As anticipated, since the federal Pooled Registered Pension Plans Act came into force December 14, 2012, several provinces have followed suit and tabled legislation to implement the new kind of portable deferred income plan, which is designed to provide retirement income to workers and self-employed persons who do not have access to an employer-sponsored retirement pension plan.
With recent changes to Canada’s old age security pension, Canadians and retirement have been in the spotlight. According to Scotiabank’s annual investment poll, over 30 percent of Canadians plan to retire later, up from 27 percent in 2011. It’s not news that Canadians are retiring later than they did a decade ago, but why?
Pension funding rule changes announced on February 13, 2013, will protect jobs and preserve benefits for thousands of private-sector workers, according to the Government of Nova Scotia.
We are repeating this December 21 blog post to ensure employers, human resources professionals, payroll specialists, legal advisors, managers and supervisors among others start 2013 on the right foot.
A recent decision by the Federal Court of Appeal has upheld the mandatory retirement practice for Air Canada pilots. This decision overturns earlier findings by the Federal Court of Canada and the Canadian Human Rights Tribunal that contractual provisions forcing Air Canada pilots to retire at 60 violated the Canadian Charter of Rights and Freedom.
On June 29, 2012, legislation for Pooled Registered Pension Plans (PRPPs) has been given Royal Assent.
When mandatory retirement was eliminated, I noted that this change might create some interesting HR issues for employers of older workers. In the past, employers were often in a position to tolerate declining performance, comfortable in the knowledge that the employment relationship had a fixed “end date.” As a result, they could allow the employee to work out their last few years and retire with dignity.
The New Brunswick Court of Queen’s Bench recently challenged the Human Rights Commission’s decision to dismiss an employee’s discrimination complaint based on age as without merit. The employer denies discriminating against the employee on the basis of his age, and maintains that the employee was terminated for poor performance.
Effective, April 1, 2023, with full implementation by January 2029, the eligibility age for Old Age Security (OAS) is increasing to age 67 from 65 to reflect the reality that Canadians are living longer and healthier lives, and intending to keep working and delay retirement. In line with the increase in age of OAS/GIS eligibility, the ages at which the allowance and the allowance for the survivor are provided will also gradually increase from 60–64 today to 62–66, starting in April 2023.
On March 21, 2012, Quebec became the first province to set up a detailed framework of provincial rules that will apply for PRPPs.
Employment lawyers are generally quite adept at negotiating and resolving disputes arising out of the termination of an individual’s employment. We have all seen the statistics that only a miniscule number of dismissals result in a full trial and we know that in almost every case, it is better for the parties to reach a resolution than to proceed with litigation. That said, many traps exist in the settlement of a wrongful dismissal claim.
An earlier First Reference Talks blog post dealt with CPP contribution changes effective January 2012. This post will deal with changes to the Canada Pension Plan (CPP) benefits and the Post-Retirement Benefit your employees need to know.
On November 17, 2011, Bill C-25, An Act relating to pooled registered pension plans and making related amendments to other Acts, received first reading in the House of Commons. There is a bit of controversy about this Bill… let’s take a look.
How do you measure turnover? Most people think they understand turnover. It is a simple and useful concept when it comes to understanding the flow of people through your organization. It is an important marker for determining overall organizational health and likely productivity impacts. If turnover is too high, your business stalls due to constant re-training; if turnover is too low, it can stagnate, leading to mediocre performance.
Starting in 2012, the federal and provincial governments are making a series of changes to the Canada Pension Plan that affect employees aged between 60 and 70. These changes permit CPP and QPP contributions for employees when CPP or QPP retirement benefits are received, before employees turn 70 years of age. These changes bring the CPP into line with similar changes made to the QPP in 1997.The purpose, in part, is to offer more support to employees who wish to phase in their retirement.