Acts and Regulations

91-195 - General

Table of contents
Full text
Current to 1 January 2024
NEW BRUNSWICK
REGULATION 91-195
under the
Pension Benefits Act
(O.C. 91-1060)
Filed December 9, 1991
Under section 100 of the Pension Benefits Act, the Lieutenant-Governor in Council makes the following Regulation:
Citation
1This Regulation may be cited as the General Regulation - Pension Benefits Act.
Definitions
2(1)In this Regulation
“Act” means the Pension Benefits Act;(Loi)
“actuarial gain” means an actuarial gain determined in accordance with section 8;(gain actuariel)
“actuarial loss” means an actuarial loss determined in accordance with section 8;(perte actuarielle)
“actuarial valuation report” means, in respect of a pension plan, a report prepared by an actuary in a manner that is consistent with the Recommendations for Valuation of Pension Plans adopted by the Canadian Institute of Actuaries and containing the actuary’s statement of opinion and the information required under the plan, the Act and the regulations respecting a going concern valuation and a solvency valuation;(rapport d’évaluation actuarielle)
“actuary” means, in respect of a pension plan, a fellow of the Canadian Institute of Actuaries who is appointed by the administrator, either directly or as an employee of a firm, to perform valuations and other functions required to be performed under the plan, the Act or the regulations;(actuaire)
“amount equal to the provision for adverse deviations” means the product obtained by multiplying the provision for adverse deviations by the pension plan’s going concern liabilities as of a particular review date;(montant de la provision pour écarts défavorables)
“defined benefit plan” means a pension plan the benefits of which include defined benefits;(régime de prestation déterminée)
“defined contribution plan” means a pension plan the benefits of which are defined contribution benefits;(régime à cotisation déterminée)
“escalated adjustment” means an amount by which(rajustement actualisé)
(a) a pension or deferred pension is adjusted after a member terminates employment or otherwise ceases to be a member of a pension plan, or
(b) a pension benefit accruing under a pension plan is adjusted,
in a situation where the amount of adjustment could not be determined with certainty at the time the plan or an amendment to the plan was submitted for registration because the amount of adjustment was related to the investment earnings of the pension fund or to future changes in a general wage or price index;
“excess employee contributions” means, in respect of the determination of the commuted value of a defined benefit, the total of the contributions that were made by a member, with interest, less the amount of the member’s total contributions required to offset the percentage of the commuted value of the pension benefit fixed by the plan or the Act to be funded by the member;(cotisations excédentaires du salarié)
“experience deficiency” means, when applied to a pension plan established before the commencement date of section 10 of the Act, any deficit determined before the commencement date at the time of a review of the plan that is attributable to factors other than(déficit actuariel)
(a) the existence of an initial unfunded liability, or
(b) the failure of the employer or organization of employees to make any payment as required by the terms of the plan or by the law as it existed immediately before the commencement of section 10 of the Act;
“fully vested” means, with reference to a member of a pension plan who has not terminated employment or otherwise ceased to be a member of the plan, to have acquired an unconditional entitlement under the plan to receive(entièrement dévolu)
(a) for a defined contribution plan, one hundred per cent of the pension benefit provided under the plan, or
(b) for a defined benefit plan, one hundred per cent of the pension benefit accrued in accordance with the benefit formula provided under the plan;
“going concern assets” means the value of the assets of a pension plan, including accrued and receivable income items, as of a specific review date, determined on the basis of a going concern valuation;(actifs évalués sur une base de permanence)
“going concern excess” means, in respect of a pension plan, the amount, if any, by which the going concern assets exceed the sum of the following:(excédent évalué sur une base de permanence)
(a) the going concern liabilities, and
(b) the amount equal to the provision for adverse deviations;
“going concern liabilities” means the actuarial present value of the accrued benefits of a pension plan, including amounts due and unpaid, as of a specific review date, determined on the basis of a going concern valuation;(passifs évalués sur une base de permanence)
“going concern ratio” means, in respect of a pension plan, the quotient obtained by dividing the going concern assets by the going concern liabilities, both determined as of the review date of the most recently filed actuarial valuation report; (ratio évalué sur une base de permanence)
“going concern unfunded liability” means, in respect of a pension plan, the amount, if any, by which the sum of the following exceeds the going concern assets:(passif évalué sur une base de permanence non provisionné)
(a) the going concern liabilities; and
(b) the amount equal to the provision for adverse deviations;
“going concern valuation” means a valuation, prepared by an actuary on the basis of actuarial assumptions and methods that are considered by the actuary to be adequate and appropriate and that are in accordance with generally accepted actuarial principles, of the assets and liabilities of a pension plan that is not expected to be wound up in whole;(évaluation sur une base de permanence)
“individual pension plan” means an individual pension plan as defined in the Income Tax Regulations under the Income Tax Act (Canada);(régime de retraite individuel)
“initial unfunded liability” means, with reference to a pension plan that (dette actuarielle initiale non provisionnée)
(a) was established before the commencement of section 10 of the Act, and
(b) is not fully funded,
the amount by which, in accordance with the law as it existed immediately before the commencement of section 10 of the Act, the assets of the plan are required to be augmented in order to ensure that the plan is fully funded before the commencement of section 10 of the Act;
“insured plan” means a pension plan under which all the benefits are insured by a contract with an insurance company under which the insurance company guarantees the payment of the benefits;(régime assuré)
“maximum unlocking amount” means the lesser of(montant maximal qui n’est pas immobilisé)
(a) three times the amount of “M” as determined under subsection 22(2), and
(b) twenty-five per cent of the balance in a life income fund on the first day of the fiscal year in which a transfer is to be made under subsection 22(6.1);
“member’s retirement date” means the date on which a member of a pension plan could retire and expect to receive one hundred per cent of the benefit provided by the benefit formula fixed by the plan;(date de la retraite du participant)
“non-fixed income assets” means assets other than fixed income assets;(actif à revenu non fixe)
“normal cost” means, in respect of all or part of a period of twelve consecutive months to which an actuarial valuation report being prepared by the actuary of a pension plan pertains, the total amount resulting when the administrator applies the rate of contribution estimated by the actuary, on the basis of a going concern valuation, to be the rate required fully to fund the cost of benefits accruing under the plan for that period after the review date of the report;(coût d’exercice)
“provision for adverse deviations” means the percentage determined in accordance with sections 2.2 and 8.1 to 8.4 to be the provision for adverse deviations for the going concern liabilities of a pension plan;(provision pour écarts défavorables)
“solvency assets” means solvency assets determined in accordance with paragraph 10(2)(b) or (b.1), as the case may be;(actifs de solvabilité)
“solvency deficiency” Repealed: 2022-63
“solvency gain” means the excess of the solvency assets over the solvency liabilities;(gain de solvabilité)
“solvency liabilities” means solvency liabilities determined in accordance with paragraph 10(2)(a);(passifs de solvabilité)
“solvency ratio” means the quotient obtained by dividing the solvency assets of a pension plan by the solvency liabilities of the plan, both determined as of the review date of the most recently filed actuarial valuation report;(ratio de solvabilité)
“special payments” means payments referred to in paragraphs 36(1)(a), (b), (b.1), (b.2) and (c) and, where the employer makes scheduled dollar payments, the scheduled dollar payments under the plan and as determined in accordance with subsection 36(6);(paiements spéciaux)
“transfer assets” means, in reference to a pension plan, the total of any cash balances in the plan, any accrued and receivable income items in the plan and(actifs de transfert)
(a) the market value of investments held by the plan, or
(b) a value related to the market value of investments held by the plan by means of an averaging method that stabilizes short-term fluctuations of market values over a period of not more than five years,
determined as of a given date;
“transfer deficiency” means the amount by which the commuted value of a pension benefit exceeds the transfer value;(déficit de transfert)
“transfer ratio” means, with reference to a pension plan, the ratio of transfer assets of the plan, determined as of a given date, to the solvency liabilities of the plan, determined as of the same date;(indice de transfert)
“transfer value” means the portion of the commuted value of a pension benefit that may be transferred by the administrator of a pension plan as of a given date and is the product of (valeur de transfert)
(a) the commuted value as calculated in accordance with subsection 19(4), and
(b) the lesser of
(i) the most recently determined transfer ratio, and
(ii) one.
2(2)In the Act and this Regulation, “solvency deficiency” means a solvency deficiency determined in accordance with paragraph 10(2)(d) or (d.1), as the case may be.
93-144; 2001-1; 2020-51; 2022-63
Repealed
2.1Repealed: 2002, c.12, s.32
99-9; 2002, c.12, s.32
Interpretation
2020-51
2.2(1)For the purpose of the definition of “amount equal to the provision for adverse deviations”, the going concern liabilities referred to in the definition may exclude liabilities in respect of benefits for which an annuity contract has been purchased from an insurance company.
2.2(2)Despite the definition of “provision for adverse deviations” and sections 8.1 to 8.4, the provision for adverse deviations is deemed to be zero for a pension plan’s liabilities in respect of defined contribution benefits.
2020-51
DESIGNATED JURISDICTIONS
Designated Jurisdictions
3The following provinces of Canada are designated as designated jurisdictions in which there is in force legislation substantially similar to the Act:
(a) Alberta;
(a.1) British Columbia;
(b) Manitoba;
(c) Newfoundland;
(d) Nova Scotia;
(e) Ontario;
(e.1) Prince Edward Island;
(f) Québec; and
(g) Saskatchewan.
93-144
Exempt classes of pension plans
3.1The following classes of pension plans are exempt from the application of the Act and the regulations:
(a) a retirement compensation arrangement as defined in subsection 248(1) of the Income Tax Act (Canada);
(b) a pension plan that provides only benefits that exceed the maximum benefit limits applicable to a pension plan that is registered under the Income Tax Act (Canada);
(c) a pension plan that permits only contributions that exceed the maximum contribution limits applicable to a pension plan that is registered under the Income Tax Act (Canada); and
(d) an individual pension plan.
97-124; 2002, c.12, s.32; 2020-51
APPLICATIONS FOR REGISTRATION OF PENSION PLANS
Application for registration of pension plan
4(1)An application for registration of a pension plan under subsection 10(2) of the Act shall be accompanied by the prescribed fee, by all copies required under paragraphs 10(2)(b) to (d) of the Act and by a certified copy of the following documents and information:
(a) any deposit contracts with an insurance company;
(b) any group annuity contract;
(c) a written statement of investment policies and goals in accordance with subsection 44(3);
(d) a cost certificate in accordance with subsections (2) and (3);
(e) any reciprocal transfer agreement entered into in respect of the plan;
(f) if applicable, a substitute actuarial valuation report in accordance with subsection 9(3); and
(g) any information provided under subsection 23(1) of the Act and subsection 13(1).
4(2)A cost certificate required under paragraph (1)(d) shall be
(a) for a pension plan established on a date before the commencement of section 10 of the Act, the more recently prepared of
(i) a cost certificate prepared as of that date, and
(ii) the most recently prepared cost certificate, or
(b) for a pension plan established on or after the commencement of section 10 of the Act, prepared as of the effective date of the plan.
4(3)Subsections 9(7) and (8) apply with the necessary modifications to a cost certificate required under paragraph (1)(d).
2015-59
APPLICATIONS FOR REGISTRATION OF AMENDMENTS
Application for registration of amendment
5(1)An application for registration of an amendment to a pension plan under subsection 11(2) of the Act shall be accompanied by the prescribed fee, by a certified copy of the amending document as required under the Act, by a copy of the notice required under subsection 24(1) of the Act, if applicable, and by a certified copy of the following documents:
(a) the notice of application to register an amendment, if applicable; and
(b) if the amendment affects the solvency or funding of the plan, a cost certificate showing the effect that the amendment will have on the going concern liabilities, special payments and normal cost set out in and the changes that will result in the cost certificate or actuarial valuation report filed with respect to the immediately preceding review date.
5(2)If the Superintendent is of the opinion that a cost certificate provided under paragraph (1)(b) contains insufficient information, the Superintendent may require the administrator to have prepared and to file an actuarial valuation report in accordance with section 8 and subsections 9(4) and (8) and 10(1) and (2) and the report shall have as a review date the effective date of the amendment.
99-70; 2015-59
PENSION PLAN YEAR
Pension plan year
6(1)Subject to subsection (2), unless otherwise provided for in the documents that create, support or amend a pension plan, a pension plan year shall be a calendar year.
6(2)A pension plan year shall be twelve months in length unless otherwise authorized by the Superintendent and the Superintendent may impose such terms and conditions as the Superintendent considers appropriate when giving the authorization.
ANNUAL INFORMATION RETURNS
Annual information return
7(1)An annual information return filed under subsection 15(1) of the Act shall be accompanied by the prescribed fee.
7(2)Except for a pension plan year in which the effective date of the wind-up in whole of a pension plan falls, the administrator of a pension plan shall file an annual information return in respect of the plan with the Superintendent each year no later than six months after the last day of the pension plan year.
2001-1; 2015-59
GOING CONCERN VALUATION
2020-51
Going concern valuation
8(1)For the purposes of preparing a going concern valuation of a pension plan under this Regulation, the sum of
(a) the gain or loss to the plan, in the period between the review date of the most recently prepared going concern valuation and the review date of the current valuation, inclusive, determined by deducting the actual experience from the experience expected by the actuarial assumptions on which the most recently prepared valuation was based,
(b) the amount by which the going concern liabilities change during the period referred to in paragraph (a) as the result of an amendment to the plan during that period, and
(c) the amount by which the going concern assets or the going concern liabilities change during the period referred to in paragraph (a) as the result of any change in the actuarial methods or assumptions used in preparing the current going concern valuation as compared to those used in the preparation of the most recently prepared going concern valuation,
shall be the actuarial gain of the plan, if the sum is greater than zero, or shall be the actuarial loss of the plan, if the sum is less than zero, as of the review date of the going concern valuation.
8(2)In calculating the sum under subsection (1)
(a) the amount referred to in paragraph (1)(b) shall be treated as negative if the amendment referred to in that paragraph increases the going concern liabilities, and
(b) the amount referred to in paragraph (1)(c) shall be treated as negative if the change in the actuarial methods and assumptions referred to in that paragraph results in a decrease in going concern assets or an increase in going concern liabilities, as the case may be.
PROVISION FOR ADVERSE DEVIATIONS
2020-51
Calculation of provision for adverse deviations
2020-51
8.1(1)The provision for adverse deviations for a pension plan as at a particular review date is the percentage calculated using the following formula:
A + B
where
A =0.05, or the value specified in subsection (2);
B =the value determined in accordance with section 8.3, based on the pension plan’s combined target asset allocation for non-fixed income assets determined under section 8.2.
8.1(2)The value of “A” is zero and the value of “B” is zero in the formula in subsection (1) for a pension plan that is exempt under section 42.1 from containing provisions requiring an employer, or a person required to make contributions on behalf of an employer, to make contributions in respect of a solvency deficiency.
2020-51
Combined target asset allocation – provision for adverse deviations
2020-51
8.2(1)A pension plan’s combined target asset allocation for non-fixed income assets shall be determined in accordance with the following formula:
100% – C
where
C =the combined target asset allocation for fixed income assets, determined in accordance with subsection (2).
8.2(2)The value of “C” in the formula in subsection (1) shall be determined in accordance with the following formula:
[D + (0.5 x E) + (F x G) + (0.5 x F x H)] ÷ (100% – J)
where
D = subject to subsections (4) and (5), the sum of the pension plan’s target asset allocations for each of the investment categories listed in paragraphs 8.4(a), (c) to (e), (o) and (p), excluding any portions of the target asset allocations that are allocated to the assets described in “J”, expressed as a percentage;
E =subject to subsection (5), the sum of the pension plan’s target asset allocations for each of the investment categories listed in paragraphs 8.4(f) to (k) and (q);
F =the pension plan’s target asset allocation for the investment category listed in paragraph 8.4(b), expressed as a percentage;
G =subject to subsections (4) and (6), the portion of the value of “F” that is allocated to the investment categories listed in paragraphs 8.4(a), (c) to (e), (o) and (p), expressed as a percentage;
H =subject to subsection (6), the portion of the value of “F” that is allocated to the investment categories listed in paragraphs 8.4(f) to (k) and (q), expressed as a percentage;
J =the portion of the pension plan’s target asset allocation for each investment category listed in paragraphs 8.4(a), (c) to (k) and (o) to (q), expressed as a percentage, that is allocated to annuity contracts that have been purchased from an insurance company in respect of benefits.
8.2(3)The target asset allocation to be used in the calculation in subsection (2) is the target asset allocation in the pension plan’s statement of investment policies and goals that is in effect as of the same review date used for the calculation of the provision for adverse deviations under subsection 8.1(1).
8.2(4)In determining the values of “D” and “G” in subsection (2), any portion of a target asset allocation for an investment category listed in paragraphs 8.4(d), (o) and (p) shall not be included unless the pension plan’s statement of investment policies and goals sets out a minimum rating for target asset allocations of fixed income assets in the investment category, or the portion of the investment category, that is given by a credit rating agency recognized by a competent authority.
8.2(5)Any portion of a target asset allocation excluded under subsection (4) from the value of “D” shall be included in the value of “E” in the formula in subsection (2).
8.2(6)Any portion of a target asset allocation excluded under subsection (4) from the value of “G” shall be included in the value of “H” in the formula in subsection (2).
2020-51
Value of “B” in formula for provision for adverse deviations
2020-51
8.3(1)Subject to subsection (2), the value of “B” in the formula for provision for adverse deviations in subsection 8.1(1) is determined in accordance with the following table:
Table
Combined target asset allocation for non-fixed income assets of pension plan
Value of “B”
0%
0
20%
0.01
40%
0.03
50%
0.04
60%
0.05
70%
0.08
80%
0.11
100%
0.17
8.3(2)If a pension plan’s combined target asset allocation for non-fixed income assets falls between the percentages set out in the table in subsection (1), the value of “B” shall be interpolated linearly from the values set out for “B” in the table.
2020-51
Categories of investment
2020-51
8.4The following categories of investment are listed for the purposes of section 8.2:
(a) insured contracts;
(b) mutual or pooled funds or segregated funds;
(c) demand deposits and cash on hand;
(d) short-term notes and treasury bills;
(e) term deposits and guaranteed investment certificates;
(f) mortgage loans;
(g) real estate;
(h) real estate debentures;
(i) resource properties;
(j) venture capital;
(k) corporations referred to in subsection 11(2) of Schedule III of the Pension Benefits Standards Regulations, 1985, made under the Pension Benefits Standards Act, 1985 (Canada);
(l) employer-issued securities;
(m) Canadian stocks other than investments referred to in paragraphs (a) to (l);
(n) non-Canadian stocks other than investments referred to in paragraphs (a) to (l);
(o) Canadian bonds and debentures other than investments referred to in paragraphs (a) to (l);
(p) non-Canadian bonds and debentures other than investments referred to in paragraphs (a) to (l);
(q) investments other than investments referred to in paragraphs (a) to (p).
2020-51
ACTUARIAL VALUATION REPORTS AND
COST CERTIFICATES
2022-63
Actuarial valuation reports and cost certificates
2022-63
9(1)Subject to subsections (3.1), (3.11), (3.111), (3.113) and (5), the administrator of a pension plan established on or after the commencement of section 10 of the Act shall ensure that the plan is reviewed by and an actuarial valuation report respecting the plan is prepared by an actuary
(a) as of the date on which the plan is established, and
(b) subsequently at least once in every three years,
and each subsequent review date shall be not more than three years after the review date of the immediately preceding report.
9(2)Subject to subsections (3), (3.1), (3.11), (3.111), (3.113) and (5), the administrator of a pension plan established before the commencement of section 10 of the Act shall ensure that the plan is reviewed by and an actuarial valuation report respecting the plan is prepared by an actuary
(a) as of the commencement of section 10 of the Act, and
(b) subsequently at least once in every three years,
and each subsequent review date shall be not more than three years after the review date of the immediately preceding report.
9(3)An administrator may substitute for the actuarial valuation report required under paragraph (2)(a) the most recent actuarial valuation report prepared in respect of the pension plan, if
(a) the review date of the substitute report is not more than three years before the commencement of section 10 of the Act,
(b) the substitute report was prepared in a manner that is consistent with the Recommendations for Valuation of Pension Plans adopted by the Canadian Institute of Actuaries at the time of preparation of the report, and
(c) the administrator files the substitute report with the application for registration of the plan under the Act.
9(3.1)If an actuarial valuation report with a review date before April 1, 2011, indicates that the solvency ratio is less than 0.9, the administrator of the pension plan shall ensure that the plan is reviewed by, and an actuarial valuation report respecting the plan is prepared by, an actuary as of the date that is not more than twelve months after the review date of the previous report.
9(3.11)If an actuarial valuation report with a review date on or after April 1, 2011, but before December 31, 2019, indicates that the transfer ratio is less than 0.9, the administrator of the pension plan shall ensure that the plan is reviewed by, and an actuarial valuation report respecting the plan is prepared by, an actuary as of the date that is not more than twelve months after the review date of the previous report.
9(3.111)If an actuarial valuation report with a review date on or after December 31, 2019, indicates that the transfer ratio is less than 0.85, the administrator of the pension plan shall ensure that the plan is reviewed by, and an actuarial valuation report respecting the plan is prepared by, an actuary as of the date that is not more than twelve months after the review date of the previous report.
9(3.112)Subsections (3.11) and (3.111) do not apply to an actuarial valuation report respecting a pension plan referred to in subsection 8.1(2).
9(3.113)If an actuarial valuation report respecting a pension plan referred to in subsection 8.1(2) with a review date on or after April 1, 2011, indicates that the transfer ratio is less than 0.90, the administrator of the pension plan shall ensure that the plan is reviewed by, and an actuarial valuation report respecting the plan is prepared by, an actuary as of the date that is not more than twelve months after the review date of the previous report.
9(3.2)Subsections (3.1), (3.11), (3.111) and (3.113) do not apply to a plan that has been established for less than three years.
9(4)An actuary who prepares an actuarial valuation report as required under this Regulation or under the terms of a pension plan shall, on each such occasion, perform a going concern valuation of the plan that contains the following information, where applicable:
(a) an estimate of the normal cost, showing separately the employer contributions and the total of any member contributions, during the twelve month period immediately following the review date of the report;
(b) the rate of contribution respecting the normal cost in each of the twelve month periods, or parts of such a period, succeeding the initial twelve month period, up to the date on which the next actuarial valuation report will be prepared, showing, if any, the rule for allocating the rate between the employer and the members;
(c) details of any special payments made and required to be made under the terms of the plan, the Act or the regulations, showing separately the present value of, and the commencement and ending dates of the amortization period of, any new or remaining special payments and of any adjustment made or proposed to be made to the special payments since preparation of the most recently prepared actuarial valuation report;
(d) if the pension plan provides for an escalated adjustment, whether and to what extent the cost of or liability for the future cost of the adjustment has been accounted for; and
(e) for an actuarial valuation report with a review date on or after December 31, 2019, the provision for adverse deviations.
9(4.1)An actuary who prepares an actuarial valuation report shall account separately for funds in the reserve account.
9(5)A cost certificate in accordance with subsections (5.1) to (7.1) may be substituted for an actuarial valuation report required under subsection (1) or (2) in respect of an insured plan, a defined contribution plan or a pension plan funded by level premiums not extending beyond the retirement age for each individual member.
9(5.1)An actuary shall prepare a cost certificate referred to in subsection (5).
9(5.2)Notwithstanding subsection (5.1), where a pension plan is a defined contribution plan, the administrator may prepare a cost certificate referred to in subsection (5).
9(6)A cost certificate substituted under subsection (5) shall contain the following information, where applicable:
(a) an estimate of the normal cost, showing separately the employer contributions and the total of any member contributions, during the period to which the certificate relates; and
(b) the rate of contribution respecting the normal cost, showing, if any, the rule for allocating the cost between the employer and the members for subsequent pension plan years.
9(7)An actuary who prepares a cost certificate substituted under subsection (5) shall certify that
(a) the premiums paid under the pension plan are sufficient to provide for the payment of all benefits under the plan, and
(b) the information contained in the certificate is, to the best of the actuary’s knowledge and belief, true and correct.
9(7.1)The administrator of a defined contribution plan who prepares a cost certificate substituted under subsection (5) shall certify that
(a) the premiums paid under the defined contribution plan are sufficient to provide for the payment of all benefits under the plan, and
(b) the information contained in the certificate is, to the best of the administrator’s knowledge and belief, true and correct.
9(7.2)An actuary who prepares a cost certificate referred to in subsection (5) shall account separately for funds in the reserve account.
9(8)Unless otherwise required in this section, the administrator of a pension plan shall file an actuarial valuation report or a cost certificate prepared under this section with the Superintendent not more than nine months after the review date of the report or certificate.
9(9)A financial statement of the assets of a pension plan shall be prepared by the administrator of the fund in accordance with generally accepted accounting principles at the same time as an actuarial valuation report or cost certificate is prepared under this section and shall be filed at the same time as the report or certificate is required to be filed under this section or is filed, whichever occurs first.
9(10)Notwithstanding subsection (9), where a pension plan is a defined benefit plan with assets of two million dollars or more, a financial audit in respect of the assets shall be performed in accordance with generally accepted auditing standards at the same time as an actuarial valuation report or cost certificate is prepared under this section and shall be filed at the same time as the report or certificate is required to be filed under this section or is filed, whichever occurs first.
9(11)A person who prepares a financial statement under subsection (9) or an audited financial statement under subsection (10) shall account separately for funds in the reserve account.
94-78; 2001-1; 2007-86; 2011-71; 2015-59; 2020-51; 2022-63
SOLVENCY VALUATIONS
Solvency valuation
10(1)An actuary who prepares an actuarial valuation report as required under this Regulation or under the terms of a pension plan shall, on each such occasion,
(a) perform a solvency valuation of the pension plan, or
(b) if, in the opinion of the actuary, there is no solvency deficiency, certify in writing in the report that
(i) the assets of the plan are sufficient to provide for the payment of all benefits accrued under the plan and in accordance with the benefit formula provided for in the plan, and
(ii) the information contained in the report is, to the best of the actuary’s knowledge and belief, true and correct.
10(2)A solvency valuation performed under this Regulation or under a pension plan shall be performed in a manner so that, as of the review date of an actuarial valuation report,
(a) the solvency liabilities are not less than the present value of benefits
(i) accrued in accordance with the benefit formula provided for in the plan on the date of the valuation, without consideration of any provision for possible reduction of those benefits, and
(ii) determined as if the plan has been wound up, taking into account any liabilities for escalated adjustments and the requirements of member entitlements on winding up, including the requirements of subsection 49(6), but the requirements of paragraphs 19(4)(c) and (d) shall not be taken into consideration,
(b) for an actuarial valuation report with a review date before December 31, 2019, the solvency assets are the sum of
(i) the market value of investments held by the pension plan or a value related to the market value by means of an averaging method that stabilizes short-term fluctuations of market value over a period of not more than five years, with any cash balances and accrued and receivable income items added on,
(ii) the present value of any remaining special payments that are required to liquidate any experience deficiency or initial unfunded liability and are scheduled to be paid within
(A) five years after the review date of the actuarial valuation report,
(B) the extended period given by the Superintendent under subsection 36(1.1) or (1.2) in respect of a special payments schedule established under subsection 36(1.1) or (1.2),
(C) ten years after the review date of an actuarial valuation report referred to in subsection 36(1.22) in respect of a special payments schedule established under subsection 36(1.23), or
(D) ten years after the review date of an actuarial valuation report referred to in subsection 36(1.27) in respect of a special payments schedule established under subsection 36(1.28),
(iii) the present value of any remaining special payments required to liquidate any actuarial loss arising solely from an amendment to the plan granting benefits for employment before the effective date of the plan where such employment had not previously been recognized by the plan, and
(iv) the present value of any other special payments established on or after the commencement of the Act that are scheduled for payment within
(A) five years after the review date of the actuarial valuation report,
(B) the extended period given by the Superintendent under subsection 36(1.1) or (1.2) in respect of a special payments schedule established under subsection 36(1.1) or (1.2),
(C) ten years after the review date of an actuarial valuation report referred to in subsection 36(1.22) in respect of a special payments schedule established under subsection 36(1.23), or
(D) ten years after the review date of an actuarial valuation report referred to in subsection 36(1.27) in respect of a special payments schedule established under subsection 36(1.28),
(b.1) for an actuarial valuation report with a review date on or after December 31, 2019, the solvency assets are the sum of
(i) the market value of investments held by the pension plan or a value related to the market value by means of an averaging method that stabilizes short-term fluctuations of market value over a period of not more than five years, with any cash balances and accrued and receivable income items added on,
(ii) the present value of any special payments that are required to liquidate any going concern unfunded liability and are scheduled to be paid within five years after the review date of the actuarial valuation report,
(iii) the present value of any special payments that are required to liquidate any going concern unfunded liability arising solely from an amendment made to the plan on or after December 31, 2019, and that are scheduled to be paid within five years after the review date of the actuarial valuation report, and
(iv) the total amount of all letters of credit held in trust for the pension plan as of the review date of the actuarial valuation report, excluding the value of any special payments to which the letters of credit relate that are due after that review date,
(c) the present values referred to in subparagraphs (b)(ii), (iii) and (iv) or (b.1)(ii) and (iii), as the case may be, are determined on the basis of the interest rate assumed in the solvency valuation,
(d) for an actuarial valuation report with a review date before December 31, 2019, the solvency deficiency, if any, is the excess of the solvency liabilities over the solvency assets,
(d.1) for an actuarial valuation report with a review date on or after December 31, 2019, the solvency deficiency, if any, is the excess of 85% of the solvency liabilities over the solvency assets, and
(e) if there is no market value or value related to the market value under subparagraph (b)(i) for an investment of a pension plan and if the investment is issued or guaranteed by a government, the book value of the investment is used for the purposes of that subparagraph instead of the market value or value related to the market value.
10(3)If a certificate as provided for under paragraph (1)(b) is contained in the most recently filed actuarial valuation report of a pension plan, the Superintendent, if concerned after reviewing the report that the plan may have a solvency ratio of less than one hundred per cent, may require the administrator of the plan to have a solvency valuation performed as of the review date of the actuarial valuation report and to file the solvency valuation within six months after requiring the performance of the solvency valuation.
10(4)For the purposes of this Regulation, a solvency valuation performed as required under subsection (3) shall be deemed to be a solvency valuation performed under subsection (1) on the occasion of the performance of the actuarial valuation report to which it relates.
93-144; 94-78; 2001-1; 2011-71; 2017-35; 2020-51
ADMINISTRATION OF PENSION PLANS
Means of administration
11A pension fund shall be administered by means of one or any combination of the following:
(a) an insurance company under a contract of insurance;
(b) a trust in Canada governed by a written trust agreement under which the trustees are constituted from
(i) a trust company registered under the Trust Companies Act (Canada) or the Trust, Building and Loan Companies Licensing Act,
(ii) three or more individuals, at least three of whom reside in Canada and at least one of whom is not
(A) a person connected to more than ten per cent of the issued shares of an employer contributing to the pension fund or of an affiliate of such an employer, or
(B) a partner in or a proprietor, director, officer or employee of an employer contributing to the pension fund or an affiliate of such an employer, or
(iii) a corporate pension society established under the Pension Fund Societies Act (Canada) or the Pension Fund Societies Act;
(c) a person, board, agency, commission or other body made responsible under an Act of the Legislature for the administration of the pension fund; or
(d) under the Government Annuities Act (Canada).
2020-51
ADVISORY COMMITTEE
Formation
12(1)Within thirty days after the registration of a pension plan, the administrator shall give written notice to all members of the plan who have the right to vote to the effect that they may form an advisory committee by a majority vote.
12(2)An administrator may give notice under subsection (1) to members of a plan who are represented by a trade union by giving written notice to the trade union.
12(3)A notice under subsection (1) or (2) shall contain a list of the purposes of the advisory committee and of its entitlements under section 22 of the Act.
12(4)The advisory committee of each pension plan shall include at least three members of the plan.
DISCLOSURE OF INFORMATION
To eligible or required member
13(1)In addition to information listed in paragraphs 23(1)(a) and (b) of the Act, the administrator of a pension plan shall provide in a written statement to each person who will be eligible or is required to become a member of the plan
(a) the name, mailing address and telephone number of the administrator or other person who can supply additional information respecting the plan,
(b) a statement to the effect that
(i) the person may, on written request and without charge, inspect,
(ii) the person may make extracts from or copy, and
(iii) the administrator will, on request and upon payment of a fee, provide copies of,
any documents or information that the person is entitled to inspect under the Act or the regulations,
(c) if a pension plan permits or requires a member to make contributions, a brief description of how the assets of the plan are invested, of the method used to determine interest on the member’s contributions with interest or additional voluntary contributions and of how surplus is allocated on the wind-up of the plan and in such other circumstances as the plan may provide, and
(d) if a pension plan permits optional ancillary contributions, a statement that such contributions may be forfeited to the plan if conditions make it impossible or inadvisable to purchase any of the optional ancillary benefits provided for by the plan.
13(2)Information listed in paragraphs 23(1)(a) and (b) of the Act and in subsection (1) shall be supplied
(a) to each person who becomes a member of a pension plan on the date on which the pension plan is established, within sixty days after that date,
(b) to each person who becomes eligible to become a member of the pension plan upon becoming employed by the employer, within sixty days after the date on which the person becomes so employed, and
(c) subject to paragraph (b), to each person who is likely to become eligible to become a member of the pension plan, within sixty days before the date on which the person is likely to become eligible.
2003-87
Notice of amendment
14Unless notice is dispensed with under subsection 24(4) of the Act, the administrator of a pension plan shall provide notice and an explanation of any amendment to the plan to each member, former member and other person affected by the amendment within sixty days after the date on which the amendment is registered.
Written statements to members or former members
2022-63
15(1)The administrator of a pension plan shall annually provide to each member, not later than nine months after each pension plan year end, a written statement containing the following information, as recorded on the records of the administrator:
(a) the name and provincial registration number of the plan;
(b) the member’s name, social insurance number and date of birth;
(c) the period covered by the statement;
(d) the date on which the member became a member and the number of years, including parts of a year, of continuous employment of the member;
(e) whether or not, on the last day of the period covered by the statement, the member is fully vested respecting the benefits accrued before and after the commencement of the Act and, if not, the date or dates on which the member will be fully vested;
