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Regulations are amended frequently.  Please check the list of Regulations by Act to see if there are any recent amendments to these regulations filed with our office that are not yet included in this consolidation.
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Pension Benefits Regulations

made under Section 139 of the

Pension Benefits Act

S.N.S. 2011, c. 41

O.I.C. 2015-133 (April 21, 2015, effective June 1, 2015), N.S. Reg. 200/2015

as amended to O.I.C. 2016-111 (May 3, 2016, effective May 4, 2016), N.S. Reg. 89/2016

 

Effective June 21, 2016, these regulations are amended by N.S. Reg. 125/2016.


Table of Contents

Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.
Click here to go to the text of the regulations.


Part 1: Interpretation and Application

Definitions and Calculations

Citation

Definitions

Calculation of actuarial gain or loss

Calculation of going concern assets

Calculation of solvency assets

Determination of solvency liabilities

Solvency liability adjustment

Determination of solvency deficiency

Solvency valuation

Calculation of transfer ratio

Book value substituted for market value in calculations

Jointly Sponsored Pension Plans

Additional criteria for jointly sponsored pension plans

Administrator’s statement about criteria for jointly sponsored pension plan

Specified Multi-Employer Pension Plans

Specified multi-employer pension plan class of plans

Eligibility criteria for specified multi-employer pension plans

Election to be specified multi-employer pension plan

Notice of election to members

Exemptions from the Act and Regulations

Exempted pension plans

Amendment to avoid revocation of registration under federal Income Tax Act

Pension plans maintained for employees of 2 or more employers

Nova Scotia Health Employees Pension Plan not a multi-employer pension plan

Significant shareholder plans

Ensuring no conflict of interest for multi-employer pension plan

Notices and summaries of contributions not required for certain multi-employer pension plans

Exemption from registration or audit under reciprocal agreement

Designated Jurisdictions

Designated jurisdictions prescribed


Part 2: Pension Plan Administration

Registration of Pension Plans and Amendments, and Filing of Agreements

Application for registration of pension plan

Application for registration of amendment to pension plan

Notice and explanation of pension plan amendment

Valuation report on amendment to pension plan

Amendments that are permitted only if cost of amendments paid into pension fund

Amendment to specified multi-employer pension plan requiring liquidation of going concern unfunded liability

Filing of reciprocal transfer agreements

Requirements for reciprocal transfer agreements

Advisory Committees

Advisory committee definition

Notice and information about establishing advisory committee

Voting on establishing advisory committee

Notice concerning result of vote to establish advisory committee

Nominating advisory committee representatives

Voting on advisory committee representatives

Notice of results of vote on advisory committee representatives

Term of office for advisory committee

Participating on advisory committee

Advisory committee procedure, governance and operations

Pension Fund Investment and Administration

Pension fund trustee

Investment of plan assets must be in accordance with regulations

Statement of investment policies and procedures

Record of investments

Designated jurisdictions—alternate corresponding provisions

Reporting to the Superintendent

Pension plan that provides only defined contribution benefits exempted

Initial valuation reports

Valuation reports at regular intervals

Valuation reports for multi-employer pension plans

Solvency concerns indicated in initial or review valuation report

Valuation report for plan that ceases to be designated plan or individual pension plan

Superintendent may require additional valuation report

Payment of contributions in accordance with additional valuation report

Time period for filing valuation reports

Cost certificates

Reports and certificates to be prepared by actuary, accountant or other authorized person

Use of actuarial methods and assumptions in preparing valuation and wind-up reports

Actuarial information summary to accompany valuation report

Copy of report to agent of administrator

Filing annual information return

Financial statements required to be filed for pension plans

Content and preparation of financial statements

Auditor’s report on financial statements

Auditor’s duty to report to administrator and Superintendent

Extension of time limit for filing of document

Information to Members and Others

Member and eligible member information

Information to be provided where plan permits optional contributions

Information to be provided before variable benefits account established

Annual statement to members

Annual statement to variable benefits participant

Statement on termination of employment or membership

Statement to variable benefits participant on transfer from variable benefits account

Death benefits statement

Statement after death of variable benefits participant

Notification of options to retiring member

Retirement statement to member

Information required to be available on request

Inspection of filed records of pension plan and pension fund

Records Respecting Pension Plans

Retention of records


Part 3: Funding of Pension Plans

Payment

Employer contributions and employee contributions set out in pension plan

Minimum contributions to pension plan

Sufficiency of contributions for a multi-employer pension plan

Sufficiency of contributions for Specified multi-employer pension plan

Contributions made to a jointly sponsored pension plan

Previous year credit balance used to reduce employer payments

Funding of escalated adjustments

When and how payment of contributions to be paid

Time limits for contributions under pension plans that are subject to collective agreements

Offset on conversion of plan to defined contribution benefit

Restrictions on reductions or suspensions of contributions

Use of actuarial gain

Administrator’s or agent’s notice that contributions not paid

Summary of contributions

Special Payments—General

Minimum amount of special payments

Interest payments required for employers who provide letter of credit

Alternative determination of special payments for jointly sponsored pension plan

Previous year credit balance

Adjustment of special payments for solvency excess

Special Payments—Temporary Exceptions

Temporary exceptions to minimum special payments—going concern unfunded liabilities

Temporary exceptions to minimum special payments—solvency deficiencies arising under former regulations

Definitions for election to extend amortization period—Sections 107 to 116

One-time election to extend amortization period

Filing election to extend amortization period

Information statements and notices of objection to be provided for proposed election

Last date for accepting notices of objection

Administrator to keep notices of objection

Prohibition against identifying persons who submit notices of objection

Successful election to extend amortization period

Certificate of consent to election

Notice of extension of amortization period to members

Progress report on special payments under extended amortization period

Letters of Credit

Prescribed requirements for letters of credit

Prescribed employers

Prescribed person or entity provided letter of credit

Determining solvency liabilities for subsection 77(3) of Act

Deadlines for providing letters of credit

When trustee must demand payment of amount of letter of credit

Notification by trustee if payment demanded under letter of credit

Notification by trustee if issuer of letter of credit fails to pay on demand


Part 4: Membership, Benefits and Interest

Pension Plan Membership

Prescribed classes of employees

Variations and Reductions for CPP, QPP and OAS

Variation of pension benefits for CPP or QPP entitlements

Calculating reduction when integrating retirement benefits with CPP, QPP and OAS

Reduction of bridging benefits

Application for withdrawal from pension plan in circumstances of shortened life expectancy

Deferred pension under pension plan insured by individual level-premium contracts issued before qualification date

Portion of benefits attributable to employment after January 1, 1988—final average or best average earnings plans

Death Benefit Entitlements

Exercising entitlement to pre-retirement death benefit under subsection 67(1) or (2) of Act

Exemption from reduction in pre-retirement death benefit entitlement

Offset in relation to pre-retirement death benefits

Commuted Value and Limits on Transfers

Commuted value of pension benefits and ancillary benefits for transfer

Calculating portion of commuted value available for transfer

Limits on transferring commuted value of pension benefits

Balance of transfer if less than 100% of commuted value transferred

Exemptions to limits on transfers

Benefits that result from voluntary contributions for past service

Reciprocal transfer agreement—50% rule

Entitlement to excess amount of commuted value of converted benefits

Additional prescribed ancillary benefits

Bridging benefits not taken into account

Phased Retirement Option

Definition of phased retirement option

Application for phased retirement option

Participation in phased retirement option

Variable Pension Benefits

Definitions for Sections 149 to 151

Pension plan provisions for variable pension benefits

Additional transfers to, and transfer from, variable benefits account

Maximum amount of variable pension benefits payable

Optional Benefits

Optional benefits prescribed

Interest

Definitions for crediting interest on contributions—Sections 154 to 158

When contribution interest accrues

Interest rates for defined contribution pension plan

Interest rates for defined benefit pension plan

Interest for pension plans that provide both defined contribution benefits and defined benefits

Interest rate on termination of employment or membership

Interest on lump sum payments

Interest on commuted value of former member’s deferred pension

Interest on ordered repayment of money or return of assets

Interest on commuted value on wind-up of plan

Withdrawing Surplus from Pension Plan

Notice of application to withdraw surplus from continuing pension plan

Application to withdraw surplus from continuing pension plan

Determining surplus for continuing pension plan

Notice of application to withdraw surplus from plan being wound up

Application to withdraw surplus from plan being wound up

Notice of intention to enter into agreement for payment of surplus to employer

Payments in accordance with election re surplus

Number of persons for purposes of agreement regarding payment of surplus to employer


Part 5: Wind-up of Pension Plans

Notice of intended wind-up

Statement of member entitlements on wind-up

Payments in accordance with election on wind-up

Prescribed circumstances for ordering wind-up

Wind-up report

Additional information with wind-up report

Minimum commuted value as of effective date of wind-up

Payments exempt under subsection 94(3) of Act

Payments out of pension plan on wind-up

Reduction in benefits on wind-up

Documents required to be filed within 6 months of wind-up

Notice of distribution of all assets of pension plan

Payment of outstanding amounts on wind-up

Payments on wind-up of pension plan other than jointly sponsored pension plan

Payments of any additional amounts on wind-up of jointly sponsored pension plan

Administrator’s responsibilities during wind-up if additional funding required

Definitions for election to exclude jointly sponsored pension plan from Section 97 of Act—Sections 188 to 194

Notice of vote

Vote on whether to make election to exclude

Last date for accepting election forms

Maintenance of election forms

Prohibition against identifying persons who submit election forms

Successful election to exclude

Notice of election


Part 6: Withdrawals and Transfers

Withdrawals and Transfers from Pension Plans

Direction to administrator to exercise entitlement under subsection 61(5) of Act

Direction to administrator to transfer into registered retirement savings arrangement

Transfers to a retirement savings arrangement under clause 61(1)(b) of Act

Transfers of excess amount into LIRA or LIF

Life Annuities, LIRAs and LIFs

Life annuities

Purchasing LIRAs

Contracts establishing and governing LIRAs

Administrator’s duties respecting transfers to LIRAs

Conditions for transferring assets from LIRAs

Amending LIRAs

Purchasing LIFs

Contracts establishing and governing LIFs

LIF filing requirements and Superintendent’s list

Administrator’s duties respecting transfers to LIFs

Conditions for transferring assets from LIFs

Amending LIFs

Withdrawals from LIRAs and LIFs

Definitions for circumstances of financial hardship—Sections 212 to 230

Prescribed circumstances of financial hardship

Application to Superintendent for consent to withdraw funds from LIRA or LIF in circumstances of financial hardship

Declaration about a spouse for withdrawal from LIRA or LIF

Mortgage default circumstance application information

Medical expenses circumstance application information

Rental default circumstance application information

Reduced income circumstance application information

Superintendent may require additional information

Superintendent entitled to rely on information

Stale-dated document not valid for application

Only 1 application in 12-month period

Calculating maximum consented amounts

Consented amount may be lower than requested

Subsequent applications prohibited if funds withdrawn

Superintendent’s decision

Notification of decision

Owner authorized to receive payment

Payment after consent

Stale-dated consent is nullity

Withdrawal from LIRA or LIF in circumstances of shortened life expectancy

Withdrawal from LIRA or LIF in circumstances of non-residency

Withdrawal of small amounts from LIRA or LIF at age 65


Part 7: Division of Pension Entitlement and Compliance with Attachment

Division of Pension Entitlement Between Spouses

Definitions for division of pension entitlement—Sections 235 to 252

Application of Sections 234 to 252

Matrimonial Property Act settlements

Separation date specified in court order or domestic contract

Information about pension plan, LIRA or LIF provided to spouse

Notice to member, former member or retired member of spouse’s request

Limited members

Information to be provided to limited member

Transfer of proportionate share out of pension plan

Limited member’s separate pension resulting from division of defined benefit

End of entitlement to limited member’s proportionate share

Death of member, former member or limited member entitled to defined benefit

Variation of payment to person with shortened life expectancy and payment of commuted value if benefit is small

Calculation of proportionate share of defined contribution benefit

Calculation of proportionate share of LIRA or LIF

Calculation of proportionate share of pension, defined benefit or pre-retirement death benefit in respect of defined benefit

Adjustment of a member’s or former member’s defined benefit

Notice to spouse if member’s, former member’s or retired member’s interest may be affected

Administrative fees incurred to satisfy entitlement of spouse

Complying with Attachment

Costs of complying with attachment under Maintenance Enforcement Act


Schedule 1: Permitted Investments

Definitions for Schedule 1

Indirect investment by administrator

Person in control

Subsidiary corporations

Affiliated entities

Substantial investments

Associated with person or pension plan

Application of this Schedule

Quantitative limits on lending or investing money of pension plan

Limits on investing—securities of a corporation

Limits on investing—securities of real estate corporation

Limits on investing—securities of resource corporation

Limits on investing—securities of investment corporation

Transactions for the purposes of Sections 15 and 16 of Schedule

Prohibited related party investments and transactions

Permitted related party investments and transactions


Schedule 2: Letters of Credit

Definitions for this Schedule

Letters of credit—criteria

Providing copy of trust agreement

Issuers of letters of credit

Matters that must be included in letter of credit

Matters that must be included in trust agreement


Schedule 3: Nova Scotia LIRA Addendum

Definitions for this Schedule

Transferring assets from LIRAs

Information to be provided by financial institution on transfers of assets of LIRAs

Information to be provided annually by financial institution

Death benefits

Waiver of entitlement to death benefits by spouse

Information to be provided by financial institution on death of owner


Schedule 4: Nova Scotia LIF Addendum

Definitions for this Schedule

Fiscal year of LIFs

Reference rate criteria

Periodic payments of income out of LIFs

Amount of income payments from LIFs

Minimum annual LIF withdrawal

Pro-rating amount of withdrawal if initial fiscal year less than 12 months

Maximum annual life income from LIF that does not provide for temporary income

Withdrawal of temporary income from LIFs

Maximum temporary income for fiscal year

Maximum life income withdrawal from LIFs

Maximum annual income payable if financial institution guarantees rate of return of LIFs

Income in excess of maximum

Information to be provided annually by financial institution

Transferring assets from LIFs

Information to be provided by financial institution on transfer of balance of LIFs

Information to be provided upon transfer of additional amounts to LIFs

Death benefits

Waiver of entitlement to death benefits by spouse

Information to be provided by financial institution on death of owner


Schedule 5: Life Income Fund—Factor F


Schedule 6: Life Income Fund—Temporary Income Factor D


Part 1: Interpretation and Application


Definitions and Calculations


Citation

1     These regulations may be cited as the Pension Benefits Regulations.


Definitions

2     In these regulations,

 

“Act” means the Pension Benefits Act;

 

“actuarial gain” means a gain as calculated under Section 3;

 

“actuarial loss” means an actuarial loss as calculated under Section 3;

 

“actuary” means a Fellow of the Canadian Institute of Actuaries;

 

“annual information return” means the annual information return required to be filed under subsection 31(1) of the Act;

 

“annual statement to members” means the written statement required to be sent under Section 40 of the Act and in accordance with Section 74;

 

“approved form” means a form that the Superintendent has approved and requires to be used under subsection 137(1) of the Act, which the Superintendent may make available through the Pension Regulation Division or on its website;

 

“book value” of an asset, means the cost of acquisition to the person acquiring the asset, including all direct costs associated with the acquisition;

 

Canadian Institute of Actuaries Standards of Practice” means the Canadian Institute of Actuaries Standards of Practice developed and adopted by the Actuarial Standards Board, as amended, and published by the Canadian Institute of Actuaries and made available to the public from the Canadian Institute of Actuaries’ offices or on their website;

 

“certified copy” of a document to be filed or submitted to the Superintendent under these regulations, means a copy that is certified to be a true copy of the original document by

 

                         (i)     the person required or permitted to file or submit it, or

 

                         (ii)    an authorized official of the person referred to in subclause (i);

 

“cost certificate” means a cost certificate prepared in accordance with Sections 60 and 61;

 

“CPP” means the Canada Pension Plan (Canada);

 

“deferred life annuity” means a life annuity under Section 199, that

 

                         (i)     commences payments no earlier than one year after its purchase,

 

                         (ii)    provides for equal periodic payments or periodic payments that have been varied by reference to

 

                                  (A)   the amount of any pension playable under the Old Age Security Act (Canada),

 

                                  (B)   the amount of any pension payable under either the Canada Pension Plan (Canada) or a provincial pension plan as defined in Section 3 of the Canada Pension Plan (Canada),

 

                                  (C)   the Consumer Price Index for Canada as published by Statistics Canada under the authority of the Statistics Act (Canada), or

 

                                  (D)   the value of the assets held in a segregated fund, and

 

                         (iii)   is issued by person authorized to carry on a life insurance business in Canada;

 

“designated plan” means a pension plan that is a designated plan for the purposes of the federal Income Tax Regulations;

 

“domestic contract” means a written agreement referred to in and for the purpose of Section 74 of the Act, or Section 14 of the Pooled Registration Pension Plans Act, that provides for a division between spouses of any pension benefit, deferred pension, pension, LIRA or LIF and includes a marriage contract as defined in the Matrimonial Property Act;

Definition of “domestic contract” amended: O.I.C. 2016-111, N.S. Reg. 89/2016.

 

“employee contributions” means all sums received by an employer from an employee or deducted from an employee’s pay as the employee’s contributions to a pension plan;

 

“employer contributions” means all contributions made by an employer, or by a person or entity required to make contributions on behalf of an employer, into a pension fund or to an insurance company, as the employer’s contributions to a pension plan;

 

“escalated adjustment” means an adjustment made to a deferred pension of a former member or to the pension of a retired member that

 

                         (i)     is not capable of being determined with certainty at the time the plan or a relevant amendment to the plan is submitted to the Superintendent for registration because the adjustment is related to the investment earnings of the pension fund or to future changes in a general wage or price index, or

 

                         (ii)    is an increase in the pension or deferred pension at a fixed annual percentage rate specified in the plan;

 

“federal Income Tax Act” means the Income Tax Act (Canada) and, unless specified otherwise, includes the regulations made under that Act;

 

“federal Income Tax Regulations” means the Income Tax Act Regulations (Canada) made under the federal Income Tax Act;

 

“financial institution” means any of the following:

 

                         (i)     a bank,

 

                         (ii)    a body corporate to which the Trust and Loan Companies Act applies,

 

                         (iii)   a cooperative credit society to which the Co-operative Associations Act applies,

 

                         (iv)   an insurance company to which the Insurance Act applies,

 

                         (v)    a trust, loan or insurance corporation incorporated by or under an Act of the legislature of a province,

 

                         (vi)   a cooperative credit society incorporated and regulated by or under an Act of the legislature of a province,

 

                         (vii)  an entity that is incorporated or formed by or under an Act of Parliament or of the legislature of a province and that is primarily engaged in dealing in securities, including portfolio management and investment counselling, or

 

                         (viii) a foreign institution;

 

“fiscal year” of a pension plan means a period of no longer than 12 months and, unless otherwise stated in documents that create and support the plan, is deemed to be the period from January 1 to December 31, inclusive;

 

“foreign institution” means, for the purposes of the definition of “financial institution”, an entity that meets all of the following criteria:

 

                         (i)     it is incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province,

 

                         (ii)    it is engaged in any of the following:

 

                                  (A)   the business of banking,

 

                                  (B)   the trust, loan or insurance business,

 

                                  (C)   the business of a cooperative credit society,

 

                                  (D)   the business of dealing in securities,

 

                                  (E)   the business of providing financial services as its primary business;

 

“former regulations” means the Pension Benefits Regulations, N.S. Reg. 164/2002, made under the former Act;

 

“going concern assets” means the value of the assets and special payments in respect of a pension plan, as calculated under Section 4;

 

“going concern liabilities” means the present value of the accrued benefits of a pension plan determined on the basis of a going concern valuation;

 

“going concern unfunded liability” means an amount by which the sum of a pension plan’s going concern liabilities and its previous year credit balance exceeds its going concern assets;

 

“going concern valuation” means a valuation of the assets and liabilities of a pension plan using actuarial methods and assumptions that are consistent with accepted actuarial practice for the valuation of a continuing pension plan;

 

“going concern valuation interest rate” means, unless otherwise stated in these regulations, the interest rate used to value the liabilities of the pension plan in a going concern valuation;

 

“government” means Her Majesty in right of Nova Scotia, an agent of Her Majesty or a municipality;

 

Handbook of the Canadian Institute of Chartered Accountants” means the Handbook of the Canadian Institute of Chartered Accountants, as amended, published by the Canadian Institute of Chartered Accountants and made available to the public from the Canadian Institute of Chartered Accountants’ offices or on their website;

 

“immediate life annuity” means a life annuity under Section 199 that commences payments within 1 year of its purchase and otherwise meets the requirements of subclauses (ii) and (iii) of the definition of “deferred life annuity”;

 

“individual pension plan” means a pension plan that is an individual pension plan for the purposes of the federal Income Tax Regulations;

 

“insured pension plan” means a pension plan in which all benefits are paid by means of an annuity or insurance contract issued by a person authorized to carry on a life insurance business in Canada and under which the person is obligated to pay all the benefits set out in the plan;

 

“letter of credit” means a letter of credit provided by an employer instead of making payments into a pension fund with respect to a solvency deficiency, in accordance with Section 77 of the Act, Sections 117 to 124 and Schedule 2: Letters of Credit;

 

“LIF” or “life income fund” means a registered retirement income fund that is a registered retirement savings arrangement as defined in clause 2(as) of the Act and meets the requirements in Sections 205 to 210 and Schedule 4: Nova Scotia LIF Addendum;

 

“life annuity” means a deferred life annuity or an immediate life annuity;

 

“LIRA” or “locked-in retirement account” means a registered retirement savings plan that is a registered retirement savings arrangement as defined in clause 2(as) of the Act and meets the requirements in Sections 200 to 204 and Schedule 3: Nova Scotia LIRA Addendum, and includes a registered retirement savings plan established under a contract made before January 1, 2003, for the purposes of a transfer under the former Act;

 

“market value” means, in relation to an asset, the price that would be obtained in the purchase or sale of the asset in an open market under conditions requisite to a fair transaction between parties who are at arm’s length and acting prudently, knowledgeably and willingly;

 

“maximum funding valuation” means a maximum funding valuation as described in the federal Income Tax Regulations for the purpose of those regulations and the federal Income Tax Act;

 

“municipality” means a municipality as defined in the Municipal Government Act;

 

“normal cost” means , in relation to a pension plan, the cost of pension benefits and ancillary benefits allocated to the plan’s fiscal year, determined on the basis of a going concern valuation;

 

“OAS” means the Old Age Security Act (Canada);

 

“owner” means

 

                         (i)     in relation to a LIRA, a person who is listed as eligible to purchase a LIRA in subsection 200(2), and who has purchased a LIRA,

 

                         (ii)    in relation to a LIF, a person who is listed as eligible to purchase a LIF in subsection 205(2) and who has purchased a LIF,

 

                         (iii)   in relation to a life annuity, any of the following:

 

                                  (A)   a former member, acting in accordance with subsection [clause] 61(1)(c) of the Act, who has purchased a life annuity,

 

                                  (B)   a former member, acting in accordance with subsection [clause] 61(1)(b) of the Act and clause 2(1)(d) of Schedule 3: Nova Scotia LIRA Addendum, who has purchased a life annuity,

 

                                  (C)   a former member, acting in accordance with subsection [clause] 61(1)(b) of the Act and clause 15(1)(b) of Schedule 4: Nova Scotia LIF Addendum, who has purchased an immediate life annuity;

 

“pensionable earnings” means the earnings on which contributions to a pension plan are based in accordance with the documents that create and support the plan;

 

“physician” means a physician who is licensed to practise medicine in a jurisdiction in Canada;

 

Pooled Registered Pension Plans Regulations” means the Pooled Registered Pension Plans Regulations made under the Pooled Registered Pension Plans Act;

Definition of “Pooled Registered Pension Plans Regulations” added: O.I.C. 2016-111, N.S. Reg. 89/2016.

 

“prescribed fee” means the applicable fee prescribed by the Pension Benefits Act Fees Regulations made by the Minister under Section 136 of the Act;

 

“pre-retirement death benefit” means a pension entitlement of a spouse or other beneficiary or personal representative of a member, former member or retired member in accordance with Section 67 of the Act;

 

“previous year credit balance”, in relation to a valuation report or cost certificate, means the previous year credit balance determined in accordance with Section 102;

 

“public accountant” means a public accountant licensed under the Public Accountants Act;

 

“QPP” means An Act Respecting the Quebec Pension Plan (Quebec);

 

“retirement savings arrangement” is a “prescribed retirement savings arrangement” as that term is used in the Act, and means a

 

                         (i)     LIRA, or

 

                         (ii)    LIF;

 

“significant shareholder” of an employer who contributes to a pension plan means an individual who, alone or in combination with a parent, spouse or child, owns or has a beneficial interest, directly or indirectly, in shares that represent 10% or more of the voting rights attached to the shares of the employer;

 

“solvency asset adjustment” means the solvency asset adjustment calculated under Section 6;

 

“solvency assets” means solvency assets calculated under Section 5;

 

“solvency deficiency” means a solvency deficiency determined in accordance with Section 9;

 

“solvency liabilities” means solvency liabilities determined in accordance with Section 7;

 

“solvency liability adjustment” means the amount specified by Section 8;

 

“solvency valuation” means a valuation of the solvency assets and solvency liabilities of a pension plan in accordance with Section 10, using actuarial methods and assumptions that are consistent with accepted actuarial practice for the valuation of a pension plan, determined on the basis that the plan is being wound up and otherwise meeting the requirements of these regulations;

 

“solvency valuation interest rate” means, unless otherwise stated in these regulations, the interest rate used to calculate the solvency liabilities in the valuation report;

 

“special allowance” means a bridging benefit that is adjusted according to any income the retired member earns from employment with the employer after termination;

 

“special payment” means a payment, or 1 of a series of payments, made to liquidate a going concern unfunded liability or a solvency deficiency in relation to the pension benefits under a pension plan, and determined in accordance with

 

                         (i)     Section 99 or 101, for the minimum amount of payments required in relation to a going concern unfunded liability or a solvency deficiency,

 

                         (ii)    Section 104, for payments made under temporary exceptions to the minimum amount of payments required in relation to a going concern unfunded liability,

 

                         (iii)   Section 105, for payments made under temporary exceptions to the minimum amount of payments required in relation to a solvency deficiency,

 

                         (iv)   Section 107, for payments made under an elected extended amortization period in relation to a solvency deficiency;

 

“specified multi-employer pension plan” means a multi-employer pension plan as described in Section 15;

 

“transfer deficiency” means the amount by which the commuted value of a benefit determined in accordance with subsection 135(1) exceeds the transfer value of that benefit determined in accordance with Section 136;

 

“transfer ratio” means the transfer ratio calculated under Section 11;

 

“valuation date” means the date as of which assets and liabilities are valued for the purposes of the going concern valuation and solvency valuation in a valuation report or cost certificate;

 

“valuation report” means a report in relation to a pension plan that is filed or submitted to the Superintendent in accordance with subsection 31(2) of the Act, based on a going concern valuation and a solvency valuation under

 

                         (i)     Section 52, for the initial valuation report,

 

                         (ii)    Section 53, for a valuation report other than the initial valuation report,

 

                         (iii)   Section 57 for an additional valuation report,

 

                         (iv)   Section 31, for a report concerning an amendment to the plan;

 

“wind-up report” means the report required to be filed by an administrator on wind-up of a pension plan under Section 94 of the Act.


Calculation of actuarial gain or loss

3     (1)    An actuarial gain or actuarial loss in relation to a going concern valuation is calculated as the sum of all of the following as of the valuation date:

 

                (a)    any gain to the pension plan since the valuation date of the immediately previous going concern valuation that results from the difference between actual experience and the experience expected by the actuarial assumptions that the previous valuation was based on;

 

                (b)    the amount by which the going concern liabilities have decreased as a result of any amendments to the plan since the previous valuation;

 

                (c)    the amount by which the going concern liabilities have decreased or the going concern assets have increased since the previous valuation as a result of a change in actuarial methods or assumptions that the current going concern valuation is based on.

 

       (2)    Despite subsection (1), the amounts in clauses (1)(a), (b) or (c) must be counted as a negative in the calculation of the sum under that subsection if any of the following occur during the period since the previous valuation:

 

                (a)    the experience of the pension plan results in a loss rather than a gain;

 

                (b)    an amendment to the pension plan increases the going concern liabilities;

 

                (c)    a change in actuarial methods or assumptions results in an increase in going concern liabilities or a decrease in going concern assets.

 

       (3)    If the sum calculated under this Section results in

 

                (a)    a positive number, then the result is an actuarial gain;

 

                (b)    a negative number, then the result is an actuarial loss.


Calculation of going concern assets

4     Going concern assets are calculated as the sum of all of the following as of the valuation date:

 

                (a)    the value of the assets of the pension plan determined on the basis of a going concern valuation, including accrued and receivable income but excluding the amount of any letter of credit held in trust for the pension plan;

 

                (b)    the present value of any special payments in respect of a going concern unfunded liability, determined on the basis of a going concern valuation, that have been disclosed in previously filed valuation reports.


Calculation of solvency assets

5     Solvency assets are calculated as the sum of all of the following as of the valuation date:

 

                (a)    subject to Section 12, the market value of investments held by a pension plan;

 

                (b)    any cash balances of a pension plan and accrued or receivable income items of the plan, excluding the amount of any letter of credit held in trust for the plan.


Calculation of solvency asset adjustment

6     (1)    Subject to subsection (2), the solvency asset adjustment in relation to a valuation report for a pension plan that provides defined benefits is the sum of all of the following:

 

                (a)    the amount, positive or negative, by which the value of the solvency assets is adjusted by applying an averaging method that stabilizes short-term fluctuations in the market value of the plan assets, calculated over a period of no longer than 5 years;

 

                (b)    the present value of any of the following special payments, other than special payments that are required to liquidate any solvency deficiency determined in a valuation report:

 

                         (i)     special payments referred to in clause 99(1)(a) or (b) that are scheduled for payment within the period beginning on the valuation date of the valuation report and ending 5 years after a date that is no later than 12 months after the valuation date,

 

                         (ii)    special payments referred to in clause 104(2)(a) or (b) that are scheduled for payment within the period of 5 years that begins on the valuation date of the valuation report,

 

                         (iii)   special payments referred to in Section 105 that are scheduled for payment within the period of 10 years that begins on the valuation date of the first valuation report prepared between December 30, 2008 and January 2, 2011,

 

                         (iv)   special payments referred to in subsection 107(3) that are scheduled for payment within the period that begins on the valuation date of the valuation report and continues until the end of a 15-year period that begins on a date that is no later than 12 months after the valuation date;

 

                (c)    the amount that is the lesser of the following:

 

                         (i)     the total amount of all letters of credit held in trust for the pension fund as of the valuation date, excluding the value of any special payments to which the letter of credit relates that are due after the valuation date,

 

                         (ii)    15% of the amount of the solvency liabilities, determined in accordance with Section 120.

 

       (2)    The present value of special payments, required contributions and the normal cost used to calculate the solvency asset adjustment must be calculated as of the valuation date and must be calculated using the following:

 

                (a)    if the solvency liability adjustment is zero, the solvency valuation interest rates;

 

                (b)    if the solvency liability adjustment is not zero, the average of the solvency valuation interest rates used in the report to calculate the solvency liability adjustment.


Determination of solvency liabilities

7     (1)    In this Section, “prospective benefit increase” means an increase to a pension benefit or ancillary benefit that is set out in a pension plan or agreed to by the parties to a collective agreement but not yet in effect.

 

       (2)    The solvency liabilities of a pension plan, in respect of a valuation report, are the liabilities of the plan determined as if the plan had been wound up on the valuation date, but do not include the following liabilities:

 

                (a)    any escalated adjustment in relation to the pension and pension benefits accrued before the date these regulations come into force;

 

                (b)    entitlements of a member on wind-up of the plan under Section 97 of the Act;

 

                (c)    special allowances;

 

                (d)    prospective benefit increases.

 

       (3)    A solvency liability arises on the valuation date of the valuation report in which it is determined.


Solvency liability adjustment

8     (1)    Except as provided in subsection (2), the solvency liability adjustment is zero.

 

       (2)    If a solvency valuation includes a calculation of a solvency asset adjustment, and the solvency asset adjustment includes an amount described in clause 6(1)(a), the solvency liability adjustment is the amount, positive or negative, by which the value of the solvency liabilities is adjusted by using a solvency valuation interest rate that is the average of market interest rates calculated over the same period of time as the solvency valuation interest rate used to determine the amount described in clause 6(1)(a).


Determination of solvency deficiency

9     The solvency deficiency, as of a particular valuation date, of a pension plan that provides defined benefits is determined by the following formula:

 

solvency deficiency = A-B

 

in which

 

       A =   the sum of the solvency liabilities, the solvency liability adjustment and the previous year credit balance as of the valuation date of the valuation report,

 

       B =   the sum of the solvency assets and the solvency asset adjustment as of the valuation date of the valuation report.


Solvency valuation

10   (1)    A solvency valuation required for a valuation report must determine the existence of a solvency deficiency by determining the solvency liabilities and solvency assets of the pension plan.

 

       (2)    The solvency liabilities for any of the following pension plans must be determined on the basis of the benefits structure set out in the plan at the valuation date without taking into account any possible reduction of the benefits:

 

                (a)    a multi-employer pension plan established under 1 or more collective agreements or a trust agreement; or

 

                (b)    a pension plan that provides defined benefits under which the employer contributions are limited to a fixed amount set out in a collective agreement.


Calculation of transfer ratio

11   (1)    The transfer ratio determined in a valuation report for a pension plan must be calculated in accordance with the following formula:

 

transfer ratio = A ÷ B

 

in which

 

                A =  the amount by which the solvency assets exceed the lesser of

 

                        (i)     the previous year credit balance, and

 

                        (ii)    the sum of all of the following:

 

                                  (A)   the amount by which the sum of the normal cost determined under clause 53(2)(a) and the estimates of the normal cost determined in the report in accordance with clause 52(1)(c) and as required by clause 53(2)(b) for the periods covered by the report exceeds the sum of the estimates of any employee contributions determined in the report in accordance with clause 52(1)(d) and as required by clause 53(2)(b) for the same periods,

 

                                  (B)   the sum of the special payments required to be made under these regulations during the periods in respect of which the estimates under paragraph (A) are given

 

                B =  the sum of all of the following:

 

                         (i)     the solvency liabilities,

 

                         (ii)    the liabilities for benefits that were excluded in calculating the solvency liabilities.

 

       (2)    A transfer ratio arises on the valuation date of the report in which it is determined.


Book value substituted for market value in calculations

12   In calculating solvency assets or a transfer ratio, if there is no market value for an investment of a pension plan and the investment is issued or guaranteed by a government, the book value of the investment may be used instead of the market value.


Jointly Sponsored Pension Plans


Additional criteria for jointly sponsored pension plans

13   (1)    In addition to the criteria specified in subclauses 2(y)(i) to (iii) of the Act, a pension plan that, as evidenced by the documents that create and support the plan, satisfies all the following criteria is a jointly sponsored pension plan:

 

                (a)    the total amount of contributions payable by members under the plan for a year, excluding any additional voluntary contributions and voluntary contributions for past service, does not exceed the total amount of employer contributions for the year;

 

                (b)    the plan does not permit a reduction in the amount of, or the commuted value of a pension benefit, deferred pension, pension or an ancillary benefit, in the circumstances described for an amendment of a plan in subsection 24(4)(a) or (b) of the Act, except in the circumstances of a wind-up;

 

                (c)    the employers, or any persons or entities who make contributions on behalf of the employers or represent the employers, and the members of the plan, or any representatives of the members, are jointly responsible for making all decisions about the following:

 

                         (i)     the terms and conditions of the plan,

 

                         (ii)    any amendments to the plan,

 

                         (iii)   the appointment of the administrator,

 

                         (iv)   the appointment or selection of persons as members of any body or entity that is the administrator, other than the employer, an insurance company or a person appointed by the Superintendent;

 

                (d)    each member’s pension benefits, other than ancillary benefits, and contributions are directly related to the member’s pensionable earnings.

 

       (2)    The documents that create and support a jointly sponsored pension plan must set out the methods by which the decisions referred to in clause (1)(c) are to be made.

 

       (3)    A pension plan ceases to be a jointly sponsored pension plan as of the date that the plan is amended so that it no longer meets the criteria for a jointly sponsored pension plan.


Administrator’s statement about criteria for jointly sponsored pension plan

14   (1)    The administrator of a jointly sponsored pension plan must file a statement in accordance with the deadline in subsection (2) that

 

                (a)    describes how the plan satisfies the criteria for a jointly sponsored pension plan, and certifies that the plan satisfies the criteria; and

 

                (b)    certifies the date that the plan became a jointly sponsored pension plan.

 

       (2)    A statement required by subsection (1) must be filed no later than the date that the initial valuation report for the plan is filed or submitted to the Superintendent

 

                (a)    after the pension plan becomes a jointly sponsored pension plan; or

 

                (b)    after the date these regulations come into force, if the pension plan is a jointly sponsored pension plan on the date these regulations come into force.

 

       (3)    The statement required by subsection (1) must be provided to all of the following persons:

 

                (a)    a participating employer, or any person or entity who makes employer contributions;

 

                (b)    the members or, if the members are represented by a bargaining agent, the members’ bargaining agent;

 

                (c)    the former members;

 

                (d)    the retired members.

 

       (4)    The statement required by subsection (1) and all of the following information must be provided by an administrator to the persons referred to in subsection (3), at the same time the statement referred to in subsection (1) is filed:

 

                (a)    the name of the pension plan and its Provincial registration number;

 

                (b)    the administrator’s name and contact information.

 

       (5)    No later than 60 days after filing the statement required by subsection (1), an administrator must file another statement confirming that the statement and all the information required by subsection (4) was provided to persons as required by this Section.

 

       (6)    The statement required by subsection (1) and all of the information in subsection (4) must also be provided by an administrator to each person who will be eligible or is required to become a member of the jointly sponsored pension plan after the statement is filed and before the plan ceases to be a jointly sponsored pension plan, and the statement and information must be included as part of the information required to be given to the person under clause 38(1)(c) of the Act.


Specified Multi-Employer Pension Plans


Specified multi-employer pension plan class of plans

15   (1)    A multi-employer pension plan belongs to the class of specified multi-employer pension plans if all of the following conditions are met:

 

                (a)    the administrator files an election in accordance with Section 17, declaring the plan to be a specified multi-employer pension plan;

 

                (b)    the plan meets all the eligibility criteria described in Section 16.

 

       (2)    A multi-employer pension plan ceases to be a specified multi-employer pension plan on the earliest of the following dates:

 

                (a)    the date that the first valuation report for the plan is filed under Section 31 or 53 for a valuation date that is after the administrator rescinds the election in accordance with subsection 17(3);

 

                (b)    the date that the plan is amended so that the plan no longer meets the continuing eligibility criteria in clauses 16(3)(d), (e), (f) or (g).


Eligibility criteria for specified multi-employer pension plans

16   (1)    In this Section, “pre-election year” means the fiscal year of a pension plan immediately before the year in which an election is filed under Section 17 declaring the plan to be specified multi-employer pension plan.

 

       (2)    For the purposes of this Section, a group of employers who are affiliates of each other within the meaning of the Companies Act is deemed to be 1 employer.

 

       (3)    A multi-employer pension plan must meet all of the following eligibility criteria to become a specified multi-employer pension plan:

 

                (a)    at the end of the pre-election year, no more than 95% of the members of the plan were employed by 1 employer;

 

                (b)    during the pre-election year,

 

                         (i)     at least 15 employers made contributions to the plan, or

 

                         (ii)     at least 10% of the members of the plan were employed by 2 or more employers;

 

                (c)    all or substantially all of the employers who make contributions to the plan are persons who are not exempt from tax under Part I of the Income Tax Act (Canada);

 

                (d)    all employers make contributions to the plan under 1 or more collective agreements;

 

                (e)    the employer contributions to the plan are limited to a fixed amount set out in 1 or more collective agreements;

 

                (f)    the administrator is authorized by the plan to determine the benefits that are to be provided under the plan, whether or not a collective agreement imposes restrictions on the exercise of that authority;

 

                (g)    for a multi-employer pension plan established pursuant to a collective agreement or a trust agreement as referred to in clause 24(4)(a) of the Act, nothing in the documents that create and support the plan prevents the administrator from reducing the amount of or the commuted value of a pension benefit, including a pension and a deferred pension, or an ancillary benefit in the circumstances described in clause 24(4)(a) of the Act.


Election to be specified multi-employer pension plan

17   (1)    The administrator of a multi-employer pension plan that satisfies the criteria described in Section 16 may file an election in writing with the Superintendent declaring the plan to be a specified multi-employer pension plan.

 

       (2)    Only 1 election may be made in respect of a pension plan.

 

       (3)    The administrator may rescind the election by filing written notice of the rescission.

 

       (4)    A rescission cannot be withdrawn once it is filed.


Notice of election to members

18   (1)    No later than 60 days after filing a specified multi-employer pension plan’s first valuation report under Section 31, 52 or 53, the administrator must prepare a written notice that an election has been made under Section 17 declaring the plan to be a specified multi-employer pension plan and give a copy of the notice to all of the following:

 

                (a)    the Superintendent;

 

                (b)    each member, former member and retired member of the plan;

 

                (c)    each employer who makes contributions under the specified multi-employer pension plan;

 

                (d)    each bargaining agent who represents members of the plan.

 

       (2)    The written notice required by subsection (1) must contain all of the following information:

 

                (a)    the name of the pension plan and its Provincial registration number;

 

                (b)    the administrator’s name and contact information;

 

                (c)    effective on the valuation date, the pension plan’s transfer ratio or, if the plan is amended to increase pension benefits, including pensions and deferred pensions, or ancillary benefits, the plan’s transfer ratio before and after the amendment;

 

                (d)    an explanation of how the security of the pension plan’s pension benefits, including pensions and deferred pensions, and ancillary benefits might be affected as a result of the election.

 

       (3)    An administrator must also give a copy of the written notice required by subsection (1) to each person who will be eligible or is required to become a member of the specified multi-employer pension plan after the election is made but before the plan ceases to be a specified multi-employer pension plan, and the notice must be included as part of the information required to be given to the person under clause 38(1)(c) of the Act.


Exemptions from the Act and Regulations


Exempted pension plans

19   (1)    Pension plans that are established by or under the following legislation are exempt from the application of the Act and the regulations:

 

                (a)    the Public Service Superannuation Act;

 

                (b)    the Teachers’ Pension Act;

 

                (c)    the Members’ Retiring Allowances Act;

 

                (d)    the Provincial Court Act.

 

       (2)    The following pension plans are exempt from the application of the Act and the regulations:

 

                (a)    the Pension Plan for Salaried Employees of Sydney Steel Corporation;

 

                (b)    the Sydney Steel Corporation Non-Contributory Union Pension Plan 1968 (for Members of Locals 1064, 6537 and 6516 of the United Steelworkers of America and Local 2 of The Bricklayers and Allied Craftworkers);

 

                (c)    the Sydney Steel Corporation Non-Contributory Union Pension Plan 1974 for Members of Local 1675 of the Canadian Union of Public Employees;

 

                (d)    a retirement compensation arrangement as defined in subsection 248(1) of the federal Income Tax Act;

 

                (e)    a plan that provides only benefits that exceed the maximum benefit limits applicable to a pension plan that is registered under the federal Income Tax Act;

 

                (f)    a plan that permits only contributions that are in excess of the maximum contribution limit applicable to a pension plan that is registered under the federal Income Tax Act.

 

       (3)    In this subsections (4) and (5), “NewPage pension plans” means all of the following pension plans:

 

                (a)    Pension Plan for Mill Employees of NewPage Port Hawkesbury Corp.– Registration No.: 0522722;

 

                (b)    Pension Plan for the Office and Clerical Hourly Employees of NewPage Port Hawkesbury Corp.–Registration No.: 0401059;

 

                (c)    Pension Plan for the Woodland Hourly Employees of NewPage Port Hawkesbury Corp.–Registration No.: 0379008;

 

                (d)    Pension Plan for the Salaried Non-Union Employees of NewPage Port Hawkesbury Corp. and Associated and Affiliated Companies–Registration No.: 0522714.

 

       (4)    The circumstances in which the administrator for the NewPage pension plans was appointed, on October 5, 2011, is a prescribed circumstance for the purpose of subsection 18(6) of the Act.

 

       (5)    The NewPage pension plans are exempt from the application of Section 108 of the Act and, for greater certainty, each of the following entities is deemed not to be a successor employer of any member of 1 of the NewPage pension plans who is or becomes their employee upon the sale, assignment or disposition of all or part of the business or all or part of the assets of NewPage Port Hawkesbury Corp. to the entity:

 

                (a)    Pacific West Commercial Corporation;

 

                (b)    any designate, assignee or subsidiary of Pacific West Commercial Corporation;

 

                (c)    the limited partnership that ultimately acquires the business and assets of NewPage Port Hawkesbury Corp.;

 

                (d)    the general partner of the limited partnership referred to in clause (c).

 

       (6)    Except to the extent of any payments accrued due and payable in accordance with the former regulations, special payments required to liquidate a solvency deficiency are not required to be made for any of the following:

 

                (a)    a pension plan listed in subsection 85(2);

 

                (b)    the pension plan specified in subsection 85(4), for the period from December 21, 2012 to December 31, 2017, inclusive.


Amendment to avoid revocation of registration under federal Income Tax Act

20   (1)    Subject to subsection (2), subsection 24(1) of the Act respecting void amendments does not apply to an amendment to a pension plan that is required for the plan to avoid revocation of its registration under the federal Income Tax Act.

 

       (2)    For the exemption in subsection (1) to apply, at least 60 days before an amendment is effective, the administrator must give the Superintendent written notice of the amendment together with evidence satisfactory to the Superintendent that the amendment is required in order to avoid revocation of the plan’s registration under the federal Income Tax Act.

 

       (3)    Subject to subsection (4), subsection 87(1) of the Act respecting the prohibition on refunds of contributions does not apply to a refund of contributions to a member, former member or retired member if the refund is required in order to avoid revocation of the plan’s registration under the federal Income Tax Act.

 

       (4)    For the exemption in subsection (3) to apply, at least 60 days before a refund is made, the administrator must give the Superintendent written notice of the refund together with evidence satisfactory to the Superintendent that the refund is required in order to avoid revocation of the plan’s registration under the federal Income Tax Act.

 

       (5)    Subject to subsection (6), subsection 103(1) of the Act respecting the consent of the Superintendent to pay surplus to an employer does not apply to a payment to an employer of money that is surplus if the payment is required in order to avoid revocation of the plan’s registration under the federal Income Tax Act.

 

       (6)    For the exemption in subsection (5) to apply, at least 60 days before the payment is made, the administrator must give the Superintendent written notice of the payment together with evidence satisfactory to the Superintendent that the payment is required in order to avoid revocation of the plan’s registration under the federal Income Tax Act.


Pension plans maintained for employees of 2 or more employers

21   (1)    A pension plan established before the date these regulations come into force, that is maintained for the employees of 2 or more employers, and that is neither a multi-employer pension plan nor a pension plan in which all employers are affiliates of each other, is exempt from Section 18 of the Act if the plan provides that the administrative duties of the employer and the administrator as specified in the Act are totally assumed by a financial institution.

 

       (2)    A pension plan referred to in subsection (1) may permit different employers to establish different prescribed classes of employees for the purposes of membership in the plan, under Section 45 of the Act.


Nova Scotia Health Employees Pension Plan not a multi-employer pension plan

22   In accordance with subclause 2(ab)(ii) of the Act, the Nova Scotia Health Employees Pension Plan is not a multi-employer pension plan.


Significant shareholder plans

23   Subsection 24(1) of the Act respecting void amendments does not apply in respect of an amendment that affects the pension benefits or ancillary benefits of a member of a defined benefit pension plan who is a significant shareholder, if the employer providing the plan and the significant shareholder consent in writing to the non-application of Section 24 of the Act and file the consent.


Ensuring no conflict of interest for multi-employer pension plan

24   (1)    The requirement in subsection 33(3) of the Act for an administrator to ensure that there is no conflict of interest does not apply when an administrator of a multi-employer pension plan enters into a transaction with a trade union, council of trade unions, employer, employers’ association or an employee benefit trust fund in which a member of the board of trustees or committee holds any office or position, if the transaction meets all of the following conditions:

 

                (a)    it is only for purchase or lease of office space, for legal, accounting or other services, materials or equipment necessary for the administration and operation of the plan, and the compensation paid is reasonable in the circumstances;

 

                (b)    it is permitted under the documents that create and support the plan or any amendments to those documents.

 

       (2)    The requirement in subsection 33(3) of the Act for an administrator to ensure that there is no conflict of interest does not apply when an administrator of a multi-employer pension plan or a member of a pension committee or board that administers a multi-employer pension plan enters into a transaction, other than a transaction described in subsection (1), related to the administration of the plan or pension fund that meets all of the following conditions:

 

                (a)    it is in the interest of the members, former members and retired members;

 

                (b)    it is protective of the rights of the members, former members and retired members;

 

                (c)    it is permitted under the documents that create and support the plan;

 

                (d)    it is disclosed to the members, former members and retired members before it is entered into;

 

                (e)    it confers no direct or indirect personal benefit on the administrator or member of the pension committee or board of trustees.


Notices and summaries of contributions not required for certain multi-employer pension plans

25   The following provisions of the Act do not apply to a multi-employer pension plan established under a collective agreement, a trust agreement, a statute or a municipal bylaw:

 

                (a)    subsection 78(2) of the Act, respecting notice to the Superintendent that contributions have not been paid when due;

 

                (b)    Section 79 of the Act, respecting the provision to the prescribed persons of a summary of contributions in accordance with Section 98.


Exemption from registration or audit under reciprocal agreement

26   (1)    If a reciprocal agreement under Section 8 of the Act between the Minister and authorized representatives of 1 or more designated jurisdictions provides that a pension plan with the majority of members employed in a designated jurisdiction is exempt from registration or audit under the Act, then a pension plan that meets those requirements is exempt from registration or audit under the Act.

 

       (2)    For the purpose of determining where the majority of the members in subsection (1) is employed, only those members who are employed in the Province or in any of the designated jurisdictions are counted.


Designated Jurisdictions


Designated jurisdictions prescribed

27   (1)    For the purposes of the definition of “designated jurisdiction” in Section 2 of the Act, each of the following jurisdictions in Canada is prescribed as a designated jurisdiction in which there is in force legislation substantially similar to the Act:

 

                (a)    Canada, subject to subsection (2);

 

                (b)    the Province of Alberta;

 

                (c)    the Province of Quebec;

 

                (d)    the Northwest Territories;

 

                (e)    the Province of Saskatchewan;

 

                (f)    the Province of Manitoba;

 

                (g)    the Province of Ontario;

 

                (h)    the Province of Newfoundland and Labrador;

 

                (i)     the Province of New Brunswick;

 

                (j)     the Province of British Columbia;

 

                (k)    the Yukon Territory;

 

                (l)     the Territory of Nunavut.

 

       (2)    The status of Canada as a designated jurisdiction applies in respect of “included employment” as defined in subsection 2(1) of the Pension Benefits Standards Act, 1985 (Canada) but not in respect of any other employment in Canada.



Part 2: Pension Plan Administration


Registration of Pension Plans and Amendments, and Filing of Agreements


Application for registration of pension plan

28   (1)    An application for registration of a pension plan under Section 19 of the Act must be made no later than 90 days after the plan is established.

 

       (2)    An application for registration of a pension plan must be accompanied by the prescribed fee.

 

       (3)    All of the following are the documents required to be filed with an application for registration of a pension plan under clause 19(3)(b) of the Act:

 

                (a)    certified copies of all the documents that create and support the pension plan;

 

                (b)    certified copies of all the documents that create and support the pension fund;

 

                (c)    a certified copy of any reciprocal transfer agreement related to the pension plan;

 

                (d)    a certified copy of the explanations and other information provided under subsection 38(1) of the Act;

 

                (e)    for a plan that provides defined benefits, a valuation report.

 

       (4)    The documents that create and support a pension plan must set out all of the following information:

 

                (a)    the method of appointment and the details of the appointment of the administrator;

 

                (b)    the conditions of membership in the plan;

 

                (c)    the benefits and rights that are to accrue upon all of the following:

 

                         (i)     termination of employment,

 

                         (ii)    termination of membership,

 

                         (iii)   retirement,

 

                         (iv)   death;

 

                (d)    the normal retirement age;

 

                (e)    the requirements for entitlement under the plan to any pension benefit or ancillary benefit or optional benefit;

 

                (f)    the contributions or the method of calculating the contributions required by the plan;

 

                (g)    the method of determining benefits payable under the plan;

 

                (h)    the method of calculating interest to be credited to contributions under the plan;

 

                (i)     the mechanism for payment of the cost of administration of the plan and pension fund;

 

                (j)     the mechanism for establishing and maintaining the pension fund;

 

                (k)    how surplus is to be treated while the plan continues, and on wind-up of the plan in whole or in part;

 

                (l)     the administrator’s obligation to provide members with information and documents required to be disclosed under the Act and the regulations, and details concerning the obligation;

 

                (m)   the method of allocating the plan’s assets on wind-up;

 

                (n)    the particulars of any predecessor pension plan that members may be entitled to pension benefits under;

 

                (o)    the persons who may amend the plan and how the amendments must be made.

 

       (5)    In addition to the information required by subsection (4), the documents that create and support a multi-employer pension plan must specify all of the following information:

 

                (a)    for a plan under a collective agreement or trust agreement, the powers and duties of the board of trustees that is the administrator;

 

                (b)    any consequences of a participating employer withdrawing from the plan on the funding and payment of a pension benefit, deferred pension or pension, of a member, former member, retired member or other person affected by the withdrawal.

 

       (6)    In addition to the information in subsection (4), the documents that create and support a jointly sponsored pension plan must set out all of the following information:

 

                (a)    the employee contributions or the method of calculating the employee contributions required, including any obligations in respect of any going concern unfunded liability and solvency deficiency;

 

                (b)    the employer contributions or the method of calculating the employer contributions required, including any obligations in respect of any going concern unfunded liability and solvency deficiency;

 

                (c)    any consequences of a participating employer withdrawing from the plan on the funding and payment of pension benefits, deferred pensions and pensions of a member, former member, retired member or other person affected by the withdrawal;

 

                (d)    how decisions about the terms and conditions of the plan and any amendments to the plan will be made;

 

                (e)    how decisions about appointing the administrator or appointing or selecting persons as members of the body or entity that administers the plan will be made.


Application for registration of amendment to pension plan

29   (1)    An application required by subsection 22(1) of the Act for registration of an amendment to a pension plan must be filed no later than 60 days after the date that the plan or documents are amended.

 

       (2)    A certified copy of a document that changes the documents that create and support a pension plan or pension fund that is required to be filed by subsection 22(4) of the Act must be filed no later than 60 days after the date the document is certified.


Notice and explanation of pension plan amendment

30   (1)    The notice required by subsection 39(1) of the Act must be in the form of a written statement that includes all of the following information:

 

(a)    notice that the amendment has been made;

 

(b)    a summary and explanation of the amendment;

 

                (c)    the administrator’s contact information.

 

       (2)    In addition to the persons listed in subsection 39(1) of the Act, a written notice in accordance with subsection (1) must also be given to any person who is, or will be affected by the amendment.

 

       (3)    Except as provided in subsections (4) and (5), written notice under this Section must be given no later than 45 days before the date that the amendment is filed.

 

       (4)    In accordance with subsection 39(4) of the Act, a written notice under this Section may be given after the amendment is filed in any of the following circumstances:

 

                        (a)    the amendment is of a technical nature;

 

                        (b)    the amendment will not substantially affect the pension benefits, rights or obligations of a member, former member or retired member accruing subsequent to the to the effective date of the amendment;

 

                        (c)    the amendment will not adversely affect any person entitled to payments from the pension fund.

 

       (5)    A notice given under subsection (4) after the amendment is filed must be given no later than 6 months after registration of the amendment.


Valuation report on amendment to pension plan

31   (1)    Except as provided in subsection (2), for an amendment to a pension plan that reduces or increases contributions or changes a going concern unfunded liability or solvency deficiency, an administrator must file all of the following:

 

                (a)    a valuation report containing any of the information required for a valuation report under Section 53 or 57 that might be affected by the amendment;

 

                (b)    if there is a previous year credit balance, a cost certificate.

 

       (2)    Subsection (1) does not apply to any of the following amendments:

 

                (a)    an amendment that is required by law and confers an improvement in the benefits provided under the pension plan;

 

                (b)    an amendment to a pension plan that provides only defined contribution benefits.

 

       (3)    An administrator must file the report and any certificate required by subsection (1) no later than 6 months after the date the amendment is required to be submitted to the Superintendent for registration.


Amendments that are permitted only if cost of amendments paid into pension fund

32   (1)    During the first 5 years of the period for liquidating a solvency deficiency under Section 105, or the first 10 years of the period for liquidating a solvency deficiency under subsection 107(3), a pension plan must not be amended to do any of the following, unless the cost of the amendment is fully paid to the pension fund at the time the amendment is made:

 

                (a)    increase the cost of the pension benefits, deferred pensions, pensions or ancillary benefits provided by the plan;

 

                (b)    create or increase a going concern unfunded liability under the plan;

 

                (c)    create or increase a solvency deficiency under the plan.

 

       (2)    A pension plan listed in subsection 85(2) must not be amended to do any of the following, unless the cost of the amendment is fully paid to the pension fund at the time the amendment is made:

 

                (a)    increase the cost of the pension benefits, deferred pensions, pensions or ancillary benefits provided by the plan;

 

                (b)    create or increase a going concern unfunded liability;

 

                (c)    create or increase a solvency deficiency.

 

       (3)    The DIRECTIONS Council for Vocational Services Society Pension Plan–Registration No.: 908699 must not be amended on or after December 21, 2012, up to and including December 31, 2017, to do any of the following, unless the cost of the amendment is fully paid to the pension fund at the time the amendment is made:

 

                (a)    increase the cost of the pension benefits, deferred pensions, pensions or ancillary benefits provided by the plan;

 

                (b)    create or increase a going concern unfunded liability;

 

                (c)    create or increase a solvency deficiency.


Amendment to specified multi-employer pension plan requiring liquidation of going concern unfunded liability

33   If a specified multi-employer pension plan is amended to increase pension benefits, deferred pensions, pensions or ancillary benefits and the amendment results in the plan’s transfer ratio being lower than 0.8 or the ratio of the market value of the plan assets to the going concern liabilities being lower than 0.9, then any increase in the going concern unfunded liability resulting from the amendment must be liquidated, with interest at the going concern valuation interest rate, by equal monthly instalments over a period of 5 years beginning on the valuation date of the valuation report that determined the increase in the going concern unfunded liability.


Filing of reciprocal transfer agreements

34   An administrator must file a certified copy of any reciprocal transfer agreement entered into on or after the date these regulations come into force, no later than 60 days after the execution of the agreement.


Requirements for reciprocal transfer agreements

35   Pursuant to subsection 32(2) of the Act, a reciprocal transfer agreement that is entered into, or under which money or benefits is transferred, must not contain any provision relating to a benefit that a pension plan is prohibited by the Act from containing.


Advisory Committees


Advisory committee definition

36   In the Act and in Sections 37 to 45,

 

“advisory committee”, in relation to a pension plan, means a committee established in accordance with and for the purposes of Section 36 of the Act.


