Advanced Search

Pension Benefits Regulations

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.
Pension Benefits Regulations
made under Section 139 of the

Pension Benefits Act

S.N.S. 2011, c. 41

O.I.C. 2015-133 (April 21, 2015, effective June 1, 2015), N.S. Reg. 200/2015

as amended to O.I.C. 2015-310 (September 18, 2015), N.S. Reg. 326/2015

Table of Contents

Please note: this table of contents is provided for convenience of reference

and does not form part of the regulations.
Click here to go to the text of the regulations.

 

Part 1: Interpretation and Application

Definitions and Calculations

Citation

Definitions

Calculation of actuarial gain or loss

Calculation of going concern assets

Calculation of solvency assets

Determination of solvency liabilities

Solvency liability adjustment

Determination of solvency deficiency

Solvency valuation

Calculation of transfer ratio

Book value substituted for market value in calculations

Jointly Sponsored Pension Plans

Additional criteria for jointly sponsored pension plans

Administrator’s statement about criteria for jointly sponsored pension plan

Specified Multi-Employer Pension Plans

Specified multi-employer pension plan class of plans

Eligibility criteria for specified multi-employer pension plans

Election to be specified multi-employer pension plan

Notice of election to members

Exemptions from the Act and Regulations

Exempted pension plans

Amendment to avoid revocation of registration under federal Income Tax Act

Pension plans maintained for employees of 2 or more employers

Nova Scotia Health Employees Pension Plan not a multi-employer pensionplan

Significant shareholder plans

Ensuring no conflict of interest for multi-employer pension plan

Notices and summaries of contributions not required for certain multi-employer pension plans

Exemption from registration or audit under reciprocal agreement

Designated Jurisdictions

Designated jurisdictions prescribed

 

Part 2: Pension Plan Administration

Registration of Pension Plans and Amendments, and Filing of Agreements

Application for registration of pension plan

Application for registration of amendment to pension plan

Notice and explanation of pension plan amendment

Valuation report on amendment to pension plan

Amendments that are permitted only if cost of amendments paid into pensionfund

Amendment to specified multi-employer pension plan requiring liquidation ofgoing concern unfunded liability

Filing of reciprocal transfer agreements

Requirements for reciprocal transfer agreements

Advisory Committees

Advisory committee definition

Notice and information about establishing advisory committee

Voting on establishing advisory committee

Notice concerning result of vote to establish advisory committee

Nominating advisory committee representatives

Voting on advisory committee representatives

Notice of results of vote on advisory committee representatives

Term of office for advisory committee

Participating on advisory committee

Advisory committee procedure, governance and operations

Pension Fund Investment and Administration

Pension fund trustee

Investment of plan assets must be in accordance with regulations

Statement of investment policies and procedures

Record of investments

Designated jurisdictions—alternate corresponding provisions

Reporting to the Superintendent

Pension plan that provides only defined contribution benefits exempted

Initial valuation reports

Valuation reports at regular intervals

Valuation reports for multi-employer pension plans

Solvency concerns indicated in initial or review valuation report

Valuation report for plan that ceases to be designated plan or individualpension plan

Superintendent may require additional valuation report

Payment of contributions in accordance with additional valuation report

Time period for filing valuation reports

Cost certificates

Reports and certificates to be prepared by actuary, accountant or otherauthorized person

Use of actuarial methods and assumptions in preparing valuation and wind-upreports

Actuarial information summary to accompany valuation report

Copy of report to agent of administrator

Filing annual information return

Financial statements required to be filed for pension plans

Content and preparation of financial statements

Auditor’s report on financial statements

Auditor’s duty to report to administrator and Superintendent

Extension of time limit for filing of document

Information to Members and Others

Member and eligible member information

Information to be provided where plan permits optional contributions

Information to be provided before variable benefits account established

Annual statement to members

Annual statement to variable benefits participant

Statement on termination of employment or membership

Statement to variable benefits participant on transfer from variable benefitsaccount

Death benefits statement

Statement after death of variable benefits participant

Notification of options to retiring member

Retirement statement to member

Information required to be available on request

Inspection of filed records of pension plan and pension fund

Records Respecting Pension Plans

Retention of records

 

