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

Act current to 2017-12-11 and last amended on 2016-06-30. Previous Versions

Phased Retirement Benefit

Marginal note:Definitions
  •  (1) The following definitions apply in this section.

    phased retirement benefit

    prestation de retraite progressive

    phased retirement benefit means a pension benefit that is equal to a portion of the immediate pension benefit to which a person is entitled under subsection 16(1) or which they are eligible to receive under subsection 16(2). (prestation de retraite progressive)

    phased retirement period

    période de retraite progressive

    phased retirement period means the period in respect of which the phased retirement benefit is to be paid. (période de retraite progressive)

  • Marginal note:Phased retirement benefit

    (2) A pension plan may provide for the payment of a phased retirement benefit.

  • Marginal note:Conditions

    (3) A phased retirement benefit is only to be paid to a person if

    • (a) the person enters into a written agreement with an employer who contributes to the pension plan from which the phased retirement benefit is to be paid, or with a prescribed administrator, that evidences their consent to its payment;

    • (b) in the case of a person who was receiving a joint and survivor pension benefit prior to the phased retirement period, the person’s spouse or common-law partner who would receive that joint and survivor pension benefit on the death of the person consents in the prescribed form to the cessation of the payment of the joint and survivor pension benefit;

    • (c) the employer provides a copy of the agreement referred to in paragraph (a) to the administrator of the pension plan from which the phased retirement benefit is to be paid;

    • (d) the person accrues a pension benefit during the phased retirement period under circumstances to which subsection 8503(19) of the Income Tax Regulations applies; and

    • (e) the whole of the pension plan from which the phased retirement benefit is to be paid has not been terminated.

  • Marginal note:Rules — during phased retirement period

    (4) During a phased retirement period

    • (a) the person is deemed to be a member;

    • (b) subsection 2(3) does not apply and the person is deemed not to be receiving an immediate pension benefit;

    • (c) the administrator of the pension plan from which the phased retirement benefit is to be paid shall not pay the immediate pension benefit to which the person would otherwise be entitled under subsection 16(1) or which they would otherwise be eligible to receive under subsection 16(2);

    • (d) paragraph 18(1)(b) and subsections 36(1) and (4) do not apply to an agreement or arrangement that may be entered into for the payment of the phased retirement benefit;

    • (e) section 21 does not apply to the calculation of the phased retirement benefit;

    • (f) section 22 does not apply to the phased retirement benefit; and

    • (g) in the case of a person who, prior to the phased retirement period, was receiving an immediate pension benefit from the pension plan from which the phased retirement benefit is to be paid, the administrator of that pension plan shall not pay the immediate pension benefit and an election that was made under subsection 22(5) is void or, in Quebec, null unless it was made under provincial property law within the meaning of subsection 25(1).

  • Marginal note:Rules — after phased retirement period

    (5) At the end of a phased retirement period

    • (a) the pension benefit accrued during the phased retirement period is to be treated as vested without regard to conditions as to age, period of membership in the pension plan or period of employment;

    • (b) the immediate pension benefit to which the person is entitled under subsection 16(1) or which they are eligible to receive under subsection 16(2) is, unless otherwise prescribed, to be calculated without regard to the amount of the phased retirement benefit received;

    • (c) an election under subsection 22(5) that is void or, in Quebec, null under paragraph (4)(g) remains void or, in Quebec, null;

    • (d) subsection 26(2) applies as if it contained no reference to “but before the commencement of payment of a pension benefit”; and

    • (e) in the case of a phased retirement period that ends as a result of the death of a person,

      • (i) the person is deemed to have retired for purposes of the survivor benefit,

      • (ii) the person is deemed to have been entitled to the joint and survivor pension benefit payable pursuant to section 22, without regard to subsection 22(5), in respect of the immediate pension benefit to which the person would otherwise be entitled under subsection 16(1) or which they would otherwise be eligible to receive under subsection 16(2), and

      • (iii) subsections 23(5) to (7) apply.

  • 2007, c. 35, s. 141;
  • 2010, c. 12, ss. 1803, 1824(F), 1825(E).

Variable Benefit

Marginal note:Variable benefit
  •  (1) Subject to the regulations, a pension plan may provide that a member or former member who is entitled to an immediate pension benefit under subsection 16(1) or eligible to receive an immediate pension benefit under subsection 16(2) may elect to receive a variable benefit payable under a defined contribution provision.

  • Marginal note:Conditions

    (2) A member or former member may make the election only if

    • (a) their spouse or common-law partner notifies the administrator of their consent, in the prescribed form; and

    • (b) the whole of the pension plan has not been terminated at the time the election is made.

  • Marginal note:Non-application

    (3) Section 22 does not apply to a variable benefit.

  • 2010, c. 12, s. 1804.
Marginal note:Entitlement of survivor
  •  (1) In the case of the death of a former member who had a spouse or common-law partner at the time payment of a variable benefit referred to in subsection 16.2(1) commenced, the survivor is entitled to receive, subject to the regulations and the regulations made under the Income Tax Act, a variable benefit payable under a defined contribution provision based on the amount remaining in the former member’s account maintained in respect of the defined contribution provision.

  • Marginal note:Designated beneficiary or estate or succession

    (2) If a former member dies without leaving a survivor, the amount remaining in the former member’s account maintained in respect of a defined contribution provision is to be paid, subject to the regulations made under the Income Tax Act, to the former member’s designated beneficiary or, if there is none, to the former member’s estate or succession.

  • 2010, c. 12, s. 1804.
Marginal note:Transfer
  •  (1) At least once every year, or more frequently if the pension plan permits, a former member or their survivor may elect

    • (a) to transfer the amount remaining to another pension plan, including a plan referred to in paragraph 26(5)(a) or (b), if that other plan permits;

    • (b) to transfer the amount remaining to a retirement savings plan of the prescribed kind for the former member or survivor, as the case may be; or

    • (c) to use the amount remaining to purchase an immediate or deferred life annuity of the prescribed kind for the former member or survivor, as the case may be.

    The former member or survivor must notify the administrator of their intention to make such an election in the prescribed form and the administrator must, without delay, take the necessary action to give effect to the notification.

  • Marginal note:Transfer in case of death

    (2) If the survivor notifies the administrator of their intention to do so, in the prescribed form, within 90 days after the former member’s death or, if the Superintendent allows a longer period under paragraph 28(1)(d), within 60 days after the administrator has given the written statement under that paragraph, the survivor may also

    • (a) transfer the amount remaining to another pension plan, including a plan referred to in paragraph 26(5)(a) or (b), if that other plan permits;

    • (b) transfer the amount remaining to a retirement savings plan of the prescribed kind for the survivor; or

    • (c) use the amount remaining to purchase an immediate or deferred life annuity of the prescribed kind for the survivor.

    The administrator must, without delay, take the necessary action to give effect to the notification.

  • 2010, c. 12, s. 1804.
 
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