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

Application for Registration

• 11 (1) An application for the registration of a plan shall include

  • (a) a copy of the plan, insurance contract, trust agreement, resolution, collective agreement on pensions, by-law and any other document that creates or supports the plan, the pension fund and any amendments to them;

  • (b) a copy of a written explanation referred to in subparagraph 28(1)(a)(i) of the Act;

  • (c) a cost certificate, prepared as of the effective date of the plan or, if a cost certificate has been prepared as of a date more recent than the effective date of the plan, the most recent cost certificate, in the case of

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

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

  • (d) an actuarial report, in the case of a plan, other than a plan described in paragraph (c), prepared as of the effective date of the plan or, if an actuarial report has been prepared as of a date more recent than the effective date of the plan, the most recent actuarial report;

  • (e) a written statement, signed by the administrator, as to whether a statement of investment policies and procedures referred to in subsection 7.1(1) has been established.

  • (f) [Repealed, SOR/2011-196, s. 31]

  • (g) [Repealed, SOR/2015-60, s. 4]

• (2) A cost certificate referred to in paragraph (1)(c) shall be prepared by an actuary, accountant or other professional adviser and shall include

  • (a) the estimated cost of benefits under the plan and the contributions to the plan, showing separately employer and plan member contributions during the plan year in respect of which the cost certificate is prepared; and

  • (b) the formula for computing the cost of benefits, showing the formula for allocating the cost between the employer and the plan members for subsequent plan years.

• (3) An actuarial report referred to in paragraph (1)(d) shall be prepared by an actuary in accordance with the Standard of Practice for Valuation of Pension Plans published by the Canadian Institute of Actuaries in January 1994, as amended from time to time and shall include

  • (a) the estimated cost of benefits under the plan, showing separately employer and plan member contributions in respect of service

    • (i) for the plan year following the date as of which the report is prepared, where that date falls on the last day of a plan year, and

    • (ii) for the plan year in which the date as of which the report is prepared falls, where that date falls on any other day of a plan year;

  • (b) the formula for computing the cost of benefits, showing the formula for allocating the cost between the employer and the plan members in respect of service for that plan year and subsequent plan years;

  • (c) the outstanding amount of unfunded liabilities existing on the date as of which the report is prepared and the special payments to be made in accordance with paragraph 9(4)(b);

  • (d) a certification that the plan does not have a solvency deficiency or a determination of the solvency deficiency of the plan and the special payments to be made in accordance with paragraph 9(4)(c); and

  • (e) the solvency ratio of the plan and the method to be used to calculate the solvency ratio of the plan for the succeeding three plan years.

• (4) Any actuarial report referred to in paragraph (1)(d) that is prepared in respect of a negotiated contribution plan shall, if the funding of the plan fails to meet the standards of solvency referred to in section 8, contain the options available in respect of such funding that would result in the funding of the plan meeting the standards for solvency.

• (5) Where an actuarial report referred to in paragraph (1)(d) is prepared in respect of a plan that provides benefits based on a rate of remuneration at the date of commencement of the payment of the pension benefit or on an average of the rates of remuneration over a specified and limited period, the current remuneration of each plan member shall be projected to estimate the remuneration on which the pension benefits payable at retirement will be based.

• (6) Where an actuarial report referred to in paragraph (1)(d) is prepared in respect of a plan that provides for an increase in pension benefits after cessation of membership or after retirement, the actuarial report shall take into account the value of the increase in determining the value of pension benefits under the plan.

11.1 [Repealed, SOR/2015-60, s. 5]

11.2 [Repealed, SOR/2015-60, s. 5]

11.3 [Repealed, SOR/2015-60, s. 5]

Reporting

• 12 (1) An information return required under subsection 12(1) of the Act to be filed annually shall contain information in respect of a plan that is related to that plan year.

• (2) An information return required under subsection 12(1) of the Act to be filed other than annually shall contain all the information in respect of a plan relating to that portion of a plan year up to and including the date on which the information return is prepared.