Part 3: Funding of Pension Plans

Payment

Employer contributions and employee contributions set out in pension plan

Minimum contributions to pension plan

Sufficiency of contributions for a multi-employer pension plan

Sufficiency of contributions for Specified multi-employer pension plan

Contributions made to a jointly sponsored pension plan

Previous year credit balance used to reduce employer payments

Funding of escalated adjustments

When and how payment of contributions to be paid

Time limits for contributions under pension plans that are subject to collectiveagreements

Offset on conversion of plan to defined contribution benefit

Restrictions on reductions or suspensions of contributions

Use of actuarial gain

Administrator’s or agent’s notice that contributions not paid

Summary of contributions

Special Payments—General

Minimum amount of special payments

Interest payments required for employers who provide letter of credit

Alternative determination of special payments for jointly sponsored pensionplan

Previous year credit balance

Adjustment of special payments for solvency excess

Special Payments—Temporary Exceptions

Temporary exceptions to minimum special payments—going concernunfunded liabilities

Temporary exceptions to minimum special payments—solvency deficienciesarising under former regulations

Definitions for election to extend amortization period—Sections 107 to 116

One-time election to extend amortization period

Filing election to extend amortization period

Information statements and notices of objection to be provided for proposedelection

Last date for accepting notices of objection

Administrator to keep notices of objection

Prohibition against identifying persons who submit notices of objection

Successful election to extend amortization period

Certificate of consent to election

Notice of extension of amortization period to members

Progress report on special payments under extended amortization period

Letters of Credit

Prescribed requirements for letters of credit

Prescribed employers

Prescribed person or entity provided letter of credit

Determining solvency liabilities for subsection 77(3) of Act

Deadlines for providing letters of credit

When trustee must demand payment of amount of letter of credit

Notification by trustee if payment demanded under letter of credit

Notification by trustee if issuer of letter of credit fails to pay on demand

 

Part 4: Membership, Benefits and Interest

Pension Plan Membership

Prescribed classes of employees

Variations and Reductions for CPP, QPP and OAS

Variation of pension benefits for CPP or QPP entitlements

Calculating reduction when integrating retirement benefits with CPP, QPP andOAS

Reduction of bridging benefits

Application for withdrawal from pension plan in circumstances of shortenedlife expectancy

Deferred pension under pension plan insured by individual level-premiumcontracts issued before qualification date

Portion of benefits attributable to employment after January 1, 1988—finalaverage or best average earnings plans

Death Benefit Entitlements

Exercising entitlement to pre-retirement death benefit under subsection 67(1)or (2) of Act

Exemption from reduction in pre-retirement death benefit entitlement

Offset in relation to pre-retirement death benefits

Commuted Value and Limits on Transfers

Commuted value of pension benefits and ancillary benefits for transfer

Calculating portion of commuted value available for transfer

Limits on transferring commuted value of pension benefits

Balance of transfer if less than 100% of commuted value transferred

Exemptions to limits on transfers

Benefits that result from voluntary contributions for past service

Reciprocal transfer agreement—50% rule

Entitlement to excess amount of commuted value of converted benefits

Additional prescribed ancillary benefits

Bridging benefits not taken into account

Phased Retirement Option

Definition of phased retirement option

Application for phased retirement option

Participation in phased retirement option

Variable Pension Benefits

Definitions for Sections 149 to 151

Pension plan provisions for variable pension benefits

Additional transfers to, and transfer from, variable benefits account

Maximum amount of variable pension benefits payable

Optional Benefits

Optional benefits prescribed

Interest

Definitions for crediting interest on contributions—Sections 154 to 158

When contribution interest accrues

Interest rates for defined contribution pension plan

Interest rates for defined benefit pension plan

Interest for pension plans that provide both defined contribution benefits anddefined benefits

Interest rate on termination of employment or membership

Interest on lump sum payments

Interest on commuted value of former member’s deferred pension

Interest on ordered repayment of money or return of assets

Interest on commuted value on wind-up of plan

Withdrawing Surplus from Pension Plan

Notice of application to withdraw surplus from continuing pension plan

Application to withdraw surplus from continuing pension plan

Determining surplus for continuing pension plan

Notice of application to withdraw surplus from plan being wound up

Application to withdraw surplus from plan being wound up

Notice of intention to enter into agreement for payment of surplus to employer

Payments in accordance with election re surplus

Number of persons for purposes of agreement regarding payment of surplus toemployer

