Pension Benefits Standards Act, 1985

Marginal note:Minimum pension benefit credit

• 21 (1) In the case of a defined benefit plan, where

  • (a) a member retires,

  • (b) a member ceases to be a member,

  • (c) a member dies, or

  • (d) the whole or part of the plan is terminated,

  the member’s pension benefit credit (or, in the case of paragraph (d), any member’s pension benefit credit) shall be not less than the aggregate of the member’s required contributions together with interest in accordance with section 19.

• Marginal note:Special case

  (2) In the case of a defined benefit plan, where

  • (a) a member retires,

  • (b) a member who has been a member for a continuous period of at least two years ceases to be a member,

  • (c) a member dies, or

  • (d) the whole or part of the plan is terminated,

  then, subject to subsection (3) and paragraph 26(3)(b), if

  • (e) the aggregate of the member’s contributions, other than additional voluntary contributions, made after December 31, 1986, together with interest in accordance with section 19

  exceeds

  • (f) fifty per cent of the pension benefit credit in respect of the member’s membership in the plan after December 31, 1986, calculated without regard to the operation of subsection (1),

  the pension benefit to the member shall be increased by the amount that can be provided by that excess.

• Marginal note:Exception

  (3) Subsection (2) does not apply to a contribution, or the pension benefit arising therefrom, in respect of any defined contribution provision of a defined benefit plan.

• Marginal note:Period before Jan. 1, 1987

  (4) A pension plan may provide that subsection (2) applies as if it contained no references to “after December 31, 1986”.

• Marginal note:Where plan provides indexation

  (5) Subsection (2) does not apply where a defined benefit plan provides for annual indexation of a deferred pension benefit, up to the day when that deferred pension benefit commences to be paid, on the basis of

  • (a) increases of at least seventy-five 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

  (6) For the purposes of paragraph (5)(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 twelve month periods.