Jobs and Economic Growth Act (S.C. 2010, c. 12)
Full Document:
Assented to 2010-07-12
Marginal note:2001, c. 34, s. 68(F)
1805. Section 17 of the Act is replaced by the following:
Marginal note:Provision respecting vesting
17. A pension plan must provide that any member of the plan is entitled, on cessation of membership in the plan,
(a) to a deferred pension benefit, based on the member’s period of employment and salary up to the time of cessation of membership, and calculated in a similar manner and payable on the same terms and conditions as the immediate pension benefit — other than that provided by additional voluntary contributions — that the member would have been eligible to receive under the plan if they had attained pensionable age; and
(b) to any other benefit or option, based on the member’s period of employment and salary up to the time of cessation of membership, and calculated in a similar manner and payable on the same terms and conditions as the benefit or option to which, if the member had remained a member of the plan until pensionable age, the member would have been entitled under the terms of the plan that are required or permitted by subsections 16(2), (4) and (6) and sections 22 to 25 and 27.
Marginal note:2001, c. 34, s. 69(1)(F)
1806. (1) Paragraph 18(1)(c) of the Act is replaced by the following:
(c) with respect to a person who has been a member for a continuous period of at least two years, that, except as provided in section 26, that person — if they are entitled to a benefit described in section 16 or 17 or would be entitled to the benefit if they retired or ceased membership in the plan — is not permitted to withdraw any part of their contributions to the plan, other than additional voluntary contributions, in respect of any period of membership in the plan on or after October 1, 1967 for which they are entitled to the benefit, and that any pension fund moneys attributable to those contributions shall be applied under the terms of the plan toward the payment of the benefit.
Marginal note:2001, c. 34, s. 69(2)(F)
(2) Paragraph 18(2)(a) of the Act is repealed.
Marginal note:2001, c. 34, s. 70(F)
1807. Section 20 of the Act and the heading before it are repealed.
Marginal note:2001, c. 34, s. 71(F)
1808. Section 21 of the Act is replaced by the following:
Marginal note:Minimum pension benefit credit
21. (1) Subject to paragraph 26(3)(b), if a member of a defined benefit plan retires, ceases to be a member or dies or if the whole or part of the plan is terminated, the pension benefit in respect of the member is to be increased by the amount, if any, by which the aggregate of the member’s contributions, other than additional voluntary contributions, together with interest in accordance with section 19, exceeds 50 per cent of the pension benefit credit in respect of the member’s membership in the plan.
Marginal note:Exception
(2) Subsection (1) does not apply to a contribution, or the pension benefit arising from it, in respect of any defined contribution provision of a defined benefit plan.
Marginal note:If plan provides for indexation
(3) Subsection (1) does not apply if a defined benefit plan provides for annual indexation of a deferred pension benefit, up to the day when payment of that deferred pension benefit commences, on the basis of
(a) increases of at least 75 per cent of the annual increase of the Consumer Price Index, minus one per cent; or
(b) any other formula that, in the Superintendent’s opinion, would provide protection that on the average would be comparable to that described in paragraph (a).
Marginal note:Calculation of annual increase of Consumer Price Index
(4) For the purposes of paragraph (3)(a),
(a) the “Consumer Price Index” means the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act; and
(b) the annual increase of the Consumer Price Index must be calculated, in prescribed manner, by the comparison between two consecutive and reasonably current 12-month periods.
Marginal note:1998, c. 12, s. 15(1); 2000, c. 12, par. 264(a); 2001, c. 34, s. 72(1)(F)
1809. (1) Subsection 23(1) of the Act is replaced by the following:
Marginal note:If member dies before eligible for early retirement
23. (1) In the case of the death of a member or former member of a pension plan who is entitled to a deferred pension benefit under section 17, or, in the case of a member, would be entitled to that benefit if the member ceased membership in the plan, the member’s or former member’s survivor is entitled to the pension benefit credit, calculated in accordance with section 21, to which the member or former member would have been entitled on the day of death if they had terminated employment on that day and had not died.
Marginal note:No survivor
(1.1) If a member or former member dies without leaving a survivor, the pension benefit credit referred to in subsection (1) is to be paid to the member’s or former member’s designated beneficiary or, if there is none, to their estate or succession.