 

Part 5: Wind-up of Pension Plans

Notice of intended wind-up

Statement of member entitlements on wind-up

Payments in accordance with election on wind-up

Prescribed circumstances for ordering wind-up

Wind-up report

Additional information with wind-up report

Minimum commuted value as of effective date of wind-up

Payments exempt under subsection 94(3) of Act

Payments out of pension plan on wind-up

Reduction in benefits on wind-up

Documents required to be filed within 6 months of wind-up

Notice of distribution of all assets of pension plan

Payment of outstanding amounts on wind-up

Payments on wind-up of pension plan other than jointly sponsored pensionplan

Payments of any additional amounts on wind-up of jointly sponsored pensionplan

Administrator’s responsibilities during wind-up if additional funding required

Definitions for election to exclude jointly sponsored pension plan from Section97 of Act—Sections 188 to 194

Notice of vote

Vote on whether to make election to exclude

Last date for accepting election forms

Maintenance of election forms

Prohibition against identifying persons who submit election forms

Successful election to exclude

Notice of election

 

Part 6: Withdrawals and Transfers

Withdrawals and Transfers from Pension Plans

Direction to administrator to exercise entitlement under subsection 61(5) ofAct

Direction to administrator to transfer into registered retirement savingsarrangement

Transfers to a retirement savings arrangement under clause 61(1)(b) of Act

Transfers of excess amount into LIRA or LIF

Life Annuities, LIRAs and LIFs

Life annuities

Purchasing LIRAs

Contracts establishing and governing LIRAs

Administrator’s duties respecting transfers to LIRAs

Conditions for transferring assets from LIRAs

Amending LIRAs

Purchasing LIFs

Contracts establishing and governing LIFs

LIF filing requirements and Superintendent’s list

Administrator’s duties respecting transfers to LIFs

Conditions for transferring assets from LIFs

Amending LIFs

Withdrawals from LIRAs and LIFs

Definitions for circumstances of financial hardship—Sections 212 to 230

Prescribed circumstances of financial hardship

Application to Superintendent for consent to withdraw funds from LIRA orLIF in circumstances of financial hardship

Declaration about a spouse for withdrawal from LIRA or LIF

Mortgage default circumstance application information

Medical expenses circumstance application information

Rental default circumstance application information

Reduced income circumstance application information

Superintendent may require additional information

Superintendent entitled to rely on information

Stale-dated document not valid for application

Only 1 application in 12-month period

Calculating maximum consented amounts

Consented amount may be lower than requested

Subsequent applications prohibited if funds withdrawn

Superintendent’s decision

Notification of decision

Owner authorized to receive payment

Payment after consent

Stale-dated consent is nullity

Withdrawal from LIRA or LIF in circumstances of shortened life expectancy

Withdrawal from LIRA or LIF in circumstances of non-residency

Withdrawal of small amounts from LIRA or LIF at age 65

 

Part 7: Division of Pension Entitlement and Compliance with Attachment

Division of Pension Entitlement Between Spouses

Definitions for division of pension entitlement—Sections 235 to 252

Application of Sections 234 to 252

Matrimonial Property Act settlements

Separation date specified in court order or domestic contract

Information about pension plan, LIRA or LIF provided to spouse

Notice to member, former member or retired member of spouse’s request

Limited members

Information to be provided to limited member

Transfer of proportionate share out of pension plan

Limited member’s separate pension resulting from division of defined benefit

End of entitlement to limited member’s proportionate share

Death of member, former member or limited member entitled to definedbenefit

Variation of payment to person with shortened life expectancy and payment ofcommuted value if benefit is small

Calculation of proportionate share of defined contribution benefit

Calculation of proportionate share of LIRA or LIF

Calculation of proportionate share of pension, defined benefit or pre-retirementdeath benefit in respect of defined benefit

Adjustment of a member’s or former member’s defined benefit

Notice to spouse if member’s, former member’s or retired member’s interestmay be affected

Administrative fees incurred to satisfy entitlement of spouse

Complying with Attachment

Costs of complying with attachment under Maintenance Enforcement Act

 

