Pooled Registered Pension Plans Act (S.C. 2012, c. 16)

Marginal note:Compliance with this Act

15 The administrator of a pooled registered pension plan must ensure that the plan complies with the provisions of this Act and the regulations.

Marginal note:Duties of administrator

• 16 (1) The administrator of a pooled registered pension plan must, in accordance with the provisions of this Act and the regulations, administer the plan and its assets and file the required documents with the Superintendent.

• Marginal note:Coordinates

  (2) The administrator must inform the Superintendent, in the form and manner that the Superintendent may direct, of any change to the administrator’s name or the address of its Canadian head office within 30 days after the change.

Marginal note:Records

17 An administrator of a pooled registered pension plan must keep records that are sufficient to allow a member’s share of the assets of the plan to be determined.

Marginal note:Contract between administrator and employer

18 The administrator must notify the Superintendent if an employer fails to comply with the provisions of the contract between the employer and the administrator respecting the amounts and frequency of remittances to the administrator.

Marginal note:Employer terminates participation

19 If an employer terminates their participation in a pooled registered pension plan, the administrator of the plan must, within the prescribed period, notify in writing the Superintendent and the members of the plan who are employees of the employer of the termination and the effective date of the termination.

Marginal note:Superintendent may require meeting

• 20 (1) An administrator must hold a meeting, within the period specified by the Superintendent, to consider any matters set out in a written notice from the Superintendent requiring the administrator to hold a meeting.

• Marginal note:Participation by Superintendent, etc.

  (2) The Superintendent may

  • (a) participate in the meeting;

  • (b) require the administrator to invite members to attend the meeting; and

  • (c) require any other interested persons to attend the meeting.

Marginal note:Transfer of assets to designated entity

• 21 (1) If the administrator is insolvent or unable to act or the Superintendent is of the opinion that it is in the best interests of the members, the Superintendent may order the administrator to transfer every pooled registered pension plan that it administers and all of their assets to any entity that is designated by the Superintendent.

• Marginal note:Rights and obligations

  (2) The designated entity has, with respect to every pooled registered pension plan that is transferred to it, all the contractual rights and obligations of the administrator.

Marginal note:Administration of plan and assets

• 22 (1) The administrator must administer the pooled registered pension plan and its assets as a trustee for the members.

• Marginal note:Standard of care

  (2) In the administration of the pooled registered pension plan and its assets, the administrator must exercise the degree of care that a reasonably prudent person would exercise in dealing with the property of another person and the diligence and skill that it possesses, or ought to possess, taking into account the administrator’s business.

• Marginal note:Pooling

  (3) The funds in members’ accounts may be pooled for the purposes of investing the assets of a pooled registered pension plan.

• Marginal note:Manner of investing

  (4) The administrator must invest the funds in members’ accounts and must do so in a manner that a reasonable and prudent person would apply in respect of a portfolio of investments appropriate for retirement savings.

• Marginal note:Investment managers

  (5) The administrator is entitled to engage the services of any investment manager it chooses for the purposes of investing the funds in members’ accounts.

Marginal note:Investment choices

• 23 (1) A pooled registered pension plan may permit a member to make investment choices from among the investment options offered by the administrator.

• Marginal note:Administrator’s duty

  (2) If a pooled registered pension plan permits a member to make investment choices, the administrator must offer investment options of varying degrees of risk and expected return that would allow a reasonable and prudent person to create a portfolio of investments that is appropriate for retirement savings.

• Marginal note:Default option

  (3) If a member does not make an investment choice referred to in subsection (1) within the prescribed period, the investment option chosen by the administrator as the default option will apply to the account of the member. The administrator will make all the decisions with respect to investing the funds in accounts to which the default option applies.

• Marginal note:Deemed compliance

  (4) With respect to an account in respect of which an investment choice is made by a member, if the administrator offers investment options in accordance with subsection (2) and the regulations, that administrator is deemed to comply with subsection 22(4).

Marginal note:Prohibition — inducements

24 Subject to the regulations, an administrator must not give, offer or agree to give or offer to an employer an inducement to enter into a contract with the administrator in respect of a pooled registered pension plan.

