Budget Implementation Act, 2019, No. 1 (S.C. 2019, c. 29)
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Assented to 2019-06-21
PART 4Various Measures (continued)
DIVISION 5Enhancing Retirement Security (continued)
R.S., c. C-44; 1994, c. 24, s. 1(F)Canada Business Corporations Act (continued)
144 Subsection 261(1) of the Act is amended by striking out “and” at the end of paragraph (h) and by adding the following after paragraph (i):
(j) defining, for the purposes of section 172.2, the expressions “retirees” and “pensioners”; and
(k) prescribing the time and manner in which the results of the vote referred to in subsection 172.4(3) are to be disclosed to the shareholders.
R.S., c. 32 (2nd Supp.)Pension Benefits Standards Act, 1985
145 (1) The definition cessation of membership in subsection 2(1) of the Pension Benefits Standards Act, 1985 is replaced by the following:
- cessation of membership
cessation of membership in a pension plan has the meaning assigned by subsections (2) and (2.1); (fin de participation)
Marginal note:2010, c. 12, s. 1786(5)(F)
(2) Paragraph (b) of the definition former member in subsection 2(1) of the French version of the Act is replaced by the following:
(b) à l’article 9.2 et à l’alinéa 28(1)b.1), du participant dont la participation a pris fin ou qui a pris sa retraite, à l’exception de celui qui, avant la cessation totale du régime, s’est vu acheter une prestation viagère qui satisfait, en application de l’article 17.2, à l’ensemble des obligations prévues par le régime relativement à ses prestations ou relativement à toute autre prestation ou toute option visées à l’alinéa 17b), a, au titre de l’article 26, transféré ses droits à pension ou utilisé ceux-ci pour acheter une prestation viagère, ou a vu ses prestations de pension transférées à un autre régime de pension;
Marginal note:2010, c. 12, s. 1786(3)(E)
(3) Subparagraph (b)(i) of the definition former member in subsection 2(1) of the English version of the Act is replaced by the following:
(i) had a life annuity purchased for them that, under section 17.2, satisfies all of the plan’s obligations with respect to their pension benefits or any other benefit or option referred to in paragraph 17(b),
(i.1) transferred their pension benefit credit under section 26,
(4) Section 2 of the Act is amended by adding the following after subsection (2):
Marginal note:For greater certainty
(2.1) For greater certainty, a member of a pension plan ceases membership in the plan when the whole or part of that plan is terminated.
146 The Act is amended by adding the following after section 17:
Entitlement Not Affected
Marginal note:For greater certainty
17.1 For greater certainty, a pension plan is not to provide that a pension benefit, or any other benefit or option referred to in paragraph 17(b), or a member’s entitlement to such a pension benefit or option, is affected when a plan is terminated.
147 The Act is amended by adding the following after section 17.1:
Life Annuities
Marginal note:Life annuity in lieu of pension benefit
17.2 (1) The purchase of an immediate or deferred life annuity by the administrator of a pension plan for a former member or survivor satisfies an obligation under the plan to provide a pension benefit arising from a defined benefit provision — as well as, in the case of a deferred life annuity, an obligation under the pension plan to provide any other benefit or option described in paragraph 17(b) that relates to that pension benefit — to the former member or survivor if
(a) the plan authorizes the purchase of the life annuity in satisfaction of that obligation;
(b) the life annuity is of the prescribed kind;
(c) the life annuity provides the former member or survivor with payments that
(i) in the case of an immediate life annuity, are in the same amount and form as the pension benefit to which the former member or survivor would otherwise be entitled under the terms of the pension plan that are in place on the day of the purchase, or
(ii) in the case of a deferred life annuity, are in the same amount as the pension benefit, and the related benefit or option described in paragraph 17(b), to which the former member or survivor would otherwise be entitled under the terms of the pension plan that are in place on the day of the purchase; and
(d) the administrator complies with the prescribed notice requirements.
Marginal note:Partial satisfaction of the obligation
(2) Despite paragraph (1)(c), the administrator may purchase a life annuity that provides the former member or survivor with payments that are in an amount that is the same as a part of the pension benefit or, in the case of a deferred life annuity, as a part of the pension benefit and related benefit or option. However, that purchase satisfies the obligation under the plan only with respect to that part.
Marginal note:Superintendent’s approval
(3) The administrator shall obtain the Superintendent’s approval of the person from whom the administrator proposes to purchase the life annuity if that person is not a life company as defined in subsection 2(1) of the Insurance Companies Act.
Marginal note:Application of section 26.1
(4) For greater certainty, section 26.1 applies to the purchase of a life annuity under this section.
Marginal note:2010, c. 12, s. 1808
148 Subsection 21(1) of the Act is replaced by the following:
Marginal note:Minimum pension benefit
21 (1) Subject to paragraph 26(3)(b), if a member of a defined benefit plan retires, ceases to be a member or dies, the pension benefit in respect of the member is to be increased by the amount that can be provided by the amount of the aggregate of the member’s contributions, other than additional voluntary contributions, together with interest in accordance with section 19, that exceeds 50 per cent of the pension benefit credit in respect of the member’s membership in the plan.
Transitional Provisions
149 Section 4.2, paragraph 67(1)(b.3) and subsections 101(1), (2.01), (2.1), (3.1) and (5.1) of the Bankruptcy and Insolvency Act, as enacted by sections 133 to 135, apply only in respect of proceedings that are commenced under that Act on or after the day on which that section, subsection or paragraph, as the case may be, comes into force.
150 Section 11.001, subsections 11.02(1) and 11.2(5) and sections 11.9 and 18.6 of the Companies’ Creditors Arrangement Act, as enacted by sections 136 to 140, apply only in respect of proceedings that are commenced under that Act on or after the day on which that section or subsection, as the case may be, comes into force.
Coordinating Amendments
Marginal note:2018, c. 8
151 (1) In this section, other Act means An Act to amend the Canada Business Corporations Act, the Canada Cooperatives Act, the Canada Not-for-profit Corporations Act and the Competition Act, chapter 8 of the Statutes of Canada, 2018.
(2) If subsection 143(1) of this Act comes into force before section 24 of the other Act, then that section 24 is repealed.
(3) If section 24 of the other Act comes into force before subsection 143(1) of this Act, then that subsection 143(1) is replaced by the following:
143 (1) Section 172.1 of the Act is replaced by the following:
Marginal note:Diversity in corporations
172.1 The directors of a prescribed corporation shall place before the shareholders, at every annual meeting, the prescribed information respecting diversity among the directors and “members of senior management” as defined by regulation.
Marginal note:Information to shareholders
172.2 (1) The corporation shall provide the information referred to in section 172.1 to each shareholder, except to a shareholder who has informed the corporation in writing that they do not want to receive that information, by sending the information along with the notice referred to in subsection 135(1) or by making the information available along with a proxy circular referred to in subsection 150(1).
Marginal note:Information to Director
(2) The corporation shall concurrently send the information referred to in section 172.1 to the Director.
(4) If section 24 of the other Act comes into force on the same day as subsection 143(1) of this Act, then that section 24 is deemed never to have come into force and is repealed.
Coming into Force
Marginal note:Order in council
152 (1) Sections 133 to 140 and 142 and subsection 143(1) come into force on a day or days to be fixed by order of the Governor in Council.
Marginal note:Order in council
(2) Subsections 143(2) and (3) and section 144 come into force on a day to be fixed by order of the Governor in Council, but that day must not be before the first day on which both section 142 and subsection 143(1) are in force.
Marginal note:Order in council
(3) Subsections 145(2) and (3) and section 147 come into force on a day to be fixed by order of the Governor in Council.
DIVISION 6R.S., c. C-8Canada Pension Plan
Amendments to the Act
153 Section 60 of the Canada Pension Plan is amended by adding the following after subsection (1.1):
Marginal note:Application for retirement pension waived
(1.2) The Minister may waive the requirement under subsection (1) for an application for a retirement pension to be made by a person or on their behalf if the Minister is satisfied that
(a) the person is a contributor;
(b) the person is 70 years old or more; and
(c) at least one of the following applies in respect of the person:
(i) the person is in receipt of a benefit under this Act, the Old Age Security Act or a provincial pension plan, and
(ii) a return of income was filed by the person or on their behalf under the Income Tax Act in respect of the year before the year in which the Minister considers waiving the requirement.
Marginal note:Effect of waiver
(1.3) If the requirement for an application for a retirement pension is waived, the application is deemed to have been made and received on the day on which the requirement is waived.
