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2011/12 Legislative Session: 4th Session, 39th 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 31st day of May, 2012

Craig James, Clerk of the House

HONOURABLE KEVIN FALCON

MINISTER OF FINANCE AND DEPUTY PREMIER

BILL 38 – 2012

PENSION BENEFITS STANDARDS ACT

Contents

Part 1 –

Interpretation And Application

Interpretation

Application to public sector pension plans

Application to plans for connected persons

Part 2 – Superintendent of Pensions

Appointment and duties of Superintendent of Pensions

Superintendent's authority to extend time limits

Personal liability protection

Part 3 – Pension Plan Requirements

General requirements of plan text documents

Plan text documents to reflect Act provisions

Provisions relating to gender

Fiscal year of plan

Part 4 – Registration and Amendment of Pension Plans

Division 1 – Registration of Pension Plans

Restrictions on administration of plans

Application for registration of plans

Superintendent must register plan in appropriate circumstances

If application refused or withdrawn

Superintendent may cancel plan registration

Division 2 – Amendment of Plan Text Documents

Restrictions on administration of plan if plan text document amended

Filings required for registration of amendment to plan text documents

Restrictions on administration of plan if amendments severed

Restrictions on amendments to reduce benefits

Amendment to temporarily improve benefits under target benefit provision

Superintendent must register amendment to plan text document in appropriate circumstances

Revocation of registration of amendment

Transactions may be reversed

Division 3 – Amendment of Supporting Plan Documents

Restrictions on administration of plan if supporting plan document amended

Amendment to supporting plan documents

Division 4 – Registration of Plan or Amendment

Effective date of plan or amendment

Designation of plan

Part 5 – Membership in Pension Plans

Entitlement of employees to join plan

Dispute as to member of class of employees

Suspension of membership

Vesting of pension

Part 6 – Administration of Pension Plans

Division 1 – Plan Requirements

Plan requirements

Retention of records

Division 2 – Administrator

Responsibilities of administrator

Administrator must enter into participation agreement

Administrator must disclose information and records

Administrator must file reports and returns

Administrator must disclose insolvency proceedings

Repayment of contributions or transfer of benefits

Review of plan

Division 3 – Administrator Must Ensure Policies Established

Administrator must ensure governance policy established

Administrator must ensure statement of investment policies and procedures established

Administrator must ensure funding policy established

Division 4 – Participating Employers

Funding responsibilities of participating employer

Participating employer must provide information and records to administrator

Trust agreement applies to all participating employers

Participating employer must enter into participation agreement

Compelling compliance

Division 5 – Fundholders

Who may act as fundholder

Responsibilities of fundholders

Part 7 – Funding, Contributions and Assets

Division 1 – Funding of Plan

Funding requirements for benefit formula provisions

Funding requirements for defined contribution provisions

Solvency reserve account

Letters of credit

Division 2 – Contributions to Plan

Remitting of contributions

Maximum employee contributions for funding pension under benefit formula provision

Deemed trust

Refund of contributions to avoid revocation

Division 3 – Investing Plan Assets

Investment requirements

Interest, gains and losses on contributions and benefits

Division 4 – Use of Actuarial Excess and Surplus

Transfer of actuarial excess or surplus

Use of actuarial excess

Part 8 – Benefits and Transfers

Division 1 – Pension Eligibility Date

Age requirements of plan text document

Pension may start before pension eligibility date

If employment continues after pension eligibility date

Division 2 – Restrictions on Access to Benefits

Evidence of entitlement to benefit

Locking in commuted value of benefits

Exceptions to locking in commuted value of benefits

No disposition or attachment of benefits and money

Income and asset testing

Restrictions on transfer of assets

Division 3 – Benefits May Be Affected

Maximum years and amounts

Adjustments in pension for CPP Act, QPP Act and OAS Act

Flexibility for life income type benefits

Lump-sum payments

Division of benefits under orders or agreements

Division 4 – Death Benefits

Definition

Survivor's benefits if member dies before pension commencement

Survivor's benefits if retired member dies after pension commencement

Spouse's change in status

Division 5 – Ancillary and Phased Retirement Benefits

Ancillary benefits

Phased retirement benefit

Division 6 – Additional Voluntary Contributions and Optional Ancillary Contributions

Payment out of additional voluntary contributions and optional ancillary contributions

Division 7 – Transfer of Commuted Value by Members

When transfer may be made under this Division

What may be transferred

Transfer may be restricted or postponed

How transfer may be made

When plan can require transfer to be made

Part 9 – Changes in Plan Benefit Type or Plan Structure

Prescribed rules apply to predecessor and successor plans

Rights of members on transfer of membership to another plan

Prescribed rules apply when benefits converted from one type to another

Participating employer's withdrawal from a collectively bargained multi-employer plan

Participating employer's withdrawal from a non-collectively bargained multi-employer plan

Continuation of pension plan despite cessation of benefit accrual

Part 10 – Termination and Winding-Up of Plan

Division 1 – Definition

Definition

Division 2 – Terminating Pension Plans

Voluntary termination

Termination by direction of superintendent

Division 3 – After Effective Date of Termination

Benefits cease to accrue

Required amounts must be remitted

Solvency deficiency must be eliminated

Termination report required

Limitations on payments of pension or benefits

Division 4 – Winding-Up

When plan must be wound up

Transfer rights on winding-up

Allocation and distribution of assets if insufficient to satisfy benefits

Surplus on winding-up

Division 5 – Appointment of Administrator

Superintendent's authority to appoint administrator on plan termination or winding-up

Expense of termination and winding-up

Part 11 – Monitoring and Enforcement

Inspection and production of documents

Superintendent may request documents

Superintendent may apply for order

Directions for compliance

Superintendent's authority to appoint administrator

Designation of actuary

Administrative penalties

Enforcement of administrative penalty

Expenses of inspections

Remedies preserved

Limitation on proceedings

Failure to pay administrative penalty

Remedies preserved

Offences and penalties

Limitation period for prosecution

Part 12 – Reconsiderations and Appeals

Superintendent must provide notice of decision

Notice of objection

Appeal to tribunal

Part 13 – Relationships with Other Canadian Jurisdictions

Reciprocal powers and agreements with other governments

Agreements respecting multi-jurisdictional plans

Transitional regulation

Part 14 – Miscellaneous

Service of documents

Proof of date of service

Power to make regulations

Repeal

135-176

Consequential Amendments

Commencement

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

Part 1 –

Interpretation and Application

Interpretation

(1) In this Act:

"active member" in relation to a pension plan, means an individual who is employed in employment covered by the plan if

(

a) he or she is, with respect to that employment,

(

i) accruing benefits under the plan, or

(ii) contributing to the plan or having contributions made to the plan on his or her behalf,

(

b) he or she is not, with respect to that employment, accruing benefits under the plan, contributing to the plan or having contributions made to the plan on his or her behalf because

(

i) he or she has elected to suspend his or her membership under

section 31, or

(ii) the plan is one under which benefits have ceased to accrue and that is continued with the consent of the superintendent under

section 95 (1), or

(

c) he or she is on a temporary absence from that employment;

"actuarial excess" , in relation to a pension plan that is not terminated, means the value of the assets of the plan less the value of the liabilities of the plan, both calculated in the prescribed manner;

"additional voluntary contributions" means contributions made by a member to a pension plan that are additional to the contributions the member is or was required to make under the plan text document of the plan, and includes interest on those contributions, but does not include

(

a) optional ancillary contributions, and

(

b) other contributions if, under the terms of the plan text document, payment of those other contributions imposes or imposed on the participating employer an obligation to make additional contributions;

"administrator" , in relation to a pension plan, means the person responsible for administering the plan in accordance with

section 35, and includes any person appointed by the superintendent as an administrator of the plan under

section 108 or as a temporary administrator of the plan under

section 114;

"ancillary benefit" means a benefit referred to in

section 82 (1);

"authorized person" means

(

a) the superintendent, or

(

b) a person designated by the superintendent, in writing, as the superintendent's authorized representative;

"benefit" , in relation to a pension plan, means a pension, or other monetary amount, that a person is or may become entitled to receive under the plan, but does not include a refund of actuarial excess or surplus;

"benefit formula provision" means

(

a) a defined benefit provision,

(

b) a target benefit provision, or

(

c) any provision of the plan text document of a pension plan that is prescribed to be a benefit formula provision;

"collective agreement" means an agreement between one or more employers and its or their employees, and includes a collective agreement within the meaning of the Labour Relations Code ;

"collectively bargained multi-employer plan" means a multi-employer plan established through a collective agreement, unless, under

section 28, the superintendent designates the plan as a non-collectively bargained multi-employer plan or a single employer plan, and includes any plan the superintendent designates as a collectively bargained multi-employer plan under

section 28;

"commuted value" ,

(

a) in relation to benefits that a person is or may become entitled to receive under a benefit formula provision of a pension plan, means the actuarial present value of those benefits determined in accordance with subsection (2), or

(

b) in relation to benefits that a person is entitled to receive under a defined contribution provision of a pension plan, means the total amount of the contributions that are or were required to be made in relation to those benefits, and includes interest on those contributions;

"court" , except in

section 70 (3) (

c) and (d), means the Supreme Court;

"CPP Act" means the Canada Pension Plan ;

"deferred member" , in relation to a pension plan, means an individual who

(

a) has ceased to be an active member of the plan,

(

b) is entitled to receive a benefit under the plan, and

(

c) has not reached his or her pension commencement date;

"defined benefit provision" means a provision of the plan text document of a pension plan that establishes a formula by which the amount of the pension that is to be paid to a member is determined, but does not include a target benefit provision or a provision that is prescribed to be a benefit formula provision;

"defined contribution provision" means a provision of the plan text document of a pension plan that

(

a) contemplates that an actual or notional account will be maintained to record what is provided by

(

i) contributions, other than additional voluntary contributions, made by or on behalf of a member, and

(ii) interest and any other amounts allocated to the account, and

(

b) provides that the benefits to which the member is entitled under the provision are determined solely by reference to the amount of that account;

"designated beneficiary" means a person designated under

section 46 (2) of the Law and Equity Act to receive a benefit payable under a plan in the event of the designator's death;

"effective date of the termination" , in relation to a pension plan, means,

(

a) for a termination elected under

section 97, the date that under

section 97 (5) is the effective date of the termination of the plan,

(

b) for a termination directed under

section 98, the date specified by the superintendent as the effective date of the termination of the plan, or

(

c) if a termination is neither elected under

section 97 nor directed under

section 98,

(

i) subject to subparagraph (ii), the first date on which benefits cease to accrue under the plan, or

(ii) if the superintendent consented under

section 95 (1) to the continuation of the plan and later withdraws that consent and directs that the plan be terminated, the date that under

section 95 (6) is the effective date of the termination of the plan;

"employee" means an individual who is employed by an employer;

"employer" means a person or organization, whether incorporated or not, from whom an employee receives or received remuneration;

"excess contributions" , in relation to a member of a pension plan, means the excess referred to in

section 57 (2) that is attributable to that member;

"federally regulated employment" has the same meaning as "included employment" in the Pension Benefits Standards Act, 1985 (Canada);

"file" , except where a contrary intention appears, means file with the superintendent;

"fundholder" , in relation to the pension fund of a pension plan, means the entity or combination of entities, referred to in

section 50 (2), that holds the pension fund;

