Pension Benefits Standards Act, 1985 (R.S.C., 1985, c. 32 (2nd Supp.))

Marginal note:Notification of remittance

• 9.1 (1) The administrator of a pension plan must notify in writing the trustee or custodian of the pension fund of all amounts that are to be remitted to the pension fund and the expected date of the remittance.

• Marginal note:Effect of late remittance

  (2) If a payment to a pension fund is not remitted within 30 days after the date referred to in subsection (1),

  • (a) the administrator of the pension plan must immediately notify the Superintendent; and

  • (b) a trustee or custodian of the pension fund must, if the administrator is the employer, immediately notify the Superintendent.

• Marginal note:Content

  (3) The Superintendent may direct the form and content of any notice referred to in subsection (2) as well as the manner of providing that notice.

Marginal note:Letters of credit

• 9.11 (1) Subject to the regulations, an employer may provide a trustee with, or transfer to a trust, a letter of credit made out to the trustee for the benefit of the pension plan, instead of paying into the pension fund an amount that is required to be paid under subsection 9(1.1).

• Marginal note:Copy to administrator

  (2) As soon as feasible after the letter of credit is issued, the employer must provide the administrator with a copy of it.

• Marginal note:Deductions from remuneration

  (3) The employer may not obtain a letter of credit in respect of an amount that it has deducted from members’ remuneration.

• Marginal note:Non-application

  (4) Subsection (1) does not apply in respect of a pension plan that has been terminated in whole.

Marginal note:Duty of employer

9.12 The employer must ensure that the letter of credit and the trust agreement comply with this Act and the regulations and must, at any intervals or times and in the form that the Superintendent directs, provide the Superintendent and the administrator with a written statement confirming that compliance.

Marginal note:Obligation of trustee

• 9.13 (1) The trustee must hold the letter of credit in trust for the pension plan.

• Marginal note:Disclosure

  (2) The trustee must file with the Superintendent any information in respect of a letter of credit that the Superintendent requires at any intervals or times that the Superintendent directs.

• Marginal note:No liability

  (3) No civil action lies against the trustee for having, in good faith and in accordance with the regulations, on the direction of the employer, allowed the letter of credit to be cancelled or its face value to be reduced.