Acts and Regulations

91-195 - General

Section 43
Disposition versions

Full text
Minimum interest rate on contributions
43(1)For the purposes of section 54 of the Act, the minimum interest rate credited to contributions made to a pension fund shall be calculated using
(a) for a defined benefit plan, the average of the yields of five year personal fixed term chartered bank deposit rates, published in the Bank of Canada Review as CANSIM Series B14045, over the most recent period for which the rates are available, with an averaging period equal to the number of months in the period for which interest is to be credited to a maximum of twelve months, or
(b) subject to subsection (2), for any pension plan, the rate of return attributed to the pension fund or the part of the pension fund to which the contributions are made, less the rate that can reasonably be attributed to the expenses of administering the pension plan for that period that are not required to be paid by the employer.
Rate below zero
43(2)If the interest rate calculated for a defined benefit plan under paragraph (1)(b) is less than zero, the interest rate credited to contributions under that paragraph shall be zero per cent.
On optional ancillary contributions
43(2.1)Interest on a member’s optional ancillary contributions shall be calculated in accordance with paragraph 43(1)(b), unless the member has made his or her own investment choices for the optional ancillary contributions in accordance with the pension plan.
On contributions
43(3)Interest on a member’s contributions made during a pension plan year, after the commencement of section 54 of the Act, shall be calculated in the same manner and at the same rate described in subsection (1) and shall be credited
(a) not later than the first day of the month following the month in which the contributions are made or are required to be made, whichever occurs first, to the pension fund, or
(b) annually, not later than the first day of the month following the month in which the last day of the pension plan year occurs, by applying fifty per cent of the applicable annual interest rate to the total member’s contributions made during the pension plan year.
On contributions
43(4)The administrator of a pension plan shall choose, if permitted, one of the methods of calculating interest described in paragraphs (1)(a) and (b), shall choose one of the methods of crediting interest in accordance with paragraphs (3)(a) and (b) and shall apply the chosen methods consistently after doing so unless the plan is amended in accordance with the Act to change a method.
On contributions
43(5)The administrator of a pension plan shall, not less than once in each pension plan year, credit interest on contributions with interest made during any previous pension plan years in the same manner and at the same rate described in subsection (1).
On payment, transfer or purchase from plan
43(6)If a payment, transfer or purchase is to be made from a pension plan, the administrator shall credit interest, calculated in accordance with subsection (7),
(a) to the contributions made by a member, with interest, from the last day of the most recent period for which interest on contributions was credited to the date of termination of employment, retirement or death, and
(b) from the date of termination of employment, retirement or death to the date of payment, transfer or purchase, inclusive,
(i) to a transfer value referred to in subsection 19(10), a commuted value referred to in subsection 19(8) or (11), payment under section 43 of the Act or a withdrawal in accordance with section 56 of the Act, and
(ii) to any excess employee contributions.
On payment, transfer or purchase from plan
43(7)Unless otherwise provided for in the Act or the regulations, an administrator shall calculate interest to be credited under paragraphs (6)(a) and (b) by multiplying the interest rate most recently calculated for the fund in accordance with subsection (1) by the number of months, including parts of a month, in the periods described in paragraphs (6)(a) and (b) and dividing the product by twelve.
On wind-up, in whole or in part
43(8)If a pension plan is wound up in whole or in part, the administrator shall apply interest to any amount owing to a person who is entitled to a lump sum payment under the plan or the Act or who requires a transfer under section 36 of the Act or purchase under subsection 33(1) or section 36 or 44 of the Act from the effective date of the wind-up in whole or in part to the date of the payment, transfer or purchase, inclusive, at the interest rate used to determine the commuted value of the benefit in the wind-up report.
On orders
43(9)The rate of interest paid on money or assets to be returned under an order made by the Superintendent under section 38 or subsection 69(7) or 71(1) of the Act or by the Tribunal under subsection 76(1) of the Act after a payment or transfer from a pension plan shall be the interest rate payable on a verdict or judgment under the Rules of Court, calculated from the date on which the payment or transfer to which the order relates took place to the date of compliance with the order, inclusive.
Application of section 43
43(10)This section applies to all accumulated contributions with interest made
(a) for a defined benefit plan providing contributory pension benefits, by a member, or
(b) for a defined contribution plan, in respect of a person who has terminated employment or ceased to be a member of the plan and who is entitled to a deferred pension payable from the pension fund or in respect of a member
(i) by the person or member, if there are accumulated contributions with interest, and
(ii) by the employer in respect of the person or member,
whether made before, on or after the commencement of the Act.
Application of section 43
43(11)This section applies
(a) to any surplus money allocated to a person or to a member referred to in paragraph (10)(b), and
(b) to any transfer in respect of a person or a member referred to in subsection (10)
(i) from another pension plan, or
(ii) credited under the plan from a division of benefits on the breakdown of a marriage or common-law partnership,
whether made before, on or after the commencement of section 54 of the Act.
93-144; 2003-87; 2011-60
Minimum interest rate on contributions
43(1)For the purposes of section 54 of the Act, the minimum interest rate credited to contributions made to a pension fund shall be calculated using
(a) for a defined benefit plan, the average of the yields of five year personal fixed term chartered bank deposit rates, published in the Bank of Canada Review as CANSIM Series B14045, over the most recent period for which the rates are available, with an averaging period equal to the number of months in the period for which interest is to be credited to a maximum of twelve months, or
(b) subject to subsection (2), for any pension plan, the rate of return attributed to the pension fund or the part of the pension fund to which the contributions are made, less the rate that can reasonably be attributed to the expenses of administering the pension plan for that period that are not required to be paid by the employer.
Rate below zero
43(2)If the interest rate calculated for a defined benefit plan under paragraph (1)(b) is less than zero, the interest rate credited to contributions under that paragraph shall be zero per cent.
On optional ancillary contributions
43(2.1)Interest on a member’s optional ancillary contributions shall be calculated in accordance with paragraph 43(1)(b), unless the member has made his or her own investment choices for the optional ancillary contributions in accordance with the pension plan.
On contributions
43(3)Interest on a member’s contributions made during a pension plan year, after the commencement of section 54 of the Act, shall be calculated in the same manner and at the same rate described in subsection (1) and shall be credited
(a) not later than the first day of the month following the month in which the contributions are made or are required to be made, whichever occurs first, to the pension fund, or
(b) annually, not later than the first day of the month following the month in which the last day of the pension plan year occurs, by applying fifty per cent of the applicable annual interest rate to the total member’s contributions made during the pension plan year.
On contributions
43(4)The administrator of a pension plan shall choose, if permitted, one of the methods of calculating interest described in paragraphs (1)(a) and (b), shall choose one of the methods of crediting interest in accordance with paragraphs (3)(a) and (b) and shall apply the chosen methods consistently after doing so unless the plan is amended in accordance with the Act to change a method.
On contributions
43(5)The administrator of a pension plan shall, not less than once in each pension plan year, credit interest on contributions with interest made during any previous pension plan years in the same manner and at the same rate described in subsection (1).
On payment, transfer or purchase from plan
43(6)If a payment, transfer or purchase is to be made from a pension plan, the administrator shall credit interest, calculated in accordance with subsection (7),
(a) to the contributions made by a member, with interest, from the last day of the most recent period for which interest on contributions was credited to the date of termination of employment, retirement or death, and
(b) from the date of termination of employment, retirement or death to the date of payment, transfer or purchase, inclusive,
(i) to a transfer value referred to in subsection 19(10), a commuted value referred to in subsection 19(8) or (11), payment under section 43 of the Act or a withdrawal in accordance with section 56 of the Act, and
(ii) to any excess employee contributions.
On payment, transfer or purchase from plan
43(7)Unless otherwise provided for in the Act or the regulations, an administrator shall calculate interest to be credited under paragraphs (6)(a) and (b) by multiplying the interest rate most recently calculated for the fund in accordance with subsection (1) by the number of months, including parts of a month, in the periods described in paragraphs (6)(a) and (b) and dividing the product by twelve.
On wind-up, in whole or in part
43(8)If a pension plan is wound up in whole or in part, the administrator shall apply interest to any amount owing to a person who is entitled to a lump sum payment under the plan or the Act or who requires a transfer under section 36 of the Act or purchase under subsection 33(1) or section 36 or 44 of the Act from the effective date of the wind-up in whole or in part to the date of the payment, transfer or purchase, inclusive, at the interest rate used to determine the commuted value of the benefit in the wind-up report.
On orders
43(9)The rate of interest paid on money or assets to be returned under an order made by the Superintendent under section 38 or subsection 69(7) or 71(1) of the Act or by the Tribunal under subsection 76(1) of the Act after a payment or transfer from a pension plan shall be the interest rate payable on a verdict or judgment under the Rules of Court, calculated from the date on which the payment or transfer to which the order relates took place to the date of compliance with the order, inclusive.
Application of section 43
43(10)This section applies to all accumulated contributions with interest made
(a) for a defined benefit plan providing contributory pension benefits, by a member, or
(b) for a defined contribution plan, in respect of a person who has terminated employment or ceased to be a member of the plan and who is entitled to a deferred pension payable from the pension fund or in respect of a member
(i) by the person or member, if there are accumulated contributions with interest, and
(ii) by the employer in respect of the person or member,
whether made before, on or after the commencement of the Act.
Application of section 43
43(11)This section applies
(a) to any surplus money allocated to a person or to a member referred to in paragraph (10)(b), and
(b) to any transfer in respect of a person or a member referred to in subsection (10)
(i) from another pension plan, or
(ii) credited under the plan from a division of benefits on the breakdown of a marriage or common-law partnership,
whether made before, on or after the commencement of section 54 of the Act.
