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

Short Title

1 These Regulations may be cited as the Pension Benefits Standards Regulations, 1985.

Interpretation

• 2 (1) In these Regulations,

  accepted actuarial practice

  accepted actuarial practice means the standards of practice described in paragraph 9(2)(b) of the Act, taking into account any specification made by the Superintendent under that paragraph; (normes actuarielles reconnues)

  accountant

  accountant means a person authorized to act as an accountant under the laws of a province; (comptable)

  Act

  Act means the Pension Benefits Standards Act, 1985; (Loi)

  actuarial gain

  actuarial gain[Repealed, SOR/2010-149, s. 1]

  actuarial report

  actuarial report means an actuarial report filed with the Superintendent under subsection 9.01(5) or 12(2) of the Act or a copy of the report that is provided under subsection 9.01(6) of the Act; (rapport actuariel)

  actuary

  actuary[Repealed, SOR/2011-85, s. 1]

  adjusted solvency asset amount

  adjusted solvency asset amount means the amount determined by multiplying the average solvency ratio by the amount of the solvency liabilities; (montant rajusté de l’actif de solvabilité)

  average solvency ratio

  average solvency ratio means the solvency ratio determined in accordance with subsections 9(8) to (11); (ratio de solvabilité moyen)

  book value

  book value, in respect of an asset, means the cost of acquisition to the person acquiring the asset, including all direct costs associated with the acquisition; (valeur comptable)

  bridging benefit

  bridging benefit means a periodic payment that is provided under a plan to a former member of the plan for a temporary period of time after the former member’s retirement for the purpose of supplementing the former member’s pension benefit until the former member is eligible to receive benefits under the Old Age Security Act or is eligible for or commences to receive retirement benefits under the Canada Pension Plan or An Act respecting the Quebec Pension Plan; (prestation de raccordement)

  Canadian resource property

  Canadian resource property has the same meaning as in paragraph 66(15)(c) of the Income Tax Act; (avoirs miniers canadiens)

  deferred life annuity

  deferred life annuity means a life annuity that

  • (a) commences periodic payments no earlier than one year after its purchase,

  • (b) provides for equal periodic payments or periodic payments that have been varied by reference to

    • (i) the amount of any pension payable under the Old Age Security Act,

    • (ii) the amount of any pension payable under either the Canada Pension Plan or a provincial pension plan as defined in section 3 of the Canada Pension Plan,

    • (iii) the Consumer Price Index for Canada as published by Statistics Canada under the authority of the Statistics Act, or

    • (iv) the value of the assets held in a segregated fund, and

  • (c) is issued by a person authorized to carry on a life insurance business in Canada; (prestation viagère différée)

  experience gain

  experience gain[Repealed, SOR/2010-149, s. 1]

  experience loss

  experience loss[Repealed, SOR/2010-149, s. 1]

  financial institution

  financial institution means

  • (a) except in section 11.1,

    • (i) a bank or an authorized foreign bank within the meaning of section 2 of the Bank Act,

    • (ii) a body corporate to which the Trust and Loan Companies Act applies,

    • (iii) a cooperative credit society to which the Cooperative Credit Associations Act applies,

    • (iv) an insurance company to which the Insurance Companies Act applies,

    • (v) a trust, loan or insurance corporation incorporated by or under an Act of the legislature of a province,

    • (vi) a cooperative credit society incorporated and regulated by or under an Act of the legislature of a province,

    • (vii) an entity that is incorporated or formed by or under an Act of Parliament or of the legislature of a province and that is primarily engaged in dealing in securities, including portfolio management and investment counselling, or

    • (viii) a foreign institution; and

  • (b) for the purposes of section 11.1, those entities referred to in subparagraphs (a)(i) to (vi) or a foreign institution for which an order of the Superintendent has been made under section 574 of the Insurance Companies Act; (institution financière)

  foreign institution

  foreign institution means an entity that is

  • (a) engaged in the business of banking, the trust, loan or insurance business, the business of a cooperative credit society or the business of dealing in securities or is otherwise engaged primarily in the business of providing financial services, and

  • (b) incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province; (institution étrangère)

  going concern assets

  going concern assets means the value of the assets of a plan, including income due and accrued, determined on the basis of a going concern valuation; (actif évalué en continuité)

  going concern deficit

  going concern deficit means the amount by which the going concern liabilities exceed the going concern assets; (déficit évalué en continuité)

  going concern excess

  going concern excess means the amount by which the going concern assets exceed the going concern liabilities; (excédent évalué en continuité)

  going concern liabilities

  going concern liabilities means the present value of the accrued benefits of a plan as determined on the basis of a going concern valuation, including

  • (a) amounts due and unpaid;

  • (b) in the case of a negotiated contribution plan, a provision for adverse deviations; and

  • (c) in the case of any other plan, a provision for adverse deviations, if any; (passif évalué en continuité)

  going concern ratio

  going concern ratio means the ratio of the going concern assets to the going concern liabilities, on the basis of the most recent actuarial report, excluding those going concern assets and going concern liabilities that are attributable to benefits paid by means of an insurance contract or an annuity, other than a revocable annuity; (ratio de continuité)

  going concern special payment

  going concern special payment means a special payment made in respect of an unfunded liability under subsection 9(3); (paiement spécial de continuité)

  going concern valuation

  going concern valuation means a valuation of the assets and liabilities of a plan using actuarial assumptions and methods that are in accordance with accepted actuarial practice for the valuation of a plan that is not expected to be terminated or wound up; (évalué en continuité)

  immediate life annuity

  immediate life annuity means a life annuity that

  • (a) commences periodic payments within one year after its purchase,

  • (b) provides for equal periodic payments or periodic payments that have been varied by reference to

    • (i) the amount of any pension payable under the Old Age Security Act,

    • (ii) the amount of any pension payable under either the Canada Pension Plan or a provincial pension plan as defined in section 3 of the Canada Pension Plan,

    • (iii) the Consumer Price Index for Canada as published by Statistics Canada under the authority of the Statistics Act, or

    • (iv) the value of the assets held in a segregated fund, and

  • (c) is issued by a person authorized to carry on a life insurance business in Canada; (prestation viagère immédiate)

  insured plan

  insured plan means a plan in which all benefits are paid by means of an annuity or insurance contract issued by a person authorized to carry on a life insurance business in Canada and under which the person is obligated to pay all the benefits set out in the plan; (régime assuré)

  investment fund

  investment fund means a fund — established by a corporation, limited partnership or trust — the purpose of which is to invest the moneys of two or more investors and the shares or units of which are allocated to each investor in proportion to the interest of the investor in the assets of the fund; (fonds de placement)

  letter of credit

  letter of credit means a letter of credit that meets the requirements of subsection 9.1(5); (lettre de crédit)

  life income fund

  life income fund means a registered retirement income fund, as defined in subsection 146.3(1) of the Income Tax Act, that meets the requirements set out in section 20.1; (fonds de revenu viager)

  locked-in registered retirement savings plan

  locked-in registered retirement savings plan means a registered retirement savings plan, as defined in subsection 146(1) of the Income Tax Act, that meets the requirements set out in section 20; (régime enregistré d’épargne-retraite immobilisée)

  marketplace

  marketplace means

  • (a) an exchange;

  • (b) a quotation and trade-reporting system;

  • (c) any other entity that

    • (i) constitutes, maintains or provides a market or facility for bringing together buyers and sellers of securities or derivatives,

    • (ii) brings together the orders for securities or derivatives of multiple buyers and sellers, and

    • (iii) uses established, non-discretionary methods under which the orders interact and with which the buyers and sellers entering the orders agree to the terms of a trade; (marché)

  market value

  market value, in respect of an asset, means the price that would be obtained in the purchase or sale of the asset in an open market under conditions requisite to a fair transaction between parties who are at arm’s length and acting prudently, knowledgeably and willingly; (valeur marchande)

  member choice account

  member choice account means an account in relation to which a member, former member, survivor or former spouse or former common-law partner of the member or former member is permitted to make investment choices under a plan referred to in subsection 8(4.2) of the Act; (compte accompagné de choix)

  mutual fund

  mutual fund or pooled fund[Repealed, SOR/2015-60, s. 1]

  normal cost

  normal cost means the cost of benefits that are to accrue during a plan year, as determined on the basis of a going concern valuation, excluding special payments and including

