First

Session, 46th General Assembly

Elizabeth II, 2008

BILL 21

AN ACT TO AMEND THE

PENSION BENEFITS ACT, 1997

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

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

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

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

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

HONOURABLE

KEVIN O'BRIEN

Minister of Government Services

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTE

This Bill would amend the Pension Benefits Act, 1997 to require a

pension plan sponsor to fully fund a solvency deficiency on the wind-up of the

plan.

A BILL

AN ACT TO AMEND THE PENSION

BENEFITS ACT, 1997

Analysis

S.61 Amdt.

Termination payments

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL1996 cP-4.01

as amended

Section 61 of the Pension Benefits Act, 1997 is amended by renumbering it as subsection

61(1) and by adding immediately after that subsection the following:

(2) Where, on the termination, after April 1, 2008 , of a pension plan, other than a multi-employer pension plan, the

assets in the pension fund are less than the value of the benefits provided under

the plan, the employer shall, as prescribed by the regulations, make the

payments into the pension fund, in addition to the payments required under

subsection (1), that are necessary to fund the benefits provided under the

plan.

Earl G. Tucker, Queen's Printer