Pension Benefits Standards Act, 1985

Marginal note:Minimum pension benefit credit

• 21 (1) Subject to paragraph 26(3)(b), if a member of a defined benefit plan retires, ceases to be a member or dies or if the whole or part of the plan is terminated, the pension benefit in respect of the member is to be increased by the amount, if any, by which the aggregate of the member’s contributions, other than additional voluntary contributions, together with interest in accordance with section 19, exceeds 50 per cent of the pension benefit credit in respect of the member’s membership in the plan.

• Marginal note:Exception

  (2) Subsection (1) does not apply to a contribution, or the pension benefit arising from it, in respect of any defined contribution provision of a defined benefit plan.

• Marginal note:If plan provides for indexation

  (3) Subsection (1) does not apply if a defined benefit plan provides for annual indexation of a deferred pension benefit, up to the day when payment of that deferred pension benefit commences, on the basis of

  • (a) increases of at least 75 per cent of the annual increase of the Consumer Price Index, minus one per cent; or

  • (b) any other formula that, in the Superintendent’s opinion, would provide protection that on the average would be comparable to that described in paragraph (a).

• Marginal note:Calculation of annual increase of Consumer Price Index

  (4) For the purposes of paragraph (3)(a),

  • (a) the Consumer Price Index means the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act; and

  • (b) the annual increase of the Consumer Price Index must be calculated, in prescribed manner, by the comparison between two consecutive and reasonably current 12-month periods.