National Pensions and Benefits Law Section

British Columbia: Updated Guidelines for Requests for Solvency Extensions for Defined Benefit Pension Plans
In August 2011, the Financial Institutions Commission released Bulletin No. PEN - 11- 002, which provides guidance to plan administrators who are considering making solvency payment extension requests for a defined benefit pension plan.

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Alberta: Revised Policy on Pension Plan Membership
In October 2011, the Government of Alberta—Finance revised Policy Bulletin #7 to provide that a pension plan can be closed to new members by defining a class of members by reference to a specific date, and to clarify that a retiree under a defined benefit provision may return to work, continue to receive a pension, and also earn defined contribution benefits if the plan allows it.

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Saskatchewan: Policy on Transfer Deficiencies
On September 15, 2011, the Saskatchewan Financial Services Commission released a policy outlining the administrator’s role and obligations with respect to transfer deficiencies when a plan’s solvency ratio is less than 1:1. The policy was revised on October 26, 2011, to clarify how a transfer deficiency is to be administered on the death of a former member.

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Manitoba: Policy on Pension Plan Conversions
On June 20, 2011, the Office of the Superintendent—Pension Commission released Policy Bulletin #8 governing the conversion of a defined benefit plan to a defined contribution plan. The policy outlines the steps a sponsor and administrator must follow when converting a pension plan.

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New Developments – Central Canada

Ontario: New legislation on the division of pension assets upon breakdown of a spousal relationship comes in force effective January 1, 2012
Effective January 1, 2012, there are new rules governing the division of pension assets upon the breakdown of a spousal relationship, pursuant to O. Reg. 287/11 and O. Reg. 288/11, regulations amending the Pension Benefits Act and the Family Law Act. Also effective January 1, 2012, O. Reg. 467/11 amends O. Reg. 287/11 (Family Law Matters) by temporarily adding the unproclaimed definitions of "retired member" and "former member" in section 1.1 of the Pension Benefits Act.

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New pension forms from FSCO
New legislation governing the valuation of pension benefits upon breakdown of a spousal relationship took effect in Ontario on January 1, 2012. The Financial Services Commission of Ontario (FSCO) had previously issued draft forms pursuant to the new legislation. FSCO has now issued finalized forms, along with instructions, which can be accessed from its website.

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Changes to the Pension Benefits Guarantee Fund
Following up on stated intentions in the 2011 Budget, the Ontario Government has announced that effective January 1, 2012, it will implement changes to strengthen the Pension Benefits Guarantee Fund. The Ontario Government has announced five specific changes which include establishing a minimum asset level, two fee increases, eliminating the overall assessment cap for underfunded plans, and extending the initial waiting period for PBGF coverage of new plans.

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FSCO Pension Policy Review
In 2008, the Financial Services Commission of Ontario (FSCO) commenced a Pension Policy Review Project to review and revise active pension policies to ensure that polices are accurate and up to date with current FSCO policy positions, and legislative references. Further to this review project, FSCO has posted two revised policies in January 2012, respectively titled, Recalculation of Transfer Values and Pension Fund Administration – Responsibilities of Fund Holders. For the full text of the revised polices, visit:

http://www.fsco.gov.on.ca/en/pensions/policies/active/Documents/T800-403.pdf
http://www.fsco.gov.on.ca/en/pensions/policies/active/Documents/A100-100.pdf
Quebec: Funding Relief Measures
In November 2011, a bill was introduced in the Quebec National Assembly which would extend until December 31, 2013 certain funding measures to reduce the effects of the 2008 financial crisis on supplemental pension plans in Quebec.

Press release (French only)

New Developments: Atlantic Canada

Nova Scotia: New Pension Benefits Act Introduced
On November 15, 2011, the Nova Scotia Government introduced Bill No. 96, a new Pension Benefits Act following recent law reform initiatives in 2009 and 2010. The new Bill passed second reading on November 25, 2011, third reading on December 12, 2011 and received Royal Assent on December 15, 2011.

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The new Act has not yet been proclaimed in force.

Also on November 15, 2011, the Nova Scotia Department of Labour and Advanced Education released a draft discussion paper with working principles for draft funding regulations.

Discussion paper

Stakeholders have been asked to provide input on the working principles and on the draft funding regulations posted on December 7, 2011. Submissions are requested by January 31, 2012.

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New Brunswick: New Temporary Solvency Relief Introduced
In December 2011, the New Brunswick Government filed amendments to the Regulations under the Pension Benefits Act providing new temporary solvency relief measures. The amendments add a new window of opportunity for applications for solvency relief. The window runs for pension plans reporting between April 1, 2010 and January 1, 2012, inclusive.

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Amendments to regulations

Updated regulations
Newfoundland and Labrador: New Temporary Solvency Relief Introduced
Also in December 2011, the Newfoundland and Labrador Government filed amendments to the Solvency Funding Relief Regulations under the Pension Benefits Act providing new temporary solvency relief measures. The amendments add a new window of opportunity for applications for solvency relief. The window runs for pension plans reporting between January 1, 2010 and January 1, 2013.

Amendments to regulations

Updated regulations
Prince Edward Island: Pension Legislation Delayed
The PEI government introduced the province’s first Pension Benefits Act on December 1, 2010. The legislation was not passed before the government called an election on September 6, 2011. On October 3, 2011, the government was re-elected. A short legislative session began on November 1, 2011 and adjourned on November 9, 2011. The pension legislation has not yet been reintroduced.

Previous legislation

New Developments: Federal

In January 2012, the Office of the Superintendent of Financial Institutions (OSFI) issued the Draft Instruction Guide - Authorization of Amendments Reducing Benefits in Defined Benefit Pension Plans. The draft Guide may be used in draft form and replaces the Instruction Guide for the Authorization of Amendment Reducing Benefits in Defined Benefit Pension Plans issued in April 2006.
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Federal: PBSA Amendments
Since 2010, significant amendments to the Pension Benefits Standards Act (PBSA) and the Pension Benefits Standards Regulations (PBSR). All amendments have received royal assent however not all amendments are in force.

List of key amendments
Federal: Introduction of PRPP Legislation
On November 17, 2011, legislation was introduced in Parliament to implement the federal portion of the Pooled Registered Pension Plan framework.

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New Developments: General

CAPSA: Introduction of New Guidelines
On November 15, 2011, the Canadian Association of Pension Supervisory Authorities ("CAPSA") released the final versions of:
- Guideline No. 6 on Pension Plan Prudent Investment Practices
- Self-Assessment Questionnaire on Prudent Investment Practices
- Guideline No. 7 on the Pension Plan Funding Policy
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Supreme Court: Re Indalex
On December 1, 2011, the Supreme Court of Canada granted leave in Re Indalex, the Ontario Court of Appeal decision concerning the priority of pension plan deficits under the Companies’ Creditors Arrangement Act.

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