British Columbia Bill 95 (Government) — 36th Parliament, 3rd Session — Previous Version 3
36-3 Gov Bill 95-3
British Columbia — Bills
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1998/99 Legislative Session: 3rd Session, 36th Parliament
THIRD READING
The following electronic version is for informational purposes only.
The printed version remains the official version.
Certified correct as passed Third Reading on the 15th day of July, 1999
E. George MacMinn, Q.C., Law Clerk
HONOURABLE JOY K. MacPHAIL
MINISTER OF FINANCE AND CORPORATE RELATIONS
BILL 95 – 1999
PUBLIC SECTOR PENSION PLANS ACT
Contents
Section
Part 1 – Introductory Provisions
Definitions and
interpretation
Purposes of the Act
Application of other Acts
Part 2 – British Columbia Pension Corporation
Definitions
British Columbia Pension Corporation established
Capital of the pension corporation
Powers, functions and duties of the pension corporation
Pension management board
Powers, functions and duties of the pension management board
Responsibilities of chief executive officer
Officers and employees of the pension corporation
Chief executive officer's power to delegate
Operating costs and capital expenditures of the pension corporation
Indemnification
Part 3 – British Columbia Investment Management Corporation
Definitions
British Columbia Investment Management Corporation established
Capital of the investment management corporation
Powers, functions and duties of the investment management corporation
Investment management board
Powers, functions and duties of the investment management board
Responsibilities of the chief investment officer
Officers and employees of the investment management corporation
Chief investment officer's power to delegate
Operating costs and capital expenditures of the investment management corporation
Indemnification
Part 4 – Regulations and Transitional
Division 1 – Regulations
Regulations
Division 2 – Transitional
Transitional – pension corporation
Transitional – investment management corporation
Transitional – regulations
Schedule A – College Pension Plan
Schedule B – Municipal Pension Plan
Schedule C – Public Service Pension Plan
Schedule D – Teachers' Pension Plan
30-112
Consequential Amendments and Repeals
113-122
Amendments to this Act
Validation
Repeal
Commencement
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the
Province of British Columbia, enacts as follows:
Part 1 – Introductory Provisions
Definitions and
interpretation
(1) In this Act:
"college board" means the College Pension Board
of Trustees established under
Schedule A;
"college plan" means the College Pension Plan
continued under
Schedule A;
"investment management board" means the board of
directors of the investment management corporation;
"investment management corporation" means the
British Columbia Investment Management Corporation established under
section 16;
"municipal board" means the Municipal Pension
Board established under
Schedule B;
"municipal plan" means the Municipal Pension Plan
continued under
Schedule B;
"pension board" means the college board,
municipal board, public service board or teachers' board, or all of them as the context
requires;
"pension corporation" means the British Columbia
Pension Corporation established under
section 5;
"pension fund" means the money and securities of
the college plan, municipal plan, public service plan or teachers' plan, or all of them as
the context requires;
"pension management board" means the board of
directors of the pension corporation;
"pension plan" means the college plan, municipal
plan, public service plan or teachers' plan, or all of them as the context requires;
"plan member" means a person who
(
a) is making contributions to the pension fund,
(
b) has previously made contributions to the pension fund, which
contributions were left on deposit, and is not receiving benefits from the pension fund,
(
c) has previously made contributions to the pension fund and is
receiving benefits from the pension fund;
"public service board" means the Public Service
Pension Advisory Board established under
Schedule C;
"public service plan" means the Public Service
Pension Plan continued under
Schedule C;
"teachers' board" means the Teachers' Pension
Board established under
Schedule D;
"teachers' plan" means the Teachers' Pension Plan
continued under
Schedule D.
(2) Despite subsection (1), a definition in this
section does not
apply to a
Schedule to this Act unless specifically provided for in the Schedule.
Purposes of the Act
2 The purposes of this Act are as follows:
(
a) to establish an agency which must provide pension plan
administration services to the pension boards;
(
b) to establish an agency which may provide investment management
services to the pension boards;
(
c) to provide pension plan governance and risk and reward sharing
alternatives for the management of the pension plans and pension funds;
(
d) to provide benefits to eligible plan members under the pension
plans.
Application of other Acts
3 The pension plans, and any supplemental benefit
arrangements under those pension plans, are subject to the applicable requirements of
(
a) the Income Tax Act (Canada),
(
b) the Pension Benefits Standards Act,
(
c) the Family Relations Act, and
(
d) any other enactment applicable to the pension plans, the
pension funds and the benefits payable under the pension plans.
Part 2 – British Columbia Pension Corporation
Definitions
4 In this Part:
"chief executive officer" means the person
appointed under
section 9 (1) (
a) as chief executive officer of the pension corporation;
"other clients" means British Columbia public
sector pension plan clients of the pension corporation other than the pension boards.
