Bill 10 — First Session, 28Th Legislature, 61 Elizabeth Ii the Legislative Assembly of Alberta Bill 10 Employment Pension Plans Act Mrs. Kennedy-Glans (Legislature 28, Session 1)

L28 S1 11480

Alberta — Bills

2012 Bill 10 First Session, 28th Legislature, 61 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 10 EMPLOYMENT PENSION PLANS ACT MRS. KENNEDY-GLANS First Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Second Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Committee of the Whole . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Third Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Royal Assent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1 Bill 10 Mrs. Kennedy-Glans BILL 10 2012 EMPLOYMENT PENSION PLANS ACT ( A s s e n t e d t o , 2 0 1 2 )

Part 1

Interpretation and Application 1

Interpretation 2 Exemption of plans 3 Publicly funded plans

Part 2 Superintendent of Pensions 4 Appointment and duties of Superintendent of Pensions 5 Superintendent’s authority to extend time limits 6 Terms and conditions 7 Personal liability protection

Part 3 Pension Plan Requirements 8 General requirements of plan text documents 9 Plan text documents to reflect Act provisions 10 Provisions relating to gender 11 Fiscal year of plan

Part 4 Registration and Amendment of Pension Plans Division 1 Registration of Pension Plans 12 Restrictions on administration of plans 13 Application for registration of plans 14 Superintendent must register pl an in appropriate circumstances

2 15 If application is refused or withdrawn 16 Superintendent may cancel plan registration Division 2 Amendment of Plan Text Documents 17 Restrictions on administration of plan if plan text document amended 18 Filings required for registration of amendment to plan text documents 19 Restrictions on administrati on of plan if amendments severed 20 Restrictions on amendments to reduce benefits 21 Amendment to temporarily improve benefits under target benefit provision 22 Superintendent must register amen dment to plan text document in appropriate circumstances 23 Revocation of registration of amendment 24 Transactions may be reversed Division 3 Amendment of Supporting Plan Documents 25 Restrictions on admin istration of plan if supporting plan document amended 26 Amendment to supporting plan documents Division 4 Registration of Plan or Amendment 27 Effective date of plan or amendment 28 Designation of plan

Part 5 Membership in Pension Plans 29 Entitlement of employees to join plan 30 Dispute as to member of class of employees 31 Suspension of membership 32 Vesting of pension

Part 6 Administration of Pension Plans Division 1 Plan Requirements 33 Plan requirements 34 Retention of records Division 2 Administrator 35 Responsibilities of administrator 36 Administrator must enter into participation agreement 37 Administrator must disclos e information and records 38 Administrator must file reports and returns 39 Administrator must disclose insolvency proceedings 40 Repayment of contributions or transfer of benefits 41 Review of plan Division 3 Administrator Must Ensure Policies Established 42 Administrator must ensure governance policy established 43 Administrator must ensure statement of investment policies and procedures established 44 Administrator must ensure funding policy established Division 4 Participating Employers 45 Funding responsibilities of participating employer 46 Participating employer must provide information and records to administrator 47 Trust agreement applies to all participating employers 48 Participating employer must ent er into participation agreement 49 Compelling compliance Division 5 Fundholders 50 Who may act as fundholder 51 Responsibilities of fundholders

Part 7 Funding, Contributions and Assets Division 1 Funding of the Plan 52 Funding requirements for benefit formula provisions 53 Funding requirements for defined contribution provisions 54 Solvency reserve account 55 Letters of credit Division 2 Contributions to the Plan 56 Remitting of contributions 57 Maximum employee contributions for funding pension under benefit formula provision 58 Deemed trust 59 Refund of contributions to avoid revocation 60 Deemed trust for unremitted contributions 61 Registration of claim for contributions Division 3 Investing Plan Assets 62 Investment requirements 63 Interest, gains and losses on contributions and benefits Division 4 Use of Actuarial Excess and Surplus 64 Transfer of actuarial excess or surplus 65 Use of actuarial excess

Part 8 Benefits and Transfers Division 1 Pension Eligibility Date 66 Age requirements of plan text document 67 Pension may start before pension eligibility date 68 If employment continues after pension eligibility date

5 Division 2 Restrictions on Access to Benefits 69 Evidence of entitlement to benefit 70 Locking in commuted value of benefits 71 Exceptions to locking in commuted value of benefits 72 No disposition or attach ment of benefits and money 73 Income and asset testing 74 Restrictions on transfer of assets Division 3 Benefits May Be Affected 75 Maximum years and amounts 76 Adjustments in pension for CPP Act, QPP Act and OAS Act 77 Flexibility for life income type benefits Division 4 Marriage Breakdown 78

Definitions 79 Prevalence of this Division in relation to benefits 80 Application of matrimonial property orders and agreements 81 Division and distri bution of benefits 82 Valuation of benefits 83 Locking-in of non-member pension partner’s share 84 Bar against further claims 85 Adjustment of member’s share 86 Application to Court for clarification, etc. 87 Fees Division 5 Death Benefits 88 Definition 89 Survivor’s benefits if member dies before pension commencement 90 Survivor’s benefits if retired member dies after pension commencement 91 Pension partner’s change in status Division 6 Ancillary and Phased Retirement Benefits 92 Ancillary benefits

6 93 Phased retirement benefit 94 Lump sum payments — pre-retirement Division 7 Additional Voluntary Contributions and Optional Ancillary Contributions 95 Payment out of additional voluntary contributions and optional ancillary contributions Division 8 Transfer of Commuted Value by Members 96 When a transfer may be made under this Division 97 What may be transferred 98 Transfer may be restricted or postponed 99 How transfer may be made 100 When plan can require transfer to be made Division 9 Missing Persons 101

Interpretation 102 Transfer of benefits 103 Transfer of benefits on winding-up 104 Deductions from amounts to be transferred 105 Entitlement to claim under the Unclaimed Personal Property and Vested Property Act 106 Minimum amount to be transferred 107 Confirmation to Superintendent 108 Act no longer applies 109 Use of personal information

Part 9 Changes in Plan Benefit Type or Plan Structure 110 Prescribed rules apply to predecessor and successor plans 111 Rights of members on transfer of membership to another plan 112 Prescribed rules apply when benefit s are converted from one type to another 113 Participating employer’s withdrawal from a collectively bargained multi-employer plan

7 114 Participating employer’s withdrawal from a non-collectively bargained multi-employer plan 115 Continuation of pension plan despit e cessation of benefit accrual

Part 10 Termination and Winding-up of Plan Division 1 Definition 116 Definition Division 2 Terminating Pension Plans 117 Voluntary termination 118 Termination by direction of Superintendent Division 3 After Effective Date of Termination 119 Benefits cease to accrue 120 Required amounts must be remitted 121 Solvency deficiency must be eliminated 122 Termination report required 123 Limitations on payments of pension or benefits Division 4 Winding-up 124 When plan must be wound up 125 Transfer rights on winding-up 126 Allocation and distribution of assets if insufficient to satisfy benefits 127 Surplus on winding-up Division 5 Appointment of Administrator 128 Superintendent’s authority to appoint administrator on plan termination or winding-up 129 Expense of termination and winding-up

Part 11 Monitoring and Enforcement 130 Inspection and production of documents

8 131 Superintendent may request documents 132 Superintendent may apply for order 133 Directions for compliance 134 Superintendent’s authority to appoint administrator 135 Designation of actuary 136 Administrative penalties 137 Enforcement of administrative penalty 138 Expenses of inspections 139 Remedies preserved 140 Limitation on proceedings 141 Failure to pay administrative penalty 142 Remedies preserved 143 Offences and penalties 144 Limitation period for prosecution

Part 12 Reconsiderations and Appeals 145 Superintendent must provide notice of decision 146 Notice of objection 147 Appeal to Tribunal 148 Appointment of an appeal panel

Part 13 Alberta Employment Pension Tribunal 149 Establishment of Tribunal 150 Jurisdiction and powers of Tribunal 151 Amending decision 152 Appeal to the Court

Part 14 Relationships with Other Canadian Jurisdictions 153 Reciprocal powers and agreements with other governments 154 Agreements respecting multi-jurisdictional plans 155 Transitional regulations

Part 15 Regulations and Miscellaneous 156 Service of documents

9 157 Proof of date of service 158 Fees, levies or other assessments 159 Regulations 160 Consequential amendments 161 Repeal 162 Commencement HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows:

Part 1

Interpretation and Application

Interpretation 1(1) In this Act, (a) “active member”, in relation to a pension plan, means an individual who is employed in employment covered by the plan if (

i) he or she is, with respect to that employment, (

A) accruing benefits under the plan, or (

B) contributing to the plan or having contributions made to the plan on his or her behalf, (ii) he or she is not, with respect to that employment, accruing benefits under the plan or contributing to the plan or having contributions made to the plan on his or her behalf because (

A) he or she has elected to suspend his or her membership under

section 31, or (

B) the plan is one under which benefits have ceased to accrue and that is continued with the consent of the Superintendent under

section 115(1),

10 or (iii) he or she is on a temporary absence from that employment; (b) “actuarial excess”, in relation to a pension plan that is not terminated, means the value of the assets of the plan less the value of the liabilities of the plan, both calculated in the prescribed manner; (c) “additional voluntary contributions” means contributions made by a member to a pension plan that are additional to the contributions the member is or was required to make under the plan text document of the plan, and includes interest on those contributions, but does not include (

i) optional ancillary contributions, and (ii) other contributions if, under the terms of the plan text document, payment of those other contributions imposes or imposed on the participating employer an obligation to make additional contributions; (d) “administrator”, in relation to a pension plan, means the person responsible for administering the plan in accordance with

section 35, and includes any person appointed by the Superintendent as an administrator of the plan under

section 128 or as a temporary administrator of the plan under

section 134; (e) “ancillary benefit” means a benefit referred to in

section 92(1); (f) “authorized person” means (

i) the Superintendent, or (ii) a person designated by the Superintendent, in writing, as the Superintendent’s authorized representative; (g) “benefit”, in relation to a pension plan, means a pension, or other monetary amount, that a person is or may become entitled to receive under the plan, but does not include a refund of actuarial excess or surplus; (h) “benefit formula provision” means

11 (

i) a defined benefit provision, (ii) a target benefit provision, or (iii) any provision of the plan text document of a pension plan that is prescribed to be a benefit formula provision; (i) “collective agreement” m eans an agreement between one or more employers and its or their employees, and includes a collective agreement within the meaning of the Labour Relations Code; (j) “collectively bargained multi-employer plan” means a multi-employer plan established through a collective agreement, unless under

section 28 the Superintendent designates the plan as a non-collectively bargained multi-employer plan or a single employer plan, and includes any plan designated by the Superintendent as a collectively bargained multi-employer plan under

section 28; (k) “commuted value”, (

i) in relation to benefits that a person is or may become entitled to receive under a benefit formula provision of a pension plan, means the actuarial present value of those benefits determined in accordance with subsection (2), or (ii) in relation to benefits that a person is entitled to receive under a defined contribution provision of a pension plan, means the total amount of the contributions that are or were required to be made in relation to those benefits, and includes interest on those contributions; (l) “Court”, except in sectio ns 78(

b) and 150(2), means the Court of Queen’s Bench; (m) “CPP Act” means the Canada Pension Plan; (n) “deferred member”, in relation to a pension plan, means an individual who (

i) has ceased to be an active member in the plan,

12 (ii) is entitled to receive a benefit under the plan, and (iii) has not reached his or her pension commencement date; (o) “defined benefit provision” means a provision of the plan text document of a pension plan that establishes a formula by which the amount of the pension that is to be paid to a member is determined, but does not include a target benefit provision or a provision that is prescribed to be a benefit formula provision; (p) “defined contribution provis ion” means a provision of the plan text document of a pension plan that (

i) contemplates that an actual or notional account will be maintained to record what is provided by (

