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1998/99 Legislative Session: 3rd Session, 36th Parliament

THIRD READING

The following electronic version is for informational

purposes only.

The printed version remains the official version.

Certified correct as passed Third Reading on the 12th day of July, 1999

Ian D. Izard, Law Clerk

HONOURABLE DALE LOVICK

MINISTER OF LABOUR

BILL 58 – 1999

PENSION BENEFITS STANDARDS

AMENDMENT ACT, 1999

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the

Province of British Columbia, enacts as follows:

Section 1 (1) of the Pension Benefits Standards Act, R.S.B.C. 1996, c. 352, is

amended

(

a) in the definition of "additional voluntary contributions" by

striking out "compounded interest" and substituting "compound

interest" and by adding "optional defined benefit contributions

or" after "does not include" ,

(

b) in paragraph (

a) of the definition of "commuted value" by

striking out "adequate and appropriate and in accordance with generally

accepted actuarial principles," and substituting "appropriate and

in accordance with accepted actuarial practice," ,

(

c) in paragraph (

b) of the definition of "employment" by

striking out "and, despite paragraph (a), if the superintendent gives

approval under

section 26 (2) in respect of a multi-employer plan,",

(

d) by repealing the definition of "spouse" and substituting the

following:

"spouse" means, in relation to another person,

(

a) a person who at the relevant time was married to that other

person and not living separate and apart from that other person for the 2 year period

immediately preceding the relevant time, or

(

b) if paragraph (

a) does not apply,

(

i) a person who at the relevant time lived with that other person

as husband and wife for the 2 year period immediately preceding the relevant time, or

(ii) a person of the same gender who at the relevant time lived in

a marriage-like relationship with that other person for the 2 year period immediately

preceding the relevant time; ,

(

e) in paragraph (

c) of the definition of "termination of

membership" by striking out "any other plan or if the superintendent

gives approval under

section 26 (2) in respect of a multi-employer plan," and

substituting "any other plan," ,

(

f) in the definition of "termination of membership" by striking

out "under

section 33 (3) or (4);" and substituting "under

section 33 (3) to (5) or 40;" ,

(

g) in the definition of "years of continuous employment" by

striking out "subject to

section 26 (2)," ,

(

h) in paragraph (

b) of the definition of " years of continuous

employment" by adding "a member of" after "in

relation to" ,

(

i) by adding the following

definitions:

"collective agreement" has the same meaning as in

section 1 (1) of the Labour Relations Code;

"optional ancillary benefits" means enhanced

benefits under a defined benefit provision in a pension plan that are

(

a) elected by a member, former member or surviving spouse, and

(

b) funded either fully or partially through optional ancillary

contributions provided by the member;

"optional ancillary contributions" means

contributions made by a member to a pension plan, for conversion to optional ancillary

benefits, that are in addition to those contributions required to attain a pension and

includes compound interest on those contributions;

"optional defined benefit contributions" means

contributions made by a member to a pension plan to provide benefits under a defined

benefit provision that are in addition to those contributions required to attain a pension

and includes

(

a) optional ancillary contributions,

(

b) contributions to purchase benefits related to past service,

(

c) contributions to increase pensionable service in a

multi-employer plan, and

(

d) compound interest on contributions referred to in paragraphs

(

a) to (c); ,

(

j) by adding the following definition:

"early retirement pension" means a pension that

(

a) is received before pensionable age, and

(

b) has an actuarial present value which is greater than the

minimum actuarial present value of a pension as required by

section 38 (8); , and

(

k) by adding the following definition:

"years of continuous plan membership" means,

(

a) in relation to a member of a multi-employer plan, fiscal years

of the plan in each of which the person is a member of the plan and completes at least 350

hours of employment in each of those years, and

(

b) in relation to a member of any plan other than a

multi-employer plan, years of plan membership for a continuous period of time and without

a cessation of employment but disregarding periods of temporary interruption of employment

or service, or periods of layoff from employment, that do not exceed 26 weeks,

and includes periods of membership in all plans to which the

employer was required to make contributions.

Section 7 (2) is amended by striking out "collective agreement

within the meaning of the Labour Relations Code ," and substituting "collective

agreement," .

Section 8 is amended

(

a) by repealing subsection (5) and substituting the following:

(5) In the administration of a pension plan, the administrator

must

(

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

members and former members and any other persons to whom a fiduciary duty is owed, and

(

b) exercise the care, diligence and skill that a person of

ordinary prudence would exercise when dealing with the property of another person. ,

and

(

b) by adding the following subsections:

(7) If an administrator employs an agent to carry out some of the

duties of the administrator, the administrator must be satisfied of the agent's

qualifications to perform the duties for which the agent is employed, and must carry out

such supervision of the agent as is prudent and reasonable.

(8) An agent or employee of an administrator is subject to the

standards that apply to the administrator under this section.

