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Adopting the New Lump Sum Transfer Rules: The Sooner the Better
The Practice Standards Council of the Canadian Institute of Actuaries (CIA) approved a new Standard of Practice for Determining Pension Commuted Values in February, which take effect on September 1, 2004. Most jurisdictions can adopt the new Standard by administrative order, but Ontario, Quebec and New Brunswick must first amend their pension regulations. Any regulatory delay will mean expense and inconvenience for plan sponsors.
Federal Budget 2004:
Restricted Pension Fund Investment
in Income Trusts
On March 23, 2004 Finance Minister Ralph Goodale tabled the 2004 Federal Budget. Unlike the 2003 Budget, which increased retirement savings limits, this cautious pre-election budget included few provisions of interest to employers and other benefit plan sponsors. However, there was a big surprise in the form of measures that will limit the investment of pension funds in income trusts.
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