New legal developments: Western Canada

Alberta

The Alberta Treasury Board and Finance has released further interpretive guidelines relating to the new Employment Pension Plan Act and associated regulations which came into force on September 1, 2014. From September to December 2015, the following interpretive guidelines were released:

Final interpretive guidelines:

• IG-11 - Cessation of Benefit Accrual
• IG-12 - Governance, Investment and Funding Policies
• IG-13 - Plan Text Document
• IG-14 - Missing Members

Drafts interpretive guidelines for consultation:

• IG-15 - Disclosure to Members and those entitled to Benefits under a Pension Plan
• IG-16 - Records Management
• IG-17 - Locked-In Retirement Accounts (LIRAs)
• IG-18 - Life Income Funds (LIFs)
• IG-19 - Successor Situations
• IG-20 - Use of Actuarial Excess and Surplus

British Columbia

1. On October 2, 2015 B.C. Reg. 183/2015 was filed under the Pension Benefits Standards Act. This regulation amends section 63 of the Pension Benefits Standards Regulations in respect of the filing requirements for actuarial valuation reports relating to the use of letters of credit to fund solvency deficiencies. Where a letter of credit will expire without renewal, or if the amount covered by the replacement letter of credit will be reduced, the requirement is to file the current actuarial valuation report. Previously, in such situations, the regulation required filing of an actuarial valuation report prepared or revised as at the date of expiry of the original letter of credit/letter of credit being replaced.
2. British Columbia’s new Pension Benefits Standards Act and the Pension Benefit Standards Regulation came in force effective September 30, 2015. In September and December 2015, the Financial Institutions Commission released a series of bulletins relating to the new legislation including checklists, filing of amendments and conversions to target benefit plans.
3. In December 2015, the Financial Institutions Commission released Bulletin PENS-15-010 – Extension of Amendment filing Deadline. Pursuant to the new pension legislation in force on September 30, 2015, plans were required to comply with the following by December 31, 2015:
   • File plan amendments with the regulator;
   • Establish a governance policy;
   • Establish a funding policy (benefit formula provisions); and
   • Establish a participation agreement (non-collectively bargained multi-employer plans).

Pursuant to this bulletin, the regulator extended the deadline for the above-referenced compliance activities to March 31, 2016.

Manitoba

On October 30 2015, Regulation 175/2015 – Solvency Exemption for Specified Non-Profit Sector Pension Plans was released. This regulation provides for a permanent exemption from the solvency funding requirements for specified non-profit pension plans registered under The Pension Benefits Act.

Saskatchewan

1. On October 14, 2015, OC 505/2015 - The Pension Benefits (Regina Civic Employees) Amendment Regulations, 2015 was released. This regulation amends the Saskatchewan Pension Benefits Regulations effective January 1, 2016 by introducing new funding provisions relating to the Regina Civic Employees Superannuation and Benefit Plan.
2. On December 17, 2015, OC 598/2015 - The Pension Benefits (Saskatoon Fire and Saskatoon Police) Amendment Regulations, 2015 was released. Effective January 1, 2016, this regulation amends the Saskatchewan Pension Benefits Regulations to set out new funding rules for The Retirement Plan for Employees of Saskatoon Board of Police Commissioners and The City of Saskatoon Fire and Protective Services Department Superannuation Plan.

Glorie Alfred is a lawyer with Morneau Shepell Ltd.