Canada – Workers’ Benefits and Compensation

New regulatory, technological and cultural developments are shaping the evolution of Canada’s pension and benefits sector in 2024.

Here are five factors that affect how pension plans and funds work:

1. Regulatory Guide. The Financial Services Regulatory Authority of Ontario (FSRA) published finalized guidance on general administrative monetary penalties. This guidance outlines the factors that the FSRA will consider when determining whether to impose a general administrative monetary penalty.




2. Payroll Policy. The Canada Revenue Agency introduced an administrative policy effective January 1, 2024, that clarifies the province or territory of employment designation for remote workers. This policy affects deductions related to the Canada Pension Plan, Quebec Pension Plan, Employment Insurance, Quebec Parental Insurance Plan and income tax.




3. Employment Law. The shift to remote and hybrid work has brought new legal considerations for employers with a mobile workforce. Employment agreements should be updated, especially when outdated provisions of governing law jeopardize the enforceability of the agreements. Also, Ontario now requires fully remote workers to be included in mass outage counts and a reminder that British Columbia employers are required to engage in workplace safety assessments for home offices.




4. Domestic Investments. The 2024 federal budget announced the formation of a task force to explore greater domestic investment opportunities for Canadian pension funds. According to budget documents, the stated aim of this initiative is to encourage pension funds to invest in sectors such as digital infrastructure, artificial intelligence (AI), physical infrastructure and venture capital.




5. Artificial intelligence. UA offers significant potential benefits to pension plan administration, including automation of repetitive tasks, improved data collection, and improved member communication. However, its use also presents risks such as data privacy concerns, cybersecurity threats, and the potential for inaccurate or misleading results. Regulators such as the Office of the Superintendent of Financial Institutions have outlined expectations for managing these risks, emphasizing the need for robust governance frameworks and effective oversight.

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The content of this article is intended to provide a general guide to the topic. A specialist’s advice should be sought for your specific circumstances.