British Columbia Pension Corporation established
(1) A corporation to be known as the British Columbia
Pension Corporation is established consisting of the pension management board appointed
under
section 8.
(2) The pension corporation has the power and capacity of a
natural person of full capacity.
(3) The fiscal year end of the pension corporation is March 31.
(4) The pension corporation is an agent of the government.
(5) The pension corporation, as an agent of the government, is not
liable for taxation except as the government is liable for taxation.
(6) The pension corporation may, with the approval of the pension
management board, borrow or raise money for its purposes in the amounts and for the
periods determined by the pension corporation.
(7) The Company Act and the Company Clauses Act do
not apply to the pension corporation, but the Lieutenant Governor in Council may, on the
recommendation of the pension management board, direct that certain provisions of the Company
Act apply to the pension corporation.
Capital of the pension corporation
(1) The capital of the pension corporation is one share
with a par value of $10.
(2) The share in the pension corporation must be issued to and
registered in the name of the Minister of Finance and Corporate Relations and must be held
by that minister on behalf of the government.
Powers, functions and duties of the pension
corporation
(1) The purpose of the pension corporation is to provide
plan administration services
(
a) to the pension boards responsible for the pension plans, and
(
b) to any other clients that retain the services of the pension
corporation.
(2) Plan administration services are those administrative
services, excluding funds management services, required to deliver pension benefits to
plan members, and includes all of the following:
(
a) enrolling employers and plan members;
(
b) collecting and recording contributions and other information
received from employers and plan members necessary to properly administer the pension
plans;
(
c) auditing the information collected under paragraph (b);
(
d) communicating information about the pension plan provisions to
employers and plan members;
(
e) establishing and maintaining plan member records and accounts;
(
f) calculating and processing pension benefits and other related
benefits;
(
g) managing, in coordination with the investment management
corporation, the cash flow of the pension funds in order to maximize investment returns;
(
h) paying, and recording the payment of, pension benefits and
other related benefits;
(
i) filing documentation with the appropriate authorities and
performing other regulatory duties as may be required under other enactments;
(
j) providing secretariat and other services required by the
pension boards;
(
k) providing additional services to a pension plan if the pension
management board and the pension board agree on the budget required for the additional
services.
(3) The pension corporation must discharge the responsibilities of
the pension boards under the Income Tax Act (Canada) for administration of the
pension plans.
(4) The pension corporation may enter into agreements
(
a) with a person or body to provide benefits to plan members or
to provide other services in respect of the pension plans, or
(
b) to administer plans for other clients.
Pension management board
(1) The pension management board must have at least 8
directors as follows:
(a) 2 directors appointed by the college board from among its
members, one to be nominated by the plan employer partners and one to be nominated by the
plan member partners, as those terms are defined in
section 1 of
Schedule A;
(b) 2 directors appointed, on the recommendation of the municipal
board, by the trustee of the pension fund from among the members of the municipal board,
one to be nominated by the plan sponsor representatives and one to be nominated by the
plan member representatives, as those terms are used in
section 3 (1) (
a) and (
b) of
Schedule B;
(c) 2 directors appointed, on the recommendation of the public
service board, by the trustee of the pension fund from among the members of the public
service board, one to be nominated by the plan sponsor representatives and one to be
nominated by the plan member representatives, as those terms are used in
section 3 (1) (
a) and (
b) of
Schedule C;
(d) 2 directors appointed, on the recommendation of the teachers'
board, by the trustee of the pension fund from among the members of the teachers' board,
one to be nominated by the plan sponsor representatives and one to be nominated by the
plan member representatives, as those terms are used in
section 3 (1) (
a) and (
b) of
Schedule D.
(2) Each director appointed under subsection (1) has one vote.
(3) The directors must
(
a) designate one of the directors appointed under subsection
(1) as chair of the board, or
(
b) appoint a person, not referred to in subsection (1), as a
director and designate that person as chair of the board.
(4) The pension management board must determine whether
(
a) the chair designated under subsection (3) (
a) is entitled to a
second or casting vote, or
(
b) the chair designated under subsection (3) (
b) has a vote and,
if so, whether the chair is entitled to a second or casting vote.
(5) An appointment to the board under subsection (1) or (3) (
b) must be made
(
a) for a term not exceeding 3 years, and
(
b) so that no more than 4 appointments expire in any calendar
year.
(6) An appointment under subsection (1) or (3) (
b) may be renewed.
(7) Despite subsection (1) or (3) (b), an appointment to the board
may be rescinded by the party that made the appointment.
