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Update: Application of bill C-13 to benefit trusts

In our last edition of News & Views (see CPP Changes to Employer-Paid Benefit and ASO Plans), it was noted that the application of Bill C-13 did not apply to benefit trusts. Recent developments have put into question whether this remains the case. If Bill C-13 includes trusts, there is a realization that the application of this legislation from a practical perspective for benefit trusts will be difficult, particularly for multi-employer plans, where employees/members are employed by several employers. As well, there may be additional financial costs to these plans if the trust is deemed the employer and will be required to remit CPP contributions.

A number of benefit trust plan sponsors are in the process of seeking legal advice to determine the impact to their program and/or are approaching their industry representatives (e.g. Multi-Employer Benefit Plan Council of Canada). In the meantime, we will continue to provide updates in future News & Views publications as this matter develops.