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Part II .

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Pension Benefits Regulations

made under

Section 139 of the

Pension Benefits Act

S.N.S. 2011, c. 41

O.I.C. 2015-133 (effective June 1, 2015), N.S. Reg. 200/2015

amended to O.I.C. 2026-47 (effective February 17, 2026), N.S. Reg. 45/2026

Table of Contents

Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.

Click here to go to the text of the regulations .

Part 1:

Interpretation and Application

Definitions and Calculations

Citation

Definitions

Calculation of actuarial gain or loss

Calculation of going concern assets

Calculation of going concern excess

Calculation of going concern unfunded liability

Calculation of solvency assets

Calculation of solvency asset adjustment

Determination of solvency liabilities

Solvency liability adjustment

Calculation of solvency ratio

Determination of solvency deficiency of plan providing defined benefits

Solvency valuation

Calculation of transfer ratio

Book value substituted for market value in calculations

Provision for Adverse Deviations

Definitions and

interpretation for determining provision for adverse deviations

Calculation of provision for adverse deviations

Combined target asset allocation for provision for adverse deviations

Value of “B” in formula for provision for adverse deviations

Jointly Sponsored Pension Plans

Additional criteria for jointly sponsored pension plans

Administrator’s statement about criteria for jointly sponsored pension plan

Specified Multi-Employer Pension Plans

Specified multi-employer pension plan class of plans

Eligibility criteria for specified multi-employer pension plans

Election to be specified multi-employer pension plan

Notice of election to members

Exemptions from the Act and Regulations

Exempted pension plans

Exemption respecting plans for connected persons

Notice that exemption no longer applicable

Amendment to avoid revocation of registration under federal Income Tax Act

Pension plans maintained for employees of 2 or more employers

Nova Scotia Health Employees Pension Plan not a multi-employer pension plan

Nova Scotia Health Employees’ Pension Plan not a jointly sponsored pension plan

Significant shareholder plans

Ensuring no conflict of interest for multi-employer pension plan

Notices and summaries of contributions not required for certain multi-employer pension

plans

Exemption from registration or audit under reciprocal agreement

Designated Jurisdictions

Designated jurisdictions prescribed

Effective dates of multi-jurisdictional pension plan agreements

Part 2: Pension Plan Administration

Registration of Pension Plans and Amendments, and Filing of Agreements

Application for registration of pension plan

Application for registration of amendment to pension plan

Notice and explanation of pension plan amendment

Valuation report on amendment to pension plan

Amendments that are permitted only if cost of amendments paid into pension fund

Amendment to specified multi-employer pension plan requiring liquidation of going

concern unfunded liability

Filing of reciprocal transfer agreements

Requirements for reciprocal transfer agreements

Advisory Committees

Notice and information about establishing advisory committee

Voting on establishing advisory committee

Notice concerning result of vote to establish advisory committee

Nominating advisory committee representatives

Voting on advisory committee representatives

Notice of results of vote on advisory committee representatives

Term of office for advisory committee

Participating on advisory committee

Advisory committee procedure, governance and operations

Appointment of Administrator

Superintendent’s power to appoint administrator

Pension Fund Investment and Administration

Pension fund trustee

Definitions for Sections 47 to 50—incorporation of federal investment regulations

Investment of plan assets must be in accordance with regulations and federal investment

regulations

Statement of investment policies and procedures

Record of investments

Designated jurisdictions—alternate corresponding provisions

Reporting to the Superintendent

Pension plan that provides only defined contribution benefits exempted

Initial valuation reports

Valuation reports at regular intervals

Valuation reports for multi-employer pension plans

Solvency concerns indicated in initial or review valuation report

Valuation report for plan that ceases to be designated plan or individual pension plan

Time period for filing valuation reports

Cost certificates

Reports and certificates to be prepared by actuary, accountant or other authorized person

Use of actuarial methods and assumptions in preparing valuation and wind-up reports

Actuarial information

summary to accompany valuation report

Copy of report to agent of administrator

Filing annual information return

Financial statements required to be filed for pension funds

Content and preparation of financial statements

Auditor’s report on financial statements

Auditor’s duty to report to administrator and Superintendent

Extension of time limit for filing of document

Information to Members and Others

Member and eligible member information

Information to be provided where plan permits optional contributions

Information to be provided before variable benefits account established

Annual statement to members

First annual statement on or after April 1, 2020

Annual statement to variable benefits participant

Statement on termination of employment or membership

Biennial statement to former members

Biennial statement to retired members

Statement to variable benefits participant on transfer from variable benefits account

Death benefits statement

Statement after death of variable benefits participant

Notification of options to retiring member

Retirement statement to member

Information required to be available on request

Inspection of filed records of pension plan and pension fund

Records Respecting Pension Plans

Retention of records

Part 3: Funding of Pension Plans

Payment

Employer contributions and employee contributions set out in pension plan

Minimum contributions to pension plan

Sufficiency of contributions on and after April 1, 2020

Sufficiency of contributions for specified multi-employer pension plan

Contributions made to a jointly sponsored pension plan

Previous year credit balance used to reduce employer payments

Funding of escalated adjustments

When and how payment of contributions to be paid

Contributions for provision for adverse deviations may be made to reserve account

Time limits for contributions under pension plans that are subject to collective

agreements

Offset on conversion of plan to defined contribution benefit

Restrictions on reductions or suspensions of contributions

Use of actuarial gain

Special payments if going concern excess

Administrator’s and agent’s notice that contributions not paid

Summary of contributions

Special Payments—General

Minimum amount of special payments

Interest payments required for employers who provide letter of credit

Alternative determination of special payments for jointly sponsored pension plans

Previous year credit balance

Adjustment of special payments for solvency excess

Adjustment of special payments for solvency excess—solvency deficiency

Special Payments—Temporary Exceptions

Special payments—temporary exceptions

Letters of Credit

Letter of credit deemed to apply to solvency deficiency

Prescribed requirements for letters of credit

Prescribed employers

Prescribed person or entity provided letter of credit

Deadlines for providing letters of credit

When trustee must demand payment of amount of letter of credit

Notification by trustee if payment demanded under letter of credit

Notification by trustee if issuer of letter of credit fails to pay on demand

Part 4: Membership, Benefits and Interest

Pension Plan Membership

Prescribed classes of employees

Variations and Reductions for CPP, QPP and OAS

Variation of pension benefits for CPP or QPP entitlements

Calculating reduction when integrating retirement benefits with CPP, QPP and OAS

Reduction of bridging benefits

Application for withdrawal from pension plan in circumstances of shortened life

expectancy

Deferred pension under pension plan insured by individual level-premium contracts

issued before qualification date

Portion of benefits attributable to employment after January 1, 1988—final average or

best average earnings plans

Death Benefit Entitlements

Exercising entitlement to pre-retirement death benefit under subsection 67(1) or (2) of

Act

Exemption from reduction in pre-retirement death benefit entitlement

Offset in relation to pre-retirement death benefits

Commuted Value and Limits on Transfers

Commuted value of pension benefits and ancillary benefits for transfer

Calculating portion of commuted value available for transfer

Limits on transferring commuted value of pension benefits

Balance of transfer if less than 100% of commuted value transferred

Exemptions to limits on transfers

Benefits that result from voluntary contributions for past service

Reciprocal transfer agreement—50% rule

Entitlement to excess amount of commuted value of converted benefits

Additional prescribed ancillary benefits

Bridging benefits not taken into account

Purchase of Annuity from Insurance Company

Definitions for Sections 144A to 144F

Notice of intended purchase of annuity

Prescribed requirements for contract

Prescribed requirements for purchase

Record of purchase kept by administrator

Notice required on filing actuarial certificate for discharge of administrator

Notice required on filing new actuarial certificate for discharge of administrator

Phased Retirement Option

Definition of phased retirement option

Application for phased retirement option

Participation in phased retirement option

Variable Pension Benefits

Definitions for Sections 149 to 151

Pension plan provisions for variable pension benefits

Additional transfers to, and transfer from, variable benefits account

Maximum amount of variable pension benefits payable

Optional Benefits

Optional benefits prescribed

Interest

Definitions for crediting interest on contributions—Sections 154 to 158

When contribution interest accrues

Interest rates for defined contribution pension plan

Interest rates for defined benefit pension plan

Interest for pension plans that provide both defined contribution benefits and defined

benefits

Interest rate on termination of employment or membership

Interest on lump sum payments

Interest on commuted value of former member’s deferred pension or retired member’s

pension

Interest on ordered repayment of money or return of assets

Interest on commuted value on wind-up of plan

Withdrawing Surplus from Pension Plan

Notice of application to withdraw surplus from continuing pension plan

Application to withdraw surplus from continuing pension plan

Determining surplus for continuing pension plan

Notice of application to withdraw surplus from plan being wound up

Application to withdraw surplus from plan being wound up

Notice of intention to enter into agreement for payment of surplus to employer

Payments in accordance with election re surplus

Number of persons for purposes of agreement regarding payment of surplus to employer

Withdrawal of surplus from a reserve account on full wind-up of pension plan

Part 5: Wind-up of Pension Plans

Notice of intended wind-up

Statement of member entitlements on wind-up

Payments in accordance with election on wind-up

Prescribed circumstances for ordering wind-up

Wind-up report

Additional information with wind-up report

Minimum commuted value as of effective date of wind-up

Payments exempt under subsection 94(3) of Act

Payments out of pension plan on wind-up

Reduction in benefits on wind-up

Documents required to be filed within 6 months of wind-up

Notice of distribution of all assets of pension plan

Payment of outstanding amounts on wind-up

Payments on wind-up of pension plan other than jointly sponsored pension plan

Payments of any additional amounts on wind-up of jointly sponsored pension plan

Administrator’s responsibilities during wind-up if additional funding required

Definitions for election to exclude jointly sponsored pension plan from

Section 97 of

Act—Sections 188 to 194

Notice of vote

Vote on whether to make election to exclude

Last date for accepting election forms

Maintenance of election forms

Prohibition against identifying persons who submit election forms

Successful election to exclude

Notice of election

Part 6: Withdrawals and Transfers

Withdrawals and Transfers from Pension Plans

Direction to administrator to exercise entitlement under subsection 61(5) of Act

Direction to administrator to transfer into registered retirement savings arrangement

Transfers to a retirement savings arrangement under clause 61(1)(

b) of Act

Transfers of excess amount into LIRA or LIF

Life Annuities, LIRAs and LIFs

Life annuities

Purchasing LIRAs

Contracts establishing and governing LIRAs

Administrator’s duties respecting transfers to LIRAs

Conditions for transferring assets from LIRAs

Amending LIRAs

Purchasing LIFs

Contracts establishing and governing LIFs

Administrator’s duties respecting transfers to LIFs

Conditions for transferring assets from LIFs

Amending LIFs

Withdrawals from LIRAs and LIFs

Definitions for circumstances of financial hardship—Sections 212 to 230

Prescribed circumstances of financial hardship

Application to financial institution for consent to withdraw funds from LIRA or LIF in

circumstances of financial hardship

LIRA or LIF contract terms applicable to application

Declaration about a spouse for withdrawal from LIRA or LIF

Mortgage default circumstance application information

Medical expenses circumstance application information

Rental default circumstance application information

Reduced income circumstance application information

Financial institution may require additional information

Financial institution entitled to rely on information

Stale-dated document not valid for application

Only 1 application in calendar year

Calculating maximum consented amounts

Consented amount may be lower than requested

Subsequent applications prohibited if funds withdrawn

Owner authorized to receive payment

Payment after consent

Withdrawal from LIRA or LIF in circumstances of shortened life expectancy

Withdrawal from LIRA or LIF in circumstances of non-residency

Withdrawal of small amounts from LIRA or LIF at age 55

Withdrawal from LIF at age 55

LIFs governed by

Schedule 4A effective January 1, 2035

Owner may transfer assets in LIF before December 31, 2034

Part 7: Division of Pension Entitlement and Compliance with Attachment

Division of Pension Entitlement Between Spouses

Definitions for division of pension entitlement—Sections 235 to 252

Application of Sections 234 to 252

Matrimonial Property Act settlements

Separation date specified in court order or domestic contract

Information about pension plan, LIRA or LIF provided to spouse

Notice to member, former member or retired member of spouse’s request

Limited members

Information to be provided to limited member

Transfer of proportionate share out of pension plan

Limited member’s separate pension resulting from division of defined benefit

End of entitlement to limited member’s proportionate share

Death of member, former member or limited member entitled to defined benefit

Variation of payment to person with shortened life expectancy and payment of

commuted value if benefit is small

Calculation of proportionate share of defined contribution benefit

Calculation of proportionate share of LIRA or LIF

Calculation of proportionate share of pension, defined benefit or pre-retirement death

benefit in respect of defined benefit

Adjustment of a member’s or former member’s defined benefit

Notice to spouse if member’s, former member’s or retired member’s interest may be

affected

Administrative fees incurred to satisfy entitlement of spouse

Complying with Attachment

Costs of complying with attachment under Maintenance Enforcement Act

Part 8: Asset Transfers Between Pension Plans

Interpretation and Application for

Part 8

Application of this Part

Definitions for Sections 107, 108 and 110 of the Act and this

Part

Calculations and Dates

Determining commuted value of benefits

Effective date of transfer of assets upon sale of business

Effective date of transfer of assets upon establishment of successor pension plan