(8) If a director ceases for any reason to be a director of the
pension management board before the end of the term for which he or she was appointed,
(
a) the board must provide notice of the vacancy to the party that
appointed that director, and
(
b) that party must promptly appoint, in accordance with
subsection (1) or (3) (b), a replacement director for the remainder of the term of that
director.
(9) Subject to subsection (10), a quorum of the pension management
board consists of all of the directors of the board, and all decisions of the board must
be unanimous.
(10) The pension management board may, by the unanimous agreement
of the board, change a requirement of subsection (9).
(11) No act or proceeding of the pension management board is
invalid merely because there are in office fewer than the number of directors required
under this section.
(12) The pension management board may pay
(
a) to a director or a person appointed to a committee of the
board an allowance for reasonable travel and other expenses necessarily incurred in
carrying out the business of the board,
(
b) to a director or a person appointed to a committee of the
board, if the director or person is not receiving remuneration from any other source for
acting as a director or on a committee, remuneration that has been set by the board and is
consistent with Treasury Board guidelines, and
(
c) to an organization, if the organization is the source of
remuneration paid to a director or person appointed to a committee of the board,
remuneration for the services of the director or person at the rate set by the board under
paragraph (b).
Powers, functions and duties of the pension
management board
(1) The pension management board must do all of the
following:
(
a) select and appoint a chief executive officer to hold office
during pleasure, and determine the salary to be paid to the chief executive officer;
(
b) review and monitor the performance of the chief executive
officer;
(
c) select and appoint for the pension corporation an auditor who
is qualified to be an auditor of a reporting company under the Company Act;
(
d) approve, in whole or in part and with or without
modifications,
(
i) policies respecting the proper discharge of the pension
corporation's mandate,
(ii) a business plan for the pension corporation,
(iii) the pension corporation's budget, including the budget for
capital expenditures and staffing, and
(iv) conflict of interest guidelines;
(
e) oversee the operations of the pension corporation;
(
f) act in the best interests of the pension corporation.
(2) The pension management board must, through the pension
corporation and to the extent possible under the budget approved for the pension
corporation, do all of the following:
(
a) provide proper reporting and accountability, in a timely
manner, to the pension boards and the trustees of the pension funds administered by the
pension corporation;
(
b) provide administrative services in an efficient, effective and
timely manner;
(
c) have in place an equitable fee system based on the user pay
principle;
(
d) provide for its own financial administration by
(
i) establishing an accounting system which ensures that there is
proper reporting and accountability to the pension boards in a timely manner,
(ii) permitting the Minister of Finance and Corporate Relations to
direct the Comptroller General to examine the financial and accounting operations of the
pension corporation and report back to the pension management board, Treasury Board, the
pension boards or other clients that retain the services of the pension corporation,
(iii) having annual financial statements of the pension
corporation prepared in accordance with generally accepted accounting principles,
(iv) having an audit performed annually on the financial
statements referred to in subparagraph (iii), and
(
v) providing to the Minister of Finance and Corporate Relations
an annual business plan and an annual report on the pension corporation, including the
audited financial statements.
(3) The pension management board may do any of the following:
(
a) delegate to the chief executive officer the exercise or
performance of any power or duty conferred or imposed on the board under subsection (2);
(
b) pass resolutions it considers necessary or advisable to manage
and conduct the affairs of the pension corporation and to exercise the board's powers and
perform its duties;
(
c) establish committees of the board, and may determine the
composition, duties, responsibilities, limitations and operating procedures of those
committees;
(
d) appoint persons other than directors of the board to a
committee referred to in paragraph (c), and may set the term of appointment that applies
to those committee members.
Responsibilities of chief executive officer
(1) The chief executive officer is responsible for
carrying out the day to day duties of the pension corporation respecting the
administration of the pension plans.
(2) The chief executive officer must report
(
a) to the pension management board with respect to the operations
of the pension corporation, and
(
b) to the pension boards and the trustees of the pension funds
with respect to the administration of the pension plans.
(3) The chief executive officer must do all of the following:
(
a) hire and dismiss the officers and employees necessary to carry
on the business and operations of the pension corporation;
(
b) supervise the day to day operations of the pension
corporation;
(
c) prepare a business plan and budget for approval by the pension
management board;
(
d) attend at meetings of the pension management board and receive
a copy of all information provided to the board;
(
e) establish policies and procedures to meet the operational
objectives of the pension corporation;
(
f) develop a business continuation plan;
(
g) keep all the records, books and accounts of the pension
corporation;
(
h) file documentation with the appropriate authorities and
perform other regulatory duties as may be required under the Income Tax Act (Canada), the
Pension Benefits Standards Act and any other applicable enactments;
(
i) address any other matter arising out of the management of the
pension corporation that is necessary to properly carry out the provisions of this Part;
(
j) exercise or perform any power or duty delegated to the chief
executive officer by the pension management board under
section 9 (3) (a).
