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

Act current to 2022-09-11 and last amended on 2022-06-23. Previous Versions

AMENDMENTS NOT IN FORCE

  • — 2019, c. 29, ss. 145(2), (3)

      • 2010, c. 12, s. 1786(5)(F)

        145 (2) Paragraph (b) of the definition former member in subsection 2(1) of the French version of the Act is replaced by the following:

        • (b) à l’article 9.2 et à l’alinéa 28(1)b.1), du participant dont la participation a pris fin ou qui a pris sa retraite, à l’exception de celui qui, avant la cessation totale du régime, s’est vu acheter une prestation viagère qui satisfait, en application de l’article 17.2, à l’ensemble des obligations prévues par le régime relativement à ses prestations ou relativement à toute autre prestation ou toute option visées à l’alinéa 17b), a, au titre de l’article 26, transféré ses droits à pension ou utilisé ceux-ci pour acheter une prestation viagère, ou a vu ses prestations de pension transférées à un autre régime de pension;

      • 2010, c. 12, s. 1786(3)(E)

        (3) Subparagraph (b)(i) of the definition former member in subsection 2(1) of the English version of the Act is replaced by the following:

        • (i) had a life annuity purchased for them that, under section 17.‍2, satisfies all of the plan’s obligations with respect to their pension benefits or any other benefit or option referred to in paragraph 17(b),

        • (i.1) transferred their pension benefit credit under section 26,

  • — 2019, c. 29, s. 147

    • 147 The Act is amended by adding the following after section 17.1:

      Life Annuities

      • Life annuity in lieu of pension benefit
        • 17.2 (1) The purchase of an immediate or deferred life annuity by the administrator of a pension plan for a former member or survivor satisfies an obligation under the plan to provide a pension benefit arising from a defined benefit provision — as well as, in the case of a deferred life annuity, an obligation under the pension plan to provide any other benefit or option described in paragraph 17(b) that relates to that pension benefit — to the former member or survivor if

          • (a) the plan authorizes the purchase of the life annuity in satisfaction of that obligation;

          • (b) the life annuity is of the prescribed kind;

          • (c) the life annuity provides the former member or survivor with payments that

            • (i) in the case of an immediate life annuity, are in the same amount and form as the pension benefit to which the former member or survivor would otherwise be entitled under the terms of the pension plan that are in place on the day of the purchase, or

            • (ii) in the case of a deferred life annuity, are in the same amount as the pension benefit, and the related benefit or option described in paragraph 17(b), to which the former member or survivor would otherwise be entitled under the terms of the pension plan that are in place on the day of the purchase; and

          • (d) the administrator complies with the prescribed notice requirements.

        • Partial satisfaction of the obligation

          (2) Despite paragraph (1)‍(c), the administrator may purchase a life annuity that provides the former member or survivor with payments that are in an amount that is the same as a part of the pension benefit or, in the case of a deferred life annuity, as a part of the pension benefit and related benefit or option. However, that purchase satisfies the obligation under the plan only with respect to that part.

        • Superintendent’s approval

          (3) The administrator shall obtain the Superintendent’s approval of the person from whom the administrator proposes to purchase the life annuity if that person is not a life company as defined in subsection 2(1) of the Insurance Companies Act.

        • Application of section 26.‍1

          (4) For greater certainty, section 26.‍1 applies to the purchase of a life annuity under this section.

  • — 2021, c. 23, s. 141

      • 141 (1) Subsections 10.3(1) to (3) of the Pension Benefits Standards Act, 1985 are replaced by the following:

        • Designated entity
          • 10.3 (1) The Minister may, with the approval of the Governor in Council, designate an entity, as defined in section 2 of the Bank Act, for the purposes, among others, of receiving and holding the assets of a pension plan relating to the pension benefit credit of any person who cannot be located, and of disbursing those assets in a lump sum.

          • Transfer

            (2) In the case of the termination of the whole of a pension plan or in the prescribed circumstances, the administrator of the pension plan or — with the approval of the Superintendent — the trustee or custodian of the pension fund may, subject to subsection (3) and the regulations, transfer to the designated entity the assets of the plan relating to the pension benefit credit of any person who cannot be located.

          • Conditions

            (3) The transfer of assets to the designated entity may be made only if

            • (a) in the case of the termination of the whole of a pension plan, the prior consent of the Superintendent has been obtained; or

            • (b) in the case of a pension plan other than one that is terminated in whole, the conditions specified by the Superintendent have been met or, if they have not been met or none have been specified, the prior consent of the Superintendent has been obtained.

