Pension Benefits Standards Regulations, 1985 (SOR/87-19)

Regulations are current to 2016-11-21 and last amended on 2016-07-01. Previous Versions

 For the purposes of paragraph 28(1)(c) of the Act, each person referred to in that paragraph may examine the written statement of investment policies and procedures in respect of the plan’s portfolio of investments and loans as described in subsection 7.1(1).

  • SOR/2002-78, s. 15.

Information to Be Provided — Phased Retirement Benefits

 The administrator of a plan that provides for the payment of a phased retirement benefit shall give, in written form, to the person to whom the benefit is to be paid, and to their spouse or common-law partner, before the person enters into an agreement referred to in paragraph 16.1(3)(a) of the Act

  • (a) if the person is a member before the phased retirement period begins, the statements shown in Forms 1 and 5 of Schedule IV; and

  • (b) if, before that period begins, the person is a former member who has retired, the statement shown in Form 5.1 of Schedule IV.

  • SOR/2009-100, s. 1.

Information To Be Provided — Variable Benefits

 The notification of consent of the spouse or common-law partner required under paragraph 16.2(2)(a) of the Act shall be made in Form 5.2 of Schedule IV.

  • SOR/2015-60, s. 15.

Information on Plan Termination

  •  (1) The written statement required under paragraph 28(2.1)(a) of the Act shall be given in Form 2.1 of Schedule IV.

  • (2) The written statement required under paragraph 28(2.1)(b) of the Act shall be given in Form 2.2 of Schedule IV.

  • SOR/2015-60, s. 16.

Report on Termination of Plan

 A report filed pursuant to subsection 29(9) of the Act on the termination of a plan or part of a plan shall be prepared

  • (a) by an actuary, accountant or other professional advisor, in the case of

    • (i) a defined contribution plan where the contributions under the plan are allocated to individual plan members, or

    • (ii) a defined benefit plan that is an insured plan; and

  • (b) by an actuary, in the case of any other plan.

  •  (1) For the purposes of this section, solvency deficit means the amount by which the solvency liabilities as at the date of termination of a plan or the valuation date, as the case may be, exceeds the sum of the solvency assets at that date and the amounts required to be paid under subsection 29(6) of the Act.

  • (2) For the purposes of subsection 29(6.1) of the Act,

    • (a) an employer shall pay an amount equal to the solvency deficit as at the date of termination of the plan either in a lump sum or by equal annual payments sufficient to liquidate the solvency deficit over a period of five years from the date of termination;

    • (b) the interest rate used to determine the annual payments is the same as the interest rate used to determine the solvency liabilities of the plan at the date of termination; and

    • (c) the annual payments shall be paid by equal monthly instalments no later than 30 days after the end of each month.

  • (3) The annual payment determined under paragraph (2)(a) that is to be paid in the plan year in which the plan is terminated may be reduced by the amounts required to be paid under subsection 29(6) of the Act.

  • (4) An actuarial report, filed after termination of the plan but before it is wound up, shall set out the remaining solvency assets, solvency liabilities, solvency deficit and remaining payments required to liquidate the solvency deficit as at the valuation date. The solvency assets and solvency deficit shall not include the face value of any letters of credit.

  • (5) If the present value of remaining payments determined in accordance with paragraph (2)(a) exceeds the remaining solvency deficit established as at the valuation date in accordance with the actuarial report referred to in subsection (4), the payments remaining to be made in respect of the solvency deficit are reduced pro rata.

  • (6) If the remaining solvency deficit established as at the valuation date in accordance with the actuarial report referred to in subsection (4) exceeds the present value of remaining payments determined in accordance with paragraph (2)(a), the remaining payments are increased pro rata such that the remaining payments will liquidate the remaining solvency deficit over the remainder of the five-year period beginning on the date of termination.

  • (7) Any solvency deficit that arises five or more years after the date of termination of the plan shall be immediately paid down.

  • (8) For the purposes of subsection 29(6.3) of the Act, the portion of the remaining amount that is attributable to the payments made under subsection 29(6.1) of the Act is equal to the lesser of

    • (a) the amount remaining in the pension fund at the date of winding-up, and

    • (b) the accumulated value at the date of winding-up, with interest at the rates earned by the pension fund, of the payments made under subsection 29(6.1) of the Act.

  • SOR/2011-85, s. 9.

Electronic Communications

  •  (1) For the purposes of paragraph 31.1(1)(a) of the Act, the addressee may consent in writing, in paper or electronic form, or orally.

  • (2) Before an addressee consents, the administrator shall notify the addressee

    • (a) of the addressee’s right to revoke their consent at any time;

    • (b) of the addressee’s responsibility to inform the administrator of any changes the addressee makes to the designated information system, including any changes made to the contact information for the designated information system; and

    • (c) of the date when the consent takes effect.

  • (3) The addressee shall revoke their consent in writing, in paper or electronic form, or orally.

  • SOR/2015-60, s. 17.

 If an electronic document is provided on a generally accessible information system, such as a website, the administrator shall provide to the addressee written notice, in paper or electronic form, of the electronic document’s availability and location.

  • SOR/2015-60, s. 17.

 An electronic document is considered to have been provided to an addressee when it is entered into or made available on the information system designated by the addressee.

  • SOR/2015-60, s. 17.
  •  (1) If an administrator has reason to believe that an addressee has not received an electronic document or the notice required under section 25.1, the administrator shall mail a paper copy of the document to the addressee.

  • (2) The mailing of a paper copy does not affect when the electronic document is considered to have been provided under section 25.2.

  • SOR/2015-60, s. 17.

General

  •  (1) A pension benefit that is being paid under a plan shall not be reduced as a consequence of an increase in the benefits being paid under the Old Age Security Act, the Canada Pension Plan or a provincial pension plan as defined in section 3 of the Canada Pension Plan.

  • (2) A pension benefit to which a plan member or former member is entitled under a plan shall not cease or be reduced as a consequence of the eligibility of that plan member or former member on account of age for a benefit payable before the age of 65 under the Old Age Security Act, the Canada Pension Plan or a provincial pension plan as defined in section 3 of the Canada Pension Plan, unless the plan member or former member has made an election to vary the pension benefit under subsection 16(6) of the Act.

 For the purposes of the Act,

  • (a) a pension benefit granted after December 31, 1986 in respect of membership in a plan prior to January 1, 1987 shall be attributed to membership in the plan after December 31, 1986; and

  • (b) where a pension benefit is based on a rate of remuneration of a plan member as of the date the plan member retires, or is based on an average of the rates of remuneration of a plan member over a specified and limited period, up to and including the date the plan member retires, the portion of the pension benefit attributable to membership in a plan after December 31, 1986 is

    • (i) the pension benefit,

    less

    • (ii) the pension benefit calculated as of December 31, 1986 using the rate of remuneration of the plan member as of the date the member ceases membership in the plan or retires, or the average of the rates of remuneration of the plan member over a specified and limited period, as of the date the member ceases membership in the plan or retires, as the case may be.

 Where a plan provides for pension benefits for an employee who is not employed in included employment and the employee is employed in a designated province referred to in section 3, the plan is exempt from the application of the Act in respect of any benefits for the employee.

 
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