(f) the amount of any contributions, showing separately the amount of any additional voluntary contributions, made to the pension fund by the member during the period covered by the statement;
(g) the amount of any contributions, excluding contributions referred to in paragraph (f) and showing separately the amount of any additional voluntary contributions, that were made to the pension fund by the member, with interest, to the end of the period immediately preceding the period covered by the statement;
(h) the amount of interest credited to the amounts referred to in paragraphs (f) and (g) during the period covered by the statement, showing separately the amount of interest on the additional voluntary contributions;
(i) the total amount of the amounts referred to in paragraphs (f), (g) and (h);
(j) if the plan is a defined contribution plan, the amounts referred to in paragraphs (f), (g), (h) and (i) when determined, with the necessary modifications, with reference to the amount of employer contributions and of any surplus money allocated to the member;
(k) if the plan is a defined contribution plan and any surplus money is to be allocated to the members, a statement indicating whether surplus money is allocated as employer contributions, as member contributions or as both;
(l) if the plan is a defined benefit plan,
(i) if applicable, the number of years, including parts of a year, of employment credited to the member under the plan, determined as of the end of the period covered by the statement,
(ii) the annual amount of pension benefit that would be payable at the member’s retirement date, determined as of the end of the period covered by the statement, and
(iii) if the pension benefit referred to in subparagraph (ii) is reducible by reason of payments under the Canada Pension Plan, the Quebec Pension Plan or the Old Age Security Act (Canada), a statement to that effect;
(l.1) for statements provided on or after October 1, 2005, if the plan pays a pension in the form of a joint and survivor pension,
(i) an estimate of the annual benefit payable under the joint and survivor pension in the circumstances specified in the estimate, or
(ii) a statement indicating where a member may access the information referred to in subparagraph (i);
(m) if notice of an amendment to the pension plan that affects the member has been dispensed with by the Superintendent under subsection 24(4) of the Act during the period covered by the statement, an explanation of the amendment;
(n) for a defined benefit plan established under one or more collective agreements or a trust agreement where the obligation of an employer or a person required to make contributions on behalf of an employer to contribute to the pension fund is limited to a fixed amount set out in a collective agreement or trust agreement, a statement that pension benefits might be reduced if the assets of the plan were insufficient to meet the liabilities of the plan on wind-up; and
(o) if a pension plan permits optional ancillary contributions, a statement that such contributions may be forfeited to the plan if conditions make it impossible or inadvisable to purchase any of the optional ancillary benefits provided for by the plan.
15(1.1)Subsection (1) applies, with the necessary modifications, to former members.
Repealed: 2022-63
15(2)Notwithstanding section 14, the administrator of each pension plan shall ensure that
(a) the explanation of the provisions of the plan and of a person’s rights and obligations in respect of the plan provided under subsection 23(1) of the Act are reviewed and, where necessary, revised
(i) for a plan established before the commencement of section 10 of the Act, within five years after the date of commencement, or
(ii) for a plan established on or after the commencement of section 10 of the Act, within five years after the date on which the plan is established,
and subsequently at least once in every five years, so that the explanation includes any amendment made to the plan that is not included in the most recent version of the explanation, and
(b) a copy of the revised version of the explanation is provided to each member with the next following written statement provided under subsection (1).
Repealed: 2022-63
15(3)If a pension plan permits optional ancillary contributions, the administrator shall
(a) before a member makes his or her first optional ancillary contribution, provide the member with a statement that such contributions may be forfeited to the plan if conditions make it impossible or inadvisable to purchase any of the optional ancillary benefits provided for by the plan,
(b) ensure that the member acknowledges in writing that he or she has received and read the statement referred to in paragraph (a).
2002, c.12, s.32; 2003-87; 2020-51; 2022-63
Statements on termination of employment, retirement or death
16(1)A written statement given under subsection 26(1) of the Act to a member who terminates employment or otherwise ceases to be a member of a pension plan for reasons other than retirement or death and who is entitled to a deferred pension shall contain the following information, as recorded on the records of the administrator:
(a) the name of the plan and its provincial registration number;
(b) the member’s name, mailing address, social insurance number and date of birth;
(c) the date on which the member became a member, the number of years, including parts of a year, of continuous employment of the member and, if applicable, the number of years, including parts of a year, of employment credited under the plan;
(d) the member’s retirement date under the plan;
(e) the periodic amount of the deferred pension to which the member is entitled under the plan on termination of employment or cessation of membership and any options respecting the deferred pension including the dates of early and postponed commencement of the payment of pension;
(f) the amount of any accumulated additional voluntary contributions made by the member, including interest credited to those contributions, to the end of the period covered by the statement;
(g) the amount of any excess employee contributions;
(h) if applicable, the formula for reducing the deferred pension by reason of payments under the Canada Pension Plan, the Quebec Pension Plan or the Old Age Security Act (Canada) and the amount of the resulting reduction to the periodic amount of the deferred pension;
(i) an explanation of any indexation provisions, including an escalated adjustment, applicable to the deferred pension;
(j) the commuted value of the deferred pension determined in accordance with subsection 35(7) of the Act and this Regulation or, where the commuted value determined under the plan is more advantageous to the member, the commuted value determined under the plan;
(k) if the deferred pension to which the member is entitled relates to employment after the commencement of section 35 of the Act and is not a deferred pension to which subsection 35(2) of the Act applies, the amount of accumulated contributions made by the member, with interest, in respect of employment after the commencement of section 35 of the Act;
(l) an explanation of the benefit payable on death if the member were to die before the commencement of payment of the deferred pension;
(m) an explanation of the pension payable on death if the member or the member’s spouse or common-law partner were to die after the commencement of payment of the pension;
(n) an explanation of any other benefit to which the member may be entitled under the plan and, where applicable, the date on which the benefit would commence to be paid and the date on which the benefit would cease to be paid; and
(o) an explanation of the member’s options under section 36 of the Act, including
(i) the date before which the member must deliver a direction to the administrator, and
(ii) in respect of a transfer or purchase, the transfer value that may be transferred immediately and the manner in which any balance will be transferred.
16(2)A written statement given under subsection 26(1) of the Act to a member who terminates employment or otherwise ceases to be a member of a pension plan for reasons other than retirement or death and who is not entitled to a deferred pension shall contain the following information, as recorded on the records of the administrator:
(a) the name of the plan and its provincial registration number;
(b) the member’s name, mailing address, social insurance number and date of birth;
(c) the date on which the member became a member, the number of years, including parts of a year, of continuous employment of the member and, if applicable, the number of years, including parts of a year, of employment credited under the plan;
(d) the amount of any contributions, excluding contributions referred to in paragraph (e), that have been made to the pension fund by the member, including interest credited to those contributions, to the end of the period covered by the statement;
(e) the amount of any accumulated additional voluntary contributions made by the member, including interest credited to those contributions, to the end of the period covered by the statement;
(f) a description of any other benefits under the plan to which the member may be entitled; and
(g) an explanation of any options that the member may elect and the date before which the member must deliver a direction to the administrator.
16(3)A written statement given under subsection 26(1) of the Act to a member of a pension plan who is retiring shall contain the following information, as recorded on the records of the administrator:
(a) the name of the plan and its provincial registration number;
(b) the member’s name, mailing address, social insurance number and date of birth;
(c) the date on which the member became a member, the number of years, including parts of a year, of continuous employment of the member and, if applicable, the number of years, including parts of a year, of employment credited under the plan;
(d) an explanation of any options respecting payment that the member may elect and the date before which the member must deliver a direction to the administrator;
(e) the date on which payment of the member’s pension will commence;
(f) the periodic amount of the pension to which the member is or will be entitled based on any options elected by the member and, if applicable,
(i) the amount by which the periodic amount was or will be reduced or increased as a result of the member’s election of early or postponed retirement,
(ii) the amount by which the periodic amount is or will be increased as the result of a purchase of benefits with any additional voluntary contributions with interest,
(iii) the amount of any pension benefit purchased with the commuted value of a deferred pension, with interest, previously transferred to the plan on behalf of the member from another pension plan and the resulting increase in the periodic amount,
(iv) the formula for reducing the pension by reason of payments under the Canada Pension Plan, the Quebec Pension Plan or the Old Age Security Act (Canada) and the amount of the resulting reduction to the periodic amount of the pension,
(v) the amount of any bridging benefit and the date on which payment of the bridging benefit commences and ceases, and
(vi) an explanation of any indexation provisions, including those relating to an escalated adjustment, applicable to the pension;
(g) the amount of any excess employee contributions and the rate of interest to be credited on those contributions from the date of retirement to the date of payment, inclusive;
(h) a description of any benefit payable in the event of the member’s death and the name of the designated beneficiary of that benefit;
(i) a description of any benefit payable in the event of the death of the member’s spouse or common-law partner; and
(j) a description of any other benefit or payment under the plan to which the member is or may be entitled.
16(4)A written statement given under subsection 26(1) of the Act to a person who, as a result of the death of a member or of a person who has terminated employment or otherwise ceased to be a member of a pension plan and was entitled to a deferred pension payable from the pension fund, becomes entitled to a benefit under a pension plan shall contain the following information, as recorded on the records of the administrator:
(a) the name of the plan and its provincial registration number;
(b) respecting a deferred pension
(i) the commuted value of the deferred pension determined in accordance with subsection 35(7) of the Act and this Regulation or, where the commuted value determined under the plan is more advantageous to the person, the commuted value determined under the plan,
(ii) the amount of the pre-retirement death benefit and, where the deceased is covered by a group life insurance plan, any amount by which the pre-retirement death benefit was reduced by the amount of the death benefit payable under the group life insurance plan, and
(iii) the amount of any excess employee contributions;
(c) if applicable, the amount of the deceased person’s accumulated contributions with interest;
(d) the amount of any accumulated additional voluntary contributions with interest;
(e) a description of any other benefits under the pension plan to which the person may be entitled; and
(f) an explanation of any options that the person may elect and the date before which the person must deliver a direction to the administrator.
16(5)If the commuted value of a benefit to which a written statement prepared under this section relates has been divided under section 44 of the Act, amounts and values contained in the statement shall reflect the revaluation made under section 44 of the Act and under this Regulation.
2002, c.12, s.32; 2011-60
Availability of documents and information for inspection
17The following documents and information shall be made available by the administrator of a pension plan for inspection under subsection 27(1) of the Act:
(a) any documents or information in respect of the plan that are required to be filed under the Act, the regulations or any other legislation;
(b) if the current plan is the successor of a previous pension plan,
(i) the provisions of the previous plan, including any amendments to it, and
(ii) any documents or information in respect of the application for registration of the previous plan or any amendment to it that are or were required to be filed under the Act, the regulations, the predecessor of the Act or the regulations under it or any other legislation;
(c) any document that delegates the administration of the pension plan or pension fund;
(d) copies of the parts of any agreement that concern the purchase or sale of an employer’s business or the assets of an employer’s business and that relate to the plan; and
(e) in respect of the spouse or common-law partner of a member or former member, any information to which the member or former member would be entitled under section 16 and, for the purposes of
(i) a proceeding respecting the division of property between a member or former member and his or her spouse or common-law partner,
(ii) the implementation of a domestic contract,
(iii) relief that may be granted in a divorce proceeding or an application for enforcement of a support order under the Divorce Act, 1985 (Canada) or under similar legislation in another jurisdiction, or
(iv) an application respecting an order for maintenance or a support order or enforcement of an order for maintenance or a support order under the Family Law Act or the Support Enforcement Act or similar legislation in another jurisdiction,
(v) Repealed: 2011-60
any information that could be set out in a written statement under section 33.
2011-60; 2020, c.24, s.16
Portion of benefit attributable to employment after commencement of s.35 of Act
18If a pension plan provides for a pension benefit based on
(a) the member’s rate of remuneration as of the date, or
(b) the average of the rates of remuneration of the member over a specified or limited time period up to the date,
on which the member terminates employment or otherwise ceases to be a member, the portion of the pension benefit attributable to employment after the commencement of section 35 of the Act shall be the difference obtained by deducting from the pension benefit, the pension benefit calculated in accordance with the provisions of the plan and with the years, including parts of a year, of employment credited to the member under the plan before the commencement of section 35 of the Act, using the rate of remuneration of the member as of the date of termination of employment or cessation of membership or the average of the rates of remuneration of the member over the specified or limited time period, as the case may be.
OPTIONAL ANCILLARY BENEFITS
2003-87
Conversion of optional ancillary contributions
18.1(1)Subject to subsection (2), the conversion of optional ancillary contributions to optional ancillary benefits shall be determined in accordance with actuarial assumptions and methods that are considered by the actuary to be adequate and appropriate and in accordance with generally accepted actuarial principles.
18.1(2)If the Superintendent establishes or approves a method for converting optional ancillary contributions to optional ancillary benefits, the value of the optional ancillary benefits determined by the method established or approved by the Superintendent shall prevail.
2003-87
TRANSFERS AND PURCHASES
Transfer of commuted value of a deferred pension
19(1)This section applies to the transfer of the commuted value of a deferred pension under a pension plan or under paragraph 36(1)(a) or subsection 36(1.1) or (8) of the Act and, with the necessary modifications or where specifically indicated, to a purchase of a life or deferred life annuity under the Act.
19(2)A defined contribution plan is a class of pension plan to which subsection 36(3) of the Act does not apply.
19(3)Members of a pension plan referred to in subsection 26(1) of the Act who
(a) terminate employment or otherwise cease to be members of the plan,
(b) desire to exercise any rights under subsection 36(1) or (1.1) of the Act, and
(c) deliver a written direction to that effect to the administrator before the date of termination or cessation,
are a class of employees to whom subsection 26(1) of the Act does not apply.
19(4)Subject to subsection (5) and except as provided for under subsection 35(7) of the Act and under section 29 and subsection 49(6), the commuted value of a pension benefit, including an ancillary benefit referred to in subsection 32(2) of the Act, shall not be less than
(a) in respect of a transfer before July 1, 1994 of a pension benefit payable from the pension fund, the value determined in accordance with the Recommendations for the Minimum Transfer Values of Deferred Pensions adopted by the Canadian Institute of Actuaries and effective on November 14, 1988,
(a.1) in respect of a transfer from July 1, 1994, to July 31, 2005, both dates inclusive, of a pension benefit payable from the pension fund, the value determined in accordance with the Recommendations for the Computation of Transfer Values from Registered Pension Plans adopted by the Canadian Institute of Actuaries and effective on September 1, 1993,
(a.2) in respect of a transfer from August 1, 2005, to March 31, 2009, both dates inclusive, of a pension benefit payable from the pension fund, the value determined in accordance with the Standard of Practice for Determining Pension Commuted Values adopted by the Canadian Institute of Actuaries and effective on February 1, 2005,
(a.3) in respect of a transfer on or after April 1, 2009, of a pension benefit payable from the pension fund, the value determined in accordance with the Standards of Practice - Practice Specific Standards for Pension Plans adopted by the Canadian Institute of Actuaries and effective on April 1, 2009, as amended from time to time,
(b) in respect of a purchase of a life or deferred life annuity, the amount required to purchase the benefit from a financial institution that offers life or deferred life annuities conforming to section 23, or
(c) in respect of a wind-up that is effective after January 31, 2001, if subsection 50(1) does not apply, the greater of
(i) the value determined under paragraph (a.1), (a.2) or (a.3), as the case may be, and
(ii) the going concern liabilities of the accrued pension benefit.
(d) Repealed: 2005-153
19(5)If the Superintendent establishes or approves a method for determining the commuted value of a pension benefit that is different from the method established under paragraph (4)(a), (a.1), (a.2), (a.3) or (b), the value determined by the method established or approved by the Superintendent shall prevail.
19(6)The administrator of a pension plan shall, at least thirty days before using any basis for determining the commuted value of a pension benefit under subsection (4), file with the Superintendent a document setting out the basis, the assumptions relative to the basis and any other information concerning the basis that the Superintendent requires.
19(7)Subject to subsection (8), an administrator of a pension plan who has reason to believe that the transfer ratio of the plan
(a) has been reduced by more than ten per cent since the review date of the most recently filed actuarial valuation report, or
(b) would be reduced by more than ten per cent should a transfer take place because the commuted value of the pension benefit to be transferred is greater than the value determined under paragraph (4)(a), (a.1), (a.2) or (a.3), as the case may be,
shall not transfer the transfer value or the commuted value of a pension benefit until a new transfer ratio has been determined by an actuary and the transfer is carried out under subsection (10) or (11) or until the transfer has been approved by the Superintendent under section 37 of the Act.
19(8)Subsection (7) does not apply to an administrator who has filed a substitute actuarial valuation report under subsection 9(3) and who proposes to transfer the commuted value of a pension benefit between the date of filing the substitute report and the date as of which the first actuarial valuation report subsequent to the substitute report is filed, inclusive.
19(9)If an administrator of a pension plan who has filed a substitute actuarial valuation report under subsection 9(3) transfers the commuted value of a pension benefit in the period described in subsection (8) and it is subsequently determined that the transfer ratio of the plan is less than one at the time of the review date of the first actuarial valuation report performed subsequent to the substitute report, the employer shall make a contribution in accordance with subsection 35(3) to the pension fund that is equal to the difference obtained by deducting the product of the total of the amounts transferred during the period and the transfer ratio from the total of the amounts transferred during the period.
19(10)Subject to subsections (7) and (11), an administrator of a pension plan who is given a direction to transfer the commuted value of a pension benefit under the plan or the Act or who has required a member to request a transfer under subsection 36(8) of the Act shall transfer the transfer value of the benefit.
19(11)If the transfer ratio of a pension plan is less than one, the administrator may transfer the transfer value of the benefit under subsection (10) but shall not transfer the commuted value of the benefit unless
(a) the administrator is satisfied that an amount equal to the transfer deficiency relative to the transfer has been remitted by the employer to the pension fund, or
(b) the transfer deficiency relative to the transfer is less than five per cent of the Year’s Maximum Pensionable Earnings for the calendar year and the total of transfer deficiencies relative to all transfers made since the last review date of the most recently filed actuarial valuation report does not exceed five per cent of the transfer assets of the plan as of the date of the request for the transfer.
19(12)If a portion of the commuted value of a pension benefit is transferred in the initial transfer, the administrator shall transfer the balance, including interest on the balance calculated at the interest rate provided for under subsection (13), (13.1), (13.2) or (13.3), as the case may be, within five years after the date of the initial transfer.
19(13)Where the initial transfer referred to in subsection (12) is made before July 1, 1994, the interest rate used in a calculation under subsection (12) is the month-end value of
(a) for non-indexed pension benefits, the nominal rate of interest on long-term Government of Canada bonds, CANSIM series B14013, in the second calendar month preceding the month in which the event to which the calculation relates occurs, rounded up to the next multiple of one-half per cent, or
(b) for indexed pension benefits, the typical chartered bank five-year nominal mortgage rate, CANSIM series B14051, in the second calendar month preceding the month in which the event to which the calculation relates occurs, less one-half per cent.
19(13.1)Where the initial transfer referred to in subsection (12) is made from July 1, 1994, to July 31, 2005, both dates inclusive, the interest rate used in a calculation under subsection (12) is the interest rate known as the “nominal rate” in the Recommendations for the Computation of Transfer Values from Registered Pension Plans adopted by the Canadian Institute of Actuaries and effective on September 1, 1993.
19(13.2)Where the initial transfer referred to in subsection (12) is made from August 1, 2005, to March 31, 2009, both dates inclusive, the interest rate used in a calculation under subsection (12) shall be the interest rate applicable for the month in which the initial transfer amount was determined, in accordance with the standards for the computation of the commuted value of non-indexed pensions in the Standard of Practice for Determining Pension Commuted Values adopted by the Canadian Institute of Actuaries and effective on February 1, 2005.
19(13.3)When the initial transfer referred to in subsection (12) is made on or after April 1, 2009, the interest rate used in a calculation under subsection (12) shall be the interest rate applicable for the month in which the initial transfer amount was determined, in accordance with the standards for the computation of the commuted value of non-indexed pensions in the Standards of Practice - Practice Specific Standards for Pension Plans adopted by the Canadian Institute of Actuaries and effective on April 1, 2009, as amended from time to time.
19(14)This section applies to any subsequent transfers under subsection (12).
94-78; 2001-1; 2002, c.12, s.32; 2005-102; 2005-153; 2009-42; 2015-59
Retirement savings arrangements
20For the purposes of subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act, a retirement savings arrangement shall be
(a) a locked-in retirement account, being a registered retirement savings plan as defined in the Income Tax Act (Canada),
(b) a life income fund, being a registered retirement income fund as defined in the Income Tax Act (Canada), or
(c) a life or deferred life annuity.
2001-1; 2002, c.12, s.32
Transfer to locked-in retirement account
21(1)In this section and in section 22
“owner” means the person the commuted value of whose benefit has been transferred in whole or in part into a retirement savings arrangement referred to in section 20.
21(2)Subject to section 19, the following provisions apply to a contract between an owner and a financial institution acting as a trustee for a locked-in retirement account referred to in paragraph 20(a) and, if a conflict exists between this subsection and the terms of a contract, this subsection shall prevail:
(a) the only money that may be transferred into the account are the sums originating, directly or indirectly, from
(i) the fund of a pension plan that conforms with the Act and this Regulation or with similar legislation in another jurisdiction, if the money is being transferred under section 36 of the Act or under a similar provision in legislation in another jurisdiction,
(ii) another retirement savings arrangement that conforms with the Act and this Regulation, or
(iii) a life or deferred life annuity under a contract that conforms with the Act and this Regulation;
(b) except as provided for elsewhere in this Regulation, the balance of the money in the account, in whole or in part, may be converted at any time only into a life or deferred life annuity that conforms to section 23;
(c) if the owner dies before signing a contract under which an annuity is purchased under paragraph (b), the balance of the money in the account shall be paid
(i) to the spouse or common-law partner of the owner, unless the spouse or common-law partner waives in the form provided by the Superintendent all rights that he or she may have in the account under the Act, this Regulation or the contract,
(ii) if the owner has a spouse or common-law partner who has waived all rights under subparagraph (i) or if the owner does not have a spouse or common-law partner, to a beneficiary on death designated by the owner, or
(iii) if the owner has a spouse or common-law partner who has waived all rights under subparagraph (i) or if the owner does not have a spouse or common-law partner and if the owner has not designated a beneficiary on death, to the estate of the owner;
(d) the owner may withdraw the balance of the money in the account, in whole or in part, and receive a payment or series of payments if
(i) a physician certifies in writing to the financial institution that is a party to the contract that the owner suffers from a significant physical or mental disability that considerably reduces life expectancy, and
(ii) if the owner has a spouse or common-law partner, the owner delivers to the financial institution a waiver completed by the spouse or common-law partner in the form provided by the Superintendent;
(e) the owner may withdraw an amount from the account if
(i) the amount is withdrawn to reduce the amount of tax that would otherwise be payable under Part X.1 of the Income Tax Act (Canada) by the owner, and
(ii) the financial institution, notwithstanding section 20, establishes a sub-account, that is not a registered retirement savings plan, of the locked-in retirement account, and the owner deposits the amount withdrawn, less any amount required to be withheld by the financial institution under the Income Tax Act (Canada), into the sub-account;
(f) unless the contract provides for an early cashing-in value before the expiration of the term agreed to for the investment, the owner is entitled at any time after the term has expired
(i) to transfer before a conversion referred to in paragraph (b), the balance of the money in the account, in whole or in part, to the pension fund of a pension plan that conforms with the Act and this Regulation or with similar legislation in another jurisdiction or to a retirement savings arrangement that conforms with the Act and this Regulation, or
(ii) to convert the balance of the money in the account, in whole or in part, into a life or deferred life annuity that conforms to section 23;
(f.1) the owner shall not be entitled to make a transfer under subparagraph (f)(i) to a pension plan that is not registered in the Province unless
(i) the pension plan is registered for persons employed in a designated jurisdiction, and
(ii) the owner is employed in that jurisdiction by an employer who is making contributions on behalf of the owner to the pension fund that is to receive the amount to be transferred;
(g) subsections (8.1) to (11) apply to paragraph (f) with the necessary modifications;
(g.1) the owner may withdraw the balance of the money in the account if
(i) the owner and his or her spouse or common-law partner, if any, are not Canadian citizens,
(ii) the owner and his or her spouse or common-law partner, if any, are not resident in Canada for the purposes of the Income Tax Act (Canada), and
(iii) the owner’s spouse or common-law partner, if any, waives, in the form provided by the Superintendent, any rights that he or she may have in the account under the Act, this Regulation or the contract;
(h) the commuted value of the owner’s benefits provided under the contract shall be determined in accordance with the Act and this Regulation if it is divided under section 44 of the Act;
(i) no money transferred, including interest, shall be assigned, charged, anticipated, given as security or subjected to execution, seizure, attachment or other process of law except under section 44 of the Act or subsection 57(6) of the Act;
(j) a transaction in contravention of paragraph (i) is void;
(k) no money transferred, including interest, shall be commuted or surrendered during the lifetime of the owner except under paragraph (d) or (e), section 44 of the Act or subsection 57(6) of the Act;
(l) a transaction in contravention of paragraph (k) is void;
(m) an amendment to the contract shall not be made
(i) that would result in a reduction of the benefits arising from the contract unless the owner is entitled, before the effective date of the amendment, to transfer the balance of the money in the account in accordance with paragraph (f) and, unless a notice is delivered to the owner at least ninety days before the effective date, describing the amendment and the date on which the owner may exercise the entitlement to transfer,
(ii) unless the contract as amended remains in conformity with the Act and this Regulation, or
(iii) except to bring the contract into conformity with requirements under an Act of the Legislature or other legislation in another jurisdiction;
(n) a transfer under subparagraph (f)(i) or (m)(i) may, at the option of the financial institution that is a party to the contract and if not otherwise stipulated in the contract, be effected by the remittance to the owner of the investment securities respecting the account;
(o) unless the contract provides for an early cashing-in value before the expiration of the term agreed to for the investments, if there is money invested in the account that may be transferred under subparagraph (f)(i) or (m)(i), such funds shall be transferred no more than thirty days after the owner’s application for the transfer; and
(p) sections 27 to 33 apply with the necessary modifications to the division of the money in the account on the breakdown of a marriage or common-law partnership.
21(3)Repealed: 2001-1
21(4)If the information provided in the form referred to in subsection (8.1) indicates that the commuted value transferred was determined on transfer in a manner that differentiated, while the owner of the account was a member of the plan, on the basis of the sex of the owner, the only money that may subsequently be transferred into the account is money that is also differentiated on the same basis.
21(5)No money, including interest, transferred under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act to a locked-in retirement account shall subsequently be used to purchase a life or deferred life annuity that differentiates on the basis of the annuitant’s sex, unless the commuted value of the deferred pension transferred from the plan into the account was determined on transfer in a manner that differentiated, while the owner of the account was a member of the plan, on the basis of sex of the owner.
21(6)A financial institution that is authorized to offer registered retirement savings plans and that proposes to act under a contract as a transferee of a locked-in retirement account referred to in paragraph 20(a) shall register as a trustee for the proposed locked-in retirement account by filing a completed form provided by the Superintendent with the Superintendent and paying the prescribed fee.
21(7)The Superintendent may refuse to register a financial institution as the trustee of a locked-in retirement account referred to in paragraph 20(a) if the financial institution does not comply with the Act and this Regulation.
21(7.1)The Superintendent may revoke or suspend a financial institution’s registration as the trustee of a locked-in retirement account referred to in paragraph 20(a) if the financial institution does not comply with the Act and this Regulation.
21(7.2)If a financial institution’s registration as the trustee of a locked-in retirement account referred to in paragraph 20(a) is revoked or suspended, the account shall continue to be subject to the requirements of the Act and this Regulation until all the assets of the account have been dispersed or transferred.
21(7.3)A financial institution shall file with the Superintendent a sample commercial copy of every form and contract that it uses with its clients with respect to a locked-in retirement account referred to in paragraph 20(a), including any amended form or contract, within sixty days of the commencement of its use.
21(8)Repealed: 2001-1
21(8.1)Before transferring money to a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act, an administrator shall complete the applicable portions of the form provided by the Superintendent and ensure that the owner and the financial institution have completed the portions of that form that are applicable to them.
21(8.2)Before accepting a transfer of money into a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act, a financial institution shall complete the applicable portions of the form provided by the Superintendent and ensure that the owner and the administrator have completed the portions of that form that are applicable to them.
21(9)An administrator shall not transfer money to a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act unless
(a) the financial institution that the money is being transferred to is registered as the trustee of the locked-in retirement account, and
(b) the form referred to in subsection (8.1) is completed in accordance with that subsection and forwarded with the money to the financial institution.
21(10)A financial institution shall not accept a transfer of money into a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act unless the financial institution has complied with subsection (8.2).
21(11)An administrator and a financial institution that have completed the form referred to in subsection (8.1) shall each retain a copy of the form until 93 years after the birth of the owner and whichever is the transferee shall forward a copy of the form to the owner.
21(12)A financial institution that registers or applies to register a standard contract with the Superintendent before February 1, 2001, shall be deemed to have complied with subsection (6) and shall be registered as the trustee of a locked-in retirement account under that subsection.
21(13)Despite subsection (9), a transfer made by an administrator to a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act between February 1, 2001, and December 31, 2001, inclusive, is valid without having completed Form 3.2 as it existed at that time, if the locked-in retirement account was with a financial institution to which subsection (12) applies.
21(14)Despite subsection (10), a transfer of money into a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act, accepted by a financial institution to which subsection (12) applies, between February 1, 2001, and December 31, 2001, inclusive, is valid without having completed Form 3.2 as it existed at that time.
21(15)Notwithstanding any provision of the Act or this Regulation, a financial institution may permit an owner to withdraw the balance of a locked-in retirement account referred to in paragraph 20(a) if
(a) the owner and, if applicable, the owner’s spouse or common-law partner requests that the balance be withdrawn by delivering the form provided by the Superintendent to the financial institution, and
(b) the financial institution is satisfied, based upon the information provided in the form referred to in paragraph (a) and any other information that has been requested by the financial institution, that
(i) the reported present distribution of assets transferred from pension funds connected with employment in the Province is consistent with the amounts reported to have been transferred from such pension funds, and
(ii) the requested withdrawal is permitted under subsection (16).
21(16)An owner may withdraw the balance of a locked-in retirement account referred to in paragraph 20(a) if
(a) the total assets held by the owner in all retirement savings arrangements referred to in section 20 would be commutable upon termination of employment if they were held in a pension fund under a pension plan that permitted payment of the commuted value of the pension benefit in accordance with section 34 of the Act, and
(b) the total of the pension adjustments reported to the owner by the Canada Customs and Revenue Agency for the two taxation years immediately preceding the request for withdrawal is zero.
93-144; 94-78; 2001-1; 2002, c.12, s.32; 2003-87; 2007-86; 2011-60; 2015-59
Transfer to life income fund
22(0.1)The following definition applies in this section.
“RRIF” means a registered retirement income fund established in accordance with the Income Tax Act (Canada).
22(1)The following provisions apply to a contract between an owner and a financial institution acting as a trustee for a life income fund referred to in paragraph 20(b) and, if a conflict exists between this subsection and the terms of a contract, this subsection shall prevail:
(a) the provisions of subsection 21(2) with the necessary modifications;
(b) the owner of the fund shall be paid an income, the amount of which may vary annually, until the day on which the entire balance of the money in the fund is converted into a life annuity;
(c) payment of the income to the owner shall commence not later than the last day of the second fiscal year of the fund;
(d) the fiscal year of the fund shall end at midnight on the thirty-first day of December in each year and shall not exceed twelve months in length;
(e) the amount of income payable during each fiscal year of the fund shall be established by the owner once every year at the beginning of the fiscal year of the fund, or at intervals of greater than one year if
(i) the financial institution that is a party to the contract guarantees the rate of return of the fund during each such interval, and
(ii) such intervals end at the end of a fiscal year of the fund;
(f) the amount of the income payable during a fiscal year of the fund shall be determined in accordance with the provisions contained in subsections (2), (3), (4), (5) and (6) and the contract shall specifically include those provisions;
(g) sections 27 to 33 apply with the necessary modifications to the division of the money in the fund on the breakdown of a marriage or common-law partnership; and
(h) the contract shall specifically provide in writing for the requirements of subsections (6.1), (7), (8) and (9).
22(2)Subject to subsections (3), (4) and (5), the amount of income payable under subsection (1) during a fiscal year of a life income fund shall not be more than “M” or less than the minimum amount prescribed for an RRIF under the Income Tax Act (Canada), where “M” is calculated using the following formula:
M 
 = 
C
F
and where
C =
the balance of money in the fund on the first day of the fiscal year; and
 