Schedule 1: Permitted Investments

Definitions for Schedule 1

Indirect investment by administrator

Person in control

Subsidiary corporations

Affiliated entities

Substantial investments

Associated with person or pension plan

Application of this Schedule

Quantitative limits on lending or investing money of pension plan

Limits on investing—securities of a corporation

Limits on investing—securities of real estate corporation

Limits on investing—securities of resource corporation

Limits on investing—securities of investment corporation

Transactions for the purposes of Sections 15 and 16 of Schedule

Prohibited related party investments and transactions

Permitted related party investments and transactions

 

Schedule 2: Letters of Credit

Definitions for this Schedule

Letters of credit—criteria

Providing copy of trust agreement

Issuers of letters of credit

Matters that must be included in letter of credit

Matters that must be included in trust agreement

 

Schedule 3: Nova Scotia LIRA Addendum

Definitions for this Schedule

Transferring assets from LIRAs

Information to be provided by financial institution on transfers of assets of LIRAs

Information to be provided annually by financial institution

Death benefits

Waiver of entitlement to death benefits by spouse

Information to be provided by financial institution on death of owner

Definitions for this Schedule

Fiscal year of LIFs

Reference rate criteria

Periodic payments of income out of LIFs

Amount of income payments from LIFs

Minimum annual LIF withdrawal

Pro-rating amount of withdrawal if initial fiscal year less than 12 months

Maximum annual life income from LIF that does not provide for temporary income

Withdrawal of temporary income from LIFs

Maximum temporary income for fiscal year

Maximum life income withdrawal from LIFs

Maximum annual income payable if financial institution guarantees rate of return ofLIFs

Income in excess of maximum

Information to be provided annually by financial institution

Transferring assets from LIFs

Information to be provided by financial institution on transfer of balance of LIFs

Information to be provided upon transfer of additional amounts to LIFs

Death benefits

Waiver of entitlement to death benefits by spouse

Information to be provided by financial institution on death of owner

 

Schedule 5: Life Income Fund—Factor F

 

Schedule 6: Life Income Fund—Temporary Income Factor D

Part 1: Interpretation and Application

Definitions and Calculations

Citation

1     These regulations may be cited as the Pension Benefits Regulations.

Definitions

2     In these regulations,

 

“Act” means the Pension Benefits Act;

 

“actuarial gain” means a gain as calculated under Section 3;

 

“actuarial loss” means an actuarial loss as calculated under Section 3;

 

“actuary” means a Fellow of the Canadian Institute of Actuaries;

 

“annual information return” means the annual information return required to be filedunder subsection 31(1) of the Act;

 

“annual statement to members” means the written statement required to be sentunder Section 40 of the Act and in accordance with Section 74;

 

“approved form” means a form that the Superintendent has approved and requires tobe used under subsection 137(1) of the Act, which the Superintendent may makeavailable through the Pension Regulation Division or on its website;

 

“book value” of an asset, means the cost of acquisition to the person acquiring theasset, including all direct costs associated with the acquisition;

 

“Canadian Institute of Actuaries Standards of Practice” means the CanadianInstitute of Actuaries Standards of Practice developed and adopted by the ActuarialStandards Board, as amended, and published by the Canadian Institute of Actuariesand made available to the public from the Canadian Institute of Actuaries’ offices oron their website;

 

“certified copy” of a document to be filed or submitted to the Superintendent underthese regulations, means a copy that is certified to be a true copy of the originaldocument by

 

                         (i)     the person required or permitted to file or submit it, or

 

                         (ii)    an authorized official of the person referred to in subclause (i);

 

“cost certificate” means a cost certificate prepared in accordance with Sections 60and 61;

 

“CPP” means the Canada Pension Plan (Canada);

 

“deferred life annuity” means a life annuity under Section 199, that

 

                         (i)     commences payments no earlier than one year after its purchase,

 

                         (ii)    provides for equal periodic payments or periodic payments that havebeen varied by reference to

 

                                  (A)   the amount of any pension playable under the Old Age Security Act(Canada),

 

                                  (B)   the amount of any pension payable under either the CanadaPension Plan (Canada) or a provincial pension plan as defined inSection 3 of the Canada Pension Plan (Canada),

 

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

 

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

 

