CHAPTER 340
OF THE
REVISED STATUTES, 1989
1 This Act may be cited as the Pension Benefits Act. R.S., c. 340, s. 1.
(a) "additional voluntary contribution" means a contribution to a pension fund by a member of a pension plan beyond any amount that the member is required to contribute, but does not include optional ancillary contributions or a contribution in relation to which the employer is required to make a concurrent additional contribution to the pension fund;
(b) "administrator" means a person who administers a pension plan;
(c) "affiliate" means either of two corporations where one is a subsidiary of the other, or either of two corporations that are subsidiaries of the same body corporate or are controlled by the same person;
(d) "assets", in relation to an employer, means assets that in the ordinary course of business would be entered in books of account, whether or not a particular asset is entered in the books of account of the employer;
(e) "bridging benefit" means a periodic payment provided under a pension plan to a former member of the pension plan for a temporary period of time after retirement for the purpose of supplementing the former member's pension benefit until the former member is eligible to receive benefits under the Old Age Security Act (Canada) or is either eligible for or commences to receive retirement benefits under the Canada Pension Plan or the Quebec Pension Plan;
(f) "certified copy" means a copy certified to be a true copy;
(g) "collective agreement" has the same meaning as in the Trade Union Act;
(ga) "common-law partner" of an individual means another individual who has cohabited with the individual in a conjugal relationship for a period of at least two years, neither of them being a spouse;
(h) "commuted value" means the value, calculated in the prescribed manner and as of a fixed date, of a pension, a deferred pension, a pension benefit or an ancillary benefit;
(i) "continuous", in relation to employment, membership or service, means continuous without regard to periods of temporary suspension of the employment, membership or service and without regard to periods of lay-off from employment;
(j) "contributory benefit" means a pension benefit or part of a pension benefit to which a member is required to make contributions under the terms of the pension plan;
(k) "deferred pension" means a pension benefit, payment of which is deferred until the person entitled to the pension benefit reaches the normal retirement date;
(l) "defined benefit" means a pension benefit other than a defined contribution benefit;
(m) "defined contribution benefit" means a pension benefit determined with reference to and provided by contributions, and the interest on the contributions, paid by or for the credit of a member and determined on an individual account basis;
(n) "designated province" means a province of Canada that is prescribed as a province in which there is in force legislation substantially similar to this Act;
(o) "employee" means a natural person who is employed by an employer;
(p) "employer", in relation to a pension plan, a member of a pension plan or a former member of a pension plan, means the employer required to make contributions under the pension plan;
(q) "file" means file with the Superintendent;
(r) "former member" means a person who has terminated employment or membership in a pension plan and
(ii) is in receipt of a pension payable from the pension fund,
(iii) is entitled to commence receiving payment of pension benefits from the pension fund within one year after termination of employment or membership, or
(iv) is entitled to receive any other payment from the pension fund;
(s) "insurance company" means a corporation authorized to undertake life insurance in Canada;
(t) "joint and survivor pension" means a pension payable until the death of the member or former member or the death of the spouse or common-law partner of the member or former member, whichever occurs later;
(u) "member" means a member of the pension plan;
(v) "Minister" means the Minister of Environment and Labour;
(w) "multi-employer pension plan" means a pension plan established and maintained for employees of two or more employers who contribute or on whose behalf contributions are made to a pension fund by reason of agreement, statute or municipal by-law to provide a pension benefit that is determined by service with one or more of the employers, but does not include a pension plan where all the employers are affiliates of each other;
(x) "normal retirement date" means the date or age specified in the pension plan as the normal retirement date of members;
(xa) "optional ancillary benefits" means enhanced benefits under a defined benefit provision in a pension plan that are
(ii) funded either fully or partially through optional ancillary contributions provided by the member;
(xb) "optional ancillary contributions" means contributions made by a member or former member to a pension plan, for conversion to optional ancillary benefits, that are in addition to those contributions required to obtain a pension, and includes interest on the contributions;
(y) "partial wind up" means the termination of part of a pension plan and the distribution of the assets of the pension fund related to that part of the pension plan;
(z) "participating employer", in relation to a multi-employer pension plan, means an employer required to make contributions to a multi-employer pension plan;
(aa) "pension" means a pension benefit that is in payment;
(ab) "pension benefit" means the aggregate monthly, annual or other periodic amounts payable to a member or former member during the lifetime of the member or former member, to which the member or former member will become entitled under the pension plan or to which any other person is entitled upon the death of a member or former member;
(ac) "pension committee" means a committee that is an administrator;
(ad) "pension fund" means the fund maintained to provide benefits under or related to a pension plan;
(ae) "pension plan" means a plan organized and administered to provide pensions for members and under which the employer of the member is required to make contributions, and includes a multi-employer pension plan but does not include
(ii) a plan to provide a retiring allowance as defined in subsection 248(1) of the Income Tax Act (Canada),
(iii) a plan under which all pension benefits are provided by contributions made by members, or
(af) "prescribed" means prescribed by the regulations;
(ag) "qualification date" means, in respect of the Province, the first day of January, 1977, and, in respect of a designated province, the date on which under the law of the designated province a pension plan must be registered by the proper authority in the designated province;
(ah) "reciprocal transfer agreement" means an agreement related to two or more pension plans that provides for the transfer of money or credits for employment or both in respect of individual members;
(ai) "registration" means registration pursuant to this Act;
(aj) "spouse or a common-law partner" means either of a man and woman who
(ii) are married to each other by a marriage that is voidable and has not been annulled by a declaration of nullity, or
(iii) have gone through a form of marriage with each other, in good faith, that is void and are cohabiting or, if they have ceased to cohabit, have cohabited within the twelve-month period immediately preceding the date of entitlement;
(ak) "Superintendent" means the Superintendent of Pensions;
(al) "surplus" means the excess of the value of the assets of a pension fund over the value of the liabilities under the pension plan, both calculated in the prescribed manner;
(am) "termination", in relation to employment, includes retirement and death;
(an) "trade union" has the same meaning as in the Trade Union Act;
(ao) "wind up" means the termination of a pension plan in whole or in part and the distribution of the assets of the pension fund;
(ap) "year's maximum pensionable earnings" has the same meanings as in the Canada Pension Plan. R.S., c. 340, s. 2; 2000, c. 29, ss. 26, 30; 2002, c. 21, s. 1.
3 (1) For the purposes of this Act, a person is deemed to be employed in the province in which the establishment of the employer is located and to which the person is required to report for work.
(2) A person who is not required to report for work at an establishment of the employer is deemed to be employed in the province in which is located the establishment of the employer from which the person's remuneration is paid. R.S., c. 340, s. 3.
4 (1) This Act applies to every pension plan that is provided for persons employed in the Province.
5 This Act and the regulations shall not be construed to prevent the registration or administration of a pension plan and related pension fund that provide pension benefits or ancillary benefits more advantageous to members than those required by this Act and the regulations. R.S., c. 340, s. 5.
6 The Minister has the general supervision and management of this Act and the regulations. R.S., c. 340, s. 6.
7 Subject to the approval of the Governor in Council, the Minister may
(a) enter into agreements with a designated province or the Government of Canada to provide for the reciprocal application and enforcement of pension benefits legislation, the reciprocal registration, audit and inspection of pension plans and for the establishment of a Canadian association of pension supervisory authorities;
(b) authorize a Canadian association of pension supervisory authorities to carry out such duties on behalf of the Minister as the Minister may require;
(c) delegate to or accept delegation from a pension supervisory authority, a designated province or the Government of Canada of such functions and powers pursuant to this Act as the Minister may determine. R.S., c. 340, s. 7.
7A (1) In this Section, "multi-jurisdictional pension plan" means a pension plan to which this Act and the regulations apply and to which pension-benefits legislation of one or more prescribed jurisdictions in Canada also applies.
(2) With the approval of the Governor in Council, the Minister may enter into one or more agreements described in subsection (3) with the government of a prescribed jurisdiction in Canada, with a government agency of such a jurisdiction or with another person who has supervisory or regulatory powers under pension-benefits legislation of such a jurisdiction.
(3) An agreement may provide for matters relating to the application of this Act and the regulations to multi-jurisdictional pension plans, the application of pension-benefits legislation of a prescribed jurisdiction in Canada to such pension plans and the supervision and regulation of such pension plans.
