Prepared by:
Level Chan and Dante Manna, Stewart McKelvey
Heather Di Dio, Dentons
Francois Parent, Lavery, De Billy LLP
Allison Tremblay, Victory Square Law Office LLP
Michael Wolpert, Lawson Lundell LLP
British Columbia
(a) New Pension Legislation in Force September 30, 2015
British Columbia’s new Pension Benefits Standards Act was passed and received royal assent in 2012, but was not put into force while its Regulations were being developed. On May 2015, the BC government announced that the Act, as well as the Pension Benefit Standards Regulation and some housekeeping amendments will be in force effective September 30, 2015.
Based on recommendations from the Alberta and British Columbia Joint Expert Panel on Pension Standards, the legislation substantially harmonizes those two provinces’ regimes. It also makes assorted modifications to the existing regulatory regime, including establishing rules for various plan designs, such as target benefit; requiring immediate vesting of benefits; modifying funding requirements; and increasing disclosure requirements.
Pension Benefits Standards Act, 2012
Pension Benefits Standards Amendment Act, 2014
Order in Council and Pension Benefits Standards Regulation
Information about the changes and compliance from BC’s Superintendent of Pensions
Alberta
On December 18, 2014, the Government of Alberta amended the new Employment Pension Plans Regulation which had come into force on September 1, 2014. The amendment extended certain deadlines for compliance with the new legislation. The amendment establishes a new moratorium on solvency funding for collectively bargained multi-employer plans. The amendment also reduces the required frequency of plan administration assessments, which would otherwise have been annual. After the first assessment of the administration of the plan, which for plans with a December 31 fiscal year end must take place by December 30, 2016, assessments must be done at least every three years.
On May 21, 2015, the Superintendent further extended the deadlines to December 31, 2015 for:
(a) plan amendments to comply with the new legislation;
(b) establishing a governance policy;
(c) establishing a funding policy (benefit formula provisions); and
(d) establishing a participation agreement (non-collectively bargained multi-employer plans).
Further details including the amendment and bulletins prepared by Alberta Treasury Board and Finance can be obtained online.
Additionally, Alberta Treasury Board and Finance has released several interpretive guidelines regarding the new legislation, which are available online.
Bill 9, the Public Sector Pension Plans Amendment Act, 2014, and Bill 10, the Employment Pension (Private Sector) Plans Amendment Act, 2014, which included amendments that would allow annuity buy-outs and permit conversions of accrued defined benefits to target benefits, have been shelved.
Saskatchewan
The Pension Benefits Regulations, 1993 were amended effective December 4, 2014 to provide for non-residency unlocking. A bulletin from the Financial and Consumer Affairs Authority describing the amendment is available online.
On May 1, 2015, The Pension Benefits Regulations, 1993 were amended to provide temporary solvency deficiency payment relief for negotiated cost defined benefit pension plans. A bulletin from the Financial and Consumer Affairs Authority describing the relief is available online.
Manitoba
There have been no changes to Manitoba’s pension legislation in the period of August 1, 2014 to August 1, 2015.