"funding requirements" means,

(

a) in the case of a pension plan, the plan text document of which contains a benefit formula provision, the requirements relating to the funding of the plan that are referred to in

section 52, or

(

b) in the case of a pension plan, the plan text document of which contains a defined contribution provision, the requirements relating to the funding of the plan that are referred to in the plan text document;

"initial legislation date" means,

(

a) subject to paragraph (b), in respect of employment in British Columbia, January 1, 1993, or

(

b) in respect of federally regulated employment or employment in any other province, the date prescribed for that employment;

"insurance company" means a corporation authorized to carry on life insurance business in Canada;

"interest" means interest, gains and losses provided for under

section 61;

"jointly sponsored plan" means a pension plan

(

a) that meets the prescribed criteria,

(

b) the plan text document of which contains a benefit formula provision,

(

c) in which the participating employers and active members are required to make contributions, including, without limitation, contributions to meet the funding requirements applicable to the plan, and

(

d) in which responsibility for the governance of the plan is shared among

(

i) the participating employers,

(ii) the active members of the plan, and

(iii) the other classes of members, if any, that are authorized under the plan documents to share in that responsibility;

"life income fund" means a RRIF that is prescribed to be a life income fund;

"locked-in retirement account" means an RRSP that is prescribed to be a locked-in retirement account;

"member" means

(

a) an active member,

(

b) a deferred member, or

(

c) a retired member;

"multi-employer plan" means a pension plan administered for employees of 2 or more participating employers that are not affiliates within the meaning of the Business Corporations Act ;

"multilateral jurisdiction" means a province that is a party to an agreement under

section 129 and is prescribed to be a multilateral jurisdiction;

"negotiated cost plan" means a pension plan if

(

a) the plan is established under a collective agreement, and

(

b) contributions are determined and limited by the collective agreement;

"non-collectively bargained multi-employer plan" means a multi-employer plan established other than through a collective agreement, unless, under

section 28, the superintendent designates the plan as a collectively bargained multi-employer plan or a single employer plan, and includes any plan the superintendent designates as a non-collectively bargained multi-employer plan under

section 28;

"OAS Act" means the Old Age Security Act (Canada);

"optional ancillary benefits" means enhanced benefits under a benefit formula provision of the plan text document of a pension plan that are

(

a) selected by a member or his or her surviving spouse, and

(

b) funded through optional ancillary contributions made by the member;

"optional ancillary contributions" means contributions

(

a) that are made voluntarily by a member under a benefit formula provision of the plan text document of a pension plan,

(

b) that are additional to the contributions the member is required to make under the plan, and

(

c) that result or may result in optional ancillary benefits being payable,

and includes interest on those contributions;

"participating employer" , in relation to a pension plan, means an employer that is required to make contributions to the plan;

"participation agreement" means an agreement referred to in

section 36;

"pension" means a series of periodic payments that, under the terms of the plan text document of a pension plan, is payable,

(

a) in the case of payments under a benefit formula provision, for the life of a retired member, whether or not the pension is continued to another person, and

(

b) in the case of payments under a defined contribution provision, until the earlier of

(

i) the date on which the member dies, and

(ii) the date on which the balance in the member's account referred to in paragraph (

a) of the definition of "defined contribution provision" is zero;

"pension commencement date" ,

(

a) in relation to a member of a pension plan, means

(

i) the date the member selects as the date on which the member's pension is to start if that date is

(

A) not earlier than the earliest date provided for in the plan text document of the plan as the date at which a member may start to receive a pension under the plan, and

(

B) not later than the last date on which a person is allowed under the Income Tax Act (Canada) to start receiving a pension from a registered pension plan, or

(ii) if the member does not select a date that complies with paragraph (a) (i) (

A) or (B), the last date on which the person is allowed under the Income Tax Act (Canada) to start receiving a pension from a registered pension plan, or

(

b) in relation to a surviving spouse, means the earlier of

(

i) the date the surviving spouse selects in accordance with this Act as the date on which the surviving spouse's pension is to start, and

(ii) the last date on which the surviving spouse is allowed under the Income Tax Act (Canada) to start receiving a pension from a registered pension plan;

"pension eligibility date" , in relation to a pension plan, means the age or date, provided for in the plan text document of the plan in accordance with

section 64 (1), at which the members of the plan are entitled to start receiving a pension under the plan without reduction or increase to the pension;

"pension fund" , in relation to a pension plan, means the assets of the plan;

"pension plan" means a plan, scheme or arrangement organized and administered to provide pensions to members, but does not include a prescribed plan, scheme or arrangement;

"plan documents" , in relation to a pension plan, means the plan text document and all supporting plan documents for the plan;

"plan text document" , in relation to a pension plan, means the record referred to in

section 8 (1) that sets out the rights, obligations and entitlements under the plan;

"public sector pension plan" means

(

a) a pension plan to which the Public Sector Pension Plans Act applies, or

(

b) any other pension plan, established under the authority of an enactment, that is prescribed to be a public sector pension plan;

"QPP Act" means the Act respecting the Québec Pension Plan (Quebec);

"qualified trustee group" , in relation to a pension plan, means individuals who are authorized under

section 50 (2) (b) (ii) to hold the pension fund of the plan;

"reciprocal jurisdiction" means a province that is prescribed to be a reciprocal jurisdiction;

"registration" means registration, under

Part 4 of this Act, of a pension plan or of an amendment to a pension plan, and includes registration under the Pension Benefits Standards Act , R.S.B.C. 1996, c. 352;

"remuneration" includes wages, salary, pay and commissions;

"retired member" , in relation to a pension plan, means an individual who has reached his or her pension commencement date;

"retirement income arrangement" means

(

a) a life income fund, or

(

b) any fund, account or other arrangement that is prescribed to be a retirement income arrangement;

"RRIF" means a registered retirement income fund within the meaning of the Income Tax Act (Canada);

"RRSP" means a registered retirement savings plan within the meaning of the Income Tax Act (Canada);

"single employer plan" means a pension plan in which there is only one participating employer or, if there is more than one participating employer, in which all participating employers are affiliates within the meaning of the Business Corporations Act ;

"spouse" means a person who is a spouse within the meaning of subsection (3);

"superintendent" means the person appointed as the Superintendent of Pensions under

section 4;

"supplemental pension plan" means a pension plan if the only persons who are, or are eligible to become, members of the plan are persons who are and continue to be members of another pension plan;

"supporting plan document" , in relation to a pension plan, means a record referred to in

section 13 (a) (ii), (iii), (iv) or (vi);

"surplus" , in relation to a pension plan that has been terminated, means the value of the assets of the plan less the value of the liabilities of the plan, both calculated in the prescribed manner;

"target benefit provision" means a provision of the plan text document of a pension plan that

(

a) establishes a formula by which the amount of the pension that is intended to be payable to a member is to be determined, and

(

b) provides that the actual benefit under the plan may be reduced under

section 20 (2) (

b) below the intended benefit;

"temporary absence" means an absence referred to in subsection (4);

"terminate" , in relation to a pension plan, has the meaning set out in subsection (5);

"termination of active membership" means,

(

a) in relation to an active member of a collectively bargained multi-employer plan that has not terminated, the end of any period of 2 consecutive fiscal years of the plan in which period the member has not completed a total of 350 hours of employment in respect of which contributions are required to be remitted to the plan on his or her behalf,

(

b) in relation to an active member of a supplemental pension plan that has not terminated, the termination of the active member's membership in the pension plan to which the supplemental pension plan is supplemental,

(

c) subject to subsection (6), in relation to an active member of any other pension plan that has not terminated, the cessation by the member of the employment in respect of which, under the plan, benefits are accrued or contributions are required to be remitted to the plan on his or her behalf, and

(

d) in relation to an active member of a pension plan that has terminated, the termination of the plan,

and "terminate active membership" has a corresponding meaning;

"termination report" means the report required to be filed under

section 102 (a);

"trade union" has the same meaning as in the Labour Relations Code ;

"tribunal" means the Financial Services Tribunal under the Financial Institutions Act ;

"winding-up" , in relation to a pension plan that has been terminated, means the process of distributing the pension fund;

"Year's Maximum Pensionable Earnings" has the same meaning as in the CPP Act.

(2) For the purposes of this Act, the actuarial present value of benefits that a person is or may become entitled to receive under a benefit formula provision of a pension plan must be determined

(

a) on the basis of actuarial assumptions and methods that are appropriate and in accordance with accepted actuarial practice,

(

b) in the prescribed manner, and

(

c) in a manner acceptable to the superintendent.

(3) Persons are spouses for the purposes of this Act on any date on which one of the following applies:

(

a) they

(

i) are married to each other, and

(ii) have not been living separate and apart from each other for a continuous period longer than 2 years;

(

b) they have been living with each other in a marriage-like relationship for a period of at least 2 years immediately preceding the date.

(4) The absence of an employee from employment is a temporary absence if all of the following apply:

(

a) no cessation of employment has occurred;

(

b) the period of the absence is not more than 52 consecutive weeks;

(

c) immediately before the absence the employee was in the employment of a participating employer;

(

d) during the absence the employee is not doing work, or providing a service, for a participating employer for remuneration;

(

e) after the absence the employee is again in the employment of a participating employer.

(5) A pension plan terminates on the effective date of the termination of the plan.

(6) If a member of a non-collectively bargained multi-employer plan ceases employment, the cessation of employment does not constitute termination of the member's active membership in the plan if

(

a) the plan text document of the plan establishes a period of not more than one year,

(

b) the plan text document provides that a member's cessation of employment does not constitute termination of the member's active membership in the plan if, before the end of the period referred to in paragraph (a), the member becomes employed in an employment for which a participating employer is required by the plan to make contributions to that plan on the member's behalf, and

(

c) the member ceasing employment becomes so employed before the end of the period referred to in paragraph (a).

(7) Subject to subsection (8), for the purposes of this Act, a person is deemed to be employed in the province where his or her employer's establishment is located and to which the person is required to report for work.

(8) A person who is not required to report for work at his or her employer's establishment or is required to report to establishments in different provinces is deemed to be employed in the province where the employer's establishment is located and from which the person's remuneration is paid.

(9) The following pension legislation applies to determine the benefit entitlement of a member of a pension plan whose membership terminates:

(

a) subject to paragraphs (

c) and (d), if the province in which the member was last employed is a reciprocal jurisdiction or a multilateral jurisdiction, the pension legislation of that province;

(

b) subject to paragraphs (

c) and (d), if the jurisdiction in which the member was last employed is neither a reciprocal jurisdiction nor a multilateral jurisdiction, the pension legislation of the reciprocal jurisdiction or multilateral jurisdiction in which the member was last employed;

(

c) subject to paragraph (d), if

(

i) the member is a member of a collectively bargained multi-employer plan that is registered in a reciprocal jurisdiction or a multilateral jurisdiction other than British Columbia ("the extraprovincial plan"),

(ii) the member works for a time with a participating employer in a collectively bargained multi-employer plan registered in British Columbia ("the British Columbia plan"), and

(iii) there is an agreement between the administrator of the extraprovincial plan ("the extraprovincial administrator") and the administrator of the British Columbia plan ("the British Columbia administrator") that contributions for the member will be forwarded from the British Columbia administrator to the extraprovincial administrator for so long as the member works with a participating employer in the British Columbia plan,

the pension legislation that, under the extraprovincial plan, is applicable to the member;

(

d) if the member was last employed in federally regulated employment, the Pension Benefits Standards Act, 1985 (Canada).

Application to public sector pension plans

2 For greater certainty,

(

a) this Act applies to a public sector pension plan unless the public sector pension plan is specifically exempted under this Act, and

(

b) if there is a conflict between this Act, or a regulation made under this Act, and another enactment establishing or referring to a public sector pension plan, this Act, or the regulation made under this Act, prevails.

Application to plans for connected persons

3 Except as provided in the regulations, this Act and the regulations 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 Income Tax Regulations (Canada).

Part 2 – Superintendent of Pensions

Appointment and duties of Superintendent of Pensions

(1) The Lieutenant Governor in Council may appoint as Superintendent of Pensions a person appointed under the Public Service Act .

(2) The superintendent is charged with the administration and enforcement of this Act.

(3) The superintendent may designate a person who, in the absence of the superintendent, exercises the powers and performs the duties of the superintendent.

Superintendent's authority to extend time limits

(1) If the superintendent considers that there are extenuating reasons, the superintendent may, on request from the administrator of a pension plan, extend a period of time imposed under this Act within which or by which some act must be done.

(2) A request under subsection (1)

(

a) must be made in the form and manner determined by the superintendent, and

(

b) may be made before or after the expiry of the time within which or by which the act is to be done.

6 The superintendent may impose conditions on any approval, authorization, extension, consent or permission given by the superintendent under this Act.

Personal liability protection

(1) In this section, "protected individual" means an individual who is or was any of the following:

(

a) the superintendent;

(

b) a person designated under

section 4 (3) or under paragraph (

b) of the definition of "authorized person";

(

c) an individual acting on behalf of or under the direction of the superintendent.

(2) Subject to subsection (3) of this section, no legal proceeding for damages lies or may be commenced or maintained against a protected individual because of anything done or omitted

(

a) in the exercise or intended exercise of any power under this Act, or

(

b) in the performance or intended performance of any duty under this Act.

(3) Subsection (2) does not apply to a protected individual in relation to anything done or omitted in bad faith.

(4) Subsection (2) does not absolve the government from vicarious liability arising out of anything done or omitted by a protected individual for which the government would be vicariously liable if this

section were not in force.

Part 3 – Pension Plan Requirements

General requirements of plan text documents

(1) Subject to this Part, there must be created for a pension plan a record that, in accordance with this Act and the regulations, provides for the following:

(

a) the administration and maintenance of the plan;

(

b) who is to pay the administration and investment expenses of the plan;

(

c) that the pension fund must be held and invested in accordance with this Act and regulations;

(

d) the conditions for membership in the plan;

(

e) benefits and entitlements on

(

i) termination of active membership,

(ii) death,

(iii) pension commencement dates, and

(iv) termination of the plan;

(

f) the deadline for selecting any option and the consequences of not meeting the deadline;

(

g) how interest is to be calculated on, and when interest is to be credited to or debited from, the contributions referred to in

section 61 (a);

(

h) the treatment and allocation of actuarial excess and surplus;

(

i) the method for determining benefits, member and participating employer contributions and the allocation of contributions, which method must use formulas that comply with the prescribed criteria;

(

j) the method for converting optional ancillary contributions to optional ancillary benefits;

(

k) any other matter that under this Act must be included in a plan text document.

(2) If, under a plan text document, it is possible for a lump sum to become payable to a person, the plan text document must provide that, when the lump sum is payable, that sum may, if and to the extent that the Income Tax Act (Canada) allows, be transferred to an RRSP, with or without conditions, at the option of the person to whom the lump sum is payable.

(3) Unless the plan documents of a pension plan specifically provide otherwise, the administration and investment expenses of the plan may be paid from the plan's pension fund.

Plan text documents to reflect Act provisions

(1) In this section, "applicable provision" means any of the following:

(

a) this Part;

(

b) Part 5;

(

c) Part 7;

(

d) Division 1, 4 or 7 of

Part 8;

(

e) section 40, 68, 69, 70 or 107;

(

f) a regulation made under

section 133 (2) (d).

(2) The plan text document of a pension plan must,

(

a) for each benefit contemplated or made available under an applicable provision, for each contribution or obligation required under an applicable provision and for each entitlement or right provided by an applicable provision, include a provision that provides for

(

i) that benefit, contribution or other entitlement or obligation, or

(ii) a benefit, contribution or other entitlement or obligation that is more favourable, having regard to the intent of this Act, to persons who may receive a benefit under the plan, and

(

b) for each term defined in

section 1 that applies to the plan, set out the term's definition.

(3) Despite subsection (2) of this section, the plan text document of a pension plan need not include or incorporate a provision referred to in subsection (2) (a) (

i) or a more favourable provision under subsection (2) (a) (ii) if,

(

a) in the opinion of the superintendent, the provision referred to in subsection (2) (a) (

i) is not and will not be applicable to the plan, and

(

b) on application by the administrator, the superintendent expressly indicates that the plan text document need not include or incorporate the provision referred to in subsection (2) (a) (i).

(4) To the extent that a plan text document

(

a) does not include a provision referred to in subsection (2) (a) (

i) or a more favourable provision under subsection (2) (a) (ii), and

(

b) is not exempted under subsection (3) from including such a provision,

the plan text document is deemed to include the provision referred to in subsection (2) (a) (i).

(5) Nothing in subsection (4) precludes the superintendent from directing the administrator of a pension plan to amend the plan text document of the plan to expressly incorporate the provision that the plan is deemed by subsection (4) to include.

(6) The absence from a plan text document of a provision referred to in subsection (3) does not affect the application or possible application of that provision to the pension plan.

Provisions relating to gender

(1) The plan documents of a pension plan must not provide for or allow any of the following:

(

a) different rates or amounts of contributions by the members based on differences in gender;

(

b) different pensions, annuities or benefits based on differences in gender;

(

c) different options as to pensions, annuities or benefits based on differences in gender;

(

d) inclusion in or exclusion from membership in the plan on the basis of gender.

(2) In order to comply with subsection (1), the plan documents may provide for

(

a) a prescribed method of calculation or valuation, or

(

b) a unisex mortality table.

Fiscal year of plan

(1) Unless otherwise provided in the plan text document of a pension plan, the fiscal year of the plan is January 1 to December 31 in each year.

(2) The fiscal year of a pension plan must not be longer than 12 months without the written consent of the superintendent.

Part 4 – Registration and Amendment of Pension Plans

Division 1 – Registration of Pension Plans

Restrictions on administration of plans

(1) An administrator must not administer a pension plan unless

(

a) the plan is registered,

(

b) an application for registration of the plan has been filed and the administrator has not received a written notice under

section 125 (2) that the superintendent refuses to register the plan, or

(

c) the administrator is otherwise entitled, under

section 126 (4) (a), to administer the plan.

(2) Subsection (1) does not prevent administration of a pension plan during the prescribed period after the establishment of the plan.

Application for registration of plans

13 The administrator of a pension plan must, within the prescribed period after the establishment of the plan, apply for registration of that plan by filing an application, in the form and manner required by the superintendent, with the following:

(

a) a certified copy of

(

i) the plan text document,

(ii) the record that authorizes the establishment of the plan or under which the plan is established or, if the record applies to more than the establishment of the plan, the portion of the record that applies to the establishment of the plan,

(iii) each trust deed or trust agreement, insurance contract, bylaw and resolution relating to the plan,

(iv) in the case of a non-collectively bargained multi-employer plan, the participation agreement referred to in

section 36 (1) (a),

(

v) the list referred to in

section 36 (1) (b), and

(vi) any other records required by the superintendent;

(

b) if the plan text document of the plan contains a benefit formula provision,

(

i) an actuarial valuation report that meets the requirements of

section 38 (1) (b) (i), and

(ii) a cost certificate, in the form required by the superintendent, that meets the requirements of

section 38 (1) (b) (ii);

(

c) a statement in the prescribed form that,

(

i) in the opinion of the administrator, the plan documents comply with this Act and the regulations, and

(ii) the following have been established in relation to the plan:

(

A) a governance policy that meets the requirements of

section 42 (1);

(

B) a statement of investment policies and procedures that meets the requirements of

section 43 (1);

(

C) a funding policy that meets the requirements of

section 44.

Superintendent must register plan in appropriate circumstances

14 Unless the superintendent is of the opinion that the records filed under

section 13 in relation to a pension plan do not comply with this Act and the regulations, the superintendent must

(

a) register the plan, and

(

b) issue to the administrator a certificate of registration for the plan.

If application refused or withdrawn

15 If the superintendent refuses to register a pension plan or if the application to register a pension plan is withdrawn before registration of the plan, there must be returned, to each person who made contributions to the plan, the amount of those contributions

(

a) plus interest on the person's contributions, and

(

b) less that person's proportionate share of any reasonable expenses incurred in relation to the application for registration and the return of contributions.

Superintendent may cancel plan registration

16 The superintendent may cancel the registration of a pension plan that has terminated and been wound up in accordance with this Act and the regulations.

Division 2 – Amendment of Plan Text Documents

Restrictions on administration of plan if plan

text document amended

17 Without limiting

section 19 (b), an administrator must not administer a pension plan in a manner that reflects an amendment to the plan text document unless

(

a) the application for registration of the amendment has been filed and the administrator has not received a written notice under

section 125 (2) that the superintendent refuses to register the amendment, or

(

b) the administrator is otherwise entitled, under

section 126 (4) (b), to administer the plan in that manner.

Filings required for registration of amendment

to plan text documents

18 If an amendment is made to the plan text document of a pension plan, the administrator must, within the prescribed period and in the form and manner required by the superintendent, file

(

a) a certified copy of the amendment,

(

b) a statement in the prescribed form that, in the opinion of the administrator, the amendment complies with this Act and the regulations, and

(

c) any other records required by the superintendent.

Restrictions on administration of plan if

amendments severed

19 If, under

section 22 (3), the superintendent has severed a portion of an amendment to the plan text document of a pension plan, the administrator of the plan

(

a) must administer the plan in a manner that reflects the remaining portion of the amendment, and

(

b) must not administer the plan in a manner that reflects the severed portion of the amendment unless the administrator is entitled, under

section 126 (4) (b), to administer the plan in a manner that reflects the amendment including the severed portion.

Restrictions on amendments to reduce benefits

(1) An amendment to the plan text document of a pension plan must not

(

a) reduce a person's benefits relating to employment in which the person engaged on or after the initial legislation date and before the later of the date on which the records referred to in

section 18 are filed in relation to the amendment and the effective date of the amendment,

(

b) reduce a person's benefits in respect of remuneration, employment or membership before January 1, 1966 by taking into account the person's pension under the CPP Act or the QPP Act, or

(

c) reduce a person's ancillary benefits if the person has met all the requirements of the plan text document that are necessary to exercise the right to receive the benefit.

(2) Despite subsection (1), the administrator of a pension plan,

(

a) if the plan is either a negotiated cost plan or a jointly sponsored plan and the plan text document of the plan does not contain a target benefit provision, may, with the written consent of the superintendent, amend the plan text document to reduce benefits if the circumstances of the plan require reduced benefits,

(

b) if the plan text document of the plan contains a target benefit provision, must, in the prescribed circumstances and within the prescribed period, amend the plan text document to do one or more of the following:

(

i) reduce or eliminate the ancillary benefits under the plan in accordance with

section 82 (3);

(ii) reduce the benefit that, under the target benefit provision, was intended to be paid, which reduction may but need not apply to accrued benefits;

(iii) increase the amount of the contributions payable under the plan, or

(

c) may amend the plan text document to reduce benefits if the amendment is for the purpose of compliance with the Income Tax Act (Canada).

