B.C. moving forward on pooled pension plans
The British Columbia government has tabled a bill that would allow for pooled registered pension plans (PRPPs) to be set up in the province.
PRPPs are defined contribution (DC) pension plans administered by a third party, such as a financial institution, rather than an employer. The plans are designed to provide a way of saving for retirement for individuals whose employer does not have its own registered pension plan or for those who are self-employed.
Bill 9, the Pooled Registered Pension Plans Act, is based on the federal Pooled Registered Pension Plans Act, which generally applies to federally regulated workplaces.
If passed, the British Columbia legislation would allow private-sector employers in the province the option of signing up for a PRPP. Employers who opt to join a plan would be responsible for enrolling their employees, deducting PRPP contributions from employees’ earnings and sending them to the plan administrator. Employers would not be required to contribute to a PRPP, but could choose to do so.
NEWFOUNDLAND AND LABRADOR
Report recommends workers’ compensation changes
A committee reviewing the province’s workers’ compensation system recommends action be taken to ensure the maximum compensable assessable earnings and average assessment rate for employers in Newfoundland and Labrador are comparable to other Atlantic provinces.
The Review Committee on Workplace Health, Safety and Compensation made the recommendations in a report on the province’s workers’ compensation system called Working Together — Safe, Accountable, Sustainable.
The committee put forward 42 policy recommendations in the report covering areas such as financial sustainability, early and safe return-to-work, prevention, claims management and governance. The report also included 90 recommendations for amending the workers’ compensation legislation. Among the recommendations the committee made:
At the earliest possible time within the next five years, the Workplace Health, Safety and Compensation Commission (WHSCC) should develop a plan to ensure that the province’s maximum assessable earnings achieve parity with the province in Atlantic Canada with the highest maximum assessable earnings. At the time the committee wrote the report, New Brunswick had the highest rate at $59,500. As of Jan. 1, 2014, Newfoundland has the highest at $60,760.
Also within the five-year timeframe, the WHSCC should come up with a plan to ensure the average assessment rate for employers in the province is on par with the average assessment rate for all provinces in Atlantic Canada. Last year, the average was $2.20. This year, it is $2.05.
The Workplace Health, Safety and Compensation Act should be amended to allow the WHSCC to go to court to require employers to produce records showing their estimated annual payroll if an employer refuses to provide them.
The provincial minister responsible for the WHSCC, Dan Crummell, says the government is currently reviewing the recommendations. See