F =
the value, on the first day of the fiscal year, of a guaranteed pension, the annual payment of which is one dollar payable on the first day of each fiscal year between the first day of the fiscal year and the thirty-first day of December, inclusive, of the year in which the owner attains the age of ninety years.
22(3)For the purposes of subsection (2), for the first fiscal year of the fund, the minimum amount prescribed for an RRIF under the Income Tax Act (Canada) shall be deemed to be equal to zero.
22(4)If the money in a fund is derived from money transferred directly or indirectly during the first fiscal year of the fund from another life income fund of the owner, “M” shall be equal to zero.
22(5)The value of “F” in a calculation under subsection (2) shall be established by the parties to the contract at the beginning of each fiscal year of the fund using
(a) an interest rate of not more than six per cent per year, or
(b) for the first fifteen years after the valuation of the fund, an interest rate exceeding six per cent per year if that rate does not exceed the interest rate obtained on long-term bonds issued by the government of Canada for the month of November preceding the calendar year in which the calculation is made, as published in the Bank of Canada Review as CANSIM Series B14013 and using an interest rate not exceeding six per cent per year in subsequent years.
22(6)If the amount of income payable to an owner is established under paragraph (1)(e) at intervals that are greater than one year
(a) subsections (2) to (5) apply with the necessary modifications to the establishment of the amount of income payable in each fiscal year in the interval, and
(b) the amount shall be established at the beginning of the first fiscal year in the interval.
22(6.1)Despite subsection (2), an owner and, if applicable, his or her spouse or common-law partner may request that the Superintendent approve the transfer of an amount from a life income fund to a registered retirement income fund as defined in the Income Tax Act (Canada) that is not a life income fund by completing and filing with the Superintendent the forms provided by the Superintendent, and the Superintendent shall approve the transfer if
(a) an amount has never previously been transferred under this subsection on behalf of the owner, and
(b) the amount to be transferred is not greater than the maximum unlocking amount.
22(7)At the beginning of the fiscal year of each life income fund, until the date on which all the money in the fund is converted into a life or deferred life annuity or transferred to another retirement savings arrangement that conforms to the Act and this Regulation or to similar legislation in another jurisdiction, the financial institution that is a party to the contract under which the fund is created shall provide to the owner of the fund a statement indicating
(a) the amount of money deposited, its source, the accumulated earnings of the fund and the withdrawals from the fund during the immediately preceding fiscal year,
(b) any fees deducted since the preparation of the previous such statement and the balance of the money in the fund at the beginning of the fiscal year of the fund,
(c) the maximum amount that may be paid to the owner as income during the fiscal year, and
(d) the minimum amount that must be paid to the owner as income during the fiscal year.
22(8)If the owner of a life income fund dies before the conversion of the balance of the money in the fund into a life annuity, the financial institution that is a party to the contract under which the fund is created shall provide the owner’s spouse, common-law partner, beneficiary, administrator or executor, as the case may be, with a statement containing the information listed in paragraphs (7)(a) and (b), determined as of the date of the owner’s death.
22(9)If the balance of the money in a life income fund is, under a contract, converted to a life or deferred life annuity or transferred to another retirement savings arrangement that conforms to the Act and this Regulation or to similar legislation in another jurisdiction, the financial institution that is a party to the contract under which the life income fund is created shall provide the owner with a statement containing the information listed in paragraphs (7)(a) and (b), determined as of the date of the conversion or transfer.
22(10)A contract under which a life income fund is created shall contain undertakings by the financial institution that is a party to the contract to fulfill the requirements of subsections (7), (8) and (9).
22(11)Subsections 21(4) to (14) apply with the necessary modifications if the commuted value of a deferred pension is to be transferred to a life income fund under the Act.
94-78; 2001-1; 2002, c.12, s.32; 2011-60; 2015-59; 2020-51
Purchase of life or deferred life annuities
23(1)An administrator shall not purchase a life or deferred life annuity under subsection 33(1) of the Act, a deferred life annuity under paragraph 36(1)(b) or subsection 44(3), (7), (11) or (14) of the Act or a life or deferred life annuity referred to in paragraph 20(c) unless the contract under which the annuity is purchased specifically provides in writing that
(a) the financial institution that is a party to the contract may accept money for the purpose of purchasing the annuity only if the money originates, directly or indirectly, from
(i) the fund of a pension plan that conforms with the Act and this Regulation or with similar legislation in another jurisdiction,
(ii) another retirement savings arrangement that conforms with the Act and this Regulation, or
(iii) another life or deferred life annuity under a contract that conforms with the Act and this Regulation,
(b) should the annuitant die before the commencement of payments under the annuity, the administrator of the annuity shall pay an amount not less than the amount transferred to purchase the annuity, with accrued interest as prescribed in subsections 19(12), (13), (13.1), (13.2) and (13.3), as the case may be,
(i) to the annuitant’s spouse or common-law partner,
(ii) if the annuitant does not have a spouse or common-law partner but has designated a beneficiary on death, to the beneficiary, or
(iii) if the annuitant does not have a spouse or common-law partner and has not designated a beneficiary on death, to the estate of the annuitant,
(c) no money transferred, including interest, shall be assigned, charged, anticipated, given as security or subjected to execution, seizure, attachment or other process of law except under and in accordance with section 44 or subsection 57(6) of the Act,
(d) a transaction in contravention of paragraph (c) is void,
(e) no money transferred, including interest, shall be commuted or surrendered during the lifetime of the annuitant or annuitant’s spouse or common-law partner except under and in accordance with subsection 33(2) or 57(6) or section 44 of the Act,
(f) a transaction in contravention of paragraph (e) is void,
(g) except as provided for elsewhere in this Regulation, the pension benefits provided by the annuity shall be guaranteed by the financial institution that is a party to the contract and shall be payable in equal periodic amounts or in periodic amounts that are uniformly adjusted by way of indexing
(i) if the annuitant has a spouse or common-law partner at the time the payment of the pension under the annuity commences who has not provided to the financial institution a waiver in accordance with subsection 41(4) of the Act or has provided a revocation in accordance with subsection 41(6) of the Act, during the lives of the annuitant and the annuitant’s spouse or common-law partner in the form of a joint and survivor pension under section 41 of the Act,
(ii) if, at the time the payment of the pension under the annuity commences, the annuitant has a spouse or common-law partner who has provided a waiver in accordance with subsection 41(4) of the Act and has not provided a revocation in accordance with subsection 41(6) of the Act, during the life of the annuitant, or
(iii) if, at the time the payment of the pension under the annuity commences, the annuitant does not have a spouse or common-law partner, during the life of the annuitant,
(g.1) notwithstanding paragraph (g), the annuity may provide for the reduction of the equal periodic payments in accordance with section 48 of the Act, which section shall apply to the annuity with the necessary modifications,
(h) subject to paragraph (i), the payment of periodic amounts of the pension shall not commence until the annuitant is the normal retirement date or within ten years of the normal retirement date under the pension plan,
(i) the annuitant may replace in whole or in part the deferred pension under an annuity by a payment or a series of payments and the amount of the payment or the present value of the series of payments, as the case may be, shall not be less than the present value of the deferred pension if, before the commencement of payments under the annuity,
(i) a physician certifies in writing to the financial institution that is a party to the contract that the annuitant suffers from a significant physical or mental disability that considerably reduces life expectancy, and
(ii) if the annuitant has a spouse or common-law partner, the annuitant delivers to the financial institution a waiver completed by the spouse or common-law partner in the form provided by the Superintendent,
(j) where a division of the annuity occurs as a result of the breakdown of a marriage or common-law partnership, the annuitant may transfer the present value of the pension or deferred pension under the annuity to purchase another life or deferred life annuity that complies with this Regulation, and
(k) the provisions of sections 27 to 33 apply with the necessary modifications to the division of the money in the annuity on the breakdown of a marriage or common-law partnership.
23(2)The amount of a life or deferred life annuity referred to in subsection (1) shall not be determined on the basis of the annuitant’s sex unless
(a) the annuity is fully funded by money from a defined contribution plan administered in accordance with paragraph 46(2)(b) of the Act, or
(b) if the annuity is funded by money from a retirement savings arrangement referred to in section 20, the purchase is in accordance with subsection 21(5).
23(3)A financial institution that offers life or deferred life annuities and that proposes a sale of such an annuity by contract to an administrator under a pension plan, under the Act or under this Regulation shall, before entering into such a contract, register with the Superintendent a standard contract for the proposed annuity and, upon applying for registration, pay the prescribed fee.
23(4)A standard contract described in subsection (3) shall not be registered unless it conforms to the requirements of this section.
23(5)Subsections 10(8) to (10) and sections 11 and 13 of the Act apply with the necessary modifications to the registration of a standard contract under subsection (3).
23(6)No administrator shall purchase a life or deferred life annuity referred to in subsection (1) unless the standard contract of the annuity to be purchased is registered in accordance with this section and otherwise conforms to the requirements of this section.
23(7)No administrator shall purchase a life or deferred life annuity referred to in subsection (1) unless the contract of the annuity is the same as the standard contract registered in relation to that annuity.
94-78; 99-70; 2003-87; 2005-102; 2009-42; 2011-60; 2015-59
Subsequent transfer from retirement savings arrangement or life annuity
24Sections 20 to 23 apply with the necessary modifications to a subsequent transfer of funds from a retirement savings arrangement or from a life or deferred life annuity referred to in subsection 23(1).
Requirements relating to subsection 33(3) of the Act
2022-63
24.1For the purposes of subsection 33(3) of the Act, the following requirements are prescribed:
(a) in the case of the purchase in respect of a person receiving a pension, the pension purchased from the insurance company must provide the person with payments in the same amount and form as the pension that the person would have received from the pension plan had the purchase not been made; or
(b) in the case of a purchase in respect of a former member entitled to a deferred pension, the deferred pension purchased from the insurance company must provide the same pension benefit to the former member as the pension benefit the former member would have received from the pension plan had the purchase not been made.
2022-63
Repealed
25Repealed: 2015-59
2002, c.12, s.32; 2015-59
WITHDRAWALS
97-92
Exemptions from s.56(1) of the Act
25.1(1)Persons who, immediately before the execution and delivery in February, 1997, of a collective agreement under subsection 37(2) of the Industrial Relations Act, were
(a) employees of Saint John Shipbuilding Limited,
(b) members of
(i) the Industrial Union of Marine and Shipbuilding Workers of Canada, Local 3,
(ii) the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada, Local 213,
(iii) the International Brotherhood of Electrical Workers, Local 2282,
(iv) the United Brotherhood of Carpenters and Joiners of America, Local 840, or
(v) the Saint John Marine Craft Union,
(c) members of the defined contribution plan known as the Saint John Shipbuilding Limited - Hourly Employees Group Retirement Savings Program, and
(d) on indefinite lay-off,
are a class of employees that is exempt from the application of subsection 56(1) of the Act.
25.1(2)The exemption in subsection (1) is subject to the condition that withdrawals of contributions and interest from the pension fund are
(a) by employees who have less than six thousand dollars in the portion of their individual accounts that is attributable to employer contributions and who are on lay-off at the time the application for withdrawal is made, or
(b) by employees who are classified as labour or auxiliary workers, and who voluntarily terminate their employment relationship.
25.1(3)The exemption in subsection (1) expires on December 31, 1999.
97-92
Exemptions from s.56(1) of the Act
25.2(1)Persons who
(a) are members of a defined benefit plan, and
(b) are entitled to a deferred pension with a commuted value that exceeds the maximum transfer that may be made to another pension plan or to a registered retirement savings plan under the Income Tax Act (Canada),
are a class of employees that is exempt from the application of subsection 56(1) of the Act.
25.2(2)The exemption in subsection (1) is subject to the following conditions:
(a) the exemption shall only apply to the amount of the commuted value of the pension that exceeds the maximum transfer that may be made to another pension plan or to a registered retirement savings plan under the Income Tax Act (Canada), and
(b) the exemption shall only apply to a member
(i) who is transferring the commuted value of a deferred pension under paragraph 36(1)(a) of the Act and whose
(A) employment has been terminated, or
(B) pension plan is being wound up and the wind-up report filed under section 62 of the Act has been approved by the Superintendent, or
(ii) whose pension plan assets are being transferred to a new plan under section 70 of the Act, including a pension plan deemed to be a new plan under subsection 12(3) of the Act.
25.2(3)When a member withdraws contributions and interest from a pension fund in accordance with this section, the administrator’s and the pension fund’s liability to provide a deferred pension is reduced by the amount that has been withdrawn.
99-70; 2001-1; 2003-87
Withdrawal from locked-in retirement account
25.3(1)Subject to subsection (2), if a member who is entitled to withdraw contributions and interest from a pension fund under the exemption in section 25.2 does not do so and transfers the fund’s assets to a locked-in retirement account referred to in paragraph 20(a), the Superintendent may authorize the member to withdraw an amount from the account if the Superintendent is of the opinion that it is not reasonable to transfer the assets back to the pension plan.
25.3(2)The Superintendent shall only authorize the withdrawal of an amount under subsection (1), if the amount would be taxable under Part X.1 of the Income Tax Act (Canada) if it were not withdrawn from the locked-in retirement account.
2001-1; 2002, c.12, s.32
Exemptions from s.40.1 of the Act
25.31(1)A defined contribution plan is a class of pension plan to which section 40.1 of the Act does not apply.
Exemptions from s.40.1 of the Act
25.31(2)Members of a pension plan who desire to exercise rights under subsection 36(1) or (1.1) of the Act are a class of employees to whom section 40.1 of the Act does not apply.
25.31(3)If a member has a spouse or a common-law partner, a request to an administrator for a transfer, made in accordance with a pension plan provision permitted by subsection 40.1(1) of the Act shall be accompanied by a waiver completed by the spouse or common-law partner in the form provided by the Superintendent.
25.31(4)Before making a transfer referred to in subsection (3), the administrator shall advise the member and the member’s spouse or common-law partner that the transfer will reduce future benefits for the member and the member’s survivors.
2003-87; 2011-60; 2015-59
VARIATION IN PAYMENTS FOR DISABILITY
2001-1
Variation in payments for disability
25.4(1)An administrator may vary the terms of payment, in accordance with the request of a member, of a deferred pension under subsection 33(2) of the Act by making a payment or a series of payments to the member out of the pension fund if
(a) a physician certifies in writing to the administrator that the member suffers from a significant physical or mental disability that considerably reduces life expectancy, and
(b) if the member has a spouse or common-law partner, the member delivers to the administrator a waiver completed by the spouse or common-law partner in the form provided by the Superintendent.
25.4(2)Subsections 43(6) and (7) apply with the necessary modifications to this section.
2001-1; 2003-87; 2011-60; 2015-59
RECOMMENCEMENT OF EMPLOYMENT
2003-87
Pension plan provisions on recommencement of employment
25.5(1)The following are prescribed provisions for the purposes of subsection 39(4) of the Act:
(a) payment of the pension to the former member shall continue and the former member shall not be eligible to become a member;
(b) payment of the pension to the former member shall be suspended and the former member shall become a member of the pension plan no later than the date on which payment of the pension is suspended; and
(c) the former member may choose
(i) to continue receiving payment of his or her pension and the former member shall not be eligible to become a member, or
(ii) to have payment of his or her pension suspended and the former member shall become a member of the pension plan no later than the date on which payment of the pension is suspended.
25.5(2)If a pension plan does not include one of the prescribed provisions in subsection (1), the pension plan shall be deemed to include paragraph (1)(a).
25.5(3)A pension plan shall be deemed to include paragraph (1)(c) in relation to an employee if
(a) the pension plan is amended to adopt paragraph (1)(a) or (b) after the employee recommences work or service in employment covered by the plan, or
(b) the pension plan includes paragraph (1)(b) and the employee was not advised of this verbally and in writing before recommencing work or service in employment covered by the plan.
25.5(4)A pension plan may adopt more than one of the provisions referred to in subsection (1), and the provisions shall be applicable in different circumstances set out in the pension plan.
25.5(5)If a pension plan provides for the suspension of the payment of a pension, the pension payable when a member recommences receipt of his or her pension shall not be less than the sum of the pension payable with respect to the member’s recommenced employment and
(a) if the initial pension began to be paid before the member’s retirement date, the pension that would have been payable had the pension begun to be paid on or after the member’s retirement date, reduced in accordance with the terms of the pension plan when the initial pension began to be paid, or
(b) if the initial pension began to be paid on or after the member’s retirement date, the pension that was payable when the pension began to be paid.
25.5(6)The calculation of a reduction under paragraph (5)(a) shall be based upon an assumed age calculated according to the following formula:
a = b – (c – d)
where
a = assumed age for calculation;
b = age at date of subsequent pension commencement;
c = age at date of pension suspension; and
d = age at date of initial pension commencement.
25.5(7)If a member dies while payment of the member’s pension is suspended, the commuted value of any death benefit shall not be less than the greater of
(a) the commuted value of the death benefit that would have been payable had the member not recommenced work or service, and
(b) the commuted value of the death benefit that is payable based upon the accrued pension calculated in accordance with the pension plan and this section.
2003-87
JOINT AND SURVIVOR PENSIONS
Waiver to joint and survivor pension and revocation of waiver
26(1)A joint and survivor pension waiver directed to the administrator under subsection 41(4) of the Act shall be in the form provided by the Superintendent.
26(2)A revocation of a joint and survivor pension waiver under subsection 41(6) of the Act shall be in the form provided by the Superintendent.
2015-59
PRE-RETIREMENT DEATH BENEFITS
2003-87
Pre-retirement death benefits
26.1(1)The commuted value of a deferred pension referred to in subsection 43.1(1) or (2) of the Act shall be calculated in accordance with section 19.
26.1(2)Pension plans from which transfers are restricted under subsection 19(7) or (11) are a class of pension plans that is exempt from the application of subsections 43.1(1) and (2) of the Act.
26.1(3)The exemption in subsection (2) is subject to the following conditions:
(a) subsections 19(7) to (14) apply with the necessary modifications to a payment that would have been made under subsection 43.1(1) or (2) of the Act if the exemption were not applicable; and
(b) a spouse or common-law partner who would have been entitled to a payment under subsection 43.1(1) or (2) of the Act if the exemption were not applicable, shall be immediately entitled to payment of the deceased member’s or deceased former member’s contributions with interest.
2003-87; 2011-60
BREAKDOWN OF A MARRIAGE OR
COMMON-LAW PARTNERSHIP
2011-60
Date of marriage or common-law partnership
27(1)Subject to subsections (2) and (3), for the purposes of the division of benefits or the commuted value of benefits under sections 28 to 34, the date of marriage of two spouses shall be
(a) if they are married to each other, the date on which they were married;
(b) if they are married to each other by a marriage that is voidable and has not been avoided by a declaration of nullity, the date on which they were married; or
(c) if they have gone through a form of marriage with each other in good faith that is void and have cohabited within the preceding year, the date on which they went through a form of marriage.
27(2)If, by reason of the operation of subsection (1), more than one date could be the date of marriage of two spouses, the date of marriage shall be deemed to be the earlier or earliest of those dates.
27(3)If the spouse of a member or former member was cohabiting in a conjugal relationship with the member or former member immediately before their marriage, the date of marriage shall be deemed to be the date on which they commenced to cohabit in a conjugal relationship.
27(4)For the purpose of the division of benefits or calculation of the commuted value of benefits under sections 28 to 34, the date of common-law partnership of a member or former member and his or her common-law partner is the date on which they commenced to cohabit with each other in accordance with paragraph (b) of the definition “common-law partner” in subsection 1(1) of the Act.
2011-60
Calculation of divisible portion
28(1)In sections 28 to 34,
“past service” means the number of years, including parts of a year, of employment credited to a member or former member under a pension plan that relate to employment before the date on which the member or former member became a member.
28(2)The portion of the commuted value of the benefit of a member or a former member that may be divided on the breakdown of a marriage or common-law partnership under section 44 of the Act shall be computed using the following formula:
p
=
a
× c
b
where
p =
the portion of the commuted value of the benefit that may be divided on the breakdown of the marriage or common-law partnership;
 
