We recommend that pension plan sponsors check what their plan
texts say about the crediting of interest on contributions made by
employees to the plan and lump sums payable to terminated
New rules were recently introduced to clarify the interest that
should be applied to those amounts. For defined benefit pension
plans that are not insured, if the plan text is silent on this
issue, the interest rate must be at least the prescribed bank
deposit rate. A plan sponsor may be able to credit employee
contributions with interest equal to the pension fund rate of
return; however, this must be expressly provided for in the plan
text for DB plans.
For defined contribution pension plans that are not insured, the
new rules require that the interest rate be at least equal to the
pension fund rate of return. These new rules were effective July 1,
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On Thursday, September 22, 2016, Dentons hosted a panel discussion about the management of liabilities and risks associated with environmental crises, including potential liabilities for directors and officers and provided insight into risk and liability techniques associated with environmental crisis management.
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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