This consolidation is unofficial and is for reference only. For the official version of the regulations, consult the original documents on file with the Registry of Regulations, or refer to the Royal Gazette Part II. 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 the Registry that are not yet included in this consolidation. Although every effort has been made to ensure the accuracy of this electronic version, the Registry of Regulations assumes no responsibility for any discrepancies that may have resulted from reformatting. This electronic version is copyright © 2009, Province of Nova Scotia, all rights reserved. It is for your personal use and may not be copied for the purposes of resale in this or any other form.
Pension Benefits Regulations
made under Section 105 of the
Pension Benefits Act
R.S.N.S. 1989, c. 340
O.I.C. 2002-607 (December 20, 2002, effective January 1, 2003), N.S. Reg. 164/2002
as amended up to O.I.C. 2009-164 (March 31, 2009, effective April 1, 2009), N.S. Reg. 142/2009
[Please note: Text does not include amendments made by N.S. Reg. 313/2009 (O.I.C. 2009-464)]
Table of Contents
Registration of a pension plan
Part 2 - Funding and Administration of Pension Plans
Payments - multi-employer plans and defined benefit or defined contribution plans
Payments - specified multi-employer plans
Use of actuarial gain and solvency gain
Funding of escalated adjustments
Actuarial valuation reports and certificates
Commuted value and portability of pension benefits
LIF filing requirements and Superintendent’s list
Administrator’s duties respecting transfer to a LIF
Insurance contract requirements
Cost of complying with an attachment
Withdrawal of money by owner at age 65 or with shortened life expectancy
Surplus withdrawal application - continuing plan
Notices and statements required on wind-up
Notice and explanation of plan amendment
Termination statement - deferred
Termination statements - refunds
Termination statement - retirement
Information available on request
Conflict of interest—multi-employer pension plan
Notices and summaries respecting contributions—multi-employer pension plan
Individual level-premium contracts
Determination of joint and survivor pension
Filing of reciprocal transfer agreements
Refund of contributions not locked in
Apportionment of benefits - final average or best average earnings plans
Reciprocal transfer agreement - 50% rule
Offsets from pre-retirement death benefits
Reduction of bridging benefits
Part 3 - Division of Pension Entitlement
Information to be provided to a limited member
Transfer from pension plan to locked-in retirement plan
Limited member's separate pension resulting from division of a defined benefit
Death of a member or limited member entitled to a defined benefit
Calculation of proportionate share of a defined contribution benefit
Calculation of proportionate share of a pension, defined benefit or pre-retirement death benefit
Adjustment of a member's or former member's defined benefit
Administrator must give notice to spouse or common-law partner if member's interest may be affected
Part 4–Withdrawals in Circumstances of Financial Hardship
Prescribed retirement savings arrangements
Prescribed circumstances of financial hardship
Form and content of application
Superintendent may require additional information
Superintendent entitled to rely on information
Nullity of stale-dated document
Only 1 application in 12-month period
Net amount may be lower than requested
Subsequent application related to mortgage default denied
Superintendent’s decision final
Form 1 - Application for Registration of Pension Plan
Form 2 - Annual Information Return
Form 3 - Application to Transfer Commuted Value of Deferred Pension
Form 4 - Waiver of Joint and Survivor Pension
Form 5 - Request by Spouse or Common-Law Partner for Information Respecting
Member's or Former Member's Pension or Pension Benefit
Form 6 - Request for Designation as Limited Member of Pension Plan
Form 7 - Request for Transfer of a Defined Contribution Benefit or a Defined Benefit
Form 9 - Application to a Financial Institution for Payment of
Form 10 - Application to a Financial Institution to Withdraw Money
Form 11 - Application to a Financial Institution to Withdraw Money From a LIRA
or LIF because of considerably shortened life expectancy
Schedule III - Permitted Investments
Maximum LIF withdrawal - no provision for temporary income
Maximum LIF withdrawal - with temporary income
Maximum income payable when the financial institution guarantees the rate of return of the LIF
Information to be provided by the financial institution
Information provided upon transfer of additional amounts to a LIF
Transferring assets from a LIF
1 These regulations may be cited as the Pension Benefits Regulations.
2 In these regulations,
(a) “accountant” means a public accountant licensed under the Public Accountancy Act;
(aa) “Act” means the Pension Benefits Act;
Clause 2(aa) added: O.I.C. 2007-375, N.S. Reg. 329/2007.
(b) “actuarial gain” means the sum, if positive, of the following items as of the review date for a going concern valuation:
(i) the gain to the pension plan during the period since the review date of the immediately preceding going concern valuation resulting from the difference between actual experience and the experience expected by the actuarial assumptions on which that valuation was based, and
(ii) the amount by which the going concern liabilities decrease as a result of an amendment to the plan, and
(iii) the amount by which the going concern liabilities decrease or the going concern assets increase as a result of a change in actuarial methods or assumptions upon which the current going concern valuation is based,
provided that any of the items in subclauses (i), (ii) or (iii) shall be counted as a negative in the calculation of the sum where
(iv) the experience of the plan has resulted in a loss rather than a gain,
(v) an amendment has increased the going concern liabilities, or
(vi) a change in actuarial methods or assumptions has resulted in an increase in going concern liabilities or a decrease in going concern assets, as the case may be;
(c) “actuarial loss” means the sum, if negative, of the items in subclauses (b)(i), (ii) and (iii), as of the review date of a going concern actuarial valuation;
(d) “actuary” means a Fellow of the Canadian Institute of Actuaries;
(e) “escalated adjustment” means an adjustment made after the termination of a member of a pension plan to his or her pension or deferred pension, which adjustment is not capable of being determined with certainty at the time the plan or an amendment thereto is submitted 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 the adjustment is an increase in the pension or deferred pension at a fixed annual percentage specified in the plan;
(f) “financial institution” means
(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 that is primarily engaged in dealing in securities, including portfolio management and investment counselling, or
(viii) a foreign institution;
(g) “foreign institution” means an entity that is
(i) engaged in the business of banking, the trust, loan or insurance business, the business of a cooperative credit society or the business of dealing in securities or is otherwise engaged primarily in the business of providing financial services, and
(ii) incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province;
(h) “going concern assets” means the value of the assets of a pension plan including due and accrued income determined on the basis of a going concern valuation;
(i) “going concern liabilities” means the present value of the accrued benefits of a pension plan determined on the basis of a going concern valuation;
(j) “going concern unfunded actuarial liability” means the excess of going concern liabilities over going concern assets;
(k) “going concern valuation” means a valuation of assets and liabilities of a pension plan using methods and actuarial assumptions that are consistent with accepted actuarial practice for the valuation of a continuing pension plan;
(l) “government” means Her Majesty in right of Nova Scotia, an agent of Her Majesty, or a municipality;
Clause 2(l) amended: O.I.C. 2006-498, N.S. Reg. 213/2006.
(m) “LIF” means a life income fund, being an RRIF that meets the requirements set out in Section 23;
(n) “LIRA” means a locked-in retirement account, being an RRSP that meets the requirements set out in Section 22, including a contract made before January 1, 2003, to establish an RRSP for the purposes of a transfer under clause 50(1)(b) of the Act;
(na) “municipality” means a municipality as defined in the Municipal Government Act;
Clause 2(na) added: O.I.C. 2006-498, N.S. Reg. 213/2006.
(o) “normal cost” means the cost of pension benefits and ancillary benefits with respect to a fiscal year of a pension plan determined in accordance with the going concern valuation methods and assumptions used;
(p) “past service unfunded actuarial liability” means the amount of going concern unfunded actuarial liability resulting from
(i) the provision of benefits with respect to employment prior to the effective date of the pension plan, or
(ii) an amendment to a plan that provides benefits for employment prior to the date of the amendment
if the employment had not previously been recognized for purposes of the provision of pension benefits;
(q) “post-judgment interest rate” means the bank rate at the end of the first day of the last month of the quarter preceding the quarter in which the date of the order falls, rounded to the next higher whole number where the bank rate includes a fraction, plus 1%;
(r) “review date” means the date as of which the assets and liabilities are valued for the purposes of the going concern and solvency valuations in a report under Section 4, 12 or 13;
(s) “RRSP” means a registered retirement savings plan established in accordance with the Income Tax Act (Canada);
(t) “RRIF” means a registered retirement income fund established in accordance with the Income Tax Act (Canada);
(u) “significant shareholder” means an individual who alone or in combination with a parent, spouse or common-law partner 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 who contributes to the pension plan;
(v) “solvency deficiency” means a deficiency determined by a solvency valuation performed in accordance with Section 16;
(w) “solvency gain” means the sum, if positive, as of a review date for a solvency valuation performed in accordance with Section 16, of
(i) the gain to the pension plan during the period since the review date of the immediately preceding solvency valuation resulting from the difference between actual experience and the experience expected by the actuarial assumptions on which that valuation was based, and
(ii) the amount by which the solvency liabilities decrease or the solvency assets increase as a result of a change in the actuarial methods or assumptions upon which the current solvency valuation is based,
provided that either of the items in subclauses (i) and (ii) shall be counted as a negative in the calculation of the sum where the experience of the plan has resulted in a loss rather than a gain or where a change in actuarial methods or assumptions has resulted in an increase in solvency liabilities or a decrease in the solvency assets, as the case may be;
(x) “special allowance” means a bridging benefit, the amount of which may be adjusted based on the income of the former member resulting from employment subsequent to retirement;
(y) “special payment” means a payment or one of a series of payments determined for the purpose of liquidating a going concern unfunded actuarial liability or solvency deficiency; and
(z) “university” means a designated university under the University Foundations Act.
Clause 2(z) added: O.I.C. 2005-162, N.S. Reg. 88/2005.
Registration of a pension plan
3 (1) An application for registration of a pension plan must be accompanied by a fee of $5.25 for each member of the pension plan in Nova Scotia or in a designated province, but the total fee payable must be not less than $104.96 and not more than $7871.78.
Subsection 3(1) amended: O.I.C. 2009-164, N.S. Reg. 142/2009.
(2) For a pension plan administered by the Superintendent under an agreement with the Government of Canada under Section 7 of the Act, an application for registration must be accompanied by a fee of $5.25 for each member of the plan, but the total fee payable must be not less than $104.96 and not more than $7871.78.
Subsection 3(2) amended: O.I.C. 2009-164, N.S. Reg. 142/2009.
(3) An application under subsection 15(1) of the Act for registration of a pension plan must be made within 90 days after the plan is established.
4 (1) If an amendment to a pension plan affects the cost of benefits provided by the plan, creates an unfunded liability or otherwise affects the solvency or funding of the plan, the administrator must have the plan reviewed or the latest review revised as of the date the amendment is made, but for the purposes of this Section, if the plan is reviewed, the review date is deemed to be the last day of the fiscal year preceding that in which the amendment was made.
(1A) If an amendment made to a municipality pension plan funded under subclause 6(1)(d)(iii) affects the costs of the benefits provided by the plan, creates an unfunded liability or otherwise affects the solvency or funding of the plan, the costs of the amendment must be fully paid to the pension fund at the time the amendment is made.
Subsection 4(1A) added: O.I.C. 2006-498, N.S. Reg. 213/2006.
(2) Subsection (1) does not apply with respect to a pension plan if all the pension benefits provided under the plan are defined contribution benefits.
(3) If the latest review of a pension plan is revised pursuant to subsection (1), the administrator shall, within 6 months after the date the amendment is required to be submitted for registration, file a cost certificate showing the effect that the amendment will have on the going concern liabilities, special payments and normal actuarial cost and the changes that will result to the cost certificate filed in respect of the immediately preceding review date.
(4) If the Superintendent considers that insufficient information has been provided in the cost certificate filed under subsection (3), the Superintendent may require that an actuarial valuation report be filed in addition to that cost certificate.
(5) If the Superintendent has required that an administrator give notice of a proposed amendment under subsection 32(1) of the Act, the administrator must certify in writing to the Superintendent, within 30 days after the date on which the last of the notices was transmitted, details as to the classes of persons who received notice, the date the last notice was distributed and that notice has been provided as required.
(6) An administrator must file with the Superintendent the explanation required to be provided under subsection 32(3) of the Act (notice after registration) within 6 months following registration of the amendment.
Part 2 - Funding and Administration of Pension Plans
5 (1) A pension plan must include a provision for funding of pension benefits and any other benefits provided under the plan that sets out the obligation of the employer, or any person required to make contributions on behalf of the employer, to contribute both in respect of the normal cost of the benefits and any going concern unfunded actuarial liabilities and solvency deficiencies under the plan.
(2) An employer, or any person required to make contributions on behalf of the employer, must make payments to the pension fund or to the insurance company, as applicable, of amounts that are not less than the sum of
(a) any sums received from employees, including money withheld from employees, whether by payroll deduction or otherwise, as the employees' contributions to the pension plan;
(b) the balance of the normal cost; and
(c) special payments determined in accordance with Section 6.
(3) The payments referred to in subsection (2) must be made within the following time limits:
(a) all sums received by the employer from an employee or deducted from an employee's pay as the employee's contribution to the pension plan, within 30 days following the month in which the sum was received or deducted;
(b) employer contributions in respect of the normal cost, in monthly instalments not later than 30 days following the month for which contributions are payable, the amount of each instalment to be either a fixed dollar amount, a fixed dollar amount per employee or member of the plan or a fixed percentage of either covered payroll or employee contributions, in accordance with such contributions as are certified under clause 12(1)(a) or 13(2)(a); and
(c) all other special payments determined in accordance with Section 6, by equal monthly instalments throughout the fiscal year of the plan, within 30 days following the end of each month.
(4) If the period covered by a report filed under Section 4, 12 or 13 has passed and no new report has been filed with the Superintendent under Section 4 or 13, the employer must continue to make payments in accordance with the requirements of the most recent report filed until a new report is filed.
(5) This Section does not apply to a multi-employer pension plan established pursuant to a collective agreement or trust agreement, nor to a pension plan that provides defined benefits under which the obligation of an employer to contribute to the pension fund is limited to a fixed amount set out in a collective agreement.