a =
the number of years, including parts of a year, included in “b” that were credited to the member or former member in the period between the date of marriage and the date of marriage breakdown, inclusive, or between the date of common-law partnership and the date of the breakdown of the common-law partnership, inclusive, including past service credited to the member or former member during that period;
 
b =
the total number of years, including parts of a year, of employment credited to the member or former member under the pension plan for which benefits were earned by the member or former member, including past service; and
 
c =
the commuted value of the benefit calculated in accordance with subsection 29(1), (2), (3) or (4) as the case may be.
2011-60
Calculation of commuted value
29(1)If the benefit or the commuted value of the benefit of a member or a former member that is a deferred pension under a defined contribution plan is to be divided on the breakdown of a marriage or common-law partnership under section 44 of the Act, the commuted value of the benefit shall be the total amount of
(a) all contributions, with interest, made by
(i) the member or former member, if applicable, and
(ii) the employer or person required to make contributions on behalf of an employer in respect of the member or former member, and
(b) any surplus money allocated to the member or former member, with interest,
as of the date of the breakdown of the marriage or common-law partnership.
29(2)If the commuted value of the benefit of a member that is a deferred pension under a defined benefit plan is to be divided on the breakdown of a marriage or common-law partnership under section 44 of the Act, the commuted value of the benefit shall be determined as though the member had terminated employment on the date of the breakdown of the marriage or common-law partnership and shall be the total of
(a) the commuted value of the benefit determined using
(i) the benefit formula provided by the plan,
(ii) the pension benefits, salary and contribution history in existence on the date of the breakdown of the marriage or common-law partnership,
(iii) where the marriage breakdown occurs before July 1, 1994, the actuarial and economic assumptions contained in the Recommendations Concerning the Computation of the Capitalized Value of Pension Entitlement on Marriage Breakdown as adopted by the Canadian Institute of Actuaries, to the extent that they are consistent with the Act and the regulations,
(iii.1) where the marriage breakdown occurs from July 1, 1994 to July 31, 2005, both dates inclusive, the actuarial and economic assumptions contained in the Recommendations for the Computation of Transfer Values from Registered Pension Plans adopted by the Canadian Institute of Actuaries and effective on September 1, 1993, to the extent that they are consistent with the Act and the regulations,
(iii.2) where the marriage breakdown occurs from August 1, 2005, to March 31, 2009, both dates inclusive, the actuarial assumptions contained in section 4 of the Standard of Practice for Determining Pension Commuted Values adopted by the Canadian Institute of Actuaries and effective on February 1, 2005, to the extent that they are consistent with the Act and the regulations,
(iii.3) when the marriage breakdown occurs on or after April 1, 2009, the actuarial assumptions contained in section 3800 of the Standards of Practice - Practice Specific Standards for Pension Plans adopted by the Canadian Institute of Actuaries and effective on April 1, 2009, as amended from time to time, to the extent that they are consistent with the Act and the regulations,
(iii.4) when the breakdown of a common-law partnership occurs on or after the commencement of this subparagraph, the actuarial assumptions contained in section 3800 of the Standards of Practice - Practice Specific Standards for Pension Plans adopted by the Canadian Institute of Actuaries and effective on April 1, 2009, as amended from time to time, to the extent that they are consistent with the Act and the regulations,
(iv) the value of any survivor benefits provided by the plan either before or after the commencement of payment of the pension benefit,
(v) any escalated adjustment, if it is provided for in the plan, and
(vi) the normal retirement date or, if the plan provides for a member to retire at a date other than the normal retirement date without any actuarial reduction to the pension payable and the member has met the eligibility requirements for retiring at that other date, the other date,
(b) any additional voluntary contributions with interest and any excess employee contributions; and
(c) any optional ancillary contributions with interest that have not been included in the calculation pursuant to paragraph (a).
29(3)If the benefit of a former member that is a pension or a deferred pension under a defined benefit plan is to be divided on the breakdown of a marriage or common-law partnership under section 44 of the Act, the commuted value of the benefit shall be the total of
(a) the commuted value of the pension or deferred pension determined using
(i) the periodic amount of the pension or deferred pension being paid or payable at the date of the breakdown of the marriage or common-law partnership,
(ii) where the marriage breakdown occurs before July 1, 1994, the actuarial and economic assumptions contained in the Recommendations Concerning the Computation of the Capitalized Value of Pension Entitlement on Marriage Breakdown as adopted by the Canadian Institute of Actuaries, to the extent that they are consistent with the Act and the regulations,
(ii.1) where the marriage breakdown occurs from July 1, 1994, to July 31, 2005, both dates inclusive, the actuarial and economic assumptions contained in the Recommendations for the Computation of Transfer Values from Registered Pension Plans adopted by the Canadian Institute of Actuaries and effective on September 1, 1993, to the extent that they are consistent with the Act and the regulations,
(ii.2) where the marriage breakdown occurs from August 1, 2005, to March 31, 2009, both dates inclusive, the actuarial assumptions contained in section 4 of the Standard of Practice for Determining Pension Commuted Values adopted by the Canadian Institute of Actuaries and effective on February 1, 2005, to the extent that they are consistent with the Act and the regulations,
(ii.3) when the marriage breakdown occurs on or after April 1, 2009, the actuarial assumptions contained in section 3800 of the Standards of Practice - Practice Specific Standards for Pension Plans adopted by the Canadian Institute of Actuaries and effective on April 1, 2009, as amended from time to time, to the extent that they are consistent with the Act and the regulations,
(ii.4) when the breakdown of a common-law partnership occurs on or after the commencement of this subparagraph, the actuarial assumptions contained in section 3800 of the Standards of Practice - Practice Specific Standards for Pension Plans adopted by the Canadian Institute of Actuaries and effective on April 1, 2009, as amended from time to time, to the extent that they are consistent with the Act and the regulations,
(iii) the value of any survivor benefits provided by the plan either before or after the commencement of payment of the pension benefit, and
(iv) any escalated adjustment, if it is provided for in the plan, and
(b) any additional voluntary contributions with interest and any excess employee contributions.
29(4)If a pension plan provides contributory pension benefits, the commuted value of a member’s contributions under the plan, with interest, that may be paid out under subsection 44(15) of the Act shall be the total of the contributions, with interest, made by the member.
29(5)Section 48 of the Act applies to the determination under this section of the commuted value of a pension or a deferred pension that may be reduced under a pension plan by reason of payments under the Canada Pension Plan, the Quebec Pension Plan or the Old Age Security Act (Canada).
94-78; 2002, c.12, s.32; 2003-87; 2005-102; 2009-42; 2011-60; 2015-59; 2016-55
Calculation of spouse’s portion or common-law partner’s portion
30(1)The following definitions apply in sections 30 to 34.
“common-law partner’s portion” means the portion of the portion of the benefit or commuted value of the benefit of a member or former member calculated under section 28 to which the common-law partner of the member or former member is entitled on the breakdown of their common-law partnership under a domestic contract or a decree, order or judgment of a competent tribunal.(allocation du conjoint de fait)
“spouse’s portion” means the portion of the portion of the benefit or commuted value of the benefit of a member or a former member calculated under section 28 to which the spouse of the member or former member is entitled on marriage breakdown under a domestic contract or a decree, order or judgment of a competent tribunal.(allocation du conjoint)
30(2)If the benefit or the commuted value of the benefit of a member or a former member under a defined contribution plan or the contributions with interest made by a member who would not be entitled to a deferred pension are divided under section 44 of the Act, the spouse’s portion shall be credited with interest at a rate not lower than the rate set out in paragraph 43(1)(b) from the date of marriage breakdown to the date on which the spouse’s portion is credited to the spouse under the pension plan or is transferred or used for a purchase under section 36 or 44 of the Act, inclusive.
30(2.1)If the benefit or the commuted value of the benefit of a member or a former member under a defined contribution plan or the contributions with interest made by a member who would not be entitled to a deferred pension are divided under section 44 of the Act, the common-law partner’s portion shall be credited with interest at a rate not lower than the rate set out in paragraph 43(1)(b) from the date of the breakdown of the common-law partnership to the date on which the common-law partner’s portion is credited to the common-law partner under the pension plan or is transferred or used for a purchase under section 36 or 44 of the Act, both dates inclusive.
30(3)Subject to subsection 43(8), if the commuted value of the deferred pension of a member or a former member under a defined benefit plan is divided under section 44 of the Act, the spouse’s portion shall be credited with interest at a rate not lower than the rate set out in paragraph 43(1)(a) from the date of marriage breakdown to the date on which the spouse’s portion is credited to the spouse under the pension plan or is transferred or used for a purchase under section 36 or 44 of the Act, inclusive.
30(4)Subject to subsection 43(8), if the commuted value of the deferred pension of a member or a former member under a defined benefit plan is divided under section 44 of the Act, the common-law partner’s portion shall be credited with interest at a rate not lower than the rate set out in paragraph 43(1)(a) from the date of the breakdown of the common-law partnership to the date on which the common-law partner’s portion is credited to the common-law partner under the pension plan or is transferred or used for a purchase under section 36 or 44 of the Act, both dates inclusive.
94-78; 2011-60
Revaluation of contributions and pension benefit
31(1)If the commuted value of the benefit of a member or a former member referred to in subsection 29(1) is divided under section 44 of the Act, the contributions and money referred to in subsection 29(1) shall be revalued in accordance with subsections (2) and (3) on the date on which the spouse’s portion or the common-law partner’s portion
(a) if the spouse or common-law partner is a member of the same plan, is credited to the spouse or common-law partner under the pension plan, or
(b) if the spouse or common-law partner is not a member of the same plan, is transferred or used for a purchase under section 36 or 44 of the Act.
31(2)Employer contributions referred to in subsection 29(1) shall be revalued under subsection (1) using the following formula:
E = e - (r × s)
where
E =
revalued employer contributions;
 
