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Volume 51, No. 24

B.C. Reg. 399/2008

The British Columbia Gazette,

Part II

December 16, 2008

B.C. Reg. 399/2008 , deposited December 9, 2008, pursuant to the MISCELLANEOUS STATUTES AMENDMENT ACT, 2008 [Section 77] and the PENSION BENEFITS STANDARDS ACT [Sections 10 (1) (

d) and 74] and the FAMILY RELATIONS ACT [Section 86]. Order in Council 915/2008, approved and ordered December 8, 2008.

— C. HANSEN, Minister of Finance and Minister Responsible for the Olympics; S. BOND, Presiding Member of the Executive Council.

On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that

(

a) sections 9, 10, 62, 63 and 65 of the Miscellaneous Statutes Amendment Act, 2008 , S.B.C. 2008, c. 30, are brought into force,

(

b) the Pension Benefits Standards Regulation, B.C. Reg. 433/93, is amended as set out in the attached Appendix A, and

(

c) the Division of Pensions Regulation, B.C. Reg. 77/95, is amended as set out in the attached Appendix B.

Appendix A

Section 1 (1) of the Pension Benefits Standards Regulation, B.C. Reg. 443/93, is amended by adding the following

definitions:

"phased retirement benefit" has the same meaning as in

section 38.1 of the Act;

"phased retirement period" has the same meaning as in

section 38.1 of the Act; .

Section 13 (1) is amended by striking out "For the purposes of

section 10 (1) (

d) of the Act," and substituting "For the purposes of

section 10 (1) (d) (

i) of the Act,".

3 The following

section is added:

Phased retirement benefit statement

13.1

(1) For the purposes of

section 10 (1) (d) (ii) of the Act, every administrator must, within 30 days after receiving a completed application in the form required by the administrator for commencement of a phased retirement benefit, provide to a member or former member who is about to commence receiving a phased retirement benefit a statement containing all of the following information as applicable to the member or former member:

(

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

(

b) the name and date of birth of the member;

(

c) if the member or former member has a spouse, the spouse's name and date of birth;

(

d) the date on which the member joined the plan;

(

e) information on the member's or former member's years of employment or years of membership for the purpose of the calculation of pension benefits determined as of the date of the statement;

(

f) information on the annual amount of pension benefit payable at normal retirement date accrued as of the date of the statement;

(

g) information as to whether the pension referred to in paragraph (

f) is reduced by an amount of pension payable under the Canada Pension Plan (Canada) or the Quebec Pension Plan (Quebec);

(

h) information as to whether the pension referred to in paragraph (

f) is reduced by an amount of benefit payable under the Old Age Security Act (Canada) if this is an option provided for by the plan;

(

i) the phased retirement benefit payable, expressed as both

(

i) a percentage of the accrued pension benefit to the date of the statement, and

(ii) a dollar amount;

(

j) the frequency and terms of adjustment, if any, to the phased retirement benefit during the phased retirement period, to reflect accruals earned during the phased retirement period;

(

k) any indexation provisions applicable to the phased retirement benefit or the member's or former member's pension.

(2) The statement under subsection (1) must include

(

a) notice that the phased retirement benefit does not constitute pension under the Act, and

(

b) an explanation of the survivor benefits payable under sections 34 and 35 of the Act, which depend on whether the member or former member dies before or after his or her pension commencement.

Section 20 (6) is repealed and the following substituted:

(6) Despite subsection (2) and if the plan so provides or is amended to provide,

(

a) a temporary program offering enhanced benefits as an incentive for early retirement may be offered if an appropriate funding arrangement is made, and

(

b) a program offering a phased retirement benefit under and in accordance with

section 38.1 of the Act may be offered to a member or former member if an appropriate funding arrangement is made.

Section 22 is amended

(

a) in subsection (1) by striking out "covered by that plan," and substituting "covered by that plan, other than employment under a phased retirement benefit arrangement provided for under the plan," , and

(

b) in subsection (3) by striking out "If the plan provides for the suspension of payment of the pension," and substituting "If the plan provides for the suspension of payment of the pension under subsection (1) (

b) or under a phased retirement benefit arrangement," .

Section 29 (1) is amended in the definition of "life annuity contract" by striking out "that will commence before the end of the calendar year in which the person who is to receive the pension attains the age of 69 years" and substituting "that will commence on or before the day described in

section 38 (9) of the Act".

Schedule 1.1 is amended

(

a) by repealing

section 2 (1) (

b) and substituting the following:

(

b) if the actuarial valuation report indicates a solvency deficiency exists, the administrator will immediately notify the superintendent of the steps that will be taken so that the amount of contributions will become sufficient to meet the funding requirements of this regulation or, subject to

section 59 (3) of the Act, to reduce benefits or entitlements under the plan. , and

(

b) by repealing

section 2 (10) (

b) and substituting the following:

(

b) if the actuarial valuation report indicates a solvency deficiency exists, the administrator must immediately notify the superintendent of the steps that will be taken so that the amount of contributions are sufficient to meet the funding requirements of this regulation or, subject to

section 59 (3) of the Act, to reduce benefits or entitlements under the plan, and .

Appendix B

Section 6 of the Division of Pensions Regulation, B.C. Reg. 77/95, is amended

(

a) in subsection (1) (

a) by striking out "section 74 (a)" and substituting "section 74",

(

b) in subsection (2) by striking out "Subject to subsection (3)," and substituting "Subject to subsections (3) and (4)," , and

(

c) by adding the following subsection:

(4) If the member referred to in subsection (2) or (3) accumulates additional pensionable service after the determination of either a spouse's proportionate share of a phased retirement benefit under

section 74 (b) (ii) of the Act or a spouse's proportionate share of benefits paid under a matured pension under

section 76 (1) of the Act, then the proportionate share must, whenever any of the following may subsequently apply, be recalculated to take into account the additional pensionable service accumulated by the member:

(

a) the spouse is to receive

(

i) a share of the commuted value of the pension under

section 74 (

a) of the Act,

(ii) a separate pension under

section 74 (b) (

i) of the Act, or

(iii) a share of the preretirement survivor benefit under

section 78 (1) of the Act;

(

b) the limited member's estate is to receive a share of the commuted value of the pension under

section 78 (3) of the Act;

(

c) payment of the member's matured pension resumes.

Section 10 is amended by striking out "section 74 (b)" and substituting "section 74 (b) (i)".

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