                         (iii)   is issued by person authorized to carry on a life insurance business inCanada;

 

“designated plan” means a pension plan that is a designated plan for the purposes ofthe federal Income Tax Regulations;

 

“domestic contract” means a written agreement referred to in and for the purpose ofSection 74 of the Act that provides for a division between spouses of any pensionbenefit, deferred pension and pension, and includes a marriage contract as defined inthe Matrimonial Property Act;

 

“employee contributions” means all sums received by an employer from anemployee or deducted from an employee’s pay as the employee’s contributions to apension plan;

 

“employer contributions” means all contributions made by an employer, or by aperson or entity required to make contributions on behalf of an employer, into apension fund or to an insurance company, as the employer’s contributions to apension plan;

 

“escalated adjustment” means an adjustment made to a deferred pension of a formermember or to the pension of a retired member that

 

                         (i)     is not capable of being determined with certainty at the time the plan or arelevant amendment to the plan is submitted to the Superintendent forregistration because the adjustment is related to the investment earningsof the pension fund or to future changes in a general wage or price index,or

 

                         (ii)    is an increase in the pension or deferred pension at a fixed annualpercentage rate specified in the plan;

 

“federal Income Tax Act” means the Income Tax Act (Canada) and, unless specifiedotherwise, includes the regulations made under that Act;

 

“federal Income Tax Regulations” means the Income Tax Act Regulations (Canada)made under the federal Income Tax Act;

 

“financial institution” means any of the following:

 

                         (i)     a bank,

 

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

 

                         (iii)   a cooperative credit society to which the Co-operative Associations Actapplies,

 

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

 

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

 

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

 

                         (vii)  an entity that is incorporated or formed by or under an Act of Parliamentor of the legislature of a province and that is primarily engaged in dealingin securities, including portfolio management and investmentcounselling, or

 

                         (viii) a foreign institution;

 

“fiscal year” of a pension plan means a period of no longer than 12 months and,unless otherwise stated in documents that create and support the plan, is deemed tobe the period from January 1 to December 31, inclusive;

 

“foreign institution” means, for the purposes of the definition of “financialinstitution”, an entity that meets all of the following criteria:

 

                         (i)     it is incorporated or formed otherwise than by or under an Act ofParliament or of the legislature of a province,

 

                         (ii)    it is engaged in any of the following:

 

                                  (A)   the business of banking,

 

                                  (B)   the trust, loan or insurance business,

 

                                  (C)   the business of a cooperative credit society,

 

                                  (D)   the business of dealing in securities,

 

                                  (E)   the business of providing financial services as its primary business;

 

“former regulations” means the Pension Benefits Regulations, N.S. Reg. 164/2002,made under the former Act;

 

“going concern assets” means the value of the assets and special payments in respectof a pension plan, as calculated under Section 4;

 

“going concern liabilities” means the present value of the accrued benefits of apension plan determined on the basis of a going concern valuation;

 

“going concern unfunded liability” means an amount by which the sum of a pensionplan’s going concern liabilities and its previous year credit balance exceeds its goingconcern assets;

 

“going concern valuation” means a valuation of the assets and liabilities of a pensionplan using actuarial methods and assumptions that are consistent with acceptedactuarial practice for the valuation of a continuing pension plan;

 

“going concern valuation interest rate” means, unless otherwise stated in theseregulations, the interest rate used to value the liabilities of the pension plan in a goingconcern valuation;

 

“government” means Her Majesty in right of Nova Scotia, an agent of Her Majestyor a municipality;

 

“Handbook of the Canadian Institute of Chartered Accountants” means theHandbook of the Canadian Institute of Chartered Accountants, as amended,published by the Canadian Institute of Chartered Accountants and made available tothe public from the Canadian Institute of Chartered Accountants’ offices or on theirwebsite;

 

“immediate life annuity” means a life annuity under Section 199 that commencespayments within 1 year of its purchase and otherwise meets the requirements ofsubclauses (ii) and (iii) of the definition of “deferred life annuity”;

 

“individual pension plan” means a pension plan that is an individual pension plan forthe purposes of the federal Income Tax Regulations;

 

“insured pension plan” means a pension plan in which all benefits are paid by meansof an annuity or insurance contract issued by a person authorized to carry on a lifeinsurance business in Canada and under which the person is obligated to pay all thebenefits set out in the plan;

