Employee Life and Health Trusts and Health and Welfare Trusts


Employers and Benefit Plan Administrators are faced with a relatively new choice in determining the appropriate vehicle for providing certain employee benefits: should benefits be structured through an Employee Life and Health Trust (“ELHT”) or the historic Health and Welfare Trust (“HWT”)? What are the distinctions and why are they relevant?

The relatively recent introduction of ELHTs resulted in significant uncertainty in the pension benefits industry in Canada. Specifically, much of the concern arose from a lack of clarity as to how the ELHT regime would impact existing trusts operating as HWTs. After commentary from the pension benefits community, legislation from the Department of Finance and interpretive positions being released by the Canada Revenue Agency, the dust has mostly settled and many concerns have subsided. Accordingly, it is a suitable time to revisit the basic features of an ELHT and a HWT, consider the most recent statements of the CRA and compare the tax and other advantages and disadvantages of using an ELHT versus a HWT.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Lawson Lundell LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.