Budget Implementation Act, 2023, No. 1 (S.C. 2023, c. 26)
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Assented to 2023-06-22
PART 4Various Measures (continued)
DIVISION 2Private Sector Pension Plans (continued)
2012, c. 16Pooled Registered Pension Plans Act (continued)
160 Section 3 of the Act is replaced by the following:
Marginal note:Purpose
3 The purpose of this Act is to provide a legal framework for the establishment and administration of a type of pension plan that is accessible to employees and self-employed persons and that pools funds to achieve lower costs in relation to investment management and plan administration.
161 Section 4 of the Act is replaced by the following:
Marginal note:Application of Act
4 This Act applies in respect of a member of a pooled registered pension plan who
(a) is employed, other than in one of the territories, in included employment by an employer that participates in the plan;
(b) is employed in included employment in a territory or is a self-employed person in a territory; or
(c) is part of a prescribed class of members.
162 Section 17 of the Act is replaced by the following:
Marginal note:Records
17 An administrator of a pooled registered pension plan must keep records that are sufficient to allow a member’s share of the assets of the plan, as well as a member’s variable life payments and variable life payment credit, to be determined.
163 Subsections 22(4) and (5) of the Act are replaced by the following:
Marginal note:Manner of investing
(4) The administrator must invest the funds in members’ accounts and in a variable life payment fund, and must do so in a manner that a reasonable and prudent person would apply in respect of a portfolio of investments appropriate for retirement savings.
Marginal note:Investment manager
(5) The administrator is entitled to engage the services of any investment manager it chooses for the purposes of investing the funds in members’ accounts or in a variable life payment fund.
164 Subsection 23(1) of the Act is replaced by the following:
Marginal note:Investment choices
23 (1) A pooled registered pension plan may permit a member to make investment choices with respect to funds in their account from among the investment options offered by the administrator.
165 Section 25 of the Act is replaced by the following:
Marginal note:Prohibition — investment choices
25 The administrator must not change an investment choice made by a member under section 23 except on the request of the member or in the circumstances specified in the regulations.
166 (1) Subsection 43(1) of the Act is replaced by the following:
Marginal note:Transfer of assets to new plan
43 (1) An employer that provides a pooled registered pension plan to a class of employees and enters into a contract with an administrator to provide a new pooled registered pension plan to that class must cause the assets of the former plan, other than any assets in a variable life payment fund, to be transferred to the new plan and must provide the notification referred to in subsection 41(2) to the employees in that class.
(2) Subsection 43(3) of the Act is replaced by the following:
Marginal note:Costs
(3) The employer is responsible for all of the costs in relation to the transfer of assets under subsection (1) from one pooled registered pension plan to another.
167 Section 44 of the Act is replaced by the following:
Marginal note:Termination of membership
44 A member of a pooled registered pension plan, other than one who has become a member under section 39 or 40 or who is entitled to receive variable life payments under the plan, may terminate their membership in the plan by notifying the administrator.
168 (1) Paragraph 47(1)(a) of the Act is replaced by the following:
(a) the funds in a member’s account with the plan and a member’s variable life payments, as well as any interest or right in those funds or payments, are not capable of being transferred, charged, attached, anticipated or given as security and that any transaction appearing to do so is void or, in Quebec, null;
(2) Paragraphs 47(1)(c) and (d) of the Act are replaced by the following:
(c) a member is not permitted to withdraw the funds in their account or in a variable life payment fund;
(d) an administrator is not permitted to withdraw the funds from a member’s account or from a variable life payment fund; and
(e) a member’s variable life payments, as well as an interest or right in those payments, are not capable of being surrendered or, subject to section 51.6 and subsection 62(12), commuted.
169 The Act is amended by adding the following after section 51:
Variable Life Payments
Marginal note:Fund and payments
51.1 Subject to the regulations, a pooled registered pension plan may
(a) provide for the establishment, as part of the plan, of a variable life payment fund from which variable life payments are to be paid; and
(b) provide that a member who has reached the prescribed age fixed for the purposes of this paragraph may, in order to receive variable life payments, elect to transfer any funds in their account to the variable life payment fund.
Marginal note:Conditions on election
51.2 A member referred to in paragraph 51.1(b) may elect to transfer funds to the variable life payment fund only if the prescribed conditions are met.
Marginal note:No accounts in fund
51.3 A variable life payment fund does not contain individual accounts for members and, for greater certainty, a reference in this Act to a member’s account is not to be construed as referring to funds held within a variable life payment fund.
Marginal note:Transfer from variable life payment fund
51.4 Subject to section 51.6 and subsection 62(12), the administrator may transfer or permit the transfer of any part of the assets of a variable life payment fund to any other pension plan, including another pooled registered pension plan or a pension plan not under federal legislative authority, only with the Superintendent’s permission.
Marginal note:Termination
51.5 (1) This section applies with respect to the termination of a variable life payment fund in the case where the pooled registered pension plan is not being terminated.
