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

Marginal note:Meaning of “normal form of the pension benefit”

• 22. (1) In this section, “normal form of the pension benefit” means the form of pension benefit under a pension plan that would be paid to a member at pensionable age were it not for this section.

• Marginal note:Joint and survivor pension benefit

  (2) A pension benefit that commences to be paid on or after January 1, 1987 to a member or former member of a pension plan who has a spouse or common-law partner at the time the pension benefit commences to be paid shall be in the form of a joint and survivor pension benefit, subject to subsection 25(7).

• Marginal note:Reduction by reason of death

  (3) A pension benefit described in subsection (2) may be reduced by reason of the death of either spouse or common-law partner, to an amount not less than sixty per cent of the amount of the pension benefit that would have been payable in respect of the member or former member had the death not occurred.

• Marginal note:Initial adjustment

  (4) The initial amount of a pension benefit described in subsection (2) may be adjusted, provided that the actuarial present value of that pension benefit is not less than the actuarial present value of the normal form of the pension benefit.

• Marginal note:Other forms of pension benefit

  (5) Notwithstanding subsections (2) to (4), a pension plan shall provide that, in respect of a pension benefit that commences to be paid on or after January 1, 1987, a member or former member may elect to receive

  • (a) the normal form of the pension benefit, or

  • (b) the pension benefit in any other form provided for under the terms of the plan,

  except that, where the member or former member has a spouse or common-law partner, an election as a result of which the pension benefit would reduce on the death of the member or former member, where the member or former member predeceases the spouse or common-law partner, to less than sixty per cent of the amount payable when both were alive, may not be made without the spouse’s or common-law partner’s written agreement, in prescribed form and deposited with the administrator of the plan.

Marginal note:If member dies before retirement

• 23. (1) In the case of the death of a member or former member of a pension plan who is entitled to a deferred pension benefit under section 17, or, in the case of a member, would be entitled to that benefit if the member ceased membership in the plan, the member’s or former member’s survivor is entitled to the pension benefit credit, calculated in accordance with section 21, to which the member or former member would have been entitled on the day of death if they had terminated employment on that day and had not died.

• Marginal note:No survivor

  (1.1) If a member or former member dies without leaving a survivor, the pension benefit credit referred to in subsection (1) is to be paid to the member’s or former member’s designated beneficiary or, if there is none, to their estate or succession.

• Marginal note:Alternative

  (2) A pension plan may provide for a survivor, as an alternative to what is provided by subsection (1), an immediate pension benefit equal to or greater than what is provided by subsection (1).

• (3) and (4) [Repealed, 2010, c. 12, s. 1809]

• Marginal note:Surrender of pension benefit or pension benefit credit

  (5) A pension plan may provide that a survivor may, after the death of a member or former member, surrender, in writing, the pension benefit or pension benefit credit to which the survivor is entitled under this section and designate a beneficiary who is a dependant, within the meaning of subsection 8500(1) of the Income Tax Regulations, of the survivor, member or former member.

• Marginal note:Effect of group life insurance plan

  (6) Subject to subsection (7), a defined benefit plan may provide for the reduction of the benefit payable under subsection (1) or (2) by an amount equal to that part of the group life insurance payment that can be considered to have been paid by employer premiums, calculated in a manner satisfactory to the Superintendent, if

  • (a) in the circumstances described in subsection (1) or (2), a survivor is entitled to a payment under a group life insurance plan on the death of the member or former member of the pension plan;

  • (b) the group life insurance plan is one that is approved by the Superintendent for the purposes of this subsection; and

  • (c) the group life insurance premiums are paid in whole or in part by the employer.

• Marginal note:Limitation

  (7) In respect of a reduction referred to in subsection (6),

  • (a) the actuarial present value of the reduction may not exceed the amount of the payment to which the survivor is entitled under the group life insurance plan; and

  • (b) in the case of a contributory pension plan, the reduction may not reduce the benefit payable to the survivor to an amount less than the aggregate of the member’s required contributions together with interest in accordance with section 19.