A) contributions, other than additional voluntary contributions, made by or on behalf of a member, and (

B) interest and any other amounts allocated to the account, and (ii) provides that the benefits to which the member is entitled under the provision are determined solely by reference to the amount of that account; (q) “designated beneficiary” means a beneficiary designated under

section 71(2) of the Wills and Succession Act; (r) “effective date of the termination”, in relation to a pension plan, means, (

i) for a termination elected under

section 117, the date that under

section 117(5) is the effective date of the termination of the plan, (ii) for a termination directed under

section 118, the date specified by the Superintendent as the effective date of the termination of the plan, or (iii) for a termination that is neither elected under

section 117 nor directed under

section 118,

13 (

A) subject to paragraph (B), the first date on which benefits cease to accrue under the plan, or (

B) if the Superintendent consents under

section 115(1) to the continuation of the plan and later withdraws that consent and directs that the plan be terminated, the date that under

section 115(6) is the effective date of the termination of the plan; (s) “employee” means an indivi dual who is employed by an employer; (t) “employer” means a person or organization, whether incorporated or not, from whom an employee receives or received remuneration; (u) “excess contributions”, in relation to a member of a pension plan, means the excess referred to in

section 57(2) that is attributable to that member; (v) “federally regulated empl oyment” has the same meaning as “included employment” has in the Pension Benefits Standards Act, 1985 (Canada); (w) “file”, except where a cont rary intention appears, means file with the Superintendent; (x) “financial institution” means a bank, trust corporation, credit union or treasury branch; (y) “fundholder”, in relation to the pension fund of a pension plan, means the entity or combination of entities referred to in

section 50(2) that holds the pension fund; (z) “funding requirements” means (

i) in the case of a pension plan the plan text document of which contains a benefit formula provision, the requirements relating to the funding of the plan that are referred to in

section 52, or (ii) in the case of a pension plan the plan text document of which contains a defined contribution provision, the requirements relating to the funding of the plan that are referred to in the plan text document;

14 (aa) “initial legislation date” means, (

i) subject to subclause (ii), in respect of employment in Alberta, January 1, 1967, or (ii) in respect of federally regulated employment or employment in any other province, the date prescribed for that employment; (bb) “insurance company” mean s a corporation authorized to carry on life insurance business in Canada; (cc) “interest” means interest, gains and losses provided for under

section 63; (dd) “jointly sponsored plan” means a pension plan (

i) that meets the prescribed criteria, (ii) the plan text document of which contains a benefit formula provision, (iii) in which the participating employers and active members are required to make contributions, including, without limitation, contributions to meet the funding requirements applicable to the plan, and (iv) in which responsibility for the governance of the plan is shared among (

A) the participating employers, (

B) the active members of the plan, and (

C) the other classes of members, if any, that are authorized under the plan documents to share in that responsibility; (ee) “life income fund” means a RRIF that is prescribed to be a life income fund; (ff) “locked-in retirement account” means an RRSP that is prescribed to be a locked-in retirement account; (gg) “member” means (

i) an active member,

15 (ii) a deferred member, or (iii) a retired member; (hh) “Minister” means the Minister determined under

section 16 of the Government Organization Act as the Minister responsible for this Act; (ii) “multi-employer plan” means a pension plan administered for employees of 2 or more participating employers that are not affiliates within the meaning of the Business Corporations Act; (jj) “multilateral jurisdiction” means a province that is a party to an agreement under

section 154 and is prescribed to be a multilateral jurisdiction; (kk) “negotiated cost plan” means a pension plan (

i) that is established under a collective agreement, and (ii) contributions to which are determined and limited by the collective agreement; (ll) “non-collectively bargaine d multi-employer plan” means a multi-employer plan established other than through a collective agreement, unless under

section 28 the Superintendent designates the plan as a collectively bargained multi-employer plan or as a single employer plan, and includes any plan the Superintendent designates as a non-collectively bargained multi-employer plan under

section 28; (mm) “OAS Act” means the Old Age Security Act (Canada); (nn) “optional ancillary benefits” means enhanced benefits under a benefit formula provision of the plan text document of a pension plan that are (

i) selected by a member or his or her surviving pension partner, and (ii) funded through optional ancillary contributions made by the member; (oo) “optional ancillary contributions” means contributions

16 (

i) that are made voluntarily by a member under a benefit formula provision of the plan text document of a pension plan, (ii) that are additional to the contributions the member is required to make under the plan, and (iii) that result or may result in optional ancillary benefits being payable, and includes interest on those contributions; (pp) “participating employer”, in relation to a pension plan, means an employer that is required to make contributions to the plan; (qq) “participation agreement” means an agreement referred to in

section 36; (rr) “pension” means a series of periodic payments that, under the terms of the plan text document of a pension plan, is payable, (

i) in the case of payments under a benefit formula provision, for the life of a retired member, whether or not the pension is continued to another person, and (ii) in the case of payments under a defined contribution provision, until the earlier of (

A) the date on which the member dies, and (

B) the date on which the balance in the member’s account referred to in clause (p)(

i) is zero; (ss) “pension commencement date”, (

i) in relation to a member of a pension plan, means (

A) the date the member selects as the date on which the member’s pension is to start if that date is (

I) not earlier than the earliest date provided for in the plan text document of the plan as the date at which a member may start to receive a pension under the plan, and

17 (II) not later than the last date on which a person is allowed under the Income Tax Act (Canada) to start receiving a pension from a registered pension plan, or (

B) if the member does not select a date that complies with subclause (i)(A)(

I) or (II), the last date on which the person is allowed under the Income Tax Act (Canada) to start receiving a pension from a registered pension plan, or (ii) in relation to a surviving pension partner, means the earlier of (

A) the date the surviving pension partner selects in accordance with this Act as the date on which the surviving pension partner’s pension is to start, and (

B) the last date on which the surviving pension partner is allowed under the Income Tax Act (Canada) to start receiving a pension from a registered pension plan; (tt) “pension eligibility date”, in relation to a pension plan, means the age or date provided for in the plan text document of the plan in accordance with

section 66(1) at which the members of the plan are entitled to begin receiving a pension under the plan without reduction or increase to the pension; (uu) “pension fund”, in relation to a pension plan, means the assets of the plan; (vv) “pension partner” means a person who is a pension partner within the meaning of subsection (3); (ww) “pension plan” means a plan, scheme or arrangement organized and administered to provide pensions to members, but does not include a prescribed plan, scheme or arrangement;

18 (xx) “plan documents”, in relation to a pension plan, means the plan text document and all supporting plan documents for the plan; (yy) “plan text document”, in relation to a pension plan, means the record referred to in

section 8(1) that sets out the rights, obligations and entitlements under the plan; (zz) “QPP Act” means

An Act Respecting the Quebec Pension Plan (Quebec); (aaa) “qualified trustee group”, in relation to a pension plan, means individuals who are authorized under

section 50(2)(b)(ii) to hold the pension fund of the plan; (bbb) “reciprocal jurisdiction” means a province that is prescribed to be a reciprocal jurisdiction; (ccc) “registration” means registra tion, under

Part 4 of this Act, of a pension plan or of an amendment to a pension plan, and includes registration under the Employment Pension Plans Act (RSA 2000 cE-8); (ddd) “remuneration” includes wages, salary, pay and commissions; (eee) “retired member”, in rela tion to a pension plan, means an individual who has reached his or her pension commencement date; (fff) “retirement inco me arrangement” means (

i) a life income fund, or (ii) any fund, account or other arrangement that is prescribed to be a retirement income arrangement; (ggg) “RRIF” means a registered retirement income fund within the meaning of the Income Tax Act (Canada); (hhh) “RRSP” means a registered retirement savings plan within the meaning of the Income Tax Act (Canada); (iii) “single employer plan” means a pension plan in which there is only one participating employer or, if there is more than one participating employer, in which all

19 participating employers are affiliates within the meaning of the Business Corporations Act; (jjj) “Superintendent” means the person appointed as the Superintendent of Pensions under

section 4; (kkk) “supplemental pension plan” means a pension plan if the only persons who are, or are eligible to become, members of the plan are persons who are and continue to be members of another pension plan; (lll) “supporting plan document”, in relation to a pension plan, means a record referred to in

section 13(a)(ii), (iii), (iv) or (vi); (mmm) “surplus” means, in relation to a pension plan that has been terminated, the value of the assets of the plan less the value of the liabilities of the plan, both calculated in the prescribed manner; (nnn) “target benefit provision” means a provision of the plan text document of a pension plan that (

i) establishes a formula by which the amount of the pension that is intended to be payable to a member is to be determined, and (ii) provides that the actual benefit under the plan may be reduced below the intended benefit under

section 20(2)(b); (ooo) “temporary absence” means an absence referred to in subsection (4); (ppp) “terminate”, in relation to a pension plan, has the meaning set out in subsection (5); (qqq) “termination of ac tive membership” means, (

i) in relation to an active member of a collectively bargained multi-employer plan that has not terminated, the end of any period of 2 consecutive fiscal years of the plan in which period the member has not completed a total of 350 hours of employment in respect of which contributions are required to be remitted to the plan on his or her behalf,

20 (ii) in relation to an active member of a supplemental pension plan that has not terminated, the termination of the active member’s membership in the pension plan to which the supplemental pension plan is supplemental, (iii) subject to subsection (6), in relation to an active member of any other pension plan that has not terminated, the cessation by the member of the employment in respect of which, under the plan, benefits are accrued or contributions are required to be remitted to the plan on his or her behalf, and (iv) in relation to an active member of a pension plan that has terminated, the termination of the plan, and “terminate active membership” has a corresponding meaning; (rrr) “termination report” means the report required to be filed under

section 122(a); (sss) “trade union” has the same meaning as in the Labour Relations Code; (ttt) “Tribunal” means the Alberta Employment Pension Tribunal established under

section 149; (uuu) “winding-up” means, in relation to a pension plan that has been terminated, the process of distributing the pension fund; (vvv) “Year’s Maximum Pensionable Earnings” has the same meaning as in the CPP Act.

(2) For the purposes of this Act, the actuarial present value of benefits that a person is or may become entitled to receive under a benefit formula provision of a pension plan must be determined (

a) on the basis of actuarial assumptions and methods that are appropriate and in accordance with accepted actuarial practice, (

b) in the prescribed manner, and (

c) in a manner acceptable to the Superintendent.

(3) Persons are pension partners for the purposes of this Act on any date on which one of the following applies: (

a) they (

i) are married to each other, and (ii) have not been living separate and apart from each other for a continuous period longer than 3 years; (

b) if clause (

a) does not apply, they have been living with each other in a marriage-like relationship (

i) for a continuous period of at least 3 years preceding the date, or (ii) of some permanence, if there is a child of the relationship by birth or adoption.

(4) The absence of an employee from employment is a temporary absence if all of the following apply: (

a) no cessation of employment has occurred; (

b) the period of the absence is not more than 52 consecutive weeks; (

c) immediately before the absence the employee was in the employment of a participating employer; (

d) during the absence the employee is not doing work, or providing a service, for a participating employer for remuneration; (

e) after the absence the employee is again in the employment of a participating employer.

(5) A pension plan terminates on the effective date of the termination of the plan.

