Pension Review Panel Delivers Final Report

Labour and Workforce Development Minister Mark Parent received the final report of the Pension Review Panel today, Jan. 27.

The panel -- chaired by former Maritime Life president and CEO Bill Black, labour lawyer Ron Pink and former president of the Canadian Institute of Actuaries Dick Crawford -- was established in February 2008 to determine if the Pension Benefits Act should be updated. It has been 20 years since the act was last substantively reviewed.

"I wish to thank Mr. Black, Mr. Crawford and Mr. Pink for this substantial piece of work and for their efforts on behalf of Nova Scotians," said Mr. Parent. "Over the next several weeks, staff will review and evaluate the report's recommendations with a view to what is underway in other jurisdictions and what is in the best interests of the people of Nova Scotia."

Key recommendations in the final report include:

• Requiring all pension plan promises to be properly funded. In the current environment, some promises such as indexation of pensions are not funded, and some sponsors are partially exempted from full funding.
• Simplifying rules and permitting greater flexibility in plan design.
• Replacing going concern and solvency funding standards with a single standard.
• Improving governance and requiring greater transparency for employees and representatives. Involving employees in governance is strongly encouraged.
• Having an agency to administer a provincewide plan and to promote pension knowledge.

The review began with a discussion paper last May. By September, the panel had received 51 written submissions and met with key interested parties.

A position paper in October responded to the feedback and asked for additional input. There were 42 written submissions and additional meetings with interested groups.

"The available data show that pension plan participation is dropping and employee understanding of its importance is low, especially among younger workers," said Mr. Black.