Ontario adopts multilateral PRPP agreement and BC cuts medical services plan premiums
Mar 14, 2017
An in-depth look at these and other subjects are covered in the current issue of the Morneau Shepell News & Views
TORONTO, March 14, 2017 /CNW/ - Morneau Shepell released the March 2017 issue of its monthly newsletter, News & Views, in which the company looked at a number of topics, including pooled registered pension plans in Ontario and the reduction of premiums on the provincial medical services plan in British Columbia.
- Ontario's adoption of Multilateral Agreement on PRPPs – Effective March 31, Ontario will join the federal government and a number of other provinces in signing the Multilateral Agreement Respecting Pooled Registered Pension Plans and Voluntary Retirement Savings Plans (the "Multilateral PRPP Agreement"). The adoption of the Multilateral PRPP Agreement is the final regulatory step required to allow financial institutions to offer PRPPs in Ontario.
- Medical Services Plan (MSP) premiums cut by 50 per cent – In its 2017 budget, the British Columbia government announced that Medical Services Plan premiums will be reduced by 50 per cent for residents with a net annual household income of less than $120,000. These and other budget measures are contingent on the outcome of the provincial election May 9, 2017. BC is unique in collecting monthly premiums from individuals to fund health care.
- Tracking the funded status of pension plans as at February 28, 2017 – Morneau Shepell shared the changes in the financial position of a typical defined benefit pension plan since December 31, 2016. The graph in the article shows the impact of three typical portfolios on plan assets and the effect of interest rate changes on solvency liabilities of medium duration.
- Impact on pension expense under international accounting as at February 28, 2017 – Morneau Shepell shows the expense impact for a typical pension plan that starts the year at an arbitrary value of 100 (expense index). Since the beginning of the year, the pension expense has increased by 1 per cent (for a contributory plan) due to the slight decrease in the discount rates.
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