Hiscocks v. Ontario (Superintendent Financial Services), 2016 ONFST 5 – No Obligation to Remind Employee of Eligibility on Sale of Business
Hiscocks began working for Spar Aerospace Limited (Spar) in 1979 and became eligible to join the pension plan, a voluntary, contributory defined benefit plan, 12 months later. He waived his right to join the plan.
In 1997, when certain Spar assets were purchased by DRS Technologies Canada Ltd. (DRS), Hiscocks became an employee of DRS and was eligible to join the DRS plan, a "mirror" of the Spar pension plan. Eventually, in 2004, Hiscocks joined the DRS plan, which, at the time, included a provision permitting a buy-back of past service. This provision had been removed by the time Hiscocks asked about buying back past service in 2012.
Further to its announcement in the 2015 Fall Economic Statement, the Ontario government is seeking input on its proposal to eliminate "the 30% rule".
The 30% rule, one of the quantitative limits contained in the federal pension investment rules, prohibits a pension plan from investing in more than 30% of the voting shares of a corporation, subject to exceptions for investments in the securities of real estate, resource, and investment corporations. Ontario incorporates this rule by reference in General Regulation 909.
In its consultation paper, the Ontario government is proposing to eliminate the 30% rule and instead require pension plans investing in more than 30% of the voting shares of any corporation and meeting a threshold percentage to comply with certain disclosure requirements and undertakings.
FSCO has posted a new Family Law Form 8, which is to be used by a former spouse to waive their right to receive a survivor benefit on the death of the Retired Member where there has been a marriage breakdown. The User Guide sets out the conditions to be met in order to use this form . . .
The Ontario government released its budget for 2016 and, as expected, it included a number of pension-related announcements.
FSCO has updated its list of FAQs regarding Statements of Investment Policies and Procedures (SIPP). The FAQs cover the following points:
- General: overview of SIPP requirements and confirmation that SIPPs must still be established and files for member-directed defined contribution plans.
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