(4) Without limiting the generality of subsection (3), an agreement may provide for
(a) matters respecting the administration and enforcement of this Act and the regulations and of the pension-benefits legislation of a prescribed jurisdiction in Canada;
(b) the delegation of any powers and duties of the Superintendent under this Act and the regulations to a person who has supervisory or regulatory powers under pension-benefits legislation of a prescribed jurisdiction;
(c) the delegation to the Superintendent of any powers and duties under pension-benefits legislation of a prescribed jurisdiction of a person who has supervisory or regulatory powers under that legislation.
(5) Where an agreement specifies that the pension-benefits legislation of a prescribed jurisdiction in Canada governs multi-jurisdictional pension plans instead of all or part of this Act and the regulations,
(a) this Act and the regulations cease to apply to the multi-jurisdictional pension plans to the extent specified in the agreement; and
(b) the pension-benefits legislation of the prescribed jurisdiction applies, in lieu of this Act and the regulations, to the multi-jurisdictional pension plans to the extent and in the manner specified in the agreement.
(6) Subsection (5) ceases to apply if the Minister ceases to be a party to the agreement.
(7) An agreement or an amendment to an agreement does not come into effect in the Province until the date specified in the agreement or the amendment, whichever date is later.
(8) The Superintendent shall make a copy of each agreement and any amendments to an agreement available for inspection by the public upon request.
(9) The Superintendent may accept a delegation described in clause (c) of subsection (4). 2002, c. 21, s. 3.
8 (1) A Superintendent of Pensions, who shall be the chief administrative officer, and such officers and employees as are necessary to enable the Superintendent to perform the duties of the Superintendent shall be appointed in accordance with the Civil Service Act.
(2) The Superintendent, in exercising and performing the Superintendent's functions, duties and powers pursuant to this Act and the regulations, shall act in accordance with the directions of the Minister. R.S., c. 340, s. 8.
9 The Minister may engage the services of such counsel, actuaries, accountants and other experts to advise the Superintendent in respect of matters as the Minister deems necessary for the efficient carrying out of the Superintendent's duties and functions pursuant to this Act. R.S., c. 340, s. 9.
(a) promote the establishment, extension and improvement of pension plans throughout the Province;
(b) make recommendations to the Minister in respect of pension plans throughout the Province; and
(c) perform such functions and discharge such duties as are assigned from time to time by the Governor in Council or the Minister. R.S., c. 340, s. 10.
11 (1) The Superintendent shall conduct surveys and research programs and compile statistical information related to pensions and pension plans.
(2) The Superintendent may request an employer, an administrator or a member of a pension plan to provide information necessary to compile the statistical information and such person shall comply with the request within a reasonable period of time.
(3) The Superintendent shall use the information only for the purpose of compiling the statistical information and shall not otherwise reveal the information without the consent of the person who supplies the information. R.S., c. 340, s. 11.
12 No person shall administer a pension plan, except during the first ninety days after the establishment of the plan, unless a certificate of registration or an acknowledgement of application for registration of the pension plan has been issued by the Superintendent. R.S., c. 340, s. 12.
13 Where registration of a pension plan has been refused or revoked by the Superintendent, no person shall administer the plan except for the purpose of wind up. R.S., c. 340, s. 13.
14 (1) A pension plan is not eligible for registration unless it is administered by an administrator who is
(b) a pension committee composed of one or more representatives of
(c) a pension committee composed of representatives of the members;
(d) the insurance company that provides the pension benefits where all the pension benefits are guaranteed by the insurance company;
(e) where the pension plan is a multi-employer pension plan established pursuant to a collective agreement or a trust agreement, a board of trustees appointed pursuant to the pension plan or a trust agreement establishing the pension plan of whom at least one half are representatives of members of the multi-employer pension plan and a majority of such representatives of the members must be Canadian citizens or landed immigrants;
(ea) a person appointed as administrator by the Superintendent pursuant to Section 76; or
(f) a board, agency or commission made responsible by an enactment for the administration of the pension plan.
(2) A pension committee, or a board of trustees, that is the administrator of a pension plan may include a representative of persons who are receiving pensions under the pension plan.
(3) In clause (b) of subsection (1), "employer" includes an affiliate. R.S., c. 340, s. 14; 2002, c. 21, s. 4.
15 (1) The administrator of a pension plan shall apply to the Superintendent, within the prescribed period, for registration of the pension plan.
(2) An application for registration shall be made by paying the prescribed fee to the Superintendent and filing
(a) a completed application in the prescribed form;
(b) certified copies of the documents that create and support the pension plan;
(c) certified copies of the documents that create and support the pension fund;
(d) a certified copy of any reciprocal transfer agreement related to the pension plan;
(e) a certified copy of the explanations and other information provided pursuant to subsection (1) of Section 31; and
(3) In subsection (2), "document" includes a collective agreement. R.S., c. 340, s. 15; 2002, c. 21, s. 5.
16 (1) The documents that create and support a pension plan shall set out
(a) the method of appointment and the details of appointment of the administrator;
(b) the conditions for membership;
(c) the benefits and rights that are to accrue upon termination of employment, termination of membership, retirement or death;
(d) the normal retirement date;
(da) the requirements for entitlement under the pension plan to any pension benefit or ancillary benefit;
(e) the contributions or the method of calculating the contributions required;
(f) the method of determining benefits payable;
(g) repealed 2002, c. 21, s. 6.
(h) the method of calculating interest to be credited to contributions;
(i) the mechanism for payment of the cost of administration of the pension plan and pension fund;
(j) the mechanism for establishing and maintaining the pension fund;
(k) the treatment of surplus during the continuation of the pension plan and on the wind up;
(ka) the method of allocation of the assets of the pension plan on windup;
(kb) particulars of any predecessor pension plan under which members of the plan may be entitled to pension benefits;
(l) the obligation of the administrator to provide members with information and documents required to be disclosed under this Act and the regulations; and
(m) any prescribed information related to the pension plan or pension fund.
(2) The documents that create and support a multi-employer pension plan pursuant to a collective agreement or a trust agreement shall set out the powers and duties of the board of trustees that is the administrator of the multi-employer pension plan. R.S., c. 340, s. 16; 2002, c. 21, s. 6.
17 (1) A pension plan is not eligible for registration unless it provides for the accrual of pension benefits in a gradual and uniform manner.
(2) A pension plan is not eligible for registration if the formula for computation of the employer's contributions to the pension fund or the pension benefit provided under the pension plan is variable at the discretion of the employer.
(3) A deferred profit-sharing pension plan or a pension plan that provides defined contribution benefits is not eligible for registration if the formula governing allocation of contributions to the pension fund and profits among members of the plan is variable at the discretion of the employer.
(4) and (5) repealed 2002, c. 21, s. 7.
(6) Notwithstanding subsections (1) to (4), the Superintendent may register a pension plan if the Superintendent is of the opinion that registration is justified in the circumstances of the pension plan and the members. R.S., c. 340, s. 17; 2002, c. 21, s. 7.
18 (1) The administrator of a pension plan shall apply to the Superintendent, within sixty days after the date on which the pension plan is amended, for registration of the amendment.
(2) An application for registration of an amendment shall be made by paying the prescribed fee to the Superintendent and filing
(a) a certified copy of the amending document;
(b) certified copies of any prescribed documents; and
(c) any prescribed information.
(3) The administrator of a pension plan shall file a certified copy of each document that changes the documents that create and support the pension plan or pension fund. R.S., c. 340, s. 18.
19 (1) An amendment to a pension plan is not effective until an application for registration of the amendment is made in accordance with this Act and the regulations.
(2) An amendment to a pension plan may be made effective as of a date before the date on which the amendment is registered. R.S., c. 340, s. 19.
20 (1) An amendment to a pension plan is void if the amendment reduces
(a) the amount or the commuted value of a pension benefit accrued under the pension plan with respect to employment before the effective date of the amendment;
(b) the amount or the commuted value of a pension or a deferred pension accrued under the pension plan; or
(c) the amount or the commuted value of an ancillary benefit for which a former member has met all eligibility requirements under the pension plan necessary to exercise the right to receive payment of the benefit.
(2) Subsection (1) does not apply to a multi-employer pension plan established pursuant to a collective agreement or a trust agreement.
(3) Subsection (1) does not apply to a pension plan that provides defined benefits if the obligation of the employer to contribute to the pension fund is limited to a fixed amount set out in a collective agreement. R.S., c. 340, s. 20; 2002, c. 21, s. 8.
21 The Superintendent shall issue an acknowledgment of application for registration of a pension plan within thirty days after receiving an application for registration that complies with this Act and the regulations. R.S., c. 340, s. 21; 2002, c. 21, s. 9.