(6) If a member of a non-collectively bargained multi-employer plan ceases employment, the cessation of employment does not constitute termination of the member’s active membership in the plan if (

a) the plan text document of the plan establishes a period of not more than one year,

22 (

b) the plan text document pr ovides that a member’s cessation of employment does not constitute termination of the member’s active membership in the plan if, before the end of the period referred to in clause (a), the member becomes employed in an employment for which a participating employer is required by the plan to make contributions to that plan on the member’s behalf, and (

c) the member ceasing employment becomes so employed before the end of the period referred to in clause (a).

(7) Subject to subsection (8), for the purposes of this Act, a person is deemed to be employed in the province or territory where his or her employer’s establishment is located and to which the person is required to report for work.

(8) A person who is not required to report for work at his or her employer’s establishment or who is required to report to establishments in different provinces or territories is deemed to be employed in the province where the employer’s establishment is located and from which the person’s remuneration is paid.

(9) The following pension legislation applies to determine the benefit entitlement of a member of a pension plan whose membership terminates: (

a) subject to clauses (

c) and (d), if the province in which the member was last employed is a reciprocal jurisdiction or a multilateral jurisdiction, the pension legislation of that province; (

b) subject to clauses (

c) and (d), if the jurisdiction in which the member was last employed is neither a reciprocal jurisdiction nor a multilateral jurisdiction, the pension legislation of the reciprocal jurisdiction or multilateral jurisdiction in which the member was last employed; (

c) subject to clause (d), if (

i) the member is a member of a collectively bargained multi-employer plan that is registered in a reciprocal jurisdiction or a multilateral jurisdiction other than Alberta (“the extraprovincial plan”),

23 (ii) the member works for a time with a participating employer in a collectively bargained multi-employer plan registered in Alberta (“the Alberta plan”), and (iii) there is an agreement between the administrator of the extraprovincial plan (“the extraprovincial administrator”) and the administrator of the Alberta plan (“the Alberta administrator”) that contributions for the member will be forwarded from the Alberta administrator to the extraprovincial administrator for so long as the member works with a participating employer in the Alberta plan, the pension legislation that, under the extraprovincial plan, is applicable to the member; (

d) if the member was last employed in federally regulated employment, the Pension Benefits Standards Act, 1985 (Canada). Exemption of plans 2 This Act does not apply (

a) to a pension plan referred to in

section 1 of the Public Sector Pension Plans Act, except as provided in the regulations under that Act, (

b) to a Plan within the meaning of the Teachers’ Pension Plans Act, except as provided in the regulations under that Act, (

c) in respect of a pension plan if all of the members of the pension plan are connected with the participating employer within the meaning of

section 8500(3) of the Income Tax Regulations (Canada), except as provided in the regulations, and (

d) to any other prescribed plan, except as provided in the regulations. Publicly funded plans 3(1) In this section, “publicly funded plan” means a pension plan, including a supplemental pension plan, that is

24 (

a) wholly or partially funded, whether directly or indirectly, from a public entity that operates on a non-profit basis and that is, was or has the potential to be an employer under a pension plan covered by the Public Sector Pension Plans Act or the Teachers’ Pension Plan under the Teachers’ Pension Plans Act or from a source related to such an entity, and (

b) designated by the Superintendent, by written notice to that entity and the plan’s administrator, as a publicly funded pension plan for the purposes of this Act;

(2) Except as provided in the regulations, this Act and the regulations apply to a publicly funded pension plan.

Part 2 Superintendent of Pensions Appointment and duties of Superintendent of Pensions 4(1) In accordance with the Public Service Act, there may be appointed a Superintendent of Pensions, who is the chief administrative officer charged with the administration and enforcement of this Act, and a Deputy Superintendent of Pensions.

(2) Subject to subsection (1), the Deputy Superintendent of Pensions has all of the powers, duties and functions of the Superintendent. Superintendent’s authority to extend time limits 5(1) If the Superintendent considers that there are extenuating reasons, the Superintendent may, on request from the administrator of a pension plan, extend a period imposed under this Act within which or by which some act must be done.

(2) A request under subsection (1) (

a) must be made in the form and manner determined by the Superintendent, and (

b) may be made before or after the expiry of the time within which or by which the act is to be done.

25 Terms and conditions 6 The Superintendent may impose conditions on any approval, authorization, extension, consent or permission given by the Superintendent under this Act. Personal liability protection 7(1) In this section, “protected individual” means any of the following: (

a) the Superintendent; (

b) a person designated under

section 1(1)(f)(ii); (

c) an individual acting on behalf of, or under the direction of, the Superintendent.

(2) Subject to subsection (3), no legal proceeding for damages lies or may be commenced or maintained against a protected individual because of anything done or omitted to be done (

a) in the exercise or intended exercise of any power under this Act, or (

b) in the performance or intended performance of any duty under this Act. (3) Subsection (2) does not apply to a protected individual in relation to anything done or omitted to be done in bad faith. (4) Subsection (2) does not absolve the Government from vicarious liability arising out of anything done or omitted to be done by a protected individual for which the Government would be vicariously liable if this

section were not in force.

Part 3 Pension Plan Requirements General requirements of plan text documents 8(1) Subject to this Part, there must be created for a pension plan a record that provides, in accordance with this Act and the regulations, for the following: (

a) the administration and maintenance of the plan;

26 (

b) who is to pay the administration and investment expenses of the plan; (

c) that the pension fund must be held and invested in accordance with this Act and regulations; (

d) the conditions for membership in the plan; (

e) benefits and entitlements on (

i) termination of active membership, (ii) death, (iii) pension commencement dates, and (iv) termination of the plan; (

f) the deadline for selecting any option and the consequences of not meeting the deadline; (

g) how interest is to be calculated on, and when interest is to be credited or debited to, the contributions referred to in

section 63(a); (

h) the treatment and allocation of actuarial excess and surplus; (

i) the method for determining benefits, member and participating employer contributions and the allocation of contributions, which method must use formulas that comply with the prescribed criteria; (

j) the method for converting optional ancillary contributions to optional ancillary benefits; (

k) any other matter that under this Act must be included in a plan text document.

(2) If, under a plan text document, it is possible for a lump sum to become payable to a person, the plan text document must provide that, when the lump sum is payable, that sum may, if and to the extent that the Income Tax Act (Canada) allows, be transferred to an RRSP, with or without conditions, at the option of the person to whom the lump sum is payable.

(3) Unless the plan documents of a pension plan specifically provide otherwise, the administration and investment expenses of the pension plan may be paid from the plan’s pension fund. Plan text documents to reflect Act provisions 9(1) In this section, “applicable provision” means any of the following: (

a) this Part; (

b) Part 5; (

c) Part 7; (

d) Divisions 1, 5 and 8 of

Part 8; (

e) sections 40, 70, 71, 72 and 127; (

f) a regulation made under

section 159(1)(d).

(2) The plan text document of a pension plan must (

a) for each benefit contemplated or made available under an applicable provision, for each contribution or obligation required under an applicable provision and for each entitlement or right provided by an applicable provision, include a provision that provides for (

i) that benefit, contribution or other entitlement, obligation or right, or (ii) a benefit, contribution or other entitlement, obligation or right that is more favourable, having regard to the intent of this Act, to persons who may receive a benefit under the plan, and (

b) for each term defined in

section 1 that applies to the plan, set out the term’s definition.

(3) Despite subsection (2), the plan text document of a pension plan need not include a provision referred to in subsection (2)(a)(

i) or a more favourable provision under subsection (2)(a)(ii) if, (

a) in the opinion of the Superintendent, the provision referred to in subsection (2)(a)(

i) is not and will not be applicable to the plan, and

28 (

b) on application by the administrator, the Superintendent expressly indicates that the plan text document need not include the provision referred to in subsection (2)(a)(i).

(4) To the extent that a plan text document (

a) does not include a provision referred to in subsection (2)(a)(

i) or a more favourable provision under subsection (2)(a)(ii), and (

b) is not exempted under subsection (3) from including such a provision, the plan text document is deemed to include the provision referred to in subsection (2)(a)(i).

(5) Nothing in subsection (4) precludes the Superintendent from directing the administrator of a pension plan to amend the plan text document of the plan to expressly incorporate the provision that the plan is deemed by subsection (4) to include.

(6) The absence from a plan text document of a provision referred to in subsection (3) does not affect the application or possible application of that provision to the pension plan. Provisions relating to gender 10(1) The plan documents of a pension plan must not provide for or allow any of the following: (

a) different rates or amounts of contributions by the members based on differences in gender; (

b) different pensions, annuities or benefits based on differences in gender; (

c) different options as to pensions, annuities or benefits based on differences in gender; (

d) inclusion in or exclusion from membership in the plan on the basis of gender.

(2) In order to comply with subsection (1), the plan documents may provide for (

a) a prescribed method of calculation or valuation, or

29 (

b) a unisex mortality table. Fiscal year of plan 11(1) Unless otherwise provided in the plan text document of a pension plan, the fiscal year of the plan is January 1 to December 31 in each year.

(2) The fiscal year of a pension plan must not be longer than 12 months without the written consent of the Superintendent.

Part 4 Registration and Amendment of Pension Plans Division 1 Registration of Pension Plans Restrictions on administration of plans 12(1) An administrator must not administer a pension plan unless (

a) the plan is registered, (

b) an application for registration of the plan has been filed and the administrator has not received a written notice under

section 145(2) that the Superintendent refuses to register the plan, or (

c) the administrator is otherwise entitled, under

section 146(4)(a), to administer the plan. (2) Subsection (1) does not prevent administration of a pension plan during the prescribed period after the establishment of the plan. Application for registration of plans 13 The administrator of a pension plan must, within the prescribed period after the establishment of the plan, apply for registration of that plan by filing an application, in the form and manner required by the Superintendent, with the following: (

a) a certified copy of

30 (

i) the plan text document, (ii) the record that authorizes the establishment of the plan or under which the plan is established or, if the record applies to more than the establishment of the plan, the portion of the record that applies to the establishment of the plan, (iii) each trust deed or trust agreement, insurance contract, bylaw and resolution relating to the plan, (iv) in the case of a non-collectively bargained multi-employer plan, the participation agreement referred to in

section 36(1)(a), (

v) the list referred to in

section 36(1)(b), and (vi) any other records required by the Superintendent; (

b) if the plan text document of the plan contains a benefit formula provision, (

i) an actuarial valuation report that meets the requirements of

section 38(1)(b)(i), and (ii) a cost certificate, in the form required by the Superintendent, that meets the requirements of

section 38(1)(b)(ii); (

c) a statement in the prescribed form that (

i) in the opinion of the administrator, the plan documents comply with this Act and the regulations, and (ii) the following have been established in relation to the plan: (

A) a governance policy th at meets the requirements of

section 42(1); (

B) a statement of investment policies and procedures that meets the requirements of

section 43(1); (

C) a funding policy that meets the requirements of

section 44.

31 Superintendent must register plan in appropriate circumstances 14 Unless the Superintendent is of the opinion that the records filed under

section 13 in relation to a pension plan do not comply with this Act and the regulations, the Superintendent must (

a) register the plan, and (

b) issue to the administrator a certificate of registration for the plan. If application is refused or withdrawn 15 If the Superintendent refuses to register a pension plan or if the application to register a pension plan is withdrawn before registration of the plan, there must be returned, to each person who made contributions to the plan, the amount of those contributions (

a) plus interest on the person’s contributions, and (

b) less the person’s proportionate share of any reasonable expenses incurred in relation to the application for registration and the return of contributions. Superintendent may cancel plan registration 16 The Superintendent may cancel the registration of a pension plan that has terminated and wound up in accordance with this Act and the regulations. Division 2 Amendment of Plan Text Documents Restrictions on administration of plan if plan text document amended 17 Without limiting

section 19(b), an administrator must not administer a pension plan in a manner that reflects an amendment to the plan text document unless (

a) the application for registra tion of the amendment has been filed and the administrator has not received a written notice under

section 145(2) that the Superintendent refuses to register the amendment, or (

b) the administrator is otherwise entitled, under

section 146(4)(b), to administer the plan in that manner.