6 (1) Subject to subsections (2) and (3) and Section 9, the special payments to amortize a going concern unfunded actuarial liability or solvency deficiency must not be less than the sum of
(a) any remaining special payments determined in accordance with subsection (5) with respect to an “initial unfunded liability” or “experience deficiency” as defined in regulations made by Order in Council 76-1421 dated December 7, 1976, and in existence on December 31, 1987;
(b) the amount required to liquidate by equal instalments, with interest at the going concern valuation rate, any other going concern unfunded actuarial liability within a period of 15 years from the date on which the liability arose;
(c) the amount required to liquidate that portion of any solvency deficiency at January 1, 1988, created by the application of Section 79 of the Act, by equal instalments, with interest at the solvency valuation interest rate, within 15 years after the solvency valuation at January 1, 1988; and
(d) the amount required to liquidate the whole or part of any solvency deficiency, other than one identified in clause (c), by equal instalments, with interest at the solvency valuation interest rate, as follows:
(i) the amount required to fully liquidate the solvency deficiency within 5 years after the review date of the solvency valuation in which the solvency deficiency is identified,
(ii) for a solvency deficiency arising before January 1, 2006, under a university pension plan, the amount required to fully liquidate the solvency deficiency within 15 years after the review date of the solvency valuation in which the solvency deficiency is identified,
(iii) for the remaining balance of a solvency deficiency arising between December 30, 2005, and August 30, 2006, and for a solvency deficiency arising between August 30, 2006, and August 30, 2016, under a municipality pension plan, the amount required to liquidate that part of the solvency deficiency that is greater than 15% of the solvency liabilities within 5 years after the review date of the solvency valuation in which the solvency deficiency is identified.
Clause 6(1)(d) replaced: O.I.C. 2007-374, N.S. Reg. 328/2007.
(2) If a new series of monthly instalments is commenced under clause (1)(d), the schedule of special payments referred to in clauses (1)(a), (b) and (c) with respect to any portion of an amortization period which extends beyond the 5-year period established for the new series of payments under clause (1)(d) must be reduced or eliminated so that the total present value of all special payments, based on the interest assumption used in the going concern valuation, will be equal to the going concern unfunded actuarial liability.
(3) As an alternative to the calculation of minimum special payments under clauses (1) (b), (c) and (d), the payments may be determined by reference to a schedule of payments determined in accordance with subsection (4)
(a) as of the date the going concern unfunded actuarial liability arose, for payments referred to in clause (1)(b); or
(b) as of the date of the solvency valuation, for payments referred to in clauses (1)(c) and (d).
(4) The schedule of payments referred to in subsection (3) must be determined as follows:
(a) each scheduled payment is a constant percentage of the projected future payroll of members at the date of establishment of the schedule;
(b) the present value of the scheduled payments at the date of establishment of the schedule is equal to the amount of the liability being liquidated;
(c) the projected future payroll is determined using the same actuarial assumptions as used in the going concern valuation where the going concern actuarial unfunded liability was determined;
(d) the amortization periods for each series of scheduled payments are the same as the respective periods under clauses (1)(b), (c) and (d); and
(e) the present value of scheduled payments is determined
(i) for payments referred to in clause (1)(b), using the interest rate assumed in the going concern valuation, and
(ii) for payments referred to in clauses (1)(c) and (d), using the interest rate assumed in the solvency valuation.
(5) The minimum remaining special payments referred to in clause (1)(a) must be determined after using any unused actuarial gains in existence on December 31, 1987.
7 Despite clause 6(1)(b), in respect of the Pension Plan for Employees of Nova Scotia Power Incorporated on or after August 10, 1992, clause 6(1)(b) must be read, construed, interpreted and given effect for the initial unfunded liability as at August 10, 1992, as if the words “thirty years” were substituted for the words “fifteen years” wherever they appear in that clause.
Payments - multi-employer plans and defined benefit or defined contribution plans
8 (1) A multi-employer pension plan established pursuant to a collective agreement or trust agreement, or a pension plan that provides defined benefits under which the obligation of an employer to contribute to the pension plan is 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 of an employer, or any person required to make contributions on behalf of the employer, to contribute in respect of the plan.
(2) For a pension plan referred to in subsection (1), an employer, or any person required to make contributions on behalf of an employer, must make payments to the pension fund or the insurance company, as applicable, of amounts that are not less than
(a) any sums received from an employee, including money withheld from an employee, whether by payroll deduction or otherwise, as the employee's contribution to the pension plan; and
(b) amounts that are required by the applicable collective agreement to be paid by the employer or the person required to make contributions on behalf of the employer.
(3) The payments referred to in subsection (2) must be made within the following time limits:
(a) all sums received by the employer from an employee or deducted from an employee's pay as the employee's contribution to the pension plan, within 30 days following the month in which the sums were received or deducted; and
(b) all other amounts, within the time limit specified by the applicable collective agreement, but in any event within 30 days following the month in which the period of employment giving rise to the payments occurred.
(4) For a pension plan referred to in subsection (1), an actuary must, as part of a report required pursuant to Section 4, 12 or 13, perform such tests as are necessary to determine the sufficiency of the contributions required by the collective agreement or trust agreement to provide for the benefits set out in the plan, without consideration of any provision for reduction of benefits set out in the plan.
(5) If, as a result of tests performed under subsection (4), an actuary determines that the required contributions are not sufficient to provide for the benefits under the plan, the actuary must propose options available to the administrator of the plan that if taken will result in the sufficiency of the required contributions to provide for the benefits under the plan.
(6) If an actuary proposes options in accordance with subsection (5),
(a) the actuary must file a copy of the proposal with the Superintendent within 30 days of submitting the proposal to the administrator and within the time period referred to in subsection 13(5);
(b) within 180 days following the date on which the actuary submitted the proposal to the administrator, the administrator must take such action as will result in the required contributions being sufficient to provide for benefits under the plan;
(c) within 180 days following the date on which the actuary submitted the report to the administrator, the administrator must advise the Superintendent of the action taken in order for the required contributions to be sufficient to provide for benefits under the plan and must file all documents relevant to the action taken.
Payments - specified multi-employer plans
8A (1) In this Section, “specified multi-employer pension plan” means a multi-employer pension plan that is designated as a specified multi-employer plan under the Income Tax Act (Canada).
(2) An administrator of a specified multi-employer pension plan may elect that subsections (4) to (11), instead of subsections 8(4), 8(5) and 8(6), apply to a report filed pursuant to Section 4, 12 or 13, if the valuation date of the report is before November 1, 2010.
(3) An administrator of a specified multi-employer pension plan may make an election pursuant to subsection (2) only once.
(4) If a report filed pursuant to Section 4, 12 or 13 for a specified multi-employer pension plan discloses a going concern unfunded liability, the liability must be liquidated, with interest at the going concern valuation interest rate, by equal monthly instalments over a period of the lesser of
(a) 10 years, beginning on the valuation date of the report; and
(b) the remainder of the amortization period under which the unfunded liability was initially established.
(5) The required contributions to a specified multi-employer pension plan are sufficient if, for each year of the period covered by the report, they are not less than the sum of the following amounts determined under a going concern valuation:
(a) the normal cost of the plan;
(b) the special payments set out in a previous 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.
(6) Subsection (7) applies to a specified multi-employer pension plan if, after an amendment referred to in that subsection, the transfer ratio of the plan is lower than 0.9 or the ratio of the market value of the plan assets to the going concern liabilities is lower than 1.
(7) If a specified multi-employer pension plan is amended to increase pension benefits or ancillary benefits and if either of the conditions described in subsection (6) exists, any increase in the going concern unfunded liability as a result of 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 report in which the increase in the going concern unfunded liability was determined.
(8) Within 60 days after electing to have this Section apply to a report filed pursuant to Section 4, 12 or 13, the administrator of a specified multi-employer pension plan must give written notice of the election to each member and former member of the plan.
(9) The written notice required by subsection (8) must contain all of the following information:
(a) the name and Provincial registration number of the specified multi-employer pension plan;
(b) the name and contact information for the administrator;
(c) the transfer ratio of the plan and, if the plan is amended to increase pension benefits or ancillary benefits, the transfer ratio both before and after the amendment, effective on the valuation date of the report;
(d) an explanation of how the security of pension benefits and ancillary benefits for members and former members might be affected as a result of the election made under this Section.
(10) Within 60 days after filing a report to which this Section applies, an administrator must
(a) file a copy of the notice required by subsection (8) with the Superintendent; and
(b) give a copy of the notice required by subsection (8) to every employer who makes contributions to the specified multi-employer pension plan and to every bargaining agent who represents members of the plan.
(11) In addition to the requirements of subsection (10), an administrator who files a report to which this Section applies must give a copy of the notice required by subsection (8) to each person who, after the report is filed and before the next report is filed, will be eligible or is required to become a member of the specified multi-employer pension plan, and the notice must accompany the information required to be given to the person under subsection 31(1) of the Act.
Section 8A added: O.I.C. 2007-622, N.S. Reg. 450/2007.
Use of actuarial gain and solvency gain
9 (1) If a report with a review date on or after January 1, 1988, discloses
(a) an actuarial gain under the pension plan with respect to a period that begins on or after January 1, 1988; and
(b) that there is no new solvency deficiency nor any unamortized balance of any previous solvency deficiency first established on or after January 1, 1988,
if the actuarial gain is to be used, the amount of the actuarial gain must first be applied to reduce the outstanding balance of any going concern unfunded actuarial liability.
(2) If the outstanding balance of a going concern unfunded actuarial liability is reduced under subsection (1), the balance remaining may be reamortized over the same or a shorter period.
(3) If a report with a review date on or after January 1, 1988, discloses an actuarial gain and there is either a new solvency deficiency or an unamortized balance of a previous solvency deficiency, the amount of the actuarial gain must not be applied to reduce any previously scheduled special payments within the remaining amortization period for any solvency deficiency.
(4) If there is no going concern unfunded actuarial liability or solvency deficiency, the actuarial gain referred to in subsection (1) may be applied to reduce any employer contributions for normal cost.
(5) If an actuarial gain is not used as from the review date on which the actuarial gain is reported, any subsequent use of the actuarial gain must be subject to the requirements
(a) of subsection (1), if there is no remaining unamortized balance of a solvency deficiency at the time the actuarial gain is used; or
(b) of subsection (3), if there is any remaining balance of a solvency deficiency at the time the actuarial gain is used.
(6) A solvency gain must only be applied to reduce the total of any new solvency deficiency and the unamortized balances of any previous solvency deficiency and, if so applied,
(a) the remaining solvency deficiency may be reamortized over the same or a shorter period; and
(b) the remaining special payments with respect to any further going concern unfunded actuarial liabilities must be recalculated, taking into account the results of the current going concern valuation.
Funding of escalated adjustments
10 (1) If a pension plan provides for escalated adjustments, the estimated future costs of the escalated adjustments may be excluded from the funding requirements set out in Sections 5, 6 and 8.
(2) If an escalated adjustment has been made from the pension fund, the amounts, to the extent that they have not been prefunded, are deemed to be part of the normal cost.
(3) For the purposes of a report required by Section 12 or 13, factors attributable to an escalated adjustment may be excluded in determining the existence or amount of any going concern unfunded actuarial liability.
11 (1) If the rate of special payments has been greater than the minimum rate required under subsection 6(1) by the making of
(a) a special payment in advance; or
(b) an additional payment of any kind,
the amount of special payments for subsequent periods may be reduced provided that the outstanding balance of any going concern unfunded actuarial liability or solvency deficiency is at no time greater than it would have been had the special payment required under subsection 6(1) been made, taking into account the effect of any application of an actuarial gain or a solvency gain in accordance with Section 9.
(2) If the date of filing a report under Section 4, 12 or 13 is later than the review date of the report, the employer must pay into the pension fund, within 60 days of the filing of the report, all monthly amounts that have not yet been paid into the pension fund, calculated from the date on which they are required to be made to the date of filing the report with the Superintendent, plus interest at the going concern valuation rate or the solvency valuation rate as applicable.
Actuarial valuation reports and certificates
12 (1) Within 60 days or such longer period as approved by the Superintendent after the date of establishment of a pension plan, the administrator must submit an actuarial valuation report by a person authorized by Section 14 certifying, on the basis of a going concern valuation,
(a) the normal cost in the first year during which the plan is registered, and the rule for computing the cost in each subsequent year up to the date of the succeeding report;
(b) an estimate of the normal cost in each subsequent year up to the date of the succeeding report;
(c) if applicable, the estimated aggregate of employee contributions to the plan during each year up to the date of the succeeding report;
(d) the past service unfunded actuarial liability, if any, under the plan as at the date on which the plan qualified for registration;
(e) the special payments required to liquidate past service unfunded actuarial liability, if any, in accordance with Section 6;
(f) any other going concern unfunded actuarial liability;
(g) the special payments required to liquidate any going concern unfunded actuarial liability referred to in clause (f);
(h) that
(i) in the opinion of the person preparing the report, there is no solvency deficiency, or
(ii) there is a solvency deficiency and the special payments required to liquidate it; and
(i) if the plan provides for an escalated adjustment, whether and to what extent
(i) liability for the future cost of the adjustment has been included in the determination of any going concern unfunded actuarial liability, or
(ii) the cost for the escalated adjustment is included in the normal cost.
(2) A cost certificate must be filed with the actuarial valuation report required by subsection (1).
(3) If an insured pension plan is funded by level premiums extending not beyond the retirement age for each individual member, a cost certificate may certify the adequacy of the premiums to provide for the payment of all benefits under the plan in lieu of the matters required to be certified under subsection (1).
(4) A cost certificate referred to in subsections (2) and (3) must include
(a) the estimated cost of benefits under the pension plan and the contributions to the plan, showing separately employer and plan member contributions during the plan year in respect of which the cost certificate is prepared; and
(b) the formula for computing the cost of benefits, showing the formula for allocating the cost between the employer and the plan members for subsequent plan years.
(5) This Section does not apply with respect to a pension plan under which all the pension benefits under the plan are defined contribution benefits.
13 (1) The administrator of a pension plan must cause the plan to be reviewed and an actuarial valuation report and a cost certificate prepared by a person authorized by Section 14 not more than 3 years after the date of the establishment of the plan and at intervals of not more than 3 years thereafter.
(2) An actuarial valuation report required by subsection (1) shall certify on the basis of a going concern valuation
(a) the normal cost in the next year, and the rule for computing the cost in each subsequent year up to the date of the next report;
(b) an estimate of the normal cost in each subsequent year up to the date of the next report;
(c) if applicable, the estimated aggregate of employee contributions to the pension plan during each year up to the date of the next report;
(d) the present value of remaining future special payments established in certificates appended to previous reports;
(e) if the plan provides for an escalated adjustment, whether and to what extent
(i) liability for the future cost of the adjustment has been included in the determination of any going concern unfunded actuarial liability, or
(ii) the cost for the escalated adjustment is included in the normal cost;
(f) the actuarial gain or actuarial loss in the pension plan and,
(i) if there is an actuarial loss, the special payments that will liquidate any increase in a going concern unfunded actuarial liability resulting from the loss over a term not exceeding 15 years, and
(ii) if there is an actuarial gain, any intended application of the gain in accordance with Section 9;
(g) that
(i) in the opinion of the person preparing the report, there is no solvency deficiency, or
(ii) if there is a solvency deficiency at January 1, 1988, the amount of the solvency deficiency that is attributable to the application of Section 79 of the Act and the special payments required in order to liquidate the solvency deficiency over a period not exceeding 15 years commencing January 1, 1988,
(iii) subject to clause (iv) if there is a solvency deficiency, not including any solvency deficiency included in item (ii), the amount of any solvency deficiency and the special payments required in order to liquidate the solvency deficiency over a term not exceeding 5 years from the date of the earliest solvency valuation in which the solvency deficiency was determined, and the resulting adjustment in the schedule of other future special payments under the plan, and
(iv) if there is an unamortized balance of a previous solvency deficiency and there is a solvency gain, the amount of any solvency gain and any intended application of the gain in accordance with Section 9.
(3) If an insured pension plan is funded by level premiums extending not beyond the retirement age for each individual member, a cost certificate may certify the adequacy of the premiums to provide for the payment of all benefits under the plan in lieu of the matters required to be certified under subsection (2).
(4) A cost certificate referred to in this Section must include
(a) the estimated cost of benefits under the pension plan and the contributions to the plan, showing separately employer and plan member contributions during the plan year in respect of which the cost certificate is prepared; and
(b) the formula for computing the cost of benefits, showing the formula for allocating the cost between the employer and the plan members for subsequent plan years.
(5) The administrator shall file the actuarial valuation report and cost certificate with the Superintendent within 1 year of the review date established for the report referred to in subsection (1).
(6) This Section does not apply with respect to a pension plan under which all the pension benefits provided are defined contribution benefits.
14 The reports and certificates referred to in Sections 4, 12 and 13 and Section 75 of the Act (wind-up report) must be made by an actuary, except that reports and certificates in respect of
(a) a pension plan under which all pension benefits are defined contribution benefits;
(b) a fully insured pension plan that was established prior to January 1, 1988, underwritten by a contract or contracts with an insurance company and does not require any contributions to be made by employees; or
(c) a pension plan underwritten by a contract or contracts issued under the Government Annuities Act (Canada),
may be made by an accountant or a person authorized by the insurance company or the trust company responsible for administering the pension plan or pension fund or by the Annuities Branch, Department of Labour (Canada), as applicable.
15 An actuarial report filed with the Superintendent under Section 4, 12 or 13 or Section 75 of the Act (wind-up report) must be prepared using assumptions that are consistent with accepted actuarial practice and with the requirements of the Act and these regulations.
16 (1) To determine the existence of a solvency deficiency for the purposes of a report under Section 4, 12 or 13, a solvency valuation must be performed in the following manner:
(a) the solvency liabilities of a pension plan are not less than the liabilities of the pension plan determined as if the plan had been wound up, not taking into account liabilities for escalated adjustments or the requirements of Section 79 of the Act (member entitlements on wind-up);
Clause 16(1)(a) amended: O.I.C. 2004-487, N.S. Reg. 243/2004.
(b) for a multi-employer pension plan established pursuant to one or more collective agreements or a trust agreement, or a pension plan that provides defined benefits under which the obligation of an employer to contribute to the pension fund is limited to a fixed amount set out in a collective agreement, the solvency liabilities are determined on the basis of the benefits structure set out in the plan at the date of the valuation, without consideration of any provision for the possible reduction of such benefits;
(c) the solvency assets are the sum of
(i) the market value of investments held by the pension plan or a value related to the market value by means of an averaging method that stabilizes short-term fluctuations of market values over a period of not more than 5 years, plus any cash balances and accrued or receivable income items,
(ii) the present value of any remaining special payments established before January 1, 1988,
(iii) the present value of any special payments required to liquidate any solvency deficiencies created under the Act and established on January 1, 1988, and any past service unfunded actuarial liability established on or after January 1, 1988,
(iv) the present value of any other special payments established on or after January 1, 1988, that are scheduled for payment within 5 years of the review date, and
Subclause 16(1)(c)(iv) replaced: O.I.C. 2005-162, N.S. Reg. 88/2005.
(v) for a university pension plan, the present value of any other special payments established on or after January 1, 1988, and before January 1, 2006, that are scheduled for payment within 15 years of the date the special payment is established;
Subclause 16(1)(c)(v) added: O.I.C. 2005-162, N.S. Reg. 88/2005.
(d) the present values referred to in subclauses (c)(ii), (iii), (iv) and (v) are determined on the basis of the assumed interest rate used in the solvency valuation,
Clause 16(1)(d) amended: O.I.C. 2005-162, N.S. Reg. 88/2005.
(e) the solvency deficiency is the excess of the solvency liabilities over the solvency assets.
(2) If there is not a market value for an investment held by 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 referred to in subclause (1)(c)(i).
17 (1) The annual information return required under Section 27 of the Act must be delivered to the Superintendent not later than 6 months following the end of each fiscal year of the pension plan, except as required under subsection 37(4).
(2) An annual information return must be accompanied by a fee of
(a) $5.25 for each member of the pension plan in Nova Scotia or a designated province; or
(b) if the Superintendent administers the pension plan under an agreement with the Government of Canada under Section 9 of the Act (reciprocal agreements), $5.25 for each member of the plan,
but the total fee payable must be not less than $104.96 and not more than $7871.78.
Subsection 17(2) amended: O.I.C. 2009-164, N.S. Reg. 142/2009.
(3) If an annual information return is delivered to the Superintendent more than 6 months following the end of a fiscal year of a pension plan, a fee of
(a) $7.87 must be paid for each member of the pension plan in Nova Scotia or a designated province; or
(b) if the Superintendent administers the pension plan under an agreement with the Government of Canada under Section 9 of the Act (reciprocal agreements), $7.87 must be paid for each member of the plan,
but the total fee payable must not be less than $157.44 and not more than $11 807.66.
Subsection 17(3) amended: O.I.C. 2009-164, N.S. Reg. 142/2009.
18 Despite Section 17, if an obligation to file a return pursuant to Section 27 of the Act arises before January 1, 2003, but the return is not filed until January 1, 2003, or later, the fees payable pursuant to Section 17 are payable at the rates applicable pursuant to that Section before January 1, 2003.
Commuted value and portability of pension benefits
19 (1) In this Section,
(a) “transfer ratio” means the ratio of the market value of investments held by a pension plan or a value related to the market value by means of an averaging method that stabilizes short-term fluctuations of market values over a period of not more than 5 years, plus any cash balances and accrued or receivable income items, to the solvency liabilities determined as of the same date in accordance with Section 16;
(b) “transfer deficiency” means the amount by which the commuted value of a benefit determined in accordance with subsection (2) exceeds the transfer value of that benefit determined in accordance with subsection (5).
Clause 19(1)(b) amended: O.I.C. 2007-374, N.S. Reg. 328/2007.
(2) For the purposes of subsection 50(1) of the Act, the commuted value of a pension, deferred pension, or ancillary benefit must not be less than the value determined in accordance with “Recommendations for the Computation of Transfer Values from Registered Pension Plans” issued by the Canadian Institute of Actuaries from time to time.
(3) Subsection (2) does not apply if a pension plan is being wound up in whole or in part.
(4) For purposes other than those of subsection 50(1) of the Act and subsection 37(2), 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.
(5) The transfer value of a benefit as of a given date must be determined by multiplying the commuted value, as determined in accordance with subsection (2), by the lesser of
(a) the most recently determined transfer ratio; and
(b) 1.00.
(6) Subject to subsection (7), if a pension plan has a transfer ratio that is greater than or equal to 1.00, the administrator may transfer the commuted value of a pension, deferred pension or ancillary benefit in accordance with Section 50 (transfer rights), 51 (purchase by administrator), 56 (pre-retirement death) or 61 (pension division) of the Act.
(7) If the administrator of a pension plan has reason to believe that the transfer ratio of the pension plan may have been materially reduced since the last valuation, the administrator must not permit a transfer without the prior approval of the Superintendent or having a new transfer ratio determined by an actuary.
(8) If a transfer value is calculated on a basis more generous than the minimum basis prescribed by these regulations, the actuary must perform such supplementary calculations as he or she considers necessary to enable certification that the transfer will not reduce the transfer ratio of the plan below 1.00 or, if the transfer ratio of the plan prior to the transfer was less than 1.00, to a ratio lower than the ratio in existence prior to the transfer.
(9) If a pension plan has a transfer ratio that is less than 1.00, the administrator may transfer the commuted value of a pension, deferred pension or an ancillary benefit on a 100% basis if
(a) the administrator of the plan is satisfied that an amount equal to the transfer deficiency has been remitted to the pension fund; or
(b) the transfer deficiency for the individual transfer is less than 5% of the year's maximum pensionable earnings for that year and 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 that time.
(10) If less than 100% of the commuted value of a pension, deferred pension or ancillary benefit is transferred, the balance including interest calculated at the rate used to calculate the commuted value of the pension, deferred pension or ancillary benefit, must be transferred by the administrator within 5 years of the date of the initial transfer, and any transfer subsequent to the initial transfer must be in accordance with subsection (9).
(11) Any amounts transferred pursuant to a reciprocal transfer agreement that has been filed with the Superintendent are not subject to subsections (5) through (10).
(12) Despite subsections (6) and (9), the administrator must not transfer the commuted value of any portion of a pension, deferred pension or ancillary benefit attributable to a benefit the liability for which was excluded in calculating the plan’s solvency liabilities unless, in the report most recently filed or submitted under Section 4, 12 or 13, the liability for the benefit is included in calculating the plan’s solvency liabilities, or an amount equal to the commuted value of the benefit is first paid into the pension fund by an employer.
(13) With the prior approval of the Superintendent under Section 50 of Act, the administrator may make transfers that would otherwise be prohibited by subsection 50(9) of the Act.
20 For the purposes of clause 47(5)(d) of the Act, “benefits that result from voluntary contributions for past service” means, with respect to a member of a pension plan, benefits credited to the member as a result of his or her election under the plan to make voluntary contributions in order to purchase pension benefits relating to a period of employment before the date on which the member made the election.
21 (1) A member of a pension plan who makes an election under Section 50 of the Act (portability) or a person who is entitled to make an election under Section 61 of the Act (pension division) must deliver a completed direction to the administrator within 90 days following the later of termination of employment and the receipt of the statement required to be provided under subsection 34(1) of the Act or, in the case of a person entitled to make an election under Section 61 of the Act, within 90 days after receipt of notice of termination.
(2) The administrator must comply with an election made under subsection (1) within 60 days of receipt of all information required by the administrator to comply with the direction.
(3) The administrator must not transfer the commuted value or portion thereof 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.
22 (1) For purposes of clause 50(1)(b) and Section 61 (pension division) of the Act, a LIRA is a prescribed retirement savings arrangement.
(2) A transferee as referred to in this Section is an administrator for the purposes of Section 71A of the Act.
(3) A contract to establish a LIRA for purposes of a transfer under Section 50 and Section 61 of the Act must include the following provisions:
(a) no money in the account will be withdrawn except
(i) for transfer to the pension fund of a registered pension plan or a pension plan established by a Provincial statute or a federal statute,
Subclause 22(3)(a)(i) amended: O.I.C. 2007-374, N.S. Reg. 328/2007.
(ii) for transfer to another LIRA,
(iii) to purchase only an immediate or deferred life annuity described in subsection (6) that is provided by a person authorized under the laws of Canada or a province to sell annuities as defined in Section 248 of the Income Tax Act (Canada) under an insurance contract that meets the requirements of Section 24,
(iv) to transfer it to a LIF, or
(v) to pay it in accordance with Section 27 or 28 (small amounts at age 65 or considerably shortened life expectancy), or in accordance with subsection 72(5) of the Act (financial hardship);
Subclause 22(3)(a)(v) amended: O.I.C. 2007-375, N.S. Reg. 329/2007.
(b) money in the account will not be assigned, charged, anticipated or given as security except as permitted by subsection 70(3) or Section 71A of the Act, and any transaction purporting to assign, charge, anticipate or give the money in the account as security is void;
(c) money in the account is exempt from execution, seizure or attachment except as permitted by Section 71A of the Act;
(d) except as provided in Section 57 or Section 71A of the Act or Section 27 or 28 (small amounts at age 65 or considerably shortened life expectancy), or in accordance with subsection 72(5) of the Act (financial hardship), money transferred, including investment earnings, will not be commuted or surrendered during the lifetime of the member, and any transaction purporting to surrender or commute the money in the account is void;
Clause 22(3)(d) amended: O.I.C. 2007-375, N.S. Reg. 329/2007.
(e) the transferee will not permit any subsequent transfer unless
(i) the transfer would be permitted under the Act and these regulations, and
(ii) the subsequent transferee agrees to administer the amount transferred as a pension or deferred pension in accordance with the Act and these regulations;
(f) the transferee will advise any subsequent transferee in writing that the amount transferred must be administered as a pension or deferred pension under the Act and these regulations; and
(g) on the death of the holder of the LIRA, the spouse or common-law partner or, if there is no spouse or common-law partner, the beneficiary or the estate of the holder, will be entitled to the full value of the account.
(4) If the commuted value of a pension benefit that was transferred to a LIRA was determined in a manner that did not differentiate on the basis of sex, the immediate or deferred life annuity purchased with the funds in the account must not differentiate on the basis of the sex of the recipient.
(5) If a LIRA results from the transfer of the commuted value of a pension benefit, the account must contain a statement as to whether the commuted value was determined on a basis that differentiated on the basis of sex.
(6) The income payable under an annuity that is purchased with funds from a LIRA must not begin before the earlier of
(a) the earliest date on which the former member is entitled 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 into the LIRA; and
(b) the earliest date on which the former member is entitled to receive pension benefits under any pension plan described in clause (a) as a result of termination of employment or termination of membership in the plan.
23 (1) For the purposes of clause 50(1)(b) of the Act, a LIF is a prescribed retirement savings arrangement.
(2) A transferee as referred to in this Section is an administrator for the purposes of Section 71A of the Act.
(3) The LIF must comply with the conditions for registration under the Income Tax Act (Canada) to be a registered retirement income fund and, once registered, must remain registered.
(4) LIF money must be invested in a manner that complies with the rules for the investment of RRIF money contained in the Income Tax Act (Canada) and the regulations thereunder.
(5) A LIF established after December 31, 2002, by a financial institution must meet the requirements of this Section.
(6) A LIF on the list maintained by the Superintendent under subsection (13) on December 31, 2002, must meet the requirements of this Section no later than December 31, 2003.
(7) In this Section
(a) “financial institution” means the underwriter, depositary or issuer of a LIF;
(b) “list” means the appropriate list established and maintained under subsection (13); and
(c) “owner” means the former member of a pension plan who has made a transfer pursuant to Section 50 of the Act to a LIF and, unless otherwise stated, includes the spouse or common-law partner if the spouse or common-law partner has made a transfer of a pension benefit as a result of the death of the member or former member or as a result of a division of a pension or pension benefits pursuant to Section 61 (pension division) of the Act.
(8) Pension benefits may be transferred to a LIF by
(a) a former member of a pension plan, including a former member who has previously transferred an amount under clause 50(1)(b) of the Act, who, if they have a spouse or common law partner;,
(i) has obtained the written consent of his or her spouse or common-law partner, or
(ii) is living separate and apart from his or her spouse or common-law partner;
Clause 23(8)(a) replaced: O.I.C. 2007-374, N.S. Reg. 328/2007.
(b) the spouse or common-law partner of a member or former member of a pension plan if the spouse or common-law partner is entitled to a pension benefit as a result of the death of the member or former member or as a result of a division of pension benefits pursuant to Section 61 of the Act; or
(c) a person who has previously transferred an amount under Section 61 of the Act into a LIRA.
(9) The only money that is permitted to be transferred to a LIF is an amount transferred under clause 50(1)(b) of the Act, all or part of the money transferred from a LIRA or money transferred from another LIF.
(10) An owner may not commence income under a LIF earlier than the earliest date on which the owner would have been entitled to receive payment of a pension under any of the pension plans from which the money in the LIF was transferred.
(11) A LIF contract must
(a) indicate the name and address of the financial institution;
(b) describe the owner’s rights, if any, respecting the investment of the money in the fund;
(c) include as part of the contract the Nova Scotia LIF Addendum in Schedule IV;
(d) establish the method and factors that will be used to establish the value of the fund for the purpose of a transfer of assets or purchase of an annuity or payment upon the owner’s death; and
(e) provide that the financial institution will not amend the contract except as provided in subsection (19), and include as part of the contract the provisions set out in subsection (19).
LIF filing requirements and Superintendent’s list
(12) A financial institution must file with the Superintendent for approval
(a) a specimen certified copy of its LIF contract, together with a filing fee of $1049.57 payable to the Minister of Finance; and
(b) specimen certified copies of any subsequent amendments to its LIF contract together with a filing fee of $262.39 per amendment payable to the Minister of Finance.
Subsection 23(12) amended: O.I.C. 2009-164, N.S. Reg. 142/2009.
(13) The Superintendent must establish and maintain a list of
(a) the financial institutions for which contracts filed under subsection (12) are approved; and
(b) the LIFs that are approved for financial institutions referred to in clause (a).
(14) A financial institution is permitted to issue a LIF only when it has been notified in writing by the Superintendent that its name and LIF are on the list, and has not been notified in writing by the Superintendent that it has been removed from the list pursuant to subsection (15).
(15) The Superintendent may, without affecting the duties or liability of a financial institution in relation to any transfer or LIF, remove the financial institution's name or LIF from the list if a specimen certified copy of a LIF contract or amendments thereto have not been filed with the Superintendent or if the financial institution has breached any of its obligations under this Section.
Administrator’s duties respecting transfer to a LIF
(16) An administrator must not effect a transfer to a LIF issued by a financial institution unless the administrator has ascertained that the financial institution's name and LIF are currently on the list maintained in accordance with subsection (13).
(17) An administrator must advise the financial institution as to whether the commuted value of a pension benefit transferred to the financial institution was determined in a manner that differentiated on the basis of sex.
(18) An administrator must advise the financial institution of the earliest date on which a former member would have been entitled to receive payment of a pension under the pension plan from which the funds have been transferred.
(19) A financial institution must not amend its LIF contract except in accordance with the following provisions:
(a) the financial institution must give the owner at least 90 days notice of a proposed amendment, other than an amendment described in clause (b);
(b) the financial institution must not amend the LIF if the amendment would result in a reduction in the owner’s rights under the contract, unless
(i) the financial institution is required by law to make the amendment, and
(ii) the owner is entitled to transfer the assets in the fund under the terms of the contract that exist before the amendment is made;
(c) when making an amendment described in clause (b), the financial institution must notify the owner of the nature of the amendment and allow the owner at least 90 days after the notice is given to transfer all or part of the assets in the fund.
Insurance contract requirements
24 An insurance contract under which a deferred or immediate life annuity will be provided resulting from the transfer of the commuted value of a pension benefit or as the result of a purchase from a LIRA or LIF must include the following provisions:
(a) all money transferred, plus interest, will not be assigned, charged, anticipated or given as security except as permitted by subsection 70(3) or Section 71A of the Act, and any transaction purporting to assign, charge, anticipate or give the money transferred as security is void;
(b) except in the case of the unexpired period of a guaranteed annuity if the annuitant is deceased, no benefit provided under the annuity will be surrendered or commuted during the lifetime of the member or the member's spouse or common-law partner, and any transaction purporting to surrender or commute the benefit is void;
(c) if the annuitant has a spouse or common-law partner at the time payments commence, the annuity will be in the form of a joint and survivor annuity as required by Section 52 of the Act unless the annuitant and his or her spouse or common-law partner provide a waiver as set out in Section 54 of the Act, or unless the annuitant’s spouse or common-law partner has received a division under Section 61 of the Act, in respect of the annuitant’s pension benefit;
(d) the amount of the life annuity accrued after January 1, 1988, will be determined on a basis that does not take into account the sex of the annuitant, except
(i) in the case of a contract that is based entirely upon an amount or amounts transferred from a pension plan administered in accordance with clause 59(2)(b) of the Act (employer contribution varying based on sex of employee); or
(ii) in the case of a contract that is purchased with funds from a LIF or LIRA, if the commuted value of the pension benefit that was transferred into the LIF or LIRA was determined in a manner that differentiated on the basis of sex; and
(e) on the death of the annuitant prior to payment of the annuity, the insurance company will administer the annuity in accordance with clause 22(3)(g).
Cost of complying with an attachment
25 (1) For the purposes of clause 71A(2)(a) of the Act, the cost of complying with an attachment made pursuant to clause 71A(1)(b) of the Act must be calculated in accordance with this Section.
(2) The administrator must calculate the cost of complying with the attachment of a defined benefit as the amount, not to exceed $500, that reasonably represents the cost to the pension plan of complying with the attachment.
(3) The administrator must calculate the cost of complying with the attachment of a defined contribution benefit as the amount, not to exceed $250, that reasonably represents the cost to the pension plan of complying with the attachment.
(4) The cost of complying with the attachment of a deferred life annuity or prescribed retirement savings arrangement must be the amount, not to exceed $250, that reasonably represents the cost to the transferee of complying with the attachment.
Withdrawal of money by owner at age 65 or with shortened life expectancy
26 (1) A document that is required to be given to a financial institution under Section 27 or 28 (small amounts at age 65 and considerably shortened life expectancy) and that must be signed by the owner of the LIRA or LIF is void if it is signed more than 60 days before the financial institution receives it.
(2) A financial institution that receives a document required under Section 27 or 28 must give the owner of the LIRA or LIF a receipt for the document stating the date on which it was received.
27 (1) The owner of a LIRA or LIF may, upon application in accordance with this Section, withdraw all the money in the LIRA or LIF if, when the owner signs the application,
(a) the owner is at least 65 years of age; and
(b) the value of all assets in all LIRAs, LIFs, and pension plans providing defined contributions benefits owned by the owner is less than 40% of the years maximum pensionable earnings for the calendar year in which the application is made.
(2) An application to withdraw the money from a LIRA or LIF must be
(a) in Form 10: Application to a Financial Institution to Withdraw Money From a LIRA or LIF at age 65;
(b) signed by the owner of the LIRA or LIF; and
(c) given to the financial institution that administers the LIRA or LIF.
(3) The contract governing a LIRA or LIF must include the following terms and, if it does not, the contract is deemed to include them:
(a) the financial institution is entitled to rely upon the information provided by the owner in an application made under this Section;
(b) an application that meets the requirements of this Section constitutes authorization to the financial institution to pay the money to the owner from the LIRA or LIF in accordance with this Section;
(c) the value of all assets in all LIRAs, LIFs, and pension plans providing defined contribution benefits owned by the owner when he or she signs the application under this Section will be determined in accordance with the most recent statement about each LIRA or LIF given to the owner, and each statement must be dated within one year before the owner signs the application;
(d) the financial institution must make the payments to which the owner is entitled under this Section within 30 days after the financial institution receives the completed application form and the statement referred to in clause (c).
28 (1) The owner of a LIRA or LIF may, upon application in accordance with this Section, withdraw all or part of the money in the LIRA or LIF if, when the owner signs the application, he or she has a mental or physical disability that is likely to shorten considerably his or her life expectancy.
(2) An application to withdraw money from a LIRA or LIF must be
(a) in Form 11: Application to a Financial Institution to Withdraw Money from a LIRA or LIF Because of Considerably Shortened Life Expectancy;
(b) signed by the owner of the LIRA or LIF and accompanied by a statement signed by a physician who is licensed to practise medicine in a jurisdiction in Canada that, in the opinion of the physician, the owner has a mental or physical disability that is likely to shorten considerably his or her life expectancy; and
(c) given to the financial institution that administers the LIRA or LIF.
(3) A contract governing a LIRA or LIF must include the following terms and, if it does not, the contract is deemed to include them:
(a) the financial institution is entitled to rely upon the information provided by the owner in an application made under this Section;
(b) an application that meets the requirements of this Section constitutes authorization to the financial institution to pay money to the owner from the LIRA or LIF in accordance with this Section; and
(c) the financial institution must make the payments to which the owner is entitled under this Section within 30 days after the financial institution receives the completed application form and accompanying document.
29 The following provinces and territories of Canada are designated as provinces or territories, as the case may be, in which there is in force legislation substantially similar to the Act:
(a) the Province of Alberta;
(b) the Province of Quebec;
(c) the Northwest Territories;
(d) the Province of Saskatchewan;
(e) the Province of Manitoba;
(f) the Province of Ontario;
(g) the Province of Newfoundland and Labrador;
(h) the Province of New Brunswick;
(i) the Province of British Columbia;
(j) the Yukon Territory;
(k) the Territory of Nunavut.
30 If a plurality of the members of a pension plan is employed in a designated province, the plan may be excepted, subject to agreement with the designated province, from a registration or audit under the Act, and for the purpose of ascertaining where the plurality of the members is employed, members not employed in Nova Scotia or a designated province shall not be counted.
31 A bridging benefit need not be taken into account when calculating the amount of a pension for purposes of Section 52(3) of the Act (joint and survivor benefit) or the commuted value of a deferred pension or a pension benefit under Section 56 of the Act (pre-retirement death benefit).
32 (1) In the case of a pension plan that provides defined contribution benefits, on and after January 1, 1988, contributions made by or on behalf of members and former members must be credited not less frequently than annually with such rate of return as can reasonably be attributed to the operation of the pension fund or that part of the pension fund to which the contributions are made.
(2) In the case of a pension plan that provides defined benefits, on and after January 1, 1988, contributions of members and former members, other than additional voluntary contributions or optional ancillary contributions, must, as a minimum, be credited not less frequently than annually with either
Subsection 32(2) amended: O.I.C. 2007-374, N.S. Reg. 328/2007.
(a) interest to be calculated on the basis of the average of the yields of 5 year personal fixed term chartered bank deposit rates (CANSIM Series V 122515), over a reasonably recent period, the averaging period not to exceed 12 months; or
Clause 32(2)(a) amended: O.I.C. 2007-374, N.S. Reg. 328/2007.
(b) such rate of return, never to be less than 0%, as can reasonably be attributed to the pension fund or that part of the pension fund in which the contributions are held.
(3) In the case of a pension plan that provides defined benefits, additional voluntary contributions and optional ancillary contributions made by members and former members must be credited with such rate of return as can reasonably be attributed to the operation of the pension fund or that part of the pension fund to which contributions are made.
(4) In the case of a pension plan that provides both defined benefits and defined contributions, on and after January 1, 1988, contributions of members and former members must be credited in accordance with subsection (1), (2) or (3) as applicable.
(5) Despite subsections (1) to (4), in the case of a defined benefit pension plan that provides for pension benefits that are guaranteed by an insurance company, on and after January 1, 1988, the contributions of members and former members must be credited not less frequently than annually with interest to be calculated on the basis of the average of the yields of 5 year personal fixed term chartered bank deposit notes (CANSIM Series V 122515), over a reasonably recent period, the averaging period not to exceed 12 months.
Subsection 32(5) amended: O.I.C. 2007-374, N.S. Reg. 328/2007.
(6) Interest shall commence to accrue to contributions made by a member on or after January 1, 1988, no later than the first of the month following the month in which the contributions were required to be paid into the pension fund.
(7) As an alternative to subsection (6), contributions made by a member to a pension plan during a fiscal year of the plan may be credited with an average rate of interest for that fiscal year determined in accordance with subsections (1) to (5).
(8) If a member ceases to be a member, retires or dies during a fiscal year of a pension plan, the rate of interest to be credited to the member's contributions during the fiscal year of the plan must be the most recently calculated rate determined in accordance with subsections (1) to (7), applied at least to the end of the month of termination.
(9) For a former member or other person entitled to a lump sum payment, or a person who makes an election to transfer funds under Section 50 of the Act, the amount owing must be credited with interest from the date of termination to the beginning of the month of payment, at the rate determined under subsections (1) to (7).
(10) Despite subsection (9), if the Superintendent has made an order for repayment of money under subsections 50(10) or 51(5) of the Act or for a return of assets under subsections 85(7) or 86(6) of the Act, the order must include interest at the post-judgment interest rate calculated from the date of the transfer to which the order relates.
(11) If a pension plan is wound up in whole or in part, the amount owing to a person who is entitled to a lump sum payment or a person who makes an election under Section 50 of the Act must be credited with interest from the effective date of the wind-up to the beginning of the month of payment, at the interest rate used in determining the commuted value of the pension benefit in the wind-up report.
(12) This Section applies to the accumulated contributions made by a member or former member as at January 1, 1988, and all contributions made by a member or former member subsequent to that date.
Surplus withdrawal application - continuing plan
33 (1) The notice required under subsection 83(2) of the Act in an application for withdrawal of surplus from a continuing pension plan must contain the following information related to the application:
(a) the name of the pension plan and its provincial registration number;
(b) the review date of the report provided with the application and the amount of surplus in the pension plan;
(c) the surplus attributable to employee and employer contributions;
(d) the amount of surplus withdrawal requested;
(e) a statement that submissions in respect of the application may be made in writing to the Superintendent within 30 days of receipt of the notice;
(f) the contractual authority for surplus withdrawal;
(g) notice that copies of the report and certificates filed with the Superintendent in support of the surplus request are available for review at the offices of the employer and information on how copies of the report may be obtained; and
(h) any other information respecting the application that is required by the Superintendent to be provided.
(2) An application by an employer for the consent of the Superintendent to a payment from a continuing pension plan under subsection 83(1) of the Act must be accompanied by a certified copy of the notice referred to in subsection (1), a statement that subsection 83(2) of the Act has been complied with, details on the classes of persons who received notice, and the date the last notice was distributed.
(3) The application referred to in subsection (1) must be accompanied by a current report prepared on the basis of a going concern valuation demonstrating that a surplus exists and that there are no special payments required to be made to the pension fund.
34 (1) For purposes of determining the amount of surplus under a continuing pension plan,
(a) assets are the market value of investments held by the pension fund plus any cash balances and accrued or receivable income items; and
(b) liabilities are the greater of the going concern liabilities and the liabilities determined under Section 16.
(2) For purposes of subclauses 84(1)(d)(ii) and (e)(ii) of the Act (surplus retention), the liabilities of the pension plan must be calculated on the basis of a solvency valuation.
Notices and statements required on wind-up
35 (1) The notice of proposal to wind up a pension plan required under Section 73 of the Act must include the following information:
(a) the name of the plan and its provincial registration number;
(b) the proposed effective date of the wind-up;
(c) notice that each member, former member or any other person entitled to a pension, deferred pension, any other benefit or a refund will be provided with an individual statement setting out entitlements and options under the plan; and
(d) if a plan 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, in order for that period to be included for the purpose of calculating the member's pension benefits where applicable under Section 79 of the Act.
(2) In addition to entitlements under the plan and any options available, the statement provided to each member, former member or any other person under Section 77 of the Act must include
(a) the name of the pension plan and its provincial registration number;
(b) the member's name and date of birth;
(c) the effective date of the plan wind-up;
(d) the date on which the member joined the plan, and, except in the case of multi-employer pension plans, the date the member was employed by the employer;
(e) the member's spouse or common-law partner or designated beneficiary as indicated on the records of the administrator;
(f) the amount of required contributions made to the pension fund by a member since the date of the last annual statement provided under Section 33 of the Act;
(g) the accumulated amount of required contributions made to the pension fund by the member, including interest credited to the contributions, to the wind-up date;
(h) the amount of additional voluntary contributions made by the member to the pension fund since the date of the last annual statement provided under Section 34 of the Act;
(i) the accumulated amount of additional voluntary contributions made by the member to the pension fund, including interest credited to the contributions, to the wind-up date;
(j) any amount transferred since the date of the last annual statement provided under Section 34 of the Act from another pension plan on behalf of the member and the pension benefit under the plan attributable to that amount;
(k) in the case of a plan providing defined contribution benefits,
(i) the amount of employer contributions allocated to the member since the date of the last annual statement provided under Section 34 of the Act, and
(ii) the accumulated amount of employer contributions, including interest credited to the contributions, allocated to the member on the plan records, to the wind-up date;
(l) in the case of a defined benefit plan,
(i) the member's years of employment for the purpose of the calculation of pension benefits, including any period credited under subsection 79(5) of the Act, and
(ii) if salary is a factor in determining a pension benefit, the salary level used for the purpose of determining the benefit;
(m) the rate of interest credited to contributions required to be made by the member since the date of the last annual statement required under Section 33 of the Act;
(n) an explanation of any amendments made to the pension plan during the period covered by the statement for which an explanation has not previously been provided under Section 32;
(o) the time period in which any option 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) if there are surplus assets, a statement of the method of distribution and, if applicable, the formula for allocation of any surplus among the plan beneficiaries;
(r) notice of where copies of the wind-up report are available and information on how copies of the report may be obtained; and
(s) notice of the person the recipient of the statement may contact with respect to any questions arising out of the statement.
(3) Subject to subsection (4), the statement required by subsection 77(1) of the Act must be given to the specified persons within 60 days after the administrator receives notice that the Superintendent has approved the wind-up report.
(4) If the Superintendent approves the payment of benefits under subsection 75(3) of the Act, the statement required by subsection 77(1) of the Act must be given to the persons affected by the approval within 60 days after the administrator receives notice of it.
(5) Where the recipient of a statement referred to in subsection (2) is entitled to elect an option, the election must be forwarded to the administrator within 90 days following receipt of the statement.
(6) The administrator must comply with an election made by a person on the wind-up of a pension plan within 60 days following the later of
(a) receipt of the election; and
(b) receipt of notice that the wind-up report has been approved by the Superintendent.
(7) If the Superintendent approves the payment of benefits under subsection 75(3) of the Act, the payment required by subsection 77(3) of the Act must be made within 60 days following the later of
(a) the date on which the administrator receives the election under subsection (5) by the person affected by the approval or, if no election is made, the day on which the person is deemed to have made the election; and
(b) the day on which the administrator receives notice of the approval.
(8) If a recipient of a statement referred to in subsection (2) dies prior to forwarding the election to the administrator and the date of death is prior to the expiry date of the period during which the recipient was entitled to elect an option, then the spouse or common-law partner of the recipient on the date of death is entitled
(a) to receive a lump sum payment equal to the commuted value that the recipient was entitled to transfer under subsection 78(2) of the Act; or
(b) to an immediate or deferred pension the commuted value of which is at least equal to the commuted value referred to in (a).
(9) The recipient referred to in subsection (8) may designate a beneficiary and the beneficiary is entitled to be paid an amount equal to the lump sum payment referred to in clause 8(a) if the recipient does not have a spouse or common-law partner on the date of death.
(10) The personal representative of the recipient referred to in subsection (8) is entitled on the recipient's death to receive payment of the commuted value described in clause (8)(a) if the recipient does not have a spouse or common-law partner or has not designated a beneficiary under subsection (9).
(11) If a person who would have received a statement referred to in subsection (2), and would have been entitled to elect an option, dies prior to receipt of the statement, then subsections (8), (9) and (10) apply as if that person had received the statement.
(12) The notice of application for consent to pay surplus required under subsection 83(2) of the Act for a plan that is being wound up must contain the following information:
(a) the name of the pension plan and its provincial registration number;
(b) the review date of the report provided with the application and amount of surplus in the pension plan;
(c) the surplus attributable to employee and employer contributions;
(d) the amount of surplus withdrawal requested;
(e) a statement that submissions may be made in writing to the Superintendent within 30 days of receipt of the notice;
(f) the contractual authority for surplus withdrawal;
(g) notice that copies of the wind-up report filed with the Superintendent in support of the surplus application are available for review at the offices of the employer and information on how copies of the report may be obtained; and
(h) any additional information respecting the application that the Superintendent requires to be provided.
(13) An application by an employer for the consent of the Superintendent to a payment from a pension plan that is being wound up must be accompanied by a certified copy of the notice referred to in subsection (12), a statement that subsection 83(2) of the Act has been complied with, the date the last notice was distributed, and the classes of persons who received notice.
36 (1) An employer’s proposal to establish a claim to the surplus must contain the following information:
(a) the name of the pension plan and its provincial registration number;
(b) the date of termination of the plan;
(c) the surplus assets determined on the termination of the plan;
(d) to whom the surplus is to be allocated and the method of allocation;
(e) value of the benefits attributable to all the members and former members and
other persons entitled to benefits under the plan;
(f) the number of members and former members for the purposes of any allocation
of surplus; and
(g) any additional information respecting the proposal as required by the Superintendent.
(2) A class of persons prescribed for the purposes of clause 84(3A)(c) of the Act must include spouses or common-law partners of deceased members and former members and spouses or common-law partners who have an entitlement pursuant to Section 61 (pension division) of the Act and who are entitled to any benefit under the pension plan.
37 (1) The wind-up report required to be filed under subsection 75(1) of the Act must be prepared by a person authorized to prepare a report for the plan under Section 14.
(2) 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 his or her entitlement under subsection 78(2) of the Act is the amount determined as of the effective date of the wind-up in accordance with the “Recommendations for the Computation of Transfer Values from Registered Pension Plans” issued by the Canadian Institute of Actuaries from time to time.
(3) The administrator must file the wind-up report with the Superintendent within 6 months following the effective date of the wind-up of the pension plan in whole or in part.
(4) In addition to the wind-up report required under subsection 75(1) of the Act, the administrator of the pension plan must file all outstanding annual information returns required to be filed up to the effective date of the wind-up of the plan within 6 months after the effective date.
(5) The refund of employee contributions with interest to persons not entitled to a pension, deferred pension, or ancillary benefit is a prescribed payment for purposes of subsection 75(3) of the Act.
(6) If a pension plan that provides defined benefits has been terminated and the wind-up report referred to in subsection (1) has been approved by the Superintendent, the administrator of the plan may pay, prior to the completion of any additional funding required under Section 80 of the Act (employer's liability on wind-up),
Subsection 37(6) amended: O.I.C. 2008-421, N.S. Reg. 352/2008.
(a) the accumulated value of any additional voluntary contributions;
(b) the accumulated value of required contributions made by a member or former member; and
(c) subject to subsection (7), the value of any pension, deferred pension or ancillary benefits accrued as of the effective date of the wind-up with respect to employment and remuneration until that date in accordance with the plan provisions, to the extent that the benefits have been funded and after appropriate adjustments for any payment made in accordance with clause (b).
Clause 37(6)(c) amended: O.I.C. 2008-421, N.S. Reg. 352/2008.
(6A) Until a report is filed under Section 38A certifying that an employer is not required to make any further payments into a pension fund under Section 80 of the Act,
(a) the administrator must not use any funds of the pension plan to purchase a life annuity for any person entitled to a life annuity under the plan in accordance with Section 50, 51 or 56 of the Act or subsection 78(2) of the Act; and
(b) the maximum portion of the commuted value of a deferred pension that the administrator may transfer under clause 50(1)(a) or (b) of the Act, is the amount, if any, of the employee contributions with interest.
Subsection 37(6A) added: O.I.C. 2008-421, N.S. Reg. 352/2008.
(7) An administrator must make the following applicable reductions to benefits paid out under clause 37(6)(c):
(a) if an employer is making payments in accordance with Section 80 of the Act, pension benefits to which a person may be entitled, but that had not vested under the terms of the plan before the effective date of the wind up of the plan, must be reduced to an amount proportionate to the extent that the benefits have been funded;
(b) in all cases other than as referred to in clause (a), the pension, deferred pension or ancillary benefit to which a person would otherwise be entitled must be reduced to an amount proportionate to the extent that the benefits have been funded.
Subsection 37(7) replaced: O.I.C. 2008-421, N.S. Reg. 352/2008.
(8) If a pension plan is wound up in whole or in part, the benefits provided under Section 79 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 fully funded and paid.
Subsection 37(8) added: O.I.C. 2004-487, N.S. Reg. 243/2004; amended: O.I.C. 2008-421, N.S. Reg. 352/2008.
(9) If a university pension plan is wound up in part during the time period referred to in subclause 6(1)(d)(ii), the employer, or any person required to make contributions on behalf of the employer, must pay into the pension plan in respect of members affected by the partial wind up, the amount required
(a) to liquidate all solvency deficiencies existing at the date of the partial wind up
of the pension plan; and
(b) to pay for the benefits provided under Section 79 of the Act.
Subsection 37(9) added: O.I.C. 2005-162, N.S. Reg. 88/2005.
(10) If a municipality pension plan is wound up in whole or in part during the time period referred to in subclause 6(1)(d)(iii), the employer or any person required to make contributions on behalf of the employer, must pay into the pension plan in respect of members affected by the partial wind up, the amount required
(a) to liquidate all solvency deficiencies existing at the date of the partial wind up
of the pension plan; and
(b) to pay for the benefits provided under Section 79 of the Act.
Subsection 37(10) added: O.I.C. 2006-498, N.S. Reg. 213/2006.
38 (1) If an employer is required or liable to make payments into the pension fund in accordance with subsection 80(1) of the Act, the employer must make the payments within 30 days of the effective date of the wind-up of the plan or the effective date of the partial wind up of the plan or such longer period as approved by the Superintendent.
Subsection 38(1) amended: O.I.C. 2008-421, N.S. Reg. 352/2008.
(1A) The payments required to be made by an employer to a pension fund under subsection 80(1A) 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 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 and any other persons entitled to a benefit from the plan that are affected by the partial wind up.
Subsection 38(1A) added: O.I.C. 2008-421, N.S. Reg. 352/2008.
(1B) Payments required to be made by an employer to a pension fund under subsection 80(1A) of the Act must be made annually in advance, beginning at the effective date of the wind up and continuing until the employer’s financial obligation under subsection 80(1A) of the Act is fulfilled.
Subsection 38(1B) added: O.I.C. 2008-421, N.S. Reg. 352/2008.
(1C) Except as later adjusted in accordance with clause 38(2)(b), the annual payments under subsection (1B) must be equal payments sufficient to fund the employer’s financial obligation under subsection 80(1A) of the Act over a period of no longer than 5 years.
Subsection 38(1C) added: O.I.C. 2008-421, N.S. Reg. 352/2008.
(2) If a defined benefit pension plan is wound up in part, a wind-up report must be prepared as if the pension plan were wholly wound up.
38A(1) Until an employer has paid the amounts required under subsection 80(1A) of the Act into the pension fund, the administrator of the plan shall annually do all of the following:
(a) cause the plan to be reviewed;
(b) cause a report to be prepared by a person authorized by Section 14;
(c) file the report with the Superintendent no later than 6 months after the valuation date of the report.
(2) A report required under subsection (1) shall show all of the following:
(a) any gain or loss in the pension plan since the valuation date of the immediately preceding report as a result of differences between the actual experience and the experience anticipated by the assumptions made in the previous report;
(b) any increase or decrease in the remaining annual payments needed to liquidate a gain or loss referred to in clause (a) over the remainder of the 5-year payment period
(3) If a report made under this Section shows that no further payment is required under subsection 80(1A) of the Act, any surplus in the pension fund may revert to the employer, subject to the requirements of Section 84 of the Act.
Section 38A added: O.I.C. 2008-421, N.S. Reg. 352/2008.
39 (1) The information to persons eligible or required to be members of a pension plan referred to in subsection 31(1) of the Act must be provided
(a) to a person who becomes a member of a plan on the date the plan is established, within 60 days after the date the plan is established;
(b) to an employee who will become eligible to become a member of a plan, within 60 days prior to the date on which the person will become eligible; and
(c) to a person who is eligible to become a member of a plan upon commencing employment, within 60 days following the person's commencement of employment.
40 (1) For a pension plan that permits a member to make optional ancillary contributions, the following information is prescribed pursuant to clause 31(1)(c) of the Act to be provided by the Administrator:
(a) the optional ancillary benefits available on conversion;
(b) a summary of the method used to convert the optional ancillary contributions;
(c) the terms and conditions for making an election for conversion; and
(d) the risk of forfeiture if there are insufficient optimal ancillary benefits available at the time of conversion to completely use all the optional ancillary contributions.
Notice and explanation of plan amendment
41 (1) Within 60 days after registration of an amendment to a pension plan, the administrator must give notice and an explanation of the amendment as required under subsection 32(3) of the Act to each member, former member and other person who is or will be affected by the amendment.
(2) Despite subsection (1), if the Superintendent dispenses, pursuant to subsection 32(4) of the Act, with the notice and explanation required under subsection 32(3) of the Act, the administrator must provide notice and an explanation of the amendment to each member with the next annual statement of pension benefits required under Section 33 of the Act.
42 (1) The annual statement required under Section 33 of the Act must contain at least the following information as recorded on the records of the administrator:
(a) the name of the pension plan and its provincial registration number;
(b) the member's name and date of birth;
(c) the period covered by the statement;
(d) the date on which the member joined the plan, and, except for multi-employer pension plans, the date on which the member was employed by the employer;
(e) the date on which the member became fully vested or will become fully vested;
(f) the member’s normal retirement date;
(g) if applicable, the earliest date the member will be eligible to receive an unreduced pension;
(h) if applicable, the name of the person recorded as the member's spouse or common-law partner;
(i) if applicable, the name of the person’s designated beneficiary;
(j) the amount of required contributions, if any, made to the pension fund by a member during the period covered by the statement;
(k) the accumulated amount of required contributions, if any, made to the pension fund by the member, including interest credited to the contributions, to the end of the period covered by the statement;
(l) the amount of any additional voluntary contributions made by the member to the pension fund during the period covered by the statement;
(m) the accumulated amount of any additional voluntary contributions made by the member to the pension fund, including interest credited to the contributions, to the end of the period covered by the statement;
(n) the amount of any optional ancillary contributions made by the member to the pension fund during the period covered by the statement;
(o) the accumulated amount of any optional ancillary contributions and any interest credited to the contributions made by the member to the pension fund to the end of the period covered by the statement;
Clause 42(1)(o) amended: O.I.C. 2007-374, N.S. Reg. 328/2007.
(p) for a plan providing defined contribution benefits,
(i) the amount of employer contributions allocated to the member during the period covered by the statement, and
(ii) the accumulated amount of employer contributions, including interest credited to the contributions, allocated to the member on the plan records, to the end of the period covered by the statement;
(q) for of a defined benefit plan
(i) the member's years of employment for the purpose of the calculation of pension benefits, determined as of the end of the period covered by the statement,
(ii) the annual amount of pension benefit payable at normal retirement date accrued at the end of the period covered by the statement,
(iii) if salary is a factor in determining a pension benefit, the salary level used for the purpose of determining the benefit,
(iv) information as to whether the pension referred to in clause (ii) is reduced by an amount of pension payable under the Canada Pension Plan, Quebec Pension Plan or Old Age Security Act (Canada);
(r) an explanation of any amendment made to the pension plan during the period covered by the statement for which an explanation has not been provided because of a dispensation by the Superintendent under subsection 32(4) of the Act;
(s) if the plan permits a member to make optional ancillary contributions,
(i) the estimated amount of optional ancillary contributions that the member could make in the following year,
(ii) the optional ancillary benefits chosen by the member, and
(iii) a statement that there is a risk of forfeiture of part of those contributions under the Income Tax Act (Canada).
(2) The administrator must provide the annual statement required under Section 33 of the Act to members within 6 months of the fiscal year-end of the plan.
Termination statement - deferred
43 (1) If a member of a pension plan terminates employment or ceases to be a member of a pension plan for reasons other than retirement or death and the member is entitled to a deferred pension, the written statement required under Section 34 of the Act must contain at least the following information as recorded on the records of the administrator:
(a) the name of the pension plan and its provincial registration number;
(b) the member's name and date of birth;
(c) the date on which the member joined the pension plan and the years of employment credited under the plan for the purpose of calculating the pension benefit;
(d) the member's normal retirement date under the plan or the earliest date on which an unreduced pension is payable;
(e) the pension benefits and ancillary benefits to which the member is entitled on termination and any options respecting those benefits, including early, normal and postponed dates for the commencement of payment of benefits and any adjustment to the pension as a result of early or postponed retirement;
(f) if applicable, the name of the person recorded as the member's spouse or common-law partner or designated beneficiary;
(g) if applicable, the formula by which the deferred pension will be integrated with a pension payable under the Canada Pension Plan, Quebec Pension Plan or the Old Age Security Act (Canada) and the reduction or increase to the deferred pension as a result of the integration;
(h) any bridging benefit or special allowance and the date on which the benefit or allowance ceases to be paid;
(i) any indexation provisions applicable to the deferred pension;
(j) any benefit payable in the event of the member's death, should the death occur prior to the commencement of payment of pension benefits;
(k) any benefit payable in the event of the member's death, should the death occur after the commencement of payment of pension benefits;
(l) the transfer value of the deferred pension determined in accordance with subsection 19(2);
(m) any options with respect to transfers available under Section 50 of the Act and
(i) the application of the transfer ratio determined under Section 19 to the transfer option, and
(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;
(n) the deadline by which any option must be exercised; and
(o) the amount of any refunds to which the member is entitled and information on the effect, if any, the member's election to receive a refund would have on the member's pension or deferred pension.
(2) The administrator must provide the written statement referred to in subsection (1) within 60 days following the member's termination of employment or cessation of membership in the plan or, if notice of termination or cessation is not provided to the administrator prior to the event, within 60 days following the administrator's receipt of the notice.
Termination statements - refunds
44 (1) If a member of a pension plan terminates employment or ceases to be a member of a pension plan for reasons other than retirement or death and the member is not entitled to a pension or deferred pension, the administrator of the pension plan must provide the member with a statement setting out at least the following information as recorded on the records of the administrator:
(a) the name of the plan and its provincial registration number;
(b) the member's name and date of birth;
(c) the dates on which the member joined the plan and ceased membership in the plan;
(d) the years of employment credited under the plan for the determination of pension benefits;
(e) the amount of any refund;
(f) any ancillary benefit to which the member may be entitled; and
(g) any option that the member is entitled to elect and the time period in which the option must be exercised.
(2) The administrator must provide the statement referred to in subsection (1) within 60 days following the termination of employment or cessation of membership in the plan or, if notice of termination or cessation is not provided to the administrator prior to the event, within 60 days following the administrator's receipt of the notice.
(3) If no options are available to the member, the administrator must provide any refund to which the member is entitled within 60 days following the administrator's receipt of the notice of the member's termination of employment.
(4) If the member has an option with respect to the refund, the administrator must comply with the election made by the member within 60 days following receipt of a direction from the member.
45 (1) If a member or a former member who is not receiving payments from the pension fund dies and the death results in the spouse or common-law partner, beneficiary or estate of the member or former member becoming entitled to a benefit, the administrator of the plan must, within 60 days following receipt of notice of the death, provide the spouse or common-law partner or legal representative with a statement setting out at least the following information:
(a) the name of the pension plan and its provincial registration number;
(b) the name of the deceased member or former member;
(c) the amount and method of payment of the benefit;
(d) the amount, if any, payable under subsection 47(4) of the Act (50% rule);
(e) the basis for indexation of a pension, if applicable;
(f) if applicable, the amount of the pension resulting from additional voluntary contributions and optional ancillary contributions;
(g) if applicable, the amount of the pension purchased with contributions resulting from a transfer made on behalf of the member from another pension fund; and
(h) in the case of a spouse or common-law partner, the options available under Section 56 of the Act.
(2) For purposes of subsection 56(1) or (2) of the Act (pre-retirement death benefits), a spouse or common-law partner must make an election within 90 days following receipt of the notice referred to in subsection (1).
(3) The administrator of the pension plan must comply with an election under subsection (2) within 60 days following receipt of the direction from the spouse or common-law partner.
Termination statement - retirement
46 (1) At least 60 days prior to a member's normal retirement date or the date at which a member of a pension plan has indicated that he or she intends to retire, the administrator of the plan must advise the member of any options respecting payment of the pension available to the member under the pension plan, the Act or the regulations and the time period in which the options may be exercised.
(2) If an administrator has not received adequate advance notice of the intended retirement necessary to comply with subsection (1), the administrator must provide the information referred to in subsection (1) within 60 days following receipt by the administrator of a completed application required for commencement of the pension.
(3) If a member of a pension plan retires, the written statement required under Section 34 of the Act must contain at least the following information as recorded on the records of the administrator:
(a) the name of the pension plan and its provincial registration number;
(b) the member's name and date of birth;
(c) the date on which the member joined the plan and the years of employment credited under the plan for purposes of calculating the pension benefit;
(d) if applicable, the name of the person recorded as the member's spouse or common-law partner or beneficiary;
(e) the commencement date for payment of pension benefits;
(f) the amount of the pension to which the member is or will be entitled according to the records of the administrator and based on elections made by the member;
(g) any increase or reduction in the pension resulting from early or postponed retirement;
(h) the amount of the pension benefit purchased with additional voluntary contributions made by the member;
(i) the optional ancillary benefits available to the member to enhance the pension and, if optional ancillary contributions exceed the maximum value of the optional ancillary benefits available for purchase, the amount of that excess and that the excess is retained in the plan;
(j) the amount of the pension benefit purchased with contributions resulting from a transfer made on behalf of the member from another pension fund;
(k) any integration of the pension entitlement with pensions payable under the Canada Pension Plan, Quebec Pension Plan or the Old Age Security Act (Canada) and the effect of the integration;
(l) any bridging benefits or special allowances and the date on which the benefits or allowances cease to be paid;
(m) any indexation provisions applicable to the pension or deferred pension;
(n) any benefit payable in the event of the member's death; and
(o) any other refunds under the plan to which the member is entitled.
(4) The administrator must provide the statement referred to in subsection (3) within 60 days following the member's retirement or, if the administrator has not received notification prior to retirement, within 60 days following the administrator's receipt of a completed application required for commencement of the pension.
Information available on request
47 (1) The following documents or information are prescribed for the purpose of Sections 35 and 36 of the Act (inspection of documents at offices of administrator or Superintendent);
(a) the provisions of the current pension plan including any amendments to the plan;
(b) any documents related to the pension plan required to be filed with the Superintendent under subsection 15(2) or 18(2) of the Act or under the Pension Benefits Act, Chapter 14 of the Acts of 1975;
(c) the provisions of any previous pension plan, if the current plan is a successor to a previous version of the plan, including amendments;
(d) any documents related to a previous version of the pension plan and required to be filed with the Superintendent under subsection 15(2) or 18(2) of the Act or under the Pension Benefits Act, Chapter 14 of the Acts of 1975;
(e) the applicable provisions of any document setting out the employer's responsibilities with respect to the pension plan;
(f) a document whereby the administration of the pension plan or pension fund is delegated;
(g) copies of any information returns filed with the Superintendent in respect of the pension plan;
(h) copies of any financial statement or any report under Section 4, 12 or 13 filed with the Superintendent in respect of the pension plan;
(i) copies of correspondence in respect of the pension plan between the Superintendent and the administrator within 5 years preceding the date of the request, except personal information relating to a member or former member without the consent of that member or former member;
(j) copies of those parts of an agreement concerning the purchase or sale of a business or the assets of a business that relate to the pension plan;
(k) copies of any statement of investment policies and goals established for the pension fund at the office of the administrator, or at the office of the Superintendent if filed with the Superintendent; and
(l) copies of any audited financial statement for a pension fund, filed with the Superintendent.
(2) The fee prescribed for a copy of any document referred to in subsection (1) that is obtained from the Superintendent is $0.52 per page, with a minimum fee of $5.25.
Subsection 47(2) amended: O.I.C. 2009-164, N.S. Reg. 142/2009.
(3) The administrator must comply with a written request under Section 35 of the Act within 30 days following receipt of the request.
(4) A person making a request under Section 35 or 36 of the Act is entitled to have access to those parts of the pension plan and other documents or information that are applicable to that person.
48 (1) The prescribed classes of employees referred to in Section 37 of the Act are
(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) executive employees;
(h) employees who are officers of the employer;
(i) employees who are significant shareholders of the employer;
(j) persons who fall within clause (c) or (d) and also any of clauses (a) or (b) or (e) to (I) (i);
(e) to (I);
(k) employees belonging to such other identifiable group of employees as is acceptable to the Superintendent.
(2) For the purposes of Section 37 of the Act, different employers in a multi-employer plan may have different prescribed classes of employees covered by the plan.
(3) A pension plan in which the only member is an individual employee who, but for this subsection, falls within a class described in clause (1)(g), (h) or (i) is exempt from Section 37 of the Act, and that employee must be treated for the purposes of the Act and these regulations as not falling within that class.
49 (1) The pension plans established by or under the following legislation are excepted 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 Judges of the Provincial Court Act.
(2) The following pension plans are excepted 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 Income Tax Act (Canada);
Clause 49(2)(d) added: O.I.C. 2007-374, N.S. Reg. 328/2007.
(e) a plan that provides only benefits that are greater than the maximum benefit limits applicable to a pension plan registered under the Income Tax Act (Canada);
Clause 49(2)(e) added: O.I.C. 2007-374, N.S. Reg. 328/2007.
(f) a plan that permits only contributions that are greater than the maximum contribution limit applicable to a pension plan registered under the Income Tax Act (Canada).
Clause 49(2)(f) added: O.I.C. 2007-374, N.S. Reg. 328/2007.
(3) The administrator of a multi-employer pension plan is exempt from Section 45(2) of the Act.
(4) A pension plan established and maintained for the employees of 2 or more employers, 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 14 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.
(5) A pension plan referred to in subsection (4) may permit different employers to establish different prescribed classes of employees for the purposes of Section 37 of the Act.
50 Subsection 20(1) of the Act (reduction of benefits) does not apply to a member of a defined benefit pension plan who is a significant shareholder, if the employer providing the pension plan and the significant shareholder consent in writing to the non-application of Section 20 of the Act and file the consent with the Superintendent.
Conflict of interest—multi-employer pension plan
51 Subsection 29(3) of the Act (conflict of interest) does not apply to an administrator of a multi-employer pension plan or, if the administrator is a pension committee or board of trustees, a member of the committee or board, who enters into an arrangement related to the administration of the pension plan or pension fund that
(a) is in the interest of the members and former members of the pension plan;
(b) is protective of the rights of the members and former members of the pension plan;
(c) is expressly provided for in the documents that create and support the pension plan; and
(d) is disclosed to members and former members of the plan prior to entering into the arrangement.
Notices and summaries respecting contributions—multi-employer pension plan
52 Subsection 45(1) of the Act does not apply to a multi-employer pension plan established pursuant to a collective agreement, a trust agreement, a statute or a municipal by-law.
Integration formula
53 For purposes of Section 60 of the Act (integrated pension plans), the reduction of a pension or a deferred pension that may be required by a pension plan in relation to benefits under the Canada Pension Plan (Canada) (“CPP”), the Quebec Pension Plan (Quebec) (“QPP”) or the Old Age Security Act (Canada) (“OAS”) must not exceed the following amounts:
(a) if the plan has a CPP or QPP offset, the amount calculated according to the following formula:
A x B
35
where A = amount of pension that would be payable to the person under the CPP or QPP calculated as of the date of termination of the person's employment or membership and calculated as if the person had reached 65 years of age at the date of termination, and
B = number of years, not exceeding 35, including parts of a year, of employment credited to the person under the pension plan; and
(b) if the plan has, prior to January 1, 1988, an OAS offset, the amount calculated according to the following formula:
C x D
35
where C = amount of pension payable under the OAS calculated as of the date of termination of the person's employment or membership,
D = number of years, not exceeding 35, including parts of a year, of employment credited to the person under the pension plan before January 1, 1988.
Individual level-premium contracts
54 If a pension plan is insured by individual level-premium contracts, the deferred pension referred to in Sections 42 and 43 of the Act may, in the case of a contract issued prior to 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 the special payments required with respect to the deferred pension under the contract have all been paid or will continue to be paid.
55 A pension fund must be administered
(a) by a government;
(b) by an insurance company;
(c) by 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 one of whom is independent of any employer contributing to the pension fund, to the extent the individual is neither a significant shareholder, partner, proprietor, director, officer, nor an employee of an employer contributing to the fund or an affiliate of the employer, or
(iii) a corporate pension society established under the Pension Fund Societies Act (Canada);
(d) under the Government Annuities Act (Canada);
(e) by the board, agency, commission, or corporation made responsible by an Act of the Legislature for the administration of the pension fund; or
(f) by any combination of the above.
56 Unless otherwise stated in the pension plan documents, the fiscal year of a pension plan is deemed to commence on January 1 and end on December 31 and, except on such basis as may be authorized by the Superintendent, a fiscal year of a pension plan must not exceed 12 months.
Determination of joint and survivor pension
57 For purposes of determining a joint and survivor pension under Section 52(1) of the Act, the pension must be based on the spouse or common-law partner of the member at the beginning of the period for which a pension first becomes payable.
Filing of reciprocal transfer agreements
58 (1) The administrator of a pension plan must submit for filing a certified copy of any reciprocal transfer agreement entered into prior to these regulations coming into force within 6 months following the date these regulations come into force.
(2) The administrator of a pension plan must submit for filing a certified copy of any reciprocal agreement entered into on or after the date these regulations come into force within 60 days following execution of the agreement.
59 The following ancillary benefits are prescribed for purposes of Section 48 of the Act:
(a) survivor benefits in excess of those required under subsection 52(3) of the Act; and
(b) any vesting provisions in excess of those required under Sections 41, 42 and 43 of the Act.
Refund of contributions not locked in
60 Subsection 68(1) of the Act does not apply to a refund of contributions made to a pension plan by a person who is entitled to a pension or a deferred pension if the pension plan provides for
(a) vesting in respect of contributions made prior to January 1, 1988, prior to the member reaching the age of 45 years and having 10 years of employment with the employer or 10 years' membership in the plan;
(b) vesting in respect of contributions made on or after January 1, 1988, prior to 24 months' membership in the plan; and
(c) the refund of contributions made prior to a vesting period referred to in clause (a) or (b).
Apportionment of benefits - final average or best average earnings plans
61 For the purposes of Section 47 of the Act, if a pension plan provides a pension benefit based on a rate of remuneration of a plan member as of the date the plan member terminates employment, or based on an average of the rates of remuneration of a plan member over a specified or limited time period up to the date the plan member terminates employment, the portion of the pension benefit attributable to employment after January 1, 1988, is
(a) the pension benefit; less
(b) the pension benefit calculated in accordance with the terms of the plan and the member’s credited service at December 31, 1987, using the rate of remuneration of the plan member as the date of termination of employment or the average of the rates of remuneration of the plan member over the specified or limited time period, as the case may be.
Reciprocal transfer agreement - 50% rule
62 If there is a reciprocal transfer agreement, subsection 47(3) of the Act does not apply to a person who transfers money or credits from one pension plan to another plan in accordance with the reciprocal agreement.
Offsets from pre-retirement death benefits
63 (1) A pension plan may provide for the reduction of an entitlement under Section 56 of the Act (pre-retirement death benefit) by an amount equal to that part of a group life insurance payment payable on the death of the member or former member that can be considered to have been paid by employer premiums.
(2) The entitlement under Section 56 of the Act shall not be offset by an amount greater than the group life insurance payment multiplied by the ratio 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 of the ratio any experience or other refunds, with the ratio averaged over a period not exceeding 5 years.
(3) If a reduction to an entitlement under Section 56 of the Act is made, the actuarial present value of that reduction must not exceed the amount of the payment under the group life insurance plan.
(4) In the case of a pension plan that provides contributory benefits, the reduction referred to in subsection (1) must not reduce an entitlement under Section 56 of the Act to less than the aggregate of the required contributions of the member or former member, with interest in accordance with Section 32.
(5) A reduction under this Section must not be made unless the group life insurance contract provides for payment of the insurance payment to the spouse or common-law partner of a member or former member, if there is a spouse or common-law partner at the date of death, or unless the spouse or common-law partner has waived the insurance payment.
Reduction of bridging benefits
64 (1) The amount or value of a bridging benefit that a former member is receiving or for receipt of which a member or former member has satisfied all eligibility requirements must not be reduced only by reason of the eligibility or entitlement of the member or former member to receive actuarially reduced payments prior to attaining the age of 65 years under the Canada Pension Plan, the Quebec Pension Plan or the Old Age Security Act (Canada).
(2) If a pension plan provides a bridging benefit without reference to a specific age at which the benefit is to be reduced or to cease, the age is deemed to be attainment of 65 years of age.
(3) Subsection (2) does not apply to a pension plan that is amended after December 31, 1987, to establish a specific age prior to the attainment of 65 years or to provide for the occurrence of a specific event for the purpose of determining when a bridging benefit will be reduced or cease to be paid.
65 (1) If a pension plan provides that a pension benefit may be varied as the result of retirement benefits payable under the Canada Pension Plan or the Quebec Pension Plan and the pension plan does not state the specific age at which the variation is to occur, the age is deemed to be attainment of 65 years of age.
(2) Subsection (1) does not apply to a pension plan that is amended after December 31, 1987, to establish a specific age or to provide for the occurrence of a specific event for variation of the pension benefit prior to the recipient attaining 65 years of age.
(3) A pension plan that provides a pension benefit that may be varied as a result of a recipient's entitlement to a retirement pension under the Canada Pension Plan or the Quebec Pension Plan prior to attaining the age of 65 years must take into account the adjustment made to the retirement pension under the Canada Pension Plan or the Quebec Pension Plan.
66 (1) Within 30 days after the registration of a pension plan, the administrator must give written notice to all members of the plan who have the right to vote to the effect that they may form an advisory committee by a majority vote.
(2) An administrator may give notice under subsection (1) to members of a plan who are represented by a trade union by giving written notice to the trade union.
(3) A notice under subsection (1) or (2) must contain a list of the purposes of the advisory committee and of its rights under Section 30A of the Act.
(4) The advisory committee of each pension plan shall include at least 3 members of the plan.
67 (1) Despite the provisions of any pension plan or any instrument governing a plan, the assets of a plan must be invested and the investments made in accordance with Schedule I and this Section.
(2) If any provisions of Schedule I differ from the corresponding provisions under the laws of a designated province, the Superintendent may, in the case of a plan having members in that designated province, apply in whole or in part those corresponding provisions instead of those provisions of Schedule I.
(3) The administrator or fund holder must maintain a current record clearly identifying each of the plan's investments and the name in which each investment is registered.
Part 3 - Division of Pension Entitlement
68 In this Part,
(a) “court order” means an order of the Supreme Court of Nova Scotia or an order of a court of competent jurisdiction made outside the Province and enforceable in the Province that provides for a division of a pension or a pension benefit;
(b) “entitlement date” means, in relation to a spouse or common-law partner, the date on which the spouse or common-law partner became entitled to a division of the member’s or former member's pension or pension benefit;
(c) “limited member” means a person designated as a limited member of a pension plan;
(d) “net investment returns” means interest, dividends and realized and unrealized capital gains and losses, less related investment expenses normally charged to investment earnings;
(e) “pensionable service” means the months or parts of months in respect of which a member’s or former member's pension benefit accrues, and includes the months or parts of months in respect of which a pension benefit, earned by a member or former member under another pension plan, has been transferred to the pension plan;
(f) “proportionate share” means,
(i) for a pension or a defined benefit, a fraction calculated in accordance with this Part, or
(ii) for a defined contribution benefit, the share of the benefit of the spouse or common-law partner calculated in accordance with this Part;
(g) “separate pension” means the proportionate share of a member's or former member's pension that is established in a separate account in favour of a spouse or common-law partner;
(h) “separation agreement” means an agreement, in writing, made between spouses or common-law partners, including a marriage contract within the meaning of the Matrimonial Property Act, that provides for a division of a pension or a pension benefit; and
(i) “spouse or common-law partner”, for purposes of this Part, includes a former spouse or former common-law partner of a member or former member.
69 (1) Subject to subsection (2), if a spouse or common-law partner is entitled to an interest in a pension or pension benefit,
(a) the share of the spouse or common-law partner of the pension or pension benefit; and
(b) the manner in which the entitlement of the spouse or common-law partner in the pension or pension benefit is to be satisfied,
must be determined in accordance with this Part.
(2) This Part, unless provided otherwise, applies only if a spouse or common-law partner
(a) was entitled to an interest in a pension or pension benefit before June 4, 2001, and on June 4, 2001, there is no allocation of the pension or pension benefit by court order or separation agreement; or
(b) becomes entitled to an interest in a pension or pension benefit after June 4, 2001.
(3) This Part applies to an insurance contract that provides for a deferred or immediate life annuity as a result of the transfer of the commuted value of a pension benefit or a purchase from a LIRA or LIF referred to in Sections 22 and 23.
Division determined by court order or separation agreement
70 (1) Subject to subsection 61(2) of the Act, a spouse or common-law partner's share of a pension or pension benefit must be determined by a court order or by a separation agreement.
(2) The entitlement date with respect to a spouse or common-law partner must be specified in the court order or separation agreement referred to in subsection (1).
(3) A pension or pension benefit must not be divided under this Part except in accordance with the terms of a court order or a separation agreement referred to in subsection (1).
(4) Nothing in this Part precludes a division of assets pursuant to Section 13 of the Matrimonial Property Act in settlement of the value of any pension or other benefit under a pension plan if, by reason of the termination of a relationship, the chance of acquiring it would be lost, and if there is an unequal division upon those grounds, this Part shall not apply.
71 (1) A spouse or common-law partner who claims an interest in a pension or pension benefit and who submits to the administrator a request for information in Form 5: Request by Spouse or Common-Law Partner for Information Respecting Member's or Former Member's Pension or Pension Benefit, is entitled to receive from the administrator any information necessary to value the member's or former member's pension or pension benefit.
(2) The administrator must provide the information requested pursuant to subsection (1) within 60 days after receipt of Form 5.
(3) Upon receipt of a Form 5, the administrator must send a notice in Form 8: Notice of Receipt to the member or former member whose spouse or common-law partner submitted the Form 5.
(4) Once the information has been provided in accordance with subsection (2), the administrator is required to provide updates to that information only once in each calendar year upon request from the spouse or common-law partner who submitted the Form 5.
72 (1) If a pension or pension benefit is to be divided, a spouse or common-law partner may be designated a limited member of the pension plan by submitting to the administrator a request in Form 6: Request for Designation as Limited Member of Pension Plan, and a copy of the court order or separation agreement that determines the division.
(2) A limited member has
(a) the right to receive payment of a separate pension or a proportionate share of a pension, as the case may be;
(b) except as modified by this Part, all of the rights of a member or former member under the Act;
(c) the additional rights that are set out in this Part.
(3) If the commuted value of the proportionate share of the pension benefit is transferred out of the pension plan to the credit of a spouse or a common-law partner pursuant to Section 74, the spouse or common-law partner ceases to be a limited member of the pension plan.
(4) Upon receipt of a Form 6, the administrator must send a notice in Form 8: Notice of Receipt to the member or former member whose spouse or common-law partner submitted the Form 6.
Information to be provided to a limited member
73 (1) An administrator must provide the following information to a limited member:
(a) any information or notice available to members or former members of the pension plan;
(b) to the extent that it is not provided under clause (a), information on options available to and elections that may be made by a limited member with respect to the limited member's proportionate share of the pension or pension benefit when they become available.
(2) In addition to the information provided under subsection (1), a limited member entitled to a defined contribution benefit must receive an annual statement required under Section 33 of the Act.
(3) If a limited member is in receipt of a separate pension under the Act, the limited member is entitled to all of the information that the administrator provides to former members of the pension plan who are in receipt of a pension payable from the pension fund.
Transfer from pension plan to locked-in retirement plan
74 (1) A transfer of a proportionate share of a pension benefit out of a pension plan to the credit of a spouse or common-law partner must be made in accordance with Section 50 of the Act.
(2) If a defined contribution benefit has been divided under a court order or separation agreement, whether on, before or after June 4, 2001, a spouse or common-law partner who submits to the administrator a copy of the order or agreement and a request in Form 7: Request for Transfer of a Defined Contribution Benefit or a Defined Benefit, is entitled to transfer the spouse's or common-law partner’s proportionate share of the defined contribution benefit from the pension plan.
(3) Upon receipt of a Form 7, the administrator must send a notice in Form 8: Notice of Receipt to the member whose spouse or common-law partner submitted the Form 7.
(4) If a defined benefit has been divided, a limited member who submits to the administrator a request in Form 7: Request for Transfer of a Defined Contribution Benefit or a Defined Benefit is entitled to receive a proportionate share of the commuted value of the pension benefit transferred from the pension plan to the credit of the limited member when the member or former member
(a) retires; or
(b) terminates membership in the pension plan.
(5) Subsection (4) does not apply to a limited member unless the plan provides an entitlement as described in subsection (4) to the member or former member.
Limited member's separate pension resulting from division of a defined benefit
75 A separate pension in favour of a spouse or common-law partner as a limited member, resulting from division of a defined benefit, must
(a) be equal to a proportionate share of the pension that the member or former member would have received had there been no division under the Act and the member or former member elected a pension in the normal form provided under the pension plan for the member or former member;
(b) be converted into
(i) a single life pension, or
(ii) another form or combination of forms of pension that members of the pension plan may elect, such that the commuted value of the separate pension is not less than the commuted value of the limited member's proportionate share of the member's pension in the normal form provided to the member or former member;
(c) be actuarially adjusted, taking into account any difference between the age of the limited member and the member or former member; and
(d) commence at the member's or former member's retirement date.
76 (1) If a pension is to be divided, a limited member is entitled to receive a proportionate share of the pension paid until
(a) the death of the limited member; or
(b) cessation of the pension,
whichever occurs first.
(2) If a proportionate share of a pension is paid to a limited member, separate source deductions must be made with respect to deductions required under the Income Tax Act (Canada) for the limited member's share and the former member's share of the pension.
