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

Act current to 2015-08-30 and last amended on 2015-04-01. Previous Versions

Portability of Pension Benefit Credits and Purchase of Life Annuities

Marginal note:If member not yet eligible to retire
  •  (1) If a member, before becoming eligible to receive an immediate pension benefit pursuant to subsection 16(2), ceases to be a member of a pension plan or dies, the member or the survivor, as the case may be, is entitled

    • (a) to transfer the member’s pension benefit credit or the survivor’s pension benefit credit, whichever is applicable, to another pension plan, if that other plan permits,

    • (b) to transfer the member’s pension benefit credit or the survivor’s pension benefit credit, whichever is applicable, to a retirement savings plan of the prescribed kind for the member or survivor, as the case may be, or

    • (c) to use the member’s pension benefit credit or the survivor’s pension benefit credit, whichever is applicable, to purchase an immediate or deferred life annuity of the prescribed kind for the member or survivor, as the case may be,

    if the member or the survivor notifies the administrator of that desire, in prescribed form and within ninety days after the cessation of membership or the member’s death, as the case may be (or, where the Superintendent allows a longer period under paragraph 28(1)(d), within sixty days after the administrator has given the written statement pursuant to that paragraph), and the administrator shall forthwith take the necessary action to give effect to any such notification.

  • Marginal note:Where member eligible to retire

    (2) Where a member, after becoming eligible to retire pursuant to subsection 16(2) but before the commencement of payment of a pension benefit, ceases to be a member of the pension plan or dies, the plan may permit the member or the survivor, as the case may be,

    • (a) to transfer the member’s pension benefit credit or the survivor’s pension benefit credit, whichever is applicable, to another pension plan, if that other plan permits;

    • (b) to transfer the member’s pension benefit credit or the survivor’s pension benefit credit, whichever is applicable, to a retirement savings plan of the prescribed kind for the member or survivor, as the case may be; or

    • (c) to use the member’s pension benefit credit or the survivor’s pension benefit credit, whichever is applicable, to purchase an immediate or deferred life annuity of the prescribed kind for the member or survivor, as the case may be.

  • Marginal note:Consent

    (2.1) The transfer of pension benefit credit, referred to in paragraph (2)(b), may be made by a member only if the member’s spouse or common-law partner notifies the administrator, in the prescribed form, of their consent to the transfer.

  • Marginal note:Other optional provisions of plan

    (3) Where, at any time, a member ceases to be a member of the pension plan or dies, the plan may provide

    • (a[Repealed, 2010, c. 25, s. 192]

    • (b) that, if part of the pension benefit payable results from the excess described in subsection 21(1), the member or the survivor, as the case may be, must choose one of the following options in respect of that excess:

      • (i) transfer it to another pension plan, if that other plan permits,

      • (ii) transfer it to a retirement savings plan of the prescribed kind for the member or survivor, as the case may be, or

      • (iii) use it to purchase an immediate or deferred life annuity for the member or survivor, as the case may be.

  • (4) [Repealed, 2010, c. 12, s. 1813]

  • Marginal note:Pension plans include

    (5) For the purposes of this section, pension plans to which pension benefits may be transferred include

    • (a) pension plans that are under provincial jurisdiction;

    • (b) pension plans that are organized and administered to provide pension benefits to employees employed in excepted employment; and

    • (c) a pooled registered pension plan, as defined in subsection 2(1) of the Pooled Registered Pension Plans Act.

  • R.S., 1985, c. 32 (2nd Supp.), s. 26;
  • 1995, c. 17, s. 61;
  • 1998, c. 12, s. 16;
  • 1999, c. 31, s. 175(F);
  • 2000, c. 12, s. 264;
  • 2001, c. 34, s. 74(F);
  • 2010, c. 12, s. 1813, c. 25, s. 192;
  • 2012, c. 16, s. 88.