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

Marginal note:Entitlement at pensionable age

• 16 (1) A pension plan shall provide that each member is entitled to an immediate pension benefit on attaining pensionable age.

• Marginal note:Early retirement

  (2) Notwithstanding the pensionable age specified by a pension plan, members and former members of the plan shall be eligible, commencing ten years before pensionable age, to receive an immediate pension benefit based on the period of employment and salary up to the actual retirement date, but a plan is not required to provide an immediate pension benefit commencing earlier than ten years before pensionable age.

• Marginal note:Minimum period of membership

  (3) A pension plan may require a minimum period of membership, not exceeding two years, in order for a member to be eligible to receive an immediate pension benefit.

• Marginal note:Pension reduced

  (4) An immediate pension benefit that commences before pensionable age pursuant to subsection (2) may be reduced, provided that its actuarial present value is not less than the aggregate of

  • (a) the actuarial present value of the pension that would have been payable commencing at pensionable age, and

  • (b) the actuarial present value of any other benefit to which the member would have been entitled had the member remained a member of the pension plan until pensionable age.

• Marginal note:Employment after pensionable age

  (5) Where a pension plan provides generally that a member’s period of employment or the member’s salary during that period, or both, affect the member’s pension benefit, it shall provide that, where a member continues employment after attaining pensionable age and is not receiving a pension benefit in respect of employment with the current employer, the member’s period of employment after pensionable age or the member’s salary during that period, or both, as the case may be, shall be taken into account in calculating the member’s pension benefit, subject to any term of the pension plan

  • (a) fixing a maximum number of years of employment that can be taken into account under the plan for purposes of determining the pension benefit; or

  • (b) fixing a maximum amount of the pension benefit.

• Marginal note:Variable amount

  (6) A pension plan may provide that a member or former member may elect to receive an immediate pension benefit the amount of which

  • (a) is varied by reference to the amount of any pension payable under

    • (i) the Old Age Security Act, and

    • (ii) either the Canada Pension Plan or a provincial pension plan as defined in section 3 of the Canada Pension Plan; or

  • (b) is varied on any other basis approved by the Superintendent.