Notice and information about establishing advisory committee

37   (1)    All of the following information is prescribed as the information to be distributed by an administrator to members and retired members along with the notice of intent to establish an advisory committee received in accordance with subsection 36(6) of the Act:

 

                (a)    that a vote for the establishment of an advisory committee will be held and that the members and retired members will be given an opportunity to participate in the vote;

 

                (b)    that the determination as to whether an advisory committee will be established will be made by a majority of the members and retired members who participate in the vote;

 

                (c)    the date that the vote will be held for the establishment of the advisory committee;

 

                (d)    the means by which the vote will be held;

 

                (e)    if the vote is to be held in person, the location and the time of the meeting for purposes of holding the vote;

 

                (f)    a statement that the advisory committee is required, under subsection 36(5) of the Act, to do all of the following:

 

                         (i)     monitor the administration of the pension plan,

 

                         (ii)    make recommendations to the administrator respecting the administration of the pension plan,

 

                         (iii)   promote awareness and understanding of the pension plan.

 

       (2)    The notice and information under subsection (1) must be distributed no later than 30 days after the date the notice under subsection 36(6) of the Act is received by the administrator.

 

       (3)    The notice and information under subsection (1) must be in writing and must be given by 1 or more of the following means:

 

                (a)    by mail, if sent to the most recent address of the recipient in the administrator’s records for the pension plan;

 

                (b)    by e-mail, if the recipient has requested that information about the pension plan be sent to a specified e-mail address;

 

                (c)    for members who regularly work at the employer’s workplace, by posting it in 1 or more areas of the workplace that are regularly accessed by the members.

 

       (4)    The notice and information under subsection (1) must be given to any members who are represented by a trade union or trade unions by giving it to the trade union or trade unions instead of to the members.

 

       (5)    The notice and information under subsection (1) may be given to any retired members who are members of an association of retired members of the plan by giving it to the executive of the association instead of, or in addition to, giving it to those retired members, if the administrator receives a written request from the association for it to be provided to them.


Voting on establishing advisory committee

38   (1)    The date set for a vote on whether to establish an advisory committee must be a date that is no earlier than 30 days after the date the notice and information is provided under subsection 37(1).

 

       (2)    A vote on whether to establish an advisory committee must be conducted by secret ballot through any combination of the following methods:

 

                (a)    in person at a meeting of members and retired members and other beneficiaries;

 

                (b)    electronically;

 

                (c)    by mail;

 

                (d)    by casting ballots at a specified location.

 

       (3)    Making arrangements for a suitable location for an in-person meeting to conduct a vote, if requested to do so by the persons who provided written notice to the administrator of their intent to establish an advisory committee, is such other assistance that must be provided by an administrator under clause 36(6)(b) of the Act.


Notice concerning result of vote to establish advisory committee

39   (1)    Any persons referred to in subsection 36(6) of the Act who have provided notice to an administrator of their intent to establish an advisory committee under that subsection must provide notice in writing to the administrator of the result of the vote as soon as practicable following the vote.

 

       (2)    No later than 5 days after the date the notice referred to in subsection (1) is received, an administrator must provide all of the following information, in writing, to the members, former members and retired members:

 

                (a)    the result of the vote held on whether to establish an advisory committee;

 

                (b)    if the vote resulted in the establishment of an advisory committee,

 

                         (i)     the rules governing the composition of the advisory committee as set out in subsection 36(3) of the Act,

 

                         (ii)    the number of and names of the classes of employees that are represented in the pension plan, and the number of employees in each class,

 

                         (iii)   the nomination entitlements in subsection 40(1),

 

                         (iv)   how and by when, in accordance with subsection 40(2), each class of employees and the retired members and former members may nominate representatives to the advisory committee,

 

                         (v)    the voting procedures in Section 41.

 

       (3)    The information in subsection (2) may be provided by 1 or more of the means set out in clauses 37(3)(a) to (c).


Nominating advisory committee representatives

40   (1)    To meet the requirements for composition of the advisory committee in subsection 36(3) and (4) of the Act, each member of the following groups may nominate the specified number of persons from their group to represent them on the advisory committee:

 

                (a)    for a class of employees represented in the pension plan, 1 or 2 members of the class;

 

                (b)    for retired members of the pension plan, 1 or 2 retired members;

 

                (c)    for former members of the pension plan, 1 former member.

 

       (2)    Nominations must be provided in writing to an administrator no later than 10 days after the results of the vote to establish an advisory committee is received from the administrator under subsection 39(2).


Voting on advisory committee representatives

41   (1)    No later than 10 days after the deadline for nominations in subsection 40(2), the administrator must provide an opportunity to each member, former member and retired member, to vote by secret ballot on the nominees for their representative or representatives on the advisory committee.

 

       (2)    An administrator must establish the procedure for conducting the vote by secret ballot.


Notice of results of vote on advisory committee representatives

42   No later than 5 days after a vote on nominees under Section 41, an administrator must give the members, former members and retired members of the plan the results of the vote in writing by 1 or more of the means set out in clauses 37(3)(a) to (c).


Term of office for advisory committee

43   (1)    An advisory committee member’s term of office is as established by the committee under its rules of procedure, governance and operations, up to a maximum period of 3 years.

 

       (2)    Despite subsection (1), the term of office for each initial representative on an advisory committee is 3 years.

 

       (3)    A member of an advisory committee continues to hold office after the end of their term until they are reappointed or a successor is appointed.

 

       (4)    A vacancy on an advisory committee that is for an unexpired term of 120 days or more must be filled not later than 120 days after the vacancy arises.


Participating on advisory committee

44   (1)    A member of an advisory committee is entitled to take time off from their regular work duties, without loss of pay or other benefits, to carry out their duties on the advisory committee.

 

       (2)    The costs payable out of the pension fund under subsection 36(10) of the Act are all of the following costs:

 

                (a)    the reasonable costs associated with renting a facility for a meeting held for any of the following purposes:

 

                         (i)     to establish the advisory committee,

 

                         (ii)    to vote for representatives on the advisory committee,

 

                         (iii)   meetings of the advisory committee;

 

                (b)    the reasonable costs associated with a committee member attending an advisory committee meeting and other expenses reasonably incurred by a committee member in carrying out their duties as a committee member;

 

                (c)    copying costs for any records provided under subsection 36(8) of the Act, subject to an administrator’s right to limit any of the following:

 

                         (i)     the number of copies provided to the advisory committee,

 

                         (ii)    how many times copies of a particular record will be provided without charge during a calendar year.


Advisory committee procedure, governance and operations

45   (1)    An advisory committee must establish written rules of procedure, governance and operations for exercising its powers and discharging its duties under the Act and these regulations.

 

       (2)    An advisory committee’s rules of procedure, governance and operations must include provisions for all of the following:

 

                (a)    electing or appointing a chair, secretary and any other officers that the committee considers advisable;

 

                (b)    the powers and duties of the committee’s officers;

 

                (c)    appointing a representative to the committee to replace a representative who is unable or no longer wishes to act or whose term of office is about to expire or has expired;

 

                (d)    the means by which

 

                         (i)     the administration of the pension plan must be monitored,

 

                         (ii)    recommendations to the administrator respecting the administration of the pension plan must be made, and

 

                         (iii)   awareness and understanding of the pension plan must be promoted;

 

                (e)    respecting meetings of the committee, including all of the following:

 

                         (i)     the means by which, and time periods within which, notice of meetings must be provided,

 

                         (ii)    requiring meetings at regular intervals, and setting the dates, times and places of those meetings,

 

                         (iii)   establishing procedures for changing the date, time or place of a regular meeting and governing the notice to be given of the change,

 

                         (iv)   establishing procedures for calling and holding special meetings of the committee,

 

                         (v)    governing the conduct and procedures of meetings, including the voting and quorum requirements for the transaction of business;

 

                (f)    establishing a communications strategy for regular communications with the members, former members and retired members of the plan, including the timing and means by which minutes of the meetings of the advisory committee must be provided;

 

                (g)    requiring the rules to be reviewed at least once every 3 years.

 

       (3)    An advisory committee’s rules of procedure and governance may include any other rules that the advisory committee considers necessary or advisable for the fulfilment of its powers and duties under the Act and these regulations.

 

       (4)    An advisory committee may require the administrator to provide notice to the representatives of the committee of any meeting of the committee, in the form and within the period directed by the committee.

 

       (5)    An administrator must be given reasonable notice of any meeting required between the administrator and the committee under clause 36(7)(a) of the Act.


Pension Fund Investment and Administration


Pension fund trustee

46   (1)    Subject to subsection (2), all of the following are prescribed for the purposes of subsection 33(5) of the Act as persons who may be a trustee of a pension fund:

 

                (a)    a government;

 

                (b)    an insurance company;

 

                (c)    a trust in Canada governed by a written trust agreement under which the trustees are

 

                         (i)     a trust corporation registered under the Trust and Loan Companies Act,

 

                         (ii)    3 or more individuals, at least 3 of whom reside in Canada and at least 1 of whom is independent of any employer contributing to the pension fund, to the extent the individual is not a significant shareholder, partner, proprietor, director, officer, employee of an employer who contributes to the fund or employee of an affiliate of the employer who contributes to the fund, or

 

                         (iii)   a corporate pension society established under the Pension Fund Societies Act (Canada);

 

                (d)    an entity under the Government Annuities Act (Canada);

 

                (e)    a board, agency, commission or corporation made responsible by an Act of the Legislature for the administration of the pension fund.

 

       (2)    Any of the persons referred to in subsection (1) may be a trustee in combination with another person referred to in that subsection.


Investment of plan assets must be in accordance with regulations

47   Despite the provisions of any pension plan or any instrument governing a plan, the assets of a plan must be invested and the investments must be made in accordance with these regulations.


Statement of investment policies and procedures

48   (1)    Before the date a pension plan is registered, an administrator must establish a written statement of investment policies and procedures in respect of the pension plan’s portfolio of investments and loans that meets the requirements of this Section and Schedule 1: Permitted Investments.

 

       (2)    The written statement of investment policies and procedures required by subsection (1) must take into account all factors that may affect the funding and solvency of the pension plan and the ability of the plan to meet its financial obligations, including all of the following:

 

                (a)    categories of investments and loans, including derivatives, options and futures;

 

                (b)    diversification of the investment portfolio;

 

                (c)    asset mix and rate of return expectations;

 

                (d)    liquidity of investments;

 

                (e)    the lending of cash or securities;

 

                (f)    the retention or delegation of voting rights acquired through investments;

 

                (g)    the method of, and the basis for, the valuation of investments that are not regularly traded at a public exchange;

 

                (h)    related party transactions permitted under Section 16 of Schedule 1: Permitted Investments and the criteria to be used to establish whether a transaction is nominal or immaterial to the plan, having regard to all factors that may affect the funding and solvency of the plan and the ability of the plan to meet its financial obligation.

 

       (3)    The statement of investment policies and procedures required by this Section must include a description of the factors referred to in subsection (2) and the relationship of those factors to the investment policies and procedures.

 

       (4)    An administrator must provide the statement of investment policies and procedures required by subsection (1) to all of the following by the specified dates:

 

                (a)    any pension committee that has been established, no later than 60 days after the later of all of the following dates:

 

                         (i)     the date on which the statement is established by the administrator under subsection (1),

 

                         (ii)    the date the pension committee is established;

 

                (b)    if a plan is a defined benefit plan, the actuary of the plan on or before the later of all of the following dates:

 

                         (i)     the date that is 60 days after the date the statement is established, by the administrator under subsection (1),

 

                         (ii)    the date the actuary is appointed.

 

       (5)    An administrator must review and confirm or amend the statement of investment policies and procedures required by subsection (1) at least once in each fiscal year of a pension plan.

 

       (6)    A copy of each amendment to the statement of investment policies and procedures required by subsection (1) must be provided, no later than 60 days after the statement is amended, to all of the following:

 

                (a)    any pension committee that has been established for the pension plan;

 

                (b)    for a pension plan that provides defined benefits, to the actuary of the plan.


Record of investments

49   (1)    An administrator must maintain a current record of investments for the pension plan that clearly identifies all of the following:

 

                (a)    each investment held on behalf of the pension plan;

 

                (b)    the name in which each investment is made;

 

                (c)    the name in which each investment is registered, if the investment is capable of being registered.

 

       (2)    A pension plan must provide that the money in the pension fund is to be invested in accordance with Schedule 1: Permitted Investments and invested in 1 of the following names:

 

                (a)    a name that clearly indicates that the investment is held in trust for the plan and, if the investment is capable of being registered, registered in that name;

 

                (b)    the name of a financial institution or its nominee, in accordance with a custodial agreement or trust agreement entered into on behalf of the plan with the financial institution, that clearly indicates that the investment is held for the pension plan;

 

                (c)    the name of The Canadian Depository for Securities Limited or its nominee, in accordance with a custodial agreement or trust agreement entered into on behalf of the plan with a financial institution, that clearly indicates that the investment is held for the plan.

 

       (3)    In subsection (2), “custodial agreement” means an agreement that meets all of the following criteria:

 

                (a)    it provides that an investment made or held on behalf of a pension plan under the agreement

 

                         (i)     constitutes part of the plan’s pension fund, and

 

                         (ii)    will not at any time constitute an asset of the custodian or nominee;

 

                (b)    it provides that records will be maintained by the custodian, and will be sufficient to allow the ownership of any investment to be traced to the pension plan at any time.


Designated jurisdictions—alternate corresponding provisions

50   If any provisions of Schedule 1: Permitted Investments differ from the corresponding provisions under the laws of a designated jurisdiction, the Superintendent may apply, in whole or in part, those corresponding provisions to a plan that has members in that designated jurisdiction instead of the provisions of Schedule 1: Permitted Investments.


Reporting to the Superintendent


Pension plan that provides only defined contribution benefits exempted

51   Sections 52 to 64 do not apply, and a valuation report is not required, for a pension plan that provides only defined contribution benefits.


Initial valuation reports

52   (1)    Except as provided in subsection (4), no later than 90 days after the date that a pension plan is established, the administrator must submit to the Superintendent an initial valuation report that sets out all of the following for the plan on the basis of a going concern valuation:

 

                (a)    the normal cost for the first year the plan is registered;

 

                (b)    the rule for computing the normal cost for the following years up to the valuation date of the next valuation report;

 

                (c)    an estimate of the normal cost for the following years up to the valuation date of the next valuation report determined in accordance with the rule referred to in clause (b);

 

                (d)    the estimated aggregate of any employee contributions for each year following the valuation report up to the date of the next valuation report;

 

                (e)    the amount of any going concern unfunded liability determined for the plan;

 

                (f)    the special payments required to liquidate any going concern unfunded liability identified under clause (e), in accordance with Section 99 or 104;

 

                (g)    if the plan provides for an escalated adjustment,

 

                         (i)     a statement that the escalated adjustment has been pre-funded on a going concern basis in relation to the pension benefits that have accrued, or will accrue, under the plan on or after the date these regulations come into force, in accordance with Section 91,

 

                         (ii)    in relation to the pension benefits accruing under the plan before the date these regulations come into force, whether and to what extent

 

                                  (A)   liability for the future cost of the escalated adjustment has been included in the determination of any going concern unfunded liability, or

 

                                  (B)   the cost for the escalated adjustment is included in the normal cost.

 

       (2)    An initial valuation report under this Section must also include all of the following information about the pension plan, on the basis of a solvency valuation:

 

                (a)    whether the plan has a solvency deficiency;

 

                (b)    if there is a solvency deficiency, the amount of the solvency deficiency;

 

                (c)    if there is a solvency deficiency, the special payments required to liquidate the solvency deficiency in accordance with Section 99, 105 or 107;

 

                (d)    whether the plan is exempt, in accordance with subsection 19(6), from the requirement to make special payments to liquidate the solvency deficiency;

 

                (e)    if the plan provides for an escalated adjustment,

 

                         (i)     a statement that the escalated adjustment has been pre-funded on a solvency basis in relation to the pension benefits that have accrued, or will accrue under the plan on or after the date these regulations come into force, in accordance with Section 91, and

 

                         (ii)    in relation to the pension benefits accruing under the plan before the date these regulations come into force, whether and to what extent,

 

                                  (A)   liability for the future cost of the escalated adjustment has been included in the determination of any going concern unfunded liability, or

 

                                  (B)   the cost for the escalated adjustment is included in the normal cost;

 

                (f)    whether the transfer ratio is less than 1;

 

                (g)    if the transfer ratio is less than 1, the transfer ratio.

 

       (3)    An initial valuation report for a designated plan must also contain a maximum funding valuation.

 

       (4)    An initial valuation report may certify the adequacy of premiums necessary to provide for the payment of all benefits under an insured pension plan that is funded by level premiums extending not beyond the retirement age for each individual member, instead of the matters required by subsection (1).


Valuation reports at regular intervals

53   (1)    An administrator must cause a pension plan to be reviewed and a valuation report prepared and certified at regular intervals, beginning with a valuation date that is no later than 3 years after the date the plan is established, and then at intervals of no longer than 3 years, subject to any provision of these regulations that requires an earlier report.

 

       (2)    A valuation report under this Section must set out all of the following for the pension plan, on the basis of a going concern valuation:

 

                (a)    the normal cost in the year following the valuation date of the report;

 

                (b)    all of the information required in clauses 52(1)(b) to (g) for an initial valuation report;

 

                (c)    any special payments remaining to be paid after the valuation date with respect to a going concern unfunded liability determined in a previous valuation report;

 

                (d)    the present value of any future special payments remaining to be paid after the valuation date, as established in a previous valuation report;

 

                (e)    the actuarial gain or actuarial loss in the plan, including,

 

                         (i)     if there is an actuarial loss, the special payments that will liquidate any increase in a going concern unfunded liability resulting from the loss over a term that does not exceed:

 

                                  (A)   15 years, for a plan other than a specified multi-employer pension plan,

 

                                  (B)   10 years, for a specified multi-employer pension plan,

 

                         (ii)    if there is an actuarial gain, any intended application of the gain in accordance with Section 96.

 

       (3)    A valuation report under this Section must also set out all of the following for the pension plan, on the basis of a solvency valuation:

 

                (a)    all the information required in clauses 52(2)(a) to (g) for an initial valuation report;

 

                (b)    any special payments remaining to be paid after the valuation date with respect to a solvency deficiency determined in a previous valuation report;

 

                (c)    the liabilities referred to in clauses 7(2)(a) to (d) that are being excluded from the calculation of the solvency liabilities in accordance with that Section.

 

       (4)    Each report under this Section must also set out the previous year credit balance as of the valuation date of the report.

 

       (5)    Each report under this Section for a designated plan must contain a maximum funding valuation.


Valuation reports for multi-employer pension plans

54   (1)    For a multi-employer pension plan that is not a jointly sponsored pension plan, an actuary must do the following as part of a valuation report:

 

                (a)    perform tests that will demonstrate that the contributions required by the collective agreement or agreements are sufficient to provide for the benefits under the plan, without taking into account any provision for reducing the benefits that is set out in the plan;

 

                (b)    if the contributions required by the collective agreement or agreements are not sufficient to provide for the benefits under the plan, propose options available to the administrator that will result in the required contributions being sufficient to provide the benefits, in accordance with subsection 85(5) and Section 87.

 

       (2)    An actuary who proposes options in accordance with clause (1)(b) must do all of the following:

 

                (a)    provide a copy of the report containing the proposed options to the administrator;

 

                (b)    file a copy of the report no later than the earlier of,

 

                         (i)     30 days after the date that they provide the report to the administrator; and

 

                         (ii)    the time period referred to in Section 59.

 

       (3)    No later than 90 days after the date that an administrator receives a copy of a report under subsection (2) for a pension plan, the administrator must do all of the following:

 

                (a)    take actions that will result in the required contributions being sufficient to provide for benefits under the plan;

 

                (b)    advise the Superintendent of the actions taken under clause (a);

 

                (c)    file all documents relevant to the actions taken under clause (a).


Solvency concerns indicated in initial or review valuation report

55   (1)    Except as provided in subsections (3), if a valuation report under Section 52 or 53 indicates solvency concerns, the first valuation report for the plan under Section 53 following the valuation report in which the solvency concerns were identified must be prepared and certified with a valuation date no later than 1 year after the valuation report.

 

       (2)    For the purposes of subsection (1), a valuation report indicates solvency concerns if the ratio of the solvency assets to the solvency liabilities, for a valuation date on or after the date these regulations come into force, is less than 0.85.

 

       (3)    Subsection (1) does not apply to any of the following pension plans:

 

                (a)    a plan that is established for less than 3 years, unless the plan is a successor plan as described in Section 108 or 110 of the Act;

 

                (b)    a plan that is a designated plan or an individual pension plan.


Valuation report for plan that ceases to be designated plan or individual pension plan

56   An administrator of a pension plan that ceases to be a designated plan or an individual pension plan must cause the plan to be reviewed and a valuation report for the plan must be prepared under Section 53 and certified with a valuation date that is no later than the end of the fiscal year in which the plan ceased to be a designated plan or an individual pension plan.


Superintendent may require additional valuation report

57   (1)    This Section does not apply to any of the following pension plans, unless the plan is a jointly sponsored pension plan:

 

                (a)    a multi-employer pension plan established under a collective agreement or trust agreement;

 

                (b)    a pension plan that provides defined benefits under which the employer contributions are limited to a fixed amount set out in a collective agreement.

 

       (2)    The Superintendent may cause an additional valuation report to be prepared for a pension plan by an actuary chosen by the Superintendent if all of the following apply:

 

                (a)    a valuation report that is required for the plan is not filed 1 year after the date it is required to be filed under these regulations;

 

                (b)    the Superintendent considers that preparing an additional valuation report under this Section is necessary to ensure that the plan is sufficiently funded to provide the benefits under the plan.

 

       (3)    An additional valuation report required under subsection (2) must contain all of the information that is required for the missing valuation report identified under clause (2)(a) and be submitted to the Superintendent within a time period established by the Superintendent.

 

       (4)    If during the preparation of an additional report under this Section the Superintendent forms the opinion that the report is no longer necessary to ensure that the plan is sufficiently funded to provide the benefits under the plan, the Superintendent may cause work on the report to cease and the actuary is not required to submit the report to the Superintendent.


Payment of contributions in accordance with additional valuation report

58   (1)    If an additional valuation report is prepared for a pension plan under Section 57, employer contributions or employee contributions must be made under the plan in accordance with the report unless this Section provides otherwise.

 

       (2)    If a payment requirement set out in an additional valuation report under Section 57 differs from a payment requirement set out in a previous valuation report filed for the pension plan, any person or entity required to make employer contributions or employee contributions under the plan must make payments in accordance with the higher requirement, unless subsection (3) applies.

 

       (3)    If the Superintendent considers that the payment of the higher amount under subsection (2) unnecessary to ensure that the plan is sufficiently funded to provide benefits under the plan, the payments must be made in accordance with the lower amount.


Time period for filing valuation reports

59   (1)    Except as provided in subsection (2), an administrator must file a valuation report no later than 9 months after the valuation date established for the valuation report.

 

       (2)    Subsection (1) does not apply to a valuation report that is a solvency relief report within the meaning of subclause (ii) of the definition of “solvency relief report” in Section 106.


Cost certificates

60   (1)     A cost certificate must be filed under this Section in all of the following circumstances:

 

                (a)    an actuarial gain is applied to reduce contributions to a pension plan in accordance with subsection 96(3);

 

                (b)    there is a previous year credit balance for a pension plan other than a previous year credit balance referred to in subsection 102(2).

 

       (2)    Except as otherwise provided in these regulations, a cost certificate must contain all of the following for the pension plan it is prepared for:

 

                (a)    an estimate of the normal cost for the fiscal year beginning on the valuation date of the certificate;

 

                (b)    an estimate of the total employee contributions to be made during the fiscal year;

 

                (c)    each of the following, determined as of the valuation date of the certificate:

 

                         (i)     the going concern assets,

 

                         (ii)    the estimated going concern liabilities,

 

                         (iii)   the solvency assets,

 

                         (iv)   the estimated solvency liabilities;

 

                (d)    the previous year credit balance;

 

                (e)    the estimated transfer ratio, calculated using the solvency assets and estimated solvency liabilities from clause (c).

 

       (3)    A cost certificate must be prepared using methods and actuarial assumptions that are consistent with accepted actuarial practice and with the requirements of the Act and these regulations, based on a valuation date that is the first day of the fiscal year of the pension plan to which the certificate relates.

 

       (4)    An administrator must file a cost certificate for the fiscal year of a pension plan no later than 90 days after the beginning of the fiscal year of the plan.


Reports and certificates to be prepared by actuary, accountant or other authorized person

61   (1)    Except as provided in subsection (2), a valuation report, cost certificate or wind-up report must be prepared by an actuary.

 

       (2)    A valuation report, cost certificate or wind-up report for any of the following pension plans may be made by a public accountant or a person authorized by an insurance company, a trust corporation or by the Annuities Branch of the federal Department of Labour that is responsible for administering the plan or pension fund:

 

                (a)    a plan that provides only defined contribution benefits;

 

                (b)    a fully insured plan, established before January 1, 1988, that is underwritten by a contract or contracts with an insurance company and that does not require any contributions to be made by employees;

 

                (c)    a plan that is underwritten by a contract or contracts issued under the Government Annuities Act (Canada).


Use of actuarial methods and assumptions in preparing valuation and wind-up reports

62   (1)    Subject to subsection (2), an actuary must use actuarial cost methods and assumptions that are consistent with part 3000 of the Canadian Institute of Actuaries Standards of Practice, and methods and assumptions that are consistent with accepted actuarial practice and with the requirements of the Act and these regulations to prepare a valuation report or a wind-up report.

 

       (2)    An actuary preparing an additional valuation report under Section 57 must use their best efforts to meet the standards set out in subsection (1), and must disclose in the report any respect in which the report does not meet those standards.

 

       (3)    An actuary must certify that a report they prepare meets the standards required by subsection (1) or (2) for the report.


Actuarial information summary to accompany valuation report

63   (1)    A valuation report must be accompanied by an actuarial information summary in an approved form.

 

       (2)    An actuarial information summary must be signed by the same actuary who signs the valuation report that it accompanies.


Copy of report to agent of administrator

64   If an administrator’s agent is responsible for receiving contributions under a pension plan, the administrator must give the agent a copy of each valuation report filed for the plan.


Filing annual information return

65   (1)    Except as provided in subsection (3), the annual information return for a pension plan must be filed no later than 6 months after the end of the plan’s fiscal year.

 

       (2)    An annual information return must be accompanied by the prescribed fee required by subsection 31(1) of the Act.

 

       (3)    Subsection (1) does not apply to an annual information return filed as part of the documents required on wind-up under Section 181.


Financial statements required to be filed for pension plans

66   (1)    In this Section, “pooled funds” means the money held in a fund established by a corporation that is duly authorized to operate a fund in which moneys from 2 or more depositors are accepted for investment and in which shares allocated to each depositor serve to establish the proportionate interest at any time of each depositor in the assets of the fund.

 

       (2)    Except as otherwise provided in this Section, audited financial statements for a pension fund as at the plan’s fiscal year end must be filed by an administrator, as required by subsection 31(2) of the Act, no later than 6 months after the end of the plan’s fiscal year.

 

       (3)    An administrator of a pension plan, other than a multi-employer pension plan or a plan established by a pension fund society, is not required to comply with subsection (2) if 1 of the following applies to the plan:

 

                (a)    the market value of the plan’s assets at the end of the plan’s fiscal year is less than $5 000 000;

 

                (b)    all of the funds of the plan are held in any of the following:

 

                         (i)     any type of account, by 1 insurance company,

 

                         (ii)    pooled funds for which custody is provided by a single trust company and which are audited, at least annually, in accordance with the principles and standards set out in the Handbook of the Canadian Institute of Chartered Accountants,

 

                         (iii)   a life annuity.

 

       (4)    Subsection (2) does not apply in respect of a fiscal year of a pension plan if the fiscal year ends before the date these regulations come into force.


Content and preparation of financial statements

67   (1)    A pension plan’s financial statements must be prepared

 

                (a)    in accordance with the principles and standards set out in the Handbook of the Canadian Institute of Chartered Accountants and include all of the information that the Handbook of the Canadian Institute of Chartered Accountants requires be set out in the financial statements of a pension fund;

 

                (b)    on the accrual basis of accounting; and

 

                (c)    in accordance with generally accepted accounting principles.

 

       (2)    A pension plan’s financial statements must be made up of all of the following:

 

                (a)    a statement of net assets;

 

                (b)    a statement of changes in net assets and pension obligations.

 

       (3)    A pension plan’s financial statements must disclose each investment of the pension fund that has a market value greater than 2% of the market value of all of the investments of the pension fund.

 

       (4)    A pension plan’s financial statements must identify all of the following:

 

                (a)    the name of the plan and its Provincial registration number;

 

                (b)    the fiscal period for which the financial statements were prepared.

 

       (5)    A pension plan’s financial statements must be approved by the administrator and the approval must be evidenced by the manual or facsimile signature of the following:

 

                (a)    the administrator;

 

                (b)    if the administrator is a pension committee, board of trustees or a board, agency or commission acting as the administrator, 2 members duly authorized to signify the approval;

 

                (c)    if the administrator is an insurance company, an officer of the company duly authorized to sign on behalf of the insurance company.


Auditor’s report on financial statements

68   A pension plan’s financial statements must be accompanied by an auditor’s report prepared by a public accountant in accordance with the principles and standards set out in the Handbook of the Canadian Institute of Chartered Accountants.


Auditor’s duty to report to administrator and Superintendent

69   (1)    An auditor who audits a pension plan’s financial statements must immediately report to the administrator if they become aware that there are circumstances that indicate that there has or may have been a contravention of the Act or these regulations.

 

       (2)    An auditor must report to the Superintendent any matter they have reported under subsection (1) that they consider to be significant and that is not corrected 30 days after the date it was first reported to the administrator.


Extension of time limit for filing of document

70   All of the documents that are required by the Act or these regulations to be filed are prescribed for the purposes of clause 123(1)(b) of the Act as documents in relation to which the Superintendent may extend a time limit for the filing of the documents.


Information to Members and Others


Member and eligible member information

71   The information required to be provided to members and eligible members of a pension plan under subsection 38(1) of the Act must be provided to the following persons, as required by subsection 38(2) of the Act, within the times specified:

 

                (a)    to a person who becomes a member of the plan on the date the plan is established, no later than 60 days after the date the plan is established;

 

                (b)    to an employee who will become eligible to become a member of the plan, no later than 60 days before the date that the person will become eligible;

 

                (c)    to a person who is eligible to become a member of the plan on becoming employed, no later than 60 days after the person begins employment.


Information to be provided where plan permits optional contributions

72   In addition to the information required to be provided to members and each person who will be eligible or is required to become a member under subsection 38(1) of the Act, all of the following information is prescribed under clause 38(1)(c) of the Act to be provided by an administrator of a pension plan that permits a member to make optional contributions:

 

                (a)    the terms and conditions for making an election to convert optional contributions to optional benefits;

 

                (b)    the optional benefits available on conversion of the optional contributions to optional benefits;

 

                (c)    a summary of the method used to convert the optional contributions;

 

                (d)    a statement that there is a risk of forfeiting all or part of the optional contributions if there are insufficient benefits available at the time of conversion to completely use all of the member’s optional contributions.


Information to be provided before variable benefits account established

73   (1)    Before a member or former member elects to establish a variable benefits account under the provisions of a pension plan, the administrator must provide the member or former member with a statement setting out all of the following information:

 

                (a)    the information required to be included in the plan by subsection 149(1);

 

                (b)    for a plan that provides for the matters addressed in subsections 149(2) or 150(1), the information set out in those subsections.

 

       (2)    An administrator must provide the statement referred to in subsection (1) no later than 30 days after the date that the administrator receives any of the following:

 

                (a)    a written request from a member or former member for the statement;

 

                (b)    a written notice from a member or former member that they wish to elect to establish a variable benefits account.


Annual statement to members

74   (1)    An annual statement to members must be provided no later than 6 months after the end of a pension plan’s fiscal year.

 

       (2)    An annual statement to members must contain at least all of the following information for the period covered by the statement, as the information is recorded in the administrator’s records for the pension plan:

 

                (a)    the name of the plan and its Provincial registration number;

 

                (b)    the member’s name and date of birth;

 

                (c)    the name of any person recorded as the member’s spouse;

 

                (d)    the date that the member joined the plan;

 

                (e)    for all plans other than multi-employer pension plans, the date that the member was employed by the employer;

 

                (f)    the period covered by the statement;

 

                (g)    the name of any person designated by the member as a beneficiary for the purposes of the pre-retirement death benefit under Section 67 of the Act;

 

                (h)    a description of any benefits to be provided on the member’s death other than those required under Section 63 or 67 of the Act;

 

                (i)     the member’s normal retirement date under the plan;

 

                (j)     the earliest date the member will be eligible to receive any unreduced pension that may be available to the member;

 

                (k)    the amount of any required contributions the member made to the pension fund during the period;

 

                (l)     the accumulated amount of any required contributions the member made to the pension fund, including interest credited to the contributions, to the end of the period;

 

                (m)   the amount of any additional voluntary contributions the member made to the pension fund during the period;

 

                (n)    the accumulated amount of any additional voluntary contributions the member made to the pension fund, including interest credited to the contributions, to the end of the period;

 

                (o)    the amount of any optional contributions the member made to the pension fund during the period;

 

                (p)    the accumulated amount of any optional contributions the member made to the pension fund, including any interest credited to the contributions, to the end of the period;

 

                (q)    for a plan that provides defined contribution benefits,

 

                         (i)     the amount of employer contributions allocated to the member during the period, and

 

                         (ii)    the accumulated amount of employer contributions allocated to the member, including interest credited to the contributions, to the end of the period;

 

                (r)    for a plan that provides defined benefits,

 

                         (i)     the number of years of employment, or membership in the plan, used to calculate the member’s pension benefits, determined as of the end of the period,

 

                         (ii)    if salary is a factor in determining a pension benefit, the salary level used to determine the benefit,

 

                         (iii)   the annual amount of pension benefit that will be payable at the normal retirement date, accrued as of the end of the period,

 

                         (iv)   whether the amount referred to in subclause (iii) is reduced by an amount of pension payable under the CPP, QPP or OAS,

 

                         (v)    the transfer ratio of the plan as of the valuation date of each of the 2 valuation reports most recently filed or submitted to the Superintendent,

 

                         (vi)   an explanation of the transfer ratio and how it relates to the level of funding of members’ benefits;

 

                (s)    for a plan that permits a member to make optional contributions,

 

                         (i)     the estimated amount of optional contributions that the member could make in the following year,

 

                         (ii)    the optional benefits chosen by the member, and

 

                         (iii)   a statement that there is a risk of forfeiting part of those contributions under the federal Income Tax Act;

 

                (t)     if special payments are being made, a statement that special payments are being made to liquidate an unfunded liability or solvency deficiency;

 

                (u)    if there is a solvency deficiency, a statement as to whether the employer has provided a letter of credit to the trustee of the pension fund instead of making payments in relation to the solvency deficiency;

 

                (v)    if the plan is exempt from the requirement to fund a solvency deficiency, a statement that the plan is exempt and the dates for the beginning and end of the exemption period;

 

                (w)   a statement setting out the treatment of any surplus in a continuing plan and on wind-up;

 

                (x)    an explanation of any amendments affecting the member that were made to the plan during the period, if an explanation has not been provided under Section 30;

 

                (y)    for multi-employer pension plans and plans that provide defined benefits under which the obligation of the employer to contribute to the pension fund is limited to a fixed amount set out in a collective agreement, a statement that the member’s pension benefits may be reduced if the assets of the plan are not sufficient to meet the liabilities of the plan on wind-up.


Annual statement to variable benefits participant

75   No later than 60 days after December 31 of each year, an administrator must provide to each variable benefits participant who received a variable pension benefit in that year a statement containing the following information about their variable benefits account:

 

                (a)    the name of the pension plan and its Provincial registration number;

 

                (b)    the participant’s name;

 

                (c)    the date the variable pension benefits began;

 

                (d)    the account balances at the beginning and end of the period for which the statement is provided;

 

                (e)    the income and gains, net of losses, earned by the variable benefits account during the year;

 

                (f)    the total of the amounts paid as variable pension benefits to the participant during the year;

 

                (g)    the amounts transferred to the participant’s variable benefits account during the year and their source;

 

                (h)    the amount and nature of the fees charged to the participant’s variable benefits account during the year;

 

                (i)     the date of birth used to determine the minimum variable pension benefits payable for the year in accordance with subclause 149(1)(f)(i);

 

                (j)     if the pension is being paid to the member or former member, the name of any spouse or beneficiary of the member or former member;

 

                (k)    information about the election the participant may make for the amount to be paid, including information about all of the following:

 

                         (i)     the minimum and maximum amounts payable, in accordance with clause 149(1)(f),

 

                         (ii)    how the participant may notify the administrator of their election, and the deadline for making the election,

 

                         (iii)   the amount that will be paid if the participant does not make an election,

 

                         (iv)   how the participant may change their election;

 

                (l)     that the participant has the right to purchase a life annuity now or at a future date.


Statement on termination of employment or membership

76   (1)    An administrator must provide the written statement they are required to provide under Section 41 of the Act to the persons referred to in that Section no later than the following:

 

                (a)    if notice of termination or cessation is provided to the administrator before the event, 60 days after the date the member’s employment is terminated or their membership in the plan ceases;

 

                (b)    if notice of termination or cessation is not provided to the administrator before the event, 60 days after the date the administrator receives the notice.

 

       (2)    Except as provided in subsection (3), the written statement referred to in subsection (1) must contain at least all of the following information, as the information is recorded in the administrator’s records for the pension plan:

 

                (a)    all of the information required for an annual statement to members in clauses 74(2)(a) to (j);

 

                (b)    the years of employment or membership credited under the plan for the purpose of calculating the member’s pension benefit;

 

                (c)    the amount of the pension benefits and ancillary benefits that the member is entitled to on termination and any options respecting the benefits, including early, normal and postponed dates for beginning payment of benefits;

 

                (d)    any formula by which the member’s deferred pension will be integrated with a pension payable under the CPP, QPP or OAS and any resulting reduction or increase to the deferred pension;

 

                (e)    any bridging benefit to be paid to the member, and the date that the benefit or allowance ceases to be paid;

 

                (f)    any indexing under the plan that will apply to the member’s deferred pension;

 

                (g)    any benefit payable on the member’s death, if the member dies before the payment of pension benefits begins;

 

                (h)    any benefit payable on the member’s death, if the member dies after payment of pension benefits begins;

 

                (i)     the transfer value of the member’s deferred pension, as determined under Section 136;

 

                (j)     any options the member has for transferring the commuted value of their deferred pension under Section 61 of the Act, including

 

                         (i)     how the transfer ratio determined under Section 11 applies to the transfer option,

 

                         (ii)    if the transfer ratio is less than 1.00, the amount that may be transferred out immediately and the manner in which the balance will be paid, and

 

                         (iii)   the time period for exercising any option;

 

                (k)    any refund the member is entitled to under subsection 55(4) or 87(2) or (5) of the Act, including

 

                         (i)     the amount of the refund,

 

                         (ii)    any options available with respect to the refund,

 

                         (iii)   the time period for exercising the available options;

 

                (l)     information about any effect the member’s election to receive a refund under subsection 55(4) or 87(2) or (5) of the Act would have on their pension or deferred pension;

 

                (m)   any options available to the member to have payment made into a registered retirement savings arrangement under subsection 55(5) or 87(7) of the Act and the time period for exercising the available options.

 

       (3)    Instead of the information required by subsection (2), a written statement referred to in subsection (1) that is provided to a member of a pension plan that provides for payment of the commuted value of a benefit in accordance with subsection 70(1) of the Act must contain at least all of the following information, as the information is recorded in the administrator’s records for the plan:

 

                (a)    the information required for an annual statement to members in clauses 74(2)(a) and (b);

 

                (b)    the years of employment or membership credited under the plan for the purpose of calculating the member’s pension benefit;

 

                (c)    the amount of the member’s pension benefits and ancillary benefits that are vested under the plan;

 

                (d)    any options available to the member for payment of the commuted value of a pension benefit under subsection 70(3) of the Act and the time periods for exercising the available options;

 

                (e)    any refund the member is entitled to under subsection 55(4) or 87(2) or (5) of the Act, including

 

                         (i)     the amount of the refund,

 

                         (ii)    any options available with respect to the refund,

 

                         (iii)   the time periods for exercising the available options.


Statement to variable benefits participant on transfer from variable benefits account

77   No later than 60 days after the date a written request is received from a variable benefits participant to transfer an amount from a variable benefits account, an administrator must provide the participant with a statement containing all of the following information about the variable benefits account, as of the date the request was received:

 

                (a)    all of the information required for an annual statement to participants in clauses 75(a) to (h);

 

                (b)    the amount available to be transferred;

 

                (c)    the minimum amount, as determined under the federal Income Tax Act, that may be paid in the year;

 

                (d)    the maximum amount, as determined under Section 151, that may be paid in the year.


Death benefits statement

78   If the death of a member or a former member who is not receiving payments under a pension plan at the time of their death results in their spouse, beneficiary or estate becoming entitled to a benefit under the plan, the administrator must, no later than 60 days after receiving notice of the death, provide the spouse, beneficiary or personal representative with a statement that contains at least all of the following information, as is recorded in the administrator’s records for the plan:

 

                (a)    the name of the plan and its Provincial registration number;

 

                (b)    the name of the deceased member or former member;

 

                (c)    the amount of the benefit and how it will be paid;

 

                (d)    any amount payable as a lump sum under subsection 55(4) of the Act;

 

                (e)    any indexing under the plan that applies to a pension;

 

                (f)    the amount of any pension resulting from additional voluntary contributions and optional contributions, if applicable;

 

                (g)    the amount of any pension purchased with contributions resulting from a transfer made on behalf of the member from another pension fund;

 

                (h)    for a spouse, the options available under Section 63 or 67 of the Act.


Statement after death of variable benefits participant

79   The written statement required to be provided under Section 41 of the Act to a person who is entitled to receive the balance of a variable benefits account must be provided no later than 60 days after receiving proper notification of the variable benefits participant’s death and must include all of the following information about the variable benefits account as of the date of death:

 

                (a)    the information required for an annual statement to participants in clauses 75(a) to (h);

 

                (b)    the date the variable benefits participant died;

 

                (c)    information about the payment and transfer options available to the recipient, including,

 

                         (i)     how the recipient may make an election, and the time period for making the election, and

 

                         (ii)    the balance in the account that will be paid or transferred if the recipient does not make an election.


Notification of options to retiring member

80   (1)    Except as provided in subsection (2), at least 60 days before a member’s normal retirement age or the date that a member has indicated they intend to retire on, an administrator must notify the member of

 

                (a)    any options respecting payment of their pension available to the member under the pension plan, the Act and these regulations; and

 

                (b)    the time period for exercising the available options.

 

       (2)    An administrator who does not receive enough advance notice to comply with subsection (1) must provide the information required by subsection (1) no later than 60 days after the date the administrator receives the completed application required to begin payment of the pension.


Retirement statement to member

81   (1)    An administrator must provide the written statement they are required to provide under Section 41 of the Act when a member retires no later than the following applicable period:

 

                (a)    if the administrator receives notification of the member’s retirement before they retire, 60 days after the date of the member’s retirement;

 

                (b)    if the administrator does not receive notification of the member’s retirement before they retire, 60 days after the administrator receives the completed application required for beginning payment of the pension.

 

       (2)    The written statement referred to in subsection (1) must contain at least all of the following information, as the information is recorded in the administrator’s records for the pension plan:

 

                (a)    the information required to be provided for an annual statement to members in clauses 74(2)(a) to (d);

 

                (b)    the years of employment credited under the plan for purposes of calculating the member’s pension benefit;

 

                (c)    the date that payment of pension benefits begins;

 

                (d)    the amount of the pension the member is or will be entitled to based on elections made by the member;

 

                (e)    any increase or reduction in the pension resulting from early or postponed retirement;

 

                (f)    the amount of any pension benefit purchased with additional voluntary contributions made by the member;

 

                (g)    the optional benefits available to the member to enhance their pension and any amount by which the member’s optional contributions exceed the maximum value of the optional benefits available for purchase, along with a statement that the excess is retained in the plan;

 

                (h)    the amount of any pension benefit purchased with contributions resulting from a transfer made on behalf of the member from another pension fund;

 

                (i)     the formula by which any pension entitlement under the plan has been integrated with pensions payable under the CPP, QPP or OAS and the effect of the integration;

 

                (j)     any bridging benefit, including special allowance, paid to the member and the date that the benefit ceases to be paid;

 

                (k)    any indexing provisions that will be applied to the pension or deferred pension;

 

                (l)     any benefit payable if the member dies and the name of the person designated as the beneficiary of the benefit;

 

                (m)   any refunds the member is entitled to under the plan other than those listed in this subsection.


Information required to be available on request

82   (1)    All of the following are prescribed as the records of a pension plan that an administrator is required to make available for inspection without charge to specified persons under subsection 42(1) of the Act:

 

                (a)    a copy of the provisions of the current plan including any amendments to the plan;

 

                (b)    any documents relating to the plan that must be filed in support of an application for registration of the plan as set out in subsection 28(3) or in support of an application for registration of an amendment to the plan as set out in subsection 22(2) of the Act and prescribed in subsection 31(1);

 

                (c)    for a plan that is a successor pension plan, a copy of the provisions of the previous pension plan, including any amendments to the previous plan;

 

                (d)    any documents relating to a previous version of the plan that must be filed in support of an application for registration of the plan as set out in subsection 28(3) or in support of an application for registration of an amendment to the plan as set out in subsection 22(2) of the Act and prescribed in subsection 31(1);

 

                (e)    the applicable provisions of any document that sets out an employer’s responsibilities under the plan;

 

                (f)    any document that delegates the administration of the plan or pension fund;

 

                (g)    copies of any information returns, actuarial information summaries and other information summaries filed for the plan;

 

                (h)    copies of any valuation reports for the plan that have been filed or submitted to the Superintendent;

 

                (i)     copies of correspondence about the plan between the administrator and the Superintendent, or the staff of the Superintendent, for the 5-year period before the date of the request, but excluding any personal information that relates to a member, former member or retired member unless the person’s prior consent is obtained;

 

                (j)     copies of the parts of any agreement relating to the purchase or sale of a business or the assets of a business that are filed for the plan;

 

                (k)    copies of any financial statements and the accompanying auditor’s report on the financial statements for the plan’s pension fund that are filed for the plan;

 

                (l)     copies of any letter of credit held in trust for the plan, any related trust agreement and any certificate filed by the administrator under clause 121(3)(b);

 

                (m)   copies of any statements of investment policies and procedures that are established for the plan under these regulations.

 

       (2)    All of the following are prescribed as the records of a pension plan or pension fund that an administrator is required by subsection 42(5) of the Act to provide copies of by mail or, subject to subsection (3), electronically, to persons described in subsection 42(1) of the Act:

 

                (a)    the provisions of the current plan, including any amendments to the plan;

 

                (b)    the valuation report most recently filed or submitted to the Superintendent for the plan;

 

                (c)    the most recently filed financial statements and the accompanying auditor’s report on the financial statements for the plan’s pension fund;

 

                (d)    the most recently filed actuarial information summary filed under Section 63 for the plan;

 

                (e)    the most recently filed annual information return filed under Section 65 for the plan;

 

                (f)    the most recently established statement of investment policies and procedures for the plan established under Section 48.

 

       (3)    The records prescribed in subsection (2) may be provided electronically if the person who requested them gives their permission.

 

       (4)    An administrator must comply with a written request for information made under Section 42 of the Act no later than 30 days after the date the request is received.

 

       (5)    In addition to the information prescribed in subsection (1), any parts of a pension plan and other documents or information that are applicable to the person are prescribed as records that the person may inspect or request copies of under Section 42 of the Act.

 

       (6)    The maximum amount that may be charged as an applicable fee for providing records in accordance with subsection 42(7) of the Act is

 

                (a)    55 cents per page for a paper copy; and

 

                (b)    $5.65 for each record provided electronically.


Inspection of filed records of pension plan and pension fund

83   (1)    The records prescribed in clauses 82(1)(a) to (l) are the records that specified persons are entitled to inspect at the office of the Superintendent in accordance with clause 43(2)(b) of the Act.

 

       (2)    The records prescribed in clauses 82(2)(a) to (e) are the records that the Superintendent must provide by mail or, subject to subsection (3), electronically under subsection 43(4) of the Act.

 

       (3)    The records referred to in subsection (2) may be provided electronically if the person who requests them gives their permission.

 

       (4)    In addition to the information prescribed in subsections (1) and (2), any parts of a pension plan and other documents or information that are applicable to a person are records that the person is entitled to inspect or request copies of under Section 43 of the Act.


Records Respecting Pension Plans


Retention of records

84   (1)    In this Section,

 

“record” includes all of the following:

 

                         (i)     accounts, books, files, returns, statements, reports, financial documents or other memorandums of financial or non-financial information, whether in writing or in electronic form or represented or reproduced by any other means,

 

                         (ii)    the results of the recording of details of electronic data processing systems and programs to illustrate what the systems and programs do and how they operate.

 

       (2)    Records respecting a pension plan that are in the possession or control of an administrator, an employer or any other person other than a member or other beneficiary must be retained by the person for at least the longest of the following applicable periods:

 

                (a)    for a record relating to the creation of the plan or any previous version of the plan, 7 years after the later of the following dates:

 

                         (i)     the date that the last assets of the plan’s pension fund are distributed,

 

                         (ii)    the date that the administrator gives the Superintendent written notice under Section 182 that all the assets of the plan have been distributed in relation to the winding up of the plan;

 

                (b)    for a record relating to a benefit under the plan, 7 years after the later of the following dates:

 

                         (i)     the date the benefit is paid in full,

 

                         (ii)    the date the entitlement to the benefit is otherwise extinguished;

 

                (c)    for a record not described in clause (a) or (b), 7 years after the later of the following dates:

 

                         (i)     the date of the last transaction to which the record relates occurred,

 

                         (ii)    the date that the record ceases to have effect.

 

       (3)    The requirement in subsection (2) may be satisfied by retaining an electronic record if all of the following conditions are met:

 

                (a)    it is retained in a format that accurately represents the information contained in the original record;

 

                (b)    it is accessible so as to be usable for subsequent reference by any person entitled to have access to it or a copy of it;

 

                (c)    for a document that was sent or received, the record includes information that identifies the origin and destination of the document and the date and time when it was sent or received.


Part 3: Funding of Pension Plans


Payment of Contributions


Employer contributions and employee contributions set out in pension plan

85   (1)    A pension plan must set out all the obligations for persons or entities to make employer contributions and employee contributions in respect of all of the following under the plan:

 

                (a)    the normal cost;

 

                (b)    any going concern unfunded liability;

 

                (c)    unless exempted in this Section, any solvency deficiency.

 

       (2)    The following pension plans are not required to include a provision that sets out the obligations to make employer contributions in respect of any solvency deficiency under the plan:

 

                (a)    a municipality pension plan that provides defined benefits;

 

                (b)    a university pension plan that provides defined benefits;

 

                (c)    a specified multi-employer pension plan;

 

                (d)    the Pension Plan for the Non-Teaching Employees of the School Boards of Nova Scotia–Registration No.: 694778;

 

                (e)    the South Shore Regional School Board CUPE Staff Pension Plan– Registration No.: 582346;

 

                (f)    the South Shore Regional School Board Support Staff Pension Plan–Registration No.: 948141;

 

                (g)    the Tri-County Regional School Board CUPE Staff Pension Plan–Registration No.: 1198076;

 

                (h)    the Tri-County Regional School Board Support Staff Pension Plan-Registration No.: 1198068;

 

                (i)     the Atlantic Police Association Pension Plan–Registration No.: 414342;

 

                (j)     the Halifax Regional Water Commission Employees’ Pension Plan-Registration No.: 344614.

 

       (3)    In subsection (2),

 

“municipality pension plan” means a pension plan for

 

                         (i)     employees of a municipality; or

 

                         (ii)    employees of an employer who is not municipality if, as of December 21, 2012, the municipality that sponsors the plan has authorized the participation of the employees in the plan;

 

“university” means a designated university under the University Foundations Act;

 

“university pension plan” means a pension plan for employees of a university.

 

       (4)    For the DIRECTIONS Council for Vocational Services Society Pension Plan-Registration No. 908699, the funding provision required by subsection (1) in respect of any solvency deficiency under the plan may be limited to the period beginning January 1, 2018.

 

       (5)    A multi-employer pension plan, other than a jointly sponsored pension plan, that is established under a collective agreement or trust agreement or a pension plan that provides defined benefits under which the employer contributions are limited to a fixed amount set out in a collective agreement must include a provision for the funding of pension benefits and any other benefits provided under the plan that sets out the obligation to make employer contributions under the plan.


Minimum contributions to pension plan

86   (1)    Except as provided in subsection (5), the employer contributions and employee contributions made under a pension plan must not be less than the sum of all of the following:

 

                (a)    all contributions, including contributions in respect of any going concern unfunded liability and solvency deficiency;

 

                (b)    all contributions required to pay the normal cost;

 

                (c)    all special payments determined in accordance with Section 99 or 101 as the minimum amount of special payments that must be made to fund a going concern unfunded liability or liquidate a solvency deficiency;

 

                (d)    all special payments determined in accordance with the temporary exceptions in Section 104, 105 or 107 as the minimum amounts of special payments that must be made to fund a going concern unfunded liability or a solvency deficiency;

 

                (e)    all payments determined in accordance with Sections 183 to 186 as the payments required to be made to a pension plan on wind-up or partial wind-up of the plan under Sections 99 and 100 of the Act.

 

       (2)    An employer required to make employer contributions under a designated plan or an individual pension plan is not required to make a contribution that does not qualify as an eligible contribution for the purposes of the federal Income Tax Regulations.

 

       (3)    For a pension plan that is exempted from special payments under subsection 19(6), employer contributions are not required to be made in relation to special payments required to liquidate any solvency deficiency determined in accordance with Section 99, 101, 105 or 107, except to the extent of any payments accrued due and payable in accordance with the former regulations.

 

       (4)    For greater certainty, nothing in subsection (2) or (3) relieves an employer, or any person required to make contributions on behalf of the employer, of their obligation to make payments into the pension fund of the following amounts on wind-up of the plan under subsection 99(2) of the Act:

 

                (a)    the amount necessary to fully fund the benefits provided for under the plan;

 

                (b)    the amount required to fully fund the benefits provided under Section 97 of the Act.

 

       (5)    Employer contributions for a multi-employer pension plan, other than a jointly sponsored pension plan, that is established under a collective agreement or trust agreement must not be less than the sum of all of the following:

 

                (a)    any employee contributions;

 

                (b)    any amounts set out in the applicable collective agreement that are required to be paid as employer contributions.


Sufficiency of contributions for a multi-employer pension plan

87   (1)    For a multi-employer pension plan that is not a jointly sponsored pension plan or a specified multi-employer pension plan, the contributions required under the plan are sufficient if, for each year of a period covered by a valuation report for the plan, they are not less than the sum of all of the following amounts, determined in accordance with subsection (2):

 

                (a)    the normal cost of the plan;

 

                (b)    the special payments set out in a previous valuation report that remain to be paid with respect to any going concern unfunded liability;

 

                (c)    the special payments set out in a previous valuation report that remain to be paid with respect to any solvency deficiency;

 

                (d)    the special payments to be paid with respect to any going concern unfunded liability that is determined in the valuation report;

 

                (e)    the special payments to be paid with respect to any solvency deficiency that is determined in the valuation report.

 

       (2)    The amounts required to determine the sufficiency of required contributions under subsection (1) must be determined on the basis of all of the following:

 

                (a)    a going concern valuation;

 

                (b)    a solvency valuation.


Sufficiency of contributions for Specified multi-employer pension plan

88   The contributions required under a specified multi-employer pension plan are sufficient if, for each year of a period covered by a valuation report for the plan, they are not less than the sum of all of the following amounts, determined on the basis of a going concern valuation:

 

                (a)    the normal cost of the plan;

 

                (b)    the special payments set out in a previous valuation report that remain to be paid with respect to any going concern unfunded liability;

 

                (c)    the special payments to be paid with respect to any going concern unfunded liability that is determined in the report.


Contributions made to a jointly sponsored pension plan

89   For a jointly sponsored pension plan, the contributions referred to in subsection 55(3) of the Act include employee contributions made in respect of any going concern unfunded liability or solvency deficiency.


Previous year credit balance used to reduce employer payments

90   If there is a previous year credit balance for a plan, an employer may apply the previous year credit balance to reduce the payments required under clauses 86(1)(b) to (e).


Funding of escalated adjustments

91   (1)    For benefits that accrue on or after the date these regulations come into force under a pension plan that provides for escalated adjustments, the escalated adjustments must be pre-funded on the basis of both a going concern valuation and a solvency valuation.

 

       (2)    For benefits that accrued before the date these regulations come into force under a pension plan that provides for escalated adjustments, the escalated adjustments must be funded in accordance with all of the following:

 

                (a)    the estimated future costs of any escalated adjustments provided for under the plan may be excluded from the calculations for the minimum amount of special payments set out in Sections 99, 101, 104, 105 and 107;

 

                (b)    the amounts of any escalated adjustments, to the extent that they have not been pre-funded on a going concern basis, are deemed to be part of the normal cost;

 

                (c)    factors attributable to an escalated adjustment may be excluded in determining the existence or amount of any going concern unfunded liability for any valuation report prepared for the plan.


When and how payment of contributions to be paid

92   (1)    Employee contributions must be paid by the employer to the pension plan no later than 30 days after the month the sum is received by the employer or withheld from the employee by payroll deduction or otherwise.

 

       (2)    For a pension plan that provides defined benefits, the employer contributions in respect of the normal cost must be paid in monthly instalments in 1 of the following amounts, no later than 30 days after the month for which contributions are payable:

 

                (a)    a total fixed dollar amount;

 

                (b)    a fixed dollar amount for each employee or member of the plan;

 

                (c)    a fixed percentage of either

 

                         (i)     the portion of the payroll related to members of the plan, or

 

                         (ii)    employee contributions.

 

       (3)    For a pension plan that provides only defined contribution benefits, the employer contributions must be paid in monthly instalments in 1 of the following amounts, no later than 30 days after the month for which contributions are payable:

 

                (a)    a total fixed dollar amount;

 

                (b)    a fixed dollar amount for each employee or member of the plan;

 

                (c)    a fixed percentage of either

 

                         (i)     the portion of the payroll related to members of the plan, or

 

                         (ii)    employee contributions.

 

       (4)    If the date that a valuation report, other than an additional valuation report under Section 58, is filed or submitted to the Superintendent is later than the valuation date of the report, and the report indicates that an increase is required in any of the following, the employer must pay the increased amounts into the pension fund no later than 12 months after the valuation date of the report in which the increase was determined:

 

                (a)    the amount of any contributions that were previously reduced by applying an actuarial gain under subsection 96(3);

 

(aa)    the amount of any contributions in respect of the normal cost;

Clause 92(4)(aa) added: O.I.C. 2015-310, N.S. Reg. 326/2015.

 

                (b)    special payments.

 

       (5)    The increased contributions or special payments in subsection (4) must be calculated from the date on which they are required to be made to the date the report is filed or submitted to the Superintendent, and must include interest at the going concern valuation interest rate or the solvency valuation interest rate, as applicable.

 

       (6)    If the period covered by a valuation report has ended and no report under Section 53 or 57 covering a subsequent period is filed or submitted, employer contributions and employee contributions must continue to be paid in accordance with the report most recently filed or submitted to the Superintendent under Section 31, 52, 53 or 57.

 

       (7)    Except as provided in subsection (6) for an increase in special payments, all special payments must be paid in equal monthly instalments no later than 30 days after the month in relation to which the special payment is payable.


Time limits for contributions under pension plans that are subject to collective agreements

93   For a multi-employer pension plan, other than a jointly sponsored pension plan, that is established under a collective agreement or trust agreement or for a pension plan that provides defined benefits under which the obligation of an employer to contribute to the plan is limited to a fixed amount set out in a collective agreement, the contributions required under the plan must be made no later than the following:

 

                (a)    for employee contributions, 30 days after the month in which the sum was received or deducted;

 

                (b)    for all amounts other than those referred to in clause (a), the earlier of the following:

 

                         (i)     the time limit specified by the applicable collective agreement,

 

                         (ii)    30 days after the end of the month in which the employment giving rise to the payments occurred.


Offset on conversion of plan to defined contribution benefit

94   If an amendment to a pension plan with defined benefits converts the defined benefits to defined contribution benefits, the employer may offset their employer contributions made in respect of the normal cost against the amount of any surplus in the pension fund after the conversion.


Restrictions on reductions or suspensions of contributions

95   (1)    In addition to the conditions listed in Section 76 of the Act for reducing or suspending employer contributions and employee contributions for the normal cost of a pension plan, an employer or any person or entity required to make employer contributions under a pension plan must provide the members, former members and retired members of the plan with 60 days’ prior written notice of their intention to reduce or suspend employer contributions and, if applicable, employee contributions.

 

       (2)    A reduction or suspension in employer contributions or employee contributions under Section 76 of the Act must not reduce a pension plan’s surplus to less than 5% of the value of the liabilities under the plan, determined as at the valuation date of the valuation report most recently filed or submitted to the Superintendent.


Use of actuarial gain

96   (1)    If a valuation report discloses an actuarial gain under a pension plan, the actuarial gain must be applied, firstly, to reduce any going concern unfunded liability, and then may be applied as permitted under subsection (3).

 

       (2)    A going concern unfunded liability that is reduced under subsection (1) may be re-amortized over the remainder of the original amortization period for the liability or over a shorter period.

 

       (3)    Subject to subsection 95(2), in any year for which no special payments are required to be made for a pension plan, an actuarial gain may be applied to reduce employer contributions or employee contributions in respect of the normal cost of the plan.


Administrator’s or agent’s notice that contributions not paid

97   The notice required to be given by an administrator or agent to the Superintendent under subsection 78(2) of the Act when a contribution is not paid when due must be given no later than 60 days after the date the required contribution became due.


Summary of contributions

98   (1)    In this Section,

 

“summary of contributions” means the summary of contributions in an approved form for the fiscal year of a pension plan that is required to be given under subsection 79(1) of the Act to all persons who are prescribed in Section 46 for the purposes of subsection 33(5) of the Act as trustees of a pension fund.

 

       (2)    The prescribed times for giving a summary of contributions for a pension plan are

 

                (a)    for the first fiscal year of the plan, no later than 90 days after the plan is established;

 

                (b)    for each year after the first fiscal year of the plan, no later than 60 days after the beginning of the fiscal year;

 

                (c)    for a revised version of a summary of contributions prepared under subsection (3), no later than 60 days after the administrator becomes aware of the change.

 

       (3)    If there is any change to a summary of contributions, a revised version of the summary must be prepared by the administrator and provided to the pension fund trustee.

 

       (4)    The notice that a trustee is required to give the Superintendent under subsection 79(3) of the Act if the trustee does not receive the summary of contributions must be given in writing no later than 30 days after the date the summary was required to be given under subsection (2).

 

       (5)    The notice from a trustee that is required be given to the Superintendent under subsection 79(4) of the Act if a contribution is not paid when due must be given in writing no later than 60 days after the date the required contribution became due.


Special Payments—General


Minimum amount of special payments

99   (1)    Except as otherwise provided in this Section and in Sections 101, 104, 105 and 107, the special payments required to be made after the first valuation date of a valuation report must not be less than the sum of all of the following amounts, paid in the following manner and within the specified amortization periods:

 

                (a)    for a going concern unfunded liability, the amounts required to liquidate the liability, including any liability for escalated adjustments in respect of pension benefits that have accrued after the date these regulations come into force, plus interest at the going concern valuation interest rate, to be paid by equal monthly instalments over a period of no longer than 15 years;

 

                (b)    for a solvency deficiency, other than a solvency deficiency for a pension plan exempted from special payments under subsection 19(6), the amounts required to liquidate the solvency deficiency, plus interest at the solvency valuation interest rate, to be paid by equal monthly instalments over a period of no longer than 5 years.

 

       (2)    The beginning of the amortization period for special payments to liquidate a solvency deficiency or going concern unfunded liability determined for the plan in the report may be deferred to a date that is not later than 12 months after the valuation date.

 

       (3)    For a specified multi-employer pension plan, the amount required under clause (1)(a) to liquidate a going concern unfunded liability disclosed in a valuation report prepared as at a valuation date on or after January 3, 2011, must be paid by equal monthly instalments over the shorter of the following periods:

 

                (a)    10 years, beginning on the valuation date of the report;

 

                (b)    the remainder of the amortization period under which the liability was initially determined.


Interest payments required for employers who provide letter of credit

100 Unless interest payments are included in the amount of a letter of credit, an employer who provides a letter of credit is required to make interest payments with respect to the solvency deficiency, calculated at the solvency valuation interest rate.


Alternative determination of special payments for jointly sponsored pension plan

101 For a jointly sponsored pension plan, the special payments required to liquidate a going concern unfunded liability under clause 99(1)(a) or a solvency deficiency under clause 99(1)(b) may be determined, as of the date the going concern unfunded liability or solvency deficiency arose, in accordance with all of the following requirements instead of as required under clause 99(1)(a) or (b) and subsection 99(2):

 

                (a)    each scheduled payment must be a level percentage of the sum of the pensionable earnings of the members at the valuation date projected to the date when the scheduled payments are to begin and, after that date, projected annually until the end of the amortization period without taking into account any changes in the membership of the plan that may occur after the valuation date, such as from termination of employment or membership, retirement or death of members or the addition of new members;

 

                (b)    the projected pensionable earnings in clause (a) must reflect the expected decline in the projected pensionable earnings if there is reason to believe that there will be a material decline in the number of members before the end of the amortization period for the special payments;

 

                (c)    the sum of the projected pensionable earnings in clause (a) must be determined based on actuarial assumptions that are consistent with those used to project pensionable earnings in the going concern valuation;

 

                (d)    the amortization periods for each series of scheduled payments are the same as the respective periods under clauses 99(1)(a) and (b), beginning no later than 12 months after the valuation date;

 

                (e)    the present value of scheduled payments must be determined,

 

                         (i)     for payments required to liquidate a going concern unfunded liability, using the interest rate or rates used in the valuation report to determine the going concern unfunded liability, and

 

                         (ii)    for payments required to liquidate a solvency deficiency, using the interest rates used in the valuation report to determine the solvency deficiency.


Previous year credit balance

102 (1)    Except as provided in subsections (2) and (3), the previous year credit balance to be used in a valuation report or cost certificate is the amount calculated using the following formula:

 

previous year credit balance = A + B - C

 

in which

 

                A =  the previous year credit balance stated in the valuation report or cost certificate for the plan most recently filed or submitted to the Superintendent

 

                B =  the total amount of employer contributions made to the plan,

 

                         (i)     after the valuation date of the valuation report or cost certificate for the plan most recently filed or submitted to the Superintendent, and

 

                         (ii)    before the valuation date for the next valuation report or cost certificate

 

                C =  the total amount of employer contributions that would be required to have been made under Section 86 during the period used for the calculation of B if the contributions had been calculated without reference to any previous year credit balance.

 

       (2)    The previous year credit balance to be used in an initial valuation report for a pension plan under Section 52 is zero.

 

       (3)    The previous year credit balance for a valuation report, other than an initial valuation report, with a valuation date that is on or after the date these regulations come into force may be reduced to an amount that is

 

                (a)    less than the amount otherwise determined under subsection (1); and

 

                (b)    not less than zero.


Adjustment of special payments for solvency excess

103 (1)    In this Section, “solvency excess” means the amount by which the sum of the solvency assets and the solvency asset adjustment exceeds the sum of the solvency liabilities, the solvency liability adjustment and the previous year credit balance.

 

       (2)    For a valuation date after the first valuation date in relation to a pension plan, any special payments required to liquidate a solvency deficiency arising before the valuation date that are scheduled for payment after the valuation date must be adjusted in accordance with this Section.

 

       (3)    If the solvency excess is greater than or equal to the present value of the special payments required to liquidate the solvency deficiency, the special payments must be reduced to zero.

 

       (4)    If the solvency excess is less than the present value of the special payments required to liquidate the solvency deficiency, the amount of the monthly scheduled payments for the special payments must not be changed, but the amortization period or periods must be reduced so that the solvency excess is reduced to zero.


Special Payments—Temporary Exceptions


Temporary exceptions to minimum special payments—going concern unfunded liabilities

104 (1)    For the Pension Plan for Employees of Nova Scotia Power Incorporated, special payments for the initial unfunded liability as at August 10, 1992, must be made in accordance with clause 99(1)(a), except that “15 years” must be read as “30 years”.

 

       (2)    If an election was made by an administrator of a specified multi-employer pension plan under subsection 8A(3) of the former regulations, any going concern unfunded liability identified in a report filed or submitted to the Superintendent, under Section 4, 12 or 13 of the former regulations, plus interest at the going concern valuation interest rate, must be liquidated by special payments made in equal monthly instalments over the shorter of the following periods:

 

                (a)    10 years, beginning on the valuation date of the report;

 

                (b)    the remainder of the amortization period under which the liability was initially determined.


Temporary exceptions to minimum special payments—solvency deficiencies arising under former regulations

105 If, on the date these regulations come into force, special payments are being made under clause 6A(3)(a) of the former regulations to liquidate existing or new solvency deficiencies identified in the first valuation report prepared with a valuation date between December 30, 2008, and January 2, 2011, the special payments may continue in accordance with that clause instead of as required for payments that are required to liquidate a solvency deficiency under clause 99(1)(b), but the pension plan must otherwise meet the requirements of subsection 32(1) when the plan is amended.


Definitions for election to extend amortization period—Sections 107 to 116

106 In this Section and Sections 107 to 116,

 

“eligible former member” means a former member whose deferred pension or pension benefit includes a defined benefit, but does not include a former member for whom the administrator has received a notice of death;

 

“eligible member” means a member whose pension benefit includes a defined benefit, other than a member for whom the administrator has received a notice of death;

 

“eligible retired member” means a retired member whose pension or pension benefit includes a defined benefit, but does not include a retired member for whom the administrator has received a notice of death;

 

“eligible valuation date” means a valuation date that is on or after January 3, 2011, and no later than January 2, 2014;

 

“notice of objection form” means a form established by an administrator for a recipient of the form to object to extending an amortization period in accordance with Sections 107 to 116;

 

“solvency relief report” means any of the following valuation reports filed for an eligible valuation date:

 

                         (i)     a valuation report, other than an initial valuation report under Section 52, that is filed on or after February 11, 2013,

 

                         (ii)    a valuation report, other than an initial valuation report under Section 52, that is filed on or after February 11, 2013, and before February 11, 2014, to replace a valuation report that was filed before February 11, 2013, in relation to the eligible valuation date of the report being replaced.


One-time election to extend amortization period

107 (1)    Subject to subsection (2), an administrator of a pension plan that provides defined benefits may elect to liquidate the plan’s solvency deficiency under this Section instead of making special payments as required under clause 99(1)(b).

 

       (2)    An administrator cannot elect to make special payments under this Section unless all of the following conditions are satisfied:

 

                (a)    a solvency relief report is filed under these regulations;

 

                (b)    the process for making an election and objecting to an extension of the period for liquidating a solvency deficiency is conducted in accordance with this Section and Sections 108 to 114;

 

                (c)    the election is successful, in accordance with Section 113.

 

       (3)    Special payments made to liquidate a solvency deficiency under this Section must not be less than the sum of the following:

 

                (a)    the amount required to fully liquidate a new solvency deficiency determined as at an eligible valuation date, plus interest at the solvency valuation interest rate, to be paid by equal monthly instalments over a period of no longer than 15 years;

 

                (b)    the amount required to fully liquidate an existing solvency deficiency that has not been fully liquidated as at an eligible valuation date, plus interest at the solvency valuation interest rate, to be paid by equal monthly instalments over a period of no longer than 15 years.

 

       (4)    The start of the amortization period for special payments under this Section may be deferred to a date that is no later than 12 months after the eligible valuation date.


Filing election to extend amortization period

108 (1)    An administrator’s election to extend an amortization period under Section 107 must be in writing and must be filed no later than the date that the solvency relief report required by clause 107(2)(a) is filed.

 

       (2)    An administrator may elect to extend and [an] amortization period under Section 107 only once and an election cannot be rescinded.


Information statements and notices of objection to be provided for proposed election

109 (1)    An administrator who proposes to make an election to extend an amortization period under Section 107 must send all of the following persons information statements and notice of objection forms, as follows:

 

                (a)    the administrator must send an information statement and a notice of objection form to

 

                         (i)     a person who meets all of the following criteria:

 

                                  (A)   they were an eligible member on the valuation date of the solvency relief report,

 

                                  (B)   they are an eligible member, eligible former member or eligible retired member on the date the information statement and notice of objection form are sent,

 

                                  (C)   they were not represented by a collective bargaining agent on the valuation date of the solvency relief report;

 

                         (ii)    a person who meets all of the following criteria:

 

                                  (A)   they were an eligible former member or eligible retired member on the valuation date of the solvency relief report,

 

                                  (B)   they are an eligible former member or eligible retired member on the date the information statement and notice of objection form are sent,

 

                         (iii)   each collective bargaining agent that represented eligible members on the valuation date of the solvency relief report;

 

                (b)    the administrator must send an information statement only to a person who meets all of the following criteria:

 

                         (i)     the criteria in paragraphs (a)(i)(A) and (B),

 

                         (ii)    they were represented by a collective bargaining agent on the valuation date of the solvency relief report;

 

                (c)    the administrator must provide the Superintendent with a copy of the information statement and the notice of objection form at the same time that the administrator sends the statements and forms in accordance with clauses (a) and (b) and must advise the Superintendent of the date that last notice of objection form was sent.

 

       (2)    An information statement sent under subsection (1) to a person who is an eligible member, eligible for mer member or eligible retired member must be sent to the most recent address for the person in the administrator’s records for the pension plan, and must contain all of the following information:

 

                (a)    the name of the recipient and their status as an eligible member, eligible former member or eligible retired member on the valuation date of the solvency relief report;

 

                (b)    the name of the plan and its Provincial registration number;

 

                (c)    the administrator’s name and contact information;

 

                (d)    the valuation date of the solvency relief report;

 

                (e)    that the administrator is seeking the consent of eligible members, eligible former members and eligible retired members to extend the amortization period for liquidating the plan’s solvency deficiency from 5 years to a period of no longer than 15 years beginning on a date that is no later than 12 months after the valuation date;

 

                (f)    the date that is proposed for the amortization period to begin and the date that is proposed for the amortization period to end;

 

                (g)    that the extension will proceed if, according to the notices of objection received by the administrator, no more than 1/3 of the persons who were eligible members, eligible former members or eligible retired members on the valuation date of the solvency relief report and the date that the information statement was sent objected to the extension;

 

                (h)    the amount of the solvency deficiency for which the amortization period would be extended;

 

                (i)     the transfer ratio of the plan as of the valuation date;

 

                (j)     the estimated annual contributions that would be required to fund the normal cost of the plan and all special payments

 

                         (i)     if the 5-year amortization period is not extended, and

 

                         (ii)    if the amortization period is extended;

 

                (k)    an explanation of how the security of the pension benefits and ancillary benefits for eligible members, eligible former members and eligible retired members might be affected as a result of the election;

 

                (l)     for a recipient who is an eligible member, whether they were represented by a collective bargaining agent on the valuation date of the solvency relief report;

 

                (m)   for a recipient who was an eligible member represented by a collective bargaining agent on the valuation date of the solvency relief report, a statement that the collective bargaining agent will consent or object to the extension on behalf of the recipient;

 

                (n)    for a recipient who, on the valuation date of the solvency relief report, was an eligible member not represented by a collective bargaining agent, an eligible former member or an eligible retired member, a statement that the person may object to the extension by completing and submitting the provided notice of objection form.

 

       (3)    An information statement sent under subsection (1) to a collective bargaining agent must contain all of the following information:

 

                (a)    the information required for an information statement to members in clauses (2)(b) to (j);

 

                (b)    a statement that the collective bargaining agent may object to the extension of the amortization period on behalf of all persons who meet all of the following criteria, by submitting the provided notice of objection form:

 

                         (i)     they were eligible members on the valuation date of the solvency relief report,

 

                         (ii)    they were represented by the collective bargaining agent on the valuation date of the solvency relief report,

 

                         (iii)   they were eligible members, eligible former members or eligible retired members on the date the information statement was sent;

 

                (c)    the number of persons who meet all of the criteria in clause (b).

 

       (4)    A notice of objection form sent under subsection (1) must include all of the following information:

 

                (a)    the name of the pension plan and its Provincial registration number;

 

                (b)    the name of the administrator;

 

                (c)    the address where the notice of objection form must be sent;

 

                (d)    for a notice of objection to be used by a collective bargaining agent, the number of persons on behalf of whom the agent is consenting or objecting who meet the criteria in clause (3)(b);

 

                (e)    a statement objecting to the extension of the amortization period for liquidating the plan’s solvency deficiency from 5 years to a period of no longer than 15 years beginning on a date that is no later than 12 months after the valuation date;

 

                (f)    the last date that the administrator will accept notices of objection, in accordance with subsection (5).


Last date for accepting notices of objection

110 The administrator must set a date that is no earlier than 45 days after the date they send the last information statement as the last date that notices of objection will be accepted.


Administrator to keep notices of objection

111 An administrator must keep all notices of objection they receive until at least the date that the solvency deficiency is liquidated, and must provide copies of the notices to the Superintendent on request.


Prohibition against identifying persons who submit notices of objection

112 A notice of objection and the process for objecting to an extension of the period for liquidating a solvency deficiency under this Section must not enable an administrator to identify any person who submits a notice of objection.


Successful election to extend amortization period

113 An administrator’s election to extend the amortization period under Section 107 is successful if the administrator receives notices of objection that represent objections from not more than 1/3 of the total number of persons who meet all of the following criteria:

 

                (a)    they were eligible members on the valuation date of the solvency relief report;

 

                (b)    they were eligible members, eligible former members or eligible retired members on the date the information statement was sent.


Certificate of consent to election

114 (1)    An administrator whose election is successful in accordance with Section 113 must file a certificate of consent containing the information in subsection (2) no later than 60 days after the date the solvency relief report for the pension plan is filed.

 

       (2)    A certificate of consent must contain all of the following information:

 

                (a)    the total number of persons who meet the criteria set out in clauses 113(a) and (b);

 

                (b)    the number of persons described in clause (a) who

 

                         (i)     submitted notices of objection to the extension, or

 

                         (ii)    were represented by a collective bargaining agent that submitted a notice of objection to the extension on their behalf;

 

                (c)    confirmation that the number of notices of objection received by the administrator represents objections from no more than 1/3 of the total number of persons described in clause (a).


Notice of extension of amortization period to members

115 (1)    No later than the final date for filing the certificate of consent under subsection 114(1) for a successful election, an administrator must send a notice of the extension of the amortization period containing all of the information required by subsection (2) to all of the following:

 

                (a)    each person who is an eligible member, eligible former member or eligible retired member on the date the notice of extension is sent;

 

                (b)    each collective bargaining agent that represents eligible members on the date the notice of extension is sent.

 

       (2)    A notice of extension required by subsection (1) must contain all of the following information:

 

                (a)    the name of the pension plan and its and Provincial registration number;

 

                (b)    the administrator’s name and contact information;

 

                (c)    the valuation date of the solvency relief report in which the solvency deficiency was determined;

 

                (d)    the length of the extended amortization period elected for liquidating the solvency deficiency;

 

                (e)    the transfer ratio of the pension plan as of the valuation date of the solvency relief report;

 

                (f)    an explanation of how the security of the pension benefits and ancillary benefits for eligible members, eligible former members and eligible retired members might be affected as a result of the election;

 

                (g)    the estimated annual contributions that would have been required to fund the normal cost of the pension plan and all special payments if no extension of the amortization period had been made;

 

                (h)    for members represented by a collective bargaining agent on the valuation date of the solvency relief report, confirmation that the collective bargaining agent objected or chose not to object on their behalf;

 

                (i)     confirmation that the number of notices of objection to the extension received by the administrator represents objections to the extension from 1/3 or less of the total eligible members, eligible former members and eligible retired members who were sent information statements under subsection 109(1).


Progress report on special payments under extended amortization period

116 (1)    After a successful election in accordance with Section 113, an administrator must send progress reports concerning the liquidation of the solvency deficiency in each fiscal year of the pension plan beginning with the year in which the first special payment is made in accordance with subsection 107(4) and continuing until the solvency deficiency has been liquidated.

 

       (2)    A progress report required by subsection (1) must be sent no later than 6 months after the end of the fiscal year of the pension plan to all of the following:

 

                (a)    each person who is an eligible member, eligible former member or eligible retired member on the day the progress report is sent;

 

                (b)    each collective bargaining agent that represents eligible members on the day the progress report is sent.

 

       (3)    A progress report required by subsection (1) must contain all of the following information:

 

                (a)    all of the information required for a notice of extension in clauses 115(2)(a) to (f);

 

                (b)    the valuation date of the valuation report most recently filed or submitted to the Superintendent;

 

                (c)    the transfer ratio of the pension plan as of the valuation date of the most recently filed or submitted valuation report in which the transfer ratio was determined;

 

                (d)    the estimated annual contributions required to fund the normal cost of the pension plan and all special payments set out in the report referred to in clause (c).

 

       (4)    A progress report under this Section may be included in the annual statement to members for the same fiscal year of the pension plan.


Letters of Credit


Prescribed requirements for letters of credit

117 The requirements prescribed for a letter of credit under subsection 77(2) of the Act are as set out in Sections 118 to 124 and Schedule 2: Letters of Credit.


Prescribed employers

118 All employers who are required to make contributions to a defined benefit plan that is not a multi-employer pension plan are prescribed as employers which may provide a letter of credit to a prescribed entity in the circumstances described in subsection 77(1) of the Act.


Prescribed person or entity provided letter of credit

119 The trustee of a pension fund that is administered under a trust described in clause 46(1)(c) is prescribed as a person or entity to whom a letter of credit may be provided under subsection 77(1) of the Act by a prescribed employer.


Determining solvency liabilities for subsection 77(3) of Act

120 For the purpose of determining the amount that constitutes 15% of the solvency liabilities of a pension plan in subsection 77(3) of the Act, the solvency liabilities of the plan must be determined as of the valuation date of the valuation report most recently filed or submitted to the Superintendent.


Deadlines for providing letters of credit

121 (1)    If a letter of credit relates to special payments described in clause 99(1)(b), the prescribed periods for providing the letter of credit under subsection 77(5) of the Act are as follows:

 

                (a)    at least 15 days before the date that the first scheduled payment of the special payments the letter relates to is due;

 

                (b)    for a letter of credit that is amended, at least 15 days before the date that any amendment takes effect;

 

                (c)    subject to subsection (2), for a letter of credit that is being renewed, at least 15 days before the date that the letter of credit would have expired;

 

                (d)    for a letter of credit that is replacing a previous letter of credit, at least 15 days before the date that the previous letter of credit expires.

 

       (2)    If a letter of credit is being renewed, the employer may provide notice of the renewal to the trustee, and a copy of the notice to the issuer, at least 15 days before the date that the letter would have expired instead of providing the letter of credit in accordance with clause (1)(c).

 

       (3)    The notice to the Superintendent required by subsection 77(6) of the Act must be provided no later than 5 days after the administrator receives a copy of a letter of credit and must include all of the following:

 

                (a)    a certified copy of the letter of credit;

 

                (b)    a certificate indicating whether the letter of credit satisfies the requirements of the Act, these regulations and the federal Income Tax Act.


When trustee must demand payment of amount of letter of credit

122 (1)    All of the following are prescribed as the circumstances under which a trustee who holds a letter of credit in trust for a pension plan must demand payment of the amount of the letter of credit into the pension fund as required by subsection 77(8) of the Act:

 

                (a)    the letter of credit does not satisfy the requirements of the Act, these regulations or the federal Income Tax Act;

 

                (b)    the administrator gives written notice to the trustee under subsection 92(4) of the Act that the employer intends to wind-up the plan;

 

                (c)    the Superintendent issues an order under subsection 93(1) of the Act requiring the wind-up of the plan;

 

                (d)    the employer is subject to bankruptcy proceedings under the Bankruptcy and Insolvency Act (Canada);

 

                (e)    an application or petition has been filed under the Winding-up and Restructuring Act (Canada) by the employer or against the employer;

 

                (f)    the trustee is required to demand payment under the terms of an agreement under Section 9 of the Act between the Crown and a designated jurisdiction whose pension benefits legislation applies to the plan;

 

                (g)    the trustee is otherwise required to demand payment of the amount of the letter credit under the terms of the trust agreement related to the letter of credit.

 

       (2)    If an issuer of a letter of credit does not pay the amount of the letter of credit into a pension fund upon receiving the trustee’s demand, the employer must

 

                (a)    immediately pay an amount corresponding to the amount of the letter of credit into the pension fund; and

 

                (b)    give the Superintendent written notice that the issuer has not paid the amount of the letter of credit.


Notification by trustee if payment demanded under letter of credit

123 If a trustee demands payment of the amount of a letter of credit, the trustee must promptly notify all of the following:

 

                (a)    the administrator;

 

                (b)    the employer;

 

                (c)    the Superintendent.


Notification by trustee if issuer of letter of credit fails to pay on demand

124 If the issuer of a letter of credit does not pay the amount of the letter of credit after the trustee demands payment, the trustee must promptly notify all of the following:

 

                (a)    the administrator;

 

                (b)    the employer;

 

                (c)    the Superintendent.


Part 4: Membership, Benefits and Interest


Pension Plan Membership


Prescribed classes of employees

125 (1)    The following are the prescribed classes of employees for the purposes of Section 45 of the Act:

 

                (a)    employees who are paid a salary;

 

(b)    employees who are paid on an hourly basis;

 

                (c)    employees who are members of a trade union;

 

                (d)    employees who are not members of a trade union;

 

                (e)    supervisory employees;

 

                (f)    management employees;

 

                (g)    except as provided in subsection (3),

 

                         (i)     executive employees,

 

                         (ii)    employees who are officers of the employer,

 

                         (iii)   employees who are significant shareholders of the employer;

 

                (h)    persons who fall within clause (c) or (d) and also any of clauses (a) or (b) or (e) to (g);

 

                (i)     employees who belong to an identifiable group of employees that the Superintendent considers acceptable.

 

       (2)    Different employers in a multi-employer pension plan may have different prescribed classes of employees covered by the plan for the purposes of Section 45 of the Act.

 

       (3)    A pension plan in which the only member is an individual employee who falls within a class described in clause (1)(g) is exempt from Section 45 of the Act, and the employee must be treated for the purposes of the Act and these regulations as not falling within that class.


Variations and Reductions for CPP, QPP and OAS


Variation of pension benefits for CPP or QPP entitlements

126 (1)    Except as provided in subsection (2), if a pension plan provides that a pension benefit may be varied as the result of the recipient’s entitlement to a retirement pension under the CPP or QPP without specifying the age at which the variation is to occur, the plan is deemed to provide that the variation occurs when the member turns 65 years old.

 

       (2)    Subsection (1) does not apply to a pension plan that is amended on or after January 1, 1988, to establish a specific age or to provide for the occurrence of a specific event for variation of the pension benefit before the recipient turns 65 years old.

 

       (3)    A pension plan that provides that a pension benefit may be varied as the result of the recipient’s entitlement to a retirement pension under the CPP or QPP before turning 65 years old must take into account the adjustment made to the retirement pension under the CPP or the QPP.


Calculating reduction when integrating retirement benefits with CPP, QPP and OAS

127 The following formulas are prescribed for calculating the maximum amount by which a pension or deferred pension may be reduced under Section 73 of the Act in relation to benefits under the CPP, QPP or OAS:

 

                (a)    for a pension plan that reduces a deferred pension or pension to take into account the benefits payable from CPP or QPP, the maximum amount is calculated by the following formula:

 

maximum reduction = P × (Y ÷ 35)

 

in which

 

                         P =   the amount of pension that would be payable to the person under the CPP or QPP, if the person had participated fully in the CPP or QPP, calculated

 

                                  (i)     as of the date the person’s employment or plan membership is terminated, and

 

                                  (ii)    as if the person had turned 65 years old on the date of termination

 

                         Y =   the number of years, including parts of a year, of employment credited to the person under the plan, to a maximum of 35;

 

                (b)    for a pension plan that reduces a pension or deferred pension based on a person’s entitlement under the OAS in respect of a benefit accrued before January 1, 1988, the maximum amount is calculated by the following formula:

 

maximum reduction = P × (Y ÷ 35)

 

in which

 

                         P =   the amount of pension payable under the OAS, calculated as of the date of the person’s employment or plan membership is terminated

 

                         Y =   the number of years, including parts of a year, of employment credited to the person under the plan before January 1, 1988, to a maximum of 35 years.


Reduction of bridging benefits

128 (1)    For the purposes of subsection 73(6) of the Act, a member’s, former member’s or retired member’s bridging benefit must not be reduced because the member, former member or retired member is eligible or entitled to receive actuarially reduced payments under the CPP, QPP or OAS before they turn 65 years old.

 

       (2)    Except as provided in subsection (3), if a pension plan provides for a bridging benefit without specifying the age at which the benefit is reduced or ceases, the plan is deemed to provide that the benefit is reduced or ceases when the member turns 65 years old.

 

       (3)    Subsection (2) does not apply to a pension plan that is amended on or after January 1, 1988, to specify that the bridging benefit is reduced or ceases in any of the following circumstances:

 

                (a)    on the date the member, former member or retired member reaches a specified age that is younger than 65 years old.

 

                (b)    on the date that a specified event occurs.


Application for withdrawal from pension plan in circumstances of shortened life expectancy

129 (1)    The circumstances of shortened life expectancy prescribed for the purposes of subsection 69(2) of the Act are that the former member has an illness or physical disability that is likely to shorten their life expectancy to less than 2 years.

 

       (2)    All of the following are prescribed as the conditions to be satisfied for a pension plan to be deemed to permit variation in the terms of payment of a deferred pension under subsection 69(2) of the Act:

 

                (a)    an application must be made to the administrator for withdrawing the commuted value of the former member’s deferred pension from the plan;

 

                (b)    the application must be signed by the former member and accompanied by all of the following documents:

 

                         (i)     a statement signed by a physician that, in the physician’s opinion, the former member has an illness or physical disability that is likely to shorten their life expectancy to less than 2 years,

 

                         (ii)    a declaration about a spouse in accordance with Section 214, with the following changes in detail:

 

                                  (A)   “owner” must be replaced with “former member”,

 

                                  (B)   “LIRA or LIF” must be replaced with “deferred pension”,

 

                                  (C)   “financial institution” must be replaced with “administrator”.

 

       (2)    When the administrator receives a document required by this Section, the administrator must give the former member a receipt for the document stating the date that it was received.


Deferred pension under pension plan insured by individual level-premium contracts issued before qualification date

130 Despite Section 52 or 53 of the Act, a deferred pension that is provided under a pension plan insured by individual level premium contracts may, for an individual level premium contract issued before the qualification date, be equal to the paid up annuity under the contract arising from contributions made with respect to employment on or after the qualification date if any special payments required with respect to the deferred pension insured by the contract have all been paid or will continue to be paid.


Portion of benefits attributable to employment after January 1, 1988—final average or best average earnings plans

131 For a pension plan that provides a pension benefit based on a member’s rate of remuneration on the date the member terminates employment, or based on an average of the member’s rates of remuneration over a specified or limited time period up to the date the member terminates employment, the portion of the member’s pension benefit attributable to employment after January 1, 1988, for the purposes of Section 55 of the Act, must be calculated in accordance with the following formula:

 

portion attributable = A - B

 

in which

 

       A =   the pension benefit

 

       B =   the pension benefit calculated in accordance with the terms of the plan at December 31, 1987, using the member’s rate of remuneration as of the date of termination of employment or the average of the member’s rates of remuneration over the specified or limited time period, as the case may be.


Death Benefit Entitlements


Exercising entitlement to pre-retirement death benefit under subsection 67(1) or (2) of Act

132 (1)    To exercise their entitlement under 67(1) or (2) of the Act, a spouse must deliver a direction to the administrator no later than 90 days after the date they receive the death benefits statement referred to in Section 78.

 

       (2)    An administrator must comply with an election delivered under subsection (1) no later than 60 days after the date it is received.


Exemption from reduction in pre-retirement death benefit entitlement

133 Subsection 67(15) of the Act permitting reductions in pre-retirement death benefit entitlements does not apply to pension plans that provide defined contribution benefits.


Offset in relation to pre-retirement death benefits

134 (1)    The amount of a group life insurance policy payment payable on the death of a member, former member or retired member, that is attributable to the amount paid by employer premiums under the policy is prescribed as an additional benefit, the amount of which may be used under subsection 67(15) of the Act to reduce a pre-retirement death benefit under that Section.

 

       (2)    A reduction made in relation to a group life insurance policy payment under subsection (1) must not be made unless the group life insurance policy provides for payment of the insurance payment to the spouse of a member, former member or retired member, if there is a spouse at the date of death, and the spouse has not waived the insurance payment.

 

       (3)    For the purposes of subsection 67(15) of the Act, the limit that a reduction made in relation to a group life insurance policy payment under subsection (1) must not exceed is

 

                (a)    the amount of the group life insurance payment multiplied by the ratio, averaged over a period of 5 years or less, of the employer-paid cost of the group life insurance policy to the total cost of the policy for the relevant class of employees, taking into account in both the numerator and the denominator the ratio of any experience or other refunds;

 

                (b)    for a pension plan that provides contributory benefits, an amount that reduces the pre-retirement death benefit entitlement under Section 67 of the Act to less than the aggregate of the member’s required employee contributions plus interest under that Section.

 

       (4)    When calculating a reduction made in relation to a group life insurance policy payment under subsection (1), the actuarial present value of the reduction must not exceed the amount of the payment under the group life insurance policy.


Commuted Value and Limits on Transfers


Commuted value of pension benefits and ancillary benefits for transfer

135 (1)    Except as provided in subsection (3), the commuted value of a former member’s deferred pension for transfer under subsection 61(1) of the Act must not be less than the value determined in accordance with Section 3500 of the Canadian Institute of Actuaries Standards of Practice.

 

       (2)    If the commuted value of a deferred pension is calculated on a basis that produces a commuted value higher than the minimum value calculated on the basis prescribed under subsection (1), an administrator must not make any transfer calculated on the higher basis until the administrator files a statement describing in detail the basis for calculating the commuted value.

 

       (3)    Subsection (1) does not apply to a pension plan that is being wound up.

 

       (4)    Other than for the purposes of subsection 61(1) of the Act or Section 177, the commuted value of a pension, deferred pension or ancillary benefit must be calculated using methods and actuarial assumptions that are consistent with accepted actuarial practice.


Calculating portion of commuted value available for transfer

136 The portion of the commuted value of a deferred pension that may be transferred from a pension plan as of a given date must be calculated by multiplying the commuted value determined in accordance with subsection 135(1) or (2) by the lesser of the following:

 

                (a)    the most recently determined transfer ratio for the pension plan;

 

                (b)    one.


Limits on transferring commuted value of pension benefits

137 (1)    Except as otherwise provided in this Section or Section 139, and subject to subsection 61(11) of the Act, an administrator may transfer the commuted value of a pension, deferred pension or ancillary benefit in accordance with the following Sections only if the transfer ratio of the pension plan is equal to or greater than 1:

 

                (a)    Section 61 of the Act respecting the transfer of a former member’s deferred pension;

 

                (b)    Section 62 of the Act respecting the purchase of a pension, deferred pension or ancillary benefit from an insurance company;

 

                (c)    Section 67 of the Act respecting the payment of a pre-retirement death benefit;

 

                (d)    Section 74 of the Act respecting the division of a pension entitlement between spouses.

 

       (2)    Without the approval of the Superintendent under subsection 61(11) of the Act, which must be made prior to the transfer, a transfer of the commuted value of a pension benefit may not be made under Section 61 of the Act under any of the following circumstances:

 

                (a)    the transfer ratio of a pension plan is equal to or greater than 1 and the administrator knows or ought to know that events have taken place since the valuation date of the most recently filed or submitted valuation report for the plan that may result in the transfer ratio being reduced to a value less than 0.9;

 

                (b)    the transfer ratio of a pension plan is less than 1 and the administrator knows or ought to know that events have taken place since the valuation date of the most recently filed or submitted valuation report for the plan that may result in the transfer ratio being reduced by 10% or more of the most recently determined transfer ratio.

 

       (3)    Despite clause (2)(b), if the transfer ratio of a pension plan is less than 1, an administrator may transfer 100% of the commuted value of a pension, deferred pension or an ancillary benefit under the Act without the approval of the Superintendent if any of the following conditions are met:

 

                (a)    the administrator is satisfied that an amount equal to the transfer deficiency has been remitted to the pension fund;

 

                (b)    the aggregate of transfer deficiencies for all transfers made since the last review date does not exceed 5% of the assets of the plan at the time.


Balance of transfer if less than 100% of commuted value transferred

138 (1)    If less than 100% of the commuted value of a pension, deferred pension or ancillary benefit is transferred out of a pension plan, the balance must be transferred by the administrator no later than 5 years after the date of the initial transfer.

 

       (2)    Interest accumulates on any balance to be transferred under subsection (1) at the same rate used to calculate the commuted value of the pension, deferred pension or ancillary benefit.

 

       (3)    Any transfer made under subsection (1) after the initial transfer must be made only if the conditions in clauses 137(3)(a) or (b) are met.


Exemptions to limits on transfers

139 Sections 136 to 138 do not apply to any transfers of the following:

 

                (a)    amounts transferred under a reciprocal transfer agreement that is filed;

 

                (b)    the commuted value of a joint and survivor pension payable under subsection 63(7) of the Act;

 

                (c)    the commuted value of a pension benefit payable under subsection 70(1) of the Act.


Benefits that result from voluntary contributions for past service

140 For the purposes of benefits excluded from the determination of the commuted value of a deferred pension or pension in respect of contributory benefits accrued after January 1, 1988, under Section 55 of the Act, “benefits that result from voluntary contributions for past service” in clause 55(8)(d) of the Act means benefits credited to a member as a result of the member’s election to make voluntary contributions in order to purchase pension benefits relating to a period of employment before the date that the member made the election.


Reciprocal transfer agreement—50% rule

141 The 50% limitation on the commuted value of a pension or deferred pension in subsection 55(3) of the Act does not apply to contributions for the purpose of calculating the commuted value for a transfer of money or credits from one pension plan to another plan in accordance with a reciprocal transfer agreement.


Entitlement to excess amount of commuted value of converted benefits

142 If an amendment to a pension plan with defined benefits converts them to defined contribution benefits, a member who elects to convert their defined benefits in accordance with the amendment is entitled to require the administrator to pay to the member that portion of the amount of the commuted value of the defined benefits that exceeds the amount prescribed in the federal Income Tax Regulations for converting defined benefits to defined contribution benefits.


Additional prescribed ancillary benefits

143 Any amounts paid to a retired member’s surviving spouse in excess of the amount required to be paid to the surviving spouse under subsection 63(3) of the Act are prescribed as ancillary benefits for purposes of Section 58 of the Act.


Bridging benefits not taken into account

144 A bridging benefit is not required to be taken into account when calculating any of the following:

 

                (a)    the amount of a joint and survivor pension under subsection 63(3) of the Act;

 

                (b)    the commuted value of a deferred pension or pension in relation to a pre-retirement death benefit under Section 67 of the Act.


Phased Retirement Option


Definition of phased retirement option

145 In Sections 146 and 147,

 

“phased retirement option” means a phased retirement option under Section 51 of the Act for a pension plan that provides defined benefits.


Application for phased retirement option

146 (1)    The prescribed time period for an administrator to provide information about any phased retirement option as required by subsection 51(12) of the Act is no later than 30 days after the date the information is requested.

 

       (2)    In addition to the requirements in Section 51 of the Act, an application by a member to participate in a phased retirement option must be made in writing, signed and dated by the applicant, and delivered to the administrator, and must include all of the following:

 

                (a)    the information in clauses 74(2)(a), (b) and (c), and clause 51(2)(e) of the Act;

 

                (b)    confirmation that the written agreement entered into between the member and their employer under clause 51(2)(c) of the Act governing the employment arrangements relating to the phased retirement option for the member and governing payments under the phased retirement option satisfies the requirements of these regulations and of subsection 8503(19) of the federal Income Tax Regulations; and

 

                (c)    a copy of the written agreement entered into between the member and their employer under clause 51(2)(c) of the Act.

 

       (3)    The prescribed time period for an administrator to approve an application under subsection 51(3) of the Act that satisfies the requirements of the Act and these regulations is no later than 60 days after the date they receive the application.


Participation in phased retirement option

147 (1)    The circumstances to which subsection 8503(19) of the federal Income Tax Regulations applies are prescribed as the manner in which a member continues to accrue benefits during participation in a phased retirement option for purposes of subsection 51(5) of the Act.

 

       (2)    When payments under a phased retirement option begin, a member’s regular hours of work may not be reduced by more than the number of hours determined in accordance with the following formula:

 

maximum reduction = A - B

 

in which

 

                A =  the number of regular hours or work the member was working immediately before entering into a written agreement referred to in clause 51(2)(c) of the Act

 

                B =  the number of hours of work represented by the maximum amounts payable to the member as phased retirement benefits under the federal Income Tax Regulations.

 

       (3)    If a member’s participation in a phased retirement option is deemed to have ended under subsection 51(10) of the Act because the member dies, the member is deemed to have retired immediately before the date of death for purposes of a joint and survivor pension under Section 63 of the Act, and that Section applies when determining any pension entitlement of a surviving spouse or other beneficiary.


Variable Pension Benefits


Definitions for Sections 149 to 151

148 In this Section and Sections 149 to 151,

 

“defined contribution account” of a member or former member means the portion of their pension benefit that is attributable to a pension plan’s defined contribution provisions and that has not been transferred or credited to their variable benefits account;

 

“specified beneficiary” means an individual who is a specified beneficiary under subsection 8506(8) of the federal Income Tax Regulations in relation to a member or former member under their pension plan’s defined contribution provisions;

 

“variable benefits account” of a member or a former member means an account established under a pension plan’s defined contribution provisions to be used for providing variable benefits to the member or former member for whom it is established, or to their beneficiary;

 

“variable benefits participant” for a variable benefits account, means

 

                         (i)     the member or former member for whom the account is established, or

 

                         (ii)    after the member’s or former member’s death, any specified beneficiary in whose name the pension plan permits the variable benefits account to continue;

 

“variable pension benefits” means pension benefits that are provided for by a pension plan with defined contribution provisions that provide for the payment of variable benefits referred to in clause 8506(1)(e.1) of the federal Income Tax Regulations.


Pension plan provisions for variable pension benefits

149 (1)    A pension plan that provides for variable pension benefits, in accordance with Section 56 of the Act, must include all of the following provisions:

 

                (a)    all or any part of a member’s defined contribution account may be transferred to their variable benefits account, in accordance with Sections 150 and 151 and the provisions of the plan;

 

                (b)    only a member or former member who has reached the early retirement age under the plan’s defined contribution provisions may elect to transfer their defined contribution account to a variable benefits account;

 

                (c)    if a member or former member has a spouse, none of the member’s or former member’s defined contribution account may be transferred to their variable benefits account unless their spouse has consented to the transfer in accordance with subsection 150(2);

 

                (d)    a variable benefits participant is deemed not to have started receiving a pension with respect to any amount in the defined contribution account that is not transferred to the variable benefits account;

 

                (e)    in accordance with Section 87 of the Act, the balance in a member’s or former member’s variable benefits account must be administered as locked-in money under the Act before and after the money is transferred and until it is paid out in accordance with the Act and these regulations;

 

                (f)    the variable pension benefits payable to a member or former member for a calendar year must not be

 

                         (i)     less than the minimum amount determined for the year under subsection 8506(5) of the federal Income Tax Regulations,

 

                         (ii)    more than the maximum amount determined for the year under the plan’s provisions for determining the maximum amount in accordance with Section 151;

 

                (g)    no later than 60 days after the date the variable benefits participant receives the annual statement required by Section 75, the participant may notify the administrator in writing of the amounts to be paid as variable pension benefits, and the frequency and method of payment to be made

 

                         (i)     during the current year, or

 

                         (ii)    if the rate of return for the participant’s variable benefits account is guaranteed by the plan for longer than 1 year, during any period within the period that it is guaranteed for;

 

                (h)    subject to the minimum and maximum referred to in clause (f), the variable benefits participant may notify the administrator in writing at any time of an increase or decrease in the amounts to be paid as variable pension benefits in the year;

 

                (i)     the amounts to be paid and the frequency and method of payment will be as set out in the latest annual statement provided to the variable benefits participant under Section 75 if the administrator is not notified of the amounts and frequency as permitted by clause (g);

 

                (j)     subject to subsection (2), after the death of the member or former member, the balance of the variable benefits account must be paid to any person to whom pre-retirement death benefits are to be paid under Section 67 of the Act, and in the manner in which the pre-retirement death benefits are to be paid under that Section;

 

                (k)    the spouse of the variable benefits participant may waive the spouse’s entitlement under clause (j) to the balance of the variable benefits account, in accordance with Section 68 of the Act;

 

                (l)     a transfer from a variable benefits account may be made at any time;

 

                (m)   a variable benefits participant may only transfer all or any part of the balance of their variable benefits account in accordance with the requirements for transferring the commuted value of a deferred pension under Section 61 of the Act and subject to the federal Income Tax Act;

 

                (n)    a variable benefits participant who transfers any or all of the balance of the variable benefits account is entitled to the same rights under Section 61 of the Act as a former member who has terminated employment and, for that purpose, subsection 61(4) of the Act does not apply to the transfer.

 

       (2)    A pension plan may provide for a deceased member’s or former member’s variable benefits pension to continue to be paid after their death to their surviving spouse, if the spouse meets all of the following:

 

                (a)    the spouse is a specified beneficiary of the deceased member or former member;

 

                (b)    the spouse elects to continue receiving the variable pension benefits instead of requiring the benefits to be paid or transferred as provided for in the plan.


Additional transfers to, and transfer from, variable benefits account

150 (1)    Subject to subsection (2), a pension plan that provides for variable pension benefits may provide that a member or former member may transfer any of the following amounts or assets to their variable benefits account, to the extent permitted by or under the federal Income Tax Act:

 

                (a)    any amount transferred as a former member under clause 61(1)(a) of the Act;

 

                (b)    any amount transferred because of a division between spouses of any pension entitlement under Section 74 of the Act;

 

                (c)    the assets in a LIRA;

 

                (d)    the assets in a LIF.

 

       (2)    A member or former member must have the written consent of their spouse, in an approved form, to make a transfer under subsection (1), unless 1 of the following applies:

 

                (a)    the spouse is living separate and apart from the member or former member on the date of the transfer with no reasonable prospect of resuming cohabitation;

 

                (b)    the money to be transferred into the variable benefits account is not derived, directly or indirectly, from a pension benefit provided in respect of any employment of the member or former member.

 

       (3)    An administrator must not transfer all or any part of the balance of a variable benefits account unless the transfer is made in accordance with the requirements for transferring the commuted value of a deferred pension under Section 61 of the Act.


Maximum amount of variable pension benefits payable

151 (1)    A pension plan’s provisions for determining the maximum amount of variable pension benefits payable in a calendar year must provide that the maximum amount payable is the greatest of the amount determined by the following formula:

 

maximum payable = F × (B + T)

 

in which

 

                F =   the factor from the table in Schedule 5: Life Income Fund—Factor F for the reference rate for the calendar year and the variable benefits participant’s age at the end of the immediately previous year

 

                B =  the balance of the variable benefits account at the beginning of the calendar year

 

                T =   the total of

 

                         (i)     all of the amounts transferred to the variable benefits account in the calendar year, other than amounts transferred directly or indirectly from a LIF or another variable benefits account, and

 

                         (ii)    the minimum amount determined for the year under subsection 8506(5) of the federal Income Tax Regulations.

 

       (2)    If the initial year of the variable benefits account is less than 12 months long, the maximum amount determined under subsection (1) must be adjusted in proportion to the number of months in the initial year divided by 12, with any part of an incomplete month counting as 1 month.


Optional Benefits


Optional benefits prescribed

152 Enhanced benefits under a defined benefit provision in a pension plan that meet all of the following criteria are prescribed for the purpose of Section 59 of the Act as optional benefits:

 

                (a)    they are elected by a member, former member or retired member, or the spouse of the member, former member or retired member;

 

                (b)    they are funded either fully or partially through optional contributions provided by the member.


Interest


Definitions for crediting interest on contributions—Sections 154 to 158

153 (1)    In Sections 154 to 158,

 

“bank deposit rate” means, as of a particular date, the rate calculated

 

                         (i)     on the basis of the average of the yields of 5-year personal fixed-term chartered bank deposit rates, as determined from the Canadian Socio-Economic Information Management System (CANSIM) series V122515 compiled by Statistics Canada, and available on the website maintained by the Bank of Canada, and

 

                         (ii)    over a reasonably recent period so that the averaging period is not longer than 12 months;

 

“pension fund rate of return” means, as of a particular date in relation to a contribution to a pension plan, the rate of return, averaged over a reasonably recent period of no longer than 12 months, that can reasonably be attributed to the operation of the pension fund or to the part of the pension fund to which the contribution is made.

 

       (2)    This Section and Sections 154 to 158 apply with respect to contributions made

 

                (a)    before January 1, 1988, that remain in the pension fund; or

 

                (b)    on or after January 1, 1988.


When contribution interest accrues

154 Interest on contributions under Sections 155 to 158 begins to accrue no later than

 

                (a)    the first day of the month after the month in which the contribution is required to be paid into the pension fund; or

 

                (b)    for additional voluntary contributions or optional contributions, no later than the first day of the month after the month in which the contribution is paid into the pension fund.


Interest rates for defined contribution pension plan

155 (1)    The rates at which interest on contributions must be credited under subsection 81(2) of the Act, for contributions, additional voluntary contributions or optional contributions made by or on behalf of members, former members and retired members to the pension fund of a pension plan that provides defined contribution benefits, are as set out in the following table and credited at least annually:


Type of Contribution

Calculation of Interest Rate

contributions, other than additional voluntary contributions and optional contributions

   at a rate that is not less than the pension fund rate of return, or

   for pension benefits that are guaranteed by an insurance company, at a rate that is not less than the bank deposit rate

additional voluntary contributions or optional contributions

   at a rate that is not less than the pension fund rate of return

 

       (2)    When crediting interest on contributions, additional voluntary contributions or optional contributions made during a pension plan’s fiscal year, an administrator may use the pension fund rate of return for the fiscal year determined in accordance with the table in subsection (1) instead of the rate in effect when the interest accrued.


Interest rates for defined benefit pension plan

156 (1)    The rates at which interest on contributions must be credited under subsection 81(2) of the Act, for contributions, additional voluntary contributions or optional contributions made by or on behalf of members, former members or retired members to the pension fund of a pension plan that provides defined benefits, are as set out in the following table and credited at least annually:


Type of Contribution

Calculation of Interest Rate

contributions, other than additional voluntary contributions and optional contributions

   at a rate that is not less than the bank deposit rate or, if provided for in the plan, not less than the pension fund rate of return, or

   for pension benefits that are guaranteed by an insurance company, at a rate that is not less than the bank deposit rate

additional voluntary contributions or optional contributions

   at a rate of return that can be reasonably attributed to the operation of the pension fund or to the part of the pension fund to which the contributions are made

 

       (2)    When crediting interest on contributions, additional voluntary contributions or optional contributions made during a pension plan’s fiscal year, an administrator may use an average rate for the fiscal year determined in accordance with the table in subsection (1) instead of the rate in effect when the interest accrued.


Interest for pension plans that provide both defined contribution benefits and defined benefits

157 For a pension plan that provides both defined benefits and defined contribution benefits, the rate at which interest must be credited under subsection 81(2) of the Act is the rate determined in accordance with Section 155 or 156 for the applicable type of benefit.


Interest rate on termination of employment or membership

158 Upon the termination of employment or membership of a member, the rates at which interest must be credited under subsection 81(2) of the Act on any contributions made by or on behalf of the member during that fiscal year of the pension plan is the rate most recently calculated in accordance with Section 155, 156 or 157, credited to at least the month that the member’s employment or membership was terminated.


Interest on lump sum payments

159 (1)    The rate at which interest must be credited on a lump sum to be paid to a person from a pension plan is the same rate that is used to calculate interest on contributions to the plan made by members and former members.

 

       (2)    The interest in subsection (1) accrues from the date of termination of employment or membership in the plan until the beginning of the month in which the lump sum is paid.


Interest on commuted value of former member’s deferred pension

160 (1)    The rate at which interest must be credited on the commuted value of a former member’s deferred pension payable under Section 61 of the Act is the same rate that was used to calculate the commuted value.

 

       (2)    The interest in subsection (1) accrues from the date that the former member terminates their membership in the pension plan until the beginning of the month in which the amount is paid.


Interest on ordered repayment of money or return of assets

161 (1)    An order made by the Superintendent for repayment of money under subsection 61(12) or 62(5) of the Act or for a return of assets under subsection 107(14) of the Act must include interest at the post-judgment interest rate calculated from the date of the transfer of funds to which the order relates.

 

       (2)    In subsection (1), “post-judgment interest rate” means the bank rate at the end of the first day of the last month of the quarter immediately before the quarter in which the date of the order falls, rounded to the next higher whole number if the bank rate includes a fraction, plus 1%.


Interest on commuted value on wind-up of plan

162 (1)    The rate at which interest must be credited on the commuted value of a person’s pension benefit payable under subsection 96(2) of the Act is the same rate that was used to calculate the commuted value for the purposes of the wind-up report.

 

       (2)    The interest in subsection (1) accrues from the effective date of the pension plan’s wind-up until the beginning of the month in which the amount is paid.


Withdrawing Surplus from Pension Plan


Notice of application to withdraw surplus from continuing pension plan

163 All of the following information is prescribed as the information required to be contained in an employer’s notice of application under subsection 103(2) of the Act to withdraw surplus from a continuing pension plan:

 

                (a)    the name of the plan and its Provincial registration number;

 

                (b)    the valuation date of the valuation report provided with the application and the amount of surplus in the plan;

 

                (c)    the amount of surplus requested to be withdrawn;

 

                (d)    a statement that submissions in respect of the application may be made in writing to the Superintendent no later than 30 days after the date the notice is received;

 

                (e)    the contractual authority for withdrawing the surplus;

 

                (f)    notice that copies of the valuation report filed in support of an application to withdraw the surplus are available for review at the offices of the employer, and information on how copies of the report may be obtained.


Application to withdraw surplus from continuing pension plan

164 An employer who applies to the Superintendent for consent to payment of money to the employer out of the surplus of a pension fund of a continuing pension plan under Section 103 of the Act must include all of the following information and documents with their application:

 

                (a)    a certified copy of the notice of the application;

 

                (b)    details of the classes of persons who received the notice and the date that the last notice was distributed;

 

                (c)    a statement indicating that the requirements of subsection 103(2) of the Act are satisfied;

 

                (d)    a current valuation report for the plan that demonstrates that a surplus, as determined in accordance with Section 165, exists and that there are no special payments required to be made to the pension fund.


Determining surplus for continuing pension plan

165 (1)    For the purposes of determining surplus in a continuing pension plan under clause 105(1)(a) of the Act,

 

                (a)    the value of the assets of the plan must be calculated on the basis of the market value of investments held by the pension fund plus any cash balances and accrued or receivable items; and

 

                (b)    the value of the liabilities of the plan is the greater of the following amounts:

 

                         (i)     the amount calculated as the plan’s going concern liabilities,

 

                         (ii)    the amount calculated as the plan’s solvency liabilities.

 

       (2)    For purposes of calculating the amount to be retained in a pension plan as surplus under clause 105(1)(d) of the Act, the liabilities of the plan are the sum of all of the following:

 

                (a)    the solvency liabilities;

 

                (b)    the liabilities for all pension benefits that are excluded in the calculation of the solvency liabilities.


Notice of application to withdraw surplus from plan being wound up

166 All of the following information is prescribed as the information required to be contained in an employer’s notice of application under subsection 103(2) of the Act to withdraw surplus from a pension plan that is being wound up:

 

                (a)    all of the information required for a notice for a continuing pension plan in clauses 163(a) to (e);

 

                (b)    notice that copies of the wind-up report filed in support of the application to withdraw surplus are available for review at the offices of the employer, and information on how copies of the report may be obtained.


Application to withdraw surplus from plan being wound up

167 An employer who applies to the Superintendent for consent to payment of money to the employer out of the surplus of a pension fund under Section 103 of the Act that is being wound up must include of the following with their application:

 

                (a)    all of the information and documents required for an application to withdraw surplus from a continuing pension plan in clauses 164(a) to (c);

 

                (b)    the wind-up report.


Notice of intention to enter into agreement for payment of surplus to employer

168 (1)    All of the following information is prescribed as the information required to be contained in an employer’s notice of intention to enter into a written agreement for payment of surplus money out of a pension plan under subsection 104(8) of the Act:

 

                (a)    the name of the plan and its Provincial registration number;

 

                (b)    the name and date of birth of the member, former member or retired member;

 

                (c)    the method of distributing the surplus assets

 

                         (i)     between the employer and each person entitled to a pension benefit, deferred pension, pension or other payment under the plan, and

 

                         (ii)    among the persons entitled to a pension benefit, deferred pension, pension other payment under the plan;

 

                (d)    the formula for allocating the surplus among persons entitled to a pension benefit, deferred pension, pension or other payment under the plan;

 

                (e)    an estimate of the amount allocated to the person;

 

                (f)    the options available to the person for how the amount allocated to the person may be distributed;

 

                (g)    the time period for exercising the options referred to in clause (f), in accordance with subsection (3), and instructions on how the election may be made;

 

                (h)    how the amount will be distributed if the person does not make an election respecting the options in clause (f) within the specified period;

 

                (i)     the name and details of the person to contact with any questions the person has about the statement;

 

                (j)     notice that the allocation of surplus and the options available for distributing it are subject to the approval of the Superintendent and the approval of the Canada Revenue Agency, and may be adjusted accordingly.

 

       (2)    For an agreement for surplus to be paid to the employer on wind-up of a pension plan, the time period for providing the notice of intention required by subsection 104(8) of the Act is no later than 60 days after the date the administrator receives notice that the Superintendent has approved the wind-up report.

 

       (3)    The time period for a recipient of a notice of intention given under subsection 104(8) of the Act to make an election, or to be deemed to have elected the method of distributing the surplus set out in the statement, is no later than 90 days after the date that the recipient received the notice.


Payments in accordance with election re surplus

169 An administrator must make payment in accordance with an election or deemed election by a recipient of a notice of intention given under subsection 104(8) of the Act no later than 60 days after the later of the following dates:

 

                (a)    the date that the administrator receives the person’s election under subsection 168(3) or the date that the person is deemed to have made the election in accordance with that subsection;

 

                (b)    if the election respecting the options in clause 168(1)(f) is in relation to a wind-up of a pension plan, the date the administrator receives notice that the Superintendent has consented to the payment of the surplus money to the employer under Section 103 of the Act.


Number of persons for purposes of agreement regarding payment of surplus to employer

170 At least 2/3 of the former members, retired members and other persons who are entitled to payments under a pension plan as of the date specified in an agreement for payment of a surplus is prescribed as the number of persons for the purposes of subclauses 104(7)(a)(iii) and (b)(iii) of the Act.


Part 5: Wind-up of Pension Plans


Notice of intended wind-up

171 All of the following information is prescribed under subsection 92(6) of the Act as the information to be included in a notice of an intended wind-up of a pension plan:

 

                (a)    the name of the plan and its Provincial registration number;

 

                (b)    the proposed date of the wind-up;

 

                (c)    notice that each member, former member or retired member or any other person who is entitled to a pension, deferred pension, other benefit or a refund will be provided with an individual statement in accordance with subsection 95(1) of the Act and Section 172, setting out their entitlements and options under the plan and additional information concerning the plan;

 

                (d)    for a plan that provides contributory benefits, notice of the member’s right to make contributions in respect of the period of notice of termination of employment required under the Labour Standards Code.


Statement of member entitlements on wind-up

172 (1)    In addition to setting out a person’s entitlement under a pension plan and the options available to the person as required for a statement under subsection 95(1) of the Act, all of the following information is prescribed as the information that is required to be included in the statement as of the effective date of the wind-up, as the information is recorded in the administrator’s records for the plan:

 

                (a)    the name of the plan and its Provincial registration number;

 

                (b)    the name and date of birth of the member, former member or retired member;

 

                (c)    the effective date of the wind-up;

 

                (d)    the date that the member or former member joined the plan and, except in the case of multi-employer pension plans, the date that they began employment with the employer;

 

                (e)    the name of the spouse of the member, former member or retired member;

 

                (f)    the amount of required contributions made to the pension fund by the member or former member since the date of the last annual statement to members;

 

                (g)    the accumulated amount of required contributions made by the member or former member to the pension fund, including interest credited to the contributions;

 

                (h)    the amount of additional voluntary contributions made by the member or former member to the pension fund since the date of the last annual statement to members;

 

                (i)     the accumulated amount of additional voluntary contributions made by the member or former member to the pension fund, including interest credited to the contributions;

 

                (j)     any amount transferred from another pension plan on behalf of the member or former member since the date of the last annual statement to members and the pension benefit under the plan that is attributable to that amount;

 

                (k)    for a plan that provides defined contribution benefits,

 

                         (i)     the amount of employer contributions allocated to the member, former member or retired member since the date of the last annual statement to members, and

                         

                         (ii)     the accumulated amount of employer contributions, including interest credited to the contributions, allocated to the member, former member or retired member;

 

                (l)     for a plan that provides defined benefits,

 

                         (i)     the member’s years of employment, or membership in the plan, for the purpose of calculating pension benefits including any period of notice of termination of employment credited under subsection 97(5) of the Act, and


                         (ii)    if salary is a factor in determining a pension benefit, the salary used to determine the benefit;

 

                (m)   the rate of interest credited to the contributions required to be made by the member, former member or retired member since the date of the last annual statement to members;

 

                (n)    an explanation of any amendments made to the plan during the period covered by the statement for which notice has not previously been provided under Section 30;

 

                (o)    the deadline by which any options must be exercised;

 

                (p)    if there are insufficient assets to pay all pension benefits, a description of any reductions made to the person’s benefits;

 

                (q)    where copies of the wind-up report are available and information on how copies of the report may be obtained;

 

                (r)    the name and details of the person to contact with any questions the person has about the statement;

 

                (s)    notice that the entitlements and options are subject to the approval of the Superintendent and the approval of the Canada Revenue Agency, and may be adjusted accordingly.

 

       (2)    The time period for providing the statement of entitlements required by subsection 95(1) of the Act to the persons specified in that subsection is no later than 60 days after the following applicable date:

 

                (a)    the date the administrator receives notice that the Superintendent has approved the wind-up report;

 

                (b)    for persons affected by the continuation of benefits approved by the Superintendent under subsection 94(3) of the Act, the date the administrator receives notice of the approval.

 

       (3)    The time period under subsection 95(2) of the Act for a recipient of a statement of entitlements under subsection 95(1) of the Act to make an election, or to be deemed to have made an election, is no later than 90 days after the date that the recipient received the statement.


Payments in accordance with election on wind-up

173 (1)    Except as provided in subsection (2), the date by which an administrator must make payment under subsection 95(4) of the Act of a person’s pension, deferred pension, other benefit or refund is no later than 60 days after the later of the following dates:

 

                (a)    the date that the administrator receives the person’s election in accordance with subsection 172(3) or the date that the person is deemed to have made the election in accordance with that subsection;

 

                (b)    the date that the administrator receives notice that the Superintendent has approved the wind-up report.

 

       (2)    If the Superintendent approves the payment of benefits under subsection 94(3) of the Act, the date by which an administrator must make payment under subsection 95(4) of the Act of a person’s pension, deferred pension, other benefit or refund is no later than 60 days after the later of the following dates:

 

                (a)    the date that the administrator receives the person’s election in accordance with subsection 172(3) or the date that the person is deemed to have made the election in accordance with that subsection;

 

                (b)    the date that the administrator receives notice of the approval of the payment.


Prescribed circumstances for ordering wind-up

174 Each of the following is prescribed as an event or circumstance which, if it occurs, allows the Superintendent to order the wind-up of a pension plan under clause 93(1)(h) of the Act:

 

                (a)    the plan does not have any members, and has only former members, retired members and other beneficiaries who are not members;

 

                (b)    members of the plan no longer accrue pension benefits or ancillary benefits under the plan, and the employees are no longer eligible to become members of the plan in accordance with the requirements under Section 45 of the Act.


Wind-up report

175 (1)    A pension plan’s wind-up report must be filed no later than 6 months after the effective date of the wind-up, together with all outstanding annual information returns required to be filed for the plan up to the effective date of the wind-up.

 

       (2)    A wind-up report in respect of a defined benefit pension plan that is wound up in part must, if the assets allocated to the wind-up are not sufficient to pay all pension benefits and the benefits included in the wind-up, be prepared as if the plan were being wholly wound up.


Additional information with wind-up report

176 (1)    In addition to the information that is required to be set out in a wind-up report by clause 94(1)(a) to (c) of the Act, the administrator must also provide the Superintendent with any information the Superintendent requires to ensure that the wind-up report meets the requirements of the Act and the regulations and otherwise protects the interests of the members, former members, retired members and other persons entitled to benefits under the pension plan.

 

       (2)    The information in subsection (1) must be provided to the Superintendent within the time period established by the Superintendent.


Minimum commuted value as of effective date of wind-up

177 If a pension plan is being wound up in whole or in part, the minimum commuted value of a pension, deferred pension or ancillary benefit in respect of a person who exercises their entitlement under subsection 96(2) of the Act is the amount determined as of the effective date of the wind-up in accordance with Section 3500 of the Canadian Institute of Actuaries Standards of Practice.


Payments exempt under subsection 94(3) of Act

178 Payments of refunds of employee contributions, together with interest, to persons not entitled to a pension, deferred pension or ancillary benefit are payments that are not prevented under subsection 94(3) of the Act.


Payments out of pension plan on wind-up

179 (1)    If an employer is required to make payments into a pension fund under Section 99 of the Act for a pension plan that is wound up, all of the following restrictions apply to the pension fund until a report is filed under Section 186 certifying that there is no further amount to be funded:

 

                (a)    money from the fund must not be used to purchase a life annuity for any person entitled to a life annuity;

 

                (b)    the maximum portion of the commuted value of a former member’s deferred pension that may be transferred, as elected under clause 61(1)(a) or (b) of the Act, is the amount of any required employee contributions plus any additional voluntary contributions made by the employee.

 

       (2)    The benefits to be paid on wind-up of a pension plan under Section 97 of the Act must be paid only if the full amount of all pensions, deferred pensions, ancillary benefits or other benefits to which persons are entitled have been funded.


Reduction in benefits on wind-up

180 The reduction in pension benefits and other benefits required by Section 102 of the Act for a pension plan in which there is insufficient money in the pension fund is a reduction to an amount proportionate to the extent that the benefits have been funded.


Documents required to be filed within 6 months of wind-up

181 No later than 6 months after the effective date of a pension plan’s wind-up, an administrator must file all of the following documents for the period that is from the date of the plan’s most recent fiscal year end to the effective date of the wind-up:

 

                (a)    an annual information return for the plan as required by subsection 31(1) of the Act;

 

                (b)    financial statements for the plan’s pension fund as required by Section 66.


Notice of distribution of all assets of pension plan

182 No later than 30 days after final distribution of a pension plan’s assets in accordance with Section 94 of the Act, the plan’s wind-up report and these regulations, an administrator must give the Superintendent written notice that all the assets of the plan have been distributed as required.


Payment of outstanding amounts on wind-up

183 Payment of all amounts that are due or have accrued and that have not been paid and are required to be made into a pension plan’s pension fund on wind-up under subsection 99(1) of the Act or clauses 100(1)(a) or (2)(a) of the Act must be made no later than the following dates:

 

                (a)    30 days after the effective date of the wind-up of the plan;

 

                (b)    if approved by the Superintendent, a date that is later than 30 days.


Payments on wind-up of pension plan other than jointly sponsored pension plan

184 (1)    The payments required to be made by an employer to a pension fund under subsection 99(2) of the Act must cover the amount necessary to fund benefits for the following persons:

 

                (a)    for a plan that is wholly wound up, members, former members, retired members and any other persons entitled to a benefit from the pension plan;

 

                (b)    for a plan that is partially wound up, those members, former members, retired members and other persons entitled to a benefit from the plan that are affected by the partial wind-up.

 

       (2)    The payments required to be made under subsection 99(2) of the Act by an employer on wind-up to fund the benefits provided under a pension plan and under Section 97 of the Act must be in the form of annual payments, beginning on the effective date of the plan’s wind-up, and must not be not less than the greater of the following amounts:

 

                (a)    the amount necessary to fund the benefits in equal annual instalments, payable in advance, over a period of no longer than 5 years;

 

                (b)    the minimum payments required for the year the wind-up occurs, as determined in the valuation reports filed or submitted for the plan.

 

       (3)    The payments referred to in subsection (2) must continue until the liability is fully funded.


Payments of any additional amounts on wind-up of jointly sponsored pension plan

185 (1)    The payments required to be made under clause 100(1)(b) or (2)(b) of the Act to fund additional amounts on wind-up of a jointly sponsored pension plan must be in the form of 1 of the following payments, beginning on the effective date of the plan’s wind-up:

 

                (a)    equal monthly instalments for 5 years or less;

 

                (b)    payments in accordance with a schedule of payments determined under subsection (2).

 

       (2)    The schedule of payments referred to in clause (1)(b) must be determined in accordance with all of the following:

 

                (a)    the present value of the scheduled payments at the effective date of the wind-up must be equal to the additional amounts to be funded;

 

                (b)    the payments must be made in equal monthly instalments over an amortization period that ends no later than 5 years after the effective date of the wind-up;

 

                (c)    the present value of the scheduled payments must be determined using the interest rates used in the pension plan’s wind-up report.


Administrator’s responsibilities during wind-up if additional funding required

186 (1)    Until all payments are made on wind-up as required under subsection 99(2) of the Act or clause 100(1)(b) or (2)(b) of the Act, an administrator must

 

                (a)    cause the pension plan to be reviewed annually and a valuation report on the plan to be prepared in accordance with the requirements for a valuation report under Section 53 and this Section; and

 

                (b)    file the valuation report prepared under clause (a) no later than 6 months after the valuation date of the report.

 

       (2)    A valuation report required by subsection (1) must show all of the following:

 

                (a)    the gain or loss to the pension fund since the valuation date of the immediately previous valuation report as a result of differences between the actual experience and the experience anticipated by the assumptions made in the previous report;

 

                (b)    the increase or decrease in the remaining special payments, and payments under subsection 99(2) or clause 100(1)(b) or (2)(b) of the Act, required to liquidate the gain or loss referred to in clause (a) over the remainder of the amortization period under Section 184 or 185.

 

       (3)    Any special payments required as a result of a loss referred to in clause (2)(a) must be included as payments required to be made by the employer under Section 99 of the Act or under Section 100 of the Act.

 

       (4)    If a report required under subsection (1) shows that there is no further amount to be funded, any money remaining in the pension fund

 

                (a)    may be paid to the employer in accordance with Section 86 of the Act as if the money was an overpayment into the pension fund by the employer within the meaning of clause 86(1)(b) of the Act;

 

                (b)    for a jointly sponsored pension plan, must be dealt with according to the terms and conditions of the documents that create and support the plan.


Definitions for election to exclude jointly sponsored pension plan from Section 97 of Act—Sections 188 to 194

187 In this Section and Sections 188 to 194,

 

“election form” means a form established by an administrator for a recipient to vote on an election to exclude;

 

“election to exclude” means an election made by JSPP employers and eligible members to exclude a jointly sponsored pension plan and its members from the operation of Section 97 of the Act and made effective by a notice of election in accordance with subsection 98(4) of the Act;

 

“JSPP employers” means the employers, and any person or entity who makes employer contributions or who represents the employers of a jointly sponsored pension plan, as referred to in subsection 98(1) of the Act;

 

“eligible members” means the members, or the representatives of the members, of a jointly sponsored pension plan, other than members for whom a notice of death has been received by the administrator;

 

“notice of election” means the notice required to be filed by subsection 98(4) of the Act;

 

“notice of vote” means the notice provided by any JSPP employers or eligible members to the administrator under Section 188 requiring a vote to be held on whether to make an election to exclude.


Notice of vote

188 Any JSPP employers or eligible members may provide the administrator with a notice of vote, in writing, requiring a vote to be held on whether to make an election to exclude.


Vote on whether to make election to exclude

189 (1)    A vote on whether to make and election to exclude must be held in accordance with this Section.

 

       (2)    No later than 60 days after receiving a notice of vote, the administrator of a jointly sponsored pension plan must send information statements and election forms to all of the following persons, as follows:

 

                (a)    the administrator must send an information statement and an election form to

 

                         (i)     a person who meets all of the following criteria:

 

                                  (A)   they were a JSPP employer or an eligible member on the date the notice of vote was sent to the administrator,

 

                                  (B)   they are a JSPP employer or an eligible member on the date the information statement and election form are sent,

 

                                  (C)   for eligible members, they were not represented by a collective bargaining agent on the date the notice of vote was sent to the administrator;

 

                         (ii)    each collective bargaining agent that represented eligible members on the date the notice of vote was sent to the administrator;

 

                (b)    the administrator must send an information statement to a person who meets all of the following criteria:

 

                         (i)     the criteria in paragraphs (a)(i)(A) and (B),

 

                         (ii)    they were represented by a collective bargaining agent on the date the notice of vote was sent to the administrator;

 

                (c)    the administrator must provide the Superintendent with a copy of the information statement and the election form at the same time the administrator sends the statements and forms in accordance with clauses (a) and (b) and must advise the Superintendent of when the last election form was sent.

 

       (3)    An information statement sent under subsection (2) to the persons in clauses (2)(a) and (b) must be sent to the most recent address for the person in the administrator’s records for the pension plan, and must contain all of the following information:

 

                (a)    the name of the recipient and their status as a JSPP employer or eligible member on the date the notice of vote was sent to the administrator;

 

                (b)    the name of the plan and its Provincial registration number;

 

                (c)    the administrator’s name and contact information;

 

                (d)    a copy of the notice of vote that was received by the administrator;

 

                (e)    the date the notice of vote was sent to the administrator;

 

                (f)    that the recipient may elect to exclude the plan and its members from the operation of Section 97 of the Act with respect to the payment of a pension or a reduced pension to eligible members of the plan whose combination of age plus years of continuous employment or membership in the plan equals at least 55 at the effective date of the plan’s wind-up;

 

                (g)    an explanation as to the impact of an election to exclude on all of the following:

 

                         (i)     the plan,

 

                         (ii)    employer contributions,

 

                         (iii)   employee contributions;

 

                (h)    that an election to exclude will be made only if, according to the election forms received by the administrator, 2/3 or more of the total number of JSPP employers and eligible members who were JSPP employers and eligible members on the date the notice of vote was sent to the administrator and the date the information statement was sent vote to exclude the plan and its members from the operation of Section 97 of the Act;

 

                (i)     that an election to exclude will only take effect when notice of election is filed, or on a later date specified in the notice of election, in accordance with subsection 98(4) of the Act;

 

                (j)     that only 1 election may be made in respect of the plan, in accordance with subsection 98(3) of the Act;

 

                (k)    that an election may be rescinded by the JSPP employers and eligible members, and that the rescission takes effect when notice of the rescission is filed, or on a later date specified in the notice, in accordance with subsection 98(5) of the Act;

 

                (l)     for a recipient who is an eligible member, whether they were represented by a collective bargaining agent on the date that the notice of vote was sent;

 

                (m)   for a recipient who, on the date that the notice of vote was sent, was an eligible member represented by a collective bargaining agent, a statement that the collective bargaining agent will vote on behalf of the recipient and may vote to exclude or object to excluding the plan and its members from the operation of Section 97 of the Act;

 

                (n)    for a recipient who, on the date that the notice of vote was sent, was an eligible member not represented by a collective bargaining agent,

 

                         (i)     a statement that the person may vote to exclude or object to excluding the plan and its members from the operation of Section 97 of the Act by completing and submitting the election form provided, and

 

                         (ii)    the last date that the administrator will accept election forms, in accordance with Section 190.

 

       (4)    An information statement sent under subsection (2) to a collective bargaining agent must contain all of the following information:

 

                (a)    the information required for an information statement to JSPP employers and eligible members in clauses (3)(b) to (j);

 

                (b)    a statement that the collective bargaining agent may vote to exclude or object to excluding the pension plan and its members from the operation of Section 97 of the Act on behalf of all persons who meet all of the following criteria, by submitting an election form provided by the administrator:

 

                         (i)     they were eligible members on the date the notice of vote was sent,

 

                         (ii)    they were represented by the collective bargaining agent on the date the information statement and election form were sent by the administrator,

 

                         (iii)   they were eligible members on the date the information statement and election form were sent by the administrator;

 

                (c)    the number of persons who meet all of the criteria in subclauses (b)(i) to (iii).

 

       (5)    At the same time that the information required by subsection[s] (3) and (4) is provided to the persons referred to in clauses (2)(a) and (b), the administrator must provide an individual statement containing the following information to each person who was a JSPP employer or an eligible member on the date the notice of vote was sent to the administrator and on the date the information statement is sent:

 

                (a)    for a JSPP employer, a statement as to the impact on employer contributions and other costs of the employer under the pension plan in all of the following circumstances:

 

                         (i)     if an election to exclude is made, and all of the following criteria are met:

 

                                  (A)   the election to exclude is made on the date the administrator sets as the last date for accepting election forms under Section 190,

 

                                  (B)   the election to exclude is to take effect on the date it is made,

 

                                  (C)   the effective date of the plan’s wind-up is the date of the election to exclude,

 

                         (ii)    if an election to exclude is not made as a result of the vote, and the effective date of the plan’s wind-up is the date the administrator sets as the last date for accepting election forms under Section 190;

 

                (b)    for an eligible member, a statement as to the member’s entitlement to pension benefits and other benefits under the pension plan, under the following circumstances:

 

                         (i)     if an election to exclude is made, and all of the following criteria are met:

 

                                  (A)   the election to exclude is made on the date the administrator sets as the last date for accepting election forms under Section 190,

 

                                  (B)   the election to exclude is to take effect on the date it is made,

 

                                  (C)   the effective date of the plan’s wind-up is the date the election to exclude is made,

 

                                  (D)   the member’s combined age plus years of continuous employment or membership in the plan equals at least 55 as of the date the election to exclude is made,

 

                         (ii)    if an election to exclude is not made as a result of the vote, and all of the following criteria are met:

 

                                  (A)   the effective date of the plan’s wind-up is the date the administrator sets as the last date for accepting election forms under Section 190,

 

                                  (B)   the member’s combined age plus years of continuous employment or membership in the plan equals at least 55 as of the last date for accepting election forms,

 

                         (iii)   if an election to exclude is made, and all of the following criteria are met:

 

                                  (A)   the election to exclude is made on the date the administrator sets as the last date for accepting election forms under Section 190,

 

                                  (B)   the election to exclude is to take effect on the effective date of the plan’s wind-up,

 

                                  (C)   the effective date of the plan’s wind-up is the date the member’s combined age plus years of continuous employment or membership in the plan equals at least 55,

 

                         (iv)   if an election to exclude is not made, and the effective date of the plan’s wind-up is the date the member’s combined age plus years of continuous employment or membership in the plan equals at least 55.

 

       (6)    An election form sent under subsection (2) must include all of the following information:

 

                (a)    the name of the pension plan and its Provincial registration number;

 

                (b)    the name of the administrator;

 

                (c)    the address where the election form must be sent;

 

                (d)    for an election form to be used by a collective bargaining agent, the number of persons on behalf of whom the agent is voting to exclude or is objecting to the exclusion who meet all of the criteria in clause (4)(b);

 

                (e)    a statement that indicates that

 

                         (i)     by signifying “yes” on the election form, the employer, member or collective bargaining agent votes to exclude the pension plan and its members from the operation of Section 97 of the Act,

 

                         (ii)    by signifying “no” on the election form, the employer, member or collective bargaining agent objects to excluding the pension plan and its members from the operation of Section 97 of the Act;

 

                (f)    a space on the election form for the JSPP employer, eligible member or collective bargaining agent to signify their vote and the date the vote is made;

 

                (g)    a statement that the person voting understands the nature and legal consequences of the election to exclude, and is aware of the right to seek independent legal and financial advice about the election;

 

                (h)    the last date that the administrator will accept election forms, in accordance with Section 190.


Last date for accepting election forms

190 The administrator must set a date that is no earlier than 45 days after the date that they send the last information statement as the last date that election forms will be accepted.


Maintenance of election forms

191 An administrator must keep all election forms they receive, and must provide copies of the election forms to the Superintendent on request.


Prohibition against identifying persons who submit election forms

192 An election form and the process for voting for or objecting to the exclusion of a pension plan from the requirements of Section 97 of the Act must not enable an administrator to identify any member who submits an election form, or on whose behalf the election form is submitted.


Successful election to exclude

193 An election to exclude is successful if the administrator receives votes seeking to exclude the pension plan and its members from the operation of Section 97 of the Act from 2/3 or more of the total number of persons who meet all of the following criteria:

 

                (a)    they were JSPP employers or eligible members on the date the notice of vote was sent to the administrator;

 

                (b)    they were JSPP employers or eligible members on the date the information statement was sent by the administrator.


Notice of election

194 (1)    If an election to exclude is successful in accordance with Section 193, an administrator must file a notice of election and send a copy of the notice to all of the following:

 

                (a)    each person who is a JSPP employer or eligible member on the date the notice is sent;

 

                (b)    each collective bargaining agent that represents eligible members on the date the notice is sent.

 

       (2)    A notice of election must be filed and sent under subsection (1) no later than 60 days after the date the administrator sets as the last date for accepting election forms under Section 190.

 

       (3)    A notice of election must contain all of the following information:

 

                (a)    the name of the pension plan and its Provincial registration number;

 

                (b)    the administrator’s name and contact information;

 

                (c)    the total number of persons who meet the criteria set out in clauses 193(a) and (b);

 

                (d)    the number of persons described in clause (c) who

 

                         (i)     voted to exclude the pension plan and its members from the operation of Section 97 of the Act,

 

                         (ii)    voted not to exclude the pension plan and its members from the operation of Section 97 of the Act,

 

                         (iii)   were represented by a collective bargaining agent that voted to exclude the pension plan and its members from the operation of Section 97 of the Act on their behalf,

 

                         (iv)   were represented by a collective bargaining agent that voted not to exclude the pension plan and its members from the operation of Section 97 of the Act on their behalf,

 

                (e)    confirmation that the number of election forms received by the administrator represents

 

                         (i)     if the election to exclude is successful, votes to exclude the pension plan and its members from the operation of Section 97 of the Act from 2/3 or more of the total number of persons described in clause (c), or

 

                         (ii)    if the election to exclude is not successful, votes to exclude the pension plan and its members from the operation of Section 97 of the Act from less than 2/3 of the total number of persons described in clause (c);

 

                (f)    for notices sent to eligible members represented by a collective bargaining agent and to collective bargaining agents, that the collective bargaining agent voted to exclude or objected to excluding the pension plan and its members from the operation of Section 97 of the Act on behalf of the member.


Part 6: Withdrawals and Transfers


Withdrawals and Transfers from Pension Plans


Direction to administrator to exercise entitlement under subsection 61(5) of Act

195 (1)    The direction required to be delivered to an administrator for a former member to exercise their entitlement to require the administrator to pay an amount equal to the commuted value of the former member’s deferred pension under subsection 61(5) of the Act must be made no later than 90 days following the later of the following dates:

 

                (a)    the date the former member’s employment was terminated;

 

                (b)    the date the statement required to be provided under subsection 41(1) of the Act was received in accordance with Section 76.

 

       (2)    An administrator must comply with a direction delivered in accordance with subsection (1) no later than 60 days after the administrator receives all the information the administrator requires to comply with the direction.


Direction to administrator to transfer into registered retirement savings arrangement

196 (1)    A direction that may be delivered to an administrator to exercise an entitlement under subsection 55(5), 63(8), 67(4) or (10), 70(3) or 87(7) of the Act must be made no later than 90 days after the administrator notifies the person that they are entitled to require the amount to be paid into a registered retirement savings arrangement.

 

       (2)    Payment of an amount into a registered retirement savings arrangement as required by Section 71 of the Act in accordance with a direction delivered under subsection (1) must be made no later than 60 days after the direction is received.


Transfers to a retirement savings arrangement under clause 61(1)(b) of Act

197 (1)    If the commuted value of a former member’s deferred pension to be transferred into a retirement savings arrangement under clause 61(1)(b) of the Act does not exceed the amount prescribed for the transfer under the federal Income Tax Regulations, the full amount of the commuted value must be transferred into a LIRA or a LIF.

 

       (2)    If the commuted value of a former member’s deferred pension to be transferred into a retirement savings arrangement under clause 61(1)(b) of the Act is greater than the amount prescribed for the transfer under the federal Income Tax Regulations, Section 198 applies to the excess amount.

 

       (3)    An administrator must not transfer the commuted value of a pension or deferred pension unless the transferee agrees to administer the amount transferred as a pension or deferred pension in accordance with the Act and these regulations.


Transfers of excess amount into LIRA or LIF

198 (1)    In this Section, “excess amount” means the portion of the amount transferable under clause 61(1)(b) of the Act into a LIRA or LIF, or the amount transferable under clause 67(1)(b) of the Act into a registered retirement savings arrangement, that is greater than the amount prescribed for the transfer under the federal Income Tax Regulations.

 

       (2)    If the excess amount is transferred, directly or indirectly, into a LIRA or a LIF, the owner may withdraw money from the LIRA or LIF in an amount not greater than the sum of all of the following, calculated as of the date the financial institution pays the withdrawn amount:

 

                (a)    the excess amount;

 

                (b)    any investment earnings since the date of the transfer, including any unrealized capital gains or losses, attributable to the excess amount, as calculated by the financial institution that administers the fund or account.

 

       (3)    An owner must apply in an approved form to the financial institution that administers their LIRA or LIF to withdraw an excess amount from the LIRA or LIF.

 

       (4)    An application to withdraw an excess amount in accordance with this Section must be signed by the owner and accompanied by 1 of the following documents:

 

                (a)    a written statement from the administrator setting out the excess amount that was transferred from the pension plan’s pension fund into the LIRA or LIF;

 

                (b)    a written statement from the Canada Revenue Agency setting out the excess amount that was transferred into the LIRA or LIF.

 

       (5)    A contract governing a LIRA or LIF must include all of the following terms about transferring excess amounts, and any contract that does not contain them is deemed to include them:

 

                (a)    that the financial institution is entitled to rely upon the information provided by the owner in an application to withdraw funds from their fund or account;

 

                (b)    that an application that meets the requirements of the Act and the regulations constitutes authorization to the financial institution to make the payment from the fund or account in accordance with the Act and the regulations;

 

                (c)    that the financial institution is required to make the payment to which the owner is entitled no later than 30 days after the date the financial institution receives the completed application and accompanying documents.


Life Annuities, LIRAs and LIFs


Life annuities

199 An insurance contract that provides for a life annuity resulting from a transfer of the commuted value of a pension benefit or as the result of a purchase from a LIRA or LIF must include all of the following terms:

 

                (a)    that, except as permitted by subsection 88(3) or Section 90 of the Act or by these regulations, no money transferred, including interest, will be assigned, charged, anticipated or given as security, and any transaction purporting to assign, charge, anticipate or give the money transferred as security is void and in contravention of this clause;

 

                (b)    that an order under Section 74 of the Act dividing any pension benefit, deferred pension or pension, or a domestic contract that provides for the division of a pension benefit, deferred pension or pension, is not effective to the extent that it purports to entitle a spouse of the annuitant to a share that exceeds 50% of the life annuity earned during the marriage or cohabitation, as determined in accordance with Section 74 of the Act and these regulations;

 

                (c)    that if the annuitant has a spouse at the time payments begin, the life annuity will be in the form of a joint and survivor annuity, as required by Section 63 of the Act, unless the circumstances in subsection 63(4) of the Act apply;

 

                (d)    that, for the purposes of purchasing an immediate life annuity, a determination as to whether the annuitant has a spouse will be made on the date the annuity is purchased;

 

                (e)    that the amount of the life annuity will be determined on a basis that does not take into account the sex of the annuitant, except for the following contracts:

 

                         (i)     a contract that is based entirely upon an amount or amounts transferred from a defined contribution pension plan that provides for employer contributions that vary according to the sex of the employee in accordance with clause 72(2)(b) of the Act,

 

                         (ii)    a contract that is purchased with funds from a LIRA or a LIF, if the commuted value of the pension benefit that was transferred into the LIRA or LIF was determined in a manner that differentiated on the basis of sex;

 

                (f)    that payments under a life annuity purchased with funds from a LIF may begin immediately;

 

                (g)    that payments under a life annuity purchased with funds from a LIRA must not begin before the earlier of the following dates:

 

                         (i)     the earliest date that the owner of the annuity would have been entitled, as a former member, to receive pension benefits under the Act as a result of termination of employment or termination of membership in any pension plan from which money was transferred directly or indirectly into a LIRA,

 

                         (ii)    the earliest date that the owner of the annuity would have been entitled, as a former member, to receive pension benefits under any pension plan from which money was transferred directly or indirectly into a LIRA as a result of termination of employment or termination of membership in the plan; and

 

                (h)    that the annuity will be administered in accordance with Section 67 of the Act if the annuitant dies before payments under the life annuity begin.