13 An information return referred to in subsection 12(1) of the Act shall contain the information set out in Form 2 of Schedule II.

• 14 (1) The Superintendent shall require an administrator to file a cost certificate, prepared by an actuary, accountant or other professional advisor as of the effective date of an amendment to the plan that alters the cost of benefits under the plan or alters the contributions to the plan, in the case of

  • (a) a defined contribution plan where the contributions under the plan are allocated to individual plan members; and

  • (b) a defined benefit plan that is an insured plan.

• (2) A cost certificate referred to in subsection (1) shall include

  • (a) the estimated cost of benefits under the plan and the contributions to the plan, showing separately employer and plan member contributions

    • (i) for the plan year following the effective date of the amendment, where the effective date falls on the last day of the plan year, or

    • (ii) for the plan year in which the effective date of the amendment falls, where the effective date falls on any other day of the plan year; and

  • (b) the formula for computing the cost of benefits, showing the formula for allocating the cost between the employer and the plan members for subsequent plan years.

• 15 (1) The Superintendent may require the administrator to file, at such intervals or times as the Superintendent directs,

  • (a) subject to subsection (2), a list of assets held by the plan on the date directed by the Superintendent, showing

    • (i) the book value of each asset,

    • (ii) the market value of each asset, and

    • (iii) such information as will permit the verification of the market value attributed to an asset and the determination of whether the requirements of section 6 have been met;

  • (b) an appraisal that will permit the verification of the market value attributed to an asset held by the plan;

  • (c) if the plan is not an insured plan,

    • (i) a financial statement of the pension fund,

    • (ii) any information that the Handbook of the Canadian Institute of Chartered Accountants requires to be set out in a financial statement of a pension plan, and

    • (iii) an auditor’s report of the pension fund;

  • (d) information concerning the investments of the pension fund, including the information set out in Form 2.1 of Schedule II;

  • (e) any information relating to the determination of the solvency and funding status of a pension plan;

  • (f) the location of any books, records or other documents relating to a pension plan or to any securities, obligations or other investments in which pension fund money is invested;

  • (g) the name of the collective bargaining agent, if any, who represents the pension plan members;

  • (h) the information necessary to identify the employers who participate in or who have ceased participation in the plan;

  • (i) a certificate of the administrator or any person preparing, compiling or filing any information on behalf of the administrator that certifies that the information submitted to the Superintendent is accurate;

  • (j) a record of, or any other document evidencing, any operating expenses paid from the plan fund or that are due or accrued from the plan fund, including the names of any payees, the purpose and amounts of any payments made or to be made to each payee, including the aggregate amounts; and

  • (k) a record of, or any other document evidencing, all direct and indirect compensation that a person received or that is due or accrued in relation to any service provided by the person in respect of the plan.

• (2) A list of assets is not required in respect of a plan under which benefits are provided through

  • (a) a contract issued by a person authorized to carry on a life insurance business in Canada, other than a contract in respect of which separate and distinct funds are maintained by the person; or

  • (b) a contract issued by the Government of Canada.

Refund of Surplus

• 16 (1) For the purposes of the definition surplus in subsection 2(1) of the Act, the amount by which the assets of the plan exceeds its liabilities shall be determined by subtracting the liabilities of the plan from its assets, as those assets and liabilities are shown in an actuarial report and, in the case of a plan that has not been fully terminated, as those assets and liabilities are valued in the report according to a going concern valuation.