Amendment to temporarily improve benefits

under target benefit provision

(1) In this section, "temporary improvement in benefits" , in relation to a target benefit provision, means a temporary increase to the pensions to which retired members are entitled under the provision.

(2) If the plan text document of a pension plan contains a target benefit provision, that plan text document may, in the prescribed circumstances, be amended to provide, for not longer than the period within which those prescribed circumstances continue to exist, a temporary improvement in benefits.

(3) If the superintendent is of the opinion that the prescribed circumstances referred to in subsection (2) no longer exist, the superintendent may direct the administrator to cease providing the temporary improvement in benefits referred to in the amendment.

Superintendent must register amendment to plan

text document in appropriate circumstances

(1) After the filing, under

section 18, of a certified copy of an amendment to the plan text document of a pension plan, the superintendent, subject to subsection (2) of this section, must

(

a) register the amendment, and

(

b) issue to the administrator a notice of registration for the amendment.

(2) Without limiting any other basis on which the superintendent may refuse to register an amendment to the plan text document of a pension plan, the superintendent may refuse to register the amendment

(

a) if the superintendent is of the opinion that the amendment does not comply with this Act and the regulations,

(

b) if the superintendent is of the opinion that the administrator has not complied with this Act in respect of the amendment, or

(

c) in the prescribed circumstances.

(3) For the purposes of this section, the superintendent may sever from an amendment referred to in subsection (1) that portion of the amendment that does not comply with this Act and the regulations, and register in accordance with subsection (1) the remaining portion of the amendment.

Revocation of registration of amendment

(1) The superintendent may revoke the registration of an amendment to a plan text document if the amendment does not comply with this Act or the regulations.

(2) A revocation under subsection (1) has effect from a date that is not earlier than the date determined by the superintendent to be the date on which the non-compliance under subsection (1) occurred or began.

Transactions may be reversed

24 If an amendment to the plan text document of a pension plan has been filed for registration and the superintendent notifies the administrator of the plan in writing that the registration of the amendment has been refused or revoked, the superintendent may

(

a) direct that all or part of the refusal or revocation has retroactive effect, and

(

b) direct the administrator to reverse any transactions that were based on the assumption that the amendment would be registered or would remain registered, as the case may be.

Division 3 – Amendment of Supporting Plan Documents

Restrictions on administration of plan if supporting

plan document amended

25 An administrator must not administer a pension plan in a manner that reflects an amendment to a supporting plan document unless a certified copy of a record setting out the amendment has been filed.

Amendment to supporting plan documents

(1) If an amendment is made to a supporting plan document, the administrator must, within the prescribed period and in the form and manner required by the superintendent, file

(

a) a certified copy of a record setting out the amendment,

(

b) a statement in the prescribed form that, in the opinion of the administrator, the amendment complies with this Act and the regulations, and

(

c) any other records required by the superintendent.

(2) If a new supporting plan document is made, whether or not it replaces an existing supporting plan document, subsection (1) applies as if the new supporting plan document were an amendment to a supporting plan document.

Division 4 – Registration of Plan or Amendment

Effective date of plan or amendment

(1) Subject to

section 20 (1), a pension plan or an amendment to the plan text document of a pension plan may be made effective on a date that is before, on or after the date on which the plan or amendment is registered.

(2) An amendment to a supporting plan document may be made effective on a date that is before, on or after the date on which a certified copy of a record setting out the amendment is filed.

Designation of plan

28 On or after the registration of a pension plan or of an amendment to the plan text document of a pension plan, the superintendent may designate the plan as a collectively bargained multi-employer plan, a non-collectively bargained multi-employer plan or a single employer plan.

Part 5 – Membership in Pension Plans

Entitlement of employees to join plan

(1) Each employee in each class of employees for whom a pension plan is maintained is, on application, entitled to become a member of the plan if,

(

a) in the case of a single employer plan,

(

i) the employee has completed 2 years of employment with the participating employer, including any temporary absences from that employment in that period, and has not, during that 2-year period, ceased to be employed by that participating employer, and

(ii) the employee has earned from that employment, in each of 2 consecutive calendar years, not less than 35% of the Year's Maximum Pensionable Earnings,

(

b) in the case of a non-collectively bargained multi-employer plan,

(

i) the employee has completed 2 years of employment with a participating employer, or if the plan text document of the plan allows, with 2 or more participating employers, including any temporary absences from that employment in that period, and has not, during that 2-year period, ceased to be employed by the participating employer or participating employers, and

(ii) the employee has earned from that employment, in each of 2 consecutive calendar years, not less than 35% of the Year's Maximum Pensionable Earnings, or

(

c) in the case of a collectively bargained multi-employer plan,

(i) 2 years have elapsed since the employee was first employed with a participating employer, and

(ii) the employee has earned from employment with one or more participating employers, in each of 2 consecutive calendar years, not less than 35% of the Year's Maximum Pensionable Earnings.

(

a) the employee must be a member of the plan, or

(

b) the employee becomes a member of the plan if the employee

(

i) receives prescribed notice, and

(ii) does not, within the prescribed period after receiving that notice, elect in the prescribed manner not to be a member.

(3) If an employee is eligible to join 2 or more of his or her employer's pension plans the plan text documents of one or more of the plans may limit the employee's eligibility for membership to only one of those plans.

Dispute as to member of class of employees

30 If there is a dispute as to whether or not an employee is a member of a class of employees for whom a pension plan is established or maintained and the superintendent is of the opinion that, based on the nature of the employment or of the terms of employment of the employee, the employee is a member of that class, the superintendent may require the administrator to accept the employee as a member.

Suspension of membership

(1) The plan text document of a pension plan may provide that an active member may suspend his or her membership in the plan while continuing to do work, or to provide a service, in an employment covered by the plan.

(2) If the plan text document of a pension plan allows an active member to suspend his or her membership,

(

a) it may provide that there will be no accrual of benefits during the suspension, and

(

b) it must provide that the suspended member has the right to lift the suspension at any of the times prescribed.

(3) If a person suspends his or her membership in a pension plan,

(

a) the suspended member is not entitled to receive or transfer any benefits from the plan until the plan, or his or her membership in the plan, is terminated and

(

b) the suspension of membership does not constitute a termination of active membership.

Vesting of pension

(1) If a member's termination of active membership in a pension plan occurs while the member is employed in British Columbia in employment other than federally regulated employment, there immediately vests in the member, despite any other enactment or any provision of the plan documents, an entitlement to receive a pension in respect of the entire period during which he or she was an active member of the plan, whether or not the member was employed in British Columbia during all of that period.

(2) The pension payable to a member under subsection (1) must not be less than the pension that, under the terms of the plan text document as it read at the date of the member's termination of active membership, is payable for that employment.

Part 6 – Administration of Pension Plans

Division 1 – Plan Requirements

Plan requirements

33 Every pension plan must have

(

a) an administrator who meets the applicable prescribed criteria,

(

b) at least one participating employer, and

(

c) a fundholder.

Retention of records

34 An administrator of a pension plan, a participating employer, a fundholder and any other prescribed person who has within the person's custody or control any record relating to the plan must, subject to and in accordance with the regulations, retain the record or a copy of it in Canada.

Division 2 – Administrator

Responsibilities of administrator

(1) The administrator of a pension plan must ensure that the plan and the pension fund are administered in accordance with this Act, the regulations and the plan documents.

(2) While acting in the capacity of administrator of a pension plan, the administrator stands in a fiduciary capacity in relation to

(

a) the members, and

(

b) others entitled to benefits.

(3) Without limiting subsection (2), the administrator, while acting in the capacity of administrator of a pension plan, must

(

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

(

i) the members, and

(ii) others entitled to benefits and

(

b) exercise the care, diligence and skill that a person of ordinary prudence would exercise when dealing with the property of another person.

(4) The administrator of a pension plan, or, if the administrator is a board of trustees, a member of that board, must not, while acting in the capacity of administrator, knowingly allow his or her interests to conflict with the administrator's powers and duties in respect of the plan.

(5) For the purpose of subsection (4), an administrator does not knowingly allow the interests of the administrator to conflict with the administrator's powers and duties in respect of the pension plan merely because the administrator is or may become entitled to a pension or other benefit under the plan.

(6) In addition to any other responsibilities under this Act, the administrator of a pension plan must

(

a) ensure that the plan documents comply with this Act and the regulations,

(

b) if the plan is terminated, ensure that the plan is wound up in accordance with this Act and the regulations,

(

c) ensure that any agreement respecting the transfer of money or benefits between the plan and any other pension plan does not contain any provision, relating to a benefit, that a pension plan is prohibited by this Act from containing, and

(

d) perform any other duties the administrator is obligated under the regulations to perform.

(7) If an administrator employs an agent to exercise one or more of the powers or perform one or more of the duties of the administrator, the administrator must

(

a) be satisfied that the agent is qualified to exercise the powers or perform the duties for which the agent is employed, and

(

b) carry out reasonable and prudent supervision of the agent.

Administrator must enter into participation agreement

(1) The administrator of a non-collectively bargained multi-employer plan must

(

a) enter into a written participation agreement with the participating employers in the plan, which agreement must

(

i) meet the prescribed criteria, and

(ii) provide for the roles and responsibilities of the parties to the agreement, and

(

b) prepare a list of all participating employers who have signed that agreement.

(2) An administrator referred to in subsection (1) must notify the superintendent of any participating employer who, after the agreement has been filed, signs the agreement or ceases to be a party to the agreement.

Administrator must disclose information and records

(1) Subject to and in accordance with the regulations, the administrator of a pension plan must, without charge, provide prescribed information, including records,

(

a) to members,

(

b) if a member who is entitled to a benefit is deceased, to whichever of the following is entitled to receive the benefit:

(

i) the surviving spouse of the deceased;

(ii) the person who is, in relation to the benefit, the designated beneficiary,

or, if no person referred to in subparagraph (

i) or (ii) is entitled to the benefit, the personal representative of the estate of the deceased,

(

c) to employees who are, or are about to be, eligible to become active members of the plan, and

(

d) to prescribed persons.

(2) Subject to and in accordance with the regulations, if any of the persons referred to in paragraph (a), (b), (

c) or (

d) of subsection (1) requests access to prescribed information, the administrator of the pension plan in relation to which the request was made must, at the option of the administrator, either

(

a) allow the person to examine the prescribed information without charge at a prescribed place, or

(

b) provide to the person, without charge, a copy of the prescribed information that the person has requested.

(3) The requirements of subsections (1) and (2) are met if

(

a) the person entitled to disclosure consents to accept electronic delivery of the prescribed information, and

(

b) the administrator makes the prescribed information accessible electronically, without charge, and delivers to the person entitled to disclosure any information necessary for that person to be able to access the prescribed information.

(4) Despite subsections (1) and (2) (a), if a person who is allowed to examine information in accordance with subsection (2) (

a) instead requests, in writing, a copy of the information, the administrator must, within the prescribed period, provide a copy of the information to that person on payment of a charge not exceeding the reasonable costs incurred in making and providing the copy.

