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

Act current to 2014-11-11 and last amended on 2012-12-14. Previous Versions

DISTRESSED PENSION PLAN WORKOUT SCHEME

Marginal note:Application
  •  (1) Sections 29.02 to 29.3 apply only in respect of a defined benefit plan that is not a multi-employer pension plan.

  • Marginal note:Agent of Her Majesty

    (2) Sections 29.02 to 29.3 do not apply in respect of an employer who is an agent of Her Majesty in right of Canada.

  • 2010, c. 12, s. 1817.
Marginal note:Definitions

 The following definitions apply in sections 29.03 to 29.3:

“beneficiary”

« bénéficiaire »

“beneficiary” means any person, other than a member, who is entitled to pension benefits under a pension plan.

“representative”

« représentant »

“representative” means a bargaining agent for unionized members or a representative appointed under subsection 29.08(3).

  • 2010, c. 12, s. 1817.
Marginal note:Election of employer
  •  (1) Subject to the regulations, an employer may elect to enter into a distressed pension plan workout scheme, as provided for in this section and sections 29.04 to 29.3, unless the employer is in the process of being liquidated, has made an assignment or has become bankrupt or the whole of the pension plan has been terminated.

  • Marginal note:Resolution

    (2) The election must be authorized by a resolution of the employer and, in the case of a Crown corporation, must also be authorized by the Minister and the appropriate Minister, as defined in subsection 83(1) of the Financial Administration Act.

  • Marginal note:Declaration

    (3) The election must be made by means of a declaration, in the prescribed form, of an officer of the employer and the declaration must

    • (a) state that the employer does not anticipate being able to make the payments required under subsection 9(1.1) or that the employer is the subject of proceedings under the Companies’ Creditors Arrangement Act or Part III of the Bankruptcy and Insolvency Act;

    • (b) state that the employer intends to negotiate with the representatives of the members and beneficiaries with the purpose of entering into a workout agreement;

    • (c) indicate, in the case of an employer who is not the subject of proceedings under the Companies’ Creditors Arrangement Act or Part III of the Bankruptcy and Insolvency Act, what portion of the payments referred to in subsection 29.07(1) the employer intends to defer; and

    • (d) contain any prescribed information.

  • Marginal note:Filing

    (4) The employer must, without delay, file the declaration, a certified copy of the employer’s resolution and any prescribed documents with the Superintendent and provide the Minister and the administrator with a copy of the documents filed.

  • Marginal note:Notice to members and beneficiaries

    (5) The employer must, in accordance with the regulations, provide notice of the declaration to the members and beneficiaries.

  • 2010, c. 12, s. 1817.