Pension Benefits Standards Act, 1985

Marginal note:Provision respecting vesting

• 17 (1) A pension plan shall provide that any member of the plan who has been a member for a continuous period of two years is entitled, on cessation of membership in the plan,

  • (a) to a deferred pension benefit, based on the member’s period of employment and salary up to the time of cessation of membership, and calculated in a similar manner and payable on the same terms and conditions as the immediate pension benefit (other than that provided by additional voluntary contributions) that, if the member had attained pensionable age, the member would have been eligible to receive

    • (i) under the terms of the plan, in respect of membership in the plan on and after January 1, 1987, in the case of a plan established before that date,

    • (ii) under the terms of the plan, in the case of a plan established on or after January 1, 1987, and

    • (iii) by virtue of any amendment to the plan made on or after January 1, 1987, in the case of a plan whenever established; and

  • (b) to any other benefit or option, based on the member’s period of employment and salary up to the time of cessation of membership, and calculated in a similar manner and payable on the same terms and conditions as the benefit or option to which, if the member had remained a member of the plan until pensionable age, the member would have been entitled

    • (i) under the terms of the plan described in subsection (2), in respect of membership in the plan on and after January 1, 1987, in the case of a plan established before that date, and

    • (ii) under the terms of the plan described in subsection (2), in the case of a plan established on or after January 1, 1987.

• Marginal note:Relevant terms of plan

  (2) The relevant terms of the plan for the purpose of subparagraphs (1)(b)(i) and (ii) are those terms that are required or permitted by subsections 16(2), (4) and (6) and sections 22, 23, 24, 25 and 27.

• Marginal note:Vesting, in respect of employment before Jan. 1, 1987

  (3) A pension plan shall provide that any member of the plan who has been employed by the employer for a continuous period of ten years or has been a member of the plan for a continuous period of ten years, and who has attained forty-five years of age, is entitled, on cessation of membership in the plan, to a deferred pension benefit, based on the member’s period of employment and salary up to the time of cessation of membership, and calculated in a similar manner and payable on the same terms and conditions as the immediate pension benefit (other than that provided by additional voluntary contributions) that, if the member had attained pensionable age, the member would have been eligible to receive

  • (a) under the terms of the plan, in respect of membership in the plan during the period beginning on October 1, 1967 and ending on December 31, 1986, in the case of a plan established before October 1, 1967;

  • (b) under the terms of the plan, in respect of membership in the plan up to the end of December 1986, in the case of a plan established during the period beginning on October 1, 1967 and ending on December 31, 1986; and

  • (c) by virtue of any amendment to the plan made during the period beginning on October 1, 1967 and ending on December 31, 1986, in respect of membership in the plan up to the end of December 1986, in the case of any plan established before the end of December 1986.