Marginal note:Declaration by Superintendent
(2) In the prescribed circumstances, the Superintendent may declare a variable life payment fund to be terminated as of the date that the Superintendent considers appropriate.
Marginal note:Notification — employers and members
(3) An administrator must, not less than 60 and not more than 180 days before the day on which it terminates a variable life payment fund, provide written notification of the termination to each employer that participates in the plan, each member of the plan and the spouse or common-law partner of each member. The notice must specify the date of the termination.
Marginal note:Non-application
(4) Subsection (3) does not apply with respect to a spouse or common-law partner of a person who is entitled to receive variable life payments
(a) as a result of the person being a survivor of a deceased member; or
(b) under section 53 as the result of divorce, annulment, separation or breakdown of a common-law partnership.
Marginal note:Notification — Superintendent
(5) An administrator must, not less than 60 and not more than 180 days before the day on which it terminates a variable life payment fund, notify the Superintendent of the termination. The notice must specify the date of the termination and be in the form and manner directed by the Superintendent.
Marginal note:Termination report
(6) On the termination of a variable life payment fund, the administrator must file with the Superintendent, in the form and manner that the Superintendent may direct, a termination report that contains the prescribed information and that is prepared by a person having the prescribed qualifications.
Marginal note:Approval of termination report
(7) Assets of the variable life payment fund must not be used or transferred for any purpose until the Superintendent has approved the termination report, except that the administrator of the plan may make variable life payments, as they fall due, to the members entitled to receive them.
Marginal note:Transfer or purchase on termination
51.6 On the termination of a variable life payment fund under section 51.5, a member who was receiving variable life payments from the fund is entitled to
(a) transfer, for the purpose of making an election to receive variable payments under section 48, their variable life payment credit to an account with the pooled registered pension plan, if the plan provides for such an election;
(b) transfer their variable life payment credit to another pooled registered pension plan or another pension plan, if that other plan permits;
(c) transfer their variable life payment credit to a retirement savings plan of the prescribed kind for the member; or
(d) use their variable life payment credit to purchase an immediate or deferred life annuity of the prescribed kind for the member.
Marginal note:Superintendent may direct winding-up
51.7 If a variable life payment fund has been terminated under section 51.5 and the Superintendent is of the opinion that no action or insufficient action has been taken to wind up the fund, the Superintendent may direct the administrator to distribute the assets of the fund, and may direct that any expenses incurred in connection with that distribution be paid out of the fund, and the administrator must comply with any such direction without delay.
170 (1) Subsection 53(2) of the Act is replaced by the following:
Marginal note:Funds in member’s account
(2) Subject to subsection (3), the funds in the account of a member of a pooled registered pension plan — and, subject to subsection (4.1) and the regulations, a member’s variable life payments and variable life payment credit — are, on divorce, annulment, separation or breakdown of common-law partnership, subject to provincial law relating to the distribution of property.
Marginal note:Non-application of Act
(2.1) A member’s variable life payments and variable life payment credit that are subject to provincial law relating to the distribution of property under this section are not subject to the provisions of this Act relating to the valuation or distribution of variable life payments and variable life payment credits, as the case may be.
(2) Section 53 of the Act is amended by adding the following after subsection (4):
Marginal note:Power to assign
(4.1) A member of a pooled registered pension plan may assign all or part of their variable life payments or variable life payment credit to their spouse, former spouse, common-law partner or former common-law partner, effective as of divorce, annulment, separation or breakdown of the common-law partnership, as the case may be. However, a subsequent spouse or common-law partner of the assignee is not entitled to any variable life payments or variable life payment credit under the plan in respect of that assigned portion.
(3) The portion of subsection 53(5) of the Act before paragraph (b) is replaced by the following:
Marginal note:Duty of administrator
(5) On divorce, annulment, separation or breakdown of a common-law partnership, if a court order or an agreement between the parties provides for the distribution of property between a member and their spouse, former spouse or former common-law partner, the administrator must determine and administer the member’s account, their variable life payments and their variable life payment credit in the prescribed manner and in accordance with the court order or the agreement, on receipt of
(a) a written request from either the member or their spouse, former spouse or former common-law partner that all or part of the funds in the member’s account, of their variable life payments or of their variable life payment credit be distributed or administered in accordance with the court order or the agreement; and
(4) The portion of subsection 53(5) of the English version of the Act after paragraph (b) is replaced by the following:
However, in the case of a court order, the administrator must not administer the member’s account, their variable life payments or their variable life payment credit in accordance with the court order until all appeals from that order have been finally determined or the time for appealing has expired.
171 Subsection 54(1) of the Act is amended by adding the following after paragraph (b):
(b.1) a member who, while receiving variable life payments under the plan, retains an account with the plan and who notifies the administrator of their intention to transfer or use the funds in their account;
- Date modified: