Ontario government to end OHIP+ coverage for young people with private drug plans
An in-depth look at these and other subjects in the current issue of the Morneau Shepell News & Views
TORONTO, Feb. 21, 2019 /CNW/ - Morneau Shepell has released the February 2019 issue of its monthly newsletter, News & Views, in which the company looks at the following topics:
- Ontario to end OHIP+ drug coverage for young people with private drug plans – On January 2, 2019, the Ontario government released a regulatory notice and draft regulation that will make OHIP+ drug coverage only available to Ontarians under the age of 25 who do not have drug coverage through a private drug benefit plan. Changes resulting from the new draft regulation will take effect in March 2019. Those under the age of 25 without private drug benefit coverage will continue to have access to approximately 4,400 drugs included in the Ontario Drug Benefit Formulary.
- Canada Revenue Agency releases draft newsletter on annuity purchases from pension plans – The Registered Plans Directorate of the Canada Revenue Agency released a draft newsletter for public consultation, seeking comments on annuity purchases from pension plans by March 1, 2019. The draft newsletter provides guidance on the tax effects of the purchase of annuities by both plan administrators and individuals from registered pension plans, with a focus on purchases of annuities from defined benefit pension plans.
- New provisions added to CPA Canada Handbook on financial reporting for DB pension plan sponsors– The Accounting Standards Board issued a decision summary affecting defined benefit pension plan sponsors that report under Sections 3462 (private enterprise) and 3463 (not-for-profit organizations) of the Chartered Professional Accountants of Canada Handbook. The summary provides guidance on the inclusion or exclusion of the explicit Provision for Adverse Deviations in the financial reporting of these entities.
- Alberta adopts joint governance structure for large public sector pension plans – On December 11, 2018, the province of Alberta adopted Bill 27, which will transition the Local Authorities Pension Plan, the Public Service Pension Plan and the Special Forces Pension Plan to a joint governance structure. This means that new sponsor boards and corporations will be responsible for the plan design and administration, and the Alberta government will no longer act as the plan sponsor and administrator. The plans will continue to be under the jurisdiction of the Employment Pension Plan Act and the Alberta Superintendent of Pensions.
- Tracking the funded status of pension plans as at January 31, 2019 – Morneau Shepell describes the funded status of pension plans at end of 2018 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 2018. A table shows the evolution of the solvency ratio over January 2019 for the three typical investment portfolios.
- The impact of pension expense under international accounting as at January 31, 2019– Morneau Shepell has shown the evolution of the pension expense over January 2019 for a typical defined benefit pension plan. Since the beginning of the year, the pension expense has increased by 5 per cent (for a contributory plan) due to the decrease in the discount rates, despite the good returns on assets (relative to the discount rate).
About Morneau Shepell
Morneau Shepell is the only human resources consulting and technology company that takes an integrated approach to employee well-being, health, benefits and retirement needs. The Company is the largest administrator of retirement and benefits plans and the largest provider of integrated absence management solutions in Canada. LifeWorks by Morneau Shepell is a total well-being solution that combines employee assistance, wellness, recognition and incentive programs. As a leader in strategic HR consulting and innovative pension design, the Company also helps clients solve complex workforce problems and provides integrated productivity, health and retirement solutions. Established in 1966, Morneau Shepell serves approximately 24,000 clients, ranging from small businesses to some of the largest corporations and associations. With more than 4,500 employees in offices worldwide, Morneau Shepell provides services to organizations around the globe. Morneau Shepell is a publicly-traded company on the Toronto Stock Exchange (TSX: MSI). For more information, visit morneaushepell.com.
SOURCE Morneau Shepell Inc.