(4) Subsection (3) (
d) does not apply to the chief executive
officer respecting matters referred to in
section 9 (1) (
a) and (
b) or respecting matters
in which there would be a conflict of interest.
(5) A benefit under a pension plan must not be granted to a person
until the chief executive officer, after inquiry, determines all of the following:
(
a) that the person is within the scope of the pension plan;
(
b) that the person is entitled to receive the benefit and the
basis for receiving that benefit;
(
c) the amount of the benefit;
(
d) if, in the opinion of the chief executive officer, the person
is unfit to manage his or her own affairs, the allocation of all or part of the benefit
payable to that person;
(
e) the contributions made and the maximum benefit paid under the
registered pension plan provisions of the Income Tax Act (Canada);
(
f) any other matter related to the administration of the pension
plan.
(6) For the purposes of subsection (5), the chief executive
officer must prepare and keep on file, in the office of the pension corporation, a record
of the grounds on which the findings in each case are based, and the record must be open
to inspection by the person who is affected by those findings.
(7) The chief executive officer, in carrying out his or her duties
under subsection (5), may rely on information or recommendations provided by the officers
and employees of the pension corporation.
Officers and employees of the pension
corporation
(1) Subject to subsection (2), the Public Service Act
and the Public Service Labour Relations Act apply to the pension corporation and to
the officers and employees of the pension corporation.
(2) The Public Service Labour Relations Act and Parts 3 and
4 of the Public Service Act do not apply to the chief executive officer.
(3) The Pension (Public Service) Act and the Public
Service Benefit Plan Act apply to the pension corporation and to the officers and
employees of the pension corporation.
(4) In applying
section 22 of the Public Service Act under
subsection (1) of this section, the references to the commissioner and a deputy minister
are to be read as references to the chief executive officer.
Chief executive officer's power to delegate
the chief executive officer considers advisable, delegate to any person or class of
persons any of the chief executive officer's powers, functions or duties.
Operating costs and capital expenditures of the
pension corporation
(1) The pension corporation must recover its operating
costs and capital expenditures from one or more of the following:
(
a) amounts charged to the pension plans for operating costs and
capital expenditures necessarily incurred by the pension corporation on behalf of the
pension plans it administers;
(
b) amounts authorized under other enactments for services
provided by the pension corporation;
(
c) amounts charged to persons, organizations and other clients
for services provided by the pension corporation;
(
d) income accruing from investments made by the pension
corporation on its own behalf.
(2) The pension corporation may, in advance, submit a requisition
quarterly to the pension boards respecting the pension plans it administers for the
amounts required to cover the anticipated operating costs and capital expenditures
necessarily incurred by the pension corporation on behalf of those pension plans.
(3) The pension plans must pay to the pension corporation, in
quarterly installments from the pension funds, the amounts requisitioned under subsection
(2), subject to the limits within the pension corporation's budget as approved by the
respective pension boards.
(4) The operating costs and capital expenditures of the pension
corporation attributable to the pension plans it administers, as determined and certified
by the chief executive officer, must
(
a) be paid out of the money requisitioned under subsection (2),
and
(
b) to the extent to which the operating costs and capital
expenditures paid out
(
i) are less than the amount requisitioned, be reimbursed to the
pension funds, or
(ii) are greater than the amount requisitioned, be paid from the
pension funds.
(5) Capital expenditures of the pension corporation may be paid
from amounts borrowed by the pension corporation.
Indemnification
(1) Despite
section 75 of the Financial
Administration Act, the pension corporation may indemnify a person who is a director
of the pension management board, an officer or employee of the pension corporation or a
person appointed to a committee of the board under
section 9 (3) (d), or a former
director, officer, employee or committee member, against all costs, charges and expenses
actually and reasonably incurred by the person, including an amount paid to settle an
action or satisfy a judgment in a civil, criminal or administrative action or proceeding
to which the person is made a party because of being or having been a director, officer,
employee or committee member, and including an action brought by the pension corporation,
(
a) the director, officer, employee or committee member acted in
good faith, and
(
b) in the case of a criminal action or proceeding, the director,
officer, employee or committee member had reasonable grounds for believing that his or her
conduct was lawful.
(2) The pension management board may purchase and maintain, for
the benefit of the pension corporation or a director, officer, employee or committee
member referred to in subsection (1), or any of them, insurance against liability incurred
by the pension corporation or by the director, officer, employee or committee member.
