changing workplace and an ageing population, many
More information2016 Federal Budget Federal Budget March 22, RBC Wealth Management Services
RBC Wealth Management Services 2016 Federal Budget 2016 Federal Budget March 22, 2016 A summary of the key tax measures that may have a direct impact on you Federal Minister of Finance, Bill Morneau, delivered
More informationRetirement Checklist Making Sure You Don t Leave Any Stone Unturned in Retirement
Retirement Checklist Making Sure You Don t Leave Any Stone Unturned in Retirement If you are nearing retirement or are recently retired there are a number of financial planning To Do s that you need to
More informationYOUR RETIREMENT PENSION PLAN
YOUR RETIREMENT PENSION PLAN FOR HOURLY EMPLOYEES OF FORD MOTOR COMPANY OF CANADA, LIMITED REPRESENTED BY UNIFOR AS AMENDED NOVEMBER 7, 2016 For Hourly Bargaining unit employees who were hired PRIOR TO
More information1 Enrolment. 1.1 Enrolling your employee 3
Section Contents 1 Enrolment 1.1 Enrolling your employee 3 1.1.1 Employer obligation to provide information 4 1.1.2 New employees 5 1.1.3 Waiver of Pension Coverage 8 1.1.4 Employee elects to enrol after
More informationHEALTH PLANS. Canadian Health Insurance TAX GUIDE. The Medical Expense Tax Credit. December Life s brighter under the sun
Canadian Health Insurance TAX GUIDE December 2016 Life s brighter under the sun Individuals may not deduct hospital and medical expenses from their income, but they may be able to claim a tax credit for
More informationActuarial Funding Report as at January 1, 2018
Ontario Retirement Pension Plan Actuarial Funding Report as at January 1, 2018 Ontario Retirement Pension Plan Actuarial Funding Report as at January 1, 2018 i Table of Contents Section 1 : Executive
More informationFaculty Pension and Benefits Discussion 1:00pm, November 15 th and 17th, 2017 Vitali Lounge, Wemple Hall
Faculty Pension and Benefits Discussion 1:00pm, November 15 th and 17th, 2017 Vitali Lounge, Wemple Hall Discussion Topics Employee Benefits Pensions Retirement Plan for Employees of KUC» Pension C ee
More information2000 Academic Money Purchase Pension Plan
2000 Academic Money Purchase Pension Plan TABLE OF CONTENTS Introduction... 2 Eligibility... 2 Enrolling in the Plan... 2 Contributions... 2 Other Contributions... 3 Retirement Benefits... 4 Retirement
More informationACTUARIAL REPORT 12 th. on the
12 th on the OLD AGE SECURITY PROGRAM Office of the Chief Actuary Office of the Superintendent of Financial Institutions Canada 12 th Floor, Kent Square Building 255 Albert Street Ottawa, Ontario K1A 0H2
More informationMY RETIREMENT Pension income Insurance
MY RETIREMENT Pension income Insurance This general information session has been prepared by the QPAT. Any decision concerning your retirement should be based solely on information obtained from Retraite
More informatione-brief September 30, 2008
e-brief September 30, 2008 I N D E P E N D E N T R E A S O N E D R E L E V A N T No Strings Attached: How The Tax-Free Savings Account Can Help Lower-Income Canadians Get Ahead By John Stapleton and Richard
More information4 Retirement. 4.1 Eligibility for a pension Pension formula Pension options Reduced and unreduced pensions 9
Section Contents 4 Retirement 4.1 Eligibility for a pension 4 4.1.1 Termination of employment 5 4.2 Pension formula 6 4.3 Pension options 7 4.4 Reduced and unreduced pensions 9 4.5 When a member is retiring
More informationManion Magazine. Taxation of Private Group Health and Dental Plans in Canada. Inside This Issue
Manion Magazine VOLUME 4 ISSUE 1 JANUARY 2017 Inside This Issue 1 Taxation of Private Group Health and Dental Plans in Canada 2 Proposal To Make Ontario s Trillium Drug Plan First Payer Could Have Major
More informationANNUAL REPORT. Report on the Public Service Pension Plan
ANNUAL REPORT Report on the Public Service Pension Plan For the Fiscal Year Ended March 31, 2011 Report on the Public Service Pension Plan For the Fiscal Year Ended March 31, 2011 Her Majesty the Queen
More informationRetirement Checklist. Making the most of your retirement
Retirement Checklist Making the most of your retirement 2 Making the most of your retirement RBC Wealth Management RBC Wealth Management provides comprehensive services designed to address your multi-faceted
More informationIncome taxes 101: Deductions, credits, benefits, exemptions, tax brackets
Income taxes 101: Deductions, credits, benefits, exemptions, tax brackets Canadians pay tax on most forms of income, such as money from employment and self-employment. This is called taxable income. If
More informationSuperintendents. 1. Supplementary Health and Vision Coverage Summary Chart
Superintendents 1. Supplementary Health and Vision Coverage Summary Chart Sun Life Group # 16440 The following chart summarizes some of the frequently used services covered under this plan: Service % of
More informationPerspective. Cautious Optimism. In this issue
In this issue SUMMER 2010 BMO Nesbitt Burns Tax Survey Make the most of your RRSPs/RRIFs Tax Planning for an Inheritance p2 p3 p4 Perspective Making sure your money lasts p5 As of June 18, 2010 Sherry
More informationHARPER S FIRST MAJORITY GOVERNMENT BUDGET TAX CHANGES INCLUDE TARGETED MEASURES TO CLOSE PERCEIVED LOOPHOLES
HARPER S FIRST MAJORITY GOVERNMENT BUDGET TAX CHANGES INCLUDE TARGETED MEASURES TO CLOSE PERCEIVED LOOPHOLES Taxnet Pro March 2012 Prepared by the McCarthy Tétrault Tax Group and published by Carswell,
More informationKevin Milligan, Vancouver School of Economics and NBER Tammy Schirle, Wilfrid Laurier University
Retirement incentives and Canada s social security programs Kevin Milligan, Vancouver School of Economics and NBER Tammy Schirle, Wilfrid Laurier University June 2018 Abstract Since the mid-1990s in Canada,
More informationThe Canada Pension Plan Where Next?
