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Article: Nova Scotia changes pension law; Employers must fund deficits before winding up defined benefit plans.(News)
- Article from:
- Business Insurance
- Article date:
- December 24, 2007
- Author:
CopyrightCOPYRIGHT 2007 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: GLORIA GONZALEZ
HALIFAX, Nova Scotia-Pension plan sponsors in Nova Scotia now must fully fund deficits when they terminate their pension plans, a change seen as another disincentive for employers to offer defined benefit plans.
The province, meanwhile, will follow Ontario, Alberta and British Columbia in reviewing its pension statute, which has not been substantially revised since 1988.
Earlier this month, Nova Scotia's Legislature amended the Pensions Benefits Act to require most employers that wind up their pension plans to make payments into the pension fund if funds are insufficient to pay for benefits. Multiemployer pension plans ...