Public Sector Pension Investment Board Act (S.C. 1999, c. 34)

Short Title

Marginal note:Short title

1 This Act may be cited as the Public Sector Pension Investment Board Act.

Interpretation

Marginal note:Definitions

2 The definitions in this section apply in this Act.

Board

Board means the Public Sector Pension Investment Board established by section 3. (Office)

by-law

by-law means a by-law of the Board. (Version anglaise seulement)

entity

entity means a body corporate, a trust, a partnership, an unincorporated association or organization, Her Majesty in right of Canada or of a province or an agency of Her Majesty in right of Canada or of a province and the government of a foreign country or any political subdivision or agency of the government of a foreign country. (entité)

fund

fund means

• (a) the Canadian Forces Pension Fund or the Canadian Forces Superannuation Investment Fund within the meaning of the Canadian Forces Superannuation Act, or, if regulations are made under section 59.1 of that Act, a fund established under the regulations;

• (b) the Public Service Pension Fund or the Public Service Superannuation Investment Fund, within the meaning of the Public Service Superannuation Act; or

• (c) the Royal Canadian Mounted Police Pension Fund or the Royal Canadian Mounted Police Superannuation Investment Fund, within the meaning of the Royal Canadian Mounted Police Superannuation Act. (fonds)

Minister

Minister means the President of the Treasury Board. (ministre)

prescribed

prescribed means prescribed by regulation. (Version anglaise seulement)

subsidiary

subsidiary means a corporation that is wholly owned by the Board directly or indirectly through any number of subsidiaries each of which is wholly owned directly or indirectly by the Board. (filiale)

Constitution of the Board

Marginal note:Board established

• 3 (1) There is established a body corporate to be known as the Public Sector Pension Investment Board.

• Marginal note:Not agent of Her Majesty

  (2) The Board is not an agent of Her Majesty.

• Marginal note:Not part of federal public administration

  (3) Directors, officers, employees, and agents and mandataries, of the Board are not part of the federal public administration.

• Marginal note:Head office

  (4) The head office of the Board shall be in the National Capital Region as described in the schedule to the National Capital Act.

• Marginal note:Canada Not-for-profit Corporations Act

  (5) The Canada Not-for-profit Corporations Act does not apply to the Board.

• Marginal note:Financial Administration Act

  (6) Part X of the Financial Administration Act, except for sections 89.8 to 89.92, 113.1, 132 to 147 and 154.01, does not apply to the Board. For the purposes of those sections, any reference to section 131 of that Act shall be read as a reference to section 35 of this Act.

• Marginal note:Reports and special examination

  (7) Any report or information in respect of the Board that is provided to the Minister under sections 132 to 147 of the Financial Administration Act shall also be provided to the Minister of National Defence and the Minister of Public Safety and Emergency Preparedness. The Minister may only require a special examination under subsection 138(2) of that Act if the Minister has consulted with those Ministers.

Capital and Shares

Marginal note:Capital

• 3.1 (1) The capital of the Board is $100. The Minister shall pay the capital of the Board out of the Consolidated Revenue Fund.

• Marginal note:Shares

  (2) The capital is divided into 10 shares having a par value of $10 each. The shares shall be issued to the Minister to be held on behalf of Her Majesty in right of Canada.

• Marginal note:Registration

  (3) The shares issued to the Minister shall be registered by the Board in the name of the Minister.

Objects and Powers

Marginal note:Objects

• 4 (1) The objects of the Board are

  • (a) to manage amounts that are transferred to it under subsections 54(2) and 55.2(5) and section 59.4 of the Canadian Forces Superannuation Act, subsections 43(2) and 44.2(5) of the Public Service Superannuation Act and subsections 28(2) and 29.2(5) of the Royal Canadian Mounted Police Superannuation Act in the best interests of the contributors and beneficiaries under those Acts; and

  • (b) to invest its assets with a view to achieving a maximum rate of return, without undue risk of loss, having regard to the funding, policies and requirements of the pension plans established under the Acts referred to in paragraph (a) and the ability of those plans to meet their financial obligations.

• Marginal note:Costs of operation

  (2) The costs associated with the operation of the Board shall be paid out of the funds.

• Marginal note:Consultation

  (3) The Minister shall determine from which funds the costs shall be paid, but no amount shall be taken out of the Canadian Forces Pension Fund or the Canadian Forces Superannuation Investment Fund — or, if regulations are made under section 59.1 of the Canadian Forces Superannuation Act, from the fund referred to in section 59.3 of that Act — without consulting the Minister of National Defence, or from the Royal Canadian Mounted Police Pension Fund or the Royal Canadian Mounted Police Superannuation Investment Fund without consulting the Minister of Public Safety and Emergency Preparedness.

Marginal note:Powers of Board

• 5 (1) The Board has the capacity and, subject to this Act, the rights, powers and privileges of a natural person.

• Marginal note:No inconsistent business or activity

  (2) The Board and its subsidiaries shall not, directly or indirectly, carry on any business or activity or exercise any power that is inconsistent with the Board’s objects, or that the Board is restricted by this Act from carrying on or exercising, and shall not, directly or indirectly, exercise any of its powers in a manner contrary to this Act.

• Marginal note:No invalidity

  (3) No act of the Board, including a transfer of property, is invalid by reason only that the Board was without the capacity or power to so act.

• Marginal note:Consultation

  (4) The Minister shall consult the Board if changes to pension plan design or funding are proposed with respect to the pension plans created under the Acts referred to in paragraph 4(1)(a).

