An in-depth look at this and other subjects are covered in the current issue of the Morneau Shepell News & Views
TORONTO, March 30, 2020 /CNW/ - Morneau Shepell released the March 2020 issue of its monthly newsletter, News & Views, in which the company looks at the following topics:
- Morneau Shepell provides COVID-19 resources and information – Amid unprecedented action by governments and businesses around the world, Morneau Shepell continues to provide resources to its clients to help deal with the impact of the virus. One of the ways that employers can prepare for COVID-19 is to engage support programs for staff who are anxious and require information from reliable sources. These resources can also help educate employees and managers, as well as dealing with stress and traumatic situations.
- Nova Scotia amends Pension Benefits Regulations – Nova Scotia has amended its Pension Benefits Regulations to bring the province's defined benefit funding framework largely in line with Ontario's funding rules. The new funding regime reduces solvency funding requirements while introducing stricter going concern funding rules, as well as a provision for adverse deviations (PfAD) on going concern liabilities. The amended regulations will also provide for a statutory discharge for defined benefit plans that purchase buy-out annuities.
- FSRA introduces new DB supervisory approach – The Financial Services Regulatory Authority of Ontario (FSRA) has released a new guidance document outlining its proposed approach for supervising actively monitored single employer defined benefit pension plans. FSRA's approach will be risk-based and will consider whether the plan sponsors have taken appropriate measures to address risks. FSRA says the new approach is aimed at protecting benefit security for members and the long-term stability of the Pension Benefit Guarantee Fund.
- Business owner held personally liable for unpaid pension contributions – A British Columbia court has found the owner and director of a company to be personally liable for breach of trust for failing to remit contributions to a multi-employer pension plan. The court ruled that the company that he operated had failed to remit pension contributions, failed to protect contributions held in trust and used those contributions for unauthorized purposes. Following a period of financial difficulty, the company ceased operations. As such, the owner was held personally liable for the unpaid contributions and associated costs.
- Tracking the funded status of pension plans as at February 29, 2020 – Morneau Shepell describes the funded status of pension plans since December 31, 2019 based on three typical investment portfolios. A graph shows the changes in the financial position of a typical defined benefit plan since the end of 2019. A table shows the impact of past returns on plan assets and the effect of interest rate changes on solvency liabilities of a medium duration pension plan.
- The impact of pension expense under international accounting as at February 29, 2020 – Morneau Shepell has shown the evolution of the pension expense for a typical defined benefit pension plan. Since the beginning of the year, the pension expense has increased by 17 per cent (for a contributory plan) due to the decrease in the discount rates.
About Morneau Shepell
Morneau Shepell is the leading provider of technology-enabled HR services that deliver an integrated approach to employee well-being through our cloud-based platform. Our focus is providing world-class solutions to our clients to support the mental, physical, social and financial well-being of their people. By improving lives, we improve business. Our approach spans services in employee and family assistance, health and wellness, recognition, pension and benefits administration, retirement consulting, actuarial and investment services. Morneau Shepell employs approximately 6,000 employees who work with some 24,000 client organizations that use our services in 162 countries. Morneau Shepell is a publicly traded company on the Toronto Stock Exchange (TSX: MSI). For more information, visit morneaushepell.com.
SOURCE Morneau Shepell Inc.
For further information: Heather MacDonald, Morneau Shepell, [email protected], 855-622-3327