          • Obligation satisfied

            (3.1) A transfer of the assets of a pension plan relating to the pension benefit credit of a person who cannot be located satisfies the obligation under the plan to provide

            • (a) a pension benefit in respect of that person;

            • (b) any other benefit or option described in paragraph 17(b) that relates to that pension benefit; and

            • (c) the portion of any surplus that is allocated to that person.

          • Claims

            (3.2) A claim is not to be made for a benefit, an option or a portion of any surplus referred to in subsection (3.1) from the designated entity. However, prescribed persons may make a claim for payment of a lump sum from the designated entity in respect of the assets that were transferred to it, but the designated entity is not liable to pay more than the amount of the total value of those assets.

          • Information

            (3.3) On the transfer of assets under subsection (2), the administrator of the pension plan or the trustee or custodian of the pension fund, as the case may be, must provide the designated entity with the prescribed information, to the extent that they have the information, relating to the pension benefit credit and the person who cannot be located.

          • Publication of information

            (3.4) The designated entity may publish prescribed information relating to the assets that are transferred to it under subsection (2).

      • (2) Subsection 10.3(5) of the Act is replaced by the following:

        • Limitation period or prescription

          (5) On the transfer of assets to Her Majesty in right of Canada, a claim to those assets may no longer be made.

        • Surplus

          (6) For the purposes of this section, the assets of a pension plan relating to the pension benefit credit of a person who cannot be located include the portion of any surplus that is allocated to that person.

  • — 2021, c. 23, s. 142

    • 142 Paragraphs 39(1)(c.1) to (c.4) of the Act are replaced by the following:

      • (c.1) respecting the transfer of assets under subsection 10.3(2), including the determination of the amount of assets to be transferred and the conditions under which those assets may be transferred;

      • (c.2) respecting the entity designated under subsection 10.3(1);

      • (c.3) respecting the holding by the entity designated under subsection 10.3(1) of assets relating to the pension benefit credit of any person who cannot be located, the making of claims for those assets and their disbursement;

      • (c.4) respecting the transfer of assets to Her Majesty in right of Canada under subsection 10.3(4);

  • — 2021, c. 23, s. 188

    • 188 Section 10 of the Pension Benefits Standards Act, 1985 is amended by adding the following after subsection (6):

      • Funding and governance policies

        (7) The administrator of a negotiated contribution plan must, before the plan is filed for registration, establish a funding policy and a governance policy that contain the prescribed information.

      • Filing not required

        (8) The administrator is not required, for the purposes of subsection (1), to file the funding policy and the governance policy established under subsection (7) or to file any amendment to those policies for the purposes of subsection 10.1(1).

      • Compliance of policies

        (9) While the plan remains in force, the administrator must ensure that the funding policy and the governance policy established under subsection (7) comply with this Act and the regulations.

      • Transitional provision

        (10) An administrator of a negotiated contribution plan that was registered or was filed for registration under this section before the day on which subsection (7) comes into force must, within one year after that day, establish the policies referred to in subsection (7).

  • — 2021, c. 23, s. 189

      • 189 (1) The portion of paragraph 10.1(2)(a) of the Act before subparagraph (i) is replaced by the following:

        • (a) with respect to a pension plan, it would have the effect of reducing

      • (2) Paragraphs 10.1(2)(b) to (d) of the Act are replaced by the following:

        • (b) with respect to a pension plan other than a negotiated contribution plan,

          • (i) the solvency ratio of the pension plan would fall below the prescribed solvency ratio level,

          • (ii) the amendment would reduce the solvency ratio of the pension plan and the solvency ratio would be below the prescribed solvency ratio level once the amendment is made, or

          • (iii) the solvency ratio of the pension plan is below the prescribed solvency ratio level and the amendment would increase pension benefits or pension benefit credits; or

        • (c) with respect to a negotiated contribution plan, the amendment does not meet the requirements of the regulations.

  • — 2021, c. 23, s. 190

    • 190 Subsection 39(1) of the Act is amended by adding the following after paragraph (h.2):

      • (h.3) respecting, for the purposes of paragraph 10.1(2)(c), amendments referred to in section 10.1 regarding negotiated contribution plans;

  • — 2022, c. 10, s. 186

    • 186 The Pension Benefits Standards Act, 1985 is amended by adding the following after section 9.16:

      Solvency Reserve Accounts

      • Establishment
        • 9.17 (1) Subject to the regulations, a defined benefit plan, other than a negotiated contribution plan, may provide for the establishment of a solvency reserve account in the plan’s pension fund.