e =
total of employer contributions, including any surplus money allocated to those contributions, before division on the breakdown of a marriage or common-law partnership;
 
r =
the proportion that employer contributions, excluding any surplus money allocated to those contributions, bear to the total of all contributions referred to in paragraph 29(1)(a) before division on the breakdown of the marriage or common-law partnership; and
 
s =
the spouse’s portion or the common-law partner’s portion.
31(3)A member’s or former member’s contributions referred to in subsection 29(1) shall be revalued under subsection (1) using the following formula:
M = m - (r × s)
where
M =
revalued member’s or former member’s contributions;
 
m =
total of the member’s or former member’s contributions, including any surplus money allocated to those contributions, before division on the breakdown of a marriage or common-law partnership;
 
r =
the proportion that the member’s or former member’s contributions, excluding any surplus money allocated to those contributions, bear to the total of all contributions referred to in paragraph 29(1)(a) before division on the breakdown of the marriage or common-law partnership; and
 
s =
the spouse’s portion or the common-law partner’s portion.
31(4)If the contributions with interest made by a member who would not be entitled to a deferred pension under a pension plan are divided under section 44 of the Act, the member’s contributions with interest shall be revalued by deducting from them the spouse’s portion as of the date on which the spouse’s portion or the common-law partner’s portion as of the date on which the common-law partner’s portion
(a) if the spouse or common-law partner is a member of the same plan, is credited to the spouse or common-law partner under the plan, or
(b) if the spouse or common-law partner is not a member of the same plan,
(i) is transferred or used for a purchase under section 36 or 44 of the Act, or
(ii) is paid out in cash to the spouse or common-law partner.
31(5)If the commuted value of the benefit of a member under a defined benefit plan referred to in subsection 29(2) is divided under section 44 of the Act, the pension or deferred pension to which the member is entitled on termination of employment, on retirement or on cessation of membership shall be revalued so that it represents the pension or deferred pension to which the member would have been entitled at that time had the division not been made, less the portion of the deferred pension to which the member’s spouse or common-law partner is entitled on the date of the breakdown of the marriage or common-law partnership, including any escalated adjustment, between the date of the breakdown of the marriage or common-law partnership and the date of termination of employment, retirement or cessation of membership, calculated in accordance with the formula provided under the plan on the date of the breakdown of the marriage or common-law partnership.
31(6)If the commuted value of the benefit of a member under a defined benefit plan referred to in subsection 29(2) is divided under section 44 of the Act and the member’s spouse or common-law partner is a member of the same plan, the pension or deferred pension to which the member’s spouse or common-law partner is entitled on termination of employment, on retirement or on cessation of membership shall be revalued so that it represents the pension or deferred pension to which the member’s spouse or common-law partner would have been entitled at that time had the division not been made, plus the portion of the deferred pension to which the member’s spouse or common-law partner is entitled on the date of the breakdown of the marriage or common-law partnership, including any escalated adjustment, between the date of the breakdown of the marriage or common-law partnership and the date of termination of employment, retirement or cessation of membership, calculated in accordance with the formula provided under the plan on the date of the breakdown of the marriage or common-law partnership.
31(6.1)A revaluation under subsection (5) or (6) shall be done based upon the normal form of the pension as defined by the pension plan, before any actuarial adjustments are made for retirement before the normal retirement date under the pension plan or for receipt of the pension in any form different from the normal form.
31(7)Subsections 19(4) and (5) apply with the necessary modifications to a member’s pension benefit after it has been revalued under subsection (5) or (6).
31(8)If the commuted value of the pension or deferred pension of a former member under a defined benefit plan referred to in subsection 29(3) is divided under section 44 of the Act, the pension or deferred pension to which the former member is entitled shall be revalued
(a) if the survivor benefits under the plan are not dependent on the former member’s having a spouse or common-law partner, by deducting the amount of the pension or deferred pension to which the former member’s spouse or common-law partner is entitled from the amount of the pension or deferred pension to which the former member was entitled before the division, or
(b) if the survivor benefits under the plan are dependent on the former member’s having a spouse or common-law partner, by multiplying the amount determined under paragraph (a) by an annuity factor including survivor benefits and by dividing it by an annuity factor that excludes survivor benefits, where both annuity factors are based on the same actuarial and economic assumptions used to determine the commuted value of the pension or deferred pension under subsection 29(3).
31(9)If the commuted value of a benefit described in subsection 29(2) or (3) of a member or a former member is divided under section 44 of the Act, the contributions with interest made by the member or former member shall be revalued as of the date of the termination of employment, retirement or cessation of membership of the member or former member by deducting from them an amount calculated in accordance with subsection (10) as of the date of the breakdown of the marriage or common-law partnership.
31(10)The amount to be deducted in a revaluation under subsection (9) shall be calculated using the following formula:
A
=
a
 × m × p
b
where
A =
amount to be used in revaluation;
 
a =
the number of years, including parts of a year, included in “b” that were credited to the member or former member in the period between the date of marriage and the date of marriage breakdown, inclusive, or between the date of common-law partnership and the date of the breakdown of the common-law partnership, inclusive, including past service credited to the member or former member during that period;
 
b =
the total number of years, including parts of a year, of employment credited to the member or former member under the pension plan for which benefits were earned by the member or former member, including past service;
 
m =
the total contributions with interest made by the member or former member; and
 