(9) An administrator or, if the administrator is a board of

trustees, a member of the board who is the administrator, must not knowingly permit the

administrator's interests to conflict with the administrator's duties and powers in

respect of the pension plan.

(10) For the purpose of subsection (9), entitlement to a pension

or other benefit under the plan does not constitute a conflict of interest.

Section 9 is amended

(

a) in subsection (3) (b) (i) (

B) by striking out "that are adequate

and appropriate and that are in accordance with generally accepted actuarial

principles," and substituting "that are appropriate and in

accordance with accepted actuarial practice," , and

(

b) by adding the following subsections:

(7) A plan must file audited financial statements, prepared in

accordance with generally accepted accounting principles,

(

a) annually if the plan has assets exceeding the prescribed

amount, and

(

b) at any time that the superintendent may require.

Section 10 (4) (

e) and (

f) is repealed and the following substituted:

(d.1) the statement of investment policies and procedures

respecting the plan;

(

e) the 3 most recent returns filed with the superintendent under

section 9 (3) (a);

(

f) the 2 most recent actuarial valuation reports filed with the

superintendent under

section 9 (3) (b).

Section 11 is repealed and the following substituted:

Retention of records

11 An administrator, or any other person responsible for

the administration of a pension plan, who has possession or custody of any record

respecting the plan must retain the record as follows:

(

a) in the case of a record relating to a person entitled to

benefits under the pension plan, for at least 6 years after the date all rights or

entitlements of the person under the pension plan were paid, settled or extinguished;

(

b) in the case of a document that creates or supports the pension

plan, or any previously created document, for at least 6 years after the later of

(

i) the date on which the last assets of the pension fund were

distributed, and

(ii) the date on which the winding up of the pension plan is

approved by the regulatory authority responsible for pensions;

(

c) in the case of a record not described in paragraph (

a) or (b),

for at least 6 years after the date of the last transaction to which the record relates.

Section 15 is amended

(

a) by repealing subsection (2) and substituting the following:

(2) If a new document of the type referred to in

section 14 (2)

(a) (ii), (iii) or (

v) is made, the new document must be filed in the same manner as

required by subsection (1) of this section. ,

(

b) in subsection (3) by striking out "that the amendment"

and substituting "that an amendment filed under subsection (1) (a)" ,

and

(

c) by adding the following subsections:

(4) For the purposes of this section, the superintendent, with the

consent of the plan administrator who filed the plan amendment, may sever from a plan

amendment filed under subsection (1) (

a) that portion of the amendment that does not

comply with this Act and the regulations, and register in accordance with subsection

(3) the portion of the amendment that remains.

(5) The administrator must ensure that an amendment to a document

referred to in

section 14 (2) (a) (ii), (iii) or (

v) does not contain any provision that a

pension plan is prohibited by this Act and the regulations from containing.

Section 16 is amended

(

a) by repealing subsection (2) (

b) and substituting the following:

(

b) subject to sections 20 (6) and 21 (4), the amendment has been

filed and the administrator has not received written notice that the superintendent

(

i) refuses to register the amendment, or

(ii) is of the opinion that the amendment does not comply with

this Act and the regulations. , and

(

b) by adding the following subsection:

(3) For the purposes of subsection (2), "amendment"

means the amendment as filed under

section 15 or that portion of the amendment not severed

by the superintendent under subsection (4) of that section.

Section 19 (1) (

b) is amended by striking out "the regulations or

the plan." and substituting "the regulations, the plan or a

direction issued under

section 71."

Section 20 is amended

(

a) by repealing subsection (1) and substituting the following:

(1) If the superintendent

(

a) refuses to register a pension plan or a plan amendment filed

for registration,

(

b) cancels a registration under

section 19 (1), or

(

c) issues a direction under

section 71,

the superintendent must promptly serve on the administrator a

written notification of the refusal to register, the cancellation of the registration or

the issuance of the direction, as the case may be, and give reasons for the decision. ,

(

b) in subsection (3) by striking out "of the refusal or

cancellation" ,

(

c) in subsection (4) by striking out "reconsider the refusal or

cancellation and rescind, vary or confirm the previous decision" and

substituting "reconsider the refusal, cancellation or direction and rescind,

vary or confirm the previous decision or direction" , and

(

d) in subsection (5) by striking out "rescind the

cancellation." and substituting "rescind the cancellation or

direction."

Section 23 (3) (

c) is repealed and the following substituted:

(

c) provisions of sections 25 (2), (4), (5), (7) and (8), 29.1, 30

(11), 33 (1.1), (2.1), (3.1), (5.1), (5.2) and (6), 35 (6) (a), 37 (1) and (4), 39 (2), 41

(1) and (4), 43 (4) and 44 (4) and (5).

Section 24 (1) is amended by adding the following paragraph:

(

i) the method for conversion of optional ancillary contributions

to optional ancillary benefits upon retirement, termination of membership, pension

commencement, pre-retirement death and winding up of the plan.

