In its first federal budget, presented on March 22, the Liberal government announced a range of developments that will affect employers and the pension and benefits industries. They include:

  • The investment of more than $120 billion in infrastructure over the next decade. The government said it would also seek additional funding from Canada’s pension funds.

Read more: Liberals to ‘engage public pension plans’ as part of infrastructure boost

  • Consultations in the coming months to give Canadians an opportunity to share their views on enhancing the Canada Pension Plan.

Read more: Government to launch consultations on enhanced CPP

  • Changes to the agreement powers of the Pension Benefits Standards Act.

Read more: Budget 2016 promises changes to pension regulations

  • A consultation process on the investment rule that restricts pension plans from holding more than 30 per cent of the voting shares of a company.

Read more: Government to consult on usefulness of 30% investment rule

  • A commitment to provide more flexibility in parental leave benefits and make compassionate care benefits easier to access and more flexible and inclusive.

Read more: Government commits to improve compassionate care leave and parental leave benefits

  • A proposal to cancel the provisions in the Old Age Security Act that increase the age of eligibility for old-age security and guaranteed income supplement benefits from 65 to 67 and allowance benefits from 60 to 62 over the 2023-29 period.

Read more: Changes to OAS and GIS benefits confirmed

  • Providing $39 million over three years, starting in 2016-17, to the Canadian Foundation for Healthcare Improvement, with the aim of supporting ongoing efforts to identify and introduce innovations in the health-care system.

Read more: Government commits $39 million to foundation for healthcare improvement

  • After Finance Minister Bill Morneau stated there would be a $100,000 cap on favourable tax treatment for stock options, the budget has left the existing regime in place — at least for now.

Read more: Liberals spare stock options

For more quick hits on the budget, visit Benefits Canada‘s companion site, Advisor.ca

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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