p =
the proportion that the spouse’s portion or the common-law partner’s portion bears to the portion of the commuted value of the benefit computed under section 28.
31(11)Despite any provision of the Act or this Regulation, if pension benefits have been paid to a former member or his or her beneficiary after the breakdown of the marriage or common-law partnership but before revaluation in accordance with subsection (5) or (8), the pension fund shall not be liable to the former member’s spouse or common-law partner for the spouse’s portion or the common-law partner’s portion of the benefits paid between the breakdown of the marriage or common-law partnership and revaluation.
31(12)If pension benefits have been paid in the circumstances set out in subsection (11), a domestic contract or a decree, order or judgment of a competent tribunal may direct the administrator of a pension plan to deduct from any future benefit payments to the former member or his or her beneficiary an amount equivalent to the spouse’s portion or the common-law partner’s portion, as the case may be, of the benefits so paid and to pay that amount to the former member’s spouse or common-law partner, subject to the provisions of the Income Tax Act (Canada).
94-78; 2003-87; 2011-60
Division and transferability of non-commutable annuity
32(1)Subject to subsection (2), if a member’s or a former member’s benefit to be divided under section 44 of the Act includes or consists of an annuity that is payable under an insurance contract that prohibits the annuity from being commuted and if the commuted value of the benefits under the pension plan apart from the annuity, if credited to, paid to or otherwise delivered to the benefit of the member’s or former member’s spouse or common-law partner, would be insufficient to fulfill the entitlement of the spouse or common-law partner on division under section 44 of the Act, the annuity is a class of pension plan that is exempt from the application of subsections 44(2) and (10) of the Act and
(a) the member or former member shall pay the spouse or common-law partner an amount equal to the spouse’s portion or the common-law partner’s portion, or
(b) if agreed to in writing by the member or former member and the spouse or common-law partner or if so ordered by a competent tribunal, the actual periodic pension shall be divided in accordance with the applicable domestic contract or decree, order or judgment of the tribunal, as the case may be, and the portion of the pension payable to the spouse or common-law partner shall be subject to the terms and conditions of the annuity contract.
32(2)Sections 28 to 31 apply and subsection (1) does not apply to an annuity described in subsection (1) that is entered into on or after the commencement of the Act.
2011-60
Statement on breakdown of marriage or common-law partnership
33If a member’s or a former member’s benefit under a pension plan is to be divided under section 44 of the Act, the administrator shall, at no charge and on written request, provide the member or former member or his or her spouse or common-law partner with a written statement, setting out
(a) the portion of the commuted value of the benefit subject to division, as determined in accordance with this Regulation,
(b) the commuted value of the benefit determined under section 29, and
(c) an explanation of the manner in which the values given under paragraphs (a) and (b) were determined.
2011-60
Applicability of transfer restrictions to spouse’s portion or common-law partner’s portion
34Subject to subsection 44(15) and section 45 of the Act, subsections 19(1) to (3) and (5) to (13.3) apply with the necessary modifications to a spouse’s portion or a common-law partner’s portion if it is dealt with in accordance with section 36 or under subsection 44(3), (7), (11) or (14) of the Act.
2005-102; 2009-42; 2011-60
CONTRIBUTIONS
Contributions to be made by employer
35(1)Every pension plan shall contain provisions establishing the requirements of the employer, or of a person required to make contributions on behalf of an employer, to make contributions under the plan in respect of the normal cost and of any going concern unfunded liability and solvency deficiency under the plan.
35(2)Subject to sections 37 and 40 and subsection 41(1), an employer required to make contributions under a pension plan, or a person required to make contributions on behalf of an employer, shall make the contributions to the pension fund or, if pension benefits under the plan are paid by an insurance company, to the insurance company, in amounts that are not less than the sum of
(a) any contributions received from members, including any amounts withheld from members by payroll deduction or otherwise as the members’ contributions under the plan and any additional voluntary contributions permitted under the plan,
(b) employer contributions respecting the normal cost of the plan, as established under the plan or in the actuarial valuation report or cost certificate respecting the plan most recently filed under this Regulation,
(c) the total amount of any special payments to amortize an experience deficiency, an initial unfunded liability, an actuarial loss, a going concern unfunded liability or a solvency deficiency as determined in accordance with section 36, and
(d) any amount required to be contributed or remitted under subsection 19(9) or paragraph 19(11)(a).
35(3)Contributions and payments made under subsection (2) shall be made by the employer or person required to make contributions on behalf of the employer
(a) in respect of contributions referred to in paragraph (2)(a), within fifteen days after the last day of the month in which the contribution or amount was received or withheld,
(b) in respect of contributions referred to in paragraph (2)(b) if the requirement to pay was incurred before the commencement of section 49 of the Act, within one hundred and twenty days after the last day of the pension plan year in which the normal cost was incurred,
(c) in respect of contributions referred to in paragraph (2)(b) if the requirement to pay was incurred on or after the commencement of section 49 of the Act,
(i) for a defined contribution plan, within thirty days after the last day of the month in which the normal cost is incurred,
(ii) for a defined benefit plan, within thirty days after the last day of the month in which the normal cost is incurred if payment of the contributions at a later date would result in a reduction of pension benefits or an increase in the amount of the contributions a member is required to make, and
(iii) for a defined benefit plan in circumstances other than those described in subparagraph (ii)
(A) for a plan with a solvency ratio of less than one hundred per cent, within ninety days after the last day of the month in which the normal cost is incurred, or
(B) for a plan with a solvency ratio of one hundred per cent or greater, within one hundred and twenty days after the last day of the pension plan year in which the normal cost is incurred,
(d) in respect of any special payments referred to in paragraph (2)(c) relating to a pension plan year commencing before the commencement of section 49 of the Act, within thirty days after the last day of the pension plan year,
(e) in respect of any special payments referred to in paragraph (2)(c) for a defined benefit plan, relating to a pension plan year commencing on or after the commencement of section 49 of the Act,
(i) if payment of the special payments at a later date would result in a reduction of pension benefits or an increase in the amount of the contributions a member is required to make, within thirty days after the last day of the month to which the payment relates, and
(ii) in circumstances other than those described in subparagraph (i), within ninety days after the last day of the month to which the payment relates, and
(f) in respect of amounts referred to in paragraph (2)(d)
(i) for amounts required to be contributed under subsection 19(9), within thirty days after the date on which the first actuarial valuation report subsequent to the substitute report filed under subsection 9(3) is filed under this Regulation, and
(ii) for amounts required to be remitted under paragraph 19(11)(a), within thirty days after the date of the termination of employment, cessation of membership or division of benefit to which the transfer deficiency relates.
35(4)Contributions and payments required to be made under subsection (2) shall be adjusted, if appropriate, immediately after each new actuarial valuation report or cost certificate is filed under this Regulation by the administrator.
35(5)An employer or person required to make contributions on behalf of an employer under a pension plan shall continue to make the contributions and payments in accordance with the most recently filed actuarial valuation report or cost certificate until a new report or certificate is filed under this Regulation and the contributions and payments are adjusted accordingly.
35(6)Subsections (1) to (5) do not apply to a defined benefit plan established under
(a) one or more collective agreements, or
(b) a trust agreement,
in which the requirement that an employer or person required to make contributions on behalf of an employer contribute to the pension fund is limited solely to a fixed amount established in a collective agreement or trust agreement.
2015-59; 2020-51
Special payments by employer
36(0.1)In subsections (1.22), (1.23), (1.24), (1.27), (1.28) and (1.29), “existing solvency deficiencies” , in respect of a pension plan, means the present value of all special payments as of the review date of the actuarial valuation report in question, other than payments required only by reason of section 65 of the Act, that are scheduled to be paid after that date and that are required with respect to any solvency deficiency determined under section 10, except for a solvency deficiency resulting from an amendment to the pension plan that was not required under the Act, this Regulation, the pension benefits legislation of a designated jurisdiction or the Income Tax Act (Canada) made between January 1, 2010, and the review date of the actuarial valuation report in question, both dates inclusive. (déficit de solvabilité existant)
36(1)Subject to subsections (2) and (4), section 40 and subsection 41(1), the total amount of special payments made under paragraph 35(2)(c) to amortize an experience deficiency, an initial unfunded liability, an actuarial loss, a going concern unfunded liability or a solvency deficiency shall not be less than the sum of
(a) for an actuarial valuation report with a review date before December 31, 2019, the amount of any remaining special payments required to liquidate any experience deficiency or initial unfunded liability, in equal monthly installments over the lesser of
(i) the period over which the experience deficiency or initial unfunded liability is amortized on the commencement of section 10 of the Act, and
(ii) a period of fifteen years after the commencement of section 10 of the Act,
(b) for an actuarial valuation report with a review date before December 31, 2019, and subject to subsection (5), the amount of special payments that must be paid in order to liquidate any actuarial loss, with interest calculated using the interest rate assumed in the going concern valuation, in equal monthly installments over a period of not more than fifteen years commencing on the review date of the actuarial valuation report in which the actuarial loss is identified,
(b.1) for an actuarial valuation report with a review date on or after December 31, 2019, and subject to subsection (5), the amount of special payments that must be paid in order to liquidate any going concern unfunded liability, with interest calculated using the interest rate assumed in the going concern valuation, in equal monthly installments over a period of not more than ten years commencing on the review date of the actuarial valuation report in which the going concern unfunded liability is identified,
(b.2) for an actuarial valuation report respecting a pension plan referred to in subsection 8.1(2), and subject to subsection (5), the amount of special payments that must be paid in order to liquidate any actuarial loss, with interest calculated using the interest rate assumed in the going concern valuation, in equal monthly installments over a period of not more than fifteen years commencing on the review date of the actuarial valuation report in which the actuarial loss is identified, and
(c) subject to subsections (1.1), (1.2), (1.23), (1.28) and (5), the amount of special payments that must be paid in order to liquidate any solvency deficiency, with interest calculated using the interest rate assumed in the solvency valuation, in equal monthly installments over a period of not more than five years commencing on the review date of the actuarial valuation report in which the solvency deficiency is identified.
36(1.01)Paragraphs (1)(b) and (b.1) do not apply to an actuarial valuation report respecting a pension plan referred to in subsection 8.1(2).
36(1.1)The Superintendent may reduce the amount of special payments under paragraph (1)(c) by extending the period in paragraph (1)(c) to a date on or before January 31, 2016, if the special payments required under paragraph (1)(c) have been rendered onerous as a result of liabilities for escalated adjustments having been taken into account in the first solvency valuation after January 31, 2001.
36(1.2)The Superintendent may reduce the amount of special payments under paragraph (1)(c) by extending the period in paragraph (1)(c) to a date on or before December 31, 2018, if
(a) the administrator files an actuarial valuation report with the Superintendent that has a review date of no more than nine months prior to the date upon which a request is made under this subsection for a reduction in the amount of special payments,
(b) an actuary certifies that the pension plan has sufficient assets to meet its cash flow requirements during the extended amortization period,
(c) the employer provides to each member, former member and other person entitled to payments under the pension plan
(i) written notice of the request for a reduction in the amount of special payments and an explanation for the request, and
(ii) a request that any comments or questions regarding the request for the reduction be submitted to the employer and the Superintendent,
(d) the employer provides the Superintendent with
(i) a copy of the notice and request required under paragraph (c), and
(ii) certification of the last day upon which the notice and request were provided to a member, former member or other person, and
(e) it is at least forty-five days after the date certified to the Superintendent under subparagraph (d)(ii).
36(1.21)On or after the commencement of this subsection, the Superintendent shall not reduce the amount of special payments under paragraph (1)(c) by extending the period in that paragraph under subsection (1.2).
36(1.22)Despite subsection (8), if an administrator files an actuarial valuation report with a review date that is between April 1, 2010, and January 1, 2012, both dates inclusive, the administrator may request that
(a) the existing solvency deficiencies of the pension plan be consolidated, and
(b) the amount of special payments under paragraph (1)(c) be reduced by extending the period referred to in that paragraph to ten years.
36(1.23)The Superintendent shall grant a request referred to in subsection (1.22), if
(a) the administrator has not previously made a request under that subsection with respect to the pension plan,
(b) an actuary certifies that the assets of the pension plan are sufficient to provide for all the expected payments under the pension plan during the extended amortization period,
(c) the employer provides to each member, former member and other person entitled to payments under the pension plan written notice of the request that contains:
(i) an explanation for the request;
(ii) a comparison of the total annual employer contributions for each of the next ten years without consolidating the existing solvency deficiencies and with consolidating the existing solvency deficiencies; and
(iii) a statement that any comments or questions regarding the request may be submitted to the employer; and
(d) the employer provides the Superintendent with
(i) a copy of the notice required under paragraph (c), and
(ii) certification of the date on which the notice was provided to the members, former members and other persons entitled to payments under the pension plan.
36(1.24)If the Superintendent grants a request referred to in subsection (1.22),
(a) the administrator shall ensure that the pension plan is reviewed by, and an actuarial valuation report respecting the pension plan is prepared by, an actuary as of the date that is not more than twelve months after the review date of the previous report until
(i) the review date of the actuarial valuation report that identifies that no special payments are required with respect to the consolidated existing solvency deficiencies, or
(ii) the end of the ten year period referred to in paragraph (1.22)(b), whichever is earlier, and
(b) the pension plan shall not be amended during the ten year period referred to in paragraph (1.22)(b), if the amendment is not required under the Act, this Regulation, the pension benefits legislation of a designated jurisdiction or the Income Tax Act (Canada) unless
(i) the employer, or a person required to make contributions on behalf of the employer, contributes the full cost of the amendment to the pension plan on a solvency basis within ninety days after the amendment, or
(ii) no further special payments are required with respect to the consolidated existing solvency deficiencies.
36(1.25)If the Superintendent grants a request referred to in subsection (1.22) and a special payment had been made between the review date of the actuarial valuation report in question and the date the report is filed that is in an amount in excess of the amount determined for special payments over the extended amortization period, the difference between the amount of the special payment and amount determined for special payments over the extended amortization period shall not be considered an overpayment and shall not be used to further reduce the amount of special payments under subsection (1.22).
36(1.26)In subsections (1.27) to (1.29), “multi-jurisdictional pension plan” means a pension plan that is subject to the Act and to the pension benefits legislation of one or more designated jurisdictions.
36(1.27)Despite subsection (8), if an administrator files an actuarial valuation report respecting a multi-jurisdictional pension plan that has a review date that is between December 31, 2016, and December 31, 2018, both dates inclusive, the administrator may request that
(a) the existing solvency deficiencies of the pension plan be consolidated, and
(b) the amount of special payments under paragraph (1)(c) be reduced by extending the period referred to in that paragraph to ten years.
36(1.28)The Superintendent shall grant a request referred to in subsection (1.27), if
(a) the administrator has not previously made a request under that subsection with respect to the multi-jurisdictional pension plan, and
(b) an actuary certifies that the assets of the pension plan are sufficient to provide for all the expected payments under the pension plan during the extended amortization period.
36(1.29)If the Superintendent grants a request referred to in subsection (1.27),
(a) the administrator shall ensure that the multi-jurisdictional pension plan is reviewed by, and an actuarial valuation report respecting the pension plan is prepared by, an actuary as of the date that is not more than 12 months after the review date of the previous report until the earlier of
(i) the review date of the actuarial valuation report that identifies that no special payments are required with respect to the consolidated existing solvency deficiencies, and
(ii) the end of the ten-year period referred to in paragraph (1.27)(b),
(b) the pension plan shall not be amended during the ten-year period referred to in paragraph (1.27)(b), if the amendment is not required under the Act, this Regulation, the pension benefits legislation of a designated jurisdiction or the Income Tax Act (Canada) unless
(i) the employer, or a person required to make contributions on behalf of the employer, contributes the full cost of the amendment to the pension plan on a solvency basis within 90 days after the amendment, or
(ii) no further special payments are required with respect to the consolidated existing solvency deficiencies,
(c) each time a statement referred to in subsection 15(1) is provided to members between the date the request was granted by the Superintendent and the end of the ten-year period referred to in paragraph (1.27)(b), both dates inclusive, it shall contain the following additional information:
(i) an explanation of why the request was made; and
(ii) a comparison of the total annual employer contributions for each of the next ten years without consolidating the existing solvency deficiencies and with consolidating the existing solvency deficiencies,
(d) the administrator shall provide to each former member and other person entitled to payments under the pension plan a copy of any statement referred to in subsection 15(1) provided in accordance with paragraph (c), modified as necessary to apply to him or her, and
(e) the administrator shall provide the Superintendent with
(i) a copy of the information referred to in paragraph (c)(i) and (ii) each time the information is provided to members, former members and other persons entitled to payments under the pension plan, and
(ii) certification of the date on which the information was provided to the members, former members and other persons entitled to payments under the pension plan.
36(1.291)If the Superintendent grants a request referred to in subsection (1.27) and a special payment was made between the review date of the actuarial valuation report in question and the date the report is filed with the Superintendent that is in an amount in excess of the amount determined for special payments over the extended amortization period, the difference between the amount of the special payment and amount determined for special payments over the extended amortization period shall not be considered an overpayment and shall not be used to further reduce the amount of special payments under subsection (1.27).
36(1.3)If the Superintendent reduces the amount of special payments in accordance with subsection (1.2), (1.22) or (1.27), the employer shall
(a) immediately advise the Superintendent of any event or circumstance that may place the employer at a risk of not making a special payment, and
(b) provide the Superintendent with any requested information that may disclose an event or circumstance that may place the employer at a risk of not making a special payment.
36(1.4)An event or circumstance referred to in subsection (1.3) that, in the opinion of the Superintendent, significantly endangers the interests of the members or former members of a pension plan is a prescribed event or circumstance for the purposes of paragraph 61(1)(h) of the Act.
36(2)The remaining special payments referred to in paragraph (1)(a) shall be determined after utilizing any unused actuarial gains in existence on the commencement of section 10 of the Act.
36(3)The period of fifteen years established under paragraph (1)(b) in which an actuarial loss may be liquidated shall, for the purposes of the first actuarial valuation report subsequent to a substitute report filed under subsection 9(3), commence to run on the commencement of section 10 of the Act.
36(4)If payment of a new series of special payments is commenced under paragraph (1)(c), the amounts referred to in paragraphs (1)(a), (b), (b.1) and (b.2) in respect of any portion of an amortization period extending beyond the end of the period established for the installments required under paragraph (1)(c) shall be reduced or eliminated so that the total amount of the present value of all special payments and the going concern assets is equal to the going concern liability.
36(5)Subject to subsection 41(1), an employer or person required to make contributions on behalf of an employer may, instead of making the special payments required under paragraphs (1)(b), (b.1), (b.2) and (c), make scheduled dollar payments in accordance with subsections (2), (3) and (4) in monthly installments that
(a) commence as of the review date of the actuarial valuation report in which the actuarial loss, going concern unfunded liability or solvency deficiency is identified, and
(b) are determined by reference to a schedule of dollar payments determined in accordance with subsection (6).
36(6)A schedule of dollar payments referred to in subsection (5) shall be determined so that
(a) each scheduled dollar payment is a consistent percentage of the projected future payroll of members, as projected at the date of establishing the schedule,
(b) the present value of the scheduled dollar payments is equal to the total amount of any actuarial loss, any going concern unfunded liability and any solvency deficiency to be liquidated at the date of establishing the schedule,
(c) if there is an actuarial loss or a going concern unfundeed liability, the projected future payroll is determined using the same actuarial assumptions used in the going concern valuation in which the actuarial loss or going concern unfunded liability was identified, and
(d) the amortization period for each series of scheduled dollar payments is not greater than the periods provided for under paragraph (1)(b), (b.1), (b.2) or (c), as the case may be.
36(7)For the purposes of paragraph (6)(b), the present value of scheduled dollar payments shall be determined
(a) for scheduled dollar payments relating to an actuarial loss or a going concern unfunded liability or a going concern unfunded liability, using the interest rate assumed in the going concern valuation, and
(b) for scheduled dollar payments relating to a solvency deficiency, using the interest rate assumed in the solvency valuation.
36(8)Each actuarial loss and each solvency deficiency shall be funded separately and shall not be combined with any other actuarial loss or solvency deficiency unless the plan is wound up.
36(9)Subject to subsection (10), subsection (8) applies to an actuarial valuation report with a review date before December 31, 2019.
36(10)Subsection (8) applies to an actuarial valuation report respecting a pension plan referred to in subsection 8.1(2), regardless of the review date of the actuarial valuation report.
2001-1; 2003-87; 2008-10; 2011-71; 2017-35; 2020-51
Contributions to the reserve account
2022-63
36.1Contributions for the provision for adverse deviations are prescribed for the purposes of paragraph 54.1(2)(b) of the Act.
2022-63
Fixed contributions by employer to a defined benefit pension plan
37(1)A defined benefit plan established under
(a) one or more collective agreements, or
(b) a trust agreement,
in which the requirement that an employer or person required to make contributions on behalf of an employer contribute to the pension fund is limited to a fixed amount established in a collective agreement or a trust agreement, shall provide in the plan for the funding of pension benefits and any other benefits provided under the plan and shall set out the obligations of the employer or a person required to make contributions on behalf of the employer.
37(2)Subject to section 40, an employer or a person required to make contributions on behalf of an employer under a plan referred to in subsection (1) shall make contributions to the pension fund in amounts that are not less than the sum of
(a) any contributions received from members, including any amounts withheld from members by payroll deduction or otherwise as the members’ contributions under the plan and any additional voluntary contributions permitted under the plan, and
(b) any amounts required by the applicable collective agreement or trust agreement to be paid by the employer or person.
37(3)Contributions made and amounts paid under subsection (2) shall be made or paid
(a) for contributions referred to in paragraph (2)(a), within fifteen days after the last day of the month in which the contribution or amount is received or withheld by the employer or person, and
(b) for amounts referred to in paragraph (2)(b), within fifteen days after the last day of the month in which the period of employment giving rise to the amounts occurs.
37(4)An actuary who prepares an actuarial valuation report required under subsection 9(1) or (2) in respect of a pension plan referred to in subsection (1) shall
(a) perform such tests as will demonstrate in the report that the contributions required to be made under a collective agreement or trust agreement referred to in subsection (1) are sufficient to ensure that all the benefits required to be provided under the plan, the Act and the regulations can be provided without allowing for a reduction of any of the benefits, or
(b) if the actuary is unable to demonstrate that the contributions required to be made under a collective agreement or trust agreement are sufficient as required under paragraph (a), propose to the administrator, in the report, the optional courses of action that would result in the contributions being sufficient to provide all the benefits required to be provided under the plan, the Act and the regulations.
37(5)Notwithstanding subsection 9(8), an administrator to whom an actuary has proposed optional courses of action under paragraph (4)(b) in an actuarial valuation report shall
(a) within thirty days after the date on which the actuary submits the report to the administrator, submit a copy of the report to the Superintendent, and
(b) within one hundred and eighty days after the date on which the actuary submits the report to the administrator,
(i) take one of the proposed optional courses of action, and
(ii) file with the Superintendent all documents relevant to the course of action taken.
2020-51
Application of actuarial gain
38(1)If an actuarial valuation report under section 9 discloses
(a) an actuarial gain under the pension plan in respect of a period commencing on or after the commencement of section 10 of the Act, and
(b) no solvency deficiency,
the administrator who utilizes the actuarial gain shall apply the amount of the actuarial gain first and foremost to reduce the remaining balance of any actuarial loss, commencing with the most recent previous actuarial loss.
38(2)An administrator who reduces an actuarial loss under subsection (1) may have the actuary re-amortize the remaining balance of the actuarial loss over its existing amortization period or over a shorter period and special payments shall be required to be made over that re-amortization period.
38(3)An administrator referred to in subsection (1) may apply an actuarial gain referred to in paragraph (1)(a) to reduce any contributions respecting the normal cost of the pension plan if
(a) there is no experience deficiency, no initial unfunded liability, no actuarial loss and no solvency deficiency, and
(b) part or all of the contributions are employer contributions and the plan provides for such application.
38(3.1)For an actuarial valuation report with a review date on or after December 31, 2019, an administrator of a pension plan may apply a going concern excess to reduce any contributions respecting the normal cost of the pension plan if
(a) there is no going concern unfunded liability and no solvency deficiency,
(b) part or all of the contributions are employer contributions and the plan provides for such application, and
(c) the reduction in contributions would not result in a solvency ratio of less than 105% or a going concern ratio of less than 105%.
38(3.2)An administrator who intends to apply a going concern excess under subsection (3.1) shall provide the members and former members of the pension plan with 60 days’ prior written notice of the administrator’s intention.
38(4)If an actuarial valuation report under section 9 discloses
(a) an actuarial gain under the pension plan in respect of a period commencing on or after the commencement of section 10 of the Act, and
(b) a new solvency deficiency or the remaining balance of a previous solvency deficiency,
the administrator shall not apply the amount of the actuarial gain to reduce any previously scheduled special payments pertaining to any experience deficiency, initial unfunded liability, actuarial loss or solvency deficiency during the remaining amortization period for any solvency deficiency.
38(5)An administrator who does not utilize an actuarial gain at the time of the review date of the actuarial valuation report in which the actuarial gain is identified may do so in accordance with subsection (1) at a later date, if there is no solvency deficiency at that later date.
38(6)Subject to subsection (7), subsections (1), (2), (3), (4) and (5) do not apply to an actuarial valuation report with a review date on or after December 31, 2019.
38(7)Subsections (1), (2), (3), (4) and (5) apply to an actuarial valuation report respecting a pension plan referred to in subsection 8.1(2), regardless of the review date of the actuarial valuation report.
38(8)Subsections (3.1) and (3.2) do not apply to an actuarial valuation report respecting a pension plan referred to in subsection 8.1(2).
2020-51
Application of solvency gain
39(1)An administrator may apply a solvency gain only to reduce the total of any new solvency deficiency, any remaining balance of any previous solvency deficiency or both.
39(2)An administrator who reduces a solvency deficiency under subsection (1)
(a) may have the actuary re-amortize the remaining balance of the solvency deficiency over its existing amortization period or over a shorter period and special payments shall be required to be made over the re-amortization period, and
(b) shall have the actuary recalculate the remaining special payments in respect of any actuarial loss, taking into account the results of the most recently performed going concern valuation and the reduced special payments for solvency deficiencies.
39(3)Subject to subsection (4), this section does not apply to an actuarial valuation report with a review date on or after December 31, 2019.
39(4)This section does not apply to an actuarial valuation report respecting a pension plan referred to in subsection 8.1(2), regardless of the review date of the actuarial valuation report.
2020-51
Payment of escalated adjustment
40(1)Repealed: 2001-1
40(2)The amount of a payment of an escalated adjustment being made from a pension fund, to the extent that it has not been prefunded, shall be deemed to be part of the normal cost.
40(3)Repealed: 2001-1
2001-1
Payment equal to or greater than special payments
41(1)If an employer or a person required to make contributions on behalf of an employer makes a payment during the period covered by the most recently filed actuarial valuation report that equals or exceeds the total of all the special payments referred to in paragraphs 36(1)(b), (b.1), (b.2) and (c) or subsection 36(5) during the subsequent thirty-six months, including the month in which the payment is made, paragraphs 36(1)(b), (b.1), (b.2) and (c) do not or subsection 36(5) does not apply to the employer or person contributing during the period commencing on the first day of the month following the month in which the payment is made and ending on the earlier of
(a) the last day of the thirty-fifth subsequent month, and
(b) the review date of the actuarial valuation report first filed after the most recently filed actuarial valuation report.
Non-payment of contributions before filing of valuation report
41(2)Subject to subsection (1), if an actuarial valuation report filed under this Regulation establishes that an employer or a person required to make contributions on behalf of an employer has not paid any or all contributions, payments or amounts in conformity with subsections 35(2) and (3) or 37(2) and (3) before the date of filing, the employer or person required to make contributions on behalf of the employer shall pay all those contributions, payments and amounts into the pension fund within sixty days after the date of filing, including interest calculated using the interest rate assumed in the going concern valuation or the solvency valuation, as the case may be, calculated for each contribution, payment or amount for the period from the date on which it was due to the date of payment, inclusive.
2020-51
Post-termination contribution
42If, after the termination of employment of a member, the member, the member’s employer or a person required to make contributions on behalf of an employer makes contributions to a pension fund on behalf of the member in compliance with a court order or an order issued under the Employment Standards Act,
(a) for the purposes of the pension plan, the period of employment of the member shall be deemed to include the period in relation to which the contributions were made,
(b) the amount of any contributions made to the fund by the member, including interest credited to those contributions, shall be increased by the amount of the contributions made in compliance with the order, and
(c) the member’s pension benefits shall be adjusted to reflect the amount that accrues to the member as a result of the increase, in accordance with the formula established under the plan.
LETTERS OF CREDIT
2020-51
Letters of credit
2020-51
42.001(1)The following definitions apply in this section and Schedule A.
“issuer” means an issuer of a letter of credit.(émetteur)
“prescribed employer” means an employer required to make contributions under a defined benefit plan that is not a multi-employer pension plan, or a person required to make contributions on behalf of an employer under a defined benefit plan that is not a multi-employer pension plan. (employeur visé)
“prescribed trustee” means a trustee of a pension fund that is administered under a trust described in paragraph 11(b).(fiduciaire visé)
42.001(2)This section applies if a prescribed employer is required to make payments into the pension fund with respect to a solvency deficiency.
42.001(3)Despite subsection 35(2), instead of making payments into the pension fund with respect to the solvency deficiency, the prescribed employer may provide a letter of credit to a prescribed trustee if the requirements of this section are satisfied.
42.001(4) A letter of credit shall satisfy the requirements set out in Schedule A.
42.001(5)A prescribed employer is not entitled to provide a letter of credit if the total amount of all letters of credit provided to the prescribed trustee for the pension plan would exceed 15% of the solvency liabilities of the plan.
42.001(6)The prescribed employer shall provide the letter of credit to the prescribed trustee at least 15 days before the date on which the first installment of the special payments to which the letter of credit relates is due.
42.001(7)If a letter of credit is being amended, the prescribed employer shall provide the amended letter of credit to the prescribed trustee at least 15 days before the date on which any amendment takes effect.
42.001(8)Subject to subsection (9), if a letter of credit is being renewed, the prescribed employer shall provide the renewed letter of credit to the prescribed trustee at least 15 days before the date on which the letter of credit would have expired.
42.001(9)If a letter of credit is being renewed, the prescribed employer may provide notice of the renewal to the prescribed trustee, and a copy of the notice to the issuer, at least 15 days before the date on which the letter would have expired instead of providing the renewed letter of credit in accordance with subsection (8).
42.001(10)If a letter of credit is being replaced by another letter of credit, the prescribed employer shall provide the replacement letter of credit to the prescribed trustee at least 15 days before the date on which the original letter of credit expires.
42.001(11)Subject to subsection (12), a prescribed employer who is required to provide a letter of credit, an amended letter of credit, a renewed letter of credit or a replacement letter of credit under subsection (6), (7), (8) or (10), as the case may be, within the period specified in that subsection shall give a copy of it to the administrator within the same period.
42.001(12)A prescribed employer who provides a notice of renewal in accordance with subsection (9) instead of complying with subsection (8) shall provide a copy of the notice of renewal to the administrator within the period referred to in subsection (9).
42.001(13)Within five days after receiving a copy of the letter of credit, the amended letter of credit, the replacement letter of credit, the renewed letter of credit or the notice of the renewal of the letter of credit, the administrator shall give notice to the Superintendent by filing the following documents with the Superintendent:
(a) a certified copy of the letter of credit, the amended letter of credit, the replacement letter of credit, the renewed letter of credit or the notice of the renewal, and
(b) a certificate indicating whether the letter of credit satisfies the requirements of this Regulation and the requirements of the Income Tax Act (Canada).
42.001(14)The prescribed trustee holds the letter of credit in trust for the pension plan.
42.001(15)A prescribed trustee who holds a letter of credit in trust for a pension plan is required to demand payment of the amount of the letter of credit into the pension fund by the issuer if any of the following circumstances exist:
(a) if the letter of credit does not satisfy the requirements of this Regulation or the Income Tax Act (Canada);
(b) if the administrator gives written notice to the prescribed trustee that the prescribed employer intends to wind up the pension plan under subsection 60(1) of the Act;
(c) if the Superintendent issues an order under subsection 61(1) of the Act requiring the wind-up of the pension plan;
(d) if the prescribed employer is subject to bankruptcy proceedings under the Bankruptcy and Insolvency Act (Canada);
(e) if an application or petition has been filed under the Winding-up and Restructuring Act (Canada) by the prescribed employer or against the prescribed employer;
(f) if, under the terms of an agreement under section 93.3 of the Act between the Minister and an authorized representative of a designated jurisdiction whose pension benefits legislation applies to the pension plan, the prescribed trustee is otherwise required to demand payment of the amount of the letter of credit;
(g) if, under the terms of the trust agreement related to the letter of credit, the prescribed trustee is otherwise required to demand payment of the amount of the letter of credit.
42.001(16)If the issuer does not pay the amount of the letter of credit on the prescribed trustee’s demand,
(a) the prescribed employer shall immediately pay that amount into the pension fund, and
(b) the prescribed employer shall give written notice to the Superintendent that the issuer has not paid the amount of the letter of credit.
42.001(17)If a prescribed trustee demands payment of the amount of a letter of credit, the prescribed trustee shall promptly notify the administrator, the prescribed employer and the Superintendent.
42.001(18)If the issuer does not pay the amount of the letter of credit on the prescribed trustee’s demand, the prescribed trustee shall promptly notify the administrator, the prescribed employer and the Superintendent.
42.001(19)The fees or expenses associated with obtaining, holding, amending or cancelling a letter of credit are not payable from the pension fund.
42.001(20)Subject to section 19 of the Act, the fees and expenses associated with enforcement measures in respect of a letter of credit are payable from the pension fund.
2020-51; 2022-63
EXEMPTIONS - SOLVENCY SPECIAL PAYMENTS
2005-156; 2006-77
Application
42.01(1)Sections 42.1 to 42.5 apply to defined benefit plans for employees of municipalities and defined benefit plans for employees of universities.
42.01(2)In subsection (1), “universities” means those post-secondary educational institutions located in New Brunswick that are prescribed by regulation for the purposes of the definition “universities” as defined in section 1 of the Maritime Provinces Higher Education Commission Act.
2006-77; 2022-63
Exemptions and limitations
42.1(1)Subject to the terms and conditions set out in subsections (2), (3) and (4), a pension plan is exempt from containing provisions requiring an employer, or a person required to make contributions on behalf of an employer, to make contributions in respect of a solvency deficiency and the provisions of subsection 35(1) with respect to a solvency deficiency under the plan do not apply.
42.1(2)At least fifty-one per cent of the members, former members and other persons entitled to payments under the plan who vote shall consent to the proposal for exemption referred to in subsection (1), in accordance with the process set out in section 42.2.
42.1(3)No amendment shall be made to a plan that is exempt under this section that negatively impacts the solvency of the plan unless
(a) the full cost of the amendment on a solvency basis is paid into the pension fund before the effective date of the amendment, or
(b) the amendment is required by law.
42.1(4)Repealed: 2008-10
2005-156; 2006-77; 2008-10
Notice and reply procedure for consent
42.2(1)The administrator of the pension plan shall send a notice in the form provided by the Superintendent by mail to
(a) each member,
(b) each former member, and
(c) any other person entitled to payments under the plan.
42.2(2)The notice shall include
(a) an explanation of the exemption from making contributions to the pension fund in respect of solvency deficiency, and
(b) a request for the consent of the person to the exemption.
42.2(3)A reply form in the form provided by the Superintendent and a uniquely numbered, postage-paid return envelope shall be included with the notice.
42.2(4)The administrator of the pension plan shall keep confidential a list that matches the name and address of each person to which the notice referred to in subsection (1) is sent, to the unique number of the postage-paid return envelope included with the notice, but shall use the information only to provide replacement reply forms, on request, and not to identify the responses in the reply forms referred to in subsection (3) with the name or address of a person.
42.2(5)Forty-five days after the date of mailing of the notice shall be allowed for reply forms to be returned.
42.2(6)Forty-six days after the date of mailing of the notice, the administrator of the pension plan shall
(a) record the identification numbers of the postage-paid return envelopes that have been received,
(b) separate the envelopes from the reply forms, and
(c) count the responses on the reply forms.
42.2(7)If an affirmative response is received from at least fifty-one per cent of those who reply, the administrator of the pension plan, within thirty days after the responses are counted, shall submit to the Superintendent for recording and acknowledgement the following documents:
(a) an actuarial valuation report with a review date within nine months before the date on which the documents are submitted under this section;
(b) a copy of the notice referred to in subsection (1) sent under this section;
(c) a certificate of the administrator of the pension plan certifying that
(i) notice has been given and replies have been counted in the manner required by this section, and
(ii) the percentage of affirmative responses complies with this subsection.
2005-156; 2006-77; 2015-59
Notice of results
42.3Within seven days after the counting of the reply forms, the administrator of the pension plan shall notify by mail each of the persons identified in subsection 42.2(1) of the results of the process set out in subsection 42.2(6).
2005-156; 2006-77
Recording of exemption
42.4(1)The Superintendent shall not record an exemption under section 42.1 before the expiration of forty-five days after the date of submission to the Superintendent of the documents set out in subsection 42.2(7), but after the expiration of the forty-five-day period the Superintendent shall record the exemption.
42.4(2)After the exemption is recorded under subsection (1), the exemption under section 42.1 becomes effective.