22 The Superintendent shall issue a certificate of registration for each pension plan registered pursuant to this Act. R.S., c. 340, s. 22.
23 The Superintendent shall issue a notice of registration for each amendment to a pension plan registered pursuant to this Act. R.S., c. 340, s. 23.
(a) refuse to register a pension plan that does not comply with this Act and the regulations;
(b) revoke the registration of a pension plan that does not comply with this Act and the regulations;
(c) revoke the registration of a pension plan that is not being administered in accordance with this Act and the regulations;
(d) refuse to register an amendment to a pension plan if the amendment is void or if the pension plan with the amendment would cease to comply with this Act and the regulations;
(e) revoke the registration of an amendment that does not comply with this Act and the regulations.
(2) The authority of the Superintendent pursuant to subsection (1) is subject to the right to a reconsideration pursuant to Section 89.
(3) A refusal of registration of a pension plan or a revocation of registration of a pension plan operates to terminate the pension plan as of the date specified by the Superintendent.
(4) A refusal of registration of an amendment to a pension plan or the revocation of an amendment to a pension plan operates to terminate the amendment as of the date specified by the Superintendent.
(5) Where registration of a pension plan is refused or revoked, the administrator shall wind up the pension plan in accordance with this Act and the regulations. R.S., c. 340, s. 24; 2002, c. 21, s. 10.
25 (1) Every employer who maintains a pension plan on the first day of January, 1988, shall amend the pension plan to conform with this Act and the regulations within two years after that date.
(2) Where a pension plan is governed by a collective agreement or an arbitration award made pursuant to the Trade Union Act that requires a provision contrary to this Act or the regulations and that is in effect on the first day of January, 1988, the parties to the collective agreement or arbitration award shall amend the pension plan to conform to this Act and the regulations not later than
(a) the first day of January, 1991; or
(b) where the collective agreement or arbitration award expires on or after the first day of January, 1988, and before or on the first day of January, 1991, upon such expiry.
(3) The Superintendent shall not refuse to register a pension plan that is governed by a collective agreement or an arbitration award made pursuant to the Trade Union Act that requires a provision contrary to this Act or the regulations and that is the subject of an application for registration submitted on or after the first day of January, 1988, if the pension plan would have been eligible for registration pursuant to Chapter 14 of the Acts of 1975. R.S., c. 340, s. 25.
26 (1) The administrator of a pension plan shall ensure that the pension plan and the pension fund are administered in accordance with this Act and the regulations.
(1A) Subsection (1) applies whether or not the pension plan is amended to comply with this Act and the regulations.
(2) The administrator shall ensure that the pension plan and the pension fund are administered in accordance with
(a) the filed documents in respect of which the Superintendent has issued an acknowledgment of application for registration or a certificate of registration, whichever is issued later; and
(b) the filed documents in respect of an application for registration of an amendment to the pension plan, if the application complies with this Act and the regulations and the amendment is not void pursuant to this Act.
(3) The administrator may administer or permit administration of the pension plan and the pension fund in accordance with an amendment pending registration or refusal of registration of the amendment.
(4) Subsection (2) does not apply to enable the administrator to administer the pension plan contrary to this Act and the regulations. R.S., c. 340, s. 26; 2002, c. 21, s. 11.
27 (1) The administrator of a pension plan shall file each year an annual information return in respect of the pension plan in the prescribed form and shall pay the prescribed filing fee.
(2) The administrator shall file additional reports at the times and containing the information prescribed. R.S., c. 340, s. 27.
28 An administrator of a pension plan shall file a certified copy of a reciprocal transfer agreement entered into in respect of the pension plan. R.S., c. 340, s. 28.
29 (1) The administrator of a pension plan shall exercise the care, diligence and skill in the administration and investment of the pension fund that a person of ordinary prudence would exercise in dealing with the property of another person.
(2) The administrator or, if the administrator is a committee or a board of trustees, a member of the committee or board shall use in the administration of the pension plan, and in the administration and investment of the pension fund, all relevant knowledge and skill that the administrator or member possesses or, by reason of profession, business or calling, ought to possess.
(3) The administrator or, if the administrator is a pension committee or a board of trustees, a member of the committee or board shall not knowingly permit the administrator's or member's interest to conflict with the administrator's or member's duties and powers in respect of the pension fund.
(4) Where it is reasonable and prudent in the circumstances to do so, an administrator may employ one or more agents to carry out any act required to be done in the administration of the pension plan and in the administration and investment of the pension fund.
(4A) No person other than a prescribed person shall be a trustee of a pension fund.
(5) An administrator who employs an agent shall personally select the agent and be satisfied of the agent's suitability to perform the act for which the agent is employed, and the administrator shall carry out such supervision of the agent as is prudent and reasonable.
(6) An employee or agent of an administrator is also subject to the standards that apply to the administrator pursuant to subsections (1), (2) and (3).
(7) The administrator or, if the administrator is a pension committee or a board of trustees, a member of the committee or board is not entitled to any benefit from the pension plan other than pension benefits and fees and expenses related to the administration of the pension plan and permitted by law or provided for in the pension plan.
(8) An agent of the administrator is not entitled to payment from the pension fund other than the usual and reasonable fees and expenses for the services provided by the agent in respect of the pension plan. R.S., c. 340, s. 29; 2002, c. 21, s. 12.
30 The employer shall provide to the administrator of a pension plan any information required by the administrator for the purpose of complying with the terms of the pension plan or of this Act or the regulations. R.S., c. 340, s. 30.
30A (1) The members and former members of the pension plan, by the decision of a majority of those members participating in a vote, may establish an advisory committee.
(2) Each class of employees that is represented in the pension plan is entitled to appoint at least one representative to the advisory committee established pursuant to subsection (1).
(3) The former members of the pension plan are entitled to appoint one representative to the advisory committee established pursuant to subsection (1).
(4) An advisory committee shall
(a) monitor the administration of the pension plan;
(b) make recommendations to the administrator respecting the administration of the pension plan; and
(c) promote awareness and understanding of the pension plan on the part of members of the pension plan and persons receiving pension benefits under the pension plan.
(5) An advisory committee or its representative has the right to examine the records of the administrator in respect of the administration of the pension plan and the pension fund and to make extracts from and copies of the records, but this subsection does not apply in respect of information as to the service, salary, pension benefits or other personal information related to any specific person without that person's prior consent.
(6) Subsection (1) does not apply
(a) where the pension plan is administered by a pension committee at least one of the members of which is appointed by the members of the pension plan; or
(b) in respect of a multi-employer pension plan established pursuant to a collective agreement.
(7) The administrator of a pension plan shall provide to the advisory committee or its representative such information as is under the control of the administrator and is required by the advisory committee or its representative for the purpose of the committee. 2002, c. 21, s. 13.
31 (1) The administrator of a pension plan shall provide in writing to each person who will be eligible or is required to become a member
(a) an explanation of the provisions of the plan that apply to that person;
(b) an explanation of that person's rights and obligations in respect of the pension plan; and
(c) any information prescribed.
(2) The administrator shall provide the information mentioned in subsection (1) to
(a) each person who becomes a member within the prescribed period of time after the date on which the pension plan is established;
(b) a person who is likely to become eligible to become a member of the pension plan, within the prescribed period of time before the date on which that person is likely to become eligible;
(c) each person who becomes eligible to become a member of the pension plan upon becoming employed by the employer, within the prescribed period of time after the date on which that person becomes so employed.
(3) The employer shall transmit to the administrator the information necessary to enable the administrator to comply with subsection (2) and shall transmit the information in sufficient time to enable the administrator to comply with the time limits set out in that subsection. R.S., c. 340, s. 31.
32 (1) Where the administrator of a pension plan applies for registration of an amendment to the pension plan that may reduce the prospective pension benefits, rights or obligations of a member or former member or a person entitled to payments from the pension fund, the Superintendent shall require the administrator to transmit to each such member, former member or other person a written notice containing an explanation of the amendment and inviting comments to be submitted to the administrator and the Superintendent, and the administrator shall provide to the Superintendent a copy of the notice and shall certify to the Superintendent the date on which the last such notice was transmitted.
(2) Where the Superintendent has required the administrator to transmit notices pursuant to subsection (1), the Superintendent shall not register an amendment mentioned in that subsection before the expiration of forty-five days after the date certified to the Superintendent pursuant to that subsection, but, after the expiration of the forty-five day period, the Superintendent may register the amendment with such changes as are requested in writing by the administrator.
