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

Regulations are current to 2020-10-05 and last amended on 2017-06-23. Previous Versions

Designated Provinces

 For the purposes of the definition designated province in subsection 2(1) of the Act, Ontario, Quebec, Nova Scotia, New Brunswick, Manitoba, British Columbia, Saskatchewan, Alberta and Newfoundland and Labrador are prescribed as provinces in which there is in force pension legislation applicable to private superannuation plans.

  • SOR/90-363, s. 2
  • SOR/93-109, s. 2
  • SOR/94-384, s. 2
  • SOR/2002-78, s. 2
  • SOR/2016-205, s. 1

Excepted Employment

 The employment described in Schedule I is excepted from included employment.

Choice of Pension Committee and Pension Council Representative

[SOR/2002-78, s. 3]
  •  (1) The representatives of the plan members or retired members who are to be included on a pension committee referred to in section 7.1 of the Act or a pension council referred to in section 7.2 of the Act shall be chosen in accordance with this section.

  • (2) A majority of the plan members or retired members shall notify an employer or a participating employer in writing of their decision to elect a representative of the members or retired members.

  • (3) Subject to subsection (5), the election of a representative of the plan members shall be conducted in the following manner:

    • (a) on receipt of a notice, referred to in subsection (2), the employer shall post, in areas that are accessible to the plan members, a notice;

      • (i) advising the members of an election, and

      • (ii) establishing a period of not less than two weeks and not more than four weeks during which nominations for the position of representative of the plan members may be made by plan members;

    • (b) nominations for the position of a representative of the plan members shall be filed in writing with the employer;

    • (c) on the closing of the nomination period, the employer shall post, in areas that are accessible to the plan members, a notice specifying

      • (i) the names of the nominees,

      • (ii) a time within the next two weeks at which plan members may cast their votes, and

      • (iii) a location at the place of employment at which plan members may cast their votes;

    • (d) the election shall be conducted by the employer by secret ballot and each plan member shall be entitled to one vote for the representative to be elected;

    • (e) the representative elected shall be the nominee with the greatest number of votes;

    • (f) where two or more nominees receive an equal number of votes that is greater than the number of votes received by any other nominee, the name of each of the first-mentioned nominees shall be placed in a container and the elected representative shall be the nominee whose name is drawn by a person who is not a nominee; and

    • (g) the employer shall post, in areas that are accessible to the plan members, a notice specifying the results of the election.

  • (4) Subject to subsection (5), the election of a representative of the retired members shall be conducted in the following manner:

    • (a) on receipt of a notice, referred to in subsection (2), the employer shall mail to each retired member a notice;

      • (i) advising the retired member of an election, and

      • (ii) establishing a period of not less than four weeks and not more than eight weeks in which nominations for the position of representative of the retired members may be made by the retired members;

    • (b) nominations for the position of a representative of the retired members shall be filed in writing with the employer;

    • (c) on the closing of the nomination period, the employer shall mail to each retired member a ballot containing the names of the nominees and specifying a period of not less than four weeks and not more than eight weeks in which the ballot must be returned to the employer;

    • (d) the election shall be conducted by the employer by secret ballot and each retired member shall be entitled to one vote for the representative to be elected;

    • (e) the representative elected shall be the nominee with the greatest number of votes;

    • (f) the employer shall notify the retired members by mail of the result of the election; and

    • (g) where two or more nominees receive an equal number of votes that is greater than the number of votes received by any other nominee, the name of each of the first-mentioned nominees shall be placed in a container and the elected representative shall be the nominee whose name is drawn by a person who is not a nominee.

  • (5) If all the plan members or retired members are

    the executive of the union, group of unions, pension fund society or other organization may name the pension committee or pension council representative.

  • (6) After an election for the position of representative of the plan members or retired members has been held pursuant to subsection (3) or (4), an election for that position shall be held thereafter at intervals not exceeding three years.

  • (7) If a pension council has been established pursuant to subsection 7.2(1) of the Act and the plan now has fewer than 50 members, the pension council shall be dissolved if a majority of the plan members so request.

  • SOR/93-109, s. 3
  • SOR/95-171, s. 6
  • SOR/2002-78, s. 4

Investments

  •  (1) Every plan shall provide that the moneys of the pension fund are to be

    • (a) invested in accordance with Schedule III; and

    • (b) invested

      • (i) in a name that clearly indicates that the investment is held in trust for the plan and, where the investment is capable of being registered, registered in that name,

      • (ii) in the name of a financial institution, or a nominee of it, in accordance with a custodial agreement or trust agreement, entered into on behalf of the plan with the financial institution, that clearly indicates that the investment is held for the plan, or

      • (iii) in the name of CDS Clearing and Depository Services Inc., or a nominee of it, in accordance with a custodial agreement or trust agreement, entered into on behalf of the plan with a financial institution, that clearly indicates that the investment is held for the plan.

  • (2) For the purposes of subsection (1), custodial agreement means an agreement providing that

    • (a) an investment made or held on behalf of a plan pursuant to the agreement

      • (i) constitutes part of the plan’s pension fund, and

      • (ii) shall not at any time constitute an asset of the custodian or nominee; and

    • (b) records shall be maintained by the custodian that are sufficient to allow the ownership of any investment to be traced to the plan at any time.

  • SOR/91-709, s. 1
  • SOR/95-86, s. 2
  • SOR/2011-85, s. 2

 The administrator of a plan shall maintain a current record that clearly identifies every investment held on behalf of the plan, the name in which the investment is made and, where appropriate, the name in which the investment is registered.

  •  (1) The administrator of a plan shall, before the day on which the plan is registered, establish a written statement of investment policies and procedures that pertain to the plan’s portfolio of investments and loans, other than those relating to any member choice account, including policies and procedures pertaining to

    • (a) categories of investments and loans, including derivatives, options and futures,

    • (b) diversification of the investment portfolio,

    • (c) asset mix and rate of return expectations,

    • (d) liquidity of investments,

    • (e) the lending of cash or securities,

    • (f) the retention or delegation of voting rights acquired through plan investments,

    • (g) the method of, and basis for, the valuation of investments that are not regularly traded at a marketplace; and

    • (h) related party transactions permitted under section 17 of Schedule III and the criteria to be used to establish whether a transaction is nominal or immaterial to the plan,

    having regard to all factors that may affect the funding and solvency of the plan and the ability of the plan to meet its financial obligations.

  • (2) The statement of investment policies and procedures referred to in subsection (1) shall include a description of the factors referred to in that subsection and the relationship of those factors to those policies and procedures.

  • (3) The administrator of a plan shall submit the statement of investment policies and procedures referred to in subsection (1)

    • (a) to any pension council that has been established, within 60 days after the later of

      • (i) the day on which the statement is established, and

      • (ii) the day on which the pension council is established; and

    • (b) where a plan is a defined benefit plan, to the actuary to the plan on or before the day that is the later of

      • (i) 60 days after the day on which the statement is established, and

      • (ii) the day on which the actuary is appointed.

  • SOR/93-299, s. 2
  • SOR/2002-78, s. 5
  • SOR/2011-85, s. 14(F)
  • SOR/2015-60, s. 2
  • SOR/2017-145, s. 2(F)
 
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