2005-156
Subsequent notice
42.5If the administrator of the pension plan receives at least fifty per cent negative responses under section 42.2, the administrator shall not send a notice referred to in subsection 42.2(1) for a period of twelve months after the date of mailing of the preceding notice.
2005-156; 2006-77; 2015-59
INTEREST
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
INVESTMENT
Definitions
44(1)In this section
“book value” means the cost of acquisition of an asset of a pension fund, including all direct costs associated with the acquisition, before any external financing;(valeur comptable)
“mutual fund” means a fund established by a corporation duly authorized to operate the fund, the assets of which are comprised of investments from more than one depositor and shares of which are allocated to each depositor in order to establish the proportionate interest of each depositor at any time in the assets of the fund;(fonds mutuel)
“pooled fund” means a fund established by a corporation duly authorized to operate the fund, the assets of which are comprised of investments from more than one depositor and shares of which are allocated to each depositor in order to establish the proportionate interest of each depositor at any time in the assets of the fund;(fonds mis en commun)
“related person” means a person deemed to be related under paragraph (2)(g);(personne liée)
“security” means a document, instrument or writing commonly known as a security and includes a share of any class or series of shares or a debt instrument of a corporation, a certificate evidencing such a share or debt obligation, a warrant, an option, a future and a commodity;(valeur mobilière)
“segregated fund” means a fund established by a corporation duly authorized to operate the fund, the assets of which are comprised of investments from more than one contributor and are maintained by the corporation separately and distinctly from the assets of its general funds;(fonds réservé)
“subsidiary” means a corporation deemed to be a subsidiary under paragraph (2)(c);(filiale)
“traded publicly” means traded on (négocié publiquement)
(a) a provincially regulated stock exchange in Canada, or
(b) any other market on which securities are traded if the prices at which they have been traded on that market are regularly published in a newspaper or business or financial publication having a general and regular paid circulation or in a publication regularly distributed by an investment or securities dealer;
“voting share” means a share of any class of shares of a corporation that carries voting rights under all circumstances and any share of any class of shares that carries voting rights as a result of the occurrence of a contingency that has occurred and continues to occur.(action avec droit de vote)
Affiliates, subsidiaries, control
44(2)For the purposes of this Regulation
(a) a corporation shall be deemed to be an affiliate of another if
(i) it is the subsidiary of the other,
(ii) both corporations are subsidiaries of a third corporation, or
(iii) both corporations are controlled by the same person,
(b) an affiliate of a corporation shall be deemed to be an affiliate of every other affiliate of the corporation,
(c) a corporation shall be deemed to be the subsidiary of another if it is controlled by
(i) the other,
(ii) that other and one or more other corporations all of which are controlled by that other, or
(iii) one or more corporations, all of which are controlled by that other,
(d) a corporation shall be deemed to be controlled by a person if
(i) the person holds, other than by way of security, by or for the benefit of only that person, voting shares of the corporation that carry more than fifty per cent of the votes for the election of directors, and
(ii) the votes referred to in subparagraph (i) are sufficient, if exercised, to elect a majority of the board of directors of the corporation,
(e) a corporation shall be deemed to be the holding corporation of all its subsidiaries,
(f) a person who controls a corporation shall be deemed to own all the voting shares owned by the corporation, and
(g) a person shall be deemed to be related to
(i) any corporation that the person controls and any affiliate of any such corporation,
(ii) any partner of the person who has substantial beneficial interest in a partnership in which the person has a substantial beneficial interest,
(iii) a trust or estate in which the person has a substantial beneficial interest or of which the person serves as a trustee or in a capacity similar to a trustee,
(iv) the spouse or common-law partner and every child of the person, and
(v) any relative of the person or of the person’s spouse or common-law partner.
Statement of investment policies and goals of pension plan
44(3)The administrator of a pension plan shall establish, adopt and follow a written statement of investment policies and goals for the plan which shall be tailored to the type of pension plan administered and the nature of its liabilities and which shall, unless the Superintendent authorizes otherwise, include the following:
(a) the investment portfolio diversification, including the total and individual investment limits;
(b) the asset mix policy and rate of return expectations;
(c) the categories and sub-categories of investments and loans that may be made;
(d) the policy to be followed where there is an actual or perceived conflict of interest on the part of the administrator, a member of a pension committee, board of trustees or any board, agency or commission acting as the administrator or any employee or agent of the administrator;
(e) minimum disclosure requirements with respect to the actual or perceived conflict of interest, including the timing of the disclosure;
(f) the lending of cash or securities;
(g) the retention or delegation of voting rights acquired through pension plan investments; and
(h) the basis for the valuation of investments that are not regularly traded.
Statement of investment policies and goals of pension plan
44(4)The selection of investments to be permitted under the written statement of policies and goals shall be made in consideration of the overall context of the existing or proposed investment portfolio, without undue risk of loss or impairment to the pension fund and with a reasonable expectation of fair return or appreciation to the fund, given the nature of the investment.
Statement of investment policies and goals of pension plan
44(5)The administrator shall review the written statement of investment policies and goals referred to in subsection (3) within three years after the later of
(a) the date on which the administrator establishes and adopts the statement, and
(b) if applicable, the commencement date of this Regulation,
and subsequently at intervals of not more than three years, with each interval commencing to run on the immediately preceding review date.
Statement of investment policies and goals of pension plan
44(6)An administrator reviewing a written statement of investment policies and goals under subsection (5) shall
(a) if no amendments are to be made to the statement, notify the Superintendent in writing to that effect, or
(b) if amendments are made to the statement, apply for registration of the amendments in accordance with section 11 of the Act and with the regulations.
Statement of investment policies and goals of pension plan
44(7)No person shall select an investment of or make a loan from a pension fund unless the investment or loan is permissible under the written statement of investment policies and goals.
Deposits, investments, loans from pension fund
44(8)Every deposit of, investment of and loan from the assets of a pension fund on or after the commencement of section 58 of the Act shall be made or held in the name of or for the account of the pension fund.
Loans or investments before commencement of s.58 of the Act
44(9)Subsection (7) does not apply to an investment or loan made before the commencement of section 58 of the Act until
(a) the date on which the term of the investment or loan expires, or
(b) five years after the date of commencement of section 58 of the Act,
whichever occurs first.
Limits on investments and lending
44(10)At the time when
(a) an investment from the assets of a pension fund is made in the securities of, or
(b) a loan of the assets of a pension fund is made to,
one person or a combination of related persons, the total of such investments and loans shall not exceed ten per cent of the book value of the fund’s assets.
Limits on investments and lending
44(11)Subsection (10) does not apply to an investment in
(a) deposits with a bank, a loan or trust company or a credit union or caisse populaire to the extent that the deposits are fully insured by the Canada Deposit Insurance Corporation, the Quebec Deposit Insurance Board, the Ontario Share and Deposit Insurance Corporation or any other such provincial government deposit insurance corporation in Canada,
(b) segregated, mutual or pooled funds that comply with the requirements of this section and sections 45 and 46,
(c) the shares of a corporation
(i) the assets of which are at least ninety-eight per cent cash, investments and loans,
(ii) that does not issue debt obligations, and
(iii) that obtains at least ninety-eight per cent of its income from investments and loans,
if the corporation is limited in its investments to those the pension plan may make under this section and sections 45 and 46, and
(d) issued bonds or debentures of or guaranteed by the Government of Canada, a province or territory of Canada, the International Bank for Reconstruction and Development established by the Agreements for an International Monetary Fund and the International Bank for Reconstruction and Development approved by section 2 of the Bretton Woods Agreements Act (Canada), the Inter-American Development Bank, the Carribean Development Bank or the Asian Development Bank.
Limits on investments and lending
44(12)A pension fund shall not own more than thirty per cent of the voting shares of a corporation.
Limits on investments and lending
44(13)Subsection (12) does not apply to a corporation that was incorporated solely for the purpose of and that limits its activities to allowing a pension fund to avail itself of either
(a) expertise not otherwise available to the fund, or
(b) an investment opportunity in real estate, resource property or venture capital.
Limits on investments and lending
44(14)The assets of the fund of a pension plan shall not be loaned to or, except where they are traded publicly, invested in the securities of
(a) the administrator or, if the administrator is a pension committee or a board of trustees, a member of the committee or board,
(b) an officer or employee of the administrator,
(c) a person responsible for holding or investing the money of the pension fund or any officer or employee of such person,
(d) a trade union representing members of the pension plan or an officer or employee of the trade union,
(e) an employer who contributes to the plan, an employee of the employer and, where the employer is a corporation, an officer or director of the employer,
(f) the spouse, common-law partner or child of any person referred to in paragraphs (a) to (e),
(g) if the employer is a corporation
(i) any person who directly or indirectly holds more than ten per cent of the voting shares carrying more than ten per cent of the voting rights attached to all voting securities of the corporation or the spouse, common-law partner or child of such person, or
(ii) any person who directly or indirectly, together with a spouse, common-law partner or child, holds more than ten per cent of the voting shares carrying more than ten per cent of the voting rights attached to all voting securities of the corporation,
(h) a corporation that is an affiliate of the employer, or
(i) a corporation wholly owned or controlled either directly or indirectly by a person referred to in paragraph (a) or (g).
Limits on investments and lending
44(15)Despite subsection (14), the assets of a pension fund may be loaned to an employee of the employer or to the spouse, common-law partner or child of the employee on the security of a mortgage on residential property of the employee, spouse, common-law partner or child if the mortgage is guaranteed or insured by or through an agency of the Government of Canada or a province or territory of Canada or insured by a policy of mortgage insurance issued by an insurance company authorized to carry on business in Canada.
Limits on investments and lending
44(16)The administrator of a pension plan may lend the assets of the pension fund if
(a) the lending is permitted in the written statement of investment policies and goals, and
(b) the loans are secured by cash or readily marketable investments having a market value of at least 102% of the loan and maintained at least once daily to ensure a market value of the collateral of at least 102% of the outstanding market value of loaned assets.
2011-60; 2015-59
Liability for non-conforming investments
45(1)If the investment of the assets of a pension fund ceases to conform to the requirements of the Act, the regulations, any other applicable legislation, the pension plan or the written statement of investment policies and goals as the result of an event that the administrator was unable to foresee or control, the administrator shall, within a reasonable time after learning of the event, take all steps necessary to bring the investment of the assets into full conformity with the requirements.
Liability for non-conforming investments
45(2)Subject to subsection (5), the administrator of a pension plan or an agent employed by the administrator who consents to or authorizes the investment of or invests the assets of a pension fund in a manner that does not conform to the requirements of the Act, the regulations, any other applicable legislation, the plan or the written statement of investment policies and goals, is absolutely liable for any loss to the assets of the fund resulting from the investment.
Liability for non-conforming investments
45(3)Subject to subsection (5), if both the administrator of a pension plan and an agent employed by the administrator consent to or authorize the investment of or invest the assets of a pension fund in a manner that does not conform to the requirements of the Act, the regulations, any other applicable legislation, the plan or the written statement of investment policies and goals, the administrator and the agent are absolutely liable, jointly and severally, for any loss to the assets of the fund resulting from the investment.
Liability for non-conforming investments
45(4)Subject to subsection (5), if the administrator of a pension plan is a pension committee or a board of trustees, the members of the committee or board who consent to or authorize an investment of the assets of a pension fund in a manner that does not conform to the requirements of the Act, the regulations, any other applicable legislation, the plan or the written statement of investment policies and goals are absolutely liable, jointly and severally, for any loss to the assets of the fund resulting from the investment.
Liability for non-conforming investments
45(5)A person, agent, board, agency, commission or member of a pension committee or board of trustees referred to in subsection (2), (4) or (5) who, being duly authorized, consents to or authorizes an investment or invests in good faith while acting on the recommendation of a person who is in the business of giving advice respecting the making of investments is not liable for a resulting loss to the assets of the fund.
Annulment of investment by Superintendent
45(6)The Superintendent may annul any investment of the assets of a pension fund that does not conform to the requirements of the Act, the regulations, any other applicable legislation, the pension plan or the written statement of investment policies and goals.
Consideration for investment transaction
45(7)No person referred to in subsection 44(14) shall receive a fee, commission or other consideration in respect of a transaction involving the investment of the assets of a pension fund unless
(a) the person would receive such a fee, commission or other consideration for a transaction involving the investment of the assets in the ordinary performance of the person’s job, and
(b) the fee, commission or other consideration is equivalent in kind and value to the consideration ordinarily received by the person in respect of such a transaction.
Exemptions from sections 44 and 45
46Sections 44 and 45 do not apply to fully-insured contracts and deposit administration general funds contracts that are regulated by the Insurance Act, the Canadian and British Insurance Companies Act (Canada), the Foreign Insurance Companies Act (Canada) or similar legislation of any province or territory of Canada.
Exemptions from sections 44 and 45
46.1Sections 44 and 45 do not apply to a pension plan under section 146 of the Income Tax Act (Canada).
94-78
LOCKING-IN
2003-87
Repealed
46.2Repealed: 2015-59
2003-87; 2011-60; 2015-59
SURPLUS
Calculation of surplus
47(1)Subject to subsection (2), for the purpose of calculating a surplus under subsections 59(1) and (2) of the Act in the preparation of an actuarial valuation report or a cost certificate
(a) the value of the assets of a pension plan shall be the total of any cash balances in the pension fund, including accrued and receivable income items, and the market value of the investments held by the fund, less, while the plan continues in existence, the greater of
(i) an amount equal to employer contributions respecting the normal cost of the plan over a two-year period immediately following the review date of the actuarial valuation report or cost certificate, and
(ii) an amount equal to twenty per cent of the going concern liabilities of the plan, and
(b) the value of the liabilities of the pension plan shall be
(i) if the plan is not being wound up or is being wound up in part, for the portion of the plan that continues in existence, the calculated going concern liabilities or the calculated solvency liabilities, whichever is greater, and
(ii) if the plan is being wound up in whole or in part, for the portion of the plan that is being wound up, the liabilities of the plan.
47(2)For the purpose of calculating a surplus under subsections 59(1) and (2) of the Act in the preparation of a cost certificate for a defined contribution plan
(a) the value of the assets of a pension plan shall be the total of any cash balances in the pension fund, including accrued and receivable income items, and the market value of the investments held by the fund, less, while the plan continues in existence, an amount equal to employer contributions respecting the normal cost of the plan over a one-year period immediately following the review date of the cost certificate, and
(b) the value of the liabilities of the pension plan shall be
(i) if the plan is not being wound up or is being wound up in part, for the portion of the plan that continues in existence, the calculated going concern liabilities, and
(ii) if the plan is being wound up in whole or in part, for the portion of the plan that is being wound up, the liabilities of the plan.
93-144
Payment of surplus to employer
48(1)For the purposes of section 59 of the Act, the Superintendent may consent to an application for payment of surplus to an employer if
(a) the plan provides for the withdrawal of surplus while the plan continues in existence,
(b) the existence of surplus is verified by an actuarial valuation report or cost certificate prepared in accordance with the Act and this Regulation,
(c) the administrator establishes the employer’s entitlement to be paid the surplus, and
(d) the administrator delivers written notice in accordance with subsection (2) to each trade union representing members of the pension plan and to each member of any advisory committee formed under section 21 of the Act.
48(2)A notice under paragraph (1)(d) shall include the name and provincial registration number of the plan and a copy of the report prepared under paragraph (1)(b).
48(3)If a pension plan being wound up in whole permits the payment of surplus to an employer on wind-up of the plan and the existence of surplus is verified by the wind-up report required to be filed under subsection 62(1) of the Act, the administrator may, after the wind-up report is approved by the Superintendent and the administrator establishes the employer’s entitlement to be paid the surplus, apply to the Superintendent for the Superintendent’s consent to pay the surplus to the employer and subsection (1) applies with the necessary modifications.
48(4)If a pension plan being wound up in part permits the payment of surplus to an employer while the pension plan continues in existence, the administrator may, after the wind-up report is approved by the Superintendent, apply to the Superintendent for the Superintendent’s consent to pay the surplus to the employer in accordance with subsection (1).
48(5)An administrator applying for payment of surplus under section 59 of the Act and under this section shall pay the prescribed fee and, where applicable, shall include with the application certified copies of the notice delivered under paragraph (1)(d).
93-144; 2022-63
WIND-UP OF A PENSION PLAN
Wind-up of a pension plan
2022-63
49(1)A notice of wind-up of a pension plan, in addition to the information to be included under subsections 60(3) and (4) of the Act, shall include the following information:
(a) the name and provincial registration number of the plan;
(b) advice that each member, former member and other person entitled to benefits or payments under the plan will be given a statement setting out the person’s entitlement and the options available under the plan; and
(c) if the plan provides contributory pension benefits, notice of any right a member may have to make contributions in respect of the period of notice of termination required under the Employment Standards Act.
49(2)A wind-up report required to be filed by an administrator under subsection 62(1) of the Act shall
(a) where a pension plan is a defined benefit plan, be prepared by an actuary, and
(b) be filed within six months after the effective date of the wind-up.
49(2.1)For the purposes of paragraph 62(1)(d) of the Act, the following information is prescribed:
(a) information establishing the existence and amount of any surplus of the pension plan; and
(b) the balance of the reserve account, if any.
49(3)A wind-up report in respect of a defined benefit plan being wound up in part shall be prepared as if the plan were being wound up in whole.
49(4)An administrator filing a wind-up report under subsection 62(1) of the Act shall pay the prescribed fee.
49(5)The administrator of a pension plan being wound up, in whole or in part, shall, within three months after the effective date of the wind-up, file with the Superintendent any outstanding annual information return required to be filed on or before the effective date of the wind-up.
49(6)For the purposes of the wind-up of a pension plan, in whole or in part, the commuted value of a benefit as of the effective date of the wind-up shall not be less than the amount referred to in paragraph 19(4)(b) or such lesser amount as is approved by the Superintendent.
49(7)Payments that may be made out of the pension fund of a pension plan being wound up, in whole or in part, before the Superintendent has approved the wind-up report include
(a) refunds of member contributions with interest to members who terminate employment before the effective date of the wind-up and are not entitled to a pension or deferred pension, and
(b) payment of a pre-retirement death benefit to a person who becomes entitled to payment before the effective date of the wind-up.
49(8)A statement given under subsection 64(1) of the Act setting out a person’s entitlement and options under a pension plan on wind-up, in whole or in part, shall contain the following additional information:
(a) if there are insufficient funds in the pension fund to pay the benefits or payments under the plan, a description of any reductions made to the person’s benefit or payment;
(b) if the plan is being wound up in whole, if the pension fund contains surplus and if the surplus is to be distributed, in whole or in part, among the members, former members and any other persons entitled to benefits or payments, a statement of the method of distributing the surplus and, if applicable, the formula used to allocate the surplus among the persons entitled to benefits or payments under the plan; and
(c) the name, address and telephone number of the administrator or an agent of the administrator who can answer any questions concerning the wind-up.
49(9)A person given a statement under subsection 64(1) of the Act who is entitled to elect an option in respect of a benefit or payment under the pension plan and the Act shall do so by delivering a written direction to the administrator within ninety days after receiving the statement.
49(10)An administrator to whom a written direction is delivered under subsection (9) shall comply with the direction within thirty days after the delivery or within thirty days after receiving notice that the Superintendent has approved the wind-up report, whichever occurs later.
49(11)Subject to subsection 50(1), if a defined benefit plan is being wound up, in whole or in part, and the wind-up report has been approved by the Superintendent, the administrator may, before completion of payments into the pension fund by the employer under section 65 of the Act, make the following payments to the persons entitled to benefits or payments:
(a) the total of any additional voluntary contributions, with interest;
(b) the total of any contributions made by a member or former member, with interest; and
(c) the commuted value, determined in accordance with subsection (6), of any pension, deferred pension or ancillary benefit accrued as of the effective date of the wind-up in respect of employment and remuneration before that date in accordance with the provisions of the plan, the Act and this Regulation to the extent that such benefits are funded and after making appropriate adjustments for any payment made under paragraph (b).
49(12)An employer required to pay amounts into a pension fund under section 65 of the Act shall do so within thirty days after the effective date of wind-up or within such longer period as may be approved by the Superintendent.
49(13)Subsection (12) does not apply to payments required to be made by an employer under subsection 65(4) of the Act.
94-78; 2002, c.12, s.32; 2008-10; 2022-63
Distribution where insufficient funds
50(1)If upon wind-up of a defined benefit plan, in whole or in part, insufficient funds are available to pay the pensions and benefits under the plan, the funds that are available shall be allocated in the following manner in order of priority:
(a) to all members and former members or persons entitled to benefits or payments through members or former members, for transfer of or purchase with an amount equal to any additional voluntary contributions made by the member or former member with interest accrued as of the effective date of the wind-up, after deducting any transfer value for such additional voluntary contributions previously transferred in respect of the member or former member,
(b) subject to subsection (2), to all members and former members or persons entitled to benefits or payments through members or former members, for transfer of or purchase with an amount equal to the total of any contributions, other than contributions made under paragraph (a), made by the member or former member, with interest accrued as of the effective date of the wind-up, after deducting any transfer value for such contributions previously transferred in respect of the member or former member, and
(c) to all members and former members or persons entitled to benefits or payments through members or former members, for transfer of or purchase with an amount equal to the commuted value, determined in accordance with subsection 49(6), of the pension or deferred pension to which the person is entitled, after deducting any amount payable under paragraph (b).
50(2)For the purposes of determining the amount allocated to a person who is receiving a pension under paragraph (1)(b), contributions made by a former member allocated to a person who is receiving a pension shall be
(a) if the amount of contributions with interest is known, the total of the contributions made by the former member, with interest, less the total of the periodic amount of pension paid to the person, or
(b) if the amount of contributions with interest is not known
(i) if sixty months or more have elapsed since the commencement of payment of the pension, set at zero, or
(ii) if less than sixty months has elapsed, the difference obtained by deducting the total amount of pension paid to the person from the product of five and the annual amount of pension payable.
50(3)If there are insufficient funds to allocate fully but sufficient funds to allocate partly the amounts provided for under paragraph (1)(a), (b) or (c), as the case may be, the amount to be allocated to each person shall be calculated by multiplying the full amount to which the person would have been entitled by the quotient obtained by dividing the amount of funds available to be allocated to the group under that paragraph by the amount of funds that would be required fully to allocate the amounts to the group under that paragraph.
2005-153
50.1Where a plan is wound-up, in whole or in part, and payments are required to be made by the employer under subsection 65(4) of the Act, assets shall be allocated so that each member, former member or other person entitled to benefits will receive an initial amount equal to the product of
(a) the commuted value of the benefit to which he or she is entitled on the wind-up of the plan, and
(b) the transfer ratio.
2008-10
50.2(1)Within sixty days after the last payment is made under subsection 65(4) of the Act, the administrator of the plan shall prepare and file with the Superintendent an additional report setting out the following information:
(a) the assets and liabilities of the pension plan;
(b) the benefits to be provided under the pension plan to members, former members and other persons;
(c) the methods of allocating and distributing the assets of the pension plan and determining the priorities for payment of benefits;
(d) the benefits previously paid under the pension plan pursuant to section 50.1 to members, former members and other persons;
(e) the benefits remaining to be paid to members, former members and other persons;
(f) the amount of interest to be credited to the amounts referred to in paragraph (e); and
(g) if the pension fund contains a surplus, a statement of the method of distributing the surplus and, if applicable, the formula used to allocate the surplus.
50.2(2)Where a solvency deficiency has been amortized and the report referred to in subsection (1) is approved by the Superintendent, the administrator shall immediately make payments to members, former members and other persons entitled to benefits as follows:
(a) the balance of the benefits that were not previously paid, adjusted for interest between the effective date of the wind-up of the plan and the date of the payment of the balance; and
(b) if the pension fund contains a surplus and the surplus is to be distributed among the members, former members and any other persons entitled to benefits, a share of any funds remaining after the payments are made under paragraph (a).
2008-10
SALES AND TRANSFERS
Definitions
51(1)In this section and in section 52
“asset transfer ratio” means the quotient obtained by dividing the total of the market value of investments held by an employer’s pension plan, any cash balances and any accrued and receivable income items by the sum of the residual liabilities and the transfer liabilities;(indice de transfert des éléments d’actif)
“asset transfer value” means the product obtained by multiplying the transfer liabilities by the lesser of(valeur de transfert des éléments d’actif)
(a) the asset transfer ratio, and
(b) one;
“residual asset value” means the product obtained by multiplying the residual liabilities by the lesser of(valeur résiduelles des éléments d’actif)
(a) the asset transfer ratio, and
(b) one;
“residual liabilities” means the greater of the going concern liabilities and the solvency liabilities of the benefits and payments for which the employer has retained responsibility;(éléments de passif résiduels)
“transfer liabilities” means the greater of the going concern liabilities and the solvency liabilities of the benefits and payments for which the successor employer has assumed responsibility;(éléments de passif de transfert)
“transferred members” means those members, former members and other persons entitled to a benefit or payment under an employer’s pension plan who are affected by the transfer and for whose benefits or payments the successor employer has assumed responsibility, in whole or in part.(participants transférés)
Application for consent to transfer assets to successor employer
51(2)The administrator of an employer’s pension plan seeking consent of the Superintendent to a transfer of assets under section 69 of the Act shall submit to the Superintendent a written application for consent, which shall be accompanied by the prescribed fee and by
(a) a copy of the portion of the purchase and sale agreement and of any amendments to it that relate to the employer’s pension plan and the pension fund, and
(b) subject to subsections (3) and (10), an actuarial valuation report prepared in accordance with section 9 that sets out
(i) the going concern liabilities, solvency liabilities and asset transfer value of the benefits and payments for which the successor employer is assuming responsibility,
(ii) any going concern liabilities and solvency liabilities and the residual asset value of any benefits and payments for which the employer is retaining responsibility,
(iii) if there is a surplus in the pension fund, a description of the proposed treatment and method of payment and the basis for any allocation of the surplus, and
(iv) the amount of and the method of calculating the assets to be transferred to the pension fund of the successor employer’s pension plan.
Actuarial valuation report
51(3)Subject to subsection (10), an actuary preparing an actuarial valuation report under paragraph (2)(b) may include, for the purposes of subparagraph 10(2)(b)(iii) or (b.1)(iii), the net increase in liabilities resulting from
(a) benefit improvements to be granted to the transferred members on the date they become members of the successor employer’s pension plan, and
(b) the difference in going concern liabilities resulting from the difference in the actuarial funding methods or assumptions between the employer’s pension plan as reported in the most recent report filed by the administrator of the employer’s pension plan and the successor employer’s pension plan.
Actuarial valuation report
51(4)Subject to subsection (5), the review date of an actuarial valuation report required under paragraph (2)(b) shall be the effective date of the sale, assignment or other disposal to which the transfer of assets relates.
Actuarial valuation report
51(5)The review date of an actuarial valuation report required under paragraph (2)(b) may be other than the date required under subsection (4) if, in the opinion of the Superintendent, the other date is appropriate in the circumstances.
Actuarial valuation report
51(6)The administrator of an employer’s pension plan who has filed an actuarial valuation report under paragraph (2)(b) shall ensure that copies of the report are provided to the employer, if applicable, and to the successor employer and the employer and successor employer to whom such copies are provided shall make them available, exclusive of confidential information relating to the service, benefits, salary and other personal matters concerning specific persons who have not given consent, for inspection by all members, former members and other persons who are entitled to benefits or payments under the plan.
Notice of transfer
51(7)Before a proposed transfer of assets takes place under section 69 of the Act and not more than ten days after receiving notice that the Superintendent consents to the transfer, the administrator of the employer’s pension plan shall mail a written notice of the proposed transfer in accordance with subsection (8) to
(a) transferred members, and
(b) any trade union that represents the members of the plan and that is a party to a collective agreement filed with the Superintendent under subsection 10(2) of the Act.
Notice of transfer
51(8)A notice given under subsection (7) shall contain the following:
(a) the name and provincial registration number of the employer’s pension plan;
(b) the name and provincial registration number of the successor employer’s pension plan;
(c) subject to subsection (10) and paragraph 52(6)(a), the review date of the actuarial valuation report filed with the application under paragraph (2)(b);
(d) subject to subsection (10) and paragraph 52(6)(a), notice that copies of the report filed under paragraph (2)(b), exclusive of confidential information relating to the service, benefits, salary and other personal matters concerning specific persons who have not given consent, are available for inspection at the office of the employer or of the successor employer;
(e) subject to subsection (10) and paragraph 52(6)(a), advice concerning the means of obtaining a copy of the report filed under paragraph (2)(b), exclusive of confidential information; and
(f) a description of the benefits and payments under the plan for which the successor employer proposes to assume responsibility and a description of the benefits and payments under the plan for which the employer has retained responsibility.
Notice of transfer
51(9)An administrator who has given written notice as required under subsection (7) shall file with the Superintendent a certified copy of the notice and a written statement indicating that the administrator has complied with subsection (7) and indicating the date on which the mailing of the notice was completed.
Exemptions where certificate of actuary provided
51(10)Paragraph (2)(b), subsection (3) and paragraphs (8)(c), (d) and (e) do not apply if the administrator of the successor employer’s pension plan provides the administrator of the employer’s pension plan with the certificate of an actuary, certifying in writing that
(a) the amount of the liabilities to be assumed by the successor employer in respect of the transferred members is less than the total of all contributions that will be incurred over a period of two years following the date of the certificate respecting the normal cost of the successor employer’s pension plan, and
(b) the information contained in the certificate is, to the best of the actuary’s knowledge and belief, true and correct.
2020-51
Value of assets to be transferred
52(1)Subject to subsections (2) and (3), if a transfer of assets is to take place under section 69 of the Act and the successor employer is to assume responsibility, in whole or in part, for the benefits and payments of the employer’s pension plan, assets having a market value of not less than the asset transfer value set out in an actuarial valuation report under subparagraph 51(2)(b)(i) as of the review date of the report shall be transferred from the employer’s pension plan to the successor employer’s pension plan.
Value of assets to be transferred
52(2)No assets shall be transferred under subsection (1) if, after the transfer, the market value of the assets remaining in the employer’s pension plan as of the review date of the actuarial valuation report filed under paragraph 51(2)(b) would be less than the residual asset value set out in the report under subparagraph 51(2)(b)(ii).
Transfer where assets represent surplus
52(3)If it is clear that members, former members or other persons are entitled to any surplus under the wind-up provisions of an employer’s pension plan and if assets representing a surplus, in whole or in part, are to be transferred to a successor employer’s pension plan,
(a) the amount of the surplus shall be allocated, before the transfer of any funds, to improve the accrued benefits of any members, former members and other persons entitled to benefits or payments under the employer’s pension plan, and section 5 applies, or
(b) the successor employer shall maintain the transferred assets and liabilities as separate and distinct from any other assets and any liabilities in the successor employer’s pension plan.
Transfer where assets represent surplus
52(4)If, before transferring any assets of an employer’s pension fund to the successor employer’s pension fund, it is unclear whether the employer or the members, former members and other persons are entitled to assets representing a surplus under the wind-up provisions of the employer’s pension plan, the administrator of the employer’s pension plan may, without prejudicing the future determination of entitlement to the surplus,
(a) retain the assets respecting the surplus in the employer’s pension plan, in which case any entitlement of the transferred members shall be unaffected by reason of the transfer, or
(b) transfer the assets to which transferred members may be entitled in accordance with paragraph 52(3)(b) on an interim basis until the requirements of subsection (5) are met.
Transfer where assets represent surplus
52(5)If the quotient obtained by dividing the value of the assets transferred to the successor employer’s pension plan by the value of the assets retained in the employer’s pension plan exceeds the quotient obtained by dividing the value of the transfer liabilities by the value of the residual liabilities, the transfer, for the purposes of this section, shall be deemed to be a payment of surplus and is subject to sections 47 and 48.
Transfer where assets kept in separate plan of the successor employer
52(6)If the successor employer assumes responsibility in whole for the accrued pension benefits under the employer’s pension plan and maintains the assets and liabilities transferred from the employer’s pension plan in a pension plan that is separate and distinct from any other pension plan that is sponsored by the successor employer
(a) paragraphs 51(2)(b) and 51(8)(c), (d) and (e) do not apply to the transfer, and
(b) the successor employer shall make all payments required to be made by the employer in accordance with the actuarial valuation report most recently filed with the Superintendent by the administrator of the employer’s pension plan.
NEW PLANS
Request for consent to transfer to new plan
53An administrator seeking consent of the Superintendent to a transfer of assets under section 70 of the Act shall submit to the Superintendent a written request for consent, accompanied by the prescribed fee.
Transfer from a defined benefit plan to a defined contribution plan
54(1)The Superintendent shall refuse to consent to a transfer of assets under section 70 of the Act from an original pension plan that is a defined benefit plan to a new pension plan that is a defined contribution plan if the assets to be transferred in relation to the members of the original plan would be less than the total amount of all amounts transferable under subsection (2).
54(2)The amounts transferrable in relation to a member of an original pension plan that are deemed to be contributions made by or on behalf of the member under a new pension plan under section 70 of the Act, with interest, shall not be less than the greatest of
(a) the commuted value of the pension benefit determined in accordance with subsection 19(4),
(b) the going concern liabilities of the accrued pension benefit, and
(c) the accrued solvency liabilities of the accrued pension benefit to and including the date of the wind-up of the original pension plan.
54(3)Where the application of paragraphs (2)(b) and (c) would produce a loss of benefits as a result of a conflict with the Income Tax Act (Canada), the Superintendent may request the administrator of a pension plan to amend the plan to provide for the indexation, in whole or in part, of the accrued pension benefits for the purposes of subsections (1) and (2).
94-78
RECORDS
Duties of administrator relating to records
55(1)Subject to subsection (2), the administrator of a pension plan shall keep all documents and records necessary to establish and substantiate the nature and amount of any benefit that has accrued or any payment that is due or being made to a member, former member or other person entitled under the plan.
Duties of administrator relating to records
55(1.1)The administrator shall keep the records referred to in subsection (1) at a safe location and in a durable form.
Duties of administrator relating to records
55(2)The administrator shall retain documents and records referred to in subsection (1) for a period of three years after
(a) if the documents or records relate to a person who received a benefit that was previously purchased from or transferred to a financial institution authorized under this Regulation to offer retirement savings arrangements or life or deferred life annuities, the date of the purchase or transfer,
(b) if the documents or records relate to a person who received a payment, the date when the payment
(i) ceased to be paid, if it was a continuing payment, or
(ii) was paid, in all other cases, or
(c) if the records do not relate to a person who received a benefit, the date when they cease to be operative.
Duties of administrator relating to records
55(3)If more than one period applies to documents or records by reason of the operation of subsection (2), the administrator shall retain the documents or records for the longer or longest of the applicable periods.
Application to financial institutions
55(4)Subsections (1), (1.1), (2) and (3) apply with the necessary modifications to a financial institution authorized under this Regulation to offer retirement savings arrangements or life or deferred life annuities.
2016, c.36, s.12
GOVERNANCE OF PENSION PLANS
2020-51
Governance policy of pension plan
2020-51
55.1(1)The administrator of a pension plan shall establish, adopt and follow a written governance policy for the plan, which shall, unless the Superintendent authorizes otherwise,
(a) set out the structures and processes for overseeing, managing and administering the plan;
(b) explain what those structures and processes are intended to achieve;
(c) identify all participants who have authority to make decisions in respect of those structures and processes, and describe the roles, responsibilities and accountabilities of those participants;
(d) set performance measures and establish a process for monitoring, against those performance measures, the performance of each of the participants identified in paragraph (c);
(e) establish procedures to ensure that the administrator and, if applicable, any other participants in those structures and processes have access to relevant, timely and accurate information;
(f) establish a code of conduct for the administrator and a procedure to disclose and address conflicts of interest of the administrator;
(g) establish an ongoing process to identify the educational requirements and skills necessary for the administrator to perform the administrator’s duties in relation to the plan;
(h) identify the material risks that apply to the plan and establish internal controls to manage those risks; and
(i) establish a process for the resolution of disputes involving members of the plan or other persons who are entitled to benefits under the plan.
55.1(2)The administrator shall ensure that the plan is administered in accordance with the governance policy established under subsection (1).
55.1(3)On request, the administrator shall submit the governance policy to the Superintendent.
2020-51
FEES
Fees
56(1)The fees payable under the Act and this Regulation are as follows:
(a)subject to subsection (2), for an application for registration of a pension plan under subsection 10(2) of the Act, $5.00 per member of the plan employed in New Brunswick or in a designated jurisdiction with which the Minister has entered into an agreement under paragraph 92(1)(a) of the Act, but not less than $100.00 and not more than $10,000.00;
 
