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Benefits-related federal budget measures you may have missed

Posted by on Apr 1, 2012 in Health, Income Tax, Retirement | 0 comments

Mainstream media has done its usual thorough job covering the Federal budget, so everyone knows the penny is being abolished and the age to collect OAS will be gradually increased from 65-67 starting in April 2023 with full implementation by January 2029. However, here are several other budget measures affecting benefits that were less widely publicized.

1. The Feds will require  federally-regulated private sector employers to insure long term disability plans. This is in response to companies like Nortel who self insured LTD and left their employees without full disability coverage when the company went under. It remains to be seen if the provinces will follow suit.

2.Premiums paid by employers for group sickness or accident insurance plans (i.e. AD&D, critical illness insurance) will become taxable benefits to employees. This measure will not affect the taxation of private health services plans (health care & dental plans).

 

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