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Ontario Court of Appeal Overturns Lower Court:
No Surplus Transfer Required on Sale of a Business
The Ontario Court of Appeal released its decision – which employers will find welcome – in Burke v. Hudson’s Bay Company on May 20, 2008. Overturning a 2006 trial decision, the Court allowed the employer’s appeal and found that it could transfer pension plan members and assets to a purchasing business without transferring a proportionate share of surplus. The Court further held that all expenses were appropriately paid out of the pension fund, and that the employer acted well within parameters of the pension plan and trust.
2008 Alberta Budget: Continued Prosperity Results in
Elimination of Health Premiums
In her budget tabled on April 22, 2008, Alberta’s Minister of Finance and Enterprise, Iris Evans, detailed a number of spending increases and tax rebates to assist provincial residents. Of particular interest to employers with operations in Alberta is the elimination of Alberta Health Care Insurance Plan (AHCIP) premiums effective January 1, 2009. Employers who pay all or part of their employees’ AHCIP premiums will experience a significant cost savings. Employers should review their contractual commitment and possibly clarify their position should this premium be reinstated into the future.
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