Budget Implementation Act, 2019, No. 1 (S.C. 2019, c. 29)
- HTMLFull Document: Budget Implementation Act, 2019, No. 1 (Accessibility Buttons available) |
- PDFFull Document: Budget Implementation Act, 2019, No. 1 [3167 KB]
Assented to 2019-06-21
PART 4Various Measures (continued)
DIVISION 5Enhancing Retirement Security (continued)
R.S., c. C-44; 1994, c. 24, s. 1(F)Canada Business Corporations Act (continued)
144 Subsection 261(1) of the Act is amended by striking out “and” at the end of paragraph (h) and by adding the following after paragraph (i):
R.S., c. 32 (2nd Supp.)Pension Benefits Standards Act, 1985
145 (1) The definition cessation of membership in subsection 2(1) of the Pension Benefits Standards Act, 1985 is replaced by the following:
- cessation of membership
cessation of membership in a pension plan has the meaning assigned by subsections (2) and (2.1); (fin de participation)
Marginal note:2010, c. 12, s. 1786(5)(F)
(2) Paragraph (b) of the definition former member in subsection 2(1) of the French version of the Act is replaced by the following:
(b) à l’article 9.2 et à l’alinéa 28(1)b.1), du participant dont la participation a pris fin ou qui a pris sa retraite, à l’exception de celui qui, avant la cessation totale du régime, s’est vu acheter une prestation viagère qui satisfait, en application de l’article 17.2, à l’ensemble des obligations prévues par le régime relativement à ses prestations ou relativement à toute autre prestation ou toute option visées à l’alinéa 17b), a, au titre de l’article 26, transféré ses droits à pension ou utilisé ceux-ci pour acheter une prestation viagère, ou a vu ses prestations de pension transférées à un autre régime de pension;
Marginal note:2010, c. 12, s. 1786(3)(E)
(3) Subparagraph (b)(i) of the definition former member in subsection 2(1) of the English version of the Act is replaced by the following:
(4) Section 2 of the Act is amended by adding the following after subsection (2):
Marginal note:For greater certainty
(2.1) For greater certainty, a member of a pension plan ceases membership in the plan when the whole or part of that plan is terminated.
146 The Act is amended by adding the following after section 17:
Entitlement Not Affected
Marginal note:For greater certainty
17.1 For greater certainty, a pension plan is not to provide that a pension benefit, or any other benefit or option referred to in paragraph 17(b), or a member’s entitlement to such a pension benefit or option, is affected when a plan is terminated.
147 The Act is amended by adding the following after section 17.1:
Marginal note:Life annuity in lieu of pension benefit
17.2 (1) The purchase of an immediate or deferred life annuity by the administrator of a pension plan for a former member or survivor satisfies an obligation under the plan to provide a pension benefit arising from a defined benefit provision — as well as, in the case of a deferred life annuity, an obligation under the pension plan to provide any other benefit or option described in paragraph 17(b) that relates to that pension benefit — to the former member or survivor if
(a) the plan authorizes the purchase of the life annuity in satisfaction of that obligation;
(b) the life annuity is of the prescribed kind;
(c) the life annuity provides the former member or survivor with payments that
(i) in the case of an immediate life annuity, are in the same amount and form as the pension benefit to which the former member or survivor would otherwise be entitled under the terms of the pension plan that are in place on the day of the purchase, or
(ii) in the case of a deferred life annuity, are in the same amount as the pension benefit, and the related benefit or option described in paragraph 17(b), to which the former member or survivor would otherwise be entitled under the terms of the pension plan that are in place on the day of the purchase; and
(d) the administrator complies with the prescribed notice requirements.
Marginal note:Partial satisfaction of the obligation
(2) Despite paragraph (1)(c), the administrator may purchase a life annuity that provides the former member or survivor with payments that are in an amount that is the same as a part of the pension benefit or, in the case of a deferred life annuity, as a part of the pension benefit and related benefit or option. However, that purchase satisfies the obligation under the plan only with respect to that part.
Marginal note:Superintendent’s approval
(3) The administrator shall obtain the Superintendent’s approval of the person from whom the administrator proposes to purchase the life annuity if that person is not a life company as defined in subsection 2(1) of the Insurance Companies Act.
Marginal note:Application of section 26.1
(4) For greater certainty, section 26.1 applies to the purchase of a life annuity under this section.
Marginal note:2010, c. 12, s. 1808
148 Subsection 21(1) of the Act is replaced by the following:
Marginal note:Minimum pension benefit
21 (1) Subject to paragraph 26(3)(b), if a member of a defined benefit plan retires, ceases to be a member or dies, the pension benefit in respect of the member is to be increased by the amount that can be provided by the amount of the aggregate of the member’s contributions, other than additional voluntary contributions, together with interest in accordance with section 19, that exceeds 50 per cent of the pension benefit credit in respect of the member’s membership in the plan.
149 Section 4.2, paragraph 67(1)(b.3) and subsections 101(1), (2.01), (2.1), (3.1) and (5.1) of the Bankruptcy and Insolvency Act, as enacted by sections 133 to 135, apply only in respect of proceedings that are commenced under that Act on or after the day on which that section, subsection or paragraph, as the case may be, comes into force.
150 Section 11.001, subsections 11.02(1) and 11.2(5) and sections 11.9 and 18.6 of the Companies’ Creditors Arrangement Act, as enacted by sections 136 to 140, apply only in respect of proceedings that are commenced under that Act on or after the day on which that section or subsection, as the case may be, comes into force.
Marginal note:2018, c. 8
151 (1) In this section, other Act means An Act to amend the Canada Business Corporations Act, the Canada Cooperatives Act, the Canada Not-for-profit Corporations Act and the Competition Act, chapter 8 of the Statutes of Canada, 2018.
(2) If subsection 143(1) of this Act comes into force before section 24 of the other Act, then that section 24 is repealed.
(3) If section 24 of the other Act comes into force before subsection 143(1) of this Act, then that subsection 143(1) is replaced by the following:
143 (1) Section 172.1 of the Act is replaced by the following:
Marginal note:Diversity in corporations
172.1 The directors of a prescribed corporation shall place before the shareholders, at every annual meeting, the prescribed information respecting diversity among the directors and “members of senior management” as defined by regulation.
Marginal note:Information to shareholders
172.2 (1) The corporation shall provide the information referred to in section 172.1 to each shareholder, except to a shareholder who has informed the corporation in writing that they do not want to receive that information, by sending the information along with the notice referred to in subsection 135(1) or by making the information available along with a proxy circular referred to in subsection 150(1).
Marginal note:Information to Director
(2) The corporation shall concurrently send the information referred to in section 172.1 to the Director.
(4) If section 24 of the other Act comes into force on the same day as subsection 143(1) of this Act, then that section 24 is deemed never to have come into force and is repealed.
- Date modified: