Memo to Administrators of Pension Plans : NS Labour and Advanced Education, Pensions

Memorandum to Administrators of Pension Plans

February 9, 1996

SUBJECT: NOVA SCOTIA PENSION BENEFITS ACT AND REGULATIONS

Investment Regulations

Effective January 1, 1996, the investment regulations under the Pension Benefits Act have been changed to reflect the prudent portfolio approach to investment regulation adopted by the majority of the pension regulatory authorities in Canada. The revised regulations are enclosed.

The Act sets investment standards for pension plans subject to its jurisdiction. Although Section 29 of the Act requires pension plan administrators to be prudent, the regulations governing investments have previously consisted of quantitative rules applied to individual investments and the asset portfolio as a whole. The new investment regulations shift the focus toward prudence and away from the previous rules that made individual investments "legal for life".

The new regulations require the plan administrator to establish a written statement of investment policies and procedures describing the obligations and circumstances of the plan and how the plan will invest to achieve a return without undue risk of loss. The investment policy must conform to quantitative limits established in the regulations for investments in a single entity , investment in real estate and resource properties, and holdings of voting shares of a corporation. The plan must follow these limits when it invests. Although plan administrators are not required to file the statement of investment policies and procedures with the Superintendent, the Superintendent retains the right to obtain it at any time and under any circumstances. The written statement of investment policy and procedures must be established on behalf of the pension plan by July 1, 1996.

Life Income Funds

The Superintendent's list of approved Life Income Funds is enclosed

New Forms

Order-in-Council 95-419 approved revision to the following forms:

  • Form 1 - Application for Registration of Pension Plan
  • Form 2 - Annual Information Return
  • Form 3 - Application to Transfer Commuted Value of Deferred Pension Pursuant to Section 50 of the Pension Benefits Act

Copies of the revised forms are available from the Division upon request.

Maintenance Enforcement Act

Effective January 1, 1996 the Maintenance Enforcement Act empowers the Director of Maintenance Enforcement to issue a garnishment against a pension administered pursuant to the Pension Benefits Act. Such garnishment is anticipated where a payor is delinquent in maintenance payments and a source of income is a pension.

Change of Address

Please note the name and address of the Division have been changed to the following:

Mail:
Pension Regulation Division
P.O. Box 371
Halifax, NS
B3J 2P

Courier:
Pension Regulation Division
1723 Hollis Street, 4th floor
Halifax, NS
B3J 1V9

FAX: (902) 424-0662
PHONE:(902) 424-8915

Internet Access

Pension Regulation Division homepage by typing

To go directly to the list of approved Life Income Funds.

The LIF list will be updated regularly and we will be adding more documents throughout the year. You will also find our e-mail addresses on the Internet if you prefer to correspond electronically.

Registration Numbers

Please note that we have eliminated the old provincial registration number system, and have been using the same numbers as Revenue Canada for the past year. Please refer to the common registration number on all correspondence. If your records show any discrepancy between the number we are using and your Revenue Canada number, please let us know.

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