Marginal note:Prohibition — investment options

25 The administrator must not change an investment choice made by a member except on the request of the member or in the circumstances specified in the regulations.

Marginal note:Low-cost plan

26 An administrator must provide the pooled registered pension plan to its members at a low cost.

Employer

Marginal note:Prohibition — employees in included employment

27 An employer must not offer a plan whose purpose is retirement savings to those of its employees who are employed in included employment, unless it is a plan registered under subsection 12(1) or a plan or arrangement described in any of paragraphs (a) to (d) of that subsection.

Marginal note:Obligation — non-discrimination

28 An employer that enters into a contract with an administrator to provide a pooled registered pension plan to a class of employees must provide it to all the members of that class.

Marginal note:Contract between employer and administrator

29 The contract between the employer and the administrator must provide for the amounts in respect of employee contributions and employer contributions, if any, that must be remitted to the administrator and the frequency of those remittances, and for the consequences if the employer fails to comply with the provisions of the contract respecting those remittances.

Marginal note:Employer not liable

30 An employer is not liable for the acts and omissions of the administrator.

Marginal note:Amounts deemed to be held in trust

• 31 (1) An employer must ensure that it keeps separate and apart from its own money all of the following amounts that have not been remitted to the administrator:

  • (a) amounts deducted by the employer from employees’ remuneration;

  • (b) amounts of employer contributions; and

  • (c) any other amounts required to be remitted to the administrator.

  The employer is deemed to hold those amounts in trust for members of the plan.

• Marginal note:If bankruptcy, etc., of employer

  (2) In the event of the winding-up, assignment or bankruptcy of an employer, an amount equal to the amount that by subsection (1) is deemed to be held in trust is deemed to be separate from and form no part of the estate in liquidation, assignment or bankruptcy, whether or not that amount has in fact been kept separate and apart from the employer’s own moneys or from the assets of the estate.

Marginal note:Employer to provide information

32 An employer must provide the administrator with the information that is required by the administrator to comply with the terms of the plan and to discharge its duties under subsection 16(1).

Marginal note:Prohibition — inducements

33 Subject to the regulations, an employer must not demand, accept or offer or agree to accept any inducement from an administrator to enter into a contract with the administrator in respect of a pooled registered pension plan.

Directions of Compliance

Marginal note:Superintendent’s directions to administrators

• 34 (1) If, in the opinion of the Superintendent, an administrator, an employer or any person is, in respect of a pooled registered pension plan, committing or about to commit an act, or pursuing or about to pursue any course of conduct, that is contrary to safe or sound financial or business practices, the Superintendent may direct the administrator, employer or other person to

  • (a) cease or refrain from committing the act or pursuing the course of conduct; and

  • (b) perform those acts that, in the opinion of the Superintendent, are necessary to remedy the situation.

• Marginal note:Directions in the case of non-compliance

  (2) If, in the opinion of the Superintendent, a pooled registered pension plan or its administration does not comply with the provisions of this Act and the regulations, the administration of the plan does not comply with the plan itself, an employer has failed to comply with the provisions of the contract between the employer and the administrator or an administrator has failed to comply with the terms and conditions of its licence, the Superintendent may direct the administrator, the employer or any person to take any of the measures referred to in paragraphs (1)(a) and (b).

• Marginal note:Opportunity for representations

  (3) Subject to subsection (4), a direction under subsection (1) or (2) must not be issued unless the Superintendent gives the administrator, employer or other person a reasonable opportunity to make written representations.

• Marginal note:Temporary direction

  (4) If, in the opinion of the Superintendent, the length of time required for representations to be made under subsection (3) might be prejudicial to the interests of the members, the Superintendent may make a direction with respect to the matters referred to in subsection (1) or (2) that has effect for a specified period of not more than 15 days.

• Marginal note:Continued effect

  (5) A temporary direction under subsection (4) continues to have effect after the expiry of the specified period if no representations are made to the Superintendent within that period or, after representations have been made, if the Superintendent notifies the administrator, employer or other person that the Superintendent is not satisfied that there are sufficient grounds for revoking the direction.

