Alberta’s new pension legislation to take effect Sept. 1 / Brunswick Smelter employees in strike position
Alberta’s new pension legislation to take effect Sept. 1
CALGARY — Changes to Alberta’s pension regulations will come into effect this fall.
The Employment Pension Plans Act aims to provide more flexibility to private sector pension plans and improve long-term stability, as well as encouraging the establishment of new plans, according to the provincial government.
"Attractive features of the legislation include its promotion of innovation in plan design, more flexible funding rules and reduced administrative complexity," said Chris Brown, the former Alberta chair of the Joint Expert Panel on Pension Standards and current partner at Blake, Cassels & Graydon LLP.
Regulation would establish funding rules for private sector pension plans that lean towards a target benefit model on a go-forward basis only.
While the legislation was passed in 2012, the cabinet only approved it on July 22.
"Private sector plan sponsors such as employers and unions have expressed concern about the long-term viability of their plans and have demanded more flexibility," said Doug Horner, the province’s finance minister. "To further delay proclaiming this act and its regulation would be irresponsible to the many organizations across Alberta who are eagerly awaiting it."
Key items in the new legislation include:
•more flexible rules for the establishment of different types of plans and discussion on new ideas for plan rules on how to fund target benefit plans
•rules for unlocking of benefits for circumstances noted in the act
•new disclosure rules that have been revised to be more plan type specific and expanded to provide information to more interested parties
•clarification of the roles and functions of the administrator, fund holder and participating employers
•some specific rules related to the establishment and maintenance of funding and governance policies
•rules for enforcement, including limits on fees and penalties and establishment of the Alberta Pension Tribunal.
Brunswick Smelter employees in strike position
Belledune, N.B. — Talks are becoming frustrated in the first negotiations between resource giant Glencore and employees at Brunswick Smelter.
"This is Glencore’s first negotiations since it purchased the smelter last year. You would think they would treat employees, families and the community with fairness and respect." said Tony DePaulo, assistant to the United Steelworkers (USW) Atlantic Canada director.
"Instead of seeking a fair settlement, Glencore has repeatedly demanded excessive concessions. The workers are ready to negotiate a fair deal and we call on Glencore to do the same."
USW Local 7085 represents 300 employees at the Belledune, N.B. workplace.
Workers voted on July 24 to reject Glencore’s contract, which according to the union weakened pensions, health and safety standards, disability benefits, and vacation pay, among other concessions.
The vote marked workers’ second rejection of a proposed contract, bringing the employees and company to a strike/lockout position. A notice of 24 hours is required prior to any job action.
According to DePaulo, the union has no intention of striking and still believes a fair settlement is achievable.
"Working families and the community should not be held hostage by unreasonable demands and threats," he said. "We’re calling on Glencore to return to the bargaining table so we can negotiate a reasonable settlement that is fair to everyone."
