Pension Benefits Standards Act, 1985 (R.S.C., 1985, c. 32 (2nd Supp.))

AMENDMENTS NOT IN FORCE

• — 2019, c. 29, ss. 145(2), (3)

  • • 2010, c. 12, s. 1786(5)(F)

      145 (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;

    • 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:

      • (i) had a life annuity purchased for them that, under section 17.‍2, satisfies all of the plan’s obligations with respect to their pension benefits or any other benefit or option referred to in paragraph 17(b),

      • (i.1) transferred their pension benefit credit under section 26,

• — 2019, c. 29, s. 147

  • 147 The Act is amended by adding the following after section 17.1:

    Life Annuities

    • 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.

      • 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.

      • 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.

      • Application of section 26.‍1

        (4) For greater certainty, section 26.‍1 applies to the purchase of a life annuity under this section.

• — 2021, c. 23, s. 141

  • • 141 (1) Subsections 10.3(1) to (3) of the Pension Benefits Standards Act, 1985 are replaced by the following:

      • Designated entity

        • 10.3 (1) The Minister may, with the approval of the Governor in Council, designate an entity, as defined in section 2 of the Bank Act, for the purposes, among others, of receiving and holding the assets of a pension plan relating to the pension benefit credit of any person who cannot be located, and of disbursing those assets in a lump sum.

        • Transfer

          (2) In the case of the termination of the whole of a pension plan or in the prescribed circumstances, the administrator of the pension plan or — with the approval of the Superintendent — the trustee or custodian of the pension fund may, subject to subsection (3) and the regulations, transfer to the designated entity the assets of the plan relating to the pension benefit credit of any person who cannot be located.

        • Conditions

          (3) The transfer of assets to the designated entity may be made only if

          • (a) in the case of the termination of the whole of a pension plan, the prior consent of the Superintendent has been obtained; or

          • (b) in the case of a pension plan other than one that is terminated in whole, the conditions specified by the Superintendent have been met or, if they have not been met or none have been specified, the prior consent of the Superintendent has been obtained.

        • Obligation satisfied

          (3.1) A transfer of the assets of a pension plan relating to the pension benefit credit of a person who cannot be located satisfies the obligation under the plan to provide

          • (a) a pension benefit in respect of that person;

          • (b) any other benefit or option described in paragraph 17(b) that relates to that pension benefit; and

          • (c) the portion of any surplus that is allocated to that person.

        • Claims

          (3.2) A claim is not to be made for a benefit, an option or a portion of any surplus referred to in subsection (3.1) from the designated entity. However, prescribed persons may make a claim for payment of a lump sum from the designated entity in respect of the assets that were transferred to it, but the designated entity is not liable to pay more than the amount of the total value of those assets.

        • Information

          (3.3) On the transfer of assets under subsection (2), the administrator of the pension plan or the trustee or custodian of the pension fund, as the case may be, must provide the designated entity with the prescribed information, to the extent that they have the information, relating to the pension benefit credit and the person who cannot be located.

        • Publication of information

          (3.4) The designated entity may publish prescribed information relating to the assets that are transferred to it under subsection (2).

    • (2) Subsection 10.3(5) of the Act is replaced by the following:

      • Limitation period or prescription

        (5) On the transfer of assets to Her Majesty in right of Canada, a claim to those assets may no longer be made.

      • Surplus

        (6) For the purposes of this section, the assets of a pension plan relating to the pension benefit credit of a person who cannot be located include the portion of any surplus that is allocated to that person.

• — 2021, c. 23, s. 142

  • 142 Paragraphs 39(1)(c.1) to (c.4) of the Act are replaced by the following:

    • (c.1) respecting the transfer of assets under subsection 10.3(2), including the determination of the amount of assets to be transferred and the conditions under which those assets may be transferred;

    • (c.2) respecting the entity designated under subsection 10.3(1);

    • (c.3) respecting the holding by the entity designated under subsection 10.3(1) of assets relating to the pension benefit credit of any person who cannot be located, the making of claims for those assets and their disbursement;

    • (c.4) respecting the transfer of assets to Her Majesty in right of Canada under subsection 10.3(4);

• — 2022, c. 10, s. 186

  • 186 The Pension Benefits Standards Act, 1985 is amended by adding the following after section 9.16:

    Solvency Reserve Accounts

    • Establishment

      • 9.17 (1) Subject to the regulations, a defined benefit plan, other than a negotiated contribution plan, may provide for the establishment of a solvency reserve account in the plan’s pension fund.

      • Payments into account

        (2) Subject to the regulations, an employer may make payments into the solvency reserve account.

      • Restriction on transfers

        (3) The administrator shall not transfer into the solvency reserve account, nor permit to be transferred into that account, any moneys that are held in the pension fund outside of that account.

      • Withdrawals

        (4) Despite any terms of the pension plan or any document that creates or supports the plan or the pension fund, amounts may be withdrawn from the solvency reserve account in accordance with the regulations.

      • Non-application

        (5) Section 9.2 does not apply with respect to a withdrawal from the solvency reserve account.

• — 2022, c. 10, s. 187, as amended by 2022, c. 10, s. 189

  • 187 Section 10 of the Act is amended by adding the following after subsection (10):

    • Governance policy

      (11) The administrator of a pension plan shall

      • (a) establish, before the plan is filed for registration, a governance policy that contains the prescribed information; and

      • (b) ensure that the policy complies with this Act and the regulations.

    • Filing not required

      (12) The administrator is not required to file the governance policy for the purposes of subsection (1) or to file any amendment to the policy for the purposes of subsection 10.1(1).

    • Transitional provision — governance policy

      (13) An administrator of a pension plan, other than a negotiated contribution plan, that was registered or was filed for registration under this section before the day on which subsection (11) comes into force shall, within one year after that day, establish the governance policy for the plan.

• — 2022, c. 10, s. 188(1)

  • • 188 (1) Subsection 39(1) of the Act is amended by adding the following after paragraph (h):

      • (h.01) respecting solvency reserve accounts;

• — 2022, c. 10, s. 189(1), par. 2(b)

  • 2021, c. 23

    • 189 (1) In this section, other Act means the Budget Implementation Act, 2021, No. 1.

    • (2) If section 188 of the other Act comes into force before section 187 of this Act, then

      • (b) on the day on which that section 187 comes into force, subsections 10(7) to (10) of the Pension Benefits Standards Act, 1985 are replaced by the following:

        • Funding policy

          (7) The administrator of a negotiated contribution plan shall, before the plan is filed for registration, establish a funding policy that contains the prescribed information.

        • Filing not required

          (8) The administrator is not required to file the funding policy for the purposes of subsection (1) or to file any amendment to the policy for the purposes of subsection 10.1(1).

        • Compliance — funding policy

          (9) The administrator shall ensure that the funding policy complies with this Act and the regulations.

        • Transitional provision — negotiated contribution plans

          (10) An administrator of a negotiated contribution plan that was registered or was filed for registration under this section before the day on which subsection (7), as enacted by section 188 of the Budget Implementation Act, 2021, No. 1, comes into force shall, within one year after that day, establish the funding policy referred to in subsection (7) and the governance policy referred to in subsection (11).

• — 2023, c. 26, s. 148

  • • 148 (1) The definitions defined benefit provision, defined contribution provision and variable benefit in subsection 2(1) of the Pension Benefits Standards Act, 1985 are replaced by the following:

      defined benefit provision

      defined benefit provision means a provision of a pension plan under which pension benefits for a member are determined in any way other than that described in paragraph (a) of the definition defined contribution provision and that does not provide for a variable life benefit; (disposition à prestations déterminées)

      defined contribution provision

      defined contribution provision means

      • (a) a provision of a pension plan under which pension benefits for a member are determined solely as a function of the amount of pension benefit that can be provided by

        • (i) contributions made by and on behalf of that member, and

        • (ii) interest earnings and other gains and losses allocated to that member, or

      • (b) a provision of a pension plan that provides for a variable life benefit; (disposition à cotisations déterminées)

      variable benefit

      variable benefit means a pension benefit payable in the form of a variable payment out of the pension fund, but does not include a variable life benefit; (prestation variable)

    • (2) [In force]

    • (3) Paragraphs (a) and (b) of the definition former member in subsection 2(1) of the Act are replaced by the following:

      • (a) except in sections 9.2 and 24, paragraph 28(1)(b.1) and subsection 28(2.1), a person who, on or after January 1, 1987, has either ceased membership in the plan or retired;

      • (b) in section 9.2, paragraph 28(1)(b.1) and subsection 28(2.1), a person who has either ceased membership in the plan or retired and has not, before the termination of the whole of the plan,

        • (i) transferred their pension benefit credit under section 16.4, 16.91 or 26,

        • (ii) used their pension benefit credit to purchase a life annuity under section 16.4, 16.91 or 26, or

        • (iii) had their pension benefits transferred to another pension plan; or

    • (4) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:

      variable life benefit

      variable life benefit means a pension benefit whose amount varies as a function of factors that include

      • (a) the amount or rate of return attributable to the investment of the assets of the fund from which the benefit is paid, and

      • (b) the rate of mortality of the pool of persons who are entitled to receive a benefit from that fund; (prestation viagère variable)

• — 2023, c. 26, s. 149

  • 149 Section 10.1 of the Act is amended by adding the following after subsection (2):

    • Non-application — variable life benefit

      (3) Subsection (2) does not apply with respect to an amendment to reduce, as permitted or required under the regulations, the amount of a variable life benefit.

• — 2023, c. 26, s. 150

  • 150 Section 10.2 of the Act is amended by adding the following after subsection (2):

    • Transfer from variable life benefit fund

      (3) Subject to section 16.91 and subsection 29(12), the administrator may transfer or permit the transfer of any part of the assets of a variable life benefit fund established under subsection 16.6(1) to another pension plan, including a pension plan to which this Act does not apply, only with the Superintendent’s permission.

• — 2023, c. 26, s. 151

  • 151 The Act is amended by adding the following after section 16.5:

    Variable Life Benefits

    • Fund and benefits

      • 16.6 (1) Subject to the regulations, a pension plan may

        • (a) provide for the establishment within the pension fund of a variable life benefit fund from which variable life benefits are to be paid; and

        • (b) provide that a person referred to in subsection (2) may, in order to receive variable life benefits, elect to transfer to the variable life benefit fund any amounts in either or both of the following accounts:

          • (i) their account in the pension fund maintained in respect of a defined contribution provision, and

          • (ii) their account in the pension fund maintained for additional voluntary contributions.

      • Persons who may elect

        (2) The following persons may make the election referred to in paragraph (1)(b):

        • (a) a member or former member who is entitled to an immediate pension benefit under subsection 16(1) or eligible to receive an immediate pension benefit under subsection 16(2);

        • (b) a survivor who is entitled to pension benefits under the pension plan.

    • Conditions on election

      16.7 A person referred to in subsection 16.6(2) may elect to transfer amounts to the variable life benefit fund only if the prescribed conditions are met.

    • No accounts in fund

      16.8 A variable life benefit fund does not contain individual accounts for recipients of variable life benefits and, for greater certainty, a reference in this Act to an account, made in relation to a defined contribution provision or a defined contribution plan, is not to be construed as referring to amounts held within a variable life benefit fund.

    • Termination

      • 16.9 (1) This section, and not section 29, applies with respect to the termination of a variable life benefit fund if that termination includes only the termination of one or more such funds and the whole of the plan is not being terminated.

      • No partial termination

        (2) A partial termination of a variable life benefit fund is not permitted.

      • Termination by administrator

        (3) Subject to subsection (4), a variable life benefit fund is terminated only if the administrator of the pension plan notifies the Superintendent — in writing or in the form and manner, if any, that the Superintendent directs — of the decision to terminate the fund and the date of termination, not less than 60 days and not more than 180 days before the date of termination.

      • Declaration by Superintendent

        (4) In the prescribed circumstances, the Superintendent may declare a variable life benefit fund to be terminated as of the date that the Superintendent considers appropriate.

      • Termination report

        (5) On the termination of a variable life benefit fund, the administrator shall file with the Superintendent — in the form and manner, if any, that the Superintendent directs — a termination report that contains the prescribed information and that is prepared by a person having the prescribed qualifications.