Part 3 – British Columbia
Investment Management Corporation
Definitions
15 In this Part:
"chief investment officer" means the person
appointed under
section 20 (1) (
a) as chief investment officer of the investment
management corporation;
"funds" means money and securities placed with
the investment management corporation under the authority of
section 18 (3);
"other clients" means persons, other than the
pension boards, with authority under
section 18 (3) to make investments.
British Columbia Investment Management
Corporation established
(1) A corporation, to be known as the British Columbia
Investment Management Corporation, is established and incorporated as a trust company
authorized to carry on trust business and investment management services as provided in
this Part.
(2) The corporation referred to in subsection (1) consists of the
investment management board appointed under
section 19 (1) or (3).
(3) The investment management corporation has the power and
capacity of a natural person of full capacity.
(4) The fiscal year end of the investment management corporation
is March 31.
(5) The investment management corporation is an agent of the
government.
(6) The investment management corporation, as an agent of the
government, is not liable for taxation except as the government is liable for taxation.
(7) The Company Act, the Company Clauses Act and,
despite
section 11 of the Financial Institutions Act, the Financial Institutions
Act do not apply to the investment management corporation, but the Lieutenant Governor
in Council may direct that certain provisions of the Company Act and the Financial
Institutions Act apply to the investment management corporation.
(8) For the purposes of the Securities Act and its
regulations, the investment management corporation must be treated in the same manner as
the government is treated under that Act and its regulations.
Capital of the investment management corporation
(1) The capital of the investment management corporation
is one share with a par value of $10.
(2) The share in the investment management corporation must be
issued to and registered in the name of the Minister of Finance and Corporate Relations
and must be held by that minister on behalf of the government.
Powers, functions and duties of the investment
management corporation
(1) In this section, "designated
institution" , "government body" , "public money" ,
"special fund" and "trust fund" have the same meaning as
in the Financial Administration Act.
(2) The purpose of the investment management corporation is to
provide funds management services, including the making of investments and loans, for
funds placed with the investment management corporation.
(3) Despite any other enactment, including the Financial
Administration Act, a person who has the authority to invest
(
a) money or securities of a trust fund, special fund or other
fund,
(
b) money or securities of a government body or designated
institution, or
(
c) other public money or securities
may, with the agreement of the investment management board, place
the money or securities with the investment management corporation as agent of the person,
for investment.
(4) In addition to the powers, functions and duties of the
investment management corporation as provided in this Part, the investment management
corporation has the same powers, functions and duties in the provision of funds management
services for funds placed with it under subsection (3) as the Minister of Finance and
Corporate Relations would have if the funds had been placed with that minister under
Part
5 of the Financial Administration Act as it read on April 1, 1999.
(5) The investment management corporation may provide additional
services to a pension plan if the investment management board and the pension board agree
on the budget required for the additional services.
Investment management board
(1) The first investment management board must have 7
directors as follows:
(
a) one director appointed, on the recommendation of the College
Pension Advisory Board continued under the Pension (College) Act, by the trustee of
the College Pension Fund from among the members of the College Pension Advisory Board;
(
b) one director appointed, on the recommendation of the Municipal
Pension Board continued under the Pension (Municipal) Act, by the trustee of the
Municipal Pension Fund from among the members of the Municipal Pension Board;
(
c) one director appointed, on the recommendation of the Public
Service Pension Advisory Board continued under the Pension (Public Service) Act, by
the chair of the Public Service Pension Advisory Board from among the members of the
Public Service Pension Advisory Board;
(
d) one director appointed, on the recommendation of the Teachers'
Pension Board continued under the Pension (Teachers) Act, by the trustee of the
Teachers' Pension Fund from among the members of the Teachers' Pension Board;
(e) 2 directors, representative of clients of the investment
management corporation, other than those referred to in paragraphs (
a) to (d), appointed
by the Minister of Finance and Corporate Relations;
(
f) one director who is the Deputy Minister of Finance and
Corporate Relations.
(2) Subsection (1) and this subsection are repealed on the coming
into force of subsection (3).
(3) On the coming into force of this subsection, the investment
management board must have 7 directors as follows:
(
a) one director appointed by the college board from among its
members;
(
b) one director appointed, on the recommendation of the municipal
board, by the trustee of the pension fund from among the members of the municipal board;
(
c) one director appointed, on the recommendation of the public
service board, by the trustee of the pension fund from among the members of the public
service board;
(
d) one director appointed, on the recommendation of the teachers'
board, by the trustee of the pension fund from among the members of the teachers' board;
(e) 2 directors, representative of clients of the investment
management corporation, other than those referred to in paragraphs (
a) to (d), appointed
by the Minister of Finance and Corporate Relations;
(
f) one director who is the Deputy Minister of Finance and
Corporate Relations.
