Third

Session, 48th General Assembly

Elizabeth II, 2018

BILL 5

AN ACT TO amend the Pension

Benefits Act, 1997

Received and Read the First Time .................................................................................................

Second Reading .................................................................................................................................

Committee ..........................................................................................................................................

Third Reading .....................................................................................................................................

Royal Assent ......................................................................................................................................

HONOURABLE SHERRY GAMBIN-WALSH

Minister

of Service Newfoundland and Labrador

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Pension Benefits Act, 1997 to provide individual

pension plans with a permanent exemption from the requirement to fully fund

pension benefits on the termination of a pension plan.

A BILL

AN ACT TO AMEND THE PENSION BENEFITS ACT,

Analysis

S.2 Amdt.

Definitions

S.61 Amdt.

Termination payments

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL1996 cP-4.01

as amended

(1) Section 2 of the Pension Benefits Act, 1997 is amended by adding immediately after

paragraph (

p) the following:

(p.1) "individual pension plan" means a

defined benefit plan with 2 or fewer members or former members where at least

(

i) one of the members is a specified individual, or

(ii) one of the former members was a specified

individual in the year he or she ceased membership in the pension plan;

(2) Section 2 of the Act is amended by adding

immediately after paragraph (ee) the following:

(ee.1) "specified individual" has the same meaning

as in the Income Tax Regulations ( Canada );

Section 61 of the Act is amended by adding

immediately after subsection (2) the following:

(3) Subsection (2) shall not apply to an

individual pension plan.

(4) Notwithstanding subsection (3), subsection

(2) shall apply to an individual pension plan in effect on the date subsection

(3) comes into force unless the following persons consent to the exemption in

writing and provide a certificate of independent legal advice satisfactory to

the superintendent:

(

a) the members and former members of the

individual pension plan; and

(

b) the principal beneficiaries of the members and

former members of the individual pension plan.

Commencement

3. This Act comes into force on December 31, 2018.

Queen's Printer