• (2) A refund of all or part of a surplus may be made if

  • (a) in respect of a plan that has not been fully terminated, the surplus exceeds the greater of the following amounts that are attributable to the defined benefit provisions of the plan, namely,

    • (i) two times the employer’s contribution to the normal cost of the plan, and

    • (ii) 25% of the liabilities of the plan, determined according to a solvency valuation;

  • (b) the administrator of the plan has given notice in writing to the plan members, former members and any other person who is entitled to a pension benefit under the terms of the plan that the employer intends to withdraw all or part of the surplus and that they may make any comments in writing to the Superintendent concerning the refund;

  • (c) 30 days have gone by after the day on which the administrator gave notice under paragraph (b);

  • (d) the Superintendent has consented to the refund of all or part of the surplus and has given notice of that consent in writing to the persons referred to in paragraph (b) who made comments in writing concerning the refund; and

  • (e) 40 days have gone by after the day on which the Superintendent gave notice under paragraph (d).

• (3) For the purpose of this section, liabilities accrued under the defined contribution provisions of a plan as the result of a conversion of defined benefit provisions to defined contribution provisions are deemed not to be attributable to the defined benefit provisions of the plan.

• (4) In respect of a plan that has not been fully terminated, the surplus or part of it that may be refunded may be no greater than the amount by which the surplus exceeds the greater of the following amounts that are attributable to the defined benefit provisions of the plan:

  • (a) two times the employer’s contribution to the normal cost of the plan, and

  • (b) 25% of the liabilities of the plan, determined according to a solvency valuation.

• (5) The following classes of persons are prescribed for the purpose of paragraph 9.2(3)(b) of the Act:

  • (a) any persons who are entitled to pension benefits payable from the plan, but not including plan members;

  • (b) survivors, spouses, former spouses, common-law partners and former common-law partners of members or former members if the survivor, spouse, former spouse, common-law partner or former common-law partner is entitled to pension benefits or pension benefit credits payable from the plan; and

  • (c) any persons for whom the administrator has purchased annuities, other than life annuities purchased under section 26 of the Act, but not including plan members.

• 16.1 (1) An employer shall notify the persons referred to in paragraph 9.2(3)(a) of the Act of the employer’s proposal for a refund of a surplus or part of it by sending a notice to the current address of the person or, if the person is an employee, to their place of work.

• (2) An employer shall notify the persons referred to in paragraph 9.2(3)(b) of the Act of the employer’s proposal for a refund of a surplus or part of it

  • (a) by sending a notice to the person at their current address contained in the employer’s records or at the address the employer reasonably believes to be their current address; or

  • (b) if the address of the person is unknown, by publishing a notice, in both official languages, once a week for two consecutive weeks, in one or more newspapers in general circulation in each province.

Arbitration Relating to Refund of Surplus

• 16.2 (1) An arbitration under subsection 9.2(4) of the Act shall include procedures by which

  • (a) unionized members can make written representations to the executive of their union; and

  • (b) any person, other than a person described in paragraph (a), who is described in subsection 9.2(3) of the Act can make written representations to the arbitrator.

• (2) For the purposes of subsection 9.2(7) of the Act, the prescribed period is one year beginning on the day on which the employer notifies the Superintendent and persons referred to in subsection 9.2(3) of the Act in accordance with subsection 9.2(4) or (5) of the Act, as the case may be.

• (3) The arbitrator shall publish a notice of the date, time and place at which the arbitration will begin.

• (4) The notice must include

  • (a) the mailing address from where the persons referred to in subsection 9.2(3) of the Act can obtain a copy of the procedures for the arbitration; and

  • (b) the mailing address where those persons may send their written representations.

• (5) The notice must be published, in both official languages, once a week for two consecutive weeks, in one or more newspapers in general circulation in each province in which persons referred to in subsection 9.2(3) of the Act reside or, if a person’s province of residence is not known, in each province.

• (6) The last notice must be published not more than eight weeks and not less than four weeks before the day on which the arbitration begins.

Indexation

17 The annual increase of the Consumer Price Index referred to in paragraph 21(6)(b) of the Act is the ratio of the aggregate of the Consumer Price Index for a current period of 12 consecutive months prior to the end of a plan year, or prior to the date the deferred pension benefit is adjusted as specified in the plan, if that date is other than the end of the plan year, to the aggregate of the Consumer Price Index for a corresponding period one year earlier, minus one.