(5) Subject to and in accordance with the regulations, an administrator of a pension plan, after receiving a written request from

(

a) a participating employer in the plan,

(

b) a trade union whose membership includes or consists of members of the plan, or

(

c) a prescribed person,

must provide to the requesting person or body a copy of any prescribed record on payment of a charge not exceeding the reasonable costs incurred in making and providing the copy.

(6) Unless otherwise directed by the superintendent, an administrator is not required to comply with a person's request under subsection (2), (4) or (5) for information if the administrator has already provided that information to that person in compliance with a request made under one of those subsections within the 12 months immediately preceding receipt of the most current request.

Administrator must file reports and returns

(1) Subject to this section, the administrator of a pension plan must, at the times prescribed and in the form and manner required by the superintendent, file

(

a) returns containing prescribed information relating to the plan,

(

b) if the plan text document of the plan contains a benefit formula provision,

(

i) actuarial valuation reports that

(

A) contain the prescribed information,

(

B) are prepared by a Fellow of the Canadian Institute of Actuaries,

(

C) are prepared on the prescribed basis and on the basis of actuarial assumptions and methods that are appropriate and in accordance with accepted actuarial practice,

(

D) identify the contributions that are sufficient to meet the funding requirements applicable to the plan,

(

E) are satisfactory to the superintendent, and

(

F) if applicable, contain a certification by the preparer that the results of the independent valuation prepared under subsection (2) (

b) have been incorporated into the report, and

(ii) cost certificates that

(

A) are signed by a Fellow of the Canadian Institute of Actuaries,

(

B) are satisfactory to the superintendent,

(

C) include information necessary for the superintendent to be able to determine whether the plan will meet the funding requirements applicable to the plan, and

(

D) contain prescribed information, and

(

c) prescribed financial statements prepared in accordance with prescribed standards.

(2) Subject to this section, at the written request of the superintendent, the administrator of a pension plan must file any record required by the superintendent at the time or times, and in the form and manner, required by the superintendent, including, without limitation, the following:

(

a) if contributions to or benefits from the plan are determined under the provisions of a collective agreement or an arbitration award, a copy of those provisions and of any amendments to them;

(

b) an independent valuation of the market value of the plan's assets or of a specific asset or category of assets;

(

c) an actuarial valuation report and a cost certificate, prepared as at a date specified by the superintendent, that meet the requirements of subsection (1) (b).

(3) If the superintendent considers that the actuarial valuation report or cost certificate filed by an administrator under subsection (1) (

b) or (2) (

c) does not comply with the subsection under which it is filed,

(

a) the superintendent must notify the administrator, in writing, of that fact, and

(

b) the administrator must promptly have the report or certificate amended to comply with the subsection under which it is filed.

Administrator must disclose insolvency proceedings

39 If there is, in respect of a participating employer in a pension plan other than a collectively bargained multi-employer plan, a proceeding

(

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

(

b) under the Winding-up and Restructuring Act (Canada) or similar provincial legislation,

(

c) in relation to liquidation, receivership or secured creditor enforcement, or

(

d) under the Bankruptcy and Insolvency Act (Canada),

the administrator of the plan must, immediately after becoming aware of the commencement of the proceeding, provide to the superintendent written notice of that proceeding.

Repayment of contributions or transfer of benefits

40 If a person becomes entitled or obligated to receive a lump-sum payment or a transfer of benefits from a pension plan, the administrator must make the payment or transfer within the prescribed period.

Review of plan

(1) The administrator of a pension plan must, at the times and in the manner required by the regulations, assess the administration of the plan including, without limitation,

(

a) the plan's compliance with this Act and the regulations,

(

b) the plan's governance,

(

c) the funding of the plan,

(

d) the investment of the pension fund,

(

e) the performance of the trustees, if any, and

(

f) the performance of the administrative staff and any agents of the administrator.

(2) An administrator must prepare the assessment required under subsection (1) in writing and must retain that written assessment and make it available to the superintendent on the superintendent's request.

Division 3 – Administrator Must Ensure Policies Established

Administrator must ensure governance policy established

(1) The administrator of a pension plan must ensure that a written governance policy that meets the prescribed criteria is established in respect of the structures and processes for overseeing, managing and administering the plan.

(2) The administrator of a pension plan must ensure that the plan is administered in accordance with the governance policy established under subsection (1).

Administrator must ensure statement of investment

policies and procedures established

(1) The administrator of a pension plan must ensure that a written statement of investment policies and procedures that meets the prescribed criteria is established in respect of the plan's portfolio of investments.

(2) The administrator of a pension plan must ensure that the pension fund is invested in accordance with the statement of investment policies and procedures established under subsection (1).

(3) If the plan text document of a pension plan contains a benefit formula provision, the administrator of the plan must provide, to the actuary engaged to prepare the actuarial valuation report for the plan under

section 38, a copy of the statement of investment policies and procedures on or before the later of

(

a) the date that is 60 days after the establishment or amendment of the statement, and

(

b) the effective date of the actuary's engagement.

Administrator must ensure funding policy established

44 If the plan text document of a pension plan contains a benefit formula provision, the administrator of the plan must

(

a) ensure that a written funding policy is established that meets the prescribed criteria respecting funding objectives and the intended method for achieving those objectives, and

(

b) provide, to the actuary engaged to prepare the actuarial valuation report for the plan, a copy of the funding policy on or before the later of

(

i) the date that is 60 days after the establishment or amendment of the funding policy, and

(ii) the effective date of the actuary's engagement.

Division 4 – Participating Employers

Funding responsibilities of participating employer

(1) The participating employers in a pension plan must comply with the funding requirements applicable to the plan.

(2) Without limiting subsection (1), the participating employers in a pension plan must, in accordance with

section 56, the regulations and the plan documents, remit to the pension fund the contributions that are required to meet the funding requirements applicable to the plan.

Participating employer must provide information

and records to administrator

(1) On the written request of the administrator of a pension plan, a participating employer or former participating employer must, within any reasonable period that is specified in the request, provide the administrator with information or records required by the administrator for the purpose of administering the plan in compliance with this Act, the regulations and the plan documents.

(2) A request under subsection (1) must specifically identify the information or records required under that subsection.

(3) If the participating employer or former participating employer requests that any records provided under subsection (1) be returned, the administrator must return those records within a reasonable period.

(4) The administrator may make copies of or take extracts from any records provided under subsection (1).

Trust agreement applies to all participating employers

47 Despite any other law, if a multi-employer plan has been established by or under a trust agreement, the participating employers in the plan are bound by the trust agreement and any amendments to it, whether or not they were parties to the agreement under which the trust was established or amended.

Participating employer must enter into participation agreement

48 An employer must, within the prescribed period after becoming a participating employer in a non-collectively bargained multi-employer plan, enter into a participation agreement, with the administrator, that complies with

section 36 (1).

Compelling compliance

(1) If a participating employer does not comply with a requirement of

section 46, the administrator may apply to the court for an order to compel compliance and, in that event, must give notice of the application to the superintendent in addition to any other notice that must be provided under the Rules of Court.

(2) The court may, subject to any conditions that the court considers appropriate, make an order compelling the participating employer to comply with

section 46 if the court is satisfied that the information or records requested by the administrator are

(

a) within the participating employer's possession, power or control, and

(

b) required for the purpose referred to in

section 46 (1).

Division 5 – Fundholders

Who may act as fundholder

(1) In this section, "significant shareholder" , in relation to a participating employer that is a corporation, means an individual who, alone or in combination with his or her parent, brother, sister, spouse or child, owns or has, directly or indirectly, a beneficial interest in shares that represent 10% or more of the voting entitlement attached to all the shares of the participating employer.

(2) The pension fund of a pension plan must be held by

(

a) an insurance company under an insurance contract,

(

b) a trust in Canada governed by a written trust agreement under which the trustees are

(

i) a trust company, or

(ii) 3 or more individuals

(

A) at least 3 of whom reside in Canada, and

(

B) at least one of whom is not a significant shareholder, partner or employee of a participating employer or a proprietor of the business of a participating employer,

(

c) a board, agency, commission, corporation or other entity that, under an enactment, is responsible for holding the pension fund,

(

d) a prescribed person or entity, or

(

e) a combination of the persons or entities referred to in paragraphs (

a) to (d).

Responsibilities of fundholders

51 The fundholder of a pension plan must

(

a) hold the pension fund in accordance with this Act and the regulations, and

(

b) perform any other duties provided for in this Act and the regulations.

Part 7 – Funding, Contributions and Assets

Division 1 – Funding of Plan

Funding requirements for benefit formula provisions

(1) This

section applies only to plan text documents that contain a benefit formula provision.

(2) The plan text document of a pension plan must provide that the plan must be funded by the participating employers, or in the case of a jointly sponsored plan, by the participating employers and the active members, in accordance with

(

a) the funding requirements prescribed for the purposes of this section, and

(

b) the most current actuarial valuation report and cost certificate, filed in relation to the plan, as amended in accordance with any direction of the superintendent under

section 38 (3).

(3) For a negotiated cost plan, the liability of a participating employer, or in the case of a pension plan in which liability for funding benefits under the plan is shared between the participating employers and the active members, the liability of the participating employers and the active members, for funding the benefits under the plan is limited to the amount that the participating employer is, or the participating employers and active members are, contractually required to contribute to the plan.

(4) For a pension plan, the plan text document of which contains a target benefit provision, the liability of a participating employer, or in the case of a pension plan in which liability for funding benefits under the plan is shared between the participating employers and the active members, the liability of the participating employers and the active members, for funding the benefits under the target benefit provision is limited to the amount that the participating employer is, or the participating employers and active members are, contractually required to contribute to the plan.

Funding requirements for defined contribution provisions

53 If the plan text document of a pension plan contains a defined contribution provision, the participating employers in the plan must fund the plan in accordance with the contributions required by the plan documents.

Solvency reserve account

(1) In this section, "solvency reserve account" means the separate account set up under subsection (2).

(2) If the plan text document of a pension plan contains a benefit formula provision, other than a target benefit provision, the administrator may set up a separate account within the plan's pension fund.

(3) The only funds that may be deposited to a solvency reserve account are payments made in respect of a solvency deficiency.

(4) Without limiting subsection (3), assets must not be transferred from an account in a pension fund to a solvency reserve account in the same pension fund.

(5) Despite any wording in the plan text document of a pension plan, prescribed actuarial excess in the solvency reserve account may be withdrawn, subject to and in accordance with the regulations, by a prescribed person.

Letters of credit

(1) The participating employers in a pension plan, other than participating employers in a collectively bargained multi-employer plan, may, instead of making some or all of the payments required with respect to a solvency deficiency, provide to the fundholder a letter of credit made out to the fundholder for the benefit of the plan, but only if the letter of credit and the bank or credit union obligated under the letter of credit satisfy the prescribed criteria.

(2) A fundholder to which a letter of credit is provided under subsection (1) holds the letter of credit in trust for members of the pension plan, and for any other persons entitled to benefits under the plan, in accordance with their respective interests under that plan.

(3) In prescribed circumstances, the fundholder must demand payment of the amount of the letter of credit into the pension fund by the issuer of that letter of credit.

Division 2 – Contributions to Plan

Remitting of contributions

(1) The participating employers in a pension plan must, within the prescribed period, remit member and participating employer contributions due to the pension fund as follows:

(

a) in the case of a single employer plan, to the fundholder;

(

b) in the case of a collectively bargained multi-employer plan, to the administrator;

(

c) in the case of a non-collectively bargained multi-employer plan, to the administrator or the fundholder as set out in the plan text document.