The Canada Pension Plan Where Next? Saskatchewan Federation of Labour Pensions Conference Regina, Saskatchewan May 2, 2018 Chris Roberts Canadian Labour Congress Outline Summary of 2016 CPP enhancement
More informationLEGAL UPDATE ECONOMIC ACTION PLAN BUDGET SUMMARY
March 2012 LEGAL UPDATE ECONOMIC ACTION PLAN 2012 2012 BUDGET SUMMARY The Economic Action Plan 2012 ( Budget 2012 ) released today by the Department of Finance reaffirms the Government s commitment to
More information...a retirement with dignity and security is possible
Pensions Pensions...a retirement with dignity and security is possible Context and challenges the CaW is proud of the pensions that we bargain in the workplace on behalf of our members. We have always
More informationGOVERNMENT BENEFITS UPDATE 2018
GOVERNMENT BENEFITS UPDATE 2018 Our annual update of the statutory benefits provided by the Federal and Provincial Governments of Canada TRG Group Benefits & Pensions Inc. Suite 800, 1177 West Hastings
More informationBCCE Online Continuing Education Courses
Addressing Conflicts of Interest 1 Hour Alberta (40481) Manitoba (23785) FPSC (1135) Advocis (IAS15015601) IIROC (006185) 1 Life, 1 Ethics Credit 1 Professional Responsibility Credit 1 Professional Responsibility
More informationMY RETIREMENT Level 2 Session
MY RETIREMENT Level 2 Session Fall 2016 This session has been prepared by the QPAT. Any decision concerning your retirement should be based solely on information obtained from Retraite Québec. 1 2 Names
More informationPOVERTY AT THE CROSSROADS. John Stapleton Open Policy Policy Class 2015
POVERTY AT THE CROSSROADS John Stapleton Open Policy Policy Class 2015 Poverty at the Crossroads 2 Poverty at the Crossroads 3 Quotes to set the stage ( and the frame) The Third Rail: Leech & McNish The
More informationThe Canada Pension Plan:
C2C39 The Canada Pension Plan: Keeping It Financially Healthy 1111)111111011h1(1eq 1 8ij r0[71) 3 11-D-7 lô e.p.e The Canada Pension Plan: Keeping It Financially Healthy Canada_ @ Minister of Supply and
More informationThe Poverty Prism: What Has Helped?
The Poverty Prism: What Has Helped? Publication No. 2009-15-E 28 October 2009 Reviewed 17 May 2012 Havi Echenberg Social Affairs Division Parliamentary Information and Research Service The Poverty Prism:
More informationSubmission of the Canadian Institute of Actuaries to the Commission des affaires sociales
Submission of the Canadian Institute of Actuaries to the Commission des affaires sociales Toward a Stronger and Fairer Québec Pension Plan August 2009 Document 209078 2009 Canadian Institute of Actuaries
More informationACTUARIAL REPORT 27 th. on the
ACTUARIAL REPORT 27 th on the CANADA PENSION PLAN Office of the Chief Actuary Office of the Superintendent of Financial Institutions Canada 12 th Floor, Kent Square Building 255 Albert Street Ottawa, Ontario
More informationSummary of Social Security and Private Employee Benefits CANADA
Private Employee Benefits CANADA 2014 Your Local Link to IGP in CANADA: Manulife Financial Corporation The Canadian Division of Manulife Financial Corporation provides life, health and savings plans to
More informationRetirement Checklist. Making the most of your retirement
Retirement Checklist Making the most of your retirement RBC Wealth Management RBC Wealth Management provides comprehensive services designed to address your multi-faceted financial concerns, simplify your
More informationN.D.T. INDUSTRY PENSION PLAN REFERENCE BOOKLET
N.D.T. INDUSTRY PENSION PLAN REFERENCE BOOKLET * * * * * * * * Administrator D.A. TOWNLEY & ASSOCIATES LTD. Suite 160-4400 Dominion Street Burnaby, British Columbia V5G 4G3 Telephone: 604-299-7482 Toll
More informationNews & Views. Knowledge & Insights. Ontario delays ORPP. Volume 13 Issue 3 March In this issue
Knowledge & Insights News & Views Volume 13 Issue 3 March 2016 In this issue 1 Ontario delays ORPP 2 Ontario Budget 2016: pension and benefits related measures 4 BC: changes to health premiums 5 Ontario:
More informationPractice Education Course Group Benefits Practice Area Exam May 2017