(4) The Deputy Minister of Finance and Corporate Relations is
designated as chair of the investment management board.
(5) Each director appointed under subsection (1) or (3) has one
vote on the board.
(6) An appointment to the investment management board under
subsection (3) (
a) to (
e) must be made
(
a) for a term not exceeding 3 years, and
(
b) so that no more than 3 appointments expire in any calendar
year.
(7) An appointment under subsection (3) (
a) to (
e) may be renewed.
(8) Despite subsection (1) (
a) to (
e) or (3) (
a) to (e), an
appointment to the investment management board may be rescinded by the party that made the
appointment.
(9) If a director ceases for any reason to be a director of the
investment management board before the end of the term for which he or she was appointed,
(
a) the board must provide notice of the vacancy to the party that
appointed that director, and
(
b) that party must promptly appoint, in accordance with
subsection (1) or (3), a replacement director for the remainder of the term of that
director.
(10) Subject to subsection (11), a quorum of the investment
management board consists of all of the directors of the board, and all decisions of the
board must be unanimous.
(11) The investment management board may, by the unanimous
agreement of the board, change a requirement of subsection (10).
(12) No act or proceeding of the investment management board is
invalid merely because there are in office fewer than the number of directors required
under this section.
(13) The investment management board may pay
(
a) to a director or a person appointed to a committee of the
board an allowance for reasonable travel and other expenses necessarily incurred in
carrying out the business of the board,
(
b) to a director or a person appointed to a committee of the
board, if the director or person is not receiving remuneration from any other source for
acting as a director or on a committee, remuneration that has been set by the board and is
consistent with Treasury Board guidelines, and
(
c) to an organization, if the organization is the source of
remuneration paid to a director or person appointed to a committee of the board,
remuneration for the services of the director or person at the rate set by the board under
paragraph (b).
Powers, functions and duties of the investment
management board
(1) The investment management board must do all of the
following:
(
a) select and appoint a chief investment officer to hold office
during pleasure, and determine the salary to be paid to the chief investment officer;
(
b) review and monitor the performance of the chief investment
officer;
(
c) select and appoint for the investment management corporation
an auditor who is qualified to be an auditor of a reporting company under the Company
Act;
(
d) approve, in whole or in part and with or without
modifications,
(
i) policies respecting the proper discharge of the investment
management corporation's mandate,
(ii) a business plan for the investment management corporation,
(iii) the investment management corporation's budget, including
the budget for capital expenditures and staffing,
(iv) policies respecting pooled funds, and
(
v) conflict of interest guidelines;
(
e) establish an employee classification system and compensation
scale, including performance bonuses;
(
f) oversee the operations of the investment management
corporation;
(
g) act in the best interests of the investment management
corporation.
(2) The investment management board must, through the investment
management corporation and to the extent possible under the budget approved for the
investment management corporation, do all of the following:
(
a) provide proper reporting and accountability, in a timely
manner, to the pension boards and the trustees and other persons responsible for the funds
managed by the investment management corporation;
(
b) comply with recognized industry standards;
(
c) provide investment management services in an efficient,
effective and timely manner;
(
d) have in place an equitable fee system based on the user pay
principle;
(
e) provide for its own financial administration by
(
i) establishing an accounting system which ensures that there is
proper reporting and accountability, in a timely manner, to the clients of the investment
management corporation,
(ii) permitting the Minister of Finance and Corporate Relations to
direct the Comptroller General to examine the financial and accounting operations of the
investment management corporation and report back to the investment management board,
Treasury Board, the pension boards and other persons responsible for the funds managed by
the investment management corporation,
(iii) having annual financial statements of the investment
management corporation prepared in accordance with generally accepted accounting
principles,
(iv) having an audit performed annually on the financial
statements referred to in subparagraph (iii), and
(
v) providing to the Minister of Finance and Corporate Relations
an annual business plan and an annual report on the investment management corporation,
including the audited financial statements.
(3) The investment management board may do any of the following:
(
a) delegate to the chief investment officer the exercise or
performance of any power or duty conferred or imposed on the board under subsection (2);
(
b) pass resolutions it considers necessary or advisable to manage
and conduct the affairs of the investment management corporation and to exercise the
board's powers and perform its duties;
(
c) establish committees of the board, and may determine the
composition, duties, responsibilities, limitations and operating procedures of those
committees;
(
d) appoint persons other than directors of the board to a
committee referred to in paragraph (c), and may set the term of appointment that applies
to those committee members.
(4) The chief investment officer appointed under the authority of
subsection (1) (
a) is the chief executive officer of the investment management
corporation.