(2) If the administrator of a multi-employer plan is not the fundholder, the administrator must, promptly after receiving contributions remitted under subsection (1) (

b) or (c), remit the contributions to the fundholder.

(3) If the participating employers do not remit contributions in compliance with subsection (1) within 30 days after the end of the prescribed period referred to in that subsection, the administrator or the fundholder to whom the contributions ought to have been remitted must, within 15 days, provide to the superintendent, whether or not the contributions were subsequently remitted, a written notice

(

a) advising of the failure of the participating employers to remit,

(

b) setting out any other information required by the regulations, and

(

c) setting out any other information necessary to allow the superintendent to exercise his or her powers or perform his or her duties under this Act.

(4) Subsection (3) does not apply to a collectively bargained multi-employer plan.

(5) The administrator of a single employer plan must provide to the fundholder, at the prescribed time and in the form required by the superintendent, a

summary of the contributions required to be made in respect of the plan.

Maximum employee contributions for funding

pension under benefit formula provision

(1) This

section applies to contributions applicable to, and to benefits under, a benefit formula provision, other than contributions and benefits under a jointly sponsored plan.

(2) Subject to subsections (3), (5), (6) and (7), if the total of

(

a) the contributions made by a member of a pension plan on and after the initial legislation date, and

(

b) the interest that has accrued on those contributions

exceeds 1/2 of the commuted value of that portion of the member's benefit that relates to his or her membership in the plan during the period in which the member was required to make contributions on and after the initial legislation date, the excess must be allocated or distributed if and in the manner required under subsection (4).

(3) Subsection (2) does not apply to the following contributions or to the benefits resulting from them:

(

a) additional voluntary contributions;

(

b) optional ancillary contributions;

(

c) contributions made to secure improvements in, or to purchase, benefits related to past service before or after the initial legislation date if the benefit improvement is provided entirely from the member's contributions;

(

d) contributions made by an active member of a collectively bargained multi-employer plan in any fiscal year of the plan to increase the pension to which the member is entitled up to the maximum allowed for that year.

(4) Subject to subsection (6), if the excess referred to in subsection (2) exists at one of the prescribed times, the excess must be allocated or distributed in whichever of the following manners the member elects:

(

a) paid as a lump sum to the member or to a person who is to receive a benefit under

section 79;

(

b) transferred to another pension plan, if and to the extent that the other plan allows the transfer;

(

c) transferred to an RRSP or RRIF;

(

d) transferred to an insurance company to purchase a deferred pension;

(

e) used to increase the amount of the pension, if and to the extent that the plan text document of the pension plan provides for that election.

(5) If the plan text document of a pension plan contains a benefit formula provision, the plan text document may provide, in relation to deferred members to whom the excess referred to in subsection (2) is to be allocated or distributed under subsection (4), that if such a member's pension commencement date does not immediately follow the termination of his or her membership or the conversion of the benefit formula provision to a defined contribution provision, the excess

(

a) is to be recalculated as of the member's pension commencement date, and

(

b) is not to be allocated or distributed until that recalculation is done.

(6) If a member to whom the excess referred to in subsection (2) is to be allocated or distributed dies before reaching his or her pension commencement date, the excess must be allocated or distributed as follows:

(

a) if there is a surviving spouse and both of the following apply:

(

i) the spouse had not provided a waiver under

section 79 (1) (

b) before the member's death;

(ii)

section 85.1 of the Family Relations Act does not apply to the spouse,

the excess must be allocated or distributed in whichever of the manners referred to in subsection (4) (

a) to (

e) of this

section that the spouse elects;

(

b) if there is a surviving spouse to whom paragraph (

a) of this subsection does not apply, or if there is no surviving spouse, the excess must be provided

(

i) to the designated beneficiary, or

(ii) if there is no designated beneficiary living, to the personal representative of the member's estate.

(7) If the plan text document of a pension plan contains a target benefit provision and a member of the plan who is eligible under

section 85 to elect a transfer under Division 7 of

Part 8 transfers an amount under

section 86 (b), the lump-sum payment to which the member is entitled under subsection (4) of this

section must be reduced in the prescribed manner.

Deemed trust

(1) A participating employer in a pension plan is deemed to hold the following in trust for members of the plan, and for any other persons entitled to benefits under the plan, in accordance with their respective interests under the plan:

(

a) all contributions that are due or owing to the plan by the participating employer;

(

b) all amounts that have been deducted by the participating employer from members' remuneration as contributions to the plan and that have not yet been remitted as required under

section 56 (1);

(

c) all contributions to the plan that have been received by the participating employer with respect to members and that have not yet been remitted as required under

section 56 (1).

(2) An administrator who is required to remit contributions under

section 56 (1) is deemed to hold in trust for the members of the pension plan and for the other persons entitled to benefits under the plan an amount equal to those contributions that remain to be so remitted.

(3) Subsections (1) and (2) apply whether or not the contributions have been kept separate and apart from other money or property of the participating employer or the administrator.

(4) If there is, in respect of a participating employer, a proceeding

(

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

(

b) under the Winding-up and Restructuring 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 (1) is deemed to be separate and apart from, and to form no part of, the estate of the participating employer, whether or not that amount has in fact been kept separate and apart from the participating employer's own assets or from the assets of the estate.

Refund of contributions to avoid revocation

59 Despite anything in this Act, the administrator of a pension plan may return to a person a contribution made by the person if

(

a) the superintendent consents, in writing, to the return after receiving

(

i) a written request from the administrator for the return, and

(ii) all supporting information required by the superintendent, and

(

b) the return is necessary to avoid the revocation of the plan's registration under the Income Tax Act (Canada).

Division 3 – Investing Plan Assets

Investment requirements

(1) Investments, including loans, and financial decisions respecting a pension plan must be made

(

a) in accordance with this Act and the regulations, and

(

b) in the best financial interests of plan members and other persons entitled to benefits under the plan.

(2) Pension plan assets must be invested in a manner that a reasonable and prudent person would adopt if investing the assets on behalf of a person to whom the investing person owed a fiduciary duty to make investments

(

a) without undue risk of loss, and

(

b) with a reasonable expectation of a return on the investments commensurate with the risk,

having regard to the plan's liabilities.

(3) Pension plan assets must be held and invested

(

a) in the name of the plan, or

(

b) in the name of a custodian or trustee in accordance with a custodial agreement, trust agreement or Act, in which case the custodial agreement, trust agreement or Act must clearly indicate that the investments are held for the benefit of the plan.

Interest, gains and losses on contributions and benefits

61 Interest, gains and losses, calculated in the prescribed manner, must be credited to or debited from the following at the prescribed rates and prescribed times:

(

a) all contributions to a pension plan, other than participating employer contributions required under a benefit formula provision;

(

b) the commuted value of benefits that are payable but not yet paid.

Division 4 – Use of Actuarial Excess and Surplus

Transfer of actuarial excess or surplus

(1) An administrator or a fundholder of a pension plan must not distribute any actuarial excess or surplus of the plan unless, in a distribution of actuarial excess, the conditions referred to in paragraphs (

a) to (

c) are met or, in a distribution of surplus, the conditions referred to in paragraphs (

a) to (

d) are met:

(

a) consent to the proposed distribution is obtained under subsections (3) and (4) or the plan text document of the plan provides for the distribution;

(

b) the administrator complies with the prescribed conditions;

(

c) the administrator receives written notice from the superintendent consenting to the distribution;

(

d) in the case of a distribution of surplus, all of the benefits to which members of the plan are entitled on the termination of the plan have been paid.

(2) If the plan text document of a pension plan provides for distribution of actuarial excess or surplus to members, the reference to members includes the spouses and designated beneficiaries of deceased members if those spouses and designated beneficiaries still have an entitlement to receive a benefit under the plan.

(3) If the plan text document of a pension plan does not clearly provide for the distribution of actuarial excess or surplus or to whom it may be distributed, the administrator may, subject to and in accordance with the regulations, present to the members and to the persons, if any, prescribed for the purposes of this subsection a proposal

(

a) to distribute actuarial excess or surplus to the person or persons, and on the basis, set out in the proposal, and

(

b) to seek the consent of the persons referred to in subsection (4) to the proposed distribution.

(4) If, after being presented with a proposal referred to in subsection (3), at least

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

(b) 2/3 of the group of persons comprising

(

i) deferred and retired members, and

(ii) the persons, if any, prescribed for the purposes of subsection

(3) notify the administrator, in writing, that they consent to the proposal, the participating employer may make written application to the superintendent for consent to the distribution of the actuarial excess or surplus.

(5) This

section applies despite the Trust and Settlement Variation Act .

Use of actuarial excess

(1) If an actuarial valuation report or cost certificate filed in relation to a pension plan reveals that the plan has actuarial excess, the actuarial excess may, subject to and in accordance with the regulations, be applied to do one or both of the following in relation to contribution funding requirements:

(

a) to reduce or eliminate contributions of the participating employers, or, in the case of a jointly sponsored plan, to reduce or eliminate contributions of the participating employers and the active members, that would otherwise be required to comply with the funding requirements applicable to the plan;

(

b) if the plan text document of the plan contains a benefit formula provision and a defined contribution provision, to reduce or eliminate contributions of the participating employers that are required in relation to the defined contribution provision,

unless the plan documents specifically provide that those contributions may not be reduced or eliminated by the use of actuarial excess.

(2) If the superintendent is of the opinion that it is appropriate to do so, the superintendent may direct the administrator to cease applying actuarial excess to reduce or eliminate contributions.

(3) Nothing in this

section precludes actuarial excess from being

(

a) left in the pension plan,

(

b) used to increase benefits, or

(

c) used or applied in any other way contemplated by the plan text document or under this Act.

Part 8 – Benefits and Transfers

Division 1 – Pension Eligibility Date

Age requirements of plan text document

(1) The plan text document of a pension plan must provide for

(

a) a specific age, or

(

b) a date, determined with reference to a specific age,

at which the members of the plan are entitled to start receiving a pension under the plan without reduction or increase to the pension.

(2) The plan text document of a pension plan must require an active member or a deferred member to start receiving his or her pension no later than the last date on which a person is allowed under the Income Tax Act (Canada) to start receiving a pension from a registered pension plan.

Pension may start before pension eligibility date

(1) A plan text document of a pension plan must allow a member to start receiving his or her pension on a reduced basis at any time within 10 years before he or she reaches the plan's pension eligibility date.

(2) A pension that starts before the pension plan's pension eligibility date may be reduced in comparison with what would have been payable had the pension started at the plan's pension eligibility date, but only if the actuarial present value of the reduced pension is at least equal to the aggregate of

(

a) the actuarial present value of the pension that would have been payable had the pension started at the plan's pension eligibility date, and

(

b) the actuarial present value of any other benefit to which the member would have been entitled had the member terminated active membership and elected to start to receive the pension at the plan's pension eligibility date.

If employment continues after pension eligibility date

(1) Subject to

section 73, the plan text document of a pension plan must provide that a member who has reached the plan's pension eligibility date may, for so long as he or she remains in an employment covered by the plan, continue to accrue benefits under the plan in the same manner and to the same extent as he or she could have done in that employment before reaching that date.

