Agreement Respecting Multi-Jurisdictional Pension Plans

The 2020 agreement was developed by the Canadian Association of Pension Supervisors (CAPSA) to coordinate and harmonize pension regulation across Canada. With the 2020 agreement, the funding rules will then only apply to the legislation of the high authority on the financing of pension schemes. Since the release of the 2016 agreement, several Canadian jurisdictions (including Ontario, Quebec, British Columbia and Nova Scotia) have eliminated or reduced solvency financing requirements and increased financing requirements for business prosecution. Following the 2016 agreement, additional resources were often needed when the funding needs of the subordinate authority and the large authority were different. Changing the grand authority`s funding rules solves this problem. The Canadian Department of Finance announced the signing of the agreement on compliance with the plans of several legal texts for 2020 (2020 agreement). The federal government signed the 2020 agreement with the governments of British Columbia, Alberta, Saskatchewan, Ontario, Quebec, New Brunswick and Nova Scotia to simplify and clarify the oversight of retirement plans in Canada with members of more than one jurisdiction. About Morneau Shepell Morneau Shepell is a leading provider of technology-based HR services that offer an integrated approach to employee well-being through our cloud platform. We focus on providing best-in-class solutions to our clients to support the mental, physical, social and financial well-being of their employees. By improving life, we improve business. Our approach includes services in the areas of staff and family assistance, health and well-being, recognition, pension and benefit management, retirement counselling, actuary and investment services. Morneau Shepell employs approximately 6,000 people who work with approximately 24,000 client organizations that use our services in 162 countries. Morneau Shepell is a company listed on the Toronto Stock Exchange (TSX: MSI).

For more information, see morneaushepell.com. A minor but welcome change concerns the obligation to provide explanations to active members and others. The 2020 agreement now provides that declarations that must be made on a non-annual basis are subject to the rules of the lead authority. Ontario, for example, requires inactive returns to be provided every two years. These inactive statements were not covered by the reference to the “financial statements” of the 2016 agreement. Interestingly, the 2020 agreement does not explicitly address this form of communication, although several jurisdictions have recently amended pension legislation to allow for the electronic transmission of certain information (most recently Alberta). Given the current remote working environment for many companies, electronic communications for administrators will be very useful in complying with the advertising obligations by the rules. The 2020 agreement may remain silent with regard to electronic communications due to the consent component provided for in this form of communication. Jurisdictions across Canada have taken different approaches to opt-in or opt-out for consent, either through pension legislation or through general electronic communications legislation. . .

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