Marginal note:Investment management services

• 5.1 (1) Without limiting the generality of subsection 5(1) and despite subsection 5(2), the Board may incorporate a subsidiary for the purpose of providing investment management services to the Canada Growth Fund Inc. in accordance with any terms agreed to by the subsidiary and the Canada Growth Fund Inc.

• Marginal note:Costs

  (2) Despite subsection 4(2), the costs associated with the establishment and operation of the subsidiary and with the provision of investment management services are to be paid by the Canada Growth Fund Inc.

Payment into Consolidated Revenue Fund

Marginal note:Duty of Board

• 5.2 (1) The Board shall, at the request of the Minister, pay into the Consolidated Revenue Fund

  • (a) any amount that is required for the payment of benefits under subsection 44.2(6) of the Public Service Superannuation Act, subsection 55.2(6) of the Canadian Forces Superannuation Act or regulations made under section 59.1 of that Act, or subsection 29.2(6) of the Royal Canadian Mounted Police Superannuation Act;

  • (b) any amount that is determined under paragraph 44.4(2)(b) of the Public Service Superannuation Act, paragraph 55.4(2)(b) of the Canadian Forces Superannuation Act or paragraph 29.4(2)(b) of the Royal Canadian Mounted Police Superannuation Act; and

  • (c) any amount that is required for the payment of the costs determined under section 44.5 of the Public Service Superannuation Act, section 55.5 of the Canadian Forces Superannuation Act or section 29.5 of the Royal Canadian Mounted Police Superannuation Act or the costs for the administration of a fund established by regulations made under section 59.1 of the Canadian Forces Superannuation Act.

• Marginal note:Consultation

  (2) Before requesting the payment of an amount referred to in paragraph (1)(a) or (c), the Minister shall consult

  • (a) the Minister of National Defence if the amount is in relation to the Canadian Forces Superannuation Act; and

  • (b) the Minister of Public Safety and Emergency Preparedness if the amount is in relation to the Royal Canadian Mounted Police Superannuation Act.

Management

Board of Directors

Marginal note:Board of directors

• 6 (1) The Board shall be managed by a board of 13 directors, including the Chairperson.

• Marginal note:Disqualified persons

  (2) The following persons are disqualified from being directors:

  • (a) a person who is less than 18 years of age;

  • (b) a person who is of unsound mind and has been so found by a court in Canada or elsewhere;

  • (c) a person who has the status of a bankrupt;

  • (d) a person who is not a natural person;

  • (d.1) a person who is an employee of the Board;

  • (e) a person who is an agent or employee of Her Majesty in right of Canada;

  • (f) a person who is a member of the Senate or House of Commons of Canada or a member of a provincial legislature;

  • (g) a person who

    • (i) is entitled to or has been granted a pension benefit under the Public Service Superannuation Act, the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act,

    • (ii) is entitled to or has been granted a superannuation or pension benefit of a prescribed kind that is payable out of the Consolidated Revenue Fund and is chargeable to a Superannuation Account or another account in the accounts of Canada or is payable out of a fund, or

    • (iii) is subject to a superannuation or pension fund or plan under which he or she may become entitled to a benefit referred to in subparagraph (i) or (ii);

  • (g.1) a person who is a member of an advisory committee established under section 41 of the Public Service Superannuation Act, section 49.1 of the Canadian Forces Superannuation Act or section 25.1 of the Royal Canadian Mounted Police Superannuation Act;

  • (h) a person who is an agent or employee of the government of a foreign country or any political subdivision of a foreign country; and

  • (i) a person who is not a resident of Canada.

Marginal note:Principal duties

• 7 (1) Subject to this Act, the board of directors shall manage or supervise the management of the business and affairs of the Board.

• Marginal note:Specific duties

  (2) Without limiting the generality of subsection (1), the board of directors shall

  • (a) on an annual basis, establish written investment policies, standards and procedures for each fund that the Board manages;

  • (b) monitor the officers and employees of the Board to ensure compliance with the investment policies, standards and procedures established under paragraph (a);

  • (c) prepare or have prepared financial statements for each fund on a quarterly and on an annual basis in accordance with this Act;

  • (d) establish procedures for the identification of real or potential conflicts of interest and procedures to resolve those conflicts;

  • (e) establish a code of conduct for officers and employees of the Board; and

  • (f) designate a committee of the board of directors to monitor application of the conflict of interest procedures and the code of conduct.

Marginal note:Power to delegate

• 8 (1) Subject to subsection (2) and the by-laws, the board of directors may delegate to the Chairperson, to a committee of the board of directors or to any officer of the Board any of the powers or duties of the board of directors.

• Marginal note:Limits on power

  (2) The board of directors may not delegate the power to

  • (a) adopt, amend or repeal by-laws;

  • (b) establish the Board’s investment policies, standards and procedures;

  • (c) fill a vacancy in a committee of directors;

  • (d) appoint officers to the Board or fix their remuneration; or

  • (e) approve the annual financial statements of the Board and any other financial statements issued by the Board.

Directors

Marginal note:Appointment of directors

• 9 (1) Each director shall be appointed by the Governor in Council, on the recommendation of the Minister, to hold office during good behaviour for a term, not exceeding four years, that will ensure, as far as possible, the expiry in any one year of the terms of office of not more than one half of the directors.

• Marginal note:Recommendations from list of nominating committee

  (2) The recommendation of the Minister under subsection (1) shall be made from the list of qualified candidates proposed by the nominating committee established under section 10.

• Marginal note:Recommendations for certain directors

  (3) For two of the directors, the Minister’s recommendation under subsection (1) shall be made from among the candidates who are included on the list in accordance with subsection 10(6).