(3) Within the prescribed period of time after an amendment to a pension plan is registered, the administrator shall transmit notice and an explanation of the amendment to each member, former member and other person affected by the amendment.
(4) The Superintendent need not require the transmittal of notices pursuant to subsection (1) or may by order dispense with the notice required by subsection (3), or both, if the Superintendent is of the opinion that the amendment is of a technical nature and will not substantially affect the pension benefits, rights or obligations of a member or former member or a person entitled to payments from the pension fund or if the amendment has been agreed to by a trade union that represents the members or if the amendment is in respect of a multi-employer pension plan established pursuant to a collective agreement or a trust agreement.
(5) Where a proposed amendment affects members or former members represented by a trade union that is a party to a collective agreement filed as the document that creates or supports a pension plan, the administrator shall transmit to the trade union the written notice referred to in subsection (1). R.S., c. 340, s. 32; 2002, c. 21, s. 14.
33 The administrator of a pension plan shall transmit annually to each member a written statement containing the prescribed information in respect of the pension plan, the member's pension benefits and any ancillary benefits. R.S., c. 340, s. 33.
34 (1) Where a member of a pension plan terminates employment with the employer or otherwise ceases to be a member, the administrator of the pension plan shall give to the member, or to any other person who as a result becomes entitled to a payment under the pension plan, a written statement setting out the prescribed information in respect of the benefits, rights and obligations of the member or other person.
(2) Subsection (1) applies in respect of a multi-employer pension plan where a member ceases to be a member, but does not apply where a member terminates employment with an employer but continues to be a member. R.S., c. 340, s. 34.
35 (1) On written request, the administrator of a pension plan shall make available the prescribed documents and information in respect of the pension plan for inspection without charge by
(c) the spouse or common-law partner of a member or former member;
(ca) any other person entitled to pension benefits under the pension plan;
(d) an agent authorized in writing by a person referred to in clause (a), (b), (c), (ca), (f) or (g);
(e) a representative of a trade union that represents members of the pension plan;
(g) a person required to make contributions under a pension plan on behalf of an employer;
(h) any other prescribed person.
(2) The administrator shall make the prescribed documents and information available
(a) for a member, at the premises of the employer where the member is employed;
(b) for a former member, at the premises where the former member was employed;
(c) for a member, former member or any other person, at such other location as may be agreed upon by the administrator and the member, former member or other person making the request.
(3) The administrator shall permit the person making the inspection to make extracts from or to copy the prescribed documents and information.
(4) On request, the administrator shall provide the person making the inspection with copies of any of the prescribed documents or information upon payment to the administrator of a reasonable fee.
(5) A member, former member, a spouse or common-law partner, another person, an agent of any of them, or a trade union by a representative, is entitled to make an inspection pursuant to subsection (1) not more than once in a calendar year. R.S., c. 340, s. 35; 2000, c. 29, s. 30; 2002, c. 21, s. 15.
36 (1) The persons mentioned in subsection (1) of Section 35 and the administrator are entitled to inspect, at the offices of the Superintendent during business hours of the Superintendent, the documents that comprise a pension plan and such other prescribed documents as are filed in respect of the pension plan, and are entitled to copies of the documents upon payment of the prescribed fees.
37 (1) Every employee of a prescribed class of employees for whom a pension plan is established is eligible to be a member.
(2) An employee in a prescribed class of employees for whom a pension plan is maintained is entitled to become a member upon application at any time after completing twenty-four months, or such lesser time as the plan provides, of continuous full-time employment.
(3) A pension plan may require not more than twenty-four months of less than full-time continuous employment with the employer with the lesser of earnings of not less than thirty-five per cent of the year's maximum pensionable earnings or seven hundred hours of employment with the employer in each of two consecutive calendar years immediately prior to membership in the pension plan, or such equivalent basis as is approved by the Superintendent, as a condition precedent to membership.
(4) A multi-employer pension plan may require not more than the lesser of
(a) earnings of not less than thirty-five per cent of the year's maximum pensionable earnings with one or more participating employers; or
(b) seven hundred hours of employment with one or more participating employers,
in each of the two consecutive calendar years immediately before the year in which membership is applied for, or such equivalent basis as is approved by the Superintendent, as a condition precedent to membership in the multi-employer pension plan.
(5) The Superintendent may give the approval mentioned in subsection (3) or (4) if the Superintendent is of the opinion that the basis is equivalent in the circumstances to the earnings mentioned in the subsection. R.S., c. 340, s. 37; 2002, c. 21, s. 17.
37A An employee who is a member of a pension plan shall continue as a member of that plan so long as the employee's employment, in respect of which the pension plan is maintained, continues. 1992, c. 27, s. 1.
38 A member of a pension plan who is employed continuously on a less than full-time basis does not cease to be a member by reason only that the member has earnings of less than thirty-five per cent of the year's maximum pensionable earnings in a calendar year or is employed for fewer than seven hundred hours in a calendar year. R.S., c. 340, s. 38; 2002, c. 21, s. 18.
39 (1) Where there is a dispute as to whether or not an employee is a member of a prescribed class of employees for whom a pension plan is established or maintained, the Superintendent may, subject to Section 89, by order require the administrator to accept the employee as a member.
(2) The Superintendent may make the order if the Superintendent is of the opinion that, on the basis of the nature of the employment or of the terms of employment of the employee, the employee is a member of the prescribed class. R.S., c. 340, s. 39.
40 An employer may establish or maintain a separate pension plan for employees employed in less than full-time continuous employment if the separate pension plan provides pension benefits and other benefits reasonably equivalent to those provided under the pension plan maintained by the employer for employees of the same class employed in full-time continuous employment. R.S., c. 340, s. 40.
41 (1) A member of a pension plan is entitled to a pension under the pension plan calculated in accordance with the benefit formula of the pension plan where the member's employment with the employer is terminated on or after the normal retirement date under the pension plan and where
(a) the member was a member for a continuous period of at least twenty-four months on or after the first day of January, 1988; or
(b) the member was employed by the employer, or was a member, for a continuous period of at least ten years at the date of termination of the employment.
(2) The normal retirement date under a pension plan submitted for registration on or after the first day of January, 1988, shall not be later than one year after the attainment of sixty-five years of age.
(3) Every pension plan registered or submitted for registration before the first day of January, 1988, shall be deemed to specify a normal retirement date in respect of pension benefits that accrue on or after the first day of January, 1988, that is not later than one year after the attainment of sixty-five years of age, unless the pension plan specifies an earlier normal retirement date.
(4) A member who continues to be employed by the employer after the normal retirement date, and who is not receiving a pension under the pension plan, has the right to continue to be a member to the date of termination of the employment and has the right to continue to accrue pension benefits calculated in accordance with the benefit and contribution formula of the pension plan to the date of termination of the employment to the maximum benefits allowed under the pension plan. R.S., c. 340, s. 41.
42 (1) A member of a pension plan who
(a) has been employed by the employer, or has been a member of the pension plan, for a continuous period of at least ten years;
(b) has reached the age of forty-five years; and
(c) has terminated employment before reaching the normal retirement date under the pension plan,
is entitled to a deferred pension equal to the pension benefit provided under the pension plan as it existed on the thirty-first day of December, 1987, in respect of employment before the first day of January, 1988, in the Province or in a designated province,
(d) under the terms of the pension plan, with respect to employment on or after the qualification date;
(e) by an amendment to the pension plan made on or after the qualification date;
(f) by the creation of a new pension plan on or after the qualification date.
(2) Subsection (1) does not apply in respect of benefits that result from additional voluntary contributions. R.S., c. 340, s. 42.
43 (1) A member of a pension plan who
(a) is a member on or after the first day of January, 1988;
(b) is a member for a continuous period of at least twenty-four months, counting time as a member both before and on and after the first day of January, 1988; and
(c) has terminated employment before reaching the normal retirement date under the pension plan,
is entitled to a deferred pension equal to
(d) the pension benefit provided under the pension plan in respect of employment in the Province or in a designated province on or after the first day of January, 1988, or on or after the qualification date if the qualification date is later than the first day of January, 1988;
(e) the pension benefit that results from any amendment to the pension plan on or after the first day of January, 1988;
(f) the pension benefit under a new pension plan established on or after the first day of January, 1988, for members of the pension plan.
(2) Subsection (1) does not apply in respect of benefits that result from additional voluntary contributions. R.S., c. 340, s. 43; 2002, c. 21, s. 19.
