Acts and Regulations

P-5.1 - Pension Benefits Act

Section 69
Disposition versions

Full text
Effect on pension plan of sale, assignment or other disposition of employer’s business
69(1)In this section
“successor employer” means a person who acquires the business or assets of an employer.
69(2)If an employer who contributes to a pension plan sells, assigns or otherwise disposes of all or part of the employer’s business or all or part of the assets of the employer’s business, a member of the pension plan who, in conjunction with the sale, assignment or disposition becomes an employee of the successor employer and becomes a member of a pension plan provided by the successor employer
(a) continues to be entitled to the benefits provided under the employer’s pension plan in respect of employment to the effective date of the sale, assignment or disposition without further accrual,
(b) is entitled to credit in the pension plan of the successor employer for the period of employment with the employer, for the purpose of determining eligibility for membership in or entitlement to benefits under the pension plan of the successor employer, and
(c) is entitled to credit in the employer’s pension plan for the period of employment with the successor employer for the purpose of determining entitlement to benefits under the employer’s pension plan.
69(3)Paragraph (2)(a) does not apply if the successor employer assumes responsibility for the accrued pension benefits of the employer’s pension plan.
69(4)If a transaction described in subsection (2) takes place, the employment of the employee shall be deemed, for the purposes of this Act, not to be terminated by reason of the transaction.
69(5)If a transaction described in subsection (2) occurs and the successor employer assumes responsibility in whole or in part for the pension benefits provided under the employer’s pension plan, no transfer of assets shall be made from the employer’s pension fund to the pension fund of the plan provided by the successor employer without the prior consent of the Superintendent or contrary to the prescribed terms and conditions.
69(6)The Superintendent shall refuse to consent to a transfer of assets that does not protect the pension benefits and any other benefits of the members and former members of the employer’s pension plan and of any other person entitled to benefits or payments under the plan or that does not meet the prescribed requirements and qualifications.
69(7)The Superintendent by order may require the transferee to return to the pension fund, with interest, assets transferred without the prior consent required by subsection (5).
69(8)If a transaction described in subsection (2) takes place and the successor employer does not provide a pension plan for members of the employer’s pension plan who become employees of the successor employer, the administrator of the employer’s pension plan shall wind up the pension plan in respect of those members.
69(9)An order for a return of assets under subsection (7), exclusive of the reasons for the order, may be filed in the Court of King’s Bench and shall be entered and recorded in the Court, and when so entered and recorded becomes a judgment of the Court and may be enforced as a judgment obtained in the Court by the Superintendent.
69(10)All reasonable costs and charges attendant upon the filing, entering and recording of an order under subsection (9) are recoverable in like manner as if the amount had been included in the order.
2016, c.36, s.11; 2023, c.17, s.188
Effect on pension plan of sale, assignment or other disposition of employer’s business
69(1)In this section
“successor employer” means a person who acquires the business or assets of an employer.
69(2)If an employer who contributes to a pension plan sells, assigns or otherwise disposes of all or part of the employer’s business or all or part of the assets of the employer’s business, a member of the pension plan who, in conjunction with the sale, assignment or disposition becomes an employee of the successor employer and becomes a member of a pension plan provided by the successor employer
(a) continues to be entitled to the benefits provided under the employer’s pension plan in respect of employment to the effective date of the sale, assignment or disposition without further accrual,
(b) is entitled to credit in the pension plan of the successor employer for the period of employment with the employer, for the purpose of determining eligibility for membership in or entitlement to benefits under the pension plan of the successor employer, and
(c) is entitled to credit in the employer’s pension plan for the period of employment with the successor employer for the purpose of determining entitlement to benefits under the employer’s pension plan.
69(3)Paragraph (2)(a) does not apply if the successor employer assumes responsibility for the accrued pension benefits of the employer’s pension plan.
69(4)If a transaction described in subsection (2) takes place, the employment of the employee shall be deemed, for the purposes of this Act, not to be terminated by reason of the transaction.
69(5)If a transaction described in subsection (2) occurs and the successor employer assumes responsibility in whole or in part for the pension benefits provided under the employer’s pension plan, no transfer of assets shall be made from the employer’s pension fund to the pension fund of the plan provided by the successor employer without the prior consent of the Superintendent or contrary to the prescribed terms and conditions.
69(6)The Superintendent shall refuse to consent to a transfer of assets that does not protect the pension benefits and any other benefits of the members and former members of the employer’s pension plan and of any other person entitled to benefits or payments under the plan or that does not meet the prescribed requirements and qualifications.
69(7)The Superintendent by order may require the transferee to return to the pension fund, with interest, assets transferred without the prior consent required by subsection (5).
69(8)If a transaction described in subsection (2) takes place and the successor employer does not provide a pension plan for members of the employer’s pension plan who become employees of the successor employer, the administrator of the employer’s pension plan shall wind up the pension plan in respect of those members.
69(9)An order for a return of assets under subsection (7), exclusive of the reasons for the order, may be filed in the Court of Queen’s Bench and shall be entered and recorded in the Court, and when so entered and recorded becomes a judgment of the Court and may be enforced as a judgment obtained in the Court by the Superintendent.
69(10)All reasonable costs and charges attendant upon the filing, entering and recording of an order under subsection (9) are recoverable in like manner as if the amount had been included in the order.
2016, c.36, s.11
Effect on pension plan of sale, assignment or other disposition of employer’s business
69(1)In this section
“successor employer” means a person who acquires the business or assets of an employer.
69(2)If an employer who contributes to a pension plan sells, assigns or otherwise disposes of all or part of the employer’s business or all or part of the assets of the employer’s business, a member of the pension plan who, in conjunction with the sale, assignment or disposition becomes an employee of the successor employer and becomes a member of a pension plan provided by the successor employer
(a) continues to be entitled to the benefits provided under the employer’s pension plan in respect of employment to the effective date of the sale, assignment or disposition without further accrual,
(b) is entitled to credit in the pension plan of the successor employer for the period of employment with the employer, for the purpose of determining eligibility for membership in or entitlement to benefits under the pension plan of the successor employer, and
(c) is entitled to credit in the employer’s pension plan for the period of employment with the successor employer for the purpose of determining entitlement to benefits under the employer’s pension plan.
69(3)Paragraph (2)(a) does not apply if the successor employer assumes responsibility for the accrued pension benefits of the employer’s pension plan.
69(4)If a transaction described in subsection (2) takes place, the employment of the employee shall be deemed, for the purposes of this Act, not to be terminated by reason of the transaction.
69(5)If a transaction described in subsection (2) occurs and the successor employer assumes responsibility in whole or in part for the pension benefits provided under the employer’s pension plan, no transfer of assets shall be made from the employer’s pension fund to the pension fund of the plan provided by the successor employer without the prior consent of the Superintendent or contrary to the prescribed terms and conditions.
69(6)The Superintendent shall refuse to consent to a transfer of assets that does not protect the pension benefits and any other benefits of the members and former members of the employer’s pension plan and of any other person entitled to benefits or payments under the plan or that does not meet the prescribed requirements and qualifications.
69(7)The Superintendent by order may require the transferee to return to the pension fund, with interest, assets transferred without the prior consent required by subsection (5).
69(8)If a transaction described in subsection (2) takes place and the successor employer does not provide a pension plan for members of the employer’s pension plan who become employees of the successor employer, the administrator of the employer’s pension plan shall wind up the pension plan in respect of those members.
69(9)An order for a return of assets under subsection (7), exclusive of the reasons for the order, may be filed in The Court of Queen’s Bench of New Brunswick and shall be entered and recorded in the Court, and when so entered and recorded becomes a judgment of the Court and may be enforced as a judgment obtained in the Court by the Superintendent.
69(10)All reasonable costs and charges attendant upon the filing, entering and recording of an order under subsection (9) are recoverable in like manner as if the amount had been included in the order.
Effect on pension plan of sale, assignment or other disposition of employer’s business
69(1)In this section
“successor employer” means a person who acquires the business or assets of an employer.
69(2)If an employer who contributes to a pension plan sells, assigns or otherwise disposes of all or part of the employer’s business or all or part of the assets of the employer’s business, a member of the pension plan who, in conjunction with the sale, assignment or disposition becomes an employee of the successor employer and becomes a member of a pension plan provided by the successor employer
(a) continues to be entitled to the benefits provided under the employer’s pension plan in respect of employment to the effective date of the sale, assignment or disposition without further accrual,
(b) is entitled to credit in the pension plan of the successor employer for the period of employment with the employer, for the purpose of determining eligibility for membership in or entitlement to benefits under the pension plan of the successor employer, and
(c) is entitled to credit in the employer’s pension plan for the period of employment with the successor employer for the purpose of determining entitlement to benefits under the employer’s pension plan.
69(3)Paragraph (2)(a) does not apply if the successor employer assumes responsibility for the accrued pension benefits of the employer’s pension plan.
69(4)If a transaction described in subsection (2) takes place, the employment of the employee shall be deemed, for the purposes of this Act, not to be terminated by reason of the transaction.
69(5)If a transaction described in subsection (2) occurs and the successor employer assumes responsibility in whole or in part for the pension benefits provided under the employer’s pension plan, no transfer of assets shall be made from the employer’s pension fund to the pension fund of the plan provided by the successor employer without the prior consent of the Superintendent or contrary to the prescribed terms and conditions.
69(6)The Superintendent shall refuse to consent to a transfer of assets that does not protect the pension benefits and any other benefits of the members and former members of the employer’s pension plan and of any other person entitled to benefits or payments under the plan or that does not meet the prescribed requirements and qualifications.
69(7)The Superintendent by order may require the transferee to return to the pension fund, with interest, assets transferred without the prior consent required by subsection (5).
69(8)If a transaction described in subsection (2) takes place and the successor employer does not provide a pension plan for members of the employer’s pension plan who become employees of the successor employer, the administrator of the employer’s pension plan shall wind up the pension plan in respect of those members.
69(9)An order for a return of assets under subsection (7), exclusive of the reasons for the order, may be filed in The Court of Queen’s Bench of New Brunswick and shall be entered and recorded in the Court, and when so entered and recorded becomes a judgment of the Court and may be enforced as a judgment obtained in the Court by the Superintendent.
69(10)All reasonable costs and charges attendant upon the filing, entering and recording of an order under subsection (9) are recoverable in like manner as if the amount had been included in the order.