Section 25 (3) is amended by striking out "Subject to

section 26

(2), for the purposes" and substituting "For the purposes" .

Section 26 (2) is repealed.

Section 27 is amended by striking out "membership on and after

January 1, 1993." and substituting "his or her membership in the

plan."

Section 28 is amended by striking out "membership on and after

the initial qualification date." and substituting "his or her

membership in the plan."

Section 29 is repealed and the following substituted:

Amount and terms of pension vested

(1) The pension payable under

section 26 (1) or 27 in

respect of employment in British Columbia or in a designated province, other than the

portion accruing from additional voluntary contributions, must not be less than the

pension that the terms of the plan provide for that employment at the date of the

termination of membership.

(2) Subject to any regulations made with reference to

section 45

(1), the pension payable under

section 28, other than the portion accruing from additional

voluntary contributions, must not be less than the pension payable under subsection (1) of

this section.

18 The following

section is added:

Optional ancillary benefits

29.1

(1) The conversion of optional ancillary contributions

to optional ancillary benefits must be done on the basis of actuarial assumptions and

methods that are appropriate and in accordance with accepted actuarial practice.

(2) If a member's accumulated optional ancillary contributions

exceed the amount that can be converted to optional ancillary benefits upon retirement,

termination of membership, pension commencement, preretirement death or winding up of the

plan, a plan may require forfeiture of the unused portion.

Section 30 is amended

(

a) by adding the following subsections:

(2.1) Subsection (1) does not apply to any part of the pension

accruing from optional defined benefit contributions made in respect of membership before

the initial qualification date.

(2.2) Subject to subsection (12), subsection (1) applies to a

spouse or former spouse who receives a share of the pension under

Part 6 of the Family

Relations Act. ,

(

b) in subsection (10) by adding "has not terminated and which"

after "a pension plan that" , and

(

c) by adding the following subsections:

(11) A plan member or former member, age 65 or over, may commute,

on the prescribed basis and in the prescribed manner, his or her total entitlement in

every defined contribution pension plan, RRSP referred to in

section 33 (2) (

b) and

prescribed retirement income fund if the sum of each plan, RRSP and fund is, in the

aggregate, less than the prescribed amount.

(12) Subsection (1) does not apply to a member, former member,

spouse, surviving spouse or former spouse who

(

a) has been absent from Canada for 2 or more years, and

(

b) has become a non-resident of Canada as determined for the

purposes of the Income Tax Act (Canada).

Section 31 is amended

(

a) in subsection (1) (

b) by adding "or optional defined benefit

contributions" after "additional voluntary contributions" ,

and

(

b) in subsection (3) by adding "or optional defined benefit

contributions" after "if additional voluntary contributions"

and by adding "or optional defined benefit contributions, as the case may

be," after "the additional voluntary contributions" .

Section 32 is amended

(

a) by adding the following subsections:

(2.1) Subsections (1) and (2) apply to improvements in, or the

purchase of, benefits related to past service before or after January 1, 1993 under a

defined benefit plan unless the benefit improvement is provided entirely from the member's

optional defined benefit contributions.

(3.1) If a plan, or part of a plan, is converted from a defined

benefit provision to a defined contribution provision and the conversion applies to all

service, subsections (1), (2), (2.1) and (3) are to be applied at the time of the

conversion for all members affected by the conversion. , and

(

b) in subsection (7) by striking out "contributions."

and substituting "contributions or optional defined benefit

contributions."

Section 33 is amended

(

a) by repealing subsection (1) and substituting the following:

(1) If

(

a) a member terminates membership in a pension plan, or the plan

is terminated,

(

i) on or after the initial qualification date, and

(ii) while the member is employed in British Columbia, and

(

b) an entitlement to receive a pension vests in the member on

that termination,

the member may make a transfer in accordance with subsections

(2) and (2.1), in the manner and to the extent prescribed, of the whole of the commuted value

of the pension. ,

(

b) in subsection (3) by striking out "A member of a multi-employer

plan who has not completed" and substituting "Subject to

subsection (3.1), a member of a multi-employer plan who does not complete" and

by striking out "subsections (1) and (2)," and substituting "subsections

(1), (2) and (2.1)," ,

(

c) in subsection (4) by striking out "subsections (1) and

(2)," and substituting "subsections (1), (2) and (2.1) of this

section," ,

(

d) in subsection (5) by striking out "Despite subsections (1),

(3) and (4)," and substituting "Despite sections 26 to 28 and

subsections (1), (3) and (4) of this section," and by striking out "those

subsections" and substituting "those sections and

subsections" , and

(

e) by adding the following subsections:

(1.1) Despite subsection (1), a defined benefit plan may restrict

the transfer if the termination referred to in subsection (1) occurs on or after the date

on which the member reaches the age of 55 years.

(2.1) Despite subsection (2), a transfer of the commuted value of

benefits in respect of membership before January 1, 1993 may, if the plan so provides, be

transferred to an RRSP, without conditions, or may be paid to the member.