 

 

“letter of credit” means a letter of credit provided by an employer instead of makingpayments into a pension fund with respect to a solvency deficiency, in accordancewith Section 77 of the Act, Sections 117 to 124 and Schedule 2: Letters of Credit;

 

“LIF” or “life income fund” means a registered retirement income fund that is aregistered retirement savings arrangement as defined in clause 2(as) of the Act andmeets the requirements in Sections 205 to 210 and Schedule 4: Nova Scotia LIFAddendum;

 

“life annuity” means a deferred life annuity or an immediate life annuity;

 

“LIRA” or “locked-in retirement account” means a registered retirement savings planthat is a registered retirement savings arrangement as defined in clause 2(as) of theAct and meets the requirements in Sections 200 to 204 and Schedule 3: Nova ScotiaLIRA Addendum, and includes a registered retirement savings plan establishedunder a contract made before January 1, 2003, for the purposes of a transfer underthe former Act;

 

“market value” means, in relation to an asset, the price that would be obtained in thepurchase or sale of the asset in an open market under conditions requisite to a fairtransaction between parties who are at arm’s length and acting prudently,knowledgeably and willingly;

 

“maximum funding valuation” means a maximum funding valuation as described inthe federal Income Tax Regulations for the purpose of those regulations and thefederal Income Tax Act;

 

“municipality” means a municipality as defined in the Municipal Government Act;

 

“normal cost” means , in relation to a pension plan, the cost of pension benefits andancillary benefits allocated to the plan’s fiscal year, determined on the basis of agoing concern valuation;

 

“OAS” means the Old Age Security Act (Canada);

 

“owner” means

 

                         (i)     in relation to a LIRA, a person who is listed as eligible to purchase aLIRA in subsection 200(2), and who has purchased a LIRA,

 

                         (ii)    in relation to a LIF, a person who is listed as eligible to purchase a LIF insubsection 205(2) and who has purchased a LIF,

 

                         (iii)   in relation to a life annuity, any of the following:

 

                                  (A)   a former member, acting in accordance with subsection 61(1)(c) ofthe Act, who has purchased a life annuity,

 

                                  (B)   a former member, acting in accordance with subsection 61(1)(b) ofthe Act and clause 2(1)(d) of Schedule 3: Nova Scotia LIRAAddendum, who has purchased a life annuity,

 

                                  (C)   a former member, acting in accordance with subsection 61(1)(b) ofthe Act and clause 15(1)(b) of Schedule 4: Nova Scotia LIFAddendum, who has purchased an immediate life annuity;

 

“pensionable earnings” means the earnings on which contributions to a pension planare based in accordance with the documents that create and support the plan;

 

“physician” means a physician who is licensed to practise medicine in a jurisdictionin Canada;

 

“prescribed fee” means the applicable fee prescribed by the Pension Benefits ActFees Regulations made by the Minister under Section 136 of the Act;

 

“pre-retirement death benefit” means a pension entitlement of a spouse or otherbeneficiary or personal representative of a member, former member or retiredmember in accordance with Section 67 of the Act;

 

“previous year credit balance”, in relation to a valuation report or cost certificate,means the previous year credit balance determined in accordance with Section 102;

 

“public accountant” means a public accountant licensed under the PublicAccountants Act;

 

“QPP” means An Act Respecting the Quebec Pension Plan (Quebec);

 

“retirement savings arrangement” is a “prescribed retirement savings arrangement”as that term is used in the Act, and means a

 

                         (i)     LIRA, or

 

                         (ii)    LIF;

 

“significant shareholder” of an employer who contributes to a pension plan means anindividual who, alone or in combination with a parent, spouse or child, owns or has abeneficial interest, directly or indirectly, in shares that represent 10% or more of thevoting rights attached to the shares of the employer;

 

“solvency asset adjustment” means the solvency asset adjustment calculated underSection 6;

 

“solvency assets” means solvency assets calculated under Section 5;

 

“solvency deficiency” means a solvency deficiency determined in accordance withSection 9;

 

“solvency liabilities” means solvency liabilities determined in accordance withSection 7;

 

“solvency liability adjustment” means the amount specified by Section 8;