32 Filings required for registration of amendment to plan text documents 18 If an amendment is made to the plan text document of a pension plan, the administrator must, within the prescribed period and in the form and manner required by the Superintendent, file (

a) a certified copy of the amendment, (

b) a statement in the prescribed form that, in the opinion of the administrator, the amendment complies with this Act and the regulations, and (

c) any other records required by the Superintendent. Restrictions on administration of plan if amendments severed 19 If, under

section 22(3), the Superintendent has severed a portion of an amendment to the plan text document of a pension plan, the administrator of the plan (

a) must administer the plan in a manner that reflects the remaining portion of the amendment, and (

b) must not administer the pl an in a manner that reflects the severed portion of the amendment unless the administrator is entitled, under

section 146(4)(b), to administer the plan in a manner that reflects the amendment including the severed portion. Restrictions on amendments to reduce benefits 20(1) An amendment to the plan text document of a pension plan must not (

a) reduce a person’s benefits relating to employment in which the person engaged on or after the initial legislation date and before the later of the date on which the records referred to in

section 18 are filed in relation to the amendment and the effective date of the amendment, (

b) reduce a person’s benefits in respect of remuneration, employment or membership before January 1, 1966 by taking into account the person’s pension under the CPP Act or the QPP Act, or

33 (

c) reduce a person’s ancillary benefits if the person has met all the requirements of the plan text document that are necessary to exercise the right to receive the benefit.

(2) Despite subsection (1), the administrator of a pension plan, (

a) if the plan is either a negotiated cost plan or a jointly sponsored plan and the plan text document of the plan does not contain a target benefit provision, may, with the written consent of the Superintendent, amend the plan text document to reduce benefits if the circumstances of the plan require reduced benefits, (

b) if the plan text document of the plan contains a target benefit provision, must, in the prescribed circumstances and within the prescribed period, amend the plan text document to do one or more of the following: (

i) reduce or eliminate the ancillary benefits under the plan in accordance with

section 92(3); (ii) reduce the benefit that, under the target benefit provision, was intended to be paid, which reduction may, but need not, apply to accrued benefits; (iii) increase the amount of the contributions payable under the plan, or (

c) may amend the plan text document to reduce benefits if the amendment is for the purpose of compliance with the Income Tax Act (Canada). Amendment to temporarily improve benefits under target benefit provision 21(1) In this section, “temporary improvement in benefits”, in relation to a target benefit provision, means a temporary increase to the pensions to which retired members are entitled under the provision.

(2) If the plan text document of a pension plan contains a target benefit provision, that plan text document may, in the prescribed circumstances, be amended to provide, for not longer than the

34 period within which those prescribed circumstances continue to exist, a temporary improvement in benefits.

(3) If the Superintendent is of the opinion that the prescribed circumstances referred to in subsection (2) no longer exist, the Superintendent may direct the administrator to cease providing the temporary improvement in benefits referred to in the amendment. Superintendent must register amendment to plan text document in appropriate circumstances 22(1) After the filing, under

section 18, of a certified copy of an amendment to the plan text document of a pension plan, the Superintendent, subject to subsection (2) of this section, must (

a) register the amendment, and (

b) issue to the administrator a notice of registration for the amendment.

(2) Without limiting any other basis on which the Superintendent may refuse to register an amendment to the plan text document of a pension plan, the Superintendent may refuse to register the amendment (

a) if the Superintendent is of the opinion that the amendment does not comply with this Act or the regulations, (

b) if the Superintendent is of the opinion that the administrator has not complied with this Act in respect of the amendment, or (

c) in the prescribed circumstances.

(3) For the purposes of this section, the Superintendent may sever from an amendment referred to in subsection (1) that portion of the amendment that does not comply with this Act or the regulations, and register in accordance with subsection (1) the remaining portion of the amendment. Revocation of registration of amendment 23(1) The Superintendent may revoke the registration of an amendment to a plan text document if the amendment does not comply with this Act or the regulations.

(2) A revocation under subsection (1) has effect from a date that is not earlier than the date determined by the Superintendent to be the date on which the non-compliance under subsection (1) occurred or began. Transactions may be reversed 24 If an amendment to the plan text document of a pension plan has been filed for registration and the Superintendent notifies the administrator of the plan in writing that the registration of the amendment has been refused or revoked, the Superintendent may (

a) direct that all or part of the refusal or revocation has retroactive effect, and (

b) direct the administrator to reverse any transactions that were based on the assumption that the amendment would be registered or would remain registered, as the case may be. Division 3 Amendment of Supporting Plan Documents Restrictions on administration of plan if supporting plan document amended 25 An administrator must not administer a pension plan in a manner that reflects an amendment to a supporting plan document unless a certified copy of a record setting out the amendment has been filed.

Amendment to supporting plan documents 26(1) If an amendment is made to a supporting plan document, the administrator must, within the prescribed period and in the form and manner required by the Superintendent, file (

a) a certified copy of a record setting out the amendment, (

b) a statement in the prescribed form that, in the opinion of the administrator, the amendment complies with this Act and the regulations, and (

c) any other records required by the Superintendent.

(2) If a new supporting plan document is made, whether or not it replaces an existing supporting plan document, subsection (1) applies as if the new supporting plan document were an amendment to a supporting plan document. Division 4 Registration of Plan or Amendment Effective date of plan or amendment 27(1) Subject to

section 20(1), a pension plan or an amendment to a plan text document of a pension plan may be made effective on a date that is before, on or after the date on which the plan or amendment is registered.

(2) An amendment to a supporting plan document may be made effective on a date that is before, on or after the date on which a certified copy of a record setting out the amendment is filed. Designation of plan 28 On or after the registration of a pension plan or of an amendment to the plan text document of a pension plan, the Superintendent may designate the plan as a collectively bargained multi-employer plan, a non-collectively bargained multi-employer plan or a single employer plan.

Part 5 Membership in Pension Plans Entitlement of employees to join plan 29(1) Each employee in each class of employees for whom a pension plan is maintained is, on application, entitled to become a member of the plan if, (

a) in the case of a single employer plan, (

i) the employee has completed 2 years of employment with the participating employer, including any temporary absences from that employment in that period, and has not, during that 2-year period, ceased to be employed by that participating employer, and

37 (ii) the employee has earned from that employment, in each of 2 consecutive calendar years, not less than 35% of the Year’s Maximum Pensionable Earnings, (

b) in the case of a non-collectively bargained multi-employer plan, (

i) the employee has completed 2 years of employment with a participating employer, or if the plan text document of the plan allows, with 2 or more participating employers, including any temporary absences from that employment in that period, and has not, during that 2-year period, ceased to be employed by the participating employer or participating employers, and (ii) the employee has earned from that employment, in each of 2 consecutive calendar years, not less than 35% of the Year’s Maximum Pensionable Earnings, or (

c) in the case of a collectively bargained multi-employer plan, (i) 2 years has elapsed since the employee was first employed with a participating employer, and (ii) the employee has earned from employment with one or more participating employers, in each of 2 consecutive calendar years, not less than 35% of the Year’s Maximum Pensionable Earnings.

(2) Despite subsection (1), the plan text document of a pension plan may provide that, as part of the terms and conditions of an employee’s employment, (

a) the employee must be a member of the plan, or (

b) the employee becomes a me mber of the plan if the employee (

i) receives the prescribed notice, and (ii) does not, within the pres cribed period after receiving that notice, elect in the prescribed manner not to be a member.

(3) If an employee is eligible to join 2 or more of his or her employer’s pension plans, the plan text documents of one or more of the plans may limit the employee’s eligibility for membership to only one of those plans.

(4) Except in a situation described in the prescribed rules referred to in

section 110, a person must not be required, as part of the terms and conditions of his or her employment or prospective employment, to transfer to any pension plan any of the commuted value of a benefit under another plan.

Dispute as to member of class of employees 30 If there is a dispute as to whether or not an employee is a member of a class of employees for whom a pension plan is established or maintained and the Superintendent is of the opinion that, based on the nature of the employment or of the terms of employment of the employee, the employee is a member of that class, the Superintendent may require the administrator to accept the employee as a member.

Suspension of membership 31(1) The plan text document of a pension plan may provide that an active member may suspend his or her membership in the plan while continuing to do work, or to provide a service, in an employment covered by the plan.

(2) If the plan text document of a pension plan allows an active member to suspend his or her membership, (

a) it may provide that there will be no accrual of benefits during the suspension, and (

b) it must provide that the suspended member has the right to lift the suspension at any of the times prescribed.

(3) If a person suspends his or her membership in a pension plan, (

a) the suspended member is no t entitled to receive or transfer any benefits from the plan until the plan, or his or her membership in the plan, is terminated, and (

b) the suspension of membership does not constitute a termination of active membership.

39 Vesting of pension 32(1) If a member’s termination of active membership in a pension plan occurs while the member is employed in Alberta in employment other than federally regulated employment, there immediately vests in the member, despite any other enactment or any provision of the plan documents, an entitlement to receive a pension in respect of the entire period during which he or she was an active member of the plan, whether or not the member was employed in Alberta during all of that period.

(2) The pension payable to a member under subsection (1) must not be less than the pension that, under the terms of the plan text document as it read at the date of the member’s termination of active membership, is payable for that employment.

(3) If the commuted value of the pension to which a member is entitled as a result of employment in the period from the initial legislation date to January 1, 1987 is less than the value of the member’s contributions, with interest, made to the pension plan toward the pension, the pension must be increased so that the commuted value of the increased pension is not less than the value of the member’s contributions with interest.

Part 6 Administration of Pension Plans Division 1 Plan Requirements Plan requirements 33 Every pension plan must have (

a) an administrator who meet s the applicable prescribed criteria, (

b) at least one participating employer, and (

c) a fundholder. Retention of records 34 An administrator of a pension plan, a participating employer, a fundholder and any other prescribed person who has within the person’s custody or control any record relating to the plan must,

40 subject to and in accordance with the regulations, retain the record or a copy of it in Canada. Division 2 Administrator Responsibilities of administrator 35(1) The administrator of a pension plan must ensure that the plan and the pension fund are administered in accordance with this Act, the regulations and the plan documents.

(2) While acting in the capacity of administrator of a pension plan, the administrator stands in a fiduciary capacity in relation to (

a) the members, and (

b) others entitled to benefits.

(3) Without limiting subsection (2), the administrator, while acting in the capacity of administrator of a pension plan, must (

a) act honestly, in good faith and in the best interests of (

i) the members, and (ii) others entitled to benefits, and (

b) exercise the care, diligence and skill that a person of ordinary prudence would exercise when dealing with the property of another person.

(4) The administrator of a pension plan or, if the administrator is a board of trustees, a member of that board, must not, while acting in the capacity of administrator, knowingly allow his or her interests to conflict with the administrator’s powers and duties in respect of the pension plan.

(5) For the purpose of subsection (4), an administrator does not knowingly allow the interests of the administrator to conflict with the administrator’s powers and duties in respect of the pension plan merely because the administrator is or may become entitled to a pension or other benefit under the plan.

