The impact of the 2014 federal budget on pension plans, retirement savings and benefit plans and the soaring costs of specialty drugs
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, Feb. 27, 2014 /CNW/ - Morneau Shepell presents a brief summary of elements of the 2014 Budget that concern or impact pension plans, retirement savings and benefit plans, and analyzes the growing use of specialty drugs in drug plans in the current issue of its newsletter, News & Views.
- 2014 FEDERAL BUDGET - Federal Finance Minister Jim Flaherty tabled his 2014 Budget on Tuesday, February 11, 2014. Here is a brief summary of elements concerning or impacting pension plans, retirement savings and benefit plans.
- ARE SPECIALTY DRUGS A THREAT TO DRUG PLANS? - The specialty drugs sector is growing at a rate of 16 per cent annually, with the average cost of treatment running at $30,000 per year. Prices have been soaring in the past few years, a phenomenon we will shed some light on in this article.
- CIA FINAL MORTALITY TABLES RELEASED - On February 13, 2014 the Canadian Institute of Actuaries (CIA) published the final report and tables on Canadian Pensioners' Mortality. The report was published after considering comments from approximately 30 varying sources on the July 31, 2013 draft Canadian Pensioners' Mortality Report. The final report includes three new sets of mortality tables.
- CLARIFICATIONS ON CPP AND EI DEDUCTIONS FOR WAGE LOSS REPLACEMENT PLANS - CRA has expanded on their initial ruling in an article on wage loss replacement plans. The article lays out a two-step test to determine whether payments are subject to deductions for CPP and EI.
- CANADA AND U.S. AGREEMENT ON FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA) - On February 5, 2014 the Government of Canada announced that Canada and the United States have signed an intergovernmental agreement related to FATCA.
- MARKET INDICES - Monthly summary of returns from various market indices such as the TSX Group / PC 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.
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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. 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 8,000 clients, ranging from small businesses to some of the largest corporations and associations in North America. With approximately 3,300 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.
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