As we look to the year ahead, there are many dates for professionals in the pension, benefits and investment industries to add to their calendars. Better make it quick, because many of these take effect as soon as the new year arrives.
January 1:
- An increase of $400 (from $54,900 in 2016 to $55,300 in 2017) to the maximum pensionable earnings under the Canada Pension Plan takes effect. Contributors who earn more than $55,300 in 2017 are not required or permitted to make additional contributions to the CPP. The basic exemption amount remains at $3,500.
Read: Government increases CPP pensionable earnings and adds new disability standards
- The Income Tax Act will incorporate updated mortality tables for the purpose of calculating the extent to which annuities of that kind will be subject to tax. The new tables will apply to supplementary pension benefit annuities purchased after Jan. 1, 2017.
Read: 2017 tax change gives extra incentive to look at annuitizing certain pension obligations
- The Ontario government’s final regulations regarding pension advisory committees come into effect. The changes are an effort to make it easier to form advisory committees.
Read: Are you ready for new pension advisory committee rules in Ontario?
- Beginning in January 2017, Ontario will begin excluding certain high-strength, long-acting opioids from the formulary for the Ontario Drug Benefits program.
Read: Ontario to exclude high-strength opioids from public drug formulary
- The Quebec Health Services Fund contribution rate for employers with a payroll of $1 million or less will be decreased from 1.6 to 1.45 per cent for the primary and manufacturing sectors, and 2.7 to two per cent for the service and construction sectors.
Read: Quebec proposes health tax relief for small employers
- Quebec’s version of the pooled registered pension plan, called the voluntary retirement savings plan, takes effect on Jan. 1, 2017, for the largest employers.
Read: PRPPs continue to languish as provinces vary in enthusiasm for new option
- In Prince Edward Island, the premium tax rates on group premiums for life, accident and sickness insurance will increase, from 3.5 per cent to 3.75 per cent. This will result in a slightly higher benefit cost increase for employers in the province, according to Eckler Ltd.
- The Newfoundland and Labrador government is introducing two new annual pension fees in 2017, one to be paid by pension plan administrators and another to be paid by record keepers.
Read: Newfoundland and Labrador to bring in new annual pension fees in 2017
Spring 2017:
- The Investment Management Corp. of Ontario, which was established by the Ontario government in July 2016 to improve the management of public sector pensions and other investment funds, will be fully operational.
Read: Ontario establishes new body to manage public pensions, investment funds
April 1:
- Amendments to British Columbia’s drug price regulation, which will impact the province’s low-cost alternative (LCA) program, take effect.
The changes allow the government to designate one generic drug as the exclusive generic drug for an LCA category, providing it meets specific criteria, according to Eckler, which notes that this could lead to reductions in the prices of those generic drugs designated as the exclusive generic for their category. “Assuming these price reductions are also applied to prescriptions paid for by private plan sponsors, this change could lead to lower drug costs for private plans as well,” said Eckler in a news bulletin. “However, the ultimate impact would depend on the extent of generic penetration in a specific plan.”
Dec. 31:
- Administrators of private sector pension plans in Alberta and British Columbia should complete a written assessment by this date, following the first assessment completed on Dec. 31, 2016.
Read: Coming soon: B.C. and Alberta triennial pension assessment
- Alberta has extended its deadline for pension plan administrators to have a governance policy in place. The previous deadline had been Dec. 31, 2016, but based on stakeholder feedback and in order to have the governance and associated polices better aligned with the triennial plan assessment review, it has been extended to Dec. 31, 2017.
Read: Alberta extends deadline for private sector pension governance policies
- Under Quebec’s phased-in approach to its version of the pooled registered pension plan – called voluntary retirement savings plans – employers with between 10 and 19 employees will need to offer them by this date.
Read: PRPPs continue to languish as provinces vary in enthusiasm for new option
2017 in general:
- The federal government’s proposed changes to create more flexible parental benefits are expected to be introduced in 2017.
Read: Will 18-month parental leave become reality?
- The Mental Health Commission of Canada’s five-year strategic plan begins in 2017, which encapsulates the “truly revolutionary” step of talking about mental health in the workplace.
Read: Mental Health Commission publishes five-year strategic plan
- The independent expert panel appointed by the Ontario government to deliver advice and recommendations on the appropriate application of accounting standards for the province’s jointly-sponsored pension plans will report its findings in early 2017.
Read: Ontario forms expert panel to report on pension accounting conflict