(2) Without limiting subsection (1), the plan text document may provide one or more of the following in relation to a member referred to in subsection (1):

(

a) that the member may, if he or she so elects in writing, cease accruing benefits and start receiving a pension;

(

b) that the member may, if he or she so elects in writing, cease accruing benefits and delay receiving a pension until a later age, in which case the pension must be actuarially increased to reflect the delay;

(

c) if and to the extent allowed by the Income Tax Act (Canada), that the member may, if he or she so elects in writing, start receiving a pension and continue to accrue benefits.

(3) A member referred to in subsection (1) must not select more than one of the options included in the plan text document under subsection (2).

Division 2 – Restrictions on Access to Benefits

Evidence of entitlement to benefit

(1) A person claiming to be entitled to receive a benefit under a pension plan has the onus of proving to the satisfaction of the administrator that the claimant is entitled to the benefit.

(2) The administrator may require the claimant to provide evidence to establish the claim, including evidence by way of affidavit, declaration or certificate.

Locking in commuted value of benefits

(1) Subject to Divisions 6 and 7 and sections 57 and 69, the commuted value of benefits that have been earned on and after the initial legislation date must be applied towards the provision of a pension and, except for that purpose,

(

a) a member must not withdraw, surrender or receive the commuted value of any or all of that portion of the commuted value of his or her benefits that relates to his or her membership in the pension plan on and after the initial legislation date, and

(

b) a surviving spouse entitled to a pension under

section 79 or 80 that relates to the deceased spouse's membership in the plan on and after the initial legislation date must not withdraw, surrender or receive the commuted value of any or all of those benefits.

(2) Subsection (1) applies to a spouse or former spouse in respect of a share of the pension received by the spouse under

Part 6 of the Family Relations Act .

Exceptions to locking in commuted value of benefits

(1) The plan text document of a pension plan must provide that a deferred member, or, if the deferred member is deceased, the deferred member's surviving spouse, is entitled to receive payment of a lump-sum amount equal to the total of the commuted values of the benefits to which the deferred member or surviving spouse is entitled under the plan if that total does not exceed the prescribed amount.

(2) The contract in relation to a locked-in retirement account or retirement income arrangement must provide that the owner of the account or arrangement, or, if the owner is deceased, the owner's surviving spouse, is, if the prescribed conditions are met, entitled to receive payment of a lump-sum amount equal to the commuted value of the benefit to which the owner or surviving spouse is entitled.

(3) The plan text document of a pension plan must provide the following:

(

a) if a member of the plan, other than a retired member in receipt of benefits under a benefit formula provision, who has a current entitlement to receive a benefit under the plan has an illness or a disability that is certified by a medical practitioner to be terminal or to likely shorten the member's life considerably, that member may, subject to and in accordance with the regulations,

(

i) elect to convert all or part of the benefit on the prescribed basis to a series of payments for a fixed term to that member, or

(ii) elect to withdraw as a lump sum an amount equal to the commuted value of the benefit or any lesser amount that the member may select;

(

b) a person who is entitled under Division 7 to receive a benefit under the plan may, subject to and in accordance with the regulations, withdraw as a lump sum an amount equal to the commuted value of the benefit on providing to the administrator written evidence that the Canada Revenue Agency has confirmed the person's status as a non-resident for the purposes of the Income Tax Act (Canada).

(4) If a benefit has been transferred to a locked-in retirement account or a retirement income arrangement, the contract for the locked-in retirement account or retirement income arrangement must provide the following:

(

a) if a person who is the owner of the account or arrangement has an illness or a disability that is certified by a medical practitioner to be terminal or to likely shorten the person's life considerably, the person may, subject to and in accordance with the regulations, withdraw all or part of the money held in the account or arrangement by way of a payment, or a series of payments for a fixed term, to that person;

(

b) a person who is the owner of the account or arrangement, or his or her surviving spouse, may, subject to and in accordance with the regulations, withdraw as a lump sum the money held in the account or arrangement on providing to the person who maintains the account or arrangement written evidence that the Canada Revenue Agency has confirmed the status of the owner or his or her surviving spouse as a non-resident for the purposes of the Income Tax Act (Canada);

(

c) if a person who is the owner of the account or arrangement is suffering from financial hardship, the person may, subject to and in accordance with the regulations, withdraw as a lump sum an amount, up to the prescribed amount, from the account or arrangement.

(5) If a person who is eligible to make an election under subsection (3) or (4) has a spouse, the person must not make that election unless the administrator, or, in the case of a locked-in retirement account or retirement income arrangement, the person who maintains the account or arrangement, has received a statement, by the spouse, in the prescribed form that

(

a) states that the spouse is aware of the spouse's entitlements under the pension plan,

(

b) waives those entitlements, and

(

c) was signed by the spouse in the presence of a witness and outside the presence of the person eligible to make the election.

(6) In the event of a conflict between this

section and

section 85.1 of the Family Relations Act ,

section 85.1 of the Family Relations Act applies.

No disposition or attachment of benefits and money

(1) Subject to subsections (3) to (6), the following must not be assigned, charged, alienated or anticipated and are exempt from execution, seizure or attachment:

(

a) benefits;

(

b) all or any portion of the pension fund;

(

c) money transferred under

(i)

section 57 (4) (b), (

c) or (

d) or 79 (1) (a) (

i) and (3),

(ii) Division 7 of this Part, or

(iii)

Part 9.

(2) A transaction purporting to assign, charge, alienate or anticipate benefits or other assets referred to in subsection (1) is void.

(3) Subsections (1) and (2) do not apply to

(

a) additional voluntary contributions,

(

b) optional ancillary contributions, or

(

c) an agreement or court order providing for a transfer of entitlement between a member and a spouse or former spouse because of a breakdown of their relationship.

(4) Despite subsection (1), the following may be attached by a notice of attachment under

section 15 of the Family Maintenance Enforcement Act , an order of garnishment under

section 18 (2) of that Act or an attachment order under

section 24 of that Act:

(

a) any payment in the series of payments that constitutes a pension;

(

b) any payment under

section 76;

(

c) any payment that forms part of a phased retirement benefit within the meaning of

section 83 (1).

(5) Despite subsection (3) (

a) and (

b) of this section, additional voluntary contributions and optional ancillary contributions made before, on or after November 1, 2008 are exempt from execution, seizure or attachment unless

(

a) the additional voluntary contributions or optional ancillary contributions were made after, on or within 12 months before the date on which a debt came due and the execution, seizure or attachment is to enforce payment of that debt,

(

b) the additional voluntary contributions or optional ancillary contributions have been or are being withdrawn from a pension plan,

(

c) the execution, seizure or attachment is by

(

i) a notice of attachment, order of garnishment or attachment order referred to in subsection (4), or

(ii) any other process to enforce a maintenance order as defined in the Family Maintenance Enforcement Act , or

(

d) the execution, seizure or attachment was initiated against the additional voluntary contributions or optional ancillary contributions before November 1, 2008.

(6) For the purposes of subsection (5) (b),

(

a) if additional voluntary contributions or optional ancillary contributions are transferred by a person to any of that person's registered plans, within the meaning of

section 71.3 of the Court Order Enforcement Act , that transfer does not constitute a withdrawal of those additional voluntary contributions or optional ancillary contributions from a pension plan, and

(

b) if execution, seizure or attachment is pursued against additional voluntary contributions or optional ancillary contributions being withdrawn from a pension plan by a member, those additional voluntary contributions or optional ancillary contributions are deemed, for the purposes of that execution, seizure or attachment and

Part 1 of the Court Order Enforcement Act , to be a debt due to the member for or with respect to the member's salary or wages.

(7) A transaction purporting to effect a withdrawal, surrender or commutation referred to in

section 68 (1) (

a) or (

b) is void.

(8) If this Act requires an amount to be withheld, deducted, paid or credited, an agreement or arrangement not to withhold, deduct, pay or credit that amount, made by the person on whom the requirement is imposed, is void.

Income and asset testing

(1) If a person is entitled under this Act to convert benefits or withdraw money under

section 69, that entitlement must not be taken into account when determining income or assets available to the person for the purposes of assessing that person's eligibility for government programs or services.

(2) Despite subsection (1), money that has been received by, or is payable to, a person as a result of the person having converted benefits or withdrawn money under

section 69 may be taken into account when determining income or assets available to that person for the purposes of assessing that person's eligibility for government programs or services.

Restrictions on transfer of assets

(1) Assets of a pension plan must not be transferred from the plan to another plan unless

(

a) the transfer is made under

section 57 (4) or 79 (1) or (3), under Division 7 of this Part or under

Part 9,

(

b) the transfer is effected under an agreement referred to in

section 35 (6) (c), or

(

c) the written consent of the superintendent is obtained.

(2) Assets of a pension plan must not be transferred from one fundholder of the plan to another fundholder of the plan, other than by way of providing benefits under the plan, unless

(

a) the insurance contract, under

section 50 (2) (a), or trust agreement, under

section 50 (2) (b), of the fundholder who is receiving the transfer is filed and the plan and any relevant amendment providing for the transfer are registered, or

(

b) the written consent of the superintendent is obtained.

(3) Despite subsection (1), an administrator of a pension plan must not, without the consent of, or without being directed to do so by, the superintendent, transfer assets out of the pension fund under

section 79 (1) or (3), under Division 7 of this Part or under

Part 9 if the transfer would impair the solvency of the plan.

Division 3 – Benefits May Be Affected

Maximum years and amounts

73 A plan text document of a pension plan may, in relation to the pension that may be paid under the plan, set a maximum number of years of employment that may be taken into account in calculating the pension or set a maximum amount for the pension, and, in either of those events, must provide that when an active member reaches that maximum, no further contributions are payable by the member.

Adjustments in pension for CPP Act, QPP Act

and OAS Act

(1) The plan text document of a pension plan may provide that a member may elect to have his or her pension payments increased for a period by an amount determined by reference to any amounts payable under the CPP Act or the QPP Act or both, as the case may be, if

(

a) the election is made on or before the member's pension commencement date and

(

b) the commuted value of the pension payable after the increased benefits have ceased is not less than the prescribed amount.

(2) The amount of pension being paid under a pension plan must not be reduced as a result of any change in the amounts being paid under the CPP Act or the QPP Act.

(3) The plan text document of a pension plan must not provide that the pension that a person is entitled to receive from the plan will be reduced if the person receives payments under the OAS Act, unless the reduced pension is an option selected by that person.

(4) If the plan text document of a pension plan provides for the reduction of a pension because of a member's entitlement to any payments under one or more of the CPP Act, the QPP Act and the OAS Act, the reduction must not exceed an amount determined by the prescribed formula.

Flexibility for life income type benefits

75 Subject to the regulations, the plan text document of a pension plan may authorize payment of life income type benefits to be made in any manner that

(

a) is authorized by the Income Tax Act (Canada), and

(

b) accords with the regulations.

Lump-sum payments

(1) The plan text document of a pension plan may provide that an active member

(

a) whose working time and remuneration are reduced by agreement with a participating employer,

(

b) who has not reached his or her pension commencement date, and

(

c) who is within 10 years of the plan's pension eligibility date

is entitled to receive from the plan, for each year in relation to which the prescribed conditions have been met, a lump-sum payment, representing partial compensation for the reduction in remuneration for each year covered by the agreement, in an amount determined under the regulations.

(2) When a member referred to in subsection (1) reaches his or her pension commencement date, the amount of the pension to which he or she is entitled must be adjusted in accordance with the regulations.