(a) a member of a multi-employer pension plan;
(b) a member of a pension plan who is employed by the employer on a less than full-time basis; or
(c) a member of a pension plan who has been laid off from employment by the employer,
is entitled to terminate membership in the pension plan if no contributions are paid or are required to be paid to the pension fund by or on behalf of the member for twenty-four consecutive months or for such shorter period of time as is specified in the pension plan.
(2) For the purpose of determining benefits pursuant to this Act, a person who terminates membership in a pension plan is deemed to have terminated employment.
(3) Subsections (1) and (2) do not apply if contributions are not paid or are not required to be paid because the person has become a member of another pension plan and there is a reciprocal transfer agreement respecting the two pension plans.
(4) For the purpose of determining entitlements to a deferred pension, a member of a multi-employer pension plan who terminates employment with a participating employer or an employer on whose behalf contributions are made under the pension plan is deemed not to have terminated employment until the member terminates membership in the pension plan.
(5) Where a member of a multi-employer pension plan is represented by a trade union that, in accordance with the Trade Union Act ceases to represent the member, and the member joins a different pension plan, a member is entitled to terminate membership in the first plan.
(6) Subsection (5) does not apply where there is a reciprocal agreement respecting the two pension plans. R.S., c. 340, s. 44; 2002, c. 21, s. 20.
45 (1) The administrator of a pension plan or, if there is an agent of the administrator responsible for receiving contributions under the pension plan, the administrator and the agent shall give written notice to the Superintendent of a contribution that is not paid when due.
(2) The administrator and the agent shall give the notice to the Superintendent within sixty days after the date on which the administrator or the agent first became aware of the failure to pay the contribution. R.S., c. 340, s. 45.
46 (1) Where an employer receives money from an employee pursuant to an arrangement that the employer will pay the money into a pension fund as the employee's contribution under the pension plan, the employer shall hold the money in trust for the employee until the employer pays the money into the pension fund.
(2) For the purposes of subsection (1), money withheld by an employer, whether by payroll deduction or otherwise, from money payable to an employee is deemed to be money received by the employer from the employee.
(3) An employer who is required to pay contributions to a pension fund shall hold in trust for the beneficiaries of the pension plan an amount of money equal to the employer contributions due and not paid into the pension fund.
(4) Where a pension plan is wound up in whole or in part, an employer who is required to pay contributions to the pension fund shall hold in trust for the beneficiaries of the pension plan an amount of money equal to employer contributions accrued to the date of the wind up but not yet due under the plan or regulations.
(5) The administrator has a lien and charge on the assets of the employer in an amount equal to the amounts required to be held in trust pursuant to subsections (1), (3) and (4).
(5A) The lien referred to in subsection (5) is not a charge against a parcel registered pursuant to the Land Registration Act until a certificate evidencing the lien has been recorded in the judgment roll.
(5B) The Administrator may record a notice of the lien referred to in subsection (5) in the parcel register of any property owned by a person for whom or on account of whom the amounts are required to be held in trust pursuant to subsections (1), (3) and (4) to which the lien applies and shall thereupon serve that person with a copy of the lien and recording particulars.
(5C) Upon satisfaction of the lien including payment of the fees for recording the lien and the release, the Administrator shall record a release of the lien in the parcel registers in which notice of the lien was recorded.
(6) Money required by subsection (1), (3) or (4) to be held in trust shall be kept separate and apart from other money or property of the employer.
(7) Subsections (1) to (6) apply mutatis mutandis in respect of money to be paid to an insurance company that guarantees pension benefits under a pension plan. R.S., c. 340, s. 46; 1992, c. 27, s. 2; 2001, c. 6, s. 120; 2002, c. 21, s. 21.
47 (1) Where the commuted value of a former member's deferred pension accrued prior to the first day of January, 1988, is less than the value of the contributions the former member was required to make under the pension plan prior to the date plus interest credited to the contributions, the former member is entitled to have the commuted value of the deferred pension increased so that the commuted value is equal to the value of the contributions and the interest.
(2) An increase in the value of the pension or deferred pension in respect of employment before the first day of January, 1988, resulting from an amendment to the pension plan made on or after the first day of January, 1988, may be included in calculating the commuted value of the deferred pension for the purposes of subsection (1).
(3) A former member's contributions made on or after the first day of January, 1988, under a pension plan and the interest on the contributions shall not be used to provide more than fifty per cent of the commuted value of the pension or deferred pension in respect of the contributory benefit accrued after that date to which the former member is entitled under the pension plan on termination of membership or employment.
(4) A former member referred to in subsection (3) is entitled upon termination of employment or membership to payment from the pension fund of the amount by which the former member's contributions under the pension plan made on or after the first day of January, 1988, plus the interest on the contributions, exceed one half of the commuted value of the former member's pension or deferred pension in respect of the contributory benefit accrued on or after the first day of January, 1988.
(5) The following may be excluded when determining that part of the commuted value of a pension or deferred pension to which subsections (3) and (4) apply:
(a) defined contribution benefits;
(b) benefits that result from additional voluntary contributions;
(c) in the case of a multi-employer pension plan that permits a member who has not accrued maximum pension benefits permitted under the plan in a fiscal year of the plan to make contributions to increase the member's pension benefit to the maximum permitted for the fiscal year, benefits resulting from such contributions;
(d) benefits that result from voluntary contributions for past service as defined in the regulations;
(e) optional ancillary benefits; and
(f) any other benefits prescribed for the purpose of this subsection.
(6) The following may be included by the administrator in calculating a member's contributory benefit for the purposes of subsection (3):
(a) ancillary benefits related to employment on or after the first day of January, 1988;
(b) increases to pension benefits and ancillary benefits related to employment before the date of the amendment resulting from an amendment to the pension plan made on or after the first day of January, 1988, but that are not included in calculating commuted value under subsection (2);
(c) pension benefits and ancillary benefits related to employment before the date of the establishment of the pension plan, in the case of a pension plan established on or after the first day of January, 1988.
(7) The conversion of optional ancillary contributions to optional ancillary benefits shall be done pursuant to actuarial assumptions and methods that are appropriate and in accordance with accepted actuarial practice.
(8) Where a member's accumulated optional ancillary contributions exceed the amount that can be converted to optional ancillary benefits upon retirement, termination, death or plan wind-up, the pension plan may provide for forfeiture of the unused portion. R.S., c. 340, s. 47; 2002, c. 21, s. 22.
48 (1) A pension plan may provide the following ancillary benefits:
(b) death benefits in excess of those provided in Section 56 (pre-retirement death benefit);
(d) supplemental benefits, other than bridging benefits, payable for a temporary period of time;
(e) early retirement options and benefits in excess of those provided by Section 49 (early retirement option);
(f) postponed retirement options and benefits in excess of those referred to in subsection (4) of Section 41;
(g) any prescribed ancillary benefit.
(2) An ancillary benefit for which a member has met all eligibility requirements under the pension plan necessary to exercise the right to receive payment of the benefit shall be included in calculating the member's pension benefit or the commuted value of the pension benefit.
(3) For the purpose of subsection (2) and clause (c) of subsection (1) of Section 20, where the consent of an employer is an eligibility requirement for entitlement to receive an ancillary benefit and a member or former member has met all other eligibility requirements, the employer is deemed to have given the consent to the member or former member. R.S., c. 340, s. 48; 2002, c. 21, s. 23.
49 (1) A former member of a pension plan is entitled to elect to receive an early retirement pension under the pension plan if the former member
(a) terminated employment with the employer after the thirty-first day of December, 1987;
(b) is entitled to a deferred pension pursuant to this Act; and
(c) is within ten years of attaining the normal retirement date.
(2) A member who is within ten years of attaining the normal retirement date and who would be entitled to a deferred pension on termination of employment is entitled upon termination of the employment or on the wind up of the pension plan in whole or in part to receive an early retirement pension under the pension plan.
(3) The commuted value of a member's early retirement pension shall not be less than the commuted value of the member's pension benefit under the pension plan.
(4) The commuted value of a former member's early retirement pension shall not be less than the commuted value of the former member's deferred pension benefit under the pension plan.
(5) The member or former member is entitled to require the commencement of payment of the early retirement pension at any time within the ten-year period mentioned in subsection (1) or (2).
(6) An election pursuant to subsection (1) or (2) shall be made in writing, signed by the member or former member, and delivered to the administrator of the pension plan. R.S., c. 340, s. 49.