154 Section 67 of the Act is amended by adding the following after subsection (3.1):
Marginal note:Retirement pension — application waived
(3.2) For a retirement pension in respect of which the requirement to make the application was waived under subsection 60(1.2), if payment of the retirement pension is approved, the pension is payable for each of the following months:
(a) each month after the month in which the requirement was waived; and
(b) each of the 12 months in which the beneficiary had reached the age of 70 — including the month in which they reached that age — before the first month referred to in paragraph (a).
Coming into Force
Marginal note:January 1, 2020
155 This Division comes into force on January 1, 2020.
DIVISION 7R.S., c. O-9Old Age Security Act
Marginal note:2008, c. 28, s. 156
156 (1) Clause (a)(i)(B) of the definition income in section 2 of the Old Age Security Act is replaced by the following:
(B) for the purpose of determining benefits payable in respect of any month after June 2008 but before July 2020, the lesser of $3,500 and the person’s income from office or employment for the year,
(2) The definition income in section 2 of the Act is amended by adding the following after paragraph (b):
(b.1) for the purpose of determining benefits payable in respect of any month after June 2020, there shall be deducted from a person’s combined amount — which is equal to the aggregate of the person’s income from office or employment for the year, as reduced in accordance with paragraph (a), and the person’s self-employment earnings for the year, as reduced in accordance with paragraph (b), if those reduced self-employment earnings are greater than zero — an amount that is equal to the aggregate of
(i) the lesser of $5,000 and the combined amount, and
(ii) if the combined amount is greater than $5,000, the lesser of $5,000 and half of the amount by which the combined amount exceeds $5,000,
DIVISION 8Non-permitted Surplus
R.S., c. C-17Canadian Forces Superannuation Act
Marginal note:1999, c. 34, s. 152
157 Subsection 55.4(5) of the Canadian Forces Superannuation Act is replaced by the following:
Marginal note:Non-permitted surplus
(5) For the purposes of this section, a non-permitted surplus exists when the amount by which assets exceed liabilities in the Canadian Forces Pension Fund, as determined by the actuarial valuation report referred to in section 56 or one requested by the President of the Treasury Board, is greater than 25 per cent of the amount of liabilities in respect of contributors, as determined in that report.
R.S., c. P-36Public Service Superannuation Act
Marginal note:1999, c. 34, s. 96
158 Subsection 44.4(5) of the Public Service Superannuation Act is replaced by the following:
Marginal note:Non-permitted surplus
(5) For the purposes of this section, a non-permitted surplus exists when the amount by which assets exceed liabilities in the Public Service Pension Fund, as determined by the actuarial valuation report referred to in section 45 or one requested by the Minister, is greater than 25 percent of the amount of liabilities in respect of contributors, as determined in that report.
R.S., c. R-11Royal Canadian Mounted Police Superannuation Act
Marginal note:1999, c. 34, s. 199
159 Subsection 29.4(5) of the Royal Canadian Mounted Police Superannuation Act is replaced by the following:
Marginal note:Non-permitted surplus
(5) For the purposes of this section, a non-permitted surplus exists when the amount by which assets exceed liabilities in the Royal Canadian Mounted Police Pension Fund, as determined by the actuarial valuation report referred to in section 30 or one requested by the President of the Treasury Board, is greater than 25 per cent of the amount of liabilities in respect of contributors, as determined in that report.
DIVISION 9Regulatory Modernization
SUBDIVISION AR.S., c. B-3; 1992, c. 27, s. 2Bankruptcy and Insolvency Act
Marginal note:1992, c. 27, s. 9(1)
160 Subsection 13.2(2) of the Bankruptcy and Insolvency Act is replaced by the following:
Marginal note:Annual fees
(2) Each year, starting with the year in which a licence is issued to a trustee, the trustee shall pay the prescribed fees on or before the prescribed date or, if there is no prescribed date, on or before December 31.
161 Subsection 26(1) of the Act is replaced by the following:
Marginal note:Books to be kept by trustee
26 (1) A trustee shall keep proper books and records of the administration of each estate to which the trustee is appointed, in which shall be entered a record of all moneys received or disbursed by the trustee, a list of all creditors filing claims, the amount and disposition of those claims, a copy of all notices sent out, a signed copy of all minutes, proceedings had, and resolutions passed at any meeting of creditors or inspectors, court orders and all other matters or proceedings as may be necessary to give a complete account of the trustee’s administration of the estate.
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