Marginal note:Additional directions

35 If the Superintendent issues a direction in respect of a pooled registered pension plan under section 34, he or she may also issue a direction to the administrator to refrain from entering into any new contracts with employers or accepting any new members with respect to the plan.

Marginal note:Revocation of registration

36 If the administrator of a pooled registered pension plan does not comply with a direction under section 34 or 35, the Superintendent may — at least 60 days after the day on which the administrator is notified of the failure to comply with the direction — revoke the registration and cancel the certificate of registration in respect of the plan. In that case, the Superintendent must notify the administrator of the measures taken, including the date of the revocation and cancellation.

Objections and Appeals

Marginal note:Notice of objection

• 37 (1) An administrator may, within 60 days after the day on which the notification is provided under subsection 12(5) or on which the revocation and cancellation referred to in section 36 occurs, send to the Superintendent a notice of objection setting out the reasons for the objection and all facts relevant to it.

• Marginal note:Reconsideration by Superintendent

  (2) On receipt of the notice, the Superintendent must, without delay, reconsider the refusal or the revocation and cancellation, as the case may be, and vary or confirm the action taken. The Superintendent must, without delay, notify the administrator of the decision.

Marginal note:Appeal to Federal Court

• 38 (1) If an administrator has sent a notice of objection, the administrator may appeal to the Federal Court for an order referred to in paragraph (5)(b)

  • (a) within 90 days after the Superintendent has confirmed the action taken under subsection 37(2); or

  • (b) not less than 90 days and not more than 180 days after the day on which the notice of objection was sent if the Superintendent has not notified the administrator that the Superintendent has varied or confirmed the action taken under subsection 37(2).

• Marginal note:Institution of appeal

  (2) An appeal to the Federal Court must be made by filing in the Registry of the Court, or by sending by registered mail addressed to it at Ottawa, three copies of a notice of appeal in prescribed form.

• Marginal note:Registry to transmit copies

  (3) On receipt of the copies of the notice of appeal, the Registry of the Court must transmit two copies to the Superintendent.

• Marginal note:Documents relevant to appeal

  (4) On receipt of a copy of the notice of appeal, the Superintendent must forward to the Registry of the Court copies of all documents relevant to the appeal.

• Marginal note:Disposal of appeal

  (5) The Federal Court may dispose of an appeal

  • (a) by dismissing it and ordering the appellant to take any measures necessary to ensure that the pooled registered pension plan complies with the provisions of this Act and the regulations; or

  • (b) by allowing it and ordering the Superintendent to register the pooled registered pension plan or to reinstate the registration of the plan, as the circumstances require, and issue a certificate of registration.

• Marginal note:Conditions

  (6) An order referred to in paragraph (5)(b) may include conditions imposed on the appellant that are conditions precedent to the registration or reinstatement of registration of the pooled registered pension plan.

General Requirements

Membership

Marginal note:Full-time employees

• 39 (1) Every employee in a class of employees who is employed in included employment and is engaged to work on a full-time basis for an employer that provides a pooled registered pension plan to that class is a member of the plan, except for employees who terminate their membership under subsection 41(5) or who object to becoming members of the plan because of their religious beliefs.

• Meaning of full-time basis

  (2) In this section, full-time basis means, in relation to an employee of a particular class, engaged to work throughout the year all or substantially all of the normally scheduled hours of work established for persons in that class of employees.

Marginal note:Part-time employees

• 40 (1) Every employee in a class of employees who is employed in included employment and is engaged to work on a part-time basis for an employer that provides a pooled registered pension plan to that class is a member of the plan on and after the day on which the employee completes 24 months of continuous employment with the employer, except for employees who terminate their membership under subsection 41(5) or who object to becoming members of the plan because of their religious beliefs.

• Marginal note:Regulations altering subsection (1)

  (2) The Governor in Council may make regulations extending the period of 24 months referred to in subsection (1).

• Meaning of continuous

  (3) In this section, continuous means, in relation to employment, without regard to periods of temporary interruption of the employment.

• Meaning of part-time basis

  (4) In this section, part-time basis means, in relation to an employee, engaged to work on other than a full-time basis.