Monday, March 28, 2011
Final Pension Regulations Set Out
Final regulations intended to strengthen Canada’s federally regulated private pension system have been released. Regulatory amendments to the Pension Benefits Standards Regulations, 1985, will come into force on April 1. These amendments will permit plan sponsors to secure properly structured letters of credit in lieu of making solvency payments to the pension fund, up to a limit of 15 per cent of plan assets; require the plan sponsor to fully fund pension benefits on plan termination; void any amendments to a pension plan that would reduce the solvency ratio of the pension plan if the plan’s solvency ratio would be below a ratio of 0.85; and permit sponsors, plan members, and retirees of a distressed pension plan to negotiate their own funding arrangements to facilitate a plan restructuring.
“These changes are part of the government of Canada’s overall commitment to strengthen the retirement income system, which includes working with the provincial and territorial governments to implement Pooled Registered Pension Plans,” says Finance Minister Jim Flaherty.
Health Plan Contributions Down Again
Contributions from employers to workers’ account-based health plans declined for the second year in a row in 2010, says the Employee Benefit Research Institute (EBRI). The ‘2010 EBRI/MGA Consumer Engagement in Healthcare Survey’ shows that the percentage of workers who reported that their employer contributed $1,000 or more to their account-based health plan declined from 37 per cent in 2008 to 28 per cent in 2010. The study found the drop in employer contributions may have been due to the weak economy. However, while workers with employee-only coverage responded to the decrease from employers by increasing their own personal contributions; workers with family coverage did not increase their contributions.
Pressure For Change Examined
‘The BBC: Contracts for the New Millennium’ will explore the pressure for change on group insurance contracts. Chris Bonnett, resident, H3 Consulting, will explore developments in oncology therapy and the impact on group benefit plans and David Blevins, president, Jones DesLauriers Blevins Insurance Group, and Bessie Wang, director, professional services, TELUS Health Solutions, will explore changes in the marketplace that have affected or will affect group contracts. It takes place April 14 in Mississauga, ON. For more information, visit www.connexhc.com
Conference Looks At Value Creation
‘Creating Value, Making a Difference’ is the theme of the annual Canadian summit on socially responsible investment. Sessions will look at issues for socially responsible investors including Canada's oil sands and investor engagement, development rights and aboriginal communities, practical investment solutions to the world's sustainability challenges, trends and opportunities in renewable energy investment, SRI branding, and impact investing. It takes place June 20 to 22 in Victoria, BC. For more information, visit http://sioconference.com/agenda/