Purchasing LIRAs

200 (1)    A LIRA purchased under these regulations must be purchased using all or part of the following amounts:

 

                (a)    an amount transferred under clause 61(1)(b) of the Act;

 

                (aa)  an amount transferred under Section 12B of the Pooled Registered Pension Plans Act;

Clause 200(1)(aa) added: O.I.C. 2016-111, N.S. Reg. 89/2016.

 

                (b)    an amount transferred as a result of a division of any pension benefit, deferred pension or pension under Section 74 of the Act;

 

                (c)    assets in a LIRA;

 

                (d)    assets in a LIF.

 

       (2)    Any of the following persons may purchase a LIRA under these regulations:

 

                (a)    a former member who is entitled to make a transfer under clause 61(1)(b) of the Act;

 

                (b)    a spouse of a person who was a member and who is entitled to make a transfer under clause 61(1)(b) of the Act;

 

                (c)    a person who has previously transferred an amount under clause 61(1)(b) of the Act into a LIRA or LIF;

 

                (d)    a person who has previously transferred an amount into a LIRA as a result of a division of any pension benefit, deferred pension or pension under Section 74 of the Act;

 

                (e)    a spouse who is entitled to transfer a lump sum as a result of a division of any pension benefit, deferred pension or pension under Section 74 of the Act;

 

                (f)    if the funds in the account of a pooled registered pension plan are used for the purchase, a person who transfers the amount in accordance with the Pooled Registered Pension Plans Act and the Pooled Registered Pension Plans Regulations.

Clause 200(2)(f) added: O.I.C. 2016-111, N.S. Reg. 89/2016.


Contracts establishing and governing LIRAs

201 A contract establishing and governing a LIRA must include all of the following in relation to the LIRA:

 

                (a)    the name and address of the financial institution providing the LIRA;

 

                (b)    a description of any powers the owner has respecting investment of the assets in the LIRA;

 

                (c)    a statement by the financial institution providing the LIRA that it agrees not to amend the contract except as provided in Schedule 3: Nova Scotia LIRA Addendum and these regulations;

 

                (d)    a description of the method for determining the value of the assets in the LIRA;

 

                (e)    a statement as to whether the commuted value of the pension benefit that was transferred into the LIRA was determined in a manner that differentiated on the basis of sex;

 

                (f)    a statement that the financial institution is entitled to rely upon the information provided by the owner in an application to purchase a LIRA;

 

                (g)    a statement by the financial institution that it agrees to provide the information described in Section 4 of Schedule 3: Nova Scotia LIRA Addendum to the persons indicated in that Section;

 

                (h)    a copy of Schedule 3: Nova Scotia LIRA Addendum.


Administrator’s duties respecting transfers to LIRAs

202 (1)    An administrator must advise a financial institution providing a LIRA as to whether the commuted value of a pension benefit transferred to the financial institution for the LIRA was determined in a manner that differentiated on the basis of sex.

 

       (2)    An administrator must advise a financial institution providing a LIRA of the earliest date that a former member who is transferring funds to the LIRA would have been entitled to receive a pension under the pension plan from which the funds are transferred.


Conditions for transferring assets from LIRAs

203 (1)    A financial institution must not transfer any or all of the assets of a LIRA unless all of the following conditions are met:

 

                (a)    the transfer is permitted under the Act and these regulations;

 

                (b)    the transferee agrees to administer the amount transferred in accordance with the Act and these regulations.

 

       (2)    A financial institution must advise a person to whom the assets of a LIRA are transferred in writing that the amount transferred must be administered in accordance with the Act and these regulations.


Amending LIRAs

204 (1)    Except as provided in subsection (2), a financial institution must not amend a contract governing a LIRA if the amendment would result in a reduction in the owner’s rights under the contract.

 

       (2)    Subsection (1) does not apply if any of the following conditions are met:

 

                (a)    the financial institution is required by law to make the amendment;

 

                (b)    the owner is entitled to transfer the assets of the LIRA under the terms of the contract as they exist before the amendment is made.

 

       (3)    A financial institution must give an owner of a LIRA written notice of any proposed amendment to their contract, other than an amendment in subsection (2), at least 90 days before the amendment takes effect.

 

       (4)    A financial institution must give an owner of a LIRA written notice of any proposed amendment to their contract that reduces an owner’s rights, as permitted under subsection (2), and the notice must

 

                (a)    include a statement as to the nature of the amendment; and

 

                (b)    allow the owner at least 90 days after the notice is given to transfer all or part of the assets of the LIRA.

 

       (5)    Written notices of amendments to contracts governing LIRAs under this Section must be sent to the owner’s most recent address as set out in the records of the financial institution.


Purchasing LIFs

205 (1)    A LIF purchased under these regulations must be purchased using all or part of the following amounts:

 

                (a)    the amount transferred under clause 61(1)(b) of the Act;

 

                (aa)  the amount transferred under Section 61A of the Act;

Clause 205(1)(aa) added: O.I.C. 2016-111, N.S. Reg. 89/2016.

 

                (b)    the amount transferred as a result of a division of any pension benefit, deferred pension or pension under Section 74 of the Act;

 

                (c)    the assets in a LIRA;

 

                (d)    the assets in a LIF.

 

       (2)    Any of the following persons may purchase a LIF under these regulations:

 

                (a)    a former member who is entitled to make a transfer under clause 61(1)(b) of the Act;

 

                (b)    a spouse of a person who was a member and who is entitled to make a transfer under clause 61(1)(b) of the Act;

 

                (c)    a person who has previously transferred an amount under clause 61(1)(b) of the Act into a LIRA or LIF;

 

                (d)    a person who has previously transferred an amount into a LIF as a result of a division of any pension benefit, deferred pension or pension under Section 74 of the Act;

 

                (e)    a spouse who is entitled to transfer a lump sum as a result of a division of any pension benefit, deferred pension or pension under Section 74 of the Act;

 

                (f)    if the funds in the account of a pooled registered pension plan are used for the purchase, a person who transfers the amount in accordance with the Pooled Registered Pension Plans Act and the Pooled Registered Pension Plans Regulations.

Clause 205(2)(f) added: O.I.C. 2016-111, N.S. Reg. 89/2016.

 

       (3)    A purchaser of a LIF must have the written consent of their spouse, in an approved form, to purchase a LIF, unless any of the following apply:

 

                (a)    the spouse is living separate and apart from the purchaser on the date of the purchase with no reasonable prospect of resuming cohabitation;

 

                (b)    any of the money to be transferred into the LIF is derived, directly or indirectly, from sources other than a pension benefit provided in respect of any employment of the purchaser.


Contracts establishing and governing LIFs

206 A contract establishing and governing a LIF must include the following in relation to the LIF:

 

                (a)    all of the information required for a LIRA in clauses 201(a) to (f), substituting “LIF” for “LIRA”;

 

                (b)    a statement by the financial institution that it agrees to provide the information described in Section 14 of Schedule 4: Nova Scotia LIF Addendum, to the persons indicated in that Section;

 

                (c)    a copy of Schedule 4: Nova Scotia LIF Addendum attached to the contract.


LIF filing requirements and Superintendent’s list

207 (1)    A financial institution must file all of the following for approval by the Superintendent, together with the prescribed fees:

 

                (a)    a certified copy of its specimen LIF contract;

 

                (b)    certified copies of any subsequent amendments to its specimen LIF contract.

 

       (2)    The Superintendent must establish and maintain a list that contains all of the following:

 

                (a)    the financial institutions for which specimen contracts filed under subsection (1) are approved;

 

                (b)    the LIFs that are approved for financial institutions listed under clause (a).

 

       (3)    A financial institution may issue a LIF only after it is notified in writing by the Superintendent that its name and LIF are on the list maintained under subsection (2), and if it has not been notified that it has been removed from the list in accordance with subsection (4).

 

       (4)    Without affecting the duties or liability of a financial institution in relation to any transfer or LIF, the Superintendent may remove the financial institution’s name or LIF from the list maintained under subsection (2) if

 

                (a)    certified copies are not filed as required by subsection (1); or

 

                (b)    the financial institution breaches any of its obligations under these regulations.

 

       (5)    The Superintendent must notify a financial institution who files a specimen LIF contract for approval, in writing, of any of the following:

 

                (a)    that its specimen contract has been approved and its name and LIF are on the list maintained under subsection (2);

 

                (b)    that the Superintendent has removed the institution’s name or LIF from the list maintained under subsection (2).


Administrator’s duties respecting transfers to LIFs

208 (1)    An administrator must not effect a transfer to a LIF unless the administrator has ascertained that the name of the financial institution and the LIF are currently on the list maintained under subsection 207(2).

 

       (2)    An administrator must advise a financial institution providing a LIF as to whether the commuted value of a pension benefit transferred to the financial institution for the LIF was determined in a manner that differentiated on the basis of sex.

 

       (3)    An administrator must advise a financial institution providing a LIF of the earliest date that a former member who is transferring funds to the LIF would have been entitled to receive a pension under the pension plan from which the funds are transferred.


Conditions for transferring assets from LIFs

209 (1)    A financial institution must not transfer any or all of the assets of a LIF unless all of the following conditions are met:

 

                (a)    the transfer is permitted under the Act and these regulations;

 

                (b)    the transferee agrees to administer the amount transferred in accordance with the Act and these regulations.

 

       (2)    A financial institution must advise a person to whom the assets of a LIF are transferred in writing that the amount transferred must be administered in accordance with the Act and these regulations.


Amending LIFs

210 (1)    Except as provided in subsection (2), a financial institution must not amend a contract governing a LIF if the amendment would result in a reduction in the owner’s rights under the contract.

 

       (2)    Subsection (1) does not apply if any of the following conditions are met:

 

                (a)    the financial institution is required by law to make the amendment;

 

                (b)    the owner is entitled to transfer the assets of the LIF under the terms of the contract that exist before the amendment is made.

 

       (3)    A financial institution must give an owner of a LIF written notice of any proposed amendment to their contract, other than an amendment in subsection (2), at least 90 days before the amendment takes effect.

 

       (4)    Written notice of any proposed amendment that reduces an owner’s rights as permitted under subsection (2) must

 

                (a)    include a statement as to the nature of the amendment; and

 

                (b)    allow the owner at least 90 days after the notice is given to transfer all or part of the assets of the LIF.

 

       (5)    Written notices of amendments to contracts governing LIFs under this Section must be sent to the owner’s most recent address as set out in the records of the financial institution.


Withdrawals from LIRAs and LIFs


Definitions for circumstances of financial hardship—Sections 212 to 230

211 In this Section and Sections 212 to 230,

 

“application” means an application under subsection 91(6) of the Act by an owner for the Superintendent’s consent to a withdrawal in circumstances of financial hardship;

 

“child” includes a person for whom an owner, or an owner’s spouse, is a legal guardian;

 

“circumstance of financial hardship” means a circumstance prescribed in subsection 212(1) for the purposes of subsection 91(5) of the Act;

 

“consented amount” means the amount the Superintendent consents to being withdrawn by an owner from a LIRA or LIF under an application, not including any applicable withholding tax or prescribed fees;

 

“dentist” means a dentist who is licensed to practise dentistry in a jurisdiction in Canada;

 

“dependant” means any of the following relatives of an owner, or an owner’s spouse, who is dependent on the owner or the owner’s spouse for support on the date the owner signs an application or at any time during the 12-month period immediately before the date the owner signs an application:

 

                         (i)     child,

 

                         (ii)    stepchild,

 

                         (iii)   grandchild,

 

                         (iv)   parent,

 

                         (v)    step-parent,

 

                         (vi)   grandparent,

 

                         (vii)  brother,

 

                         (viii) half-brother,

 

                         (ix)   step-brother,

 

                         (x)    sister,

 

                         (xi)   half-sister,

 

                         (xii)  step-sister,

 

                         (xiii) uncle,

 

                         (xiv) aunt,

 

                         (xv)  niece,

 

                         (xvi) nephew.

 

“medical expenses” means expenses for goods or services of a medical or dental nature that are

 

                         (i)     certified by a physician or dentist, who is qualified to make that determination within the scope of their licence, as necessary to treat an illness or disability,

 

                         (ii)    not covered by insurance, a benefit plan, a government program or any other source;

 

“medical expense circumstance” means a circumstance of financial hardship as prescribed in clause 212(1)(b);

 

“mortgage default circumstance” means a circumstance of financial hardship as prescribed in clause 212(1)(a);

 

“owner’s spouse” means a spouse other than a spouse who is living separate and apart from the owner on the signing date and with whom there is no reasonable prospect of resuming cohabitation;

 

“principal residence” means a property that is ordinarily inhabited by an owner on the date the owner signs an application;

 

“reduced income circumstance” means a circumstance of financial hardship as prescribed in clause 212(1)(d);

 

“rental default circumstance” means a circumstance of financial hardship as prescribed by clause 212(1)(c);

 

“signing date” means the date an application is signed by an owner;

 

“withdrawal” means the commutation or surrender, in whole or in part, of a LIRA or LIF.


Prescribed circumstances of financial hardship

212 (1)    The following are the circumstances of financial hardship:

 

                (a)    mortgage default circumstance: the owner or the owner’s spouse has received a written demand in respect of a default on a mortgage debt that is secured against the owner’s principal residence, and the owner could face eviction if the debt remains unpaid;

 

                (b)    medical expense circumstance: the owner, the owner’s spouse or a dependant has incurred or will incur medical expenses;

 

                (c)    rental default circumstance: the owner or the owner’s spouse has received a written demand in respect of arrears in the payment of rent on the owner’s principal residence, and the owner could face eviction if the debt remains unpaid;

 

                (d)    reduced income circumstance: the owner’s anticipated total income from all sources before taxes for the 12-month period immediately following the signing date is less than 66 2/3% of the Year’s Maximum Pensionable Earnings for the year in which the application is signed.

 

       (2)    For the purposes of a mortgage default circumstance or a rental default circumstance, an owner has only 1 principal residence.


Application to Superintendent for consent to withdraw funds from LIRA or LIF in circumstances of financial hardship

213 (1)    An application in an approved form must be

 

                (a)    signed and dated by the owner; and

 

                (b)    submitted to the Superintendent.

 

       (2)    An application must be accompanied by a copy of the most recent statement for the LIRA or LIF issued to the owner of the LIRA or LIF by the financial institution that administers the LIRA or LIF.

 

       (3)    An application must request consent to withdraw all of the following amounts:

 

                (a)    the amount requested for withdrawal, calculated in accordance with Section 222;

 

                (b)    the amount of any applicable withholding tax;

 

                (c)    the prescribed fee for the application.

 

       (4)    The application must include a declaration about a spouse in accordance with Section 214.

 

       (5)    An application must include a statement by the owner that the owner understands that any funds withdrawn from the LIRA or LIF are not exempt from execution, seizure or attachment under Section 89 of the Act.

 

       (6)    An owner must provide accurate and complete information in their application and any accompanying documents.


Declaration about a spouse for withdrawal from LIRA or LIF

214 Any of the following documents constitutes a declaration about a spouse:

 

                (a)    for an owner who has a spouse, either

 

                         (i)     a statement signed and dated by the owner’s spouse in the presence of a witness other than the owner that includes all of the following:

 

                                  (A)   that the spouse is aware of the pension entitlements under the LIRA or LIF,

 

                                  (B)   that the spouse is aware of the consequences of withdrawing funds from the LIRA or LIF,

 

                                  (C)   that the spouse agrees to the withdrawal, or

 

                         (ii)    a statement signed and dated by the owner attesting to the fact that, on the signing date, they are living separate and apart from their spouse with no reasonable prospect of resuming cohabitation and that at least 1 of the following conditions applies:

 

                                  (A)   the spouse delivered a written waiver to the financial institution providing the LIRA or LIF with respect to the amount that is the subject of the withdrawal, in accordance with

 

                                           (I)     for a LIRA, Section 6 of Schedule 3: Nova Scotia LIRA Addendum,

 

                                           (II)   for a LIF, Section 19 of Schedule: 4 Nova Scotia LIF Addendum,

 

                                  (B)   the spouse is not entitled to receive an amount in respect of the LIRA or LIF in accordance with the terms of a domestic contract for the division of a LIRA or LIF,

 

                                  (C)   the spouse is not entitled to receive an amount in respect of the LIRA or LIF by court order issued under Section 74 of the Act;

 

                (b)    for an owner who does not have a spouse, a statement signed and dated by the owner attesting to the fact that the owner does not have a spouse.


Mortgage default circumstance application information

215 In an application under a mortgage default circumstance, an owner must include a copy of the written demand in respect of the default on the mortgage debt secured against the owner’s principal residence, setting out the amount required to pay the mortgage debt in default and all directly related enforcement costs to bring the mortgage into good standing, together with all of the following information or documents:

 

                (a)    a statement of the amount of the regular monthly payments required to be made in relation to the mortgage debt;

 

                (b)    the civic address of the owner’s principal residence.


Medical expenses circumstance application information

216 An owner must include all of the following in an application under a medical expense circumstance:

 

                (a)    copies of receipts or estimates for the medical expenses;

 

                (b)    a written opinion of a physician or dentist indicating that, in their opinion, the expenses are necessary to treat an illness or disability;

 

                (c)    a statement signed and dated by the owner that indicates any coverage that is or may be available to the owner for the expenses from insurance or from a benefit plan, government program or other source.


Rental default circumstance application information

217 In an application under a rental default circumstance, the owner must include a copy of the written demand in respect of the arrears in the payment of rent on the owner’s principal residence, setting out the amount required to pay the rental arrears and all directly related enforcement costs and reinstate the tenancy.


Reduced income circumstance application information

218 An owner must include all of the following in an application under a reduced income circumstance:

 

                (a)    a statement signed and dated by the owner that sets out the owner’s anticipated total income from all sources before taxes for the 12-month period immediately after the signing date;

 

                (b)    copies of any documents showing income received by the owner in the 12-month period immediately before the signing date;

 

                (c)    copies of any documents showing income expected to be received by the owner in the 12-month period immediately after the signing date;

 

                (d)    a copy of the owner’s most recent notice of assessment or reassessment, or equivalent documents, issued by the Canada Revenue Agency.


Superintendent may require additional information

219 (1)    Before consenting or refusing consent to an application, the Superintendent may require any of the following additional information:

 

                (a)    further evidence of the circumstance of financial hardship in addition to the evidence submitted under Sections 215 to 218 with their application under Section 213;

 

                (b)    information relating to the application and accompanying documents that the Superintendent considers necessary to assist in understanding the documents or to verify their authenticity.

 

       (2)    An owner must provide any additional evidence and information required under subsection (1) in the form and manner specified by the Superintendent.


Superintendent entitled to rely on information

220 In consenting or refusing consent to an application, the Superintendent is entitled to rely on the information provided in the application, the accompanying documents and any additional evidence and information provided under Section 219.


Stale-dated document not valid for application

221 A document submitted for the purposes of an application made under a circumstance of financial hardship is not valid and must not be used by the Superintendent to process the application if the document is signed before the following date:

 

                (a)    for a document that requires the signature of the owner or the owner’s spouse, 60 days before the date the Superintendent receives it;

 

                (b)    for a document that requires the signature of someone other than as described in clause (a), 12 months before the date the Superintendent receives it.


Only 1 application in 12-month period

222 (1)    Except as provided in subsection (3), only 1 application in each circumstance of financial hardship may be made during any 12-month period in relation to a particular person.

 

       (2)    The 12-month period referred to in subsection (1) begins on the date that an application in relation to a particular person is received by the Superintendent.

 

       (3)    An application that does not result in a withdrawal does not count for the purposes of subsection (1).


Calculating maximum consented amounts

223 (1)    In an application under a mortgage default circumstance, the consented amount must not exceed the amount sufficient to pay the mortgage debt in default and all directly related enforcement costs required to bring the mortgage into good standing.

 

       (2)    In an application under a rental default circumstance, the net amount may not exceed the amount required to pay the rental arrears and all directly related enforcement costs and reinstate the tenancy.

 

       (3)    In an application under a medical expense circumstance, the consented amount must not exceed the total of the following amounts:

 

                (a)    an amount sufficient to pay any medical expenses actually incurred within the 12-month period immediately preceding the signing date;

 

                (b)    an amount sufficient to pay any medical expenses anticipated to be incurred within the 12-month period immediately after the signing date.

 

       (4)    In an application under a reduced income circumstance, the consented amount must not exceed the amount determined by the following formula:

 

maximum consented amount = (50% of YMPE) - (75% of ATI)

 

in which

 

                YMPE =   Year’s Maximum Pensionable Earnings for the year in which the application is signed by the owner

 

                ATI =        the owner’s anticipated total income from all sources before taxes determined in accordance with subsection (4) for the 12-month period immediately following the signing date.

 

       (5)    An owner’s anticipated total income from all sources before taxes in subsection (3) does not include any of the following:

 

                (a)    any withdrawals in circumstances under Sections 212 to 230;

 

                (b)    a refund or repayment of taxes paid to a Canadian jurisdiction;

 

                (c)    a refundable tax credit;

 

                (d)    income from sources enumerated in Sections 52, 52A, 53 and 53A of the Employment Support and Income Assistance Regulations made under the Employment Support and Income Assistance Act and categorized in those Sections as not being “chargeable income”;

 

                (e)    child support payments received under a court order or an agreement.


Consented amount may be lower than requested

224 (1)    Subject to subsection (2), a consented amount may be less than the amount requested in an owner’s application.

 

       (2)    A consented amount must be at least $500.


Subsequent applications prohibited if funds withdrawn

225 (1)    An application may not be made under a mortgage default circumstance if the Superintendent previously consented to an application from the same owner under a mortgage default circumstance and funds were withdrawn from the owner’s LIRA or LIF under that previous application.

 

       (2)    An application may not be made under a rental default circumstance if the Superintendent previously consented to an application from the same owner under a rental default circumstance and funds were withdrawn from the owner’s LIRA or LIF under that previous application.


Superintendent’s decision

226 (1)    The Superintendent may consent or refuse to consent to an application.

 

       (2)    The Superintendent’s decision on an application is final and not subject to appeal.


Notification of decision

227 The Superintendent must notify an owner in writing of the Superintendent’s decision on their application within a reasonable period after the date the Superintendent receives the owner’s completed application, together with all documents and any additional evidence and information required by the Superintendent.


Owner authorized to receive payment

228 If the Superintendent, upon application, consents to a withdrawal, the owner is authorized to receive payment of the consented amount in accordance with these regulations.


Payment after consent

229 (1)    A consent by the Superintendent under subsection 91(5) of the Act to a withdrawal authorizes the financial institution that provides the LIRA or LIF to pay

 

                (a)    the consented amount to the owner; and

 

                (b)    the prescribed fee for the application to the Minister of Finance.

 

       (2)    Payment of the consented amount may be made in any of the following forms:

 

                (a)    a lump sum payment;

 

                (b)    transfer to a registered retirement savings arrangement designated by the owner.

 

       (3)    A financial institution must pay or transfer the consented amount no later than 30 days after the date it receives the Superintendent’s written consent.


Stale-dated consent is nullity

230 A consent by the Superintendent under subsection 91(5) of the Act is a nullity if the financial institution receives it later than 12 months after the date the consent is signed by the Superintendent.


Withdrawal from LIRA or LIF in circumstances of shortened life expectancy

231 (1)    An owner may apply in an approved form to the financial institution that provides their LIRA or LIF to withdraw all or part of the money in their LIRA or LIF if, on the date the owner signs the application, they have an illness or physical disability that is likely to shorten their life expectancy to less than 2 years.

 

       (2)    An application under subsection (1) must be signed by the owner and accompanied by all of the following documents:

 

                (a)    a statement signed by a physician that, in the opinion of the physician, the owner has an illness or physical disability that is likely to shorten their life expectancy to less than 2 years.

 

                (b)    a declaration about a spouse in accordance with Section 214, or a statement signed by the owner attesting to the fact that none of the money in the LIRA or LIF is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

 

       (3)    A contract governing a LIRA or LIF must include all of the following terms, and any contract that does not contain them is deemed to include them:

 

                (a)    that the financial institution is entitled to rely upon the information provided by the owner in an application to withdraw money from the owner’s LIRA or LIF;

 

                (b)    that an application that meets the requirements of the Act and these regulations constitutes authorization to the financial institution to make the payment from the LIRA or LIF in accordance with the Act and the regulations;

 

                (c)    that the financial institution is required to make the payment to which the owner is entitled no later than 30 days after the date the financial institution receives the completed application and accompanying documents.


Withdrawal from LIRA or LIF in circumstances of non-residency

232 (1)    An owner may apply in an approved form to the financial institution that provides their LIRA or LIF to withdraw all or part of the money in their LIRA or LIF because they are no longer a resident of Canada if

 

                (a)    on the date the owner signs the application, they are a non-resident of Canada as determined by the Canada Revenue Agency for the purposes of the federal Income Tax Act; and

 

                (b)    the application is made 24 months or later after the date they departed from Canada.

 

       (2)    An application under subsection (1) must be signed by the owner and accompanied by all of the following documents:

 

                (a)    a written determination from the Canada Revenue Agency that the person is a non-resident for the purposes of the federal Income Tax Act;

 

                (b)    a declaration about a spouse in accordance with Section 214, or a statement signed by the owner attesting to the fact that none of the money in the LIRA or LIF is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.                                                                    

 

       (3)    A contract governing a LIRA or LIF must include all of the following terms, and any contract that does not contain them is deemed to include them:

 

                (a)    that the financial institution is entitled to rely upon the information provided by the owner in an application to withdraw money from the owner’s fund or account;

 

                (b)    that an application that meets the requirements of the Act and these regulations constitutes authorization to the financial institution to make the payment from the fund or account in accordance with the Act and the regulations;

 

                (c)    that the financial institution is required to make the payment to which the owner is entitled no later than 30 days after the date the financial institution receives the completed application and accompanying documents.


Withdrawal of small amounts from LIRA or LIF at age 65

233 (1)    An owner who is at least 65 years old may apply in an approved form to the financial institution that provides their LIRA or LIF to withdraw all or part of the money in their LIRA or LIF or to transfer the assets of their LIRA or LIF to a registered retirement savings arrangement if, when they sign the application, the value of all assets in all LIRAs and LIFs owned by the owner is less than 50% of the Year’s Maximum Pensionable Earnings for that calendar year.

 

       (2)    An application under subsection (1) must be signed by the owner and accompanied by 1 of the following documents:

 

                (a)    a statement signed by the owner attesting to the fact that none of the money in the LIRA or LIF is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner;

 

                (b)    if a statement cannot be provided under clause (a), a declaration about a spouse in accordance with Section 214.

 

       (3)    If the assets in the LIRA or LIF consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

 

       (4)    A contract governing a LIRA or LIF must include all of the following terms, and any contract that does not contain them is deemed to include them:

 

                (a)    that the financial institution is entitled to rely upon the information provided by the owner in an application to withdraw or transfer money from their LIRA or LIF;

 

                (b)    that an application that meets the requirements of the Act and these regulations constitutes authorization to the financial institution to make the payment or transfer from the LIRA or LIF in accordance with the Act and the regulations;

 

                (c)    that the value of all of the assets in all LIRAs and LIFs owned by the owner on the date they sign an application to withdraw or transfer funds at age 65 must be determined using the most recent statement about each LIRA or LIF given to the owner dated no earlier than 1 year before the owner signs the application;

 

                (d)    that the financial institution is required to make the payment to which the owner is entitled no later than 30 days after the date the financial institution receives the completed application and accompanying documents.


Part 7: Division of Pension Entitlement and Compliance with Attachment


Division of Pension Entitlement Between Spouses


Definitions for division of pension entitlement—Sections 235 to 252

234 In this Section and Sections 235 to 252,

 

“court order” means an order of the Supreme Court of Nova Scotia, or an equivalent order of a court of competent jurisdiction made outside the Province and enforceable in the Province, that provides for a division;

Definition of “court order” amended: O.I.C. 2016-111, N.S. Reg. 89/2016.

 

“division” means a division of any of the following between the named person and that person’s spouse made in accordance with Section 74 of the Act by court order, domestic contract or otherwise as prescribed by these regulations:

 

                         (i)     a pension benefit of a member,

 

                         (ii)    a deferred pension of a former member,

 

                         (iii)   a pension of a retired member,

 

                         (iv)   a LIRA of an owner,

 

                         (v)    a LIF of an owner;

 

“limited member” means a person designated as a limited member of a pension plan, in accordance with Section 240;

 

“net investment returns” means interest, dividends and realized and unrealized capital gains and losses, less any related investment expenses normally charged to investment earnings;

 

“pensionable service” means the months or parts of months in respect of which a pension benefit, deferred pension or pension accrues under a pension plan and includes all of the following:

 

                         (i)     the months or parts of months in respect of which a pension benefit, deferred pension or pension was earned by a member, former member or retired member under another pension plan, if the other pension plan has been transferred to the plan,

 

                         (ii)    the years of membership, or parts thereof, in a pooled registered pension plan during which contributions were made in respect of that pooled registered pension plan, if the pooled registered pension plan has been transferred to the plan;

Definition of “pensionable service” replaced: O.I.C. 2016-111, N.S. Reg. 89/2016.

 

“proportionate share” of a pension benefit means,

 

                         (i)     for a defined contribution benefit, the share of the benefit to which the spouse of the member, former member or retired member is entitled, calculated in accordance with Section 247,

 

                         (ii)    for a LIRA or LIF, the share of the money in the LIRA or LIF the spouse of the owner is entitled to calculated in accordance with Section 248,

 

                         (iii)   for a pension or a defined benefit, a share of the pension or defined benefit calculated in accordance with Section 249;

 

“separation date” means the date a spouse becomes entitled to a division;

Definition of “separation date” replaced: O.I.C. 2016-111, N.S. Reg. 89/2016.

 

“separate pension” means the proportionate share of a member’s, former member’s or retired member’s pension that is established in favour of a spouse.


Application of Sections 234 to 252

235 (1)    Sections 234 to 252 apply to LIRAs and LIFs, as if they were deferred pensions under the Act, with the following changes:

 

                (a)    “deferred pension” must be read as including a “LIRA or LIF”;

 

                (b)    “former member” must be read as including an “owner”.

 

       (2)    Except as provided in subsection (3), if a spouse is entitled to an interest i