 

“solvency valuation” means a valuation of the solvency assets and solvencyliabilities of a pension plan in accordance with Section 10, using actuarial methodsand assumptions that are consistent with accepted actuarial practice for the valuationof a pension plan, determined on the basis that the plan is being wound up andotherwise meeting the requirements of these regulations;

 

“solvency valuation interest rate” means, unless otherwise stated in these regulations,the interest rate used to calculate the solvency liabilities in the valuation report;

 

“special allowance” means a bridging benefit that is adjusted according to anyincome the retired member earns from employment with the employer aftertermination;

 

“special payment” means a payment, or 1 of a series of payments, made to liquidatea going concern unfunded liability or a solvency deficiency in relation to the pensionbenefits under a pension plan, and determined in accordance with

 

                         (i)     Section 99 or 101, for the minimum amount of payments required inrelation to a going concern unfunded liability or a solvency deficiency,

 

                         (ii)    Section 104, for payments made under temporary exceptions to theminimum amount of payments required in relation to a going concernunfunded liability,

 

                         (iii)   Section 105, for payments made under temporary exceptions to theminimum amount of payments required in relation to a solvencydeficiency,

 

                         (iv)   Section 107, for payments made under an elected extended amortizationperiod in relation to a solvency deficiency;

 

“specified multi-employer pension plan” means a multi-employer pension plan asdescribed in Section 15;

 

“transfer deficiency” means the amount by which the commuted value of a benefitdetermined in accordance with subsection 135(1) exceeds the transfer value of thatbenefit determined in accordance with Section 136;

 

“transfer ratio” means the transfer ratio calculated under Section 11;

 

“valuation date” means the date as of which assets and liabilities are valued for thepurposes of the going concern valuation and solvency valuation in a valuation reportor cost certificate;

 

“valuation report” means a report in relation to a pension plan that is filed orsubmitted to the Superintendent in accordance with subsection 31(2) of the Act,based on a going concern valuation and a solvency valuation under

 

                         (i)     Section 52, for the initial valuation report,

 

                         (ii)    Section 53, for a valuation report other than the initial valuation report,

 

                         (iii)   Section 57 for an additional valuation report,

 

                         (iv)   Section 31, for a report concerning an amendment to the plan;

 

“wind-up report” means the report required to be filed by an administrator on wind-up of a pension plan under Section 94 of the Act.

Calculation of actuarial gain or loss

3     (1)    An actuarial gain or actuarial loss in relation to a going concern valuation iscalculated as the sum of all of the following as of the valuation date:

 

                (a)    any gain to the pension plan since the valuation date of the immediatelyprevious going concern valuation that results from the difference betweenactual experience and the experience expected by the actuarial assumptions thatthe previous valuation was based on;

 

                (b)    the amount by which the going concern liabilities have decreased as a result ofany amendments to the plan since the previous valuation;

 

                (c)    the amount by which the going concern liabilities have decreased or the goingconcern assets have increased since the previous valuation as a result of achange in actuarial methods or assumptions that the current going concernvaluation is based on.

 

       (2)    Despite subsection (1), the amounts in clauses (1)(a), (b) or (c) must be counted as anegative in the calculation of the sum under that subsection if any of the followingoccur during the period since the previous valuation:

 

                (a)    the experience of the pension plan results in a loss rather than a gain;

 

                (b)    an amendment to the pension plan increases the going concern liabilities;

 

                (c)    a change in actuarial methods or assumptions results in an increase in goingconcern liabilities or a decrease in going concern assets.

 

       (3)    If the sum calculated under this Section results in

 

                (a)    a positive number, then the result is an actuarial gain;

 

                (b)    a negative number, then the result is an actuarial loss.

Calculation of going concern assets

4     Going concern assets are calculated as the sum of all of the following as of the valuationdate:

 

                (a)    the value of the assets of the pension plan determined on the basis of a goingconcern valuation, including accrued and receivable income but excluding theamount of any letter of credit held in trust for the pension plan;

 

                (b)    the present value of any special payments in respect of a going concernunfunded liability, determined on the basis of a going concern valuation, thathave been disclosed in previously filed valuation reports.

Calculation of solvency assets

5     Solvency assets are calculated as the sum of all of the following as of the valuation date:