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CANADIAN GOVERNMENT FINANCE MINISTER'S PRIVATE COMPANY ANNOUNCES

CAPSA releases new agreement on multi-jurisdictional pension plans

Morneau Shepell Inc.

An in-depth look at this and other subjects are covered in the current issue of the Morneau Shepell News & Views.

TORONTO, June 25, 2020 /CNW/ - Morneau Shepell released the June 2020 issue of its monthly newsletter, News & Views, in which the company looks at the following topics:
CAPSA revises multi-jurisdictional pension plans agreement – The Canadian Association of Pension Supervisory Authorities (CAPSA) has revised its Agreement Respecting Multi-Jurisdictional Pension Plans. The revised agreement includes new funding rules, asset allocation requirements and annuity purchase rules. Alberta, British Columbia, New Brunswick, Nova Scotia, Ontario, Quebec, Saskatchewan and the federal government have signed the new multi-jurisdictional agreement, which comes into effect on July 1, 2020.
FSRA sets rules for commuted value transfers – The Financial Services Regulatory Authority of Ontario (FSRA) has issued new guidance on commuted value transfers and annuity purchases for Ontario-registered defined benefit pension plans. FSRA sets out two processes for approval of commuted value payouts, specifically an expedited review process for qualifying plans and an in-depth review process. FSRA also indicates its expectations where a plan administrator chooses not to apply for permission to make commuted value transfers, and sets out criteria for when a pension plan may resume making commuted value transfers.
Federal government introduces moratorium on special payments – The federal government has adopted a regulation to provide temporary, short-term solvency funding relief for federally regulated defined benefit pension plans. Under the new regulation, no solvency special payment instalments are required from May 27, 2020 until December 30, 2020. Relief is also available for employers who made special payments from April 1, 2020 to May 27, 2020.
OSFI eases requirements for commuted value transfers – The Office of the Superintendent of Financial Institutions (OSFI) has revised its Directives of the Superintendent to ease the restrictions on portability transfers for members who are retirement eligible. OSFI will provide automatic consent to portability transfers to locked-in retirement savings vehicles for members who are eligible to retire, subject to certain conditions.
Tracking the funded status of pension plans as at May 31, 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 May 31, 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 remained quite stable, despite the financial markets turmoil.

About Morneau Shepell
Morneau Shepell is a leading provider of technology-enabled HR services that deliver an integrated approach to employee wellbeing through our cloud-based platform. Our focus is providing world-class solutions to our clients to support the mental, physical, social and financial wellbeing 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.

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Tuesday, June 30, 2020

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