(3.1) A multi-employer plan may provide that subsection (3) does

not apply to the plan if

(

a) the member accrues further benefits in the plan after the

period referred to in subsection (3), and

(

b) an application for transfer under subsection (3) was not

received by the administrator before the accrual of further benefits.

(5.1) Despite

section 26 and subsections (1), (3) and (4) of this

section, a defined contribution plan may provide that a member

(

a) who terminates membership in the plan,

(

b) in whom an entitlement to receive a pension vests on that

termination, and

(

c) who is not eligible for an immediate pension

must, in the manner and to the extent prescribed in relation to

subsections (1), (2) and (2.1), make the transfer referred to in those subsections.

(5.2) Despite

section 28 and subsections (1), (3) and (4) of this

section, a plan may provide that upon plan termination a member in whom a pension vests on

that termination and who is not eligible for an immediate pension must, in the manner and

to the extent prescribed in relation to the transfer referred to in subsections (1),

(2) and (2.1), make the transfer.

(8) If a person elects to make, or a plan requires, a transfer

under this section,

section 34 of this Act or

Part 6 of the Family Relations Act,

the administrator must make the transfer within 60 days after completing and filing with

the administrator all documents required to authorize the transfer, including evidence

required under

section 65 of this Act.

Section 34 is amended

(

a) in subsection (2) (

a) by striking out "together, with"

and substituting "together with" ,

(

b) in subsection (2) (b) (i) (

A) by striking out "the pension

if" and substituting "the pension in respect of the deceased's

membership on and after January 1, 1993 if" ,

(

c) in subsection (5) by striking out "section 33 (1) and (2)."

and substituting "section 33 (1), (1.1), (2) and (2.1)." ,

and

(

d) by adding the following subsections:

(4.1) Subsection (4) does not apply to a surviving spouse if an

entitlement to receive a pension would have vested in the deceased earlier than as

required by

section 26 or 27.

(12) This

section does not apply with respect to a spouse or

former spouse who has already received a share of the pension under

Part 5 or 6 of the

Family Relations Act.

Section 35 is amended

(

a) in subsection (4) by striking out "The former member may receive

a pension that does not comply" and substituting "If the pension

plan provides for alternative forms of payment, the former member may receive a pension in

a form acceptable under the plan but that does not comply" ,

(

b) by repealing subsection (6) and substituting the following:

(6) This

section does not apply to a spouse or former spouse in

respect of whom the administrator, before pension commencement, receives notice of a

division of the pension entitlement arising under

(

a) a separation agreement, or

(

b) an order referred to in

section 64 affecting the pension. ,

and

(

c) by adding the following subsection:

(7) This

section does not apply if payment of the pension began

before January 1, 1993 .

Section 37 is amended

(

a) by adding the following subsection:

(3.1) If the plan provides for a reduced pension because of a

member's or former member's entitlement to a pension under CPP or QPP, the postretirement

survivor benefit must not be less than the amount determined by the prescribed formula. ,

and

(

b) in subsection (5) by striking out "a benefit under OAS."

and substituting "a benefit under OAS unless the reduced amount is an option

selected by the member or former member."

Section 38 (9) is amended by striking out "71 years."

and substituting "69 years."

Section 40 is amended

(

a) in subsection (1) by striking out "A pension plan may

provide" and substituting "A pension plan must allow" ,

and

(

b) in subsection (2) by striking out "mental or" .

Section 41 is amended by adding the following subsections:

(1.1) An employer must make contributions to a pension plan that

are sufficient to pay for all the benefits in accordance with the prescribed solvency

tests.

(1.2) An employer may, as prescribed, take a contribution holiday

if the pension plan has surplus assets and provides for a contribution holiday.

Section 42 (1) is amended

(

a) in paragraph (

b) by striking out "or" at the end of

subparagraph (

i) and by adding the following subparagraph:

(i.1) an extraprovincial trust corporation, as defined in the Financial

Institutions Act, carrying on activities in British Columbia, or , and

(

b) by adding the following paragraph:

(b.1) the commissioner, as defined in

section 1 (1) of the Pension

(Public Service) Act, .

Section 43 is amended

(

a) by repealing subsections (1) and (2),

(

b) in subsection (3) by striking out "due to the plan,"

and substituting "due to the pension plan," , and

(

c) by repealing subsection (5) and substituting the following:

(5) If, 60 days following the period allowed by subsection (3) for

remitting contributions, an employer has still failed to remit the contributions, the

administrator or the fund holder who should have received the contributions must notify

the superintendent, in writing and within 30 days, respecting the failure of the employer

to remit, whether or not the contributions were subsequently remitted.

(6) Subsection (5) does not apply to a pension plan administered

by a board of trustees.