50 (1) A former member of a pension plan who, on or after the first day of January, 1988, terminates employment or ceases to be a member of the pension plan and who is entitled to a deferred pension is entitled to require the administrator to pay the commuted value of the deferred pension
(a) to the pension fund related to another pension plan, if the administrator of the other pension plan agrees to accept the payment;
(b) into a prescribed retirement savings arrangement; or
(c) for the purchase for the former member of a life annuity under which payments will not commence before the earliest date on which the former member would have been entitled to receive payment of pension benefits under the pension plan.
(1A) Where the amount of the commuted value of the deferred pension of the former member to be paid into a prescribed retirement savings arrangement pursuant to clause (b) of subsection (1) is greater than the amount prescribed for such a transfer under the Income Tax Act (Canada), the administrator shall pay the portion that exceeds the prescribed amount as a lump sum to the former member.
(2) The entitlement pursuant to subsection (1) is subject to the prescribed limitations in respect of the transfer of funds from pension funds.
(3) Subsection (1) does not apply to a member whose employment is terminated and who
(a) is entitled to immediate payment of a pension benefit under the pension plan or pursuant to Section 49, unless the pension plan provides such an entitlement;
(b) repealed 2002, c. 21, s. 24.
(4) A former member may exercise an entitlement pursuant to subsection (1) by delivering to the administrator within the prescribed period of time a direction in a form supplied by the Superintendent.
(5) Subject to compliance with the requirements of this Section and the regulations, the administrator shall comply with the direction within the prescribed period of time after delivery of the direction.
(6) The administrator shall not make payment
(a) pursuant to clause (b) of subsection (1) unless the retirement savings arrangement meets the requirements prescribed by the regulations; or
(b) pursuant to clause (c) of subsection (1) unless the contract to purchase the deferred life annuity meets the prescribed requirements.
(7) Where a payment pursuant to subsection (1) does not meet the limitations prescribed in relation to transfers of funds from pension funds, the administrator shall not make the payment without the approval of the Superintendent.
(8) The Superintendent may approve the payment subject to such terms and conditions as the Superintendent considers appropriate in the circumstances.
(9) Where a payment that does not meet the limitations prescribed in relation to transfers of funds from pension funds is made without the approval of the Superintendent or there is failure to comply with a term or condition attached to the approval, the Superintendent, subject to Section 89 (reconsideration), may by order require any person to whom payment under subsection (1) has been made to repay an amount not greater than the amount of the payment together with interest thereon.
(10) Subject to Section 89 (reconsideration), an order for payment pursuant to subsection (9), exclusive of the reasons therefor, may be filed in the Supreme Court and is thereupon enforceable as an order of that Court.
(11) The administrator is discharged on making the payment or transfer in accordance with the direction of the former member if the payment or transfer complies with this Act and the regulations. R.S., c. 340, s. 50; 2002, c. 21, s. 24.
51 (1) The administrator of a pension plan who is required by the pension plan to provide a pension, a deferred pension or an ancillary benefit may purchase the pension, deferred pension or ancillary benefit from an insurance company.
(1A) and (1B) repealed 2002, c. 21, s. 25.
(2) The authority of the administrator pursuant to subsection (1) is subject to the entitlement of a member pursuant to Section 50 and to the limitations prescribed in relation to transfers of funds from pension funds.
(3) Where a purchase pursuant to subsection (1) does not meet the limitations prescribed in relation to transfers of funds from pension funds, the administrator shall not make the purchase without the prior approval of the Superintendent.
(4) The Superintendent may approve a purchase mentioned in subsection (3) subject to such terms and conditions as the Superintendent considers appropriate in the circumstances.
(5) Where a purchase that does not meet the limitations prescribed in relation to transfers of funds from pension funds is made without the approval of the Superintendent or there is a failure to comply with a term or condition attached to the approval, the Superintendent, subject to Section 89 (reconsideration), may by order require any person to whom payment under subsection (1) has been made to repay an amount not greater than the amount of the payment together with interest thereon.
(6) Subject to Section 89 (reconsideration), an order for payment pursuant to subsection (5), exclusive of the reasons therefor, may be filed in the Supreme Court and is thereupon enforceable as an order of that Court. R.S., c. 340, s. 51; 1992, c. 27, s. 3; 2002, c. 21, s. 25.
52 (1) Every pension paid under a pension plan to a former member who has a spouse or common-law partner on the date that the payment of the first instalment of the pension is due shall be a joint and survivor pension.
(2) The commuted value of a joint and survivor pension pursuant to subsection (1) shall not be less than the commuted value of the pension that would be payable under the pension plan to the former member.
(3) The amount of the pension payable to the survivor of the former member and the spouse or common-law partner of the former member shall not be less than sixty per cent of the pension paid to the former member during the joint lives of the former member and the former member's spouse or common-law partner.
(4) Subsections (1) to (3) do not apply in respect of
(a) a pension benefit if payment of the pension has commenced before the first day of January, 1988; or
(b) a former member who is living separate and apart from the spouse or common-law partner on the date that payment of the first instalment of the pension is due.
(a) before the first day of January, 1988, a deferred life annuity has been purchased from an insurance company for a person entitled to a deferred pension under Chapter 14 of the Acts of 1975;
(b) payments have not commenced under the annuity on the first day of January, 1988; and
(c) the recipient of the payments has a spouse on the date payments commence,
the annuity shall be paid as a joint and survivor pension in accordance with the requirements of this Section and the insurance company shall make payments accordingly.
(6) For the purpose of subsection (5), the insurance company is deemed to be the administrator under Sections 53 and 54. R.S., c. 340, s. 52; 2000, c. 29, s. 30; 2002, c. 21, s. 26.
53 (1) Before commencing payment of a pension or pension benefit, the administrator of a pension plan shall require the person entitled to the payment to provide to the administrator the information needed to calculate and pay the pension or pension benefit.
(2) The person entitled to the payment shall provide the information to the administrator.
(3) In the absence of actual notice to the contrary, the administrator is discharged on paying the pension or pension benefit in accordance with the information provided by the person in accordance with subsection (2) or, if the person does not provide the information, in accordance with the latest information in the records of the administrator. R.S., c. 340, s. 53.
54 (1) The persons entitled to a joint and survivor pension benefit may waive the entitlement to receive payment of pension benefits in the form of a joint and survivor pension by delivering to the administrator of the pension plan or, in the case of a deferred life annuity, to the insurance company, a written waiver in the prescribed form that shall be supplied by the Superintendent.
(2) The waiver is not effective unless the form or a certified copy is delivered to the administrator or the insurance company, as the case may be, within the period of twelve months immediately preceding the commencement of payment of the pension benefit.
(3) Persons who have delivered a waiver pursuant to subsection (1) may jointly cancel the waiver by delivering a written and signed notice of cancellation to the administrator or the insurance company, as the case may be, before commencement of payment of the pension benefit. R.S., c. 340, s. 54; 2002, c. 21, s. 27.
55 (1) The spouse or common-law partner of a deceased former member of a pension plan who is receiving a pension under the pension plan is not disentitled to payment of the pension by reason only of remarriage after the death of the former member.
(2) Subsection (1) applies in respect of pensions that are being paid on the first day of January, 1988, or that commence to be paid on or after the first day of January, 1988. R.S., c. 340, s. 55; 2000, c. 29, s. 30.
56 (1) Where a person entitled under a pension plan to a deferred pension benefit described in Section 43 dies before commencement of payment of the deferred pension, the person's spouse or common-law partner at the date of death is entitled to receive payment of not less than sixty per cent of the commuted value of the deferred pension.
(2) Where the person dies while employed by the employer, entitlement to a deferred pension and the payment of not less than sixty per cent of the commuted value of the deferred pension shall be calculated as if the person's employment were terminated immediately before the person's death.
(3) Subsections (1) and (2) do not apply where the terms of employment of the deceased person provide for payment of a group life insurance benefit of not less than sixty per cent of the commuted value of the deferred pension.
(4) Where the person does not have a spouse or common-law partner or where subsection (3) applies or where the person is living separate and apart from the person's spouse or common-law partner and a division of the deferred pension has been made pursuant to Section 61, the person's beneficiary or estate is entitled to receive a refund of that person's contributions with interest as prescribed.
(5) Subsections (1) to (4) apply only in respect of contributions made and pension benefits accrued on or after the first day of January, 1988. R.S., c. 340, s. 56; 2000, c. 29, s. 30; 2002, c. 21, s. 28.
57 A pension plan may permit variation in the terms of payment of a pension or deferred pension by reason of the mental or physical disability of a member or former member that is likely to shorten considerably the life expectancy of the member or former member. R.S., c. 340, s. 57.