Division of benefits under orders or agreements

77 If under this Act a person is entitled to a benefit under a pension plan, that entitlement is subject to division under

Part 5 or 6 of the Family Relations Act by way of an agreement or court order, including, without limitation, a similar order of a court outside British Columbia enforceable in British Columbia.

Division 4 – Death Benefits

Definition

78 In this Division, "joint and survivor pension" means a pension payable during the lives of the member and the member's spouse and, after the death of one of them, to the survivor for life.

Survivor's benefits if member dies before pension commencement

(1) If a member dies before reaching his or her pension commencement date,

(

a) subject to paragraph (b), if there is a surviving spouse, the following amounts must be provided as follows:

(

i) subject to subsection (3), the pension to which the member was entitled must be provided to the surviving spouse

(

A) as a pension, or

(

B) by way of a transfer of the commuted value of the pension under Division 7, and the surviving spouse has, in relation to that transfer, the same rights and obligations, if any, that would have applied to the member had the member survived;

(ii) any additional voluntary contributions and optional ancillary contributions made by the member and any excess contributions to which the member was entitled, must be provided to the surviving spouse, and the surviving spouse has, in relation to those benefits, the same transfer rights and obligations, if any, that would have applied to the member had the member survived,

(

b) if there is a surviving spouse and that spouse has provided to the administrator a statement in the prescribed form that waives the spousal entitlement referred to in paragraph (a), the total of the commuted value of the pension referred to in paragraph (a) (

i) and the value of the benefits referred to in paragraph (a) (ii) is payable by way of a lump-sum payment

(

i) to the designated beneficiary, or

(ii) if there is no living designated beneficiary, to the personal representative of the member's estate,

but in no case is the surviving spouse entitled to receive any benefit as designated beneficiary under subparagraph (

i) of this paragraph or from the estate under subparagraph (ii) of this paragraph, or

(

c) if there is no surviving spouse, the total of the commuted value of the pension referred to in paragraph (a) (

i) and the value of the benefits referred to in paragraph (a) (ii) is payable by way of a lump-sum payment

(

i) to the designated beneficiary, or

(ii) if there is no living designated beneficiary, to the personal representative of the member's estate.

(2) If optional ancillary contributions were made by a member and the member dies before reaching his or her pension commencement date and leaves a surviving spouse, the amount of those contributions may, at the option of the spouse, be applied, in the manner specified by the plan text document of the pension plan, to the optional ancillary benefits selected by the spouse to increase the benefits to which the spouse is entitled under the plan up to the maximum amount allowed by the Income Tax Act (Canada) or the regulations under that Act.

(3) The plan text document of a pension plan may provide that, if a member dies before reaching his or her pension commencement date, a surviving spouse of the member must make the applicable transfer referred to in Division 7.

(4) If a spouse who is entitled to a benefit under subsection (1) (

a) dies before his or her pension commencement date, the total of the commuted value of the pension referred to in subsection (1) (a) (

i) and the value of the benefits referred to in subsection (1) (a) (ii) is payable by way of a lump-sum payment to

(

a) the spouse's designated beneficiary, or

(

b) if there is no living designated beneficiary, to the personal representative of the spouse's estate.

(5) In the event of a conflict between this

section and

section 85.1 of the Family Relations Act ,

section 85.1 of the Family Relations Act applies.

Survivor's benefits if retired member dies

after pension commencement

(1) A plan text document that contains a benefit formula provision must provide that the pension payable to a retired member who had a spouse at the member's pension commencement date is a joint and survivor pension.

(2) A joint and survivor pension may, by reason of the death of the member or spouse referred to in subsection (1) be reduced to an amount that is not less than 60% of the amount of the pension that would have been payable in respect of the member had the death not occurred.

(3) The actuarial present value of a joint and survivor pension must not be less than the actuarial present value of the pension that would have been payable to the member if he or she had no spouse.

(4) A member may elect to receive a pension that does not comply with this

section by providing to the administrator, not more than 90 days before the member's pension commencement date

(

a) a statement in the prescribed form by the member's spouse that

(

i) states that the spouse is aware of his or her entitlement to a joint and survivor pension under subsection (1),

(ii) waives that entitlement, and

(iii) was signed by the spouse in the presence of a witness and outside the presence of the member, or

(

b) confirmation, in a form and manner satisfactory to the administrator, that

section 85.1 of the Family Relations Act applies.

(5) A spouse who has validly signed a statement under subsection (4) is deemed to be the sole designated beneficiary of the member despite any actual designation of beneficiary and any other law relating to such an actual designation.

(6) Subsection (5) does not apply if the administrator, before the member reached the member's pension commencement date and before the member's death received

(

a) a statement in the prescribed form by the spouse that

(

i) states that the spouse is aware of his or her entitlement under subsection (5),

(ii) waives that entitlement, and

(iii) was signed by the spouse in the presence of a witness and outside the presence of the member, or

(

b) confirmation, in a form and manner satisfactory to the administrator, that

section 85.1 of the Family Relations Act applies.

(7) If a spouse who is the deemed beneficiary by virtue of subsection (5) does not survive the member, another person who has actually been designated as the designated beneficiary is the designated beneficiary of the member.

(8) A waiver under subsection (4) or (6) of an entitlement to a benefit is void if the member dies before reaching his or her pension commencement date.

(9) In the event of a conflict between this

section and

section 85.1 of the Family Relations Act ,

section 85.1 of the Family Relations Act applies.

(10) This

section does not apply if payment of the pension began before January 1, 1993.

Spouse's change in status

(1) A pension payable to the surviving spouse of a deceased member of a pension plan does not cease on the spouse's acquiring a new spouse on or after the initial legislation date.

(2) If a member's spouse has validly signed a waiver statement referred to in

section 80 (4) to allow the member to elect a joint and survivor pension other than the joint and survivor pension referred to in

section 80 (2), the spouse's entitlement to the payment of the joint and survivor pension does not, despite any provision to the contrary in the plan documents, cease merely because that person ceases to be the spouse of the member at any subsequent date.

Division 5 – Ancillary and Phased Retirement Benefits

Ancillary benefits

(1) A pension plan may provide any of the following benefits as ancillary benefits:

(

a) disability benefits;

(

b) bridging benefits;

(

c) supplementary benefits, other than bridging benefits, payable for a temporary period of time;

(

d) cost of living adjustments;

(

e) to the extent that they exceed the minimum requirements of this Part,

(

i) pre-retirement death benefits,

(ii) early retirement benefits,

(iii) enhancements to the pension of a member who continues in employment after reaching the plan's pension eligibility date to the extent that those enhancements increase the pension that would otherwise be payable to him or her, and

(iv) a joint and survivor pension;

(

f) other benefits that are prescribed to be ancillary benefits.

(2) The plan text document of a pension plan must establish, as the basis on which payment of ancillary benefits is to be made,

(

a) one or both of age and years of plan membership, or

(

b) another factor consented to by the superintendent on application.

(3) If the plan text document of a pension plan contains a target benefit provision, the administrator may, in the circumstances referred to in

section 20 (2) (b), amend the plan text document to reduce or eliminate the ancillary benefits.

Phased retirement benefit

(1) In this section:

"eligible person" means a member of a pension plan who

(

a) is at least 60 years of age, or

(

b) is at least 55 years of age and entitled under the plan to receive a pension without reduction;

"eligible person's pension" , in respect of an eligible person, means the pension that is payable to the eligible person on his or her reaching the plan's pension eligibility date;

"phased retirement benefit" means payments out of the pension plan of which an eligible person is a member of an amount that is payable periodically to the eligible person for a period other than for the life of the eligible person.

(2) A phased retirement benefit that is paid to an eligible person does not constitute the eligible person's pension and must not be construed as that pension.

(3) A phased retirement benefit must not be paid from a pension plan to an eligible person unless all of the prescribed conditions have been met.

(4) The amount of any phased retirement benefit payment must not be greater than the prescribed portion of the amount that would be paid for any one payment of the eligible person's pension were those pension payments to be made on the same dates as the phased retirement benefit payments.

(5) The pension to which the eligible person is entitled under

section 64 (1) or 65 (1) is to be calculated without regard to the amount of the phased retirement benefit received.

Division 6 – Additional Voluntary Contributions and Optional

Ancillary Contributions

Payment out of additional voluntary contributions

and optional ancillary contributions

(1) The plan text document may provide that some or all of one or both of the following may be refunded to an active member as a lump sum:

(

a) additional voluntary contributions;

(

b) optional ancillary contributions.

(2) The plan text document must provide that one or both of the following are refundable to a member as a lump sum on his or her termination of active membership:

(

a) additional voluntary contributions;

(

b) optional ancillary contributions.

(3) The plan text document must provide that on a member's pension commencement date,

(

a) the member's optional ancillary contributions are converted to optional ancillary benefits, and

(

b) the member may elect that additional voluntary contributions

(

i) be used to provide the additional benefits selected by the member in relation to those additional voluntary contributions, or

(ii) be refunded to the member as a lump sum.

Division 7 – Transfer of Commuted Value by Members

When transfer may be made under this Division

(1) Subject to this Division, a member of a pension plan is eligible to elect a transfer under this Division in any of the following circumstances:

(

a) subject to subsection (2), after the member's termination of active membership;

(

b) the member is authorized under

section 105 to elect a transfer under this Division;

(

c) the plan is a collectively bargained multi-employer plan and

(

i) the plan text document of the plan specifies that a member may elect a transfer under this Division if, at the time of the election, the member is no longer employed by any participating employer, and

(ii) the member makes that election when no longer employed by a participating employer.

(2) The plan text document of a collectively bargained multi-employer plan may provide that a member is not eligible to elect a transfer under this Division, after his or her termination of active membership, if

(

a) the member after the 2-year period referred to in the definition of "termination of active membership", again becomes an active member in the plan, and

(

b) an application for the transfer referred to in subsection (1) (

a) is not received by the administrator before the accrual of further benefits.

(3) A member of a pension plan who is entitled to a pension under a benefit formula provision is not eligible to elect a transfer under this Division if he or she has reached his or her pension commencement date.

What may be transferred

86 Subject to and in accordance with this Division and the regulations, a member of a pension plan who is eligible under

section 85 to elect a transfer under this Division may elect to transfer the following from the plan:

(

a) if the member is entitled to a benefit under a provision other than a target benefit provision all of the commuted value of that benefit;

(

b) if the member is entitled to a benefit under a target benefit provision, the product of

(

i) all of the commuted value of that benefit, and

(ii) the target benefit funded ratio, as calculated in accordance with the regulations, that is set out in the actuarial valuation report that has most recently been filed in relation to the plan.

Transfer may be restricted or postponed

(1) The plan text document of a pension plan may restrict a person from making a transfer of the commuted value of the benefit under a benefit formula provision if the plan or the person's membership in it terminates within 10 years before the person would have reached the plan's pension eligibility date.

(2) The plan text document of a pension plan to which an employer is required to contribute may provide that, if a person who was an active member of the plan (the "first plan") terminates membership in that plan in order to become an active member of another pension plan (the "second plan") to which the same employer is required to contribute, the person's right to transfer the commuted value of the benefit under this Division is postponed until the earliest of

(

a) the date of the member's termination of active membership in the second plan

(

b) the date on which the first plan terminates, and

(

c) the date on which the second plan terminates.

(3) Without limiting subsections (1) and (2), the regulations may restrict the right of a person to effect a transfer under this