31 The following

section is added:

Deemed trust

43.1

(1) An employer must, with respect to a pension plan

to which the employer is required to make contributions, keep separate and apart from the

employer's own assets

(

a) all contributions that are due or owing to the pension plan by

the employer,

(

b) all amounts that have been deducted by the employer from a

member's remuneration and not yet remitted to the fund holder, and

(

c) all contributions that have been received by the employer with

respect to a member and not yet remitted to the fund holder.

(2) The amounts referred to in subsection (1) are deemed to be

held in trust for members of the pension plan, former members, and any other persons

entitled to pension benefits, refunds or other payments under the plan in accordance with

their interests under the plan.

(3) If there is, in respect of an employer, a proceeding

(

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

(

b) under the Winding-up Act (Canada) or similar provincial

legislation,

(

c) in relation to liquidation, receivership or secured creditor

enforcement, or

(

d) in relation to insolvency other than under the Bankruptcy

and Insolvency Act (Canada),

an amount equal to the amounts deemed to be held in trust under

subsection (2) is deemed to be separate and apart and form no part of the estate of the

employer, whether or not that amount has in fact been kept separate and apart from the

employer's own assets or from the assets of the estate.

Section 44 is repealed and the following substituted:

Investment requirements

(1) Pension plan investments, loans and other pension

plan financial decisions must be made in accordance with this Act and the regulations and

in the best financial interests of plan members, former members and other plan

beneficiaries.

(2) Pension plan assets must be invested in a manner that a

reasonable and prudent person would apply in respect of a portfolio of investments made on

behalf of another person to whom there is owed a fiduciary duty to make investments

without undue risk of loss and with a reasonable expectation of a return on the

investments commensurate with the risk.

(3) Pension plan assets must be held and invested in the name of

the plan, or in the name of a custodian or trustee in accordance with a custodial

agreement, trust agreement or statute that clearly indicates that the investments are held

for the benefit of the plan.

(4) A plan may provide that investment decisions may be made by a

member respecting

(

a) contributions made by the employer or the member to a defined

contribution plan,

(

b) the member's optional ancillary contributions, and

(

c) the member's additional voluntary contributions.

(5) A pension plan that allows for optional ancillary

contributions must specify how those contributions will be invested.

Section 45 (1) is amended by striking out "Subject to sections 41

and 43 (1)," and substituting "Subject to

section 41," .

Section 48 (6) is amended

(

a) by repealing paragraph (a), and

(

b) in paragraph (

b) by striking out "terminates the that part"

and substituting "terminates that part" .

Section 50 (1) is amended by adding the following paragraph:

(

d) if a member or former member has died, the surviving spouse,

designated beneficiary or personal representative of the estate of the member or former

member as ascertainable by the administrator.

Section 51 is amended by renumbering the

section as

section 51 (1) and by

adding the following subsection:

(2) If a pension plan, other than a negotiated cost plan, is

terminated with a solvency deficiency and the employer is not insolvent,

(

a) the employer must fund the remaining solvency deficiency as

prescribed,

(

b) the administrator must continue to file information returns

and actuarial valuation reports as required by

section 9 (3) (

a) and (

b) until the

solvency deficiency has been retired, and

(

c) subject to

section 55, the assets of the plan must be

distributed in the manner and to the extent prescribed.

Section 53 is amended by renumbering the

section as

section 53 (1) and by

adding the following subsection:

(2) Subsection (1) does not entitle a person affected by the

partial termination of the plan to share in any surplus assets on the partial termination,

but the plan may provide for such an entitlement.

Section 56 (1) is repealed and the following substituted:

(1) If

(

a) the administrator cannot be located or is insolvent,

(

b) there is no administrator to undertake a winding up, or

(

c) the superintendent considers that it is in the best interests

of the members, former members and other beneficiaries of the plan in the case of a wind

up,

the superintendent may

(

d) appoint a person to be the administrator for the purposes of

the winding up, and

(

e) direct that person, as administrator, to allocate and

distribute the assets of the plan.

Section 57 is amended by adding the following subsection:

(3) Subsection (2) does not apply to a multi-employer plan or

single employer negotiated cost plan.

Section 58 is amended

(

a) in subsection (1) by striking out "If" and

substituting "Despite

section 48 (2), if" ,

(

b) in subsection (2) by adding "and plan membership"

after "employee's employment" and by striking out "a

break in employment," and substituting "a break in employment and

that plan membership includes periods of membership in the plans of both employers," ,

(

c) in subsection (4) by striking out "section 33 (1) and (2)."

and substituting "section 33 (1), (2) and (2.1)." , and

(

d) by adding the following subsection:

(6) If

(

a) a transaction described in subsection (1) takes place,

(

b) the predecessor employer does not terminate and wind up the

plan to the extent that the plan relates to that employee, and

(

c) the employee would have been vested had the employee

terminated membership,

the employee is entitled to transfer the commuted value of the

pension in the manner and to the extent prescribed in relation to

section 33 (1), (2) and

(2.1).

Section 59 is amended by adding the following subsection:

(4) Despite subsection (1), a plan may be amended to reduce

benefits if the amendment is for the purpose of compliance with the Income Tax Act

(Canada).