      • Approval of termination report

        (6) Assets of the variable life benefit fund may not be applied toward the provision of any benefits until the Superintendent has approved the termination report. The administrator may nevertheless pay variable life benefits, as they fall due, to the persons entitled to them.

    • Transfer or purchase on termination

      • 16.91 (1) On the termination of a variable life benefit fund under section 16.9, a former member or survivor who was receiving a variable life benefit from the fund is entitled to

        • (a) transfer, for the purpose of making an election to receive a variable benefit under section 16.2, the amount of the aggregate value of their variable life benefits at termination to an account maintained in the pension plan in respect of a defined contribution provision, if the pension plan provides for such an election;

        • (b) transfer that amount to another pension plan, including one referred to in any of paragraphs 26(5)(a) to (c), if that other plan permits;

        • (c) transfer that amount to a retirement savings plan of the prescribed kind for the former member or survivor, as the case may be; or

        • (d) use that amount to purchase an immediate or deferred life annuity of the prescribed kind for the former member or survivor, as the case may be.

      • Aggregate value

        (2) The aggregate value of a person’s variable life benefits at termination is to be calculated in the prescribed manner.

      • Survivor

        (3) For the purposes of paragraph (1)(a), a survivor may make an election under section 16.2 as if they were a former member, but neither paragraph 16.2(2)(a) nor section 16.3 apply with respect to the survivor.

    • Superintendent may direct winding-up

      16.92 If a variable life benefit fund has been terminated under section 16.9 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 shall comply with any such direction without delay.

• — 2023, c. 26, s. 152(2)

  • • 152 (2) Paragraphs 18(1)(b) and (c) of the Act are replaced by the following:

      • (b) that, except in the case of the unexpired period of a guaranteed annuity or as provided in section 16.4 or 16.91 or subsection 29(12), no benefit described in section 16 or 17 is capable of being surrendered or commuted during the lifetime of the member or former member or that person’s spouse or common-law partner or confers on a member or former member, on that person’s personal representative or dependant or on any other person any right or interest in the benefit that is capable of being surrendered or commuted during the lifetime of the member or former member or that person’s spouse or common-law partner; and

      • (c) with respect to a person who has been a member for a continuous period of at least two years, that, except as provided in section 16.4, 16.91 or 26 or subsection 29(12), that person — if they are entitled to a benefit described in section 16 or 17 or would be entitled to the benefit if they retired or ceased membership in the plan — is not permitted to withdraw any part of their contributions to the plan, other than additional voluntary contributions, in respect of any period of membership in the plan on or after October 1, 1967 for which they are entitled to the benefit, and that any pension fund moneys attributable to those contributions shall be applied under the terms of the plan toward the payment of the benefit.

• — 2023, c. 26, s. 154

  • 154 Section 27 of the Act is amended by adding the following after subsection (3):

    • Variable life benefits

      (4) The application of subsections (1) to (3) with respect to variable life benefits may be adapted, restricted or excluded under the regulations.

• — 2023, c. 26, s. 155

  • • 155 (1) [In force]

    • (2) The portion of paragraph 28(1)(b.1) of the Act before subparagraph (i) is replaced by the following:

      • (b.1) that, other than with respect to variable life benefits, each former member of the plan and the former member’s spouse or common-law partner, as well as each survivor who is entitled to pension benefits under the plan, will be given, in the prescribed circumstances and manner and within six months — or any longer period permitted by the Superintendent — after the end of each year of operation of the plan, a written statement showing

    • (3) Section 28 of the Act is amended by adding the following after subsection (2):

      • Variable life benefit fund

        (2.01) A pension plan with a variable life benefit fund shall provide that each former member and survivor who is receiving a variable life benefit from the fund, as well the spouse or common-law partner of each such former member, will be given the prescribed information in the prescribed circumstances and manner and within the prescribed period or within any longer period permitted by the Superintendent.