(5) The investment management board must not be involved in the
investment decisions of the investment management corporation.
Responsibilities of the chief investment officer
(1) The chief investment officer is responsible for
carrying out the day to day duties related to the management of the funds.
(2) The chief investment officer must report
(
a) to the investment management board with respect to the
operations of the investment management corporation, and
(
b) to the trustees or other persons responsible for the funds,
and to the other clients of the investment management corporation, with respect to the
management and investment performance of the funds that they have placed with the
investment management corporation.
(3) The chief investment officer must do all of the following:
(
a) hire and dismiss the officers and employees necessary to carry
on the business and operations of the investment management corporation;
(
b) supervise the day to day operations of the investment
management corporation, including a determination of which assets to buy and sell;
(
c) prepare a business plan and budget for approval by the
investment management board;
(
d) attend at meetings of the investment management board and
receive a copy of all information provided to the board;
(
e) establish policies and procedures to meet the operational
objectives of the investment management corporation and the funds;
(
f) develop a business continuation plan;
(
g) keep all the records, books and accounts of the investment
management corporation, and provide other accounting services as required by the trustees
or other persons responsible for the funds and by the other clients of the investment
management corporation;
(
h) ensure that risk and returns are managed in a prudent and
appropriate fashion, given the nature of the funds, and in accordance with any
instructions provided by the trustees or other persons responsible for the funds;
(
i) hire and dismiss the investment management corporation's
external suppliers, including custodians and external fund managers;
(
j) recommend changes in investment strategies and policies to
clients of the investment management corporation;
(
k) file documentation with the appropriate authorities and
perform other regulatory duties as may be required under the Securities Act and
other enactments;
(
l) address any other matter arising out of the management of the
investment management corporation that is necessary to properly carry out the provisions
of this Part;
(
m) exercise or perform any power or duty delegated to the chief
investment officer by the investment management board under
section 20 (3) (a).
(4) Subsection (3) (
d) does not apply to the chief investment
officer respecting matters referred to in
section 20 (1) (
a) and (
b) or respecting matters
in which there would be a conflict of interest.
(5) In exercising the powers or performing his or her duties, the
chief investment officer may enter into agreements in the name of the investment
management corporation.
(6) Agreements entered into by the chief investment officer are
binding on the investment management corporation and those funds on behalf of which the
chief investment officer is acting.
Officers and employees of the investment
management corporation
(1) The Public Service Act and the Public
Service Labour Relations Act do not apply to the investment management corporation or
the officers and employees of the investment management corporation.
(2) The Pension (Public Service) Act and the Public
Service Benefit Plan Act apply to the investment management corporation and to the
officers and employees of the investment management corporation.
(3) If, immediately before appointment to or employment with the
investment management corporation, an officer or employee has been confirmed in his or her
employment under the Public Service Act, the officer or employee must not suffer a
reduction in salary by reason only of his or her appointment or employment, and any
monetary benefits that he or she would have enjoyed as a public service officer or
employee continue to apply to him or her, subject to the terms of employment determined by
the investment management corporation.
(4) An officer or employee referred to in subsection (3) who is
appointed to or employed by the investment management corporation retains his or her
length of service seniority acquired in the public service for determining his or her
length of service seniority in the investment management corporation.
Chief investment officer's power to delegate
23 The chief investment officer may, on terms and
conditions the chief investment officer considers advisable, delegate to any person or
class of persons any of the chief investment officer's powers, functions or duties.
Operating costs and capital expenditures of the
investment management corporation
(1) The investment management corporation must recover
its operating costs and capital expenditures from one or more of the following:
(
a) amounts charged to the funds for operating costs and capital
expenditures necessarily incurred by the investment management corporation on behalf of
the funds it manages;
(
b) amounts charged to persons, organizations and other clients
for services provided by the investment management corporation;
(
c) income accruing from investments made by the investment
management corporation on its own behalf.
(2) The investment management corporation may, in advance, submit
a requisition quarterly to the funds for the amount required to cover the anticipated
operating costs and capital expenditures necessarily incurred by the investment management
corporation on behalf of those funds.
(3) The funds must pay to the investment management corporation,
in quarterly installments from the funds, the amount requisitioned under subsection (2).
(4) The operating costs and capital expenditures of the investment
management corporation attributable to the funds, as determined and certified by the chief
investment officer, must
(
a) be paid out of the money requisitioned under subsection (2),
and
(
b) to the extent to which the operating costs and capital
expenditures paid out
(
i) are less than the amount requisitioned, be reimbursed to the
funds, or
(ii) are greater than the amount requisitioned, be paid from the
funds.
(5) Capital expenditures of the investment management corporation
may be paid from amounts borrowed by the investment management corporation.