58 (1) A pension plan may provide for payment to a former member of the commuted value of a benefit if the annual benefit payable at the normal retirement date is not more than four per cent of the year's maximum pensionable earnings in the year that the former member terminated employment or if the commuted value of a benefit is less than ten per cent of the year's maximum pensionable earnings in the year that the former member terminated employment.
(2) A pension plan registered before the first day of January, 1988, may provide that upon termination of employment a person entitled to a deferred pension pursuant to Section 42 (deferred pension) is entitled to payment of an amount not greater than twenty-five per cent of the commuted value of the deferred pension in respect of employment before the first day of January, 1988. R.S., c. 340, s. 58; 2002, c. 21, s. 29.
59 (1) The sex of a member, former member or other beneficiary under a pension plan shall not be taken into account in
(a) determining the amount of contributions required to be made by a member of the plan;
(b) determining the pension benefits or the commuted value of pension benefits that a member, former member or other beneficiary is or may become entitled to;
(c) the provision of eligibility conditions for membership;
(d) the provision of ancillary benefits.
(2) In order to comply with subsection (1), the administrator may
(a) use annuity factors that do not differentiate as to sex;
(b) provide for employer contributions that vary according to the sex of the employee;
(c) use any prescribed method of calculation or valuation.
(3) This Section applies in respect of contributions, benefits and conditions in relation to
(a) employment on or after the first day of January, 1988;
(b) employment before the first day of January, 1988, in so far as it is dealt with in an amendment made to the pension plan on or after that day; and
(c) employment before the first day of January, 1988, in so far as it is dealt with in a pension plan established on or after that day. R.S., c. 340, s. 59.
60 (1) The reduction of a pension benefit that may be required by a pension plan in relation to payment under the Canada Pension Plan, the Quebec Pension Plan or the Old Age Security Act (Canada) shall not exceed the reduction calculated in accordance with the prescribed formula.
(2) repealed 2002, c. 21, s. 30.
(3) The amount of a reduction in a pension benefit required under a pension plan in relation to the payments mentioned in subsection (1) shall not be increased by reason of an increase in the amount of any of the other payments after the date of the member's termination of employment.
(4) A pension plan for registration of which application is made on or after the first day of January, 1988, shall not permit the reduction of a pension or a deferred pension based on a person's entitlement under the Old Age Security Act (Canada).
(5) Subsection (4) does not apply to a pension plan that is a successor of a pension plan registered pursuant to Chapter 14 of the Acts of 1975 that permitted such a reduction.
(6) A pension plan shall not permit the reduction of a pension or deferred pension based on a person's entitlement under the Old Age Security Act (Canada) in respect of a benefit accrued on or after the first day of January, 1988.
(7) The value of a bridging benefit, for receipt of which a member or former member has satisfied all eligibility requirements of the pension plan before the first day of January, 1988, shall not be reduced by reason only of the eligibility of the member or former member to receive a payment before reaching sixty-five years of age under the Canada Pension Plan, the Quebec Pension Plan or the Old Age Security Act (Canada).
(8) Where a pension plan provides a bridging benefit without reference to a specific age at which payment of the bridging benefit is to be reduced or to cease, the pension plan is deemed to provide that the bridging benefit shall be reduced or cease to be paid when the recipient of the bridging benefit reaches sixty-five years of age.
(9) Subsection (8) ceases to apply to a pension plan that is amended on or after the first day of January, 1988, to establish a specific age for the purpose of determining when a bridging benefit shall be reduced or cease to be paid.
(10) Where a pension plan provides for variation of a pension benefit by reason of a benefit payable under the Canada Pension Plan, the Quebec Pension Plan or the Old Age Security Act (Canada) without specifically stating the age at which the variation is to occur, the pension plan is deemed to provide that the variation is to occur when the recipient of the pension benefit reaches sixty-five years of age.
(11) Subsection (10) ceases to apply to a pension plan that is amended on or after the first day of January, 1988, to specifically state the age at which variation of a pension benefit is to occur. R.S., c. 340, s. 60; 2002, c. 21, s. 30.
61 (1) Where a member or former member is entitled to a pension or a pension benefit and
(a) a petition for divorce is filed;
(b) an application is filed for a declaration of nullity; or
(c) the member or former member and that person's spouse or common-law partner have been living separate and apart and there is no reasonable prospect of the resumption of cohabitation,
the pension or pension benefit earned during the marriage or the cohabitation of common-law partners may be divided in accordance with the regulations between the member or former member and that person's spouse or common-law partner by an order of the Supreme Court of Nova Scotia, or in such other manner as is prescribed in the regulations.
(2) Notwithstanding subsection (1), the spouse or common-law partner of the member or former member shall not receive more than one half of the pension or pension benefit earned during the marriage or cohabitation of common-law partners. 2000, c. 29, s. 27.
62 (1) A pension plan is not eligible for registration unless it provides for funding sufficient to provide the pension benefits, ancillary benefits and other benefits under the pension plan in accordance with this Act and the regulations.
(2) An employer required to make contributions under a pension plan, or a person required to make contributions under a pension plan on behalf of an employer, shall make the contributions to
(b) where pension benefits under the pension plan are paid by an insurance company, the insurance company that is the administrator,
in the prescribed manner and in accordance with the prescribed requirements for funding. R.S., c. 340, s. 62.
63 (1) Money that an employer is required to pay into a pension fund accrues on a daily basis.
(2) Interest on contributions shall be calculated and credited at a rate not less than the prescribed rates and in accordance with prescribed requirements. R.S., c. 340, s. 63.
64 The administrator of a pension plan may commence proceedings in a court of competent jurisdiction to obtain payment of contributions due under the pension plan, this Act and the regulations. R.S., c. 340, s. 64.
65 The administrator of a multi-employer pension plan may require a person, who received contributions to the pension fund, or who administers or invests the pension fund, to be bonded in an amount required by the administrator or in the prescribed amount. R.S., c. 340, s. 65.
66 An employer who is required to make contributions to a multi-employer pension plan shall transmit to the administrator a copy of the agreement that requires the employer to make the contributions or a written statement that sets out the contributions the employer is required to make and any other obligations of the employer under the pension plan. R.S., c. 340, s. 66.
67 Every person engaged in the investment of money of a pension fund shall ensure that the money is invested in accordance with this Act and the regulations. R.S., c. 340, s. 67.
68 (1) Subject to this Section, no member or former member is entitled to a refund from a pension fund of contributions made in respect of employment in the Province or a designated province on or after the qualification date.
(2) Subsection (1) does not prevent the refund of an additional voluntary contribution or optional ancillary contribution and interest thereon to a member or former member or a payment pursuant to subsection (4) of Section 47 (entitlement to excess amount).
(2A) repealed 2002, c. 21, s. 31.
(3) Notwithstanding subsection (1), a member whose employment is terminated and who is not entitled to a pension or to a deferred pension pursuant to Section 42 (deferred pension for past service) is entitled to payment within the prescribed period of time of an amount equal to not less than the amount of the member's contributions, and the interest on the contributions, made under the pension plan in respect of the member's employment before the first day of January, 1988.
(4) Notwithstanding subsection (1), a member whose employment is terminated and who is not entitled to a pension or to a deferred pension pursuant to Section 43 (deferred pension) is entitled to payment within the prescribed period of time of an amount equal to not less than the amount of the member's contributions, and the interest on the contributions, made under the pension plan in respect of the member's employment on or after the first day of January, 1988.
(5) Subsection (1) does not apply to
(a) prevent the commutation of a pension benefit pursuant to subsection (1) of Section 58 (commuted value);
(b) prevent a payment pursuant to subsection (2) of Section 58;
(c) such other circumstances as are prescribed.
(6) Subsections (3) and (4) do not apply in respect of a member of a multi-employer pension plan unless the member terminates membership in the multi-employer pension plan.
(7) Subject to subsection (8), on application by the administrator, contributions may be refunded to a member or a former member with the consent of the Superintendent.
(8) On application by the administrator, the Superintendent may consent to a refund pursuant to subsection (7) if the pension plan provides or has been amended to provide for the refund and the employer has assumed responsibility for funding all pension benefits associated with the contributions. R.S., c. 340, s. 68; 1993, c. 35, s. 1; 2002, c. 21, s. 31.
69 (1) A pension plan may provide for shorter qualification periods than those set out in subsection (1) of Section 42 (deferred pension for past service) and subsection (1) of Section 43 (deferred pension).