Deadline for completing transfer of assets

Transfers of Defined Benefits

Application of Sections 262 to 269

Amount of assets to be transferred

Solvency ratio condition for Superintendent’s consent to transfer of assets

Special payments to continue to be made by original employer

Content required in certain valuation reports

Restriction on reducing successor pension plan accrued benefits

Amount of accrued pension benefits under successor pension plan

Transfers of excess amounts into LIRA or LIF under subsection 107(8) of the Act

Notices about transfers of assets with respect to defined benefits

Transfers of Defined Contribution Benefits

Application of Sections 271 and 272

Amount in individual accounts must not be less after transfer

Notices about transfers of assets with respect to defined contribution benefits

Election to Transfer Assets Upon Sale of Business

Applicability of provisions to transfer of assets that requires transfer consent

Election forms and process

Information to be included in election form

Last date for accepting election forms

Copies of notices and election form to bargaining agent and advisory committee

Applicant to keep election forms

Updated Notices for Persons Not Eligible to Transfer Assets

Updated notices for persons not eligible to transfer assets

Applications for Consent

Information to be included in application for consent to transfer of assets upon sale of

business

Information required to be included in application for consent to transfer of assets upon

establishment of successor pension plan

Combining valuation reports for consent to transfer of assets upon sale of business

Applying for Superintendent’s consent to transfer of assets

Certificate respecting election process

Notice re completion of transfer of assets

Schedules

Schedule 1: Permitted Investments [repealed]

Schedule 2: Letters of Credit

Definitions for this

Schedule

Letters of credit—criteria

Providing copy of trust agreement

Issuers of letters of credit

Matters that must be included in letter of credit

Matters that must be included in trust agreement

Schedule 3: Nova Scotia LIRA Addendum

Definitions for this

Schedule

Transferring assets from LIRAs

Information to be provided by financial institution on transfers of assets of LIRAs

Information to be provided annually by financial institution

Death benefits

Waiver of entitlement to death benefits by spouse

Information to be provided by financial institution on death of owner

Schedule 4: Nova Scotia LIF Addendum

Definitions for this

Schedule

LIF governed by this

Schedule cannot be purchased on or after April 1, 2025

Fiscal year of LIFs

Reference rate criteria

Periodic payments of income out of LIFs

Amount of income payments from LIFs

Minimum annual LIF withdrawal

Pro-rating amount of withdrawal if initial fiscal year less than 12 months

Maximum annual life income from LIF that does not provide for temporary income

Withdrawal of temporary income from LIFs

Maximum temporary income for fiscal year

Maximum life income withdrawal from LIFs

Maximum annual income payable if financial institution guarantees rate of return of LIFs

Income in excess of maximum

Information to be provided annually by financial institution

Transferring assets from LIFs

Information to be provided by financial institution on transfer of balance of LIFs

Information to be provided upon transfer of additional amounts to LIFs

Death benefits

Waiver of entitlement to death benefits by spouse

Information to be provided by financial institution on death of owner

Schedule 4A: Nova Scotia LIF Addendum

Definitions for this

Schedule

Fiscal year of LIFs

Reference rate criteria

Note Re Requirements of the Pension Benefits Act and Regulations and the

Periodic payments of income out of LIFs

Amount of income payments from LIFs

Minimum annual LIF withdrawal

Pro-rating amount of withdrawal if initial fiscal year less than 12 months

Maximum annual life income from LIF

Maximum annual income payable if financial institution guarantees rate of return of LIFs

Income in excess of maximum

Information to be provided annually by financial institution

Transferring assets from LIFs

Information to be provided by financial institution on transfer of balance of LIFs

Information to be provided upon transfer of additional amounts to LIFs

Death benefits

Waiver of entitlement to death benefits by spouse

Information to be provided by financial institution on death of owner

Schedule 5: Life Income Fund—Factor F

Schedule 6: Life Income Fund—Temporary Income Factor D

Schedule 7: Information Required for Application for Superintendent’s Consent to Transfer of

Assets

Transfers of Assets on Sale of Business (S. 108 of Act)

Information required in application for Superintendent’s consent—defined benefits

Information required in application for Superintendent’s consent—defined contribution

benefits

Transfers of Assets on Establishment of Successor Plan (S. 110 of Act)

Information required in application for Superintendent’s consent—defined benefits

Information required in application for Superintendent’s consent—defined contribution

benefits

Schedule 8: Original Pension Plan—Information Required for Notices for Transfers of Assets

(S. 108 and 110 of Act)

Transfers of Assets With Respect to Defined Benefits

Information for notices to members eligible to transfer assets—defined benefits

Information for notices to former members, retired members and other persons eligible

to transfer assets when transfer consent required—defined benefits

Information for notices to members and others not eligible to transfer assets—defined

benefits

Information for notices to bargaining agents and advisory committees—defined benefits

Transfers of Assets With Respect to Defined Contribution Benefits

Information for notices to members eligible to transfer assets—defined contribution

benefits

Information for notices to former members, retired members and other persons eligible

to transfer assets, when transfer consent required—defined contribution benefits

Information for notices to members and others not eligible to transfer assets—defined

contribution benefits

Information for notices to bargaining agents and advisory committees—defined

contribution benefits

Statements about Accessing Documents Filed with Superintendent

Information to be included in notices about accessing filed documents

Statements about Transfers of Assets When Transfer Consent Required

Information to be included in notices when transfer consent required

Schedule 9: Successor Pension Plan—Information Required for Notices for Transfers of Assets

(S. 108 and 110 of Act)

Transfers of Assets With Respect to Defined Benefits

Information for notices to members eligible to transfer assets—defined benefits

Information for notices to former members, retired members and other persons eligible

to transfer assets—defined benefits

Information for notices to bargaining agents and advisory committees—defined benefits

Transfers of Assets with Respect to Defined Contribution Benefits

Information for notices to members eligible to transfer assets—defined contribution

benefits

Information for notices to former members, retired members and other persons eligible

to transfer assets—defined contribution benefits

Information for notices to bargaining agents and advisory committees—defined

contribution benefits

Part 1:

Interpretation and Application

Definitions and Calculations

Citation

1 These regulations may be cited as the Pension Benefits Regulations .

Definitions

(1) In these regulations,

“Act” means the Pension Benefits Act ;

“actuarial gain” means a gain as calculated under

Section 3;

“actuarial loss” means an actuarial loss as calculated under

Section 3;

“actuary” means a Fellow of the Canadian Institute of Actuaries;

“amount equal to the provision for adverse deviations” is as defined in

Section

12A;

“annual information return” means the annual information return required to be

filed under subsection 31(1) of the Act;

“annual statement to members” means the written statement required to be sent

under

Section 40 of the Act and in accordance with

Section 74;

“approved form” means a form that the Superintendent has approved and requires

to be used under subsection 137(1) of the Act, which the Superintendent may make

available through the Pension Regulation Division or on its website;

“book value” of an asset, means the cost of acquisition to the person acquiring the

asset, including all direct costs associated with the acquisition;

“ Canadian Institute of Actuaries Standards of Practice ” means the Canadian

Institute of Actuaries Standards of Practice developed and adopted by the

Actuarial Standards Board, as amended, and published by the Canadian Institute of

Actuaries and made available to the public from the Canadian Institute of

Actuaries’ offices or on their website;

“certified copy” of a document to be filed or submitted to the Superintendent under

these regulations, means a copy that is certified to be a true copy of the original

document by

(

i) the person required or permitted to file or submit it, or

(ii) an authorized official of the person referred to in subclause (i);

“cost certificate” means a cost certificate prepared in accordance with Sections 60

and 61;

“ CPA Canada Handbook – Accounting ” means the CPA Canada Handbook –

Accounting , as amended, published by the Chartered Professional Accountants

Canada and made available to the public from the Chartered Professional

Accountants Canada offices or on their website;

“ CPA Canada Handbook – Assurance ” means the CPA Canada Handbook –

Assurance , as amended, published by the Chartered Professional Accountants

Canada and made available to the public from the Chartered Professional

Accountants Canada offices or on their website;

“CPP” means the Canada Pension Plan (Canada);

“deferred life annuity” means a life annuity under

Section 199, that

(

i) commences payments no earlier than one year after its purchase,

(ii) provides for equal periodic payments or periodic payments that have

been varied by reference to

(

A) the amount of any pension payable under the Old Age Security

Act (Canada),

(

B) the amount of any pension payable under either the Canada

Pension Plan (Canada) or a provincial pension plan as defined

Section 3 of the Canada Pension Plan (Canada),

(

C) the Consumer Price Index for Canada as published by

Statistics Canada under the authority of the Statistics Act

(Canada), or

(

D) the value of the assets held in a segregated fund, and

(iii) is issued by a person authorized to carry on a life insurance business

in Canada;

“designated plan” means a pension plan that is a designated plan for the purposes

of the federal Income Tax Regulations ;

“domestic contract” means a written agreement referred to in and for the purpose

Section 74 of the Act, or

Section 14 of the Pooled Registered Pension Plans

Act , that provides for a division between spouses of any pension benefit, deferred

pension, pension, LIRA or LIF and includes a marriage contract as defined in the

Matrimonial Property Act ;

“employee contributions” means all sums received by an employer from an

employee or deducted from an employee’s pay as the employee’s contributions to a

pension plan;

“employer contributions” means all contributions made by an employer, or by a

person or entity required to make contributions on behalf of an employer, into a

pension fund or to an insurance company, as the employer’s contributions to a

pension plan;

“escalated adjustment” means an adjustment made to a deferred pension of a

former member or to the pension of a retired member that

(

i) is not capable of being determined with certainty at the time the plan

or a relevant amendment to the plan is submitted to the

Superintendent for registration because the adjustment is related to

the investment earnings of the pension fund or to future changes in a

general wage or price index, or

(ii) is an increase in the pension or deferred pension at a fixed annual

percentage rate specified in the plan;

“federal Income Tax Act ” means the Income Tax Act (Canada) and, unless

specified otherwise, includes the regulations made under that Act;

“federal Income Tax Regulations ” means the Income Tax Act Regulations

(Canada) made under the federal Income Tax Act ;

“federal investment regulations” is as defined in

Section 47;

“financial institution” means any of the following:

(

i) a bank,

(ii) a body corporate to which the Trust and Loan Companies Act

applies,

(iii) a cooperative credit society to which the Co-operative Associations

Act applies,

(iv) an insurance company to which the Insurance Act applies,

(

v) a trust, loan or insurance corporation incorporated by or under

an Act

of the legislature of a province,

(vi) a cooperative credit society incorporated and regulated by or under an

Act of the legislature of a province,

(vii) an entity that is incorporated or formed by or under

an Act of

Parliament or of the legislature of a province and that is primarily

engaged in dealing in securities, including portfolio management and

investment counselling, or

(viii) a foreign institution;

“fiscal year” of a pension plan means a period of no longer than 12 months and,

unless otherwise stated in documents that create and support the plan, is deemed to

be the period from January 1 to December 31, inclusive;

“foreign institution” means, for the purposes of the definition of “financial

institution”, an entity that meets all of the following criteria:

(

i) it is incorporated or formed otherwise than by or under

an Act of

Parliament or of the legislature of a province,

(ii) it is engaged in any of the following:

(

A) the business of banking,

(

B) the trust, loan or insurance business,

(

C) the business of a cooperative credit society,

(

D) the business of dealing in securities,

(

E) the business of providing financial services as its primary

business;

“former regulations” means the Pension Benefits Regulations , N.S. Reg. 164/2002,

made under the former Act;

“going concern assets” means the value of the assets and special payments in

respect of a pension plan, as calculated under

Section 4;

“going concern excess” means the going concern excess calculated under

Section

4A;

“going concern liabilities” means the present value of the accrued benefits of a

pension plan determined on the basis of a going concern valuation;

“going concern unfunded liability” means the going concern unfunded liability

calculated under

Section 4B;

“going concern valuation” means a valuation of the assets and liabilities of a

pension plan using actuarial methods and assumptions that are consistent with

accepted actuarial practice for the valuation of a continuing pension plan;

“going concern valuation interest rate” means, unless otherwise stated in these

regulations, the interest rate used to value the liabilities of the pension plan in a

going concern valuation;

“government” means Her Majesty in right of Nova Scotia, an agent of Her Majesty

or a municipality;

“immediate life annuity” means a life annuity under

Section 199 that commences

payments within 1 year of its purchase and otherwise meets the requirements of

subclauses (ii) and (iii) of the definition of “deferred life annuity”;

“individual pension plan” means a pension plan that is an individual pension plan

for the purposes of the federal Income Tax Regulations ;

“insured pension plan” means a pension plan in which all benefits are paid by

means of an annuity or insurance contract issued by a person authorized to carry on

a life insurance business in Canada and under which the person is obligated to pay

all the benefits set out in the plan;

“letter of credit” means a letter of credit provided by an employer instead of

making payments into a pension fund with respect to a solvency deficiency, in

accordance with

Section 77 of the Act, Sections 116 to 124 and

Schedule 2:

Letters of Credit;

“LIF” or “life income fund” means a registered retirement income fund that is a

registered retirement savings arrangement as defined in clause 2(as) of the Act and

meets the requirements in Sections 205 to 210 and the requirements in either of the

following:

(

i) Schedule 4: Nova Scotia LIF Addendum, or

(ii)

Schedule 4A: Nova Scotia LIF Addendum;

“life annuity” means a deferred life annuity or an immediate life annuity;

“LIRA” or “locked-in retirement account” means a registered retirement savings

plan that is a registered retirement savings arrangement as defined in clause 2(as)

of the Act and meets the requirements in Sections 200 to 204 and

Schedule 3:

Nova Scotia LIRA Addendum, and includes a registered retirement savings plan

established under a contract made before January 1, 2003, for the purposes of a

transfer under the former Act;

“lump sum benefit improvement contribution” means a lump sum contribution that

was made before the date a valuation report is filed under subsection 31(1) to fund,

in whole or in part, any increase in going concern liabilities or solvency liabilities,

or both, because of an amendment to the pension plan;

“market value” means, in relation to an asset, the price that would be obtained in

the purchase or sale of the asset in an open market under conditions requisite to a

fair transaction between parties who are at arm’s length and acting prudently,

knowledgeably and willingly;

“maximum funding valuation” means a maximum funding valuation as described

in the federal Income Tax Regulations for the purpose of those regulations and the

federal Income Tax Act ;

“municipality” means a municipality as defined in the Municipal Government Act ;

“normal cost” means , in relation to a pension plan, the cost of pension benefits

and ancillary benefits allocated to the plan’s fiscal year, determined on the basis of

a going concern valuation;

“OAS” means the Old Age Security Act (Canada);

“owner” means

(

i) in relation to a LIRA, a person who is listed as eligible to purchase a

LIRA in subsection 200(2), and who has purchased a LIRA,

(ii) in relation to a LIF, a person who is listed as eligible to purchase a

LIF in subsection 205(2) and who has purchased a LIF,

(iii) in relation to a life annuity, any of the following:

(

A) a former member, acting in accordance with clause 61(1)(

c) of

the Act, who has purchased a life annuity,

(

B) a former member, acting in accordance with clause 61(1)(

b) of

the Act and clause 2(1)(

d) of

Schedule 3: Nova Scotia LIRA

Addendum, who has purchased a life annuity,

(

C) a former member, acting in accordance with clause 61(1)(

b) of

the Act and clause 15(1)(

b) of

Schedule 4: Nova Scotia LIF

Addendum, who has purchased an immediate life annuity,

(

D) a former member, acting in accordance with clause 61(1)(

b) of

the Act and clause 12(1)(

b) of

Schedule 4A: Nova Scotia LIF

Addendum, who has purchased an immediate life annuity;

“pensionable earnings” means the earnings on which contributions to a pension

plan are based in accordance with the documents that create and support the plan;

“physician” means 1 of the following:

(

i) a physician who is licensed to practise medicine in a jurisdiction in

Canada,

(ii) in respect of any of the following applications, a physician who is

licensed to practise medicine in the jurisdiction in which the

applicant resides:

(

A) under subsection 69(2) of the Act and

Section 129, an

application for the withdrawal of money from a pension plan

by a member, former member or retired member in

circumstances of shortened life expectancy,

(

B) under subsection 91(4) of the Act and Sections 212 to 230, an

application for the withdrawal of money from a LIRA of [or]

LIF by the owner in circumstances of financial hardship,

(

C) under subsection 91(4) of the Act and

Section 231, an

application for the withdrawal of money from a LIRA or LIF

by the owner in circumstances of shortened life expectancy;

“ Pooled Registered Pension Plans Regulations ” means the Pooled Registered

Pension Plans Regulations made under the Pooled Registered Pension Plans Act ;

“prescribed fee” means the applicable fee prescribed by the Pension Benefits Act

Fees Regulations made by the Minister under

Section 136 of the Act;

“pre-retirement death benefit” means a pension entitlement of a spouse or other

beneficiary or personal representative of a member, former member or retired

member in accordance with

Section 67 of the Act;

“previous year credit balance”, in relation to a valuation report or cost certificate,

means the previous year credit balance determined in accordance with

Section 102;

“provision for adverse deviations” is as defined in

Section 12A;

“public accountant” means a public accountant licensed under the Public

Accountants Act ;

“QPP” means

An Act Respecting the Quebec Pension Plan (Quebec);

“retirement savings arrangement” is a “prescribed retirement savings arrangement”

as that term is used in the Act, and means a

(

i) LIRA, or

(ii) LIF;

“solvency asset adjustment” means the solvency asset adjustment calculated under

Section 6;

“solvency assets” means solvency assets calculated under

Section 5;

“solvency deficiency” means a solvency deficiency determined in accordance with

Section 9;

“solvency liabilities” means solvency liabilities determined in accordance with

Section 7;

“solvency liability adjustment” means the amount specified by

Section 8;

“solvency ratio” means the solvency ratio calculated under

Section 8A;

“solvency valuation” means a valuation of the solvency assets and solvency

liabilities of a pension plan in accordance with

Section 10, using actuarial methods

and assumptions that are consistent with accepted actuarial practice for the

valuation of a pension plan, determined on the basis that the plan is being wound

up and otherwise meeting the requirements of these regulations;

“solvency valuation interest rate” means, unless otherwise stated in these

regulations, the interest rate used to calculate the solvency liabilities in the

valuation report;

“special allowance” means a bridging benefit that is adjusted according to any

income the retired member earns from employment with the employer after

termination;

“special payment” means a payment, or 1 of a series of payments, made to

liquidate a going concern unfunded liability or solvency deficiency in relation to

the pension benefits under a pension plan, and determined in accordance with

(

i) Section 99 or 101, for the minimum amount of payments required in

relation to a going concern unfunded liability or a solvency

deficiency,

(ii)

Section 104, for temporary special payments made under subsection

105(1) or (2) or

Section 107, as those provisions read immediately

before April 1, 2020;

“specified multi-employer pension plan” means a multi-employer pension plan as

described in

Section 15;

“transfer deficiency” means the amount by which the commuted value of a benefit

determined in accordance with subsection 135(1) exceeds the transfer value of that

benefit determined in accordance with

Section 136;

“transfer ratio” means the transfer ratio calculated under

Section 11;

“valuation date” means the date as of which assets and liabilities are valued for the

purposes of the going concern valuation and solvency valuation in a valuation

report or cost certificate;

“valuation report” means a report in relation to a pension plan that is filed or

submitted to the Superintendent in accordance with subsection 31(2) of the Act,

based on a going concern valuation and a solvency valuation under

(

i) Section 52, for the initial valuation report,

(ii)

Section 53 or 54, for a valuation report other than the initial valuation

report,

(iii) [repealed]

(iv)

Section 31, for a report concerning an amendment to the plan,

(

v) clauses 1(

e) and (

f) of

Schedule 7: Information Required for

Application for Superintendent’s Consent to Transfer of Assets, for a

valuation report to be included in an application for the

Superintendent’s consent to a transfer of assets upon the sale of a

business,

(vi) clauses 3(

e) and (

f) of

Schedule 7: Information Required for

Application for Superintendent’s Consent to Transfer of Assets, for a

valuation report to be included in an application for the

Superintendent’s consent to a transfer of assets upon the

establishment of a successor pension plan;

“wind-up report” means the report required to be filed by an administrator on

wind-up of a pension plan under

Section 94 of the Act.

(2) In the Act and these regulations,

“advisory committee”, in relation to a pension plan, means a committee established

in accordance with and for the purposes of

Section 36 of the Act;

“bargaining agent” means a bargaining agent as defined in the Trade Union Act .

(3) [repealed]

Calculation of actuarial gain or loss

(1) An actuarial gain or actuarial loss in relation to a going concern valuation is

calculated as the sum of all of the following as of the valuation date:

(

a) any gain to the pension plan since the valuation date of the immediately

previous going concern valuation that results from the difference between

actual experience and the experience expected by the actuarial assumptions

that the previous valuation was based on;

(

b) the amount by which the going concern liabilities have decreased as a result

of any amendments to the plan since the previous valuation;

(

c) the amount by which the going concern liabilities have decreased or the

going concern assets have increased since the previous valuation as a result

of a change in actuarial methods or assumptions that the current going

concern valuation is based on.

(2) Despite subsection (1), the amounts in clauses (1)(a), (

b) or (

c) must be counted as

a negative in the calculation of the sum under that subsection if any of the

following occur during the period since the previous valuation:

(

a) the experience of the pension plan results in a loss rather than a gain;

(

b) an amendment to the pension plan increases the going concern liabilities;

(

c) a change in actuarial methods or assumptions results in an increase in going

concern liabilities or a decrease in going concern assets.

(3) If the sum calculated under this

Section results in

(

a) a positive number, then the result is an actuarial gain;

(

b) a negative number, then the result is an actuarial loss.