Marginal note:1998, c. 12, ss. 15(2) and (3); 2000, c. 12, par. 264(b); 2001, c. 34, s. 72(2)(F)
(2) Subsections 23(3) and (4) of the Act are repealed.
Marginal note:1998, c. 12, s. 15(3); 2000, c. 12, par. 264(c)
(3) The portion of subsection 23(6) of the Act before paragraph (b) is replaced by the following:
Marginal note:Effect of group life insurance plan
(6) Subject to subsection (7), a defined benefit plan may provide for the reduction of the benefit payable under subsection (1) or (2) by an amount equal to that part of the group life insurance payment that can be considered to have been paid by employer premiums, calculated in a manner satisfactory to the Superintendent, if
(a) in the circumstances described in subsection (1) or (2), a survivor is entitled to a payment under a group life insurance plan on the death of the member or former member of the pension plan;
1810. The heading before section 25 of the Act is replaced by the following:
Divorce, Annulment, Separation or Breakdown of Common-law Partnership
Marginal note:2000, c. 12, s. 259(1)
1811. (1) Subsection 25(2) of the Act is replaced by the following:
Marginal note:Application of provincial property law
(2) Subject to subsections (4), (7) and (8), pension benefits, pension benefit credits and any other benefits under a pension plan are, on divorce, annulment, separation or breakdown of common-law partnership, subject to the applicable provincial property law.
Marginal note:2000, c. 12, s. 259(2); 2001, c. 34, s. 73(F)
(2) Subsection 25(4) of the Act is replaced by the following:
Marginal note:Power to assign to spouse, etc.
(4) A member or former member of a pension plan may assign all or part of their pension benefit, pension benefit credit or other benefit under the plan to their spouse, former spouse, common-law partner or former common-law partner, effective as of divorce, annulment, separation, or breakdown of the common-law partnership, as the case may be. The assignee is, in respect of the assigned portion of the pension benefit, pension benefit credit or other benefit, deemed for the purposes of this Act, except section 21,
(a) to have been a member of that pension plan; and
(b) to have ceased to be a member of that pension plan as of the effective date of the assignment.
However, a subsequent spouse or common-law partner of the assignee is not entitled to any pension benefit, pension benefit credit or other benefit under the pension plan in respect of that assigned portion.
Marginal note:2000, c. 12, s. 259(2)
(3) The portion of subsection 25(5) of the Act before paragraph (b) is replaced by the following:
Marginal note:Duty of administrator
(5) On divorce, annulment, separation or breakdown of a common-law partnership, if a court order or an agreement between the parties provides for the distribution of property between a member or former member and their spouse, former spouse or former common-law partner, the administrator shall determine and administer any pension benefit, pension benefit credit or other benefit of a pension plan of the member or former member in the prescribed manner and in accordance with the court order or agreement on receipt of
(a) a written request from either the member or former member or their spouse, former spouse or former common-law partner that all or part of the pension benefit, pension benefit credit or other benefit, as the case may be, be distributed or administered in accordance with the court order or the agreement; and
Marginal note:2000, c. 12, s. 259(2)
(4) The portion of subsection 25(5) of the English version of the Act after paragraph (b) is replaced by the following:
However, in the case of a court order, the administrator shall not administer the pension benefit, pension benefit credit or other benefit in accordance with the court order until all appeals from that order have been finally determined or the time for appealing has expired.
Marginal note:2000, c. 12, s. 259(2)
(5) Subsection 25(8) of the Act is replaced by the following:
Marginal note:Adjustment of joint and survivor pension benefit
(7.1) A pension plan may provide that, if no part of the pension benefit of a member or former member is required to be distributed to that person’s spouse, former spouse or former common-law partner under a court order or agreement referred to in subsection (5), a joint and survivor pension benefit may be adjusted so that it becomes payable in the normal form of the pension benefit as defined in subsection 22(1).
Marginal note:Limitation
(8) The aggregate of the following amounts shall not be greater than the actuarial present value of the pension benefit or other benefit, as the case may be, that would have been payable to the member or former member had the divorce, annulment, separation or breakdown not occurred:
(a) the actuarial present value of the pension benefit or other benefit paid to the member or former member, and
(b) the actuarial present value of the pension benefit or other benefit paid to the spouse, former spouse or former common-law partner of the member or former member.
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