93-144; 2003-87; 2011-60
Minimum interest rate on contributions
43(1)For the purposes of section 54 of the Act, the minimum interest rate credited to contributions made to a pension fund shall be calculated using
(a) for a defined benefit plan, the average of the yields of five year personal fixed term chartered bank deposit rates, published in the Bank of Canada Review as CANSIM Series B14045, over the most recent period for which the rates are available, with an averaging period equal to the number of months in the period for which interest is to be credited to a maximum of twelve months, or
(b) subject to subsection (2), for any pension plan, the rate of return attributed to the pension fund or the part of the pension fund to which the contributions are made, less the rate that can reasonably be attributed to the expenses of administering the pension plan for that period that are not required to be paid by the employer.
Rate below zero
43(2)If the interest rate calculated for a defined benefit plan under paragraph (1)(b) is less than zero, the interest rate credited to contributions under that paragraph shall be zero per cent.
On optional ancillary contributions
43(2.1)Interest on a member’s optional ancillary contributions shall be calculated in accordance with paragraph 43(1)(b), unless the member has made his or her own investment choices for the optional ancillary contributions in accordance with the pension plan.
On contributions
43(3)Interest on a member’s contributions made during a pension plan year, after the commencement of section 54 of the Act, shall be calculated in the same manner and at the same rate described in subsection (1) and shall be credited
(a) not later than the first day of the month following the month in which the contributions are made or are required to be made, whichever occurs first, to the pension fund, or
(b) annually, not later than the first day of the month following the month in which the last day of the pension plan year occurs, by applying fifty per cent of the applicable annual interest rate to the total member’s contributions made during the pension plan year.
On contributions
43(4)The administrator of a pension plan shall choose, if permitted, one of the methods of calculating interest described in paragraphs (1)(a) and (b), shall choose one of the methods of crediting interest in accordance with paragraphs (3)(a) and (b) and shall apply the chosen methods consistently after doing so unless the plan is amended in accordance with the Act to change a method.
On contributions
43(5)The administrator of a pension plan shall, not less than once in each pension plan year, credit interest on contributions with interest made during any previous pension plan years in the same manner and at the same rate described in subsection (1).
On payment, transfer or purchase from plan
43(6)If a payment, transfer or purchase is to be made from a pension plan, the administrator shall credit interest, calculated in accordance with subsection (7),
(a) to the contributions made by a member, with interest, from the last day of the most recent period for which interest on contributions was credited to the date of termination of employment, retirement or death, and
(b) from the date of termination of employment, retirement or death to the date of payment, transfer or purchase, inclusive,
(i) to a transfer value referred to in subsection 19(10), a commuted value referred to in subsection 19(8) or (11), payment under section 43 of the Act or a withdrawal in accordance with section 56 of the Act, and
(ii) to any excess employee contributions.
On payment, transfer or purchase from plan
43(7)Unless otherwise provided for in the Act or the regulations, an administrator shall calculate interest to be credited under paragraphs (6)(a) and (b) by multiplying the interest rate most recently calculated for the fund in accordance with subsection (1) by the number of months, including parts of a month, in the periods described in paragraphs (6)(a) and (b) and dividing the product by twelve.
On wind-up, in whole or in part
43(8)If a pension plan is wound up in whole or in part, the administrator shall apply interest to any amount owing to a person who is entitled to a lump sum payment under the plan or the Act or who requires a transfer under section 36 of the Act or purchase under subsection 33(1) or section 36 or 44 of the Act from the effective date of the wind-up in whole or in part to the date of the payment, transfer or purchase, inclusive, at the interest rate used to determine the commuted value of the benefit in the wind-up report.
On orders
43(9)The rate of interest paid on money or assets to be returned under an order made by the Superintendent under section 38 or subsection 69(7) or 71(1) of the Act or by the Tribunal under subsection 76(1) of the Act after a payment or transfer from a pension plan shall be the interest rate payable on a verdict or judgment under the Rules of Court, calculated from the date on which the payment or transfer to which the order relates took place to the date of compliance with the order, inclusive.
Application of section 43
43(10)This section applies to all accumulated contributions with interest made
(a) for a defined benefit plan providing contributory pension benefits, by a member, or
(b) for a defined contribution plan, in respect of a person who has terminated employment or ceased to be a member of the plan and who is entitled to a deferred pension payable from the pension fund or in respect of a member
(i) by the person or member, if there are accumulated contributions with interest, and
(ii) by the employer in respect of the person or member,
whether made before, on or after the commencement of the Act.
Application of section 43
43(11)This section applies
(a) to any surplus money allocated to a person or to a member referred to in paragraph (10)(b), and
(b) to any transfer in respect of a person or a member referred to in subsection (10)
(i) from another pension plan, or
(ii) credited under the plan from a division of benefits on marriage breakdown,
whether made before, on or after the commencement of section 54 of the Act.
93-144; 2003-87