(6) In addition to any other responsibilities under this Act, an administrator of a pension plan must (

a) ensure that the plan documents comply with this Act and the regulations, (

b) if the plan is terminated, en sure that the plan is wound up in accordance with this Act and the regulations, (

c) ensure that any agreemen t respecting the transfer of money or benefits between the plan and any other pension plan does not contain any provision, relating to a benefit, that a pension plan is prohibited by this Act from containing, and (

d) perform any other duties the administrator is obligated under the regulations to perform.

(7) If an administrator employs an agent to exercise one or more of the powers or to perform one or more of the duties of the administrator, the administrator must (

a) be satisfied that the agent is qualified to exercise the powers or to perform the duties for which the agent is employed, and (

b) carry out reasonable and prudent supervision of the agent. Administrator must enter into participation agreement 36(1) The administrator of a non-collectively bargained multi-employer plan must (

a) enter into a written par ticipation agreement with the participating employers in the plan, which agreement must (

i) meet the prescribed criteria, and (ii) provide for the roles and responsibilities of the parties to the agreement, and (

b) prepare a list of all par ticipating employers who have signed that agreement.

(2) An administrator referred to in subsection (1) must, in the form and manner required by the Superintendent, notify the Superintendent of any participating employer who, after the agreement has been filed, signs the agreement or ceases to be a party to the agreement. Administrator must disclose information and records 37(1) Subject to and in accordance with the regulations, the administrator of a pension plan must, without charge, provide prescribed information, including records, (

a) to members, (

b) in the case of a member who is entitled to a benefit who is deceased, to whichever of the following is entitled to receive the benefit: (

i) the surviving pension partner of the deceased, or (ii) the person who is, in relation to the benefit, the designated beneficiary, or, if no person referred to in subclause (

i) or (ii) is entitled to the benefit, the personal representative of the estate of the deceased, (

c) to employees who are, or are about to be, eligible to become active members of the plan, and (

d) to prescribed persons.

(2) Subject to and in accordance with the regulations, if any of the persons referred to in subsection (1)(a), (b), (

c) or (

d) requests access to prescribed information, the administrator of the pension plan in relation to which the request was made must, at the option of the administrator, either (

a) allow the person to examine the prescribed information without charge at a prescribed place, or (

b) provide to the person, without charge, a copy of the prescribed information that the person has requested.

(3) Despite subsections (1) and (2)(a), if a person who is allowed to examine information in accordance with subsection (2)(

a) instead requests, in writing, a copy of the information, the

43 administrator must, within the prescribed period, provide a copy of the information to that person on payment of a charge not exceeding the reasonable costs incurred in making and providing the copy.

(4) Subject to and in accordance with the regulations, an administrator of a pension plan, after receiving a written request from (

a) a participating employer in the plan, (

b) a trade union whose membersh ip includes or consists of members of the plan, or (

c) a prescribed person, must provide to the requesting person or body a copy of any prescribed record on payment of a charge not exceeding the reasonable costs incurred in making and providing the copy.

(5) Unless otherwise directed by the Superintendent, an administrator is not required to comply with a person’s request under subsection (2), (3) or (4) for information if the administrator has already provided that information to that person in compliance with a request made under one of those subsections within the 12 months immediately preceding receipt of the most current request. Administrator must file reports and returns 38(1) Subject to this section, the administrator of a pension plan must, at the times prescribed and in the form and manner required by the Superintendent, file (

a) returns containing prescribed information relating to the plan, (

b) if the plan text document of the plan contains a benefit formula provision, (

i) actuarial valuation reports that (

A) contain the prescribed information, (

B) are prepared by a Fellow of the Canadian Institute of Actuaries,

44 (

C) are prepared on the prescribed basis and on the basis of actuarial assumptions and methods that are appropriate and in accordance with accepted actuarial practice, (

D) identify the contributio ns that are sufficient to meet the funding requirements applicable to the plan, (

E) are satisfactory to the Superintendent, and (

F) if applicable, contain a certification by the preparer that the results of the independent valuation prepared under subsection (2)(

b) have been incorporated into the report, and (ii) cost certificates that (

A) are signed by a Fellow of the Canadian Institute of Actuaries, (

B) are satisfactory to the Superintendent, (

C) include information necessary for the Superintendent to be able to determine whether the plan will meet the funding requirements applicable to the plan, and (

D) contain prescribed information, and (

c) prescribed financial stat ements prepared in accordance with prescribed standards.

(2) Subject to this section, at the written request of the Superintendent, the administrator of a pension plan must file any record required by the Superintendent at the time or times, and in the form and manner, required by the Superintendent, including, without limitation, the following: (

a) if contributions to or benefits from the plan are determined under the provisions of a collective agreement or an arbitration award, a copy of those provisions and of any amendments to them;

45 (

b) an independent valuation of the market value of the plan’s assets or of a specific asset or category of assets; (

c) an actuarial valuation report and a cost certificate, prepared as at a date specified by the Superintendent, that meet the requirements set out in subsection (1)(b).

(3) If the Superintendent considers that the actuarial valuation report or cost certificate filed by an administrator under subsection (1)(

b) or (2)(

c) does not comply with the subsection under which it is filed, (

a) the Superintendent must notify the administrator, in writing, of that fact, and (

b) the administrator must promptly have the report or certificate amended to comply with the subsection under which it is filed. Administrator must disclose insolvency proceedings 39 If there is, in respect of a participating employer in a pension plan other than a collectively bargained multi-employer plan, a proceeding (

a) under the Companies’ Creditors Arrangement Act (Canada), (

b) under the Winding-up and Restructuring Act (Canada) or similar provincial legislation, (

c) in relation to liquidation, receivership or secured creditor enforcement, or (

d) under the Bankruptcy and Insolvency Act (Canada), the administrator of the plan must, immediately after becoming aware of the commencement of the proceeding, provide to the Superintendent written notice of that proceeding. Repayment of contributions or transfer of benefits 40 If a person becomes entitled or obligated to receive a lump sum payment or a transfer of benefits from a pension plan, the administrator must, in accordance with the regulations, make the payment or transfer.

46 Review of plan 41(1) The administrator of a pension plan must, at the times and in the manner required by the regulations, assess the administration of the plan, including, without limitation, (

a) the plan’s compliance with this Act and the regulations, (

b) the plan’s governance, (

c) the funding of the plan, (

d) the investment of the pension fund, (

e) the performance of th e trustees, if any, and (

f) the performance of the admi nistrative staff and any agents of the administrator.

(2) The administrator must prepare the assessment required under subsection (1) in writing and must retain that written assessment and make it available to the Superintendent on the Superintendent’s request. Division 3 Administrator Must Ensure Policies Established Administrator must ensure governance policy established 42(1) The administrator of a pension plan must ensure that a written governance policy that meets the prescribed criteria is established in respect of the structures and processes for overseeing, managing and administering the plan.

(2) The administrator of a pension plan must ensure that the plan is administered in accordance with the governance policy established under subsection (1). Administrator must ensure statement of investment policies and procedures established 43(1) The administrator of a pension plan must ensure that a written statement of investment policies and procedures that meets the prescribed criteria is established in respect of the plan’s portfolio of investments.

(2) The administrator of a pension plan must ensure that the pension fund is invested in accordance with the statement of investment policies and procedures established under subsection (1).

(3) If the plan text document of a pension plan contains a benefit formula provision, the administrator of the plan must provide to the actuary engaged to prepare the actuarial valuation report for the plan under

section 38 a copy of the statement of investment policies and procedures on or before the later of (

a) the date that is 60 days after the establishment of or amendment to the statement, and (

b) the effective date of the actuary’s engagement. Administrator must ensure funding policy established 44 If the plan text document of a pension plan contains a benefit formula provision, the administrator of the plan must (

a) ensure that a written funding policy is established that meets the prescribed criteria respecting funding objectives and sets out the intended method for achieving those objectives, and (

b) provide to the actuary e ngaged to prepare the actuarial valuation report for the plan a copy of the funding policy on or before the later of (

i) the date that is 60 days after the establishment or amendment of the funding policy, and (ii) the effective date of the actuary’s engagement. Division 4 Participating Employers Funding responsibilities of participating employer 45(1) The participating employers in a pension plan must comply with the funding requirements applicable to the plan.

(2) Without limiting subsection (1), the participating employers in a pension plan must, in accordance with

section 56, the regulations and the plan documents, remit to the pension fund the contributions

48 that are required to meet the funding requirements applicable to the plan. Participating employer must provide information and records to administrator 46(1) On the written request of the administrator of a pension plan, a participating employer or a former participating employer must, within any reasonable period that is specified in the request, provide the administrator with information or records required by the administrator for the purpose of administering the plan in compliance with this Act, the regulations and the plan documents.

(2) A request under subsection (1) must specifically identify the information or records required under that subsection.

(3) If the participating employer or former participating employer requests that any records provided under subsection (1) be returned, the administrator must return those records within a reasonable period.

(4) The administrator may make copies of or take extracts from any records provided under subsection (1). Trust agreement applies to all participating employers 47 Despite any other law, if a multi-employer plan has been established by or under a trust agreement, the participating employers in the plan are bound by the trust agreement and by any amendments to it, whether or not they were parties to the agreement under which the trust was established or amended.

Participating employer must enter into participation agreement 48 An employer must, within the prescribed period after becoming a participating employer in a non-collectively bargained multi-employer plan, enter into a participation agreement that complies with

section 36(1) with the administrator. Compelling compliance 49(1) If a participating employer or former participating employer does not comply with a requirement of

section 46, the administrator may apply to the Court for an order to compel compliance and, in that event, must give notice of the application to the Superintendent

49 in addition to any other notice that must be provided under the Alberta Rules of Court.

(2) The Court may, subject to any conditions that the Court considers appropriate, make an order compelling the participating employer or former participating employer to comply with

section 46 if the Court is satisfied that the information or records requested by the administrator are (

a) within the participating employer’s or former participating employer’s possession, power or control, and (

b) required for the purpose referred to in

section 46(1). Division 5 Fundholders Who may act as fundholder 50(1) In this section, “significant shareholder”, in relation to a participating employer that is a corporation, means an individual who, alone or in combination with his or her parent, brother, sister, pension partner or child, owns or has, directly or indirectly, a beneficial interest in shares that represent 10% or more of the voting entitlement attached to all the shares of the participating employer.

(2) The pension fund of a pension plan must be held by (

a) an insurance company under an insurance contract, (

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

i) a trust company, or (ii) 3 or more individuals (

A) at least 3 of whom reside in Canada, and (

B) at least one of whom is not a significant shareholder, partner or employee of a participating employer or a proprietor of the business of a participating employer,

50 (

c) a board, agency, commission, corporation or other entity that, under an enactment, is responsible for holding the pension fund, (

d) a prescribed person or entity, or (

e) a combination of the persons or entities referred to in clauses (

a) to (d). Responsibilities of fundholder 51 The fundholder of a pension plan must (

a) hold the pension fund in acco rdance with this Act and the regulations, and (

b) perform any other duties provided for in this Act and the regulations.

Part 7 Funding, Contributions and Assets Division 1 Funding of the Plan Funding requirements for benefit formula provisions 52(1) This

section applies only to plan text documents that contain a benefit formula provision.

(2) The plan text document of a pension plan must provide that the plan must be funded by the participating employers, or in the case of a jointly sponsored plan, by the participating employers and the active members, in accordance with (

a) the funding requirements pr escribed for the purposes of this section, and (

b) the most current actuarial valuation report and cost certificate, filed in relation to the plan, as amended in accordance with any notification of the Superintendent under

section 38(3).