(2) A pension plan that provides for qualification periods for a deferred pension that are shorter than the periods set out in subsection (1) of Section 42 or subsection (1) of Section 43 may permit a refund of contributions to a person who terminates employment after becoming entitled to a deferred pension under the pension plan before the completion of the qualification period referred to in subsection (1) of Section 42 or subsection (1) of Section 43. R.S., c. 340, s. 69; 2002, c. 21, s. 32.
70 (1) Every transaction that purports to assign, charge, anticipate or give as security money payable under a pension plan is void.
(2) Every transaction that purports to assign, charge, anticipate or give as security money transferred from a pension fund in accordance with Section 50 (transfer), Section 51 (purchase of pension), subsection (1) of Section 56 (pre-retirement death benefit) or subsection (2) of Section 78 (transfer rights on wind up) is void.
(3) Subsections (1) and (2) do not apply to prevent the assignment of an interest in money payable under a pension plan or money payable as a result of a purchase or transfer pursuant to Section 50 or 51, subsection (1) of Section 56 or subsection (2) of Section 78 (transfer rights on wind up) in accordance with Section 61. R.S., c. 340, s. 70; 2002, c. 21, s. 33.
71 (1) Money payable under a pension plan is exempt from execution, seizure or attachment.
(2) Money transferred from a pension fund to a prescribed retirement savings arrangement or for the purchase of a life annuity pursuant to Section 50, 51 or 56 or subsection (2) of Section 78 is exempt from execution, seizure or attachment.
(3) Money payable from a prescribed retirement savings arrangement or from a life annuity purchased in accordance with Section 50, 51 or 56 or subsection (2) of Section 78 is exempt from execution, seizure or attachment. R.S., c. 340, s. 71.
71A (1) Notwithstanding any enactment, for the purpose of enforcement of a maintenance order as defined in the Maintenance Enforcement Act,
(a) money payable under a pension plan to a former member or a person as a result of a division under Section 61 or payable from a prescribed retirement savings arrangement or life annuity that results from a purchase or transfer under Section 50, 51 or 56 or subsection (2) of Section 78 is subject to a garnishment pursuant to the Maintenance Enforcement Act and the prescribed requirements under that Act respecting garnishment;
(b) a deferred pension or pension benefit of a former member or of a person that results from a division under Section 61 or a deferred life annuity or prescribed retirement savings arrangement of a person that results from a purchase or transfer pursuant to Section 50, 51 or 56 or subsection (2) of Section 78 is subject to attachment by the Director of Maintenance Enforcement in accordance with the Maintenance Enforcement Act and the prescribed requirements under that Act respecting attachment of a pension entitlement.
(2) Where an amount has been attached by the Director of Maintenance Enforcement as described in clause (b) of subsection (1), the administrator shall deduct from the commuted value of the deferred pension, pension benefit or the deferred life annuity or from the money transferred to a prescribed retirement savings arrangement,
(a) the cost of complying with the attachment calculated in the prescribed manner;
(b) the total amount of taxes, if any, that are required to be deducted or withheld as a result of the attachment; and
(ii) the remainder of the commuted value of the deferred pension, pension benefit or deferred life annuity or the remainder of the money transferred to a prescribed retirement savings arrangement.
(3) Where an amount has been attached as described in clause (b) of subsection (1),
(a) the person whose entitlement has been attached has no further claim or entitlement to any pension or benefit respecting the amount attached;
(b) the entitlement of a person after the person's entitlement has been attached is calculated on the basis of the commuted value of the person's deferred pension, pension benefit or deferred life annuity after the deduction of the amounts referred to in subsection (2) or the entitlement is the remainder of the money in the prescribed retirement savings arrangement after the deduction of the amounts referred to in subsection (2); and
(c) neither the administrator nor the plan is liable to any person by reason of having made payment pursuant to an attachment referred to in clause (b) of subsection (1). 2000, c. 29, s. 28.
72 (1) A pension, deferred pension, pension benefit, annuity or prescribed retirement savings arrangement that results from a purchase or transfer pursuant to Section 50, 51 or 56 or subsection (2) of Section 78 to which a person is entitled is not capable of being commuted or surrendered during the person's life.
(2) A transaction that purports to commute or surrender such a pension, deferred pension, pension benefit, annuity or prescribed retirement savings arrangement is void.
(3) Subsections (1) and (2) do not apply to a variation of a pension or deferred pension pursuant to Section 57 (variation of payment to disabled person) or to a commutation of a benefit pursuant to Section 58 (commuted value). R.S., c. 340, s. 72.
73 (1) An employer or, in the case of a multi-employer pension plan, the administrator may wind up the pension plan in whole or in part.
(2) The administrator shall give written notice of a wind up of the pension plan to
(b) each member who is affected;
(c) each former member who is affected;
(d) each trade union that represents members;
(e) the advisory committee of the pension plan; and
(f) any other person entitled to a payment from the pension fund who is affected.
(2A) In the case of a proposal to wind up only part of a pension plan, the administrator is not required to give written notice of the proposal to members, former members or other persons entitled to payment from the pension fund if those persons will not be affected by the proposed partial windup.
(3) The notice of wind up shall contain the information prescribed.
(4) A multi-employer pension plan shall not be wound up by reason only of the withdrawal of a participating employer from the pension plan but the Superintendent may, by order, require the wind up if the Superintendent is of the opinion that in the circumstances the plan ought to be wound up.
(5) The effective date of the wind up shall not be earlier than the date member contributions, if any, cease to be deducted, in the case of contributory pension benefits or, in any other case, on the date notice is given to members.
(6) The Superintendent may, by order, change the effective date of the wind up if the Superintendent is of the opinion that there are reasonable grounds for the change. R.S., c. 340, s. 73; 2002, c. 21, s. 34.
74 (1) The Superintendent may, by order, require the wind up of a pension plan in whole or in part if
(a) there is a cessation or suspension of employer contributions to the pension fund except where payments are being made from surplus funds;
(b) the employer fails to make contributions to the pension fund as required by this Act or the regulations;
(c) the employer is bankrupt within the meaning of the Bankruptcy Act (Canada);
(d) a significant number of the members cease to be employed by the employer as a result of the discontinuance of all or part of the business of the employer or as a result of the reorganization of the business of the employer;
(e) all or a significant portion of the business carried on by the employer at a specific location is discontinued;
(f) all or part of the employer's business or all or part of the assets of the employer's business are sold, assigned or otherwise disposed of and the person who acquired the business or assets does not provide a pension plan for the members of the employer's pension plan who become employees of the person;
(g) in the case of a multi-employer pension plan,
(ii) there is a cessation of contributions under the pension plan or a significant reduction in such contributions;
(h) any prescribed event or prescribed circumstance occurs.
(2) In an order pursuant to subsection (1), the Superintendent shall specify the effective date of the wind up, the persons or classes of persons to whom the administrator shall give notice of the order and the information that shall be given in the notice. R.S., c. 340, s. 74.
75 (1) The administrator of a pension plan that is to be wound up in whole or in part shall file a wind-up report that sets out
(a) the assets and liabilities of the pension plan;
(b) the benefits to be provided under the pension plan to members, former members and other persons;
(c) the methods of allocating and distributing the assets of the pension plan and determining the priorities for payment of benefits; and
(d) such information as is prescribed.
(2) No payment shall be made out of the pension fund in respect of which notice of proposal to wind up has been given until the Superintendent has approved the wind-up report.
(3) Subsection (2) does not apply to prevent continuation of payment of a pension or a benefit that commenced before the giving of the notice of proposal to wind up the pension plan or to prevent any payment that is prescribed or that is approved by the Superintendent.
(4) An administrator shall not make payment out of the pension fund except in accordance with the wind-up report approved by the Superintendent.
(5) The Superintendent may refuse to approve a wind-up report that does not meet the requirements of this Act and the regulations or that does not protect the interests of the members and former members.
(6) On the partial wind up of a pension plan, members, former members and other persons entitled to benefits under the pension plan shall have rights and benefits that are not less than the rights and benefits they would have on a full wind up of the pension plan on the effective date of the partial wind up. R.S., c. 340, s. 75.
76 (1) Where a pension plan that is to be wound up in whole or in part does not have an administrator or the administrator fails to act, the Superintendent may act as or may appoint an administrator.
(1A) The Superintendent may terminate the appointment of an administrator appointed pursuant to subsection (1) if the Superintendent considers it reasonable to do so.
(2) The reasonable administration costs of the Superintendent or of the administrator appointed by the Superintendent shall be paid out of the pension fund. R.S., c. 340, s. 76; 2002, c. 21, s. 35.