Indemnification
(1) Despite
section 75 of the Financial
Administration Act, the investment management corporation may indemnify a person who
is a director of the investment management board, an officer or employee of the investment
management corporation or a person appointed to a committee of the board under
section 20
(3) (d), or a former director, officer, employee or committee member, against all costs,
charges and expenses actually and reasonably incurred by the person, including an amount
paid to settle an action or satisfy a judgment in a civil, criminal or administrative
action or proceeding to which the person is made a party because of being or having been a
director, officer, employee or committee member, and including an action brought by the
investment management corporation, if
(
a) the director, officer, employee or committee member acted in
good faith, and
(
b) in the case of a criminal action or proceeding, the director,
officer, employee or committee member had reasonable grounds for believing that his or her
conduct was lawful.
(2) The investment management board may purchase and maintain, for
the benefit of the investment management corporation or a director, officer, employee or
committee member referred to in subsection (1), or any of them, insurance against
liability incurred by the investment management corporation or by the director, officer,
employee or committee member.
Part 4 – Regulations and Transitional
Division 1 – Regulations
Regulations
(1) The Lieutenant Governor in Council may make
regulations referred to in
section 41 of the
Interpretation Act.
(2) Without limiting subsection (1), the Lieutenant Governor in
Council may make regulations referred to in
Part 5 of the Financial Administration Act
with the necessary changes so that they apply to the investment management corporation
under this Act.
(3) A regulation made under
Part 5 of the Financial
Administration Act applies, with the necessary changes and so far as it is applicable,
to the investment management corporation as if made under this Act.
Division 2 – Transitional
Transitional – pension corporation
(1) All assets and liabilities of the body known as the
Superannuation Commission within the Ministry of Finance and Corporate Relations, acting
on behalf of the Minister of Finance and Corporate Relations, are transferred at fair
market value to the pension corporation.
(2) To the extent the pension funds have paid for assets not
reflected in the asset accounts of the body known as the Superannuation Commission within
the Ministry of Finance and Corporate Relations, those assets are transferred to the
pension corporation at fair market value, with an equivalent transfer of the deemed
deferred trust revenue liability.
(3) To the extent that accounts payable and accrued liabilities of
the body known as the Superannuation Commission within the Ministry of Finance and
Corporate Relations were funded by the pension funds, an equivalent amount of cash must be
transferred from the government to the pension corporation.
(4) All existing agreements and contracts entered into by the
superannuation commissioner under the Pension (College) Act and the Pension
(Public Service) Act, the commissioner of municipal superannuation under the Pension
(Municipal) Act and the commissioner of teachers' pensions under the Pension
(Teachers) Act, acting on behalf of the government, are transferred to the pension
corporation.
Transitional – investment management
corporation
(1) All capital assets and liabilities of the office of
the chief investment officer under the Financial Administration Act, acting on
behalf of the Minister of Finance and Corporate Relations, are transferred at fair market
value to the investment management corporation.
(2) Despite any other enactment, including the Financial
Administration Act, all of the following apply on and after the date this
section
comes into force:
(
a) any contract, commercial paper, lease, licence, permit,
registration, security or other instrument or document that has been entered into, made or
effected through a power of investment by the Minister of Finance and Corporate Relations
or the chief investment officer is deemed to have been entered into, made or effected by
the chief investment officer in the name of the investment management corporation;
(
b) an amendment to any contract, commercial paper, lease,
licence, permit, registration, security or other instrument or document referred to in
paragraph (
a) does not constitute a breach or contravention of or default under the
contract, commercial paper, lease, licence, permit, registration, security or other
instrument or document;
(
c) the investment management corporation is exempt from any
taxes, fees or other charges imposed by any enactment as a result of any amendment
effected under paragraph (b).
(3) Each portfolio established under B.C. Reg. 84/86, the Pooled
Investment Portfolios Regulation, is continued under this Act and the regulations.
(4) Each participating fund allocated units of a portfolio
immediately before the coming into force of this Part must continue to be allocated those
units of the portfolio with the investment management corporation holding those units as
agent for the participating fund.
(5) All assets held under or in a portfolio by the Minister of
Finance and Corporate Relations or the chief investment officer under the Financial
Administration Act immediately before the coming into force of this Part must continue
to be held under or in the portfolio, in trust, by the investment management corporation.
Transitional – regulations
(1) The Lieutenant Governor in Council may make
regulations respecting any matters necessary or advisable for more effectively bringing
into operation the provisions of Parts 2 and 3 of this Act and for obviating any
transitional difficulties encountered.
(2) Unless earlier repealed, a regulation made under this
section
is repealed one year after it is enacted.
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