  • (a) in the case of a negotiated contribution plan, a provision for adverse deviations of at least 5%; and

  • (b) in the case of any other plan, a provision for adverse deviations, if any; (coûts normaux)

  plan

  plan means a pension plan; (régime)

  plan year

  plan year[Repealed, SOR/2011-85, s. 1]

  prior second valuation date

  prior second valuation date in relation to a valuation date, means the day two years prior to that valuation date; (deuxième date d’évaluation antérieure)

  prior valuation date

  prior valuation date in relation to a valuation date, means the day one year prior to that valuation date; (date d’évaluation antérieure)

  PRPP

  PRPP means a plan registered under section 12 of the Pooled Registered Pension Plans Act; (RPAC)

  restricted life income fund

  restricted life income fund means a registered retirement income fund, as defined in subsection 146.3(1) of the Income Tax Act, that meets the requirements set out in section 20.3; (fonds de revenu viager restreint)

  restricted locked-in savings plan

  restricted locked-in savings plan means a registered retirement savings plan, as defined in subsection 146(1) of the Income Tax Act, that meets the requirements set out in section 20.2; (régime d’épargne immobilisée restreint)

  segregated fund

  segregated fund means a fund established by a corporation that is duly authorized to operate a fund in which contributions to a pension plan are deposited and the assets of which are held exclusively for the purposes of that plan alone or that plan and one or more other pension plans; (caisse séparée)

  simplified pension plan

  simplified pension plan[Repealed, SOR/2015-60, s. 1]

  solvency assets

  solvency assets means the amount determined by the formula

  A + B - C

  where

  A

  is the market value of the assets that relate to the defined benefit provisions of a plan as determined at the valuation date,

  B

  is the face value of all letters of credit in effect on the valuation date, other than those being used to fund a plan under Part 3 of the Solvency Funding Relief Regulations or Part 3 of the Solvency Funding Relief Regulations, 2009, up to a maximum of 15% of the solvency liabilities of the plan as determined at the valuation date, and

  C

  is the estimated expense of the winding-up of the plan as certified by an actuary; (actif de solvabilité)

  solvency deficiency

  solvency deficiency means the amount by which the solvency liabilities exceed the adjusted solvency asset amount; (déficit de solvabilité)

  solvency excess

  solvency excess means the amount by which the adjusted solvency asset amount exceeds the solvency liabilities; (excédent de solvabilité)

  solvency liabilities

  solvency liabilities means the liabilities of a plan that relate to defined benefit provisions and are determined on the basis that the plan is terminated; (passif de solvabilité)

  solvency ratio

  solvency ratio means

  • (a) for a plan that is a defined contribution plan that does not have defined benefit provisions, and an insured plan, one; and

  • (b) for any other plan, the ratio of the solvency assets to the solvency liabilities, excluding those solvency assets and solvency liabilities that are attributable to benefits that are paid by means of an annuity, other than a revocable annuity, or an insurance contract, based on the most recent actuarial report; (ratio de solvabilité)

  solvency special payment

  solvency special payment means a special payment made under paragraph 9(4)(c) or (d); (paiement spécial de solvabilité)

  solvency valuation

  solvency valuation means a valuation of the assets and liabilities of a plan using actuarial assumptions and methods that are in accordance with accepted actuarial practice for the valuation of a plan, determined on the basis that the plan is terminated; (évaluation de la solvabilité)

  special payment

  special payment means a payment or one of a series of payments determined in accordance with section 9 and made for the purpose of liquidating an unfunded liability or a solvency deficiency; (paiement spécial)

  valuation date

  valuation date means the date on which the actuarial report values the liabilities of a plan; (date d’évaluation)

• (2) Disability means

  • (a) for the purpose of paragraph 18(2)(b) of the Act, a mental or physical condition that a physician has certified as being likely to shorten considerably the life expectancy of a member; and

  • (b) for the purpose of determining pensionable age, a mental or physical condition that a physician has certified as rendering a member unable to perform the member’s duties as an employee. (invalidité)