As New Brunswick looks to adopt the latest changes to its Pension Benefits Act, partner and chair of Torys' Pensions and Employment practice Mitch Frazer believes the most important amendments are the enhanced communications, annuity buyouts and allowing for reserve accounts.
Mitch told Benefits Canada that "enhancing communication is key because [employees] need to understand how their plan works, what benefits they'll get and [whether there] are any contributions they need to make."
He also noted the statutory discharge of annuity buyouts is important because it provides pension plans with greater security by removing the risk of bankruptcy.
Benefits Canada reported that a religious exemption was included to address employees whose religious beliefs conflict with being a member of a pension plan.
"Not every province has that amendment," Mitch said.
"If people want to opt out, generally they're younger people. I think you'll have very few people [aged 50 and older] opting out on religious grounds because it's such an important benefit for them."
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