    • (4) [In force]

    • (5) Section 28 of the Act is amended by adding the following after subsection (2.1):

      • Information — termination of variable life benefit fund

        (2.2) A pension plan with a variable life benefit fund shall provide that, if the fund is terminated under section 16.9, the administrator shall give to each former member and survivor who is receiving a variable life benefit from the fund, as well as to the spouse or common-law partner of each such former member, a written statement, in the prescribed form, that

        • (a) informs them of the termination of the fund, within 30 days after the termination or any longer period permitted by the Superintendent; and

        • (b) provides them with the prescribed information, within 120 days after the termination or any longer period permitted by the Superintendent.

• — 2023, c. 26, s. 156(3)

  • • 156 (3) Section 29 of the Act is amended by adding the following after subsection (11):

      • Variable life benefits — transfer or purchase

        (12) If a variable life benefit fund has been terminated as part of a termination under this section, a former member or survivor who was receiving a variable life benefit from the fund is entitled to

        • (a) transfer the amount of the aggregate value of their variable life benefits at termination, calculated in the prescribed manner, to another pension plan, including one referred to in any of paragraphs 26(5)(a) to (c), if that other plan permits;

        • (b) transfer that amount to a retirement savings plan of the prescribed kind for the former member or survivor, as the case may be; or

        • (c) use that amount to purchase an immediate or deferred life annuity of the prescribed kind for the former member or survivor, as the case may be.

• — 2023, c. 26, s. 157

  • • 157 (1) Paragraph 36(2)(b) of the Act is replaced by the following:

      • (b) any money withdrawn from a pension fund under section 16.4, 16.91 or 26 or subsection 29(12)

    • (2) [In force]

    • (3) The portion of subsection 36(3) of the Act before paragraph (a) is replaced by the following:

      • Exception

        (3) Subsection (2) does not apply to prevent the assignment of a right or interest in a pension benefit, or in a life annuity of the prescribed kind resulting from a transfer or purchase under section 16.4, 16.91 or 26 or subsection 29(12), if the assignment

    • (4) [In force]

    • (5) Paragraph 36(4)(b) of the Act is replaced by the following:

      • (b) to surrender or commute benefits payable as a result of a transfer or purchase under section 16.4, 16.91 or 26 or subsection 29(12)

• — 2023, c. 26, s. 158

  • 158 Subsection 39(1) of the Act is amended by adding the following after paragraph (k.2):

    • (k.3) respecting variable life benefits and variable life benefit funds;

    • (k.4) respecting the manner in which the actuarial present value of variable life benefits is to be calculated;

• — 2023, c. 26, s. 179

  • 2019, c. 29

    • 179 (1) In this section, other Act means the Budget Implementation Act, 2019, No. 1.

    • (2) If subsections 145(2) and (3) of the other Act come into force before subsection 148(3) of this Act, then, on the day on which that subsection 148(3) comes into force, paragraph (b) of the definition former member in subsection 2(1) of the Pension Benefits Standards Act, 1985 is amended by striking out “or” at the end of subparagraph (ii) and by adding the following after that subparagraph:

      • (ii.1) had a life annuity purchased for them that, under section 17.2, satisfies all of the plan’s obligations with respect to their pension benefits or to any other benefit or option referred to in paragraph 17(b), or

    • (3) If subsection 148(3) of this Act comes into force before subsections 145(2) and (3) of the other Act, then those subsections 145(2) and (3) are replaced by the following:

      • (2) Paragraph (b) of the definition former member in subsection 2(1) of the Act is amended by striking out “or” at the end of subparagraph (ii) and by adding the following after that subparagraph:

        • (ii.1) had a life annuity purchased for them that, under section 17.2, satisfies all of the plan’s obligations with respect to their pension benefits or to any other benefit or option referred to in paragraph 17(b), or

    • (4) If subsections 145(2) and (3) of the other Act come into force on the same day as subsection 148(3) of this Act, then those subsections 145(2) and (3) are deemed to have come into force before that subsection 148(3) and subsection (2) applies as a consequence.

• — 2024, c. 17, s. 184

  • 184 The Pension Benefits Standards Act, 1985 is amended by adding the following after section 40:

    Publication of Information

    • Investment information

      40.1 Within a reasonable time after the end of each calendar year, the Superintendent shall, in the form and manner that may be prescribed, publish the prescribed information that relates to the investments of prescribed pension plans.