Practice Education Course Group Benefits Practice Area Exam May 2017 This exam consists of fifteen (15) multiple choice questions worth 12 points and five (5) written answer questions worth 27 points for
More informationRetirement planning YOUR GUIDE
Retirement planning YOUR GUIDE Choices today can lead to freedom tomorrow What s inside Introduction...1 Lifestyle planning...2 Potential sources of retirement income..5 Life insurance...6 Maximizing after-tax
More informationFILING TAXES THE KEY TO BENEFITS 2018 (based on 2017 income thresholds)
Example #1 - Single parent Two Children ages 2 & 4 Employed part time Annual employment income $15000.00 PLUS Benefits based on tax filing: GST Refundable Credit $ 866.00 ($216.50 paid quarterly) Canada
More informationOverview of the Canadian income tax system
The Navigator INVESTMENT, TAX AND LIFESTYLE PERSPECTIVES FROM RBC WEALTH MANAGEMENT SERVICES Cullen Wealth Management RBC Dominion Securities Charles W. Cullen III, CFP, CIM Vice-President, Portfolio Manager
More informationa CANADIAN UNION OF PUBLIC EMPLOYEES EMPLOYEES PENSION PLAN (CEPP) MEMBER BOOKLET
Canadian Union of Public Employees Employees Pension Plan (CEPP) MEMBER BOOKLET a Also available on the CUPE Employees Pension Plan website www.cepp.ca Last update September 2013 This member booklet provides
More information1 Enrolment. 1.1 Enrolling your employee Determining a member s beneficiary(ies) Transferring pension rights 14
Section Contents 1 Enrolment 1.1 Enrolling your employee 3 1.1.1 Member education 3 1.1.2 New employees 4 1.1.3 Once a contributor, always a contributor 7 1.1.4 Employee declaration of employment 8 1.1.5
More informationUNIVERSITY OF OTTAWA PENSION PLAN
UNIVERSITY OF OTTAWA PENSION PLAN ACADEMIC STAFF May 1, 2013 Last update: April 9, 2013 Biography of Luc Lauzière, BA, BCOM University of Ottawa Luc has been employed by the University of Ottawa since
More informationFinancial Advisory Solutions Team. Retirement Checklist. Making Sure You Don t Leave Any Stone Unturned in Retirement. Government Benefits
WEALTH MANAGEMENT Wealth and Money Management Strategies and Solutions Financial Advisory Solutions Team Making Sure You Don t Leave Any Stone Unturned in Retirement Prashant Patel, ASA, CFP, Financial
More informationPAGE TABLE OF CONTENTS... O-1 OVERVIEW OF TRUST FUNDS... O-2 DISCLAIMER... O-4 CHECK LIST, UPON POST-RETIREMENT DEATH... O-5
TRUST FUND DETAILS TABLE OF CONTENTS TRUST FUND DETAILS Table Of Contents PAGE TABLE OF CONTENTS... O-1 OVERVIEW OF TRUST FUNDS... O-2 DISCLAIMER... O-4 CHECK LIST, UPON POST-RETIREMENT DEATH... O-5 O-1
More informationTax return for 2009 prepared for. Tania McIntyre by UFile.ca
2009 Tax return for 2009 prepared for Tania McIntyre by UFile.ca Executive summary for 2009 taxation year Taxpayer Name Social insurance number Date of birth Province of residence Tania McIntyre 644-838-989
More informationThe Canada Pension Plan Retirement Pension
CANADA PENSION PLAN The Canada Pension Plan Retirement Pension March 2013 Service Canada delivers the Canada Pension Plan (CPP) program on behalf of the Department of Human Resources and Skills Development
More informationIs There an Optimal Level of Pre-Funding? Optimal Funding of the Canada Pension Plan
Is There an Optimal Level of Pre-Funding? Optimal Funding of the Canada Pension Plan 28 th International Congress of Actuaries Paris, 28 May- 2 June 2006 1 Presentation Retirement income security in Canada
More informationOECD THEMATIC FOLLOW-UP REVIEW OF POLICIES TO IMPROVE LABOUR MARKET PROSPECTS FOR OLDER WORKERS. CANADA (situation mid-2012)
OECD THEMATIC FOLLOW-UP REVIEW OF POLICIES TO IMPROVE LABOUR MARKET PROSPECTS FOR OLDER WORKERS CANADA (situation mid-2012) In 2011, the employment rate for the population aged 50-64 in Canada was 2.6
More informationThe Income Tax Act, 2000
1 INCOME TAX, 2000 c I-2.01 The Income Tax Act, 2000 being Chapter I-2.01* of the Statutes of Saskatchewan, 2000 (effective January 1, 2001) as amended the Statutes of Saskatchewan, 2000, c.49; 2001, c.p-15.2,
More information