2020 saw small incremental changes in legislation little of which has an immediate impact on Group Benefits and Retirement programs. With that said, there are some important changes that you need to know about:
1: The Financial Services Regulatory Authority of Ontario (FSRA formerly FSCO) announced on December 11, 2019 that it would increase the audit threshold for Pension Programs in Ontario from $3,000,000 to $10,000,000. This means:
· Any plans with less than $10,000,000 will not be required to file an auditor’s report along with their plan financial statements for any plan with filing due after December 11, 2019
· Financial Statements along with applicable forms and SIP&P must still be filed for all plans
· Plans with a year end of September 30, 2019 would still be able to take advantage of the reduced requirements as their filing is not due until March 2020
2: OHIP Travel Coverage changed on January 1, 2020. As a result, OHIP will no longer cover most medical expenses incurred while traveling outside of Canada. This means:
· If your Group plan has group Out of Country Travel:
o There is no change for your employees
o Additional costs will be taken on by your insurance company
o Your large claim pooling premiums are likely to increase at renewal due to these additional costs
o If your pooling agreement does not include Out of Country from the first dollar, the plan may also take on additional expenses up to the pooling threshold
· If your Group plan does not have group Out of Country Travel:
o There will be no impact to your plan or pooling charges
o If you fund individual travel policies for key employees, you should review these policies to ensure that these employees are not out of pocket should a claim occur
o If the company does not provide travel coverage for any employees, you may still wish to encourage staff to review their policies and ensure there are no surprises while they travel
3: Deduction limits increased for 2020. A summary of these adjustments can be found below:
If you have any questions on the topics above, please reach out to us!