(3) For a negotiated cost plan, the liability of a participating employer, or in the case of a jointly sponsored pension plan, the

51 liability of the participating employers and the active members, for funding the benefits under the plan is limited to the amount that the participating employer is, or the participating employers and active members are, contractually required to contribute to the plan.

(4) For a pension plan the plan text document of which contains a target benefit provision, the liability of a participating employer, or in the case of a jointly sponsored pension plan, the liability of the participating employers and the active members, for funding the benefits under the target benefit provision is limited to the amount that the participating employer is, or the participating employers and active members are, contractually required to contribute to the plan.

Funding requirements for defined contribution provisions 53 If the plan text document of a pension plan contains a defined contribution provision, the participating employers in the plan must fund the plan in accordance with the contributions required by the plan documents. Solvency reserve account 54(1) In this section, “solvency reserve account” means the separate account set up under subsection (2).

(2) If the plan text document of a pension plan contains a benefit formula provision other than a target benefit provision, the administrator may set up a separate account within the plan’s pension fund.

(3) The only funds that may be deposited to a solvency reserve account are payments made in respect of a solvency deficiency.

(4) Without limiting subsection (3), assets must not be transferred from an account in a pension fund to a solvency reserve account in the same pension fund.

(5) Despite any wording in the plan text document of a pension plan, prescribed actuarial excess or surplus in the solvency reserve account may be withdrawn, subject to and in accordance with the regulations, by a prescribed person.

52 Letters of credit 55(1) The participating employers in a pension plan, other than participating employers in a collectively bargained multi-employer plan, may, instead of making some or all of the payments required with respect to a solvency deficiency, provide to the fundholder a letter of credit made out to the fundholder for the benefit of the plan, but only if the letter of credit and the bank or credit union obligated under the letter of credit satisfy the prescribed criteria.

(2) A fundholder to which a letter of credit is provided under subsection (1) holds the letter of credit in trust for members of the pension plan and for any other persons entitled to benefits under the plan in accordance with their respective interests under that plan.

(3) In prescribed circumstances, the fundholder must demand payment of the amount of the letter of credit into the pension fund by the issuer of that letter of credit. Division 2 Contributions to the Plan Remitting of contributions 56(1) The participating employers in a pension plan must, within the prescribed period, remit member and participating employer contributions due to the pension fund as follows: (

a) in the case of a single employer plan, to the fundholder; (

b) in the case of a collectively bargained multi-employer plan, to the administrator; (

c) in the case of a non-collectively bargained multi-employer plan, to the administrator or the fundholder as set out in the plan text document.

(2) If the administrator of a multi-employer plan is not the fundholder, the administrator must, promptly after receiving contributions remitted under subsection (1)(

b) or (c), remit the contributions to the fundholder.

(3) If the participating employers do not remit contributions in compliance with subsection (1) within 30 days after the end of the prescribed period referred to in that subsection, the administrator or the fundholder to whom the contributions ought to have been remitted must, within 15 days, provide to the Superintendent,

53 whether or not the contributions were subsequently remitted, a written notice (

a) advising of the failure of the participating employers to remit, (

b) setting out any other information required by the regulations, and (

c) setting out any other information necessary to allow the Superintendent to exercise his or her powers or perform his or her duties under this Act. (4) Subsection (3) does not apply to a collectively bargained multi-employer plan.

(5) The administrator of a pension plan, other than a collectively bargained multi-employer plan, must provide to the fundholder, at the prescribed time and in the form required by the Superintendent, a

summary of the contributions required to be made in respect of the plan. Maximum employee contributions for funding pension under benefit formula provision 57(1) This

section applies to contributions applicable to, and to benefits under, a benefit formula provision other than contributions applicable to and benefits under a jointly sponsored plan.

(2) Subject to subsections (3), (5), (6) and (7), if the total of (

a) the contributions made by a member of a pension plan on and after January 1, 1987, and (

b) the interest that has accrued on those contributions exceeds 1/2 of the commuted value of that portion of the member’s benefit that relates to his or her membership in the plan during the period in which the member was required to make contributions on and after January 1, 1987, the excess must be allocated or distributed in the manner required under subsection (4). (3) Subsection (2) does not apply to the following contributions or to the benefits resulting from them: (

a) additional voluntary contributions;

54 (

b) optional ancillary contributions; (

c) contributions made to secure improvements in, or to purchase, benefits related to past service before or after the initial legislation date if the benefit improvement is provided entirely from the member’s contributions; (

d) contributions made by an active member of a collectively bargained multi-employer plan in any fiscal year of the plan to increase the pension to which the member is entitled up to the maximum allowed for that year.

(4) Subject to subsection (6), if the excess referred to in subsection (2) exists at one of the prescribed times, the excess must be allocated or distributed in whichever of the following manners the member elects: (

a) paid as a lump sum to the member or to a person who is to receive a benefit under

section 89; (

b) transferred to another pension plan, if and to the extent that the other plan allows the transfer; (

c) transferred to an RRSP or an RRIF; (

d) transferred to an insurance company to purchase a deferred pension; (

e) used to increase the amount of the pension, if and to the extent that the plan text document of the pension plan provides for that election.

(5) If the plan text document of a pension plan contains a benefit formula provision, the plan text document may provide, in relation to deferred members to whom the excess referred to in subsection (2) is to be allocated or distributed under subsection (4), that if such a member’s pension commencement date does not immediately follow the termination of his or her active membership or the conversion of the benefit formula provision to a defined contribution provision, the excess (

a) is to be recalculated as of the member’s pension commencement date, and (

b) is not to be allocated or distributed until that recalculation is done.

(6) If a member to whom the excess referred to in subsection (2) is to be allocated or distributed dies before reaching his or her pension commencement date, the excess must be allocated or distributed as follows: (

a) if there is a surviving pension partner and both of the following apply: (

i) the pension partner had not provided a waiver under

section 89(1)(

b) before the member’s death, and (ii)

section 84 does not apply to the pension partner, the excess must be allocated or distributed in whichever of the manners referred to in subsection (4)(

a) to (

e) that the pension partner elects; (

b) if there is a surviving pension partner to whom clause (

a) does not apply, or if there is no surviving pension partner, the excess must be provided (

i) to the designated beneficiary, or (ii) if there is no designa ted beneficiary living, to the personal representative of the member’s estate in that person’s capacity as personal representative.

(7) If the plan text document of a pension plan contains a target benefit provision and a member of the plan who is eligible under

section 96 to elect a transfer under Division 8 of

Part 8 transfers an amount under

section 97(b), the lump sum payment to which the member is entitled under subsection (4) of this

section must be reduced in the prescribed manner. Deemed trust 58(1) A participating employer in a pension plan is deemed to hold the following in trust for members of the plan and for any other persons entitled to benefits under the plan in accordance with their respective interests under the plan: (

a) all contributions that are du e or owing to the plan by the participating employer; (

b) all amounts that have been deducted by the participating employer from members’ remuneration as contributions to

56 the plan and that have not yet been remitted as required under

section 56(1); (

c) all contributions to the pension plan that have been received by the participating employer with respect to members and that have not yet been remitted as required under

section 56(1).

(2) An administrator who is required to remit contributions under

section 56(2) is deemed to hold in trust for the members of the pension plan and for the other persons entitled to benefits under the plan an amount equal to those contributions that remain to be remitted. (3) Subsections (1) and (2) apply whether or not the contributions have been kept separate and apart from other money or property of the participating employer or the administrator. Refund of contributions to avoid revocation 59 Despite anything in this Act but subject to Division 4 of

Part 8, the administrator of a pension plan may return to a person a contribution made by the person if (

a) the Superintendent consents in writing to the return after receiving (

i) a written request from the administrator for the return, and (ii) all supporting information required by the Superintendent, and (

b) the return is necessary to avoid the revocation of the plan’s registration under the Income Tax Act (Canada). Deemed trust for unremitted contributions 60(1) In this section, “security interest” has the same meaning as in the Personal Property Security Act.

(2) Subject to subsection (3) and

section 61, money held by an employer in respect of a member or other person entitled to benefits under the plan subject to a trust under

section 58 is secured

57 by a security interest on the property and assets of the employer to a maximum of $5000 whether or not that property or those assets are subject to other security interests and is payable, without registration or other perfection of that security interest, in equal priority to claims or rights under

section 109 of the Employment Standards Code as applied with respect to the money so held.

(3) This

section and sections 58 and 61 apply notwithstanding any other Act but with the same force as sections 109 and 111 of the Employment Standards Code.

(4) The security interest under this

section may be enforced by the administrator, who may commence and conduct a proceeding to enforce it. Registration of claim for contributions 61(1) If the administrator of a pension plan makes a written claim on an employer on behalf of any person entitled to a benefit under the plan for payment of an amount held subject to a trust under

section 58, the administrator may file that claim in a land titles office.

(2) The registration of the claim creates a secured charge in favour of the administrator, on behalf of the person entitled to the benefit, for the amount payable under

section 58 set out in the claim, against all estates and interests in land owned or held by the employer.

(3) The secured charge has the same priority it would have if it were a mortgage registered against the estates and interests in the land.

(4) On payment of the amount that is the subject of the secured charge, the plan administrator shall have the registration under this

section discharged. Division 3 Investing Plan Assets Investment requirements 62(1) Investments, including loans and financial decisions, respecting a pension plan must be made (

a) in accordance w ith this Act and the regulations, and

58 (

b) in the best financial interests of plan members and other persons entitled to benefits under the plan.

(2) Pension plan assets must be invested in a manner that a reasonable and prudent person would adopt if investing the assets on behalf of a person to whom the investing person owed a fiduciary duty to make investments (

a) without undue risk of loss, and (

b) with a reasonable expect ation of a return on the investments commensurate with the risk, having regard to the plan’s liabilities.

(3) Pension plan assets must be held and invested (

a) in the name of the plan, or (

b) in the name of a custodian or trustee in accordance with a custodial agreement, trust agreement or Act, in which case the custodial agreement, trust agreement or Act must clearly indicate that the investments are held for the benefit of the plan. Interest, gains and losses on contributions and benefits 63 Interest, gains and losses, calculated in the prescribed manner, must be credited or debited to the following at the prescribed rates and prescribed times: (

a) all contributions to a pension plan, other than participating employer contributions required under a benefit formula provision; (

b) the commuted value of bene fits that are payable but not yet paid. Division 4 Use of Actuarial Excess and Surplus Transfer of actuarial excess or surplus 64(1) An administrator or a fundholder of a pension plan must not distribute any actuarial excess or surplus of the plan, other than actuarial excess or surplus in a solvency reserve account as defined in

section 54(1), unless, in a distribution of actuarial excess, the

59 conditions referred to in clauses (

a) to (

c) are met or, in a distribution of surplus, conditions referred to in clauses (

a) to (

d) are met: (

a) consent to the proposed distribution is obtained under subsections (3) and (4) or the plan text document of the plan provides for the distribution; (

b) the administrator complies with the prescribed conditions; (

c) the administrator recei ves written notice from the Superintendent consenting to the distribution; (

d) in the case of a distribution of surplus, all of the benefits to which members of the plan are entitled on the termination of the plan have been paid.

(2) If the plan text document of a pension plan provides for distribution of actuarial excess or surplus to members, the reference to members includes the pension partners and designated beneficiaries of deceased members if those pension partners and designated beneficiaries still have an entitlement to receive a benefit under the plan.

(3) If the plan text document of a pension plan does not provide for the distribution of actuarial excess or surplus or to whom it may be distributed, the administrator may, subject to and in accordance with the regulations, present to the members and to the persons, if any, prescribed for the purposes of this subsection a proposal (

a) to distribute actuarial excess or surplus, to the person or persons, and on the basis, set out in the proposal, and (

b) to seek the consent of the persons referred to in subsection (4) to the proposed distribution.