Death of a member or limited member entitled to a defined benefit
77 (1) If a member or former member dies before the limited member receives a share of the defined benefit under subsection 74(4), the limited member is entitled to receive a proportionate share of the pre-retirement death benefit.
(2) If a member or former member dies after the limited member transfers from the pension plan a proportionate share of the defined benefit under subsection 74(4), no pre-retirement death benefit is payable to the limited member unless the member or former member has designated the limited member as a beneficiary.
(3) If a limited member dies before the member or former member and before transferring from the pension plan a proportionate share of the defined benefit under subsection 74(4), the pension plan must pay to the beneficiary or the estate of the limited member the death benefit payable in respect of the limited member's proportionate share of the defined benefit as if the member or former member had died.
Variation of payment to disabled person and payment of the commuted value if benefit is small
78 If a limited member is entitled to a separate pension or a proportionate share of a pension benefit, a pension plan may provide for payment to the limited member of the commuted value of the separate pension or of the proportionate share of the pension benefit, as the case may be, in the same manner that a pension plan may provide for payment to a member or former member under Section 57 or subsection 58(1) of the Act.
Calculation of proportionate share of a defined contribution benefit
79 (1) This Section applies in respect of a division of a defined contribution benefit.
(2) The proportionate share of a defined contribution benefit must be calculated in accordance with the following formula:
proportionate share = (A/B) x C x P
where
A = the pensionable service accruing from the date of marriage or the beginning of common-law partnership or the date on which the member entered the pension plan, whichever is later, to the entitlement date;
B = the total pensionable service accumulated by the member to the date on which the share of the spouse or common-law partner is transferred from the pension plan pursuant to subsection 74(2) or established in a separate account in the pension plan for the spouse or common-law partner as a limited member;
C = the total of
(a) the contributions to the pension plan to the credit of the member or former member, and
(b) the net investment returns allocated, or that are to be allocated, in respect of those contributions to the date on which the share of the spouse or common-law partner is transferred from the pension plan pursuant to subsection 74(2) or established in a separate account in the pension plan for the spouse or common-law partner as a limited member;
P = the percentage of the pension benefit to be credited to the spouse or common-law partner under a court order or separation agreement.
(3) If a member or former member is not entitled to a deferred pension benefit pursuant to Sections 42 and 43 of the Act on the entitlement date, the proportionate share of the member's or former member's contributions and net investment returns must be paid from the pension plan to the member's or former member's spouse or common-law partner.
(4) A limited member's eligibility for retirement shall be based on the limited member's age.
Calculation of proportionate share of a pension, defined benefit or pre-retirement death benefit
80 (1) This Section applies in respect of a pension, defined benefit or pre-retirement death benefit.
(2) The proportionate share of a pension, defined benefit or pre-retirement death benefit must be calculated in accordance with the following formula:
proportionate share = P x (A/B)
where, subject to subsection (3),
A = the pensionable service accumulated by the member or former member from the date of marriage or the beginning of common-law partnership to the entitlement date for the spouse or common-law partner, excluding any pensionable service for that period purchased by and credited to the member or former member after that entitlement date;
B = the total pensionable service accumulated by the member or former member to the earlier of the date on which the member or former member retires and the date on which he or she terminates membership in the pension plan;
P = the percentage of the pension or pension benefit to be credited to the spouse or common-law partner under a court order or separation agreement.
(3) If the determination of a proportionate share of a pre-retirement death benefit is required on the death of member or former member, the proportionate share must be calculated in accordance with the formula set out in subsection (2), except that:
B = the total pensionable service accumulated by the member or former member to the date of the member's or former member's death.
Adjustment of a member's or former member's defined benefit
81 (1) A defined benefit of a member or former member that is subject to a division must be adjusted in accordance with this Section.
(2) A defined benefit of a member or former member must be adjusted in accordance with subsection (3) if a spouse or common-law partner or the estate of a spouse or common-law partner receives
(a) a separate pension;
(b) a transfer of a proportionate share of the commuted value of a defined benefit pursuant to subsection 74(4); or
(c) a death benefit paid in respect of the limited member's proportionate share of the defined benefit pursuant to subsection 77(3).
(3) An adjustment under subsection (2) must be on a neutral basis to the pension plan and the member or former member and must be made by deducting from the defined benefit the limited member's proportionate share of the defined benefit.
Administrator must give notice to spouse or common-law partner if member's interest may be affected
82 If a spouse or common-law partner has submitted a request for information in Form 5 pursuant to subsection 71(1), an administrator must provide 30 days advance notice to the spouse or common-law partner of any transaction relating to the applicable member's or former member's interest in the pension or pension benefit by reason of
(a) the death of the member or former member;
(b) the retirement of the member or former member; or
(c) a direction given to the administrator by the member or former member.
83 (1) A spouse or common-law partner and member or former member must pay to the administrator an amount to offset administrative fees incurred by the pension plan in satisfying the entitlement of the spouse or common-law partner.
(2) The amount to be paid to an administrator by a spouse or common-law partner and member or former member must not exceed whichever of the following is applicable:
(a) $500 for division of a defined benefit;
(b) $250 for division of a defined contribution benefit;
(c) $650 for division of a defined contribution benefit and a defined benefit provided under one pension plan.
Part 4–Withdrawals in Circumstances of Financial Hardship
Definitions for Part
84 In this Part,
(a) “application” means an application under this Part for consent;
(b) “application fee” means a fee prescribed in Section 87 for an application;
(c) “circumstance of financial hardship” means a circumstance prescribed in subsection 86(1) for the purposes of subsection 72(5) of the Act;
(d) “consent” means consent by the Superintendent to the commutation or surrender in whole or in part of a prescribed retirement savings arrangement in accordance with subsection 72(5) of the Act;
(e) “medical expense circumstance” means a circumstance of financial hardship as prescribed in clause 86(1)(b);
(f) “medical expenses” means expenses that are for goods or services certified by a physician or dentist as necessary and reasonable to treat an illness or disability and that are not covered by insurance, a benefit plan, a government program or any other source;
(g) “mortgage default circumstance” means a circumstance of financial hardship as prescribed in clause 86(1)(a);
(h) “net amount” means the amount allowed by the Superintendent to be withdrawn by an owner from a prescribed retirement savings arrangement under an application consented to by the Superintendent, net of any applicable withholding tax and the application fee;
(i) “owner” means the owner of a prescribed retirement savings arrangement;
(j) “prescribed retirement savings arrangement” means a retirement savings arrangement prescribed in Section 85 for the purposes of subsection 72(5) of the Act;
(k) “principal residence” of an owner who makes an application means a property that is ordinarily inhabited by the owner on the date the owner signs the application;
(l) “reduced income circumstance” means a circumstance of financial hardship as prescribed in clause 86(1)(c).
Section 84 added: O.I.C. 2007-375, N.S. Reg. 329/2007.
Prescribed retirement savings arrangements
85 LIFs and LIRAs are prescribed as types of retirement savings arrangements for the purposes of subsection 72(5) of the Act.
Section 85 added: O.I.C. 2007-375, N.S. Reg. 329/2007.
Prescribed circumstances of financial hardship
86 (1) Subject to subsection (2), the following circumstances of financial hardship are prescribed for the purposes of subsection 72(5) of the Act:
(a) the owner or the owner’s spouse or common-law partner 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) the owner, the owner’s spouse or common-law partner or a dependant has incurred or will incur medical expenses;
(c) the owner’s anticipated total income from all sources before taxes for the 12-month period immediately following the date the owner signs the application is 40% or less of the year’s maximum pensionable earnings for the year in which the application is signed.
(2) A circumstance relating to expenses incurred or to be incurred for the benefit of a spouse or common-law partner does not constitute a circumstance of financial hardship if the owner and the spouse or common-law partner are living separate and apart on the date the owner signs the application.
(3) For the purposes of the mortgage default circumstance, an owner has only one principal residence.
(4) For the purposes of the medical expense circumstance, a dependant is a person who
(a) is dependent on the owner or the owner’s spouse or common-law partner for support on the date an application is signed by the owner or was dependant on the owner, spouse or common-law partner during the 12-month period immediately preceding the date the application is signed by the owner; and
(b) is the child, step-child, grandchild, parent, step-parent, grandparent, brother, half-brother, step-brother, sister, half-sister, step-sister, uncle, aunt, niece or nephew of
(i) the owner, or
(ii) the owner’s spouse or common-law partner, unless the owner and spouse or common-law partner are living separate and apart on the date the application is signed by the owner.
(5) In clause (4)(b), “child” includes a person for whom the owner, or the owner’s spouse or common-law partner, is legal guardian.
(6) For the purposes of the reduced income circumstance, an owner’s anticipated total income from all sources before taxes does not include any of the following:
(a) a withdrawal under this Part;
(b) a refund or repayment of taxes paid to a Canadian jurisdiction;
(c) a refundable tax credit;
(d) income from sources enumerated in Section 52 of the Employment Support and Income Assistance Regulations made under the Employment Support and Income Assistance Act and categorized in that Section as “not chargeable income”;
(e) a payment received by a foster parent under the Children and Family Services Act;
(f) child support payments received under a court order or an agreement.
Section 86 added: O.I.C. 2007-375, N.S. Reg. 329/2007.
87 An owner must pay an application fee of $104.96 at the time of a withdrawal under this Part.
Section 87 added: O.I.C. 2007-375, N.S. Reg. 329/2007; amended: O.I.C. 2009-164, N.S. Reg. 142/2009.
Form and content of application
88 (1) An application must request consent for withdrawal of all of the following:
(a) an amount of at least $500, calculated in accordance with Section 93;
(b) the amount of any applicable withholding tax;
(c) the application fee.
(2) An application must be completed in a form approved by the Superintendent, signed by the owner and submitted to the Superintendent, and accompanied by a copy of the most recent statement for the prescribed retirement savings arrangement issued by the financial institution that administers the prescribed retirement savings arrangement.
(3) An application must include one of the following statements:
(a) a statement of the owner’s spouse or common-law partner, if any, that
(i) the spouse or common-law partner is aware of the pension entitlements under the prescribed retirement savings arrangement, and
(ii) the spouse or common-law partner is aware of the consequences of withdrawing funds from the prescribed retirement savings arrangement and agrees to the withdrawal;
(b) a statement signed by the owner attesting to the fact that the owner does not have a spouse or common-law partner;
(c) a statement signed by the owner attesting to the fact that the owner is living separate and apart from his or her spouse or common-law partner.
(4) An application containing a statement of the owner’s spouse or common-law partner referred to in clause (3)(a) must be signed by the spouse or common-law partner in the presence of a witness other than the owner.
(5) An application must include a statement by the owner that the owner understands that any funds withdrawn from the prescribed retirement savings arrangement are not exempt from execution, seizure or attachment under Section 71 of the Act.
(6) In an application under a mortgage default circumstance, the 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.
(7) In an application under a medical expense circumstance, the owner must include copies of receipts or estimates for the medical expenses and a written opinion of a physician or dentist that the expenses are necessary and reasonable to treat an illness or disability.
(8) In an application under a reduced income circumstance, the owner must include all of the following:
(a) a signed statement setting out the owner’s anticipated total income from all sources before taxes for the 12-month period immediately following the date the application is signed by the owner;
(b) copies of any documents showing income received by the owner in the 12-month period immediately preceding the date the application is signed by the owner;
(c) copies of any documents showing income expected to be received by the owner in the 12-month period immediately following the date the application is signed by the owner;
(d) a copy of the owner’s most recent notice of assessment or reassessment as issued by the Canada Revenue Agency.
(9) An owner must provide accurate and complete information in the application and any accompanying documents.
Section 88 added: O.I.C. 2007-375, N.S. Reg. 329/2007.
Superintendent may require additional information
89 (1) Following receipt of an application, the Superintendent may require
(a) evidence of the circumstance of financial hardship in addition to the evidence submitted with the application under Section 88;
(b) any information relating to the application and accompanying documents that the Superintendent considers necessary to assist in understanding them and to verify their authenticity.
(2) An owner must provide any additional evidence and information required under subsection (1) in the form and manner that the Superintendent specifies.
Section 89 added: O.I.C. 2007-375, N.S. Reg. 329/2007.
Superintendent entitled to rely on information
90 The Superintendent is entitled to rely on the information provided in an application and accompanying documents as well as any additional evidence and information provided under Section 89.
Section 90 added: O.I.C. 2007-375, N.S. Reg. 329/2007.
Nullity of stale-dated document
91 A document to be submitted to the Superintendent is a nullity for the purposes of this Part if it is
(a) a document that requires the signature of the owner or their spouse or common-law partner and is signed more than 60 days before the date the Superintendent receives it; or
(b) a document other than as described in clause (a) that is signed or dated more than 12 months before the date the Superintendent receives it.
Section 91 added: O.I.C. 2007-375, N.S. Reg. 329/2007.
Only 1 application in 12-month period
92 (1) Only 1 application in each circumstance of financial hardship may be made during any 12-month period in relation to a particular person.
(2) For the purposes of subsection (1), a 12-month period begins on the date that an application with respect to the relevant circumstance of financial hardship and in relation to the particular person is received by the Superintendent.
(3) An application that does not result in a withdrawal from a prescribed retirement savings arrangement is not relevant for the purposes of subsection (1).
Section 92 added: O.I.C. 2007-375, N.S. Reg. 329/2007.
93 (1) In an application under a mortgage default circumstance, the net amount may not exceed an 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 medical expense circumstance, the net amount may not exceed the aggregate of
(a) an amount sufficient to pay any medical expenses actually incurred within the 12-month period immediately preceding the date the application is signed by the owner; and
(b) an amount sufficient to pay any medical expenses anticipated to be incurred within the 12-month period immediately following the date the application is signed by the owner.
(3) In an application under a reduced income circumstance, the net amount may not exceed the amount by which “E” exceeds “F”, in which
(a) “E” is 40% of the year’s maximum pensionable earnings for the year in which the application is signed by the owner; and
(b) “F” is 75% of the owner’s anticipated total income from all sources before taxes determined in accordance with subsection 86(6) for the 12-month period immediately following the date the application is signed by the owner.
Section 93 added: O.I.C. 2007-375, N.S. Reg. 329/2007.
Net amount may be lower than requested
94 (1) Subject to subsection (2), a net amount may be less than the amount, not including applicable withholding tax and the application fee, requested by the owner in their application.
(2) A net amount must be at least $500.
Section 94 added: O.I.C. 2007-375, N.S. Reg. 329/2007.
Subsequent application related to mortgage default denied
95 The Superintendent must deny an owner’s application under a mortgage default circumstance if the Superintendent has previously consented to an application from the owner under a mortgage default circumstance and funds have been withdrawn from the owner’s prescribed retirement savings arrangement under that previous application.
Se