Calculation of going concern assets

4 Going concern assets are calculated as the sum of all of the following as of the valuation

date:

(

a) the value of the assets of the pension plan determined on the basis of a

going concern valuation, including accrued and receivable income but

excluding the amount of any letter of credit held in trust for the pension

plan;

(

b) for a valuation report that has a valuation date before December 31, 2019,

the present value of any special payments in respect of a going concern

unfunded liability, determined on the basis of a going concern valuation,

that have been disclosed in previously filed valuation reports;

(

c) for a valuation report that has a valuation date on or after December 31,

2019,

(

i) the present value of special payments described in clause 99(3)(

c) in

respect of any plan amendment that increases going concern

liabilities, and

(ii) the present value of special payments in respect of a going concern

unfunded liability that are scheduled for payment within 1 year after

the valuation date of the valuation report and that are disclosed in the

previously filed valuation report, other than any special payments

described in subclause (i).

Calculation of going concern excess

4A The going concern excess in respect of a pension plan is calculated as the amount, if any,

by which the plan’s going concern assets exceed the sum of all of the following for the

plan:

(

a) the going concern liabilities;

(

b) for a valuation report with a valuation date on or after December 31, 2019,

the amount equal to the provision for adverse deviations;

(

c) the previous year credit balance.

Calculation of going concern unfunded liability

4B The going concern unfunded liability in respect of a pension plan is calculated as the

amount, if any, by which the sum of all of the following for the plan exceeds the going

concern assets:

(

a) the going concern liabilities;

(

b) for a valuation report with a valuation date on or after December 31, 2019,

the amount equal to the provision for adverse deviations;

(

c) the previous year credit balance.

Calculation of solvency assets

5 Solvency assets are calculated as the sum of all of the following as of the valuation date:

(

a) subject to

Section 12, the market value of investments held by a pension

plan;

(

b) any cash balances of a pension plan and accrued or receivable income items

of the plan, excluding the amount of any letter of credit held in trust for the

plan.

Calculation of solvency asset adjustment

(1) For a valuation report with a valuation date before December 31, 2019, the

solvency asset adjustment is the sum of all of the following:

(

a) the amount, positive or negative, by which the value of the solvency assets

is adjusted by applying an averaging method that stabilizes short-term

fluctuations in the market value of the plan assets, calculated over a period

of no longer than 5 years;

(

b) subject to subsection (3), the present value of any of the following special

payments, other than special payments that are required to liquidate any

solvency deficiency determined in the valuation report in relation to which

the solvency asset adjustment is being calculated:

(

i) except as provided in subclause (ii), the special payments referred to

in clause 99(1)(

a) to liquidate a going concern unfunded liability that

are scheduled for payment within the 5-year period beginning on a

date that is no later than 12 months after the valuation date,

(ii) if special payments are being made under

Section 104 to liquidate a

solvency deficiency, the special payments referred to in clause

99(1)(

a) to liquidate a going concern unfunded liability that are

scheduled for payment within the longer of the following periods:

(

A) the 5-year period beginning on a date that is no later than 12

months after the valuation date,

(

B) the remainder of the amortization period for liquidating the

solvency deficiency specified in each of the provisions referred

to in

Section 104 under which the

schedule of payments was

established,

(iii) except as provided in subclause (iv), special payments referred to in

clause 99(1)(

b) to liquidate a solvency deficiency that are scheduled

for payment within the remainder of the 5-year period beginning on a

date that is no later than 12 months after the valuation date,

(iv) if special payments are being made under a provision referred to in

Section 104, the special payments in accordance with the provision

that are required to liquidate the solvency deficiencies over the period

identified in the provision;

(

c) the total amount of all letters of credit held in trust for the pension fund as

of the valuation date, excluding the value of any special payments to which

the letter of credit relates that are due after the valuation date.

(2) For a valuation report with a valuation date on or after December 31, 2019, the

solvency asset adjustment is the sum of all of the following:

(

a) the amount, positive or negative, by which the value of the solvency assets

is adjusted by applying an averaging method that stabilizes short-term

fluctuations in the market value of the plan assets, calculated over a period

of no longer than 5 years;

(

b) subject to subsection (3), the present value of any of the following special

payments, other than special payments that are required to liquidate any

solvency deficiency determined in the valuation report in relation to which

the solvency asset adjustment is being calculated:

(

i) special payments referred to in clauses 99(3)(a), (

b) or (

c) to liquidate

a going concern unfunded liability that are scheduled for payment

within the 5-year period beginning on a date that is no later than 12

months after the valuation date,

(ii) for a valuation report filed subsequent to the first valuation report

filed on or after December 31, 2019, the special payments

determined in clauses 99(3)(

d) and (

e) to liquidate a solvency

deficiency that are scheduled for payment within the remainder of the

5-year amortization period;

(

c) the total amount of all letters of credit held in trust for the pension fund as

of the valuation date, excluding the value of any special payments to which

the letter of credit relates that are due after the valuation date.

(3) The present value of special payments used to calculate the solvency asset

adjustment under subsections (1) and (2) must be calculated as of the valuation

date using the following interest rates:

(

a) if the solvency liability adjustment is zero, the solvency valuation interest

rates;

(

b) if the solvency liability adjustment is not zero, the average of the solvency

valuation interest rates used in the report to calculate the solvency liability

adjustment.

Determination of solvency liabilities

(1) In this Section, “prospective benefit increase” means an increase to a pension

benefit or ancillary benefit that is set out in a pension plan or agreed to by the

parties to a collective agreement but not yet in effect.

(2) The solvency liabilities of a pension plan, in respect of a valuation report, are the

liabilities of the plan determined as if the plan had been wound up on the valuation

date, but do not include the following liabilities:

(

a) any escalated adjustment in relation to the pension and pension benefits

accrued before the date these regulations come into force;

(

b) entitlements of a member on wind-up of the plan under

Section 97 of the

Act;

(

c) special allowances;

(

d) prospective benefit increases.

(3) A solvency liability arises on the valuation date of the valuation report in which it

is determined.

Solvency liability adjustment

(1) Except as provided in subsection (2), the solvency liability adjustment is zero.

(2 ) If a solvency valuation includes a calculation of a solvency asset adjustment, and

the solvency asset adjustment includes an amount described in clause 6(1)(a), the

solvency liability adjustment is the amount, positive or negative, by which the

value of the solvency liabilities is adjusted by using a solvency valuation interest

rate that is the average of market interest rates calculated over the same period of

time as the solvency valuation interest rate used to determine the amount described

in clause 6(1)(a).

Calculation of solvency ratio

8A The solvency ratio determined for a pension plan must be calculated in accordance with

the following formula:

solvency ratio = Y ÷ Z

in which

Y = the sum of all of the following:

(

i) the total amount of the solvency assets of the pension plan related to

defined benefits and ancillary benefits,

(ii) the total amount of any letters of credit held in trust for the pension

plan, and

Z = the total amount of the solvency liabilities related to defined benefits and

ancillary benefits of the pension plan.

Determination of solvency deficiency of plan providing defined benefits

(1) The solvency deficiency, as of a particular valuation date, of a pension plan that

provides defined benefits, is determined by the following formula:

solvency deficiency = A - B

in which

A = the sum of all of the following:

(

i) the applicable percentage of the plan’s solvency liabilities set out in

subsection (2),

(ii) the applicable percentage of the plan’s solvency liability adjustment

set out in subsection (2),

(iii) the plan’s previous year credit balance as of the valuation date

B = the sum of the plan’s solvency assets and the solvency asset adjustment as

of the valuation date.

(2) For the value of “A” in subsection (1), the applicable percentage for subclauses (

i) and (ii) is

(a) 100%, for a valuation date that is before December 31, 2019; and

(b) 85%, for a valuation date that is on or after December 31, 2019.

Solvency valuation

(1) A solvency valuation required for a valuation report must determine the existence

of a solvency deficiency by determining the solvency liabilities and solvency assets

of the pension plan.

(2) The solvency liabilities for any of the following pension plans must be determined

on the basis of the benefits structure set out in the plan at the valuation date

without taking into account any possible reduction of the benefits:

(

a) a multi-employer pension plan established under 1 or more collective

agreements or a trust agreement;

(

b) a pension plan that provides defined benefits under which the employer

contributions are limited to a fixed amount set out in a collective agreement.

Calculation of transfer ratio

(1) The transfer ratio determined in a valuation report for a pension plan must be

calculated in accordance with the following formula:

transfer ratio = A ÷ B

in which

A = the amount by which the solvency assets exceed the lesser of

(

i) the previous year credit balance, and

(ii) the sum of all of the following:

(

A) the amount by which the sum of the estimates of the normal

cost determined under clause 53(2)(

a) and the estimates of the

normal cost determined in the report in accordance with clause

52(1)(

c) that are required by clause 53(2)(

b) for the periods

covered by the report exceeds the sum of the estimates of any

employee contributions determined in the report in accordance

with clause 52(1)(

d) that are required by clause 53(2)(

b) for the

same periods,

(

B) the sum of the special payments required to be made under

these regulations during the periods in respect of which the

estimates under paragraph (

A) are given

B = the sum of all of the following:

(

i) the solvency liabilities,

(ii) the liabilities for benefits that were excluded in calculating the

solvency liabilities.

(2) A transfer ratio arises on the valuation date of the report in which it is determined.

Book value substituted for market value in calculations

12 In calculating solvency assets, if there is no market value for an investment of a pension

plan and the investment is issued or guaranteed by a government, the book value of the

investment may be used instead of the market value.

Provision for Adverse Deviations

Definitions and

interpretation for determining provision for adverse deviations

12A

(1) In this

Section and Sections 12B to 12D,

“amount equal to the provision for adverse deviations” is the provision for adverse

deviations, multiplied by the plan’s going concern liabilities as of the valuation

date;

“non-fixed income assets” means assets other than fixed income assets;

“provision for adverse deviations” means the percentage determined under this

Section and Sections 12B to

Section 12D to be the provision for adverse deviations

for the going concern liabilities of a pension plan.

(2) For the purpose of the definition of “amount equal to the provision for adverse

deviations”, the going concern liabilities referred to in the definition may exclude

liabilities in respect of benefits for which an annuity contract has been purchased

from an insurance company.

(3) Despite this

Section and Sections 12B to 12D, the provision for adverse deviations

is deemed to be zero for a pension plan’s liabilities in respect of defined

contribution benefits.

Calculation of provision for adverse deviations

12B

(1) The provision for adverse deviations for a pension plan as at a particular valuation

date is the percentage calculated using the following formula:

provision for adverse deviations = A + B

in which

A = 0.05, or the value specified in subsection

(2) B = the value determined under

Section 12D, based on the pension plan’s

combined target asset allocation for non-fixed income assets determined

under

Section 12C.

(2) The value of “A” in the formula in subsection (1) is zero for a pension plan that is

exempt under subsection 19(6) from the requirement to make special payments to

fund any solvency deficiency in the plan.

Combined target asset allocation for provision for adverse deviations

12C

(1) A pension plan’s combined target asset allocation for non-fixed income assets

must be determined in accordance with the following formula:

combined target asset allocation for non-fixed income assets = 100% - C

in which

C = the combined target asset allocation for fixed income assets, determined

under subsection (2).

(2) The value of “C” in the formula in subsection (1) must be determined in

accordance with the following formula:

[D + (0.5 × E) + (F × G) + (0.5 × F × H)] ÷ (100% -

J) in which

D = subject to subsections (4) and (5), the sum of the plan’s target asset

allocations for each of the investment categories listed in clauses 67(3)(a),

(

c) to (e), (

o) and (p), excluding any portions of the target asset allocations

that are allocated to the assets described in “J”, expressed as a percentage

E = subject to subsection (5), the sum of the plan’s target asset allocations for

each of the investment categories listed in clauses 67(3)(

f) to (

k) and (

q) F = the plan’s target asset allocation for the investment category listed in clause

67(3)(b), expressed as a percentage

G = subject to subsections (4) and (5), the proportion of “F” that is allocated to

the investment categories listed in clauses 67(3)(a), (

c) to (e), (

o) and (p),

expressed as a percentage

H = subject to subsection (5), the proportion of “F” that is allocated to the

investment categories listed in clauses 67(3)(

f) to (

k) and (q), expressed as a

percentage

J = the portion of the plan’s target asset allocation for each investment category

listed in clauses 67(3)(a), (

c) to (

k) and (

o) to (q), expressed as a

percentage, that is allocated to annuity contracts that have been purchased

from an insurance company in respect of benefits.

(3) The target asset allocation to be used in calculating the formula in subsection (2) is

the target asset allocation in the plan’s statement of investment policies and

procedures that is in effect as of the same valuation date used for the calculation of

the provision for adverse deviation under subsection 12B(1).

(4) In determining the values of “D” and “G” in subsection (2), any portion of a target

asset allocation for an investment category listed in clauses 67(3)(d), (

o) and (

p) must not be included unless the plan’s statement of investment policies and

procedures sets out a minimum rating for target asset allocations of fixed income

assets in the investment category, or the portion thereof, that is given by a credit

rating agency recognized by a competent authority.

(5) Any portion of a target asset allocation

(

a) excluded from the value of “D” in accordance with subsection (4) must be

included in the value of “E” in the formula in subsection (2); and

(

b) excluded from the value of “G” in accordance with subsection (4) must be

included in the value of “H” in the formula in subsection (2).

Value of “B” in formula for provision for adverse deviations

12D

(1) Subject to subsection (2), the value of “B” in the formula for provision of adverse

deviations in subsection 12B(1) is determined in accordance with the following

table:

Combined target asset allocation

for non-fixed income assets of plan

Value of “B”

20%

0.01

40%

0.03

50%

0.04

60%

0.05

70%

0.08

80%

0.11

100%

0.17

(2) If a pension plan’s combined target asset allocation for non-fixed income assets

falls between the percentages set out in the table in subsection (1), the value of “B”

must be interpolated linearly from the values set out for “B” in the table.

Jointly Sponsored Pension Plans

Additional criteria for jointly sponsored pension plans

(1) In addition to the criteria specified in subclauses 2(y)(

i) to (iii) of the Act, a

pension plan that, as evidenced by the documents that create and support the plan,

satisfies all the following criteria is a jointly sponsored pension plan:

(

a) the total amount of contributions payable by members under the plan for a

year, excluding any additional voluntary contributions and voluntary

contributions for past service, does not exceed the total amount of employer

contributions for the year;

(

b) the plan does not permit a reduction in the amount of, or the commuted

value of a pension benefit, deferred pension, pension or an ancillary benefit,

in the circumstances described for an amendment of a plan in subsection

24(4)(

a) or (

b) of the Act, except in the circumstances of a wind-up;

(

c) the employers, or any persons or entities who make contributions on behalf

of the employers or represent the employers, and the members of the plan,

or any representatives of the members, are jointly responsible for making all

decisions about the following:

(ii) any amendments to the plan,

(iii) the appointment of the administrator,

(iv) the appointment or selection of persons as members of any body or

entity that is the administrator, other than the employer, an insurance

company or a person appointed by the Superintendent;

(

d) each member’s pension benefits, other than ancillary benefits, and

contributions are directly related to the member’s pensionable earnings.

(2) The documents that create and support a jointly sponsored pension plan must set

out the methods by which the decisions referred to in clause (1)(

c) are to be made.

(3) A pension plan ceases to be a jointly sponsored pension plan as of the date that the

plan is amended so that it no longer meets the criteria for a jointly sponsored

pension plan.

Administrator’s statement about criteria for jointly sponsored pension plan

(1) The administrator of a jointly sponsored pension plan must file a statement in

accordance with the deadline in subsection (2) that

(

a) describes how the plan satisfies the criteria for a jointly sponsored pension

plan, and certifies that the plan satisfies the criteria; and

(

b) certifies the date that the plan became a jointly sponsored pension plan.

(2) A statement required by subsection (1) must be filed no later than the date that the

initial valuation report for the plan is filed or submitted to the Superintendent

(

a) after the pension plan becomes a jointly sponsored pension plan; or

(

b) after the date these regulations come into force, if the pension plan is a

jointly sponsored pension plan on the date these regulations come into force.

(3) The statement required by subsection (1) must be provided to all of the following

persons:

(

a) a participating employer, or any person or entity who makes employer

contributions;

(

b) the members or, if the members are represented by a bargaining agent, the

members’ bargaining agent;

(

c) the former members;

(

d) the retired members.

(4) The statement required by subsection (1) and all of the following information must

be provided by an administrator to the persons referred to in subsection (3), at the

same time the statement referred to in subsection (1) is filed:

(

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

(

b) the administrator’s name and contact information.

(5) No later than 60 days after filing the statement required by subsection (1), an

administrator must file another statement confirming that the statement and all the

information required by subsection (4) was provided to persons as required by this

Section.

(6) The statement required by subsection (1) and all of the information in subsection

(4) must also be provided by an administrator to each person who will be eligible

or is required to become a member of the jointly sponsored pension plan after the

statement is filed and before the plan ceases to be a jointly sponsored pension plan,

and the statement and information must be included as part of the information

required to be given to the person under clause 38(1)(

c) of the Act.

Specified Multi-Employer Pension Plans

Specified multi-employer pension plan class of plans

15 (1 ) A multi-employer pension plan belongs to the class of specified multi-employer

pension plans if all of the following conditions are met:

(

a) the administrator files an election in accordance with

Section 17, declaring

the plan to be a specified multi-employer pension plan;

(

b) the plan meets all the eligibility criteria described in

Section 16.

(2) A multi-employer pension plan ceases to be a specified multi-employer pension

plan on the earliest of the following dates:

(

a) the date that the first valuation report for the plan is filed under

Section 31

or 53 for a valuation date that is after the administrator rescinds the election

in accordance with subsection 17(3);

(

b) the date that the plan is amended so that the plan no longer meets the

continuing eligibility criteria in clauses 16(3)(d), (e), (

f) or (g).

Eligibility criteria for specified multi-employer pension plans

(1) In this Section, “pre-election year” means the fiscal year of a pension plan

immediately before the year in which an election is filed under

Section 17

declaring the plan to be specified multi-employer pension plan.

(2) For the purposes of this Section, a group of employers who are affiliates of each

other within the meaning of the Companies Act is deemed to be 1 employer.

(3) A multi-employer pension plan must meet all of the following eligibility criteria to

become a specified multi-employer pension plan:

(

a) at the end of the pre-election year, no more than 95% of the members of the

plan were employed by 1 employer;

(

b) during the pre-election year,

(

i) at least 15 employers made contributions to the plan, or

(ii) at least 10% of the members of the plan were employed by 2 or more

employers;

(

c) all or substantially all of the employers who make contributions to the plan

are persons who are not exempt from tax under

Part I of the Income Tax Act

(Canada);

(

d) all employers make contributions to the plan under 1 or more collective

agreements;

(

e) the employer contributions to the plan are limited to a fixed amount set out

in 1 or more collective agreements;

(

f) the administrator is authorized by the plan to determine the benefits that are

to be provided under the plan, whether or not a collective agreement

imposes restrictions on the exercise of that authority;

(

g) for a multi-employer pension plan established pursuant to a collective

agreement or a trust agreement as referred to in clause 24(4)(

a) of the Act,

nothing in the documents that create and support the plan prevents the

administrator from reducing the amount of or the commuted value of a

pension benefit, including a pension and a deferred pension, or an ancillary

benefit in the circumstances described in clause 24(4)(

a) of the Act.

Election to be specified multi-employer pension plan

(1) The administrator of a multi-employer pension plan that satisfies the criteria

described in

Section 16 may file an election in writing with the Superintendent

declaring the plan to be a specified multi-employer pension plan.

(2) Only 1 election may be made in respect of a pension plan.

(3) The administrator may rescind the election by filing written notice of the

rescission.

(4 ) A rescission cannot be withdrawn once it is filed.

Notice of election to members

(1) No later than 60 days after filing a specified multi-employer pension plan’s first

valuation report under

Section 31, 52 or 53, the administrator must prepare a

written notice that an election has been made under

Section 17 declaring the plan

to be a specified multi-employer pension plan and give a copy of the notice to all

of the following:

(

a) the Superintendent;

(

b) each member, former member and retired member of the plan;

(

c) each employer who makes contributions under the specified multi-employer

pension plan;

(

d) each bargaining agent who represents members of the plan.

(2) The written notice required by subsection (1) must contain all of the following

information:

(

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

(

b) the administrator’s name and contact information;

(

c) effective on the valuation date, the pension plan’s transfer ratio or, if the

plan is amended to increase pension benefits, including pensions and

deferred pensions, or ancillary benefits, the plan’s transfer ratio before and

after the amendment;

(

d) an explanation of how the security of the pension plan’s pension benefits,

including pensions and deferred pensions, and ancillary benefits might be

affected as a result of the election.

(3) An administrator must also give a copy of the written notice required by subsection

(1) to each person who will be eligible or is required to become a member of the

specified multi-employer pension plan after the election is made but before the

plan ceases to be a specified multi-employer pension plan, and the notice must be

included as part of the information required to be given to the person under clause

38(1)(

c) of the Act.

Exemptions from the Act and Regulations

Exempted pension plans

(1) Pension plans that are established by or under the following legislation are exempt

from the application of the Act and the regulations:

(

a) the Public Service Superannuation Act ;

(

b) the Teachers’ Pension Act ;

(

c) the Members’ Retiring Allowances Act ;

(

d) the Provincial Court Act .

(2 ) The following pension plans are exempt from the application of the Act and the

regulations:

(

a) the Pension Plan for Salaried Employees of Sydney Steel Corporation;

(

b) the Sydney Steel Corporation Non-Contributory Union Pension Plan 1968

(for Members of Locals 1064, 6537 and 6516 of the United Steelworkers of

America and Local 2 of The Bricklayers and Allied Craftworkers);

(

c) the Sydney Steel Corporation Non-Contributory Union Pension Plan 1974

for Members of Local 1675 of the Canadian Union of Public Employees;

(

d) a retirement compensation arrangement as defined in subsection 248(1) of

the federal Income Tax Act ;

(

e) a plan that provides only benefits that exceed the maximum benefit limits

applicable to a pension plan that is registered under the federal Income Tax

Act ;

(

f) a plan that permits only contributions that are in excess of the maximum

contribution limit applicable to a pension plan that is registered under the

federal Income Tax Act .

(3) In subsections (4) and (5), “NewPage pension plans” means all of the following

pension plans:

(

a) Pension Plan for Mill Employees of NewPage Port Hawkesbury Corp.–

Registration No.: 0522722;

(

b) Pension Plan for the Office and Clerical Hourly Employees of NewPage

Port Hawkesbury Corp.—Registration No.: 0401059;

(

c) Pension Plan for the Woodland Hourly Employees of NewPage Port

Hawkesbury Corp.—Registration No.: 0379008;

(

d) Pension Plan for the Salaried Non-Union Employees of NewPage Port

Hawkesbury Corp. and Associated and Affiliated Companies—Registration

No.: 0522714.

(4 ) The circumstances in which the administrator for the NewPage pension plans was

appointed, on October 5, 2011, is a prescribed circumstance for the purpose of

subsection 18(6) of the Act.

(5) The NewPage pension plans are exempt from the application of

Section 108 of the

Act and, for greater certainty, each of the following entities is deemed not to be a

successor employer of any member of 1 of the NewPage pension plans who is or

becomes their employee upon the sale, assignment or disposition of all or part of

the business or all or part of the assets of NewPage Port Hawkesbury Corp. to the

entity:

(

a) Pacific West Commercial Corporation;

(

b) any designate, assignee or subsidiary of Pacific West Commercial

Corporation;

(

c) the limited partnership that ultimately acquires the business and assets of

NewPage Port Hawkesbury Corp.;

(

d) the general partner of the limited partnership referred to in clause (c).

(6) Special payments required to liquidate a solvency deficiency are not required to be

made in relation to a pension plan that is not required under subsection 85(2) to

include a provision that sets out the obligations to make employer contributions in

respect of any solvency deficiency under the plan.

