Changes to pensions, workers’ compensation and minimum wages

This legislative update is a real mixed bag of amendments and government initiatives. Where possible, references to Web sites have been included to provide additional information.

Federal

Human Resources Development Canada has proposed changes to the Employment Insurance regulations in order to charge interest on debt resulting from misrepresentation.

If these changes come into effect, EI claimants, employers or third parties who have knowingly abused the EI program and, as a result, have an outstanding debt arising from the misrepresentation alone, would be charged interest on that debt.

According to HRDC, the purpose of charging interest is to encourage debtors to repay debts owing to the Crown quickly, while protecting the integrity of, and public trust in, the EI program.

If adopted, the amendments would become effective on July 1, 2002. The proposed rate of interest is the Bank of Canada average rate plus 3 per cent, calculated daily and compounded monthly starting on July 1, 2002.

Manitoba

Manitoba’s Workers Compensation Board has released the Employer’s Reference Guide 2002. The guide provides employers with general claims information, as well as industry classifications and assessment rates.

It also covers annual workers’ earnings reports and the quarterly earnings reporting program. The guide is available online at www.wcb.mb.ca/pdf/employer_guide.pdf.

Newfoundland and Labrador

Newfoundland and Labrador’s minimum wage increased from $5.50/hour to $5.75/hour as of May 1. There will be an additional 25-cent increase on Nov. 1, bringing the minimum wage up to $6/hour.

Changes to Newfoundland and Labrador’s Occupational Health and Safety Act came into effect on Jan. 1. They require small businesses (fewer than 10 employees) to have an employee health and safety representative complete a health and safety training program.

The program was three days long, but has now been reduced to 1.5 days for small businesses so that employees won’t have to be away from the workplace for three days.

Northwest Territories

Bill 1, the Human Rights Act, was introduced on Feb. 21. If passed, the Bill will replace the Fair Practices Act.

It will expand the list of prohibited grounds of discrimination (adding ethnic origin, religion, sexual orientation and social condition), establish an independent Human Rights Commission, and put in place modern investigative and adjudicative processes for dealing with complaints.

Ontario

The Ontario government has announced that it will invest more than $3.6 million to develop pilot training programs in nine sectors experiencing skills shortages. The programs will provide foreign-trained Ontarians with the skills and knowledge they need to practice their profession or skilled trade in the province without duplicating what they have already learned elsewhere.

The programs are being developed by public/private partnerships that involve employers, regulators, colleges and universities, labour representatives and community-based agencies.

The nine sectors for which workers will be trained are:

•critical health care (medical radiation technologists, respiratory therapists);

•midwifery;

•teaching;

•precision machining and tooling trades;

•health informatics and financial services programming;

•skilled construction trades (plumbing, sheet metal, carpentry and manufacturing);

•medical laboratory technology;

•nursing; and

•bioprocessing and bioinformatics;

Prince Edward Island

Several amendments to P.E.I.’s Workers Compensation Act came into effect on April 1. The Workers Compensation Board has posted a series of questions and answers to help employers and employees understand the impact of the changes. See www.wcb.pe.ca/amendments.html for information about:

•the three-fifths waiting period;

•chronic pain coverage;

•appeal processes; and

•the duty to accommodate.

Quebec

The Newsletter on Supplemental Pension Plans from the RRQ (Régie des rentes) is the most recent government publication to summarize the new provisions of the Supplemental Pension Plans Act and its regulations (Bill 102). It incorporates all of the amendments made since the RRQ’s last detailed summary, issued in April 2001, and gives a plain language overview of key provisions and requirements for compliance. Visit, www.rrq.gouv.qc.ca/an/prive/lettrercr/lettre14.htm.

Saskatchewan

Saskatchewan’s minimum wage increased to $6.35/hour on May 1 and to $6.65/hour on Nov. 1. This is the first increase to the minimum wage since Jan. 1, 1999, when the minimum wage was set at $6/hour.

There are changes galore to Saskatchewan pension legislation. Bill 18, the Saskatchewan Pension Plan Amendment Act, 2002, proposes amendments to the duties of the board and annuity payment schedules. It would also repeal the ability of board members to elect to revoke retirement.

Bill 17, the Public Employees Pension Plan Amendment Act, 2002 proposes amendments respecting pension division on marriage breakdown. If passed, the bill would reduce the age before which a spouse or former spouse must transfer funds to which they are entitled. The current age is 55 and the proposed age is 50. The funds must be transferred to a pension plan or fund, or a retirement savings plan or fund, that does not permit withdrawal of contributions.

And, the Pension Benefits Amendment Regulations, 2002 came into effect April 1. The new regulations provide retirees with more flexibility in managing their financial affairs by allowing money in existing life income funds (LIF) and locked-in retirement income funds (LRIF) to be transferred to a prescribed registered retirement income fund (RRIF).

Marcia McDougall is a consultant with Hewitt Associates and the editor of Carswell’s monthly newsletter The Canadian Employer. She may be contacted at (416) 225-5001. She is grateful to Hewitt’s research consultants for their assistance in the preparation of this column.

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