TORONTO, April 24, 2014 /CNW/ - Morneau Shepell (TSX: MSI), the largest
company in Canada offering human resources consulting and outsourcing
services, welcomed today's announcement that the Government of Canada
will be launching a national discussion of proposed new target benefit
pension plans that share the risks between employers and employees. The
announcement was made earlier today by the Honourable Minister of State
for Finance Kevin Sorenson during a keynote speech to the Economic Club
of Canada in Toronto.
Mel Bartlett, Managing Partner for Morneau Shepell's Atlantic office,
commented, 'This announcement by the Government of Canada is a
progressive move, and a necessary step in the right direction towards
federal pension reform. It will have positive implications for pension
plans in this country."
"Traditional defined benefit pension plans have been under considerable
pressure as a result of improved life expectancy and capital markets
volatility," Bartlett said. "Across Canada, there is agreement that
pension issues must be reviewed and addressed. Today's announcement
provides a great framework for discussion in shifting the focus to
sustainable solutions such as shared risk plans that provide plan
members with adequate, predictable pensions."
Fred Vettese, Morneau Shepell's Chief Actuary said, "The review
conducted in New Brunswick focused on financial sustainability,
intergenerational equity and benefit transparency. Alberta and Nova
Scotia have also introduced legislation allowing target benefit plans.
We are pleased to see the Government of Canada consider a similar path,
and would encourage other jurisdictions to follow suit as well."
Morneau Shepell and shared risk and target benefit pension plan design
Morneau Shepell assisted in the development of New Brunswick's Shared
Risk Pension Plan design in 2012. The company is now working with a
number of other pension plans in New Brunswick that have adopted the
Shared Risk Pension Plan model, plus several others that are
considering the change.
About Morneau Shepell Inc.
Morneau Shepell is the largest company in Canada offering human
resources consulting and outsourcing services. The Company is the
leading provider of Employee and Family Assistance Programs, as well as
the largest administrator of retirement and benefits plans and the
largest provider of integrated absence management solutions in Canada.
Through health and productivity, administrative, and retirement
solutions, Morneau Shepell helps clients reduce costs, increase
employee productivity, and improve their competitive position.
Established in 1966, Morneau Shepell serves more than 21,000 clients,
ranging from small businesses to some of the largest corporations and
associations in North America. With approximately 3,300 employees in
offices across North America, Morneau Shepell provides services to
organizations across Canada, in the United States, and around the
globe. Morneau Shepell is a publicly-traded company on the Toronto
Stock Exchange (TSX: MSI). For more information, visit morneaushepell.com.
SOURCE Morneau Shepell Inc.