Exemption respecting plans for connected persons

19A

(1) Subject to subsection (3), the Act and these regulations, other than the provisions

set out in subsection (2), do not apply in respect of a pension plan if all of the

members of the plan are connected with the participating employer within the

meaning of

section 8500(3) of the federal Income Tax Regulations .

(2) All of the following provisions apply to a pension plan referred to in subsection

(1):

(

a) provisions of the Act: Sections 2, 33, 37, 42 to 44, 50 to 54, 61, 63 to 72,

74, 80, 85, 87 to 91, 112 and 117;

(

b) provisions of these regulations: Sections 2, 19A, 19B, 46, 47, 49, 50, 82 to

84, 125, 129, 132 to 147, 160, 161, 195 to 252 and

Schedule 3: Nova Scotia

LIRA Addendum to

Schedule 6: Life Income Factor D.

(3) To qualify for the exemption in subsection (1), the administrator of a pension plan

must provide the Superintendent with a certified statement

(

a) attesting to the fact that all of the members of the plan are connected with

the participating employer within the meaning of

section 8500(3) of the

federal Income Tax Regulations , as required by subsection (1); and

(

b) expressing the administrator’s understanding and acknowledgement that the

pension plan will be exempt from the Act and these regulations, with the

exception of the provisions listed in subsection (2).

Notice that exemption no longer applicable

19B The administrator of a pension plan that is exempted under

Section 19A must provide

the Superintendent with written notice no later than 90 days after the date of any change

in circumstance that results in the plan no longer meeting the criteria for exemption

under

Section 19A.

Amendment to avoid revocation of registration under federal Income Tax Act

(1) Subject to subsection (2), subsection 24(1) of the Act respecting void amendments

does not apply to an amendment to a pension plan that is required for the plan to

avoid revocation of its registration under the federal Income Tax Act .

(2) For the exemption in subsection (1) to apply, at least 60 days before an amendment

is effective, the administrator must give the Superintendent written notice of the

amendment together with evidence satisfactory to the Superintendent that the

amendment is required in order to avoid revocation of the plan’s registration under

the federal Income Tax Act .

(3 ) Subject to subsection (4), subsection 87(1) of the Act respecting the prohibition on

refunds of contributions does not apply to a refund of contributions to a member,

former member or retired member if the refund is required in order to avoid

revocation of the plan’s registration under the federal Income Tax Act .

(4) For the exemption in subsection (3) to apply, at least 60 days before a refund is

made, the administrator must give the Superintendent written notice of the refund

together with evidence satisfactory to the Superintendent that the refund is required

in order to avoid revocation of the plan’s registration under the federal Income Tax

Act .

(5 ) Subject to subsection (6), subsection 103(1) of the Act respecting the consent of

the Superintendent to pay surplus to an employer does not apply to a payment to an

employer of money that is surplus if the payment is required in order to avoid

revocation of the plan’s registration under the federal Income Tax Act .

(6 ) For the exemption in subsection (5) to apply, at least 60 days before the payment is

made, the administrator must give the Superintendent written notice of the

payment together with evidence satisfactory to the Superintendent that the payment

is required in order to avoid revocation of the plan’s registration under the federal

Income Tax Act .

Pension plans maintained for employees of 2 or more employers

21 (1 ) A pension plan established before the date these regulations come into force, that is

maintained for the employees of 2 or more employers, and that is neither a multi-employer pension plan nor a pension plan in which all employers are affiliates of

each other, is exempt from

Section 18 of the Act if the plan provides that the

administrative duties of the employer and the administrator as specified in the Act

are totally assumed by a financial institution.

(2) A pension plan referred to in subsection (1) may permit different employers to

establish different prescribed classes of employees for the purposes of membership

in the plan, under

Section 45 of the Act.

Nova Scotia Health Employees Pension Plan not a multi-employer pension plan

22 In accordance with subclause 2(ab)(ii) of the Act, the Nova Scotia Health Employees

Pension Plan is not a multi-employer pension plan.

Nova Scotia Health Employees’ Pension Plan not a jointly sponsored pension plan

22A The Nova Scotia Health Employees’ Pension Plan is exempt from the provisions of the

Act and the regulations respecting jointly sponsored pension plans.

Significant shareholder plans

23 [repealed]

Ensuring no conflict of interest for multi-employer pension plan

(1) The requirement in subsection 33(3) of the Act for an administrator to ensure that

there is no conflict of interest does not apply when an administrator of a multi-employer pension plan enters into a transaction with a trade union, council of trade

unions, employer, employers’ association or an employee benefit trust fund in

which a member of the board of trustees or committee holds any office or position,

if the transaction meets all of the following conditions:

(

a) it is only for purchase or lease of office space, for legal, accounting or other

services, materials or equipment necessary for the administration and

operation of the plan, and the compensation paid is reasonable in the

circumstances;

(

b) it is permitted under the documents that create and support the plan or any

amendments to those documents.

(2) The requirement in subsection 33(3) of the Act for an administrator to ensure that

there is no conflict of interest does not apply when an administrator of a multi-employer pension plan or a member of a pension committee or board that

administers a multi-employer pension plan enters into a transaction, other than a

transaction described in subsection (1), related to the administration of the plan or

pension fund that meets all of the following conditions:

(

a) it is in the interest of the members, former members and retired members;

(

b) it is protective of the rights of the members, former members and retired

members;

(

c) it is permitted under the documents that create and support the plan;

(

d) it is disclosed to the members, former members and retired members before

it is entered into;

(

e) it confers no direct or indirect personal benefit on the administrator or

member of the pension committee or board of trustees.

Notices and summaries of contributions not required for certain multi-employer pension

plans

25 The following provisions of the Act do not apply to a multi-employer pension plan

established under a collective agreement, a trust agreement, a statute or a municipal

bylaw:

(a) subsection 78(2) of the Act, respecting notice to the Superintendent that

contributions have not been paid when due;

(

b) Section 79 of the Act, respecting the provision to the prescribed persons of a

summary of contributions in accordance with

Section 98.

Exemption from registration or audit under reciprocal agreement

(1) If a reciprocal agreement under

Section 8 of the Act between the Minister and

authorized representatives of 1 or more designated jurisdictions provides that a

pension plan with the majority of members employed in a designated jurisdiction is

exempt from registration or audit under the Act, then a pension plan that meets

those requirements is exempt from registration or audit under the Act.

(2 ) For the purpose of determining where the majority of the members in subsection

(1) is employed, only those members who are employed in the Province or in any

of the designated jurisdictions are counted.

Designated Jurisdictions

Designated jurisdictions prescribed

(1) For the purposes of the definition of “designated jurisdiction” in

Section 2 of the

Act, each of the following jurisdictions in Canada is prescribed as a designated

jurisdiction in which there is in force legislation substantially similar to the Act:

(

a) Canada, subject to subsection (2);

(

b) the Province of Alberta;

(

c) the Province of Quebec;

(

d) the Northwest Territories;

(

e) the Province of Saskatchewan;

(

f) the Province of Manitoba;

(

g) the Province of Ontario;

(

h) the Province of Newfoundland and Labrador;

(

i) the Province of New Brunswick;

(

j) the Province of British Columbia;

(

k) the Yukon Territory;

(

l) the Territory of Nunavut.

(2) The status of Canada as a designated jurisdiction applies in respect of “included

employment” as defined in subsection 2(1) of the Pension Benefits Standards Act,

1985 (Canada) but not in respect of any other employment in Canada.

Effective dates of multi-jurisdictional pension plan agreements

27A

(1) The agreement with designated jurisdictions under subsection 9(1) of the Act

entitled “2016 Agreement Respecting Multi-Jurisdictional Pension Plans”, signed

May 19, 2016, and effective in the Province on July 1, 2016, ceases to have effect

in the Province as of June 30, 2020, except in respect of the matters referred to in

Section 28 of the agreement referred to in subsection (2).

(2) The agreement with designated jurisdictions under subsection 9(1) of the Act

entitled “2020 Agreement Respecting Multi-Jurisdictional Pension Plans”, signed

by the Minister on May 5, 2020, comes into effect in the Province on July 1, 2020.

(3) The agreement with designated jurisdictions under subsection 9(1) of the Act

entitled “2023 Agreement Amending the 2020 Agreement Respecting

Multi-Jurisdictional Pension Plans”, signed by the Minister on February 28, 2023,

comes into effect in the Province on July 1, 2023.

Part 2: Pension Plan Administration

Registration of Pension Plans and Amendments, and Filing of Agreements

Application for registration of pension plan

(1) An application for registration of a pension plan under

Section 19 of the Act must

be made no later than 90 days after the plan is established.

(2) An application for registration of a pension plan must be accompanied by the

prescribed fee.

(3) All of the following are the documents required to be filed with an application for

registration of a pension plan under clause 19(3)(

b) of the Act:

(

a) certified copies of all the documents that create and support the pension

plan;

(

b) certified copies of all the documents that create and support the pension

fund;

(

c) a certified copy of any reciprocal transfer agreement related to the pension

plan;

(

d) a certified copy of the explanations and other information provided under

subsection 38(1) of the Act;

(

e) for a plan that provides defined benefits, a valuation report.

(4) The documents that create and support a pension plan must set out all of the

following information:

(

a) the method of appointment and the details of the appointment of the

administrator;

(

b) the conditions of membership in the plan;

(

c) the benefits and rights that are to accrue upon all of the following:

(

i) termination of employment,

(ii) termination of membership,

(iii) retirement,

(iv) death;

(

d) the normal retirement age;

(

e) the requirements for entitlement under the plan to any pension benefit or

ancillary benefit or optional benefit;

(

f) the contributions or the method of calculating the contributions required by

the plan;

(

g) the method of determining benefits payable under the plan;

(

h) the method of calculating interest to be credited to contributions under the

plan;

(

i) the mechanism for payment of the cost of administration of the plan and

pension fund;

(

j) the mechanism for establishing and maintaining the pension fund;

(

k) how surplus is to be treated while the plan continues, and on wind-up of the

plan in whole or in part;

(

l) the administrator’s obligation to provide members with information and

documents required to be disclosed under the Act and the regulations, and

details concerning the obligation;

(

m) the method of allocating the plan’s assets on wind-up;

(

n) the particulars of any predecessor pension plan that members may be

entitled to pension benefits under;

(

o) the persons who may amend the plan and how the amendments must be

made.

(5) In addition to the information required by subsection (4), the documents that create

and support a multi-employer pension plan must specify all of the following

information:

(

a) for a plan under a collective agreement or trust agreement, the powers and

duties of the board of trustees that is the administrator;

(

b) any consequences of a participating employer withdrawing from the plan on

the funding and payment of a pension benefit, deferred pension or pension,

of a member, former member, retired member or other person affected by

the withdrawal.

(6) In addition to the information in subsection (4), the documents that create and

support a jointly sponsored pension plan must set out all of the following

information:

(

a) the employee contributions or the method of calculating the employee

contributions required, including any obligations in respect of any going

concern unfunded liability and solvency deficiency;

(

b) the employer contributions or the method of calculating the employer

contributions required, including any obligations in respect of any going

concern unfunded liability and solvency deficiency;

(

c) any consequences of a participating employer withdrawing from the plan on

the funding and payment of pension benefits, deferred pensions and

pensions of a member, former member, retired member or other person

affected by the withdrawal;

amendments to the plan will be made;

(

e) how decisions about appointing the administrator or appointing or selecting

persons as members of the body or entity that administers the plan will be

made.

Application for registration of amendment to pension plan

(1) An application required by subsection 22(1) of the Act for registration of an

amendment to a pension plan must be filed no later than 60 days after the date that

the plan or documents are amended.

(2) A certified copy of a document that changes the documents that create and support

a pension plan or pension fund that is required to be filed by subsection 22(4) of

the Act must be filed no later than 60 days after the date the document is certified.

Notice and explanation of pension plan amendment

(1) The notice required by subsection 39(1) of the Act must be in the form of a written

statement that includes all of the following information:

(

a) notice that the amendment has been made;

(

b) a

summary and explanation of the amendment;

(

c) the administrator’s contact information.