(4) If, after being presented with a proposal referred to in subsection (3), at least (a) 2/3 of the active members of the pension plan, and (b) 2/3 of the group of persons comprising (

i) deferred and retired members, and

60 (ii) the persons, if any, prescribed for the purposes of subsection (3), notify the administrator, in writing, that they consent to the proposal, the participating employer may apply to the Superintendent in writing for consent to the distribution of the actuarial excess or surplus. Use of actuarial excess 65(1) If an actuarial valuation report or cost certificate filed in relation to a pension plan reveals that the plan has actuarial excess, other than actuarial excess or surplus in a solvency reserve account as defined in

section 54(1), the actuarial excess may, subject to and in accordance with the regulations, be applied to do one or both of the following in relation to contribution funding requirements: (

a) to reduce or eliminate contributions of the participating employers, or, in the case of a jointly sponsored plan, to reduce or eliminate contributions of the participating employers and the active members, that would otherwise be required to comply with the funding requirements applicable to the plan; (

b) if the plan text document of the plan contains a benefit formula provision and a defined contribution provision, to reduce or eliminate contributions of the participating employers that are required in relation to the defined contribution provision, unless the plan documents specifically provide that those contributions may not be reduced or eliminated by the use of actuarial excess.

(2) If the Superintendent is of the opinion that it is appropriate to do so, the Superintendent may direct the administrator to cease applying actuarial excess to reduce or eliminate contributions.

(3) Nothing in this

section precludes actuarial excess from being (

a) left in the pension plan, (

b) used to increase benefits, or (

c) used or applied in any other way contemplated by the plan text document or under this Act.

Part 8 Benefits and Transfers Division 1 Pension Eligibility Date Age requirements of plan text document 66(1) The plan text document of a pension plan must provide for (

a) a specific age, or (

b) a date, determined with reference to a specific age, at which the active members or deferred members of the plan, and surviving pension partners, if

section 89(1)(

a) applies, are entitled to start receiving a pension under the plan without reduction or increase to the pension.

(2) The plan text document of a pension plan must require an active member or a deferred member and, if

section 89(1)(

a) applies, surviving pension partner, to start receiving his or her pension no later than the last date on which a person is allowed under the Income Tax Act (Canada) to start receiving a pension from a registered pension plan. Pension may start before pension eligibility date 67(1) A plan text document of a pension plan must allow a member to start receiving his or her pension on a reduced basis at any time within 10 years before he or she reaches the plan’s pension eligibility date.

(2) A pension that starts before the pension plan’s pension eligibility date may be reduced in comparison with what would have been payable had the pension started at the plan’s pension eligibility date, but only if the actuarial present value of the reduced pension is at least equal to the aggregate of (

a) the actuarial present value of the pension that would have been payable had the pension started at the plan’s pension eligibility date, and (

b) the actuarial present value of any other benefit to which the member would have been entitled had the member terminated active membership and elected to start to receive the pension at the plan’s pension eligibility date.

62 If employment continues after pension eligibility date 68(1) Subject to

section 75, the plan text document of a pension plan must provide that a member who has reached the plan’s pension eligibility date may, for so long as he or she remains in an employment covered by the plan, continue to accrue benefits under the plan in the same manner and to the same extent as he or she could have done in that employment before reaching that date.

(2) Without limiting subsection (1), the plan text document may provide one or more of the following in relation to a member referred to in subsection (1): (

a) that the member may, if he or she so elects in writing, cease accruing benefits and start receiving a pension; (

b) that the member may, if he or she so elects in writing, cease accruing benefits and delay receiving a pension until a later age, in which case the pension must be actuarially increased to reflect the delay; (

c) if and to the extent allowed by the Income Tax Act (Canada), that the member may, if he or she so elects in writing, start receiving a pension and continue to accrue benefits.

(3) A member referred to in subsection (1) must not select more than one of the options included in the plan text document under subsection (2). Division 2 Restrictions on Access to Benefits Evidence of entitlement to benefit 69(1) A person claiming to be entitled to receive a benefit under a pension plan has the onus of proving to the satisfaction of the administrator that the claimant is entitled to the benefit.

(2) The administrator may require the claimant to provide evidence to establish the claim, including evidence by way of affidavit, declaration or certificate. Locking in commuted value of benefits 70 Subject to Divisions 7 and 8 and sections 57 and 71, the commuted value of benefits that have been earned on and after the

63 initial legislation date must be applied towards the provision of a pension, and except for that purpose, (

a) a member must not withdraw, surrender or receive the commuted value of any or all of that portion of the commuted value of his or her benefits that relates to his or her membership in the pension plan on and after the initial legislation date, and (

b) a surviving pension partner entitled to a pension under

section 89 or 90 that relates to the deceased pension partner’s membership in the plan on and after the initial legislation date must not withdraw, surrender or receive the commuted value of any or all of those benefits. Exceptions to locking in commuted value of benefits 71(1) The plan text document of a pension plan must provide that a deferred member or, if the deferred member is deceased, the deferred member’s surviving pension partner, is entitled to receive payment of a lump sum amount equal to the total of the commuted values of the benefits to which the deferred member or surviving pension partner is entitled under the plan if that total does not exceed the prescribed amount.

(2) The contract in relation to a locked-in retirement account or retirement income arrangement must provide that the owner of the account or arrangement or, if the owner is deceased, the owner’s surviving pension partner, is, if the prescribed conditions are met, entitled to receive payment of a lump sum amount equal to the commuted value of the benefit to which the owner or surviving pension partner is entitled.

(3) The plan text document of a pension plan must provide the following: (

a) if a member of the plan, other than a retired member in receipt of benefits under a benefit formula provision, who has a current entitlement to receive a benefit under the plan, has an illness or a disability that is certified by a medical practitioner to be terminal or to likely shorten the member’s life considerably, that member may, subject to and in accordance with the regulations,

64 (

i) elect to convert all or part of the benefit on the prescribed basis to a series of payments for a fixed term to that member, or (ii) elect to withdraw as a lump sum an amount equal to the commuted value of the benefit or any lesser amount that the member may select; (

b) a person who is entitled under Division 8 to receive a benefit under the plan may, subject to and in accordance with the regulations, withdraw as a lump sum an amount equal to the commuted value of the benefit on providing to the administrator written evidence that the Canada Revenue Agency has confirmed the person’s status as a non-resident for the purposes of the Income Tax Act (Canada).

(4) If a benefit has been transferred to a locked-in retirement account or a retirement income arrangement, the contract for the locked-in retirement account or retirement income arrangement must provide the following: (

a) if a person who is the owner of the account or arrangement has an illness or a disability that is certified by a medical practitioner to be terminal or to likely shorten the person’s life considerably, the person may, subject to and in accordance with the regulations, withdraw all or part of the money held in the account or arrangement by way of a lump sum payment, or a series of payments for a fixed term, to that person; (

b) a person who is the owner of the account or arrangement, or his or her surviving pension partner, may, subject to and in accordance with the regulations, withdraw as a lump sum the money held in the account or arrangement on providing to the person who maintains the account or arrangement written evidence that the Canada Revenue Agency has confirmed the status of the owner or his or her surviving pension partner as a non-resident for the purposes of the Income Tax Act (Canada); (

c) if a person who is the owner of the account or arrangement is suffering from financial hardship, the person may, subject to and in accordance with the regulations, withdraw as a lump sum an amount, up to the prescribed amount, from the account or arrangement.

(5) For the purpose of transferring locked-in funds to a retirement income arrangement or for the purposes of providing life income type benefits from a pension plan pursuant to

section 77, and subject to prescribed conditions, (

a) a member of a pension plan may elect to unlock up to 50% of the commuted value of the benefit in a pension plan, or (

b) the owner of a locked-in retirement account may elect to unlock up to 50% of the account balance in the locked-in retirement account.

(6) If a person who is eligible to make an election under subsection (3), (4) or (5) has a pension partner, the person must not make that election unless the administrator or, in the case of a locked-in retirement account or retirement income arrangement, the person who maintains the account or arrangement, has received a statement from the pension partner in the prescribed form that (

a) states that the pension partner is aware of the pension partner’s entitlements under the pension plan, (

b) waives those entitlements, and (

c) was signed by the pension partner in the presence of a witness and outside the presence of the person eligible to make the election. No disposition or attachment of benefits and money 72(1) Subject to subsections (3) to (6), the following must not be assigned, charged, alienated or anticipated and are exempt from execution, seizure or attachment: (

a) benefits; (

b) all or any portion of the pension fund; (

c) money transferred under (i)

section 57(4)(b), (

c) or (

d) or 89(1)(a)(

i) or (3), (ii) Division 8, or (iii)

Part 9.

(2) A transaction purporting to assign, charge, alienate or anticipate benefits or other assets referred to in subsection (1) is void. (3) Subsection (1) does not apply in respect of the execution, seizure or attachment of a retirement savings vehicle within the meaning of and under

section 17.1 of the Maintenance Enforcement Act. (4) Subsections (1) and (2) do not apply (

a) subject to subsection (5), to (

i) additional voluntary contributions, or (ii) optional ancillary contributions, or (

b) to an agreement or matrimoni al property order, as defined in Division 4, providing for a transfer of entitlement between a member and a pension partner or former pension partner because of a breakdown of their relationship.

(5) Additional voluntary contributions and optional ancillary contributions are exempt from execution, seizure or attachment unless (

a) the additional voluntary contributions or optional ancillary contributions were made after, on or within 12 months before the date on which a debt came due and the execution, seizure or attachment is to enforce payment of that debt, (

b) the additional voluntary contributions or optional ancillary contributions have been or are being withdrawn from a pension plan, or (

c) the execution, seizure or attachment was initiated against the additional voluntary contributions or optional ancillary contributions before October 1, 2009.

(6) For the purposes of subsection (5)(b), (

a) if additional voluntary contributions or optional ancillary contributions are transferred by a person to any of that

67 person’s registered plans within the meaning of

section 92.1 of the Civil Enforcement Act, that transfer does not constitute a withdrawal of those additional voluntary contributions or optional ancillary contributions from a pension plan, and (

b) if execution, seizure or attachment is pursued against additional voluntary contributions or optional ancillary contributions being withdrawn from a pension plan by a member, those additional voluntary contributions or optional ancillary contributions are deemed, for the purposes of that execution, seizure or attachment and

Part 8 of the Civil Enforcement Act, to be a debt due to the member for or with respect to the member’s salary or wages.

(7) A transaction purporting to effect a withdrawal, surrender or commutation referred to in

section 70(

a) or (

b) is void.

(8) If this Act requires an amount to be withheld, deducted, paid or credited, an agreement or arrangement not to withhold, deduct, pay or credit that amount, made by the person on whom the requirement is imposed, is void. Income and asset testing 73 If a person is entitled under this Act to withdraw money from a pension plan, a locked-in retirement account or a retirement income arrangement, (

a) that entitlement is not to be considered when determining income or assets available to the person for the purpose of any Government program or service, and (

b) that person shall not be required to withdraw, or to exercise a specific option under this Act or the pension plan to withdraw, money or to commence a series of payments, in order to become eligible for any Government program or service. Restrictions on transfer of assets 74(1) Assets of a pension plan must not be transferred from the plan to another plan unless

68 (

a) the transfer is made under

section 57(4) or 89(1) or (3), under Division 8 or under

Part 9, (

b) the transfer is effected und er an agreement referred to in

section 35(6)(c), or (

c) the written consent of the Superintendent is obtained.

(2) Assets of a pension plan must not be transferred from one fundholder of the plan to another fundholder of the plan, other than by way of providing benefits under the plan, unless (

a) the insurance contract und er

section 50(2)(

a) or trust agreement under

section 50(2)(

b) of the fundholder who is receiving the transfer is filed and the plan and any relevant amendment providing for the transfer are registered, or (

b) the written consent of the Superintendent is obtained.

(3) Despite subsection (1), an administrator of a pension plan must not, without the consent of, or without being directed to do so by, the Superintendent, transfer assets out of the pension fund under

section 89(1) or (3), under Division 8 or under

Part 9 if the transfer would impair the solvency of the plan.

(4) The Superintendent may, in writing, consent to or direct a transfer referred to in subsection (3) on terms and conditions the Superintendent considers appropriate in the circumstances.

Division 3 Benefits May Be Affected Maximum years and amounts 75 A plan text document of a pension plan may, in relation to the pension that may be paid under the plan, set a maximum number of years of employment that may be taken into account in calculating the pension or set a maximum amount for the pension and, in either case, must provide that when an active member reaches that maximum, no further contributions are payable by the member.

Adjustments in pension for CPP Act, QPP Act and OAS Act 76(1) The plan text document of a pension plan may provide that a member may elect to have his or her pension payments increased for a prescribed period by an amount determined by reference to

69 any amounts payable under the CPP Act or the QPP Act or both, as the case may be, if (

a) the election is made on or before the member’s pension commencement date, and (

b) the commuted value of the pension payable after the increased benefits have ceased is not less than the prescribed amount.

(2) The amount of pension being paid under a pension plan must not be reduced as a result of any change in the amounts being paid under the CPP Act or the QPP Act.

(3) The plan text document of a pension plan must not provide that the pension that a person is entitled to receive from the plan will be reduced if the person receives payments under the OAS Act in respect of service on and after January 1, 1987.

(4) If the plan text document of a pension plan provides for the reduction of a pension because of a member’s entitlement to any payments under one or more of the CPP Act, the QPP Act and the OAS Act, the reduction must not exceed an amount determined by the prescribed formula. Flexibility for life income type benefits 77 Subject to the regulations, the plan text document of a pension plan may authorize payment of life income type benefits to be made in any manner that (

a) is authorized by the Income Tax Act (Canada), and (

b) is in accordance with the regulations. Division 4 Marriage Breakdown

Definitions 78 In this Division, (a) “agreement” means a written agreement that provides for the division and distribution of a benefit and that meets the requirements of

section 37 of the Matrimonial Property Act, and that is enforceable under

section 38 of that Act;

70 (b) “matrimonial property order” means a matrimonial property order within the meaning of the Matrimonial Property Act, or a similar order enforceable in Alberta of a court outside Alberta, that affects the division and distribution of a benefit; (c) “member pension partner” means, in relation to the pension plan in question, the pension partner who is or was the member in question, and “non-member pension partner” means the other pension partner; (d) “pension partner” means a pension partner, including a former pension partner, to whom this Division applies; (e) “share” means, with respect to a member pension partner or the non-member pension partner, that person’s share of the total pre-division benefit resulting from the division under this Division and that, in the case of the non-member pension partner, is to be distributed under this Division; (f) “total pre-division benefit” means the total benefit, or the value of that benefit, accrued to the member pension partner immediately before the division under this Division and on which that division is to be based pursuant to this Division.

Prevalence of this Division in relation to benefits 79(1) Despite the Matrimonial Property Act or any other rule of law or equity to the contrary, a matrimonial property order or an agreement shall not divide or distribute a benefit or any portion of a benefit except in a manner that complies with this Division.

(2) Nothing in subsection (1) prevents the Court from distributing, under the Matrimonial Property Act, property that is not a benefit in a manner that takes account of how a benefit is to be divided or distributed in compliance with this Division. Application of matrimonial property orders and agreements 80(1) This Division applies with respect to the division and distribution of benefits where, as between a member pension partner and the non-member pension partner, a matrimonial property order or agreement is filed with an administrator, and this Division applies despite any other provision of this Act, except as

71 specifically stated, and despite any other rule of law or equity to the contrary.

(2) This Division applies only with respect to a matrimonial property order made or agreement entered into (

a) on or after March 1, 2000, or (

b) before March 1, 2000 if there is filed with the administrator a written election by both pension partners to have this Division apply.

(3) For the purposes of this Division, a matrimonial property order or agreement is filed with the administrator if it or a certified copy of it is served on the administrator in a manner referred to in

section 156, with the onus of proving proper service being on the server.

(4) Subject to this Division, the entitlement of any person to a benefit is subject to entitlements arising under a matrimonial property order or agreement filed with the administrator. Division and distribution of benefits 81 Benefits must be divided between the member pension partner and the non-member pension partner, and the non-member pension partner’s share distributed, in accordance with this Division and the prescribed conditions, in the prescribed manner and, subject to the foregoing, in accordance with the applicable matrimonial property order or agreement.

Valuation of benefits 82(1) The value of the total pre-division benefit and the non-member pension partner’s share must be calculated in the prescribed manner.

(2) Where a benefit is to be paid from a pension plan, the division of a benefit between the pension partners must not reduce the member pension partner’s share of the total pre-division benefit by more than 50% of the actuarial present value of the benefit earned during the joint accrual period.

(3) With respect to a benefit described in subsection (2), the total pre-division benefit and the value of the non-member pension

72 partner’s share are to be based only on the prescribed proportion of the total period for which the benefit was accruing. (4) Subsection (2) does not apply with respect to additional voluntary contributions or optional ancillary contributions, and nothing in this Division prohibits the receipt by either pension partner of all or most of either or both kinds of contributions.

(5) Where a benefit is to be paid from a locked-in retirement account or a life income fund, the division of the pre-division benefit between the pension partner and the owner of the account must not reduce the owner’s share of the account balance by more than 50%.

(6) The aggregate of the actuarial present values of the shares of both pension partners must equal the actuarial present value of the total pre-division benefit. Locking-in of non-member pension partner’s share 83(1) A provision of a pension plan that prohibits terminating members from transferring their pension entitlements if they are within 10 years of pensionable age does not apply with respect to a non-member pension partner’s share.

(2) Sections 69 and 70, as they apply with respect to a member pension partner, also apply with respect to the non-member pension partner’s share.

(3) Subject to this section, the non-member pension partner’s share may be transferred under the prescribed conditions. Bar against further claims 84(1) If the full amount of the non-member pension partner’s share has been distributed pursuant to this Division, (

a) that pension partner has no further entitlement to any benefit or any other right under the plan, and (

b) the administrator and the plan have no further obligation to that pension partner and have no liability to either pension partner or any other person by reason only of the fact that the matrimonial property order or agreement was complied with.

(2) A matrimonial property order or agreement that provides that (

a) a pension partner has no share of benefits, or (

b) a pension partner’s share is satisfied by a means other than by dividing benefits under this Division is to be treated for the purposes of subsection (1) as if the matrimonial property order or agreement provides that the benefits are subject to division under this Division, unless the matrimonial property order or agreement provides otherwise.

(3) In this section, “benefit” includes a benefit that has been transferred to a locked-in retirement account or a retirement income arrangement. Adjustment of member’s share 85 After the division, the administrator shall adjust the member pension partner’s share in the prescribed manner. Application to Court for clarification, etc. 86(1) If, on the filing of a matrimonial property order or agreement with the administrator, the administrator is unable to comply with the matrimonial property order or agreement because (

a) it is incomplete, or (

b) it does not comply with this Division or the plan or there is doubt as to what exactly the administrator must do to comply with it, the administrator may apply to the Court to redress the situation arising from that inability to comply.

(2) An application to the Court under subsection (1) must be made on 7 days’ notice or on any shorter period that the Court allows.

(3) The costs of an application under subsection (1) are to be borne by both or either of the pension partners, as determined by the Court, and to the extent that any such costs are paid by the administrator, the administrator has a right of action in debt against the pension partner or pension partners for the costs, in accordance with the Court’s decision on the costs.

74 Fees 87 The administrator may charge a fee for the services provided under this Division in an amount not exceeding the prescribed amount. Division 5 Death Benefits Definition 88 In this Division, “joint and survivor pension” means a pension payable during the lives of the member and the member’s pension partner and, after the death of one of them, to the survivor for life. Survivor’s benefits if member dies before pension commencement 89(1) If a member dies before reaching his or her pension commencement date, (

a) subject to clause (b), if there is a surviving pension partner, the following amounts must be provided as follows: (

i) the pension to which the member was entitled must be provided to the surviving pension partner as a pension, and subject to subsection (3), the surviving pension partner may transfer all of the commuted value of the pension by way of a transfer that complies with the requirements of

section 99; (ii) any additional voluntary contributions and optional ancillary contributions made by the member, and any excess contributions to which the member was entitled, must be provided to the surviving pension partner, and the surviving pension partner has, in relation to those benefits, the same transfer rights and obligations, if any, that would have applied to the member had the member survived, (

b) if there is a surviving pension partner and that pension partner has provided to the administrator a statement in the prescribed form that waives the entitlement referred to in clause (a), the total of the commuted value of the pension referred to in clause (a)(

i) and the value of the

75 benefits referred to in clause (a)(ii) is payable by way of a lump sum payment (

i) to the designated beneficiary, or (ii) if there is no living de signated beneficiary, to the personal representative of the member’s estate in his or her capacity as personal representative, but in no case is the surviving pension partner entitled to receive any benefit as designated beneficiary under subclause (

i) or from the estate under subclause (ii), or (

c) if there is no surviving pension partner, the total of the commuted value of the pension referred to in clause (a)(

i) and the value of the benefits referred to in clause (a)(ii) is payable by way of a lump sum payment (

i) to the designated beneficiary, or (ii) if there is no living de signated beneficiary, to the personal representative of the member’s estate in his or her capacity as personal representative.

(2) If optional ancillary contributions were made by a member and the member dies before reaching his or her pension commencement date and leaves a surviving pension partner, the amount of those contributions may, at the option of the pension partner, be applied, in the manner specified by the plan text document of the pension plan, to the optional ancillary benefits selected by the pension partner to increase the benefits to which the pension partner is entitled under the plan up to the maximum amount allowed by the Income Tax Act (Canada) or the regulations under that Act.

(3) The plan text document of a pension plan may provide that if a member dies before reaching his or her pension commencement date, a surviving pension partner of the member must make the applicable transfer referred to in Division 8.

(4) If a pension partner who is entitled to a benefit under subsection (1)(

a) dies before his or her pension commencement date, the total of the commuted value of the pension referred to in subsection (1)(a)(

i) and the value of the benefits referred to in subsection (1)(a)(ii) is payable by way of a lump sum payment to (

a) the pension partner’s designated beneficiary, or

76 (

b) if there is no living designated beneficiary, to the personal representative of the pension partner’s estate in his or her capacity as personal representative. Survivor’s benefits if retired member dies after pension commencement 90(1) A plan text document that contains a benefit formula provision must provide that the pension payable to a retired member who had a pension partner at the member’s pension commencement date is a joint and survivor pension.

(2) A joint and survivor pension may, by reason of the death of the member or pension partner referred to in subsection (1), be reduced to an amount that is not less than 60% of the amount of the pensi

Document details

Collection	Alberta — Bills
Citation	L28 S1 11480
Type	bill
Volume / chapter	L28 S1 11480
Language	en
Format	json
Source	PROVINCIAL
Identifier	226011d6fb8096a688408b1157f5496188d809f6

Source file is stored in the law ingest library (json).