While much discussion of the Budget has focussed on proposed
changes to Old Age Security (OAS) and Guaranteed Income Supplement
- gradually increasing the age of eligibility from 65 to 67
starting in April 2023 and allowing for the voluntary deferral of
the basic OAS for up to five years starting on July 1, 2013 - the
Bill also includes a benefit-related change, which if proclaimed in
force will directly affect many federally-regulated employers that
have long-term disability (LTD) plans in place for their employees.
Specifically, the Bill includes amendments to the Canada Labour
Code, which would require every federal employer that provides
an LTD plan to its employees to insure the plan with an insurer,
subject to certain exceptions to be set out in regulations.
Given that the circumstances under which an employer may provide
uninsured LTD benefits are yet to be prescribed, the full impact of
this provision is not yet clear. However, federal employers which
provide LTD benefits on an "administrative services only"
(pay-as-you-go) basis should be aware that if this Bill passes,
they may no longer be permitted to continue such arrangements
Douglas practises exclusively in the area of
pensions and employee benefits, with a particular focus on pension
surplus issues and family law issues related to pensions.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Unfortunately, reasonable accommodation for employees in the workplace continues to be the source of significant litigation and even today we continue to see outrageous examples of employers behaving badly.
We are now beginning to see reported cases involving charges and subsequent fines laid against employers for failing to provide information, instruction and supervision to protect a worker from workplace violence.
On October 13, 2016, the Supreme Court of Canada denied leave to appeal an Ontario Court of Appeal decision which ordered an employer to pay a former employee 37 months of salary and benefits following termination.
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