(2) In addition to the persons listed in subsection 39(1) of the Act, a written notice in

accordance with subsection (1) must also be given to any person who is, or will be

affected by the amendment.

(3) Except as provided in subsections (4) and (5), written notice under this

Section

must be given no later than 45 days before the date that the amendment is filed.

(4) In accordance with subsection 39(4) of the Act, a written notice under this

Section

may be given after the amendment is filed in any of the following circumstances:

(

a) the amendment is of a technical nature;

(

b) the amendment will not substantially affect the pension benefits, rights or

obligations of a member, former member or retired member accruing

subsequent to the effective date of the amendment;

(

c) the amendment will not adversely affect any person entitled to payments

from the pension fund.

(5) A notice given under subsection (4) after the amendment is filed must be given no

later than 6 months after registration of the amendment.

Valuation report on amendment to pension plan

(1) Except as provided in subsection (2), for an amendment to a pension plan that

reduces or increases contributions or creates or increases a going concern unfunded

liability or solvency deficiency, an administrator must file all of the following:

(

a) a valuation report containing any of the information required for a valuation

report under

Section 53 that might be affected by the amendment;

(

b) a description in writing of any lump sum benefit improvement contribution

made to the plan.

(2) Subsection (1) does not apply to any of the following amendments:

(

a) an amendment that is required by law and confers an improvement in the

benefits provided under the pension plan;

(

b) an amendment to a pension plan that provides only defined contribution

benefits.

(3) An administrator must file the report and any certificate required by subsection

(1) no later than 6 months after the date the amendment is required to be submitted to

the Superintendent for registration.

Amendments that are permitted only if cost of amendments paid into pension fund

(1) Except as provided in subsection (3), for a valuation report required by clause

31(1)(

a) with a valuation date before December 31, 2019, unless the cost of an

amendment is fully paid to the pension fund at the time the amendment is made, a

pension plan must not be amended to create or increase a solvency deficiency

under the plan during any of the following periods:

(

a) the first 5 years of the period for liquidating a solvency deficiency under

subsection 105(1), as that provision read immediately before April 1, 2020;

(

b) the first 10 years of the period for liquidating a solvency deficiency under

subsection 105(2) or 107(3) as those provisions read immediately before

April 1, 2020.

(2) Except as provided in subsection (3), a pension plan referred to in clauses 85(2)(a),

(

b) and (

d) to (

j) must not be amended to create or increase a solvency deficiency

under the plan without the cost of the amount of the solvency deficiency created or

increased by the amendment being fully paid to the pension fund at the time the

amendment is made.

(3) Subsections (1) and (2) do not apply to an amendment that is required by law,

including an amendment required as a result of a judicial decision.

Amendment to specified multi-employer pension plan requiring liquidation of going

concern unfunded liability

33 If a specified multi-employer pension plan is amended to increase pension benefits,

deferred pensions, pensions or ancillary benefits and the amendment results in the plan’s

transfer ratio being lower than 0.8 or the ratio of the market value of the plan assets to

the going concern liabilities being lower than 0.9, then any increase in the going concern

unfunded liability resulting from the amendment must be liquidated, with interest at the

going concern valuation interest rate, by equal monthly instalments over a period of 5

years beginning on the valuation date of the valuation report that determined the increase

in the going concern unfunded liability.

Filing of reciprocal transfer agreements

34 An administrator must file a certified copy of any reciprocal transfer agreement entered

into on or after the date these regulations come into force, no later than 60 days after the

execution of the agreement.

Requirements for reciprocal transfer agreements

35 Pursuant to subsection 32(2) of the Act, a reciprocal transfer agreement that is entered

into, or under which money or benefits is transferred, must not contain any provision

relating to a benefit that a pension plan is prohibited by the Act from containing.

36 [repealed]

Advisory Committees

Notice and information about establishing advisory committee

(1) All of the following information is prescribed as the information to be distributed

by an administrator to members and retired members along with the notice of

intent to establish an advisory committee received in accordance with subsection

36(6) of the Act:

(

a) that a vote for the establishment of an advisory committee will be held and

that the members and retired members will be given an opportunity to

participate in the vote;

(

b) that the determination as to whether an advisory committee will be

established will be made by a majority of the members and retired members

who participate in the vote;

(

c) the date that the vote will be held for the establishment of the advisory

committee;

(

d) the means by which the vote will be held;

(

e) if the vote is to be held in person, the location and the time of the meeting

for purposes of holding the vote;

(

f) a statement that the advisory committee is required, under subsection 36(5)

of the Act, to do all of the following:

(

i) monitor the administration of the pension plan,

(ii) make recommendations to the administrator respecting the

administration of the pension plan,

(iii) promote awareness and understanding of the pension plan.

(2) The notice and information under subsection (1) must be distributed no later than

30 days after the date the notice under subsection 36(6) of the Act is received by

the administrator.

(3) The notice and information under subsection (1) must be in writing and must be

given by 1 or more of the following means:

(

a) by mail, if sent to the most recent address of the recipient in the

administrator’s records for the pension plan;

(

b) by e-mail, if the recipient has requested that information about the pension

plan be sent to a specified e-mail address;

(

c) for members who regularly work at the employer’s workplace, by posting it

in 1 or more areas of the workplace that are regularly accessed by the

members.

(4) The notice and information under subsection (1) must be given to any members

who are represented by a trade union or trade unions by giving it to the trade union

or trade unions instead of to the members.

(5) The notice and information under subsection (1) may be given to any retired

members who are members of an association of retired members of the plan by

giving it to the executive of the association instead of, or in addition to, giving it to

those retired members, if the administrator receives a written request from the

association for it to be provided to them.

Voting on establishing advisory committee

(1) The date set for a vote on whether to establish an advisory committee must be a

date that is no earlier than 30 days after the date the notice and information is

provided under subsection 37(1).

(2) A vote on whether to establish an advisory committee must be conducted by secret

ballot through any combination of the following methods:

(

a) in person at a meeting of members and retired members and other

beneficiaries;

(

b) electronically;

(

c) by mail;

(

d) by casting ballots at a specified location.

(3) Making arrangements for a suitable location for an in-person meeting to conduct a

vote, if requested to do so by the persons who provided written notice to the

administrator of their intent to establish an advisory committee, is such other

assistance that must be provided by an administrator under clause 36(6)(

b) of the

Act.

Notice concerning result of vote to establish advisory committee

(1) Any persons referred to in subsection 36(6) of the Act who have provided notice to

an administrator of their intent to establish an advisory committee under that

subsection must provide notice in writing to the administrator of the result of the

vote as soon as practicable following the vote.

(2) No later than 5 days after the date the notice referred to in subsection (1) is

received, an administrator must provide all of the following information, in

writing, to the members, former members and retired members:

(

a) the result of the vote held on whether to establish an advisory committee;

(

b) if the vote resulted in the establishment of an advisory committee,

(

i) the rules governing the composition of the advisory committee as set

out in subsection 36(3) of the Act,

(ii) the number of and names of the classes of employees that are

represented in the pension plan, and the number of employees in each

class,

(iii) the nomination entitlements in subsection 40(1),

(iv) how and by when, in accordance with subsection 40(2), each class of

employees and the retired members and former members may

nominate representatives to the advisory committee,

(

v) the voting procedures in

Section 41.

(3) The information in subsection (2) may be provided by 1 or more of the means set

out in clauses 37(3)(

a) to (c).

Nominating advisory committee representatives

(1) To meet the requirements for composition of the advisory committee in subsection

36(3) and (4) of the Act, each member of the following groups may nominate the

specified number of persons from their group to represent them on the advisory

committee:

(

a) for a class of employees represented in the pension plan, 1 or 2 members of

the class;

(

b) for retired members of the pension plan, 1 or 2 retired members;

(

c) for former members of the pension plan, 1 former member.

(2) Nominations must be provided in writing to an administrator no later than 10 days

after the results of the vote to establish an advisory committee is received from the

administrator under subsection 39(2).

Voting on advisory committee representatives

(1) No later than 10 days after the deadline for nominations in subsection 40(2), the

administrator must provide an opportunity to each member, former member and

retired member, to vote by secret ballot on the nominees for their representative or

representatives on the advisory committee.

(2) An administrator must establish the procedure for conducting the vote by secret

ballot.

Notice of results of vote on advisory committee representatives

42 No later than 5 days after a vote on nominees under

Section 41, an administrator must

give the members, former members and retired members of the plan the results of the

vote in writing by 1 or more of the means set out in clauses 37(3)(

a) to (c).

Term of office for advisory committee

(1) An advisory committee member’s term of office is as established by the committee

under its rules of procedure, governance and operations, up to a maximum period

of 3 years.

(2) Despite subsection (1), the term of office for each initial representative on an

advisory committee is 3 years.

(3) A member of an advisory committee continues to hold office after the end of their

term until they are reappointed or a successor is appointed.

(4) A vacancy on an advisory committee that is for an unexpired term of 120 days or

more must be filled not later than 120 days after the vacancy arises.

Participating on advisory committee

(1) A member of an advisory committee is entitled to take time off from their regular

work duties, without loss of pay or other benefits, to carry out their duties on the

advisory committee.

(2) The costs payable out of the pension fund under subsection 36(10) of the Act are

all of the following costs:

(

a) the reasonable costs associated with renting a facility for a meeting held for

any of the following purposes:

(

i) to establish the advisory committee,

(ii) to vote for representatives on the advisory committee,

(iii) meetings of the advisory committee;

(

b) the reasonable costs associated with a committee member attending an

advisory committee meeting and other expenses reasonably incurred by a

committee member in carrying out their duties as a committee member;

(

c) copying costs for any records provided under subsection 36(8) of the Act,

subject to an administrator’s right to limit any of the following:

(

i) the number of copies provided to the advisory committee,

(ii) how many times copies of a particular record will be provided

without charge during a calendar year.

Advisory committee procedure, governance and operations

(1) An advisory committee must establish written rules of procedure, governance and

operations for exercising its powers and discharging its duties under the Act and

these regulations.

(2) An advisory committee’s rules of procedure, governance and operations must

include provisions for all of the following:

(

a) electing or appointing a chair, secretary and any other officers that the

committee considers advisable;

(

b) the powers and duties of the committee’s officers;

(

c) appointing a representative to the committee to replace a representative who

is unable or no longer wishes to act or whose term of office is about to

expire or has expired;

(

d) the means by which

(

i) the administration of the pension plan must be monitored,

(ii) recommendations to the administrator respecting the administration

of the pension plan must be made, and

(iii) awareness and understanding of the pension plan must be promoted;

(

e) respecting meetings of the committee, including all of the following:

(

i) the means by which, and time periods within which, notice of

meetings must be provided,

(ii) requiring meetings at regular intervals, and setting the dates, times

and places of those meetings,

(iii) establishing procedures for changing the date, time or place of a

regular meeting and governing the notice to be given of the change,

(iv) establishing procedures for calling and holding special meetings of

the committee,

(

v) governing the conduct and procedures of meetings, including the

voting and quorum requirements for the transaction of business;

(

f) establishing a communications strategy for regular communications with the

members, former members and retired members of the plan, including the

timing and means by which minutes of the meetings of the advisory

committee must be provided;

(

g) requiring the rules to be reviewed at least once every 3 years.

(3) An advisory committee’s rules of procedure and governance may include any other

rules that the advisory committee considers necessary or advisable for the

fulfilment of its powers and duties under the Act and these regulations.

(4) An advisory committee may require the administrator to provide notice to the

representatives of the committee of any meeting of the committee, in the form and

within the period directed by the committee.

(5) An administrator must be given reasonable notice of any meeting required between

the administrator and the committee under clause 36(7)(

a) of the Act.

Appointment of Administrator

Superintendent’s power to appoint administrator

45A

(1) For the purposes of subsection 18(6) of the Act, all of the following circumstances

are prescribed as circumstances in which the Superintendent may appoint an

administrator for a pension plan or remove the administrator for a pension plan and

appoint a replacement administrator:

(

a) the pension plan is to be wound up in whole or in part and does not have an

administrator;

(

b) the pension plan is to be wound up in whole or in part and has an

administrator who fails to act;

(

c) as a result of an application under the Companies’ Creditors Arrangement

Act (Canada), a court has made an order staying all proceedings taken

against the employer who is required to make contributions under the

pension plan;

(

d) a proposal, within the meaning of the Bankruptcy and Insolvency Act

(Canada), has been filed with an official receiver under that Act with respect

to the employer who is required to make contributions under the pension

plan;

(

e) a receiver or receiver-manager has been appointed in respect of some or all

of the property of the employer who is required to make contributions under

the pension plan.

(2) For the purposes of subsection 18(7) of the Act, all of the circumstances set out in

subsection (1) are prescribed as the circumstances in which the Superintendent

may act as administrator of a pension plan or remove the administrator for a

pension plan and act as administrator.

Pension Fund Investment and Administration

Pension fund trustee

(1) Subject to subsection (2), all of the following are prescribed for the purposes of

subsection 33(5) of the Act as persons who may be a trustee of a pension fund:

(

a) a government;

(

b) an insurance company;

(

c) a trust in Canada governed by a written trust agreement under which the

trustees are

(

i) a trust corporation registered under the Trust and Loan Companies

Act ,

(ii) 3 or more individuals, at least 3 of whom reside in Canada and at

least 1 of whom is independent of any employer contributing to the

pension fund, to the extent the individual is not any of the following:

(

A) an individual connected with the employer within the meaning

section 8500(3) of the federal Income Tax Regulations ,

(

B) a partner, proprietor, director, officer, employee of the

employer or an employee of an affiliate of the employer, or

(iii) a corporate pension society established under the Pension Fund

Societies Act (Canada);

(

d) an entity under the Government Annuities Act (Canada);

(

e) a board, agency, commission or corporation made responsible by

an Act of

the Legislature for the administration of the pension fund.

(2) Any of the persons referred to in subsection (1) may be a trustee in combination

with another person referred to in that subsection.

Definitions for Sections 47 to 50—incorporation of federal investment regulations

(1) In this

Section and Sections 48 to 50,

“federal investment regulations” means

Schedule III to the Pension Benefits

Standards Regulations, 1985 made under the Pension Benefits Standards Act

(Canada);

(2) In this

Section and Sections 48 to 50, a reference in the federal investment

regulations to

(

a) any of the following words or expressions is deemed to be a reference to the

same word or expression as defined in the Act:

(i) “spouse”,

(ii) “Superintendent”;

(b) “common-law partner” is deemed to be a reference to “spouse”, as defined

in the applicable subclause of clause 2(xa) of the Act;

(

c) any of the following words or expressions is deemed to be a reference to the

same word or expression as defined in the Pension Benefits Standards

Regulations, 1985 made under the Pension Benefits Standards Act

(Canada):

(

i) Canadian resource property,

(ii) investment fund,

(iii) marketplace,

(iv) member choice account,

(

v) segregated fund.

Investment of plan assets must be in accordance with regulations and federal investment

regulations

47A Despite the provisions of any pension plan or any instrument governing a plan, the assets

of a plan must be invested and the investments must be made in accordance with these

regulations and the federal investment regulations.

Statement of investment policies and procedures

(1) Before the date a pension plan is registered, an administrator must establish a

written statement of investment policies and procedures that meets the

requirements of this

Section and the federal investment regulations in respect of the

pension plan’s portfolio of investments and loans, other than those relating to any

member choice account, as that term is defined in the Pension Benefits Standards

Regulations, 1985 , made under the Pension Benefits Standards Act (Canada).

(2 ) The written statement of investment policies and procedures required by subsection

(1) must take into account all factors that may affect the funding and solvency of

the pension plan and the ability of the plan to meet its financial obligations,

including all of the following factors:

(

a) categories of investments and loans, including derivatives, options and

futures;

(

b) diversification of the investment portfolio;

(

c) asset mix and rate of return expectations;

(

d) liquidity of investments;

(

e) the lending of cash or securities;

(

f) the retention or delegation of voting rights acquired through investments;

(

g) the method of, and the basis for, the valuation of investments that are not

regularly traded at a marketplace;

(

h) related party transactions permitted under the federal investment regulations

and the criteria to be used to establish whether a transaction is nominal or

immaterial to the plan.

(3 ) The statement of investment policies and procedures required by this

Section must

include a description of the factors referred to in subsection (2) and the relationship

of those factors to the investment policies and procedures.

(4 ) An administrator must provide the statement of investment policies and procedures

required by subsection (1) to all of the following by the specified dates:

(

a) any pension committee that has been established, no later than 60 days after

the later of all of the following dates:

(

i) the date on which the statement is established by the administrator

under subsection (1),

(ii) the date the pension committee is established;

(

b) if a plan is a defined benefit plan, the actuary of the plan on or before the

later of all of the following dates:

(

i) the date that is 60 days after the date the statement is established, by

the administrator under subsection (1),

(ii) the date the actuary is appointed.

(5) An administrator must review and confirm or amend the statement of investment

policies and procedures required by subsection (1) at least once in each fiscal year

of a pension plan.

(6 ) A copy of each amendment to the statement of investment policies and procedures

required by subsection (1) must be provided, no later than 60 days after the

statement is amended, to all of the following:

(

a) any pension committee that has been established for the pension plan;

(

b) for a pension plan that provides defined benefits, to the actuary of the plan.

Record of investments

(1) An administrator must maintain a current record of investments for the pension

plan that clearly identifies all of the following:

(

a) each investment held on behalf of the pension plan;

(

b) the name in which each investment is made;

(

c) the name in which each investment is registered, if the investment is capable

of being registered.

(2 ) A pension plan must provide that the money in the pension fund is to be invested

in accordance with the federal investment regulations and invested in 1 of the

following names:

(

a) a name that clearly indicates that the investment is held in trust for the plan

and, if the investment is capable of being registered, registered in that name;

(

b) the name of a financial institution or its nominee, in accordance with a

custodial agreement or trust agreement entered into on behalf of the plan

with the financial institution, that clearly indicates that the investment is

held for the pension plan;

(

c) the name of The Canadian Depository for Securities Limited or its nominee,

in accordance with a custodial agreement or trust agreement entered into on

behalf of the plan with a financial institution, that clearly indicates that the

investment is held for the plan.

(3 ) In subsection (2), “custodial agreement” means an agreement that meets all of the

following criteria:

(

a) it provides that an investment made or held on behalf of a pension plan

under the agreement

(

i) constitutes part of the plan’s pension fund, and

(ii) will not at any time constitute an asset of the custodian or nominee;

(

b) it provides that records will be maintained by the custodian, and will be

sufficient to allow the ownership of any investment to be traced to the

pension plan at any time.

Designated jurisdictions—alternate corresponding provisions

50 If any provisions of the federal investment regulations differ from the corresponding

provisions under the laws of a designated jurisdiction, the Superintendent may apply, in

whole or in part, those corresponding provisions to a plan that has members in that

designated jurisdiction instead of the provisions of the federal investment regulations.

Reporting to the Superintendent

Pension plan that provides only defined contribution benefits exempted

51 Sections 52 to 64 do not apply, and a valuation report is not required, for a pension plan

that provides only defined contribution benefits.

Initial valuation reports

(1) Except as provided in subsection (4), no later than 90 days after the date that a

pension plan is established, the administrator must submit to the Superintendent an

initial valuation report that sets out all of the following for the plan on the basis of

a going concern valuation:

(

a) the normal cost for the first year the plan is registered;

(

b) the rule for computing the normal cost for the following years up to the

valuation date of the next valuation report;

(

c) an estimate of the normal cost for the following years up to the valuation

date of the next valuation report determined in accordance with the rule

referred to in clause (b);

(

d) the estimated aggregate of any employee contributions for each year

following the valuation report up to the date of the next valuation report;

(

e) the amount of any going concern unfunded liability determined for the plan;

(

f) the special payments required to liquidate any going concern unfunded

liability identified under clause (e), in accordance with

Section 99;

(fa) the provision for adverse deviations;

(

g) if the plan provides for an escalated adjustment, a statement that the

escalated adjustment has been pre-funded on a going concern basis.

(2) An initial valuation report under this

Section must also include all of the following

information about the pension plan, on the basis of a solvency valuation:

(

a) whether the plan has a solvency deficiency;

(

b) if there is a solvency deficiency,

(

i) the amount of the solvency deficiency, and

(ii) the special payments required to liquidate the solvency deficiency in

accordance with

Section 99;

(c) [repealed]

(

d) whether the plan is exempt, in accordance with subsection 19(6), from the

requirement to make special payments to liquidate the solvency deficiency;

(

e) if the plan provides for an escalated adjustment, a statement that the

escalated adjustment has been pre-funded on a solvency basis;

(

f) whether the transfer ratio is less than 1;

(

g) if the transfer ratio is less than 1, the transfer ratio.

(3) An initial valuation report for a designated plan must also contain a maximum

funding valuation.

(4) An initial valuation report may certify the adequacy of premiums necessary to

provide for the payment of all benefits under an insured pension plan that is funded

by level premiums extending not beyond the retirement age for each individual

member, instead of the matters required by subsection (1).

Valuation reports at regular intervals

(1) An administrator must cause a pension plan to be reviewed and a valuation report

prepared and certified at regular intervals, beginning with a valuation date that is

no later than 3 years after the date the plan is established, and then at intervals of

no longer than 3 years, subject to any provision of these regulations that requires an

earlier report.

(2) A valuation report under this

Section must set out all of the following for the

pension plan, on the basis of a going concern valuation:

(

a) the normal cost in the year following the valuation date of the report;

(

b) all of the information required in clauses 52(1)(

b) to (

g) for an initial

valuation report;

(

c) for a report with a valuation date before December 31, 2019, any special

payments remaining to be paid after the valuation date with respect to a

going concern unfunded liability determined in a previous valuation report;

(

d) for a report with a valuation date on or after December 31, 2019, any special

payments remaining to be paid after the valuation date with respect to an

amendment made on or after December 31, 2019, that created or increased

the going concern unfunded liability;

(

e) the present value of any future special payments remaining to be paid after

the valuation date as established in a previous valuation report;

(

f) for a report with a valuation date before December 31, 2019, the actuarial

gain or actuarial loss in the plan, including,

(

i) if there is an actuarial loss, the special payments that will liquidate

any increase in a going concern unfunded liability resulting from the

loss over a term that does not exceed

(A) 15 years, for a plan other than a specified multi-employer

pension plan, or

(B) 10 years, for a specified multi-employer pension plan,

(ii) if there is an actuarial gain, any intended application of the gain in

accordance with

Section 96;

(

g) for a report with a valuation date on or after December 31, 2019, the going

concern excess or going concern unfunded liability of the plan, including,

(

i) if there is a going concern unfunded liability, the special payments

under

Section 99 that will liquidate the going concern unfunded

liability over a term that does not exceed 10 years, and

(ii) if there is a going concern excess, any intended application of the

excess in accordance with

Section 96A;

(

h) if there is a surplus on a going concern basis, any intended application of the

surplus in accordance with

Section 95.

(3 ) A valuation report under this

Section must also set out all of the following for the

pension plan, on the basis of a solvency valuation:

(

a) all the information required in clauses 52(2)(

a) to (d), (

f) and (

g) for an

initial valuation report;

(aa) if the plan provides for an escalated adjustment,

(

i) a statement that the escalated adjustment has been pre-funded on a

solvency basis in relation to the pension benefits that have accrued,

or will accrue under the plan on or after June 1, 2015, in accordance

with

Section 91, and

(ii) in relation to the pension benefits accruing under the plan before June

1, 2015, w