        • Payments into account

          (2) Subject to the regulations, an employer may make payments into the solvency reserve account.

        • Restriction on transfers

          (3) The administrator shall not transfer into the solvency reserve account, nor permit to be transferred into that account, any moneys that are held in the pension fund outside of that account.

        • Withdrawals

          (4) Despite any terms of the pension plan or any document that creates or supports the plan or the pension fund, amounts may be withdrawn from the solvency reserve account in accordance with the regulations.

        • Non-application

          (5) Section 9.2 does not apply with respect to a withdrawal from the solvency reserve account.

  • — 2022, c. 10, s. 187

    • 187 Section 10 of the Act is amended by adding the following after subsection (6):

      • Governance policy

        (7) The administrator of a pension plan shall

        • (a) establish, before the plan is filed for registration, a governance policy that contains the prescribed information; and

        • (b) ensure that the policy complies with this Act and the regulations.

      • Filing not required

        (8) The administrator is not required to file the governance policy for the purposes of subsection (1) or to file any amendment to the policy for the purposes of subsection 10.1(1).

      • Transitional provision

        (9) An administrator of a pension plan that was registered or was filed for registration under this section before the day on which subsection (7) comes into force shall, within one year after that day, establish the governance policy for the plan.

  • — 2022, c. 10, s. 188(1)

      • 188 (1) Subsection 39(1) of the Act is amended by adding the following after paragraph (h):

        • (h.01) respecting solvency reserve accounts;

  • — 2022, c. 10, s. 189

    • 2021, c. 23
      • 189 (1) In this section, other Act means the Budget Implementation Act, 2021, No. 1.

      • (2) If section 188 of the other Act comes into force before section 187 of this Act, then

        • (a) that section 187 is replaced by the following:

          • 187 Section 10 of the Act is amended by adding the following after subsection (10):

            • Governance policy

              (11) The administrator of a pension plan shall

              • (a) establish, before the plan is filed for registration, a governance policy that contains the prescribed information; and

              • (b) ensure that the policy complies with this Act and the regulations.

            • Filing not required

              (12) The administrator is not required to file the governance policy for the purposes of subsection (1) or to file any amendment to the policy for the purposes of subsection 10.1(1).

            • Transitional provision — governance policy

              (13) An administrator of a pension plan, other than a negotiated contribution plan, that was registered or was filed for registration under this section before the day on which subsection (11) comes into force shall, within one year after that day, establish the governance policy for the plan.

        • (b) on the day on which that section 187 comes into force, subsections 10(7) to (10) of the Pension Benefits Standards Act, 1985 are replaced by the following:

          • Funding policy

            (7) The administrator of a negotiated contribution plan shall, before the plan is filed for registration, establish a funding policy that contains the prescribed information.

          • Filing not required

            (8) The administrator is not required to file the funding policy for the purposes of subsection (1) or to file any amendment to the policy for the purposes of subsection 10.1(1).

          • Compliance — funding policy

            (9) The administrator shall ensure that the funding policy complies with this Act and the regulations.

          • Transitional provision — negotiated contribution plans

            (10) An administrator of a negotiated contribution plan that was registered or was filed for registration under this section before the day on which subsection (7), as enacted by section 188 of the Budget Implementation Act, 2021, No. 1, comes into force shall, within one year after that day, establish the funding policy referred to in subsection (7) and the governance policy referred to in subsection (11).

      • (3) If section 187 of this Act comes into force before section 188 of the other Act, then that section 188 is replaced by the following:

        • 188 Section 10 of the Pension Benefits Standards Act, 1985 is amended by adding the following after subsection (9):

          • Funding policy

            (10) The administrator of a negotiated contribution plan shall

            • (a) establish, before the plan is filed for registration, a funding policy that contains the prescribed information; and

            • (b) ensure that the policy complies with this Act and the regulations.

          • Filing not required

            (11) The administrator is not required to file the funding policy for the purposes of subsection (1) or to file any amendment to the policy for the purposes of subsection 10.1(1).

          • Transitional provision — funding policy

            (12) An administrator of a negotiated contribution plan that was registered or was filed for registration under this section before the day on which subsection (10) comes into force shall establish the funding policy within one year after that day.

      • (4) If section 188 of the other Act comes into force on the same day as section 187 of this Act, then that section 187 is deemed to have come into force before that section 188 and subsection (3) applies as a consequence.

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