NB bulletins

Following the parliamentary committee sessions that took place on October 27 and 28, 2015, Bill 57, An act to amend the Supplemental Pension Plans Act mainly with respect to the funding of defined benefit pension plans (Bill 57), received royal assent on November 26, 2015.

Parliamentary committee sessions on Bill 57 took place on October 27 and 28, 2015.

During the summer of 2015, Normandin Beaudry conducted its 18^th annual survey of fees charged by health care professionals in Quebec. Considering the fact that health care services provided by these specialists are typically covered by group benefits plans, we believe that the results presented below will be of interest to you.

Normandin Beaudry’s annual survey on salary increases reveals that Quebec salaries are expected to increase by 2.7% in 2016. Salary structures are expected to increase by an average of 1.8%.

On August 11, 2015, Ontario Premier Kathleen Wynne announced additional details on the Ontario Retirement Pension Plan (ORPP), including what defines a comparable workplace pension plan. The ORPP is a new Ontario pension plan aimed at helping working Ontarians who do not have a workplace pension plan.

On July 1 each year, the Régie de l’assurance maladie du Québec adjusts the financial parameters applicable to the public prescription drug insurance plan to take into account the increase or decrease in plan costs.

After the bill on the funding of municipal pension plans was assented to last December, the National Assembly continued its work, introducing An Act to amend the Supplemental Pension Plans Act mainly with respect to the funding of defined benefit pension plans (Bill 57) on June 11, 2015.

Over the last year, several legislative changes have impacted pension plans registered with the Financial Services Commission of Ontario (FSCO). The purpose of this information bulletin is to present the key legislative amendments that recently came into effect in Ontario. It also aims to summarize the bills and regulations that should be introduced in the near future.

Several private sector companies must include the recognition of their obligations towards defined benefit pension plans (DB plans) and group insurance plans offered to retirees (other post-retirement benefits) in their financial statements.

The assumptions required to determine the defined benefit obligation and the defined benefit cost (the expense) must be established by the company’s management. Again this year, we have analyzed the assumptions that were used, but have revised our methodology in order to include in our analysis more companies listed on the S&P/TSX Index.

The National Assembly passed Bill 28 on April 20, 2015. This bill includes a host of budget measures and numerous changes to different laws. Several of the measures announced impact directly or indirectly group benefits plans. The table below presents a summary of expected impacts on plans.

On March 25, 2015, the final amendments to the Pension Benefits Standards Regulations, 1985 (the “Regulations”) were published in the Canada Gazette.

The main objectives of these amendments are to improve the framework for defined contribution plans, enhance the disclosure of information and the protection of pension benefits for all plans, and modernize investment rules.

Public consultations on Bill 56, An Act to require the establishment of the Ontario Retirement Pension Plan (ORPP), were recently held and ended in late March 2015. The purpose of this major bill is to create an additional savings instrument that will strengthen the current retirement income system for working Ontarians.

As Normandin Beaudry informed you in September 2014, longevity risk management will lead to new risk mitigation strategies hitting the Canadian market, including longevity insurance. The March 3 announcement of the $5 billion longevity insurance agreement reached between BCE and Sun Life Financial confirms this trend.

For the 2014 tax year, a tax credit ranging from 4% to 20% of incurred medical expenses could be granted to Canadian taxpayers. The credit is subject to certain conditions and depends on the province of residence.

As in previous years, we inform you about the parameters that will be used by the major social security programs in 2015.