Section 60 (1) (

a) is amended by striking out "or 58 (4),"

and substituting "or 58 (4) or (6)," .

Section 61 is amended by renumbering the

section as

section 61 (1) and by

adding the following subsections:

(2) Despite subsection (1), if a pension plan does not clearly

provide for the payment or transfer of surplus assets to the employer, the employer may,

in a form acceptable to the superintendent, present a proposal to the members and former

members for consent to withdraw surplus assets.

(3) If, after being notified of the proposal, at least

(a) 2/3 of the members of the pension plan, and

(b) 2/3 of the former members and other prescribed persons,

notify the employer that they consent to the proposal, the

employer may make written application to the superintendent for consent to withdraw

surplus assets.

(4) The proposed withdrawal of surplus assets may proceed when

(

a) the administrator receives written notice from the

superintendent consenting to the proposed withdrawal, and

(

b) the administrator has complied with the prescribed

requirements for the withdrawal.

(5) A plan must meet all of the requirements of this Act and the

regulations with respect to surplus withdrawal before surplus assets may be withdrawn.

(6) The restrictions in this

section respecting the payment or

transfer of surplus assets to the employer apply to both ongoing plans and terminated

plans.

(7) This

section applies despite the Trust and Settlement

Variation Act.

44 The following

section is added:

Return of excess contributions

61.1

(1) Subject to subsection (2), a pension plan may

provide for the return to a contributor of

(

a) contributions to the plan that are in excess of maximum

amounts allowable under the Income Tax Act (Canada), or

(

b) contributions to the plan that were made in error.

(2) The contributions referred to in subsection (1) may only be

returned to the contributor if

(

a) a written application is made to the superintendent by the

administrator, and

(

b) the administrator receives approval in writing from the

superintendent.

Section 62 is amended

(

a) in subsection (1) (

b) by striking out "section 43 (2);"

and substituting "section 41 (1.2);" ,

(

b) in subsection (1) (

e) by striking out "section 61"

and substituting "section 61 (1)" , and

(

c) in subsection (6) by adding "and" at the end of

paragraph (a), by striking out "and" at the end of paragraph (

b) and by repealing paragraph (c).

Section 63 (1) (

b) is amended by striking out "33,"

and substituting "33 (2)," .

Section 71 is amended by renumbering the

section as

section 71 (1) and by

adding the following subsections:

(2) If, in the opinion of the superintendent, a pension plan does

not comply with this Act or the regulations or is not being administered in accordance

with this Act, the regulations or the plan, the superintendent may

(

a) direct the administrator, the employer or any person to

(

i) cease or refrain from committing the act or pursuing the

course of conduct that constitutes the non-compliance, and

(ii) perform such acts as in the opinion of the superintendent are

necessary to remedy the situation, or

(

b) institute any action that could be initiated by a member or

any other person entitled to a benefit under the plan.

(3) If the superintendent considers that a person has failed to

comply with a direction made under this section, the superintendent may apply to the

Supreme Court for either or both of the following:

(

a) an order directing the person to comply with the direction or

restraining the person from violating the direction;

(

b) an order directing the directors and officers of the person to

cause the person to comply with or to cease violating the direction,

and the Supreme Court may make any order it considers appropriate.

(4) If a person is convicted of an offence under this Act or the

regulations, the court, in addition to any punishment it may impose, may, without limiting

subsection (3), order the person to comply with the provisions of this Act and the

regulations.

Section 74 (2) is amended

(

a) in paragraph (

d) by adding "or prescribed retirement income

fund" after "RRSP" wherever it appears,

(

b) in paragraph (d) (ii) by striking out "section 40 (2);" and

substituting "section 30 (11) or 40 (2);" ,

(

c) by repealing paragraph (

g) and substituting the following:

(

g) despite sections 25 to 27, respecting

(

i) the benefits and membership of a former member who has begun

to receive a pension under a plan and restarts work or service in an employment covered by

that plan,

(ii) the suspension of benefits of a former member who has begun

to receive an early retirement pension under a multi-employer plan and restarts work or

service in British Columbia in a trade and industry covered by that plan but with an

employer who is not a participant in that plan, and

(iii) the reinstatement of benefits of a former member referred to

in subparagraph (ii); , and

(

d) by adding the following paragraphs:

(c.1) respecting fees, payable by savings institutions and

insurance companies, for approval by the superintendent of locked-in RRSP and prescribed

retirement income fund contracts;

(c.2) respecting fees for late filing of returns under

section 9

(3) (a);

(

q) respecting conditions that apply to

(

i) the conversion of defined benefit plans to defined

contribution plans,

(ii) the split of pension plans into 2 or more successor plans,

and

(iii) the consolidation and merger of pension plans; .

Consequential Amendments

Hydro and Power Authority Act

Section 32 (7) of the Hydro and Power Authority Act, R.S.B.C. 1996, c. 212, is

amended by adding the following paragraph:

(s.1) the Pension Benefits Standards Act; .

Legislative Assembly Allowances and Pension Act

Section 1 of the Legislative Assembly Allowances and Pension Act, R.S.B.C.

1996, c. 257, is amended by repealing the definition of "spouse" and

substituting the following:

"spouse" has the same meaning as in

section 1 (1)

and (2) of the Pension Benefits Standards Act; .

Pension (College) Act

Section 1 (1) of the Pension (College) Act, R.S.B.C. 1996, c. 353, is amended

by repealing the definition of "spouse" and substituting the following:

"spouse" has the same meaning as in

section 1 (1)

and (2) of the Pension Benefits Standards Act; .

Section 7 (4) is amended by striking out "71 years." and

substituting "69 years."

Section 9 (2) is amended by striking out "one month's

service." and substituting "one month's contributory

service."

Section 12 (1) is amended

(

a) by striking out "January 1, 1993," and substituting "January

1, 1998," ,

(

b) in paragraph (a) (iii) and (iv) by striking out "5 years of

continuous employment or 5 years of contributory service" and substituting "2

years of contributory service" ,

(

c) in paragraph (

b) by striking out "5 years of continuous

employment or not less than 5 years of contributory service," and substituting "2

years of contributory service," , and

(

d) in paragraph (

c) by striking out "5 years of continuous

employment or has not completed 5 years of contributory service." and

substituting "2 years of contributory service."

Section 21 is amended

(

a) by repealing subsections (1) to (3) and substituting the following:

a contributor who, on or after January 1, 1998, resigns, is dismissed or is otherwise

retired from service is entitled, on application, to receive, instead of a pension or

other benefit that might have been granted under this Act, a payment in the amount of the

commuted value of the contributor's pension if

(

a) the contributor has less than 2 years of contributory service

and the contributor's age is less than pensionable age, or

(

b) the contributor has 2 or more years of contributory service

and the contributor's age is more than 5 years under pensionable age.

(2) A contributor may elect to receive, instead of the commuted

value referred to in subsection (1), one of the following:

(

a) if the contributor has less than 2 years of contributory

service at the termination of membership,

(

i) a payment in the amount of the contributor's contributions,

together with accumulated interest under subsection (6), or

(ii) an entitlement to a deferred pension calculated under

section

14 (4) that is payable, on application, at pensionable age or older;

(

b) if the contributor has 2 or more years of contributory service

at the termination of membership, an entitlement to a deferred pension calculated under

section 14 (3) (

a) that is payable, on application, from 5 years under the contributor's

pensionable age or older.

(3) A contributor may elect to receive a payment or payments under

subsection (1) if the commissioner is satisfied that the commuted value payment is to be

transferred on a locked-in basis to one of the following:

(

a) another pension plan;

(

b) an RRSP;

(

c) an insurance company or other financial institution in

accordance with the requirements for funds locked in under the Pension Benefits

Standards Act. , and

(

b) by adding the following subsection:

(3.1) Section 20 (3) and subsection (3) of this

section do not

apply to a member, former member, spouse, surviving spouse or former spouse who

(

a) has been absent from Canada for 2 or more years, and

(

b) has become a non-resident of Canada as determined for the

purpose of the Income Tax Act (Canada).

Section 22 (2) is amended by striking out "mental or" .

Pension (Municipal) Act

Section 1 (1) of the Pension (Municipal) Act, R.S.B.C. 1996, c. 355, is

amended by repealing the definition of "spouse" and substituting the

following:

"spouse" has the same meaning as in

section 1 (1)

and (2) of the P ension Benefits Standards Act; .

Section 2 (7) is amended by striking out "71 years."

and substituting "69 years."

Section 13 is amended

(

a) in subsection (1) by striking out "Each contributor is entitled

to a pension, on application, as follows:" and substituting "Subject

section 17 (9), a contributor who, on or after January 1, 1998, retires, resigns or is

dismissed from service is, on application, entitled to a pension as follows:" ,

(

b) in subsection (1) (

a) and (

b) by striking out "5 years of

continuous employment or 5 years of contributory service," and substituting "2

years of contributory service," ,

(

c) in subsection (2) by striking out "5 years of continuous

employment or less than 5 years of contributory service," and substituting

"2 years of contributory service," , and

(

d) in subsection (3) (

b) by striking out "5 or more years of

continuous employment or 5 or more years of contributory service," and

substituting "2 or more years of contributory service," .

