Bill C-47, a legislation reform with profound impact on pension plans, recently received royal assent on June 22, 2023. This marks a significant occurrence wherein numerous amendments to the Income Tax Act (Canada) (ITA) and its regulations (ITA Regulations) are now implemented as part and parcel of the 2023 Federal Budget.
Specifically of note for legal professionals within the pension sector, the legislation introduces amendments that permit retroactive contributions to defined contribution (DC) registered pension plans. This is a development long-expected since its first introduction in 2021.
As previously dissected in a blog by Bennett Jones LLP, these changes have a thorough impact on the correction of contribution errors for Defined Contribution Pension Plans. The implementation of the changes permits corporations and law firms a new angle from which to audit their pension contribution approach, potentially affecting their strategies for years to come.
For a comprehensive and in-depth exploration of this subject, please refer to the complete article at JD Supra.