NB bulletins

About a year from now, on January 4, 2019, all Quebec defined benefit pension plans will be required to have a funding policy in place. Yesterday morning, the Quebec government announced that a regulation will soon be in effect bringing certain provisions of Bill 29* into force, including the one making the funding policy mandatory.

The Ontario government recently unveiled the highly anticipated details of its proposed defined benefit pension plan funding reform, announced on May 19, 2017.

A few weeks ago, the Public Sector Accounting Board (PSAB) published an Invitation to Comment on the discount rate provisions for employment benefits, included in Sections PS 3250 and PS 3255. This publication will be of particular interest to those who prepare financial statements in the public sector.

With the tabling of Bill 149 on November 2, Minister of Finance Carlos Leitão announced the enhancement of the Quebec Pension Plan (QPP). This announcement is positive for all workers, particularly the younger generation, as the maximum retirement pension benefit will increase from $13,400 under the current QPP to more than $20,000.

On November 14, the Ontario Government tabled Bill 177, titled the Stronger, Fairer Ontario Act (Budget Measures). This is the first step toward introducing the legislative measures that were announced when the government released the broad outline of its reform on the funding of defined benefit pension plans in May 2017.

On November 2, Minister of Finance Carlos Leitao presented Bill 149 – An Act to enhance the Québec Pension Plan and to amend various retirement-related legislative provisions. The bill deals with two distinct matters: enhancing the public plan and amending certain provisions of the Supplemental Pension Plans Act (SPP Act).

Last May, we informed you that Ontario would offer a free universal drug program, OHIP+, to children and youth under the age of 25. This plan will officially come into force on January 1, 2018. As a reminder, here are the key features of this new universal program.

In recent years, annuity purchases for retirees have become a preferred approach for managing the maturity and controlling the risks of defined benefit pension plans. Many factors have recently shifted the landscape of annuity purchases in Quebec, which should prompt you to question—or re-question—the relevance of adopting such a strategy for managing the risks of your pension plan.

More than two weeks have passed since Bill 92 came into force in Quebec, which requires pharmacists to break down the cost of prescription drugs on invoices to clients. However, the intended effects are slow to emerge.

The seventh edition of the Salary Increase Survey was conducted during the summer of 2017. Some 294 organizations representing more than 602,000 employees took part in the survey, allowing us to build a reliable, information-rich database. The data collected was analyzed by Normandin Beaudry’s compensation experts. The Survey presents labour market trends as well as salary forecasts for 2018 based on the specific conditions of the Quebec and Canadian labour market.

It is now official: following the introduction of Bill 92 on Friday, September 15, Quebec pharmacists must now provide their clients with a detailed invoice upon purchase of prescription drugs. The invoice must indicate the pharmacist’s professional fees, an amount that was until recently included in the total cost of the medication.

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.

Following the release on May 19, 2017 of the broad outline of its reform on the funding of defined benefit pension plans, the Ontario government filed a regulation on June 29, 2017 introducing transitional measures which came into force on July 1, 2017.

Several private sector organizations must include the recognition of their obligations toward 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 organization’s management.

On May 19, 2017, the Ontario government released the broad outline of its reform on the funding of defined benefit pension plans. Several measures were inspired by the changes made in 2016 to the Quebec defined benefit pension plans.

On April 27, 2017, the Ontario government tabled its budget for the coming year. This budget provides that, beginning January 1, 2018, Ontario would offer a free universal drug program, OHIP+, for children and youth under the age of 25.

Legislation now requires all Quebec defined benefit pension plans to have a formal funding policy in place. What are the implications for pension plan sponsors and their employees?

The Government of Quebec recently consulted its citizens concerning certain improvements that the Government wishes to make in relation to the Quebec Pension Plan.

On March 20, 2017, we announced that we were named as a finalist in the 37th edition of the Les Mercuriades contest. This prestigious contest created by the Fédération des chambres de commerce du Québec, celebrates the innovation, ambition and success of Quebec businesses.

In recent weeks, the federal government and several provincial governments tabled their budgets for the coming year. Some of the measures announced by the Quebec government and the Saskatchewan government will impact group benefits plans.

For the 2016 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 or territory of residence.

Breaking News: On Wednesday February 1, the federal government announced its intention not to apply this legislative change in its 2017 budget. This could have had a significant impact on private group insurance plans in Canada.

As in previous years, we inform you about the parameters that will be used by the major social security programs in 2017.

Two key elements particularly affected drug insurance in 2016: the increase in private drug insurance plan costs and significant legislative changes. The concerted actions of the group of plan sponsors and the Canadian Life and Health Insurance Association (CLHIA) also allowed for progress in Quebec’s legislative context. In keeping with the new tradition established in 2015, this bulletin presents the developments in 2016 that we believe have had the greatest impact on private drug insurance plans.

The Public Sector Accounting Board (PSAB) published at the end of November 2016 an Invitation to Comment about the deferral provisions for employment benefits (recognition of gains and losses and valuation of plan assets), included in Sections PS 3250 and PS­ 3255. This publication will be of particular interest to people who are preparing financial statements in the public sector.

The Quebec government passed Bill 92 on December 6, 2016, which includes several measures that will affect group benefits plans.