Section 17 is amended

(

a) by repealing subsection (9) and substituting the following:

(9) If the service of a contributor terminates or is terminated on

or after January 1, 1998 and the contributor has completed at least 2 years of

contributory service, the contributor is entitled to leave a contributory account on

deposit in the fund to provide a deferred pension calculated under

section 16 in respect

of all pensionable service. ,

(

b) by repealing subsection (11) and substituting the following:

out in subsection (12), a contributor who resigns, is dismissed or is otherwise retired

from service on or after January 1, 1998 may elect to receive, instead of a deferred

pension, a payment in the amount of the commuted value of the deferred pension for all

service. ,

(

c) in subsection (12) by striking out "a payment or payments under

subsection (11) (

a) or (b)" and substituting "a payment under

subsection (11)" , and

(

d) by adding the following subsection:

(12.1) Section 22 (3) (

b) and subsection (12) of this

section do

not apply to a member, former member, spouse, surviving spouse or former spouse who

(

a) has been absent from Canada for 2 or more years, and

(

b) has become a non-resident of Canada as determined for the

purpose of the Income Tax Act (Canada).

Section 21 is amended

(

a) in subsection (2) by adding ", on or after January 1,

1998," after "Subject to the other provisions of this Act,

if" , and

(

b) in subsection (2) (

a) by striking out "5 years of continuous

employment or 5 years of contributory service," and substituting "2

years of contributory service," .

Section 22 is amended

(

a) in subsection (1) by striking out "January 1, 1993,"

and substituting "January 1, 1998," ,

(

b) in subsection (1) (

a) by striking out "5 years of continuous

employment or not less than 5 years of contributory service," and substituting "2

years of contributory service," ,

(

c) in subsection (5) by adding "on or after January 1, 1998"

after "If a contributor dies in service" , and

(

d) by repealing subsection (5) (

b) and substituting the following:

(b) 60% of the commuted value of the pension, if any, to which the

contributor would have been entitled in respect of his or her plan membership had the

contributor terminated membership immediately before death.

Section 26 (6) is amended by striking out "mental or" .

Pension (Public Service) Act

Section 1 (1) of the Pension (Public Service) Act, R.S.B.C. 1996, c. 356, is

amended by repealing the definition of "spouse" and substituting the

following:

"spouse" has the same meaning as in

section 1 (1)

and (2) of the Pension Benefits Standards Act ; .

Section 4 is amended by adding the following subsection:

(6) Despite subsection (5), retirement and the beginning of a

pension must not be delayed beyond the end of the calendar year in which the officer

reaches the age of 69 years.

Section 8 (3) is amended by striking out "one month's

service." and substituting "one month's contributory

service."

Section 15 (10) is amended by striking out "71 years." and

substituting "69 years."

Section 19 is amended

(

a) by repealing subsection (1) and substituting the following:

(1) If the service of a contributor terminates or is terminated on

or after January 1, 1998 and the contributor has completed at least 2 years of

contributory service, the contributor is entitled to leave a contributory account on

deposit in the fund to provide a deferred pension calculated under

section 22 in respect

of all pensionable service. ,

(

b) by repealing subsection (3) and substituting the following:

in subsection (4), a contributor may elect to receive, instead of a deferred pension, a

payment in the amount of the commuted value of the deferred pension for all service. ,

and

(

c) by adding the following subsection:

(4.1) Section 26 (2) (

b) and subsection (4) of this

section do not

apply to a member, former member, spouse, surviving spouse or former spouse who

(

a) has been absent from Canada for 2 or more years, and

(

b) has become a non-resident of Canada as determined for the

purpose of the Income Tax Act (Canada).

Section 27 (10) is amended by striking out "mental or" .

Pension (Teachers) Act

Section 1 (1) of the Pension (Teachers) Act, R.S.B.C. 1996, c. 357, is amended

by repealing the definition of "spouse" and substituting the following:

"spouse" has the same meaning as in

section 1 (1)

and (2) of the Pension Benefits Standards Act; .

Section 7 (6) is amended by striking out "71 years."

and substituting "69 years."

Section 9 (2) is amended by striking out "one month's

service." and substituting "one month's contributory

service."

Section 23 is amended by adding the following subsection:

(4.1) Section 21 (2) (

b) and subsection (4) of this

section do not

apply to a member, former member, spouse, surviving spouse or former spouse who

(

a) has been absent from Canada for 2 or more years, and

(

b) has become a non-resident of Canada as determined for the

purpose of the Income Tax Act (Canada).

Section 24 is amended

(

a) in subsection (4) by striking out "the fund may be"

and substituting "the fund may not be" , and

(

b) in subsection (6) by striking out "mental or" .

Commencement

(1) Sections 52, 58, 65, 67 and 71 are deemed to have

come into force on January 1, 1997 and are retroactive to the extent necessary to give

them effect on and after that date.

(2) Sections 1 (c), (e), (

g) and (k), 13 to 17, 40, 42, 53 to 55,

59 to 62 and 68 are deemed to have come into force on January 1, 1998 and are retroactive

to the extent necessary to give them effect on and after that date.

(3) Sections 1 (

b) and (j), 4, 19 (c), 25, 36 and 43 come into

force by regulation of the Lieutenant Governor in Council.

Copyright © 1999: Queen's Printer, Victoria, British Columbia, Canada