SM Blog: » see older posts
- Sunday March 11, 2012
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The Winnipeg Art Gallery Presents...
American Chronicles: The Art of Norman Rockwell March 2, 2012 to May 20, 2012 - » Read More
- Sunday March 11, 2012
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National Exposure
In addition to speaking on current benefit trends at the HRPA in Toronto last month, Kevin and I were both published in National industry magazines... - » Read More
- Thursday March 1, 2012
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Jets Make a Big Splash at DU Ministers Dinner
Shane Hnidy (TSN - Retired Boston Bruin), Dustin Byfuglien and Zach Bogosian support Ducks Unlimited and the Oak Hammock March Interpretive Centre - » Read More
SM Benefits & Pensions:
Manitoba Pension Legislation Misses the Mark
Posted by: Kevin McFadden
In addition to these changes vesting was changed to immediate from two years meaning that employers forfeit contributions for any employees who leave them in the first two years. Under prior legislation employers who chose to have a two year vesting period were able to retain those employer contributions if an employee left them after the first two years of employment.
This change has discouraged employers from setting up pension plans and encouraged the move to more flexible DPSP/RRSP arrangements. In the end it is the average worker is who is penalized due to the fact that their money is not locked until retirement and susceptable to unlocking.
At the end of the day if government wants to encourage long term permanent savings then they need to incent employers to set up pension plans. Sadly the current legislation does the opposite.