(b)subject to subsection (2), for an application for registration of an amendment to a pension plan under subsection 11(2) of the Act, per application..............
$100.00;
 
(c)subject to subsection (2), for filing an annual information return in respect of a pension plan under subsection 15(1) of the Act, $5.00 per member of the plan employed in New Brunswick or in a designated jurisdiction with which the Minister has entered into an agreement under paragraph 92(1)(a) of the Act, but not less than $100.00 and not more than $10,000.00;
 
(d)for a copy of a document under subsection 28(2) of the Act, $0.50 per page, but not less than $5.00 for a non-certified copy and $10.00 for a certified copy;
 
(e)for application to register a standard contract under subsection 23(3)..............
$500.00;
 
(e.1)for application to register as a trustee under subsection 21(6) or 22(11)..............
$500.00;
 
(f)for application for payment of surplus under subsection 59(4) of the Act, as required under subsection 48(5)..............
$500.00;
 
(g)subject to subsection (2), for filing a wind-up report under subsection 62(1) of the Act, as required under subsection 49(4), $5.00 per member of the plan employed in New Brunswick or in a designated jurisdiction with which the Minister has entered into an agreement under paragraph 92(1)(a) of the Act, but not less than $100.00 and not more than $10,000.00;
 
(h)for an application for the Superintendent’s consent to a transfer of assets under section 69 of the Act, as required under subsection 51(2), $5.00 per member of the plan employed in New Brunswick or in a designated jurisdiction with which the Minister has entered into an agreement under paragraph 92(1)(a) of the Act, but not less than $100.00 and not more than $10,000.00; and
 
(i)for a request for the Superintendent’s consent to a transfer of assets under section 70 of the Act, as required under section 53, $5.00 per member of the plan employed in New Brunswick or in a designated jurisdiction with which the Minister has entered into an agreement under paragraph 92(1)(a) of the Act, but not less than $100.00 and not more than $10,000.00.
56(2)If an application referred to in paragraph (1)(a) or (b), a return referred to in paragraph (1)(c) or a wind-up report referred to in paragraph (1)(g) is made or filed after the applicable deadline provided under the Act or this Regulation, the fee payable shall be increased by twenty per cent and interest shall accrue and be payable at the rate of one per cent per month, compounded monthly, commencing on the first day of the second calendar month following the month in which the deadline occurs and continuing until the day on which the application, return or report is made or filed, as the case may be.
2000-1; 2003, c.10, s.2
Commencement
57This Regulation comes into force on December 31, 1991.
SCHEDULE A
LETTERS OF CREDIT
LETTER OF CREDIT
Letters of credit – criteria
1A letter of credit provided under section 42.001 of this Regulation must be an irrevocable and unconditional standby letter of credit made in accordance with the rules set out in International Standby Practices ISP98, International Chamber of Commerce Publication No. 590, and must meet the following requirements:
(a) it must be made payable to the prescribed trustee, in trust for the pension plan;
(b) it must be payable in Canadian currency;
(c) it must make the issuer contractually liable to pay out money under its terms if payment is demanded under it by the prescribed trustee;
(d) it must be subject to a trust agreement described in section 4 of this Schedule between the issuer, the administrator and the prescribed trustee.
ISSUERS
Issuers
2(1)An issuer must be a member of the Canadian Payments Association and must be one of the following:
(a) a bank as defined in section 2 of the Bank Act (Canada);
(b) a credit union as defined in the Credit Unions Act;
(c) an extra-provincial credit union as defined in the Credit Unions Act;
(d) a cooperative credit society to which the Cooperative Credit Associations Act (Canada) applies.
2(2)The issuer cannot be the prescribed employer or an affiliate, as defined in the Business Corporations Act, of the prescribed employer.
2(3)When the letter of credit is issued or renewed, the issuer must have a credit rating, given by a credit rating agency, that is at least equal to one of the following ratings:
(a) A, from Dominion Bond Rating Service Limited;
(b) A, from Fitch Ratings;
(c) A2, from Moody’s Investors Service;
(d) A, from Standard & Poor’s Ratings Services.
TERMS
Matters that must be included in a letter of credit
3The letter of credit shall provide for the following matters:
(a) Effective date: The date on which the letter of credit becomes effective shall be specified, and it cannot be later than the date on which the first installment of the special payments to which the letter of credit relates is due.
(b) Expiry date: The date on which the letter of credit expires shall be specified, and it cannot be later than the first anniversary of the date on which the letter of credit takes effect.
(c) Demand for payment: When the prescribed trustee demands payment under the letter of credit, the issuer is required to promptly pay the face amount of the letter of credit without further inquiry.
(d) Assignment: The letter of credit cannot be assigned except by the issuer to another issuer.
(e) Effect of assignment: If the issuer assigns the letter of credit without the consent of the prescribed employer, the issuer who assigned it remains obligated to pay, on demand, an amount demanded under the letter of credit by the prescribed trustee.
(f) Amendment: The letter of credit cannot be amended except as follows:
(i) to reflect a change in the name of the pension plan, the name of the prescribed employer or the name of the administrator;
(ii) to reflect a change in the prescribed trustee;
(iii) to reflect the assignment of the letter of credit to another issuer;
(iv) to decrease the amount of the letter of credit in the circumstances permitted under this Regulation;
(v) to increase the amount of the letter of credit when it is renewed.
(g) Notice of amendment: The issuer is required to give written notice of any amendment to the prescribed employer within five days after the amendment is made.
(h) Effect of change in issuer’s status: If the issuer ceases to satisfy any of the requirements set out in section 2 of this Schedule while the letter of credit is in effect, the issuer remains obligated to pay, on demand, an amount demanded under the letter of credit by the prescribed trustee.
(i) Effect of prescribed employer’s insolvency, liquidation or bankruptcy: The insolvency, liquidation or bankruptcy of the prescribed employer has no effect on the rights or obligations of the issuer or the rights or obligations of the prescribed trustee.
(j) Notice of non-renewal: If the issuer does not intend to renew the letter of credit, the issuer is required to notify the prescribed trustee and the prescribed employer at least 60 days before the letter of credit expires.
TRUST AGREEMENT
Matters that must be included in trust agreement
4(1)The trust agreement to which a letter of credit is subject shall provide for the following matters:
(a) that the prescribed trustee holds the letter of credit in trust for the pension plan;
(b) that the prescribed trustee is required to demand payment of the amount of the letter of credit if the administrator notifies the prescribed trustee with reasonable notice that the letter of credit does not satisfy the requirements of this Regulation or the requirements of the Income Tax Act (Canada);
(c) that the prescribed trustee is required to demand payment of the amount of the letter of credit if the administrator or the prescribed employer notifies the prescribed trustee of any of the following:
(i) that the prescribed employer intends to wind up the pension plan under subsection 60(1) of the Act;
(ii) that the Superintendent has issued an order under subsection 61(1) of the Act requiring the wind-up of the pension plan;
(iii) that the prescribed employer is subject to bankruptcy proceedings under the Bankruptcy and Insolvency Act (Canada);
(iv) that an application or petition has been filed under the Winding-up and Restructuring Act (Canada) by or against the prescribed employer;
(d) that, if the prescribed trustee receives notice from a person or entity other than the administrator or the prescribed employer that a circumstance described in paragraph (c) exists, the prescribed trustee is required to notify the administrator, the prescribed employer and the Superintendent;
(e) that 31 days after giving the notice referred to in paragraph (d), the prescribed trustee is required to demand payment of the amount of the letter of credit unless the administrator has notified the prescribed trustee that the circumstance described in paragraph (c) does not exist;
(f) that 14 days before the letter of credit expires, the prescribed trustee is required to demand payment of the amount of the letter of credit unless one or more of the following events has occurred:
(i) the prescribed employer has paid into the pension fund an amount equal to the amount of the letter of credit;
(ii) the letter of credit has been renewed in an amount at least equal to the original letter of credit, and the prescribed trustee has received the renewed letter of credit or notice of the renewal;
(iii) the letter of credit is being replaced in an amount at least equal to the original letter of credit, and the prescribed trustee has received the replacement letter of credit;
(iv) the administrator has notified the prescribed trustee that the amount of the letter of credit is reduced and the prescribed trustee has received the following documents:
(A) a replacement letter of credit in the reduced amount or notice of the renewal of the current letter of credit in the reduced amount;
(B) notice that the prescribed employer has paid into the pension fund the amount by which the letter of credit is reduced or notice that no such payment is required because the conditions described in subsection (2) are satisfied;
(g) that, if the prescribed trustee demands payment of the amount of the letter of credit, the prescribed trustee is required to promptly notify the administrator, the prescribed employer and the Superintendent;
(h) that, if the issuer does not pay the amount of the letter of credit on the prescribed trustee’s demand, the prescribed trustee is required to promptly notify the administrator, the prescribed employer and the Superintendent;
(i) that the administrator is required to give a copy of the trust agreement to the prescribed employer and the Superintendent within ten days after it is entered into or is amended, as the case may be.
4(2) The conditions referred to in clause (1)(f)(iv)(B) are satisfied if the following is true on the date of the most recently filed or submitted actuarial valuation report:
C > (A – B)
where
A =for an actuarial valuation report with a review date
abefore December 31, 2019, the solvency liabilities of the pension plan, or
bon or after December 31, 2019, 85% of the solvency liabilities of the pension plan;
B = the sum of the solvency assets and the amount, which may be positive or negative, by which the value of the solvency assets is adjusted as a result of applying an averaging method that stabilizes short-term fluctuations in the market value of the pension plan assets, calculated over a period of no longer than five years;
C = the present value of the total amount of all letters of credit held in trust for the pension plan, after the reduction in the amount of the letter of credit.
4(3)The value of “C” in the formula in subsection (2) shall be determined using the same interest rates as those used to determine the amount of the solvency liabilities set out in the actuarial valuation report.
2020-51; 2023, c.2, s.197
Form 1
Repealed: 2015-59
2015-59
Form 2
Repealed: 2015-59
2015-59
Form 3
Repealed: 2015-59
2015-59
Form 3.01
Repealed: 2015-59
2015-59
Form 3.02
Repealed: 2015-59
2015-59
Form 3.1
Repealed: 2015-59
2015-59
Form 3.2
Repealed: 2015-59
2015-59
Form 3.3
Repealed: 2015-59
2015-59
Form 3.4
Repealed: 2015-59
2015-59
Form 3.5
Repealed: 2015-59
2015-59
Form 3.6
Repealed: 2015-59
2015-59
Form 3.7
Repealed: 2015-59
2015-59
Form 4
Repealed: 2015-59
2015-59
Form 4.1
Repealed: 2015-59
2015-59
Form 4.2
Repealed: 2015-59
2015-59
Form 5
Repealed: 2015-59
2015-59
Form 6
Repealed: 2015-59
2015-59
Form 7
Repealed: 2015-59
2015-59
Form 8
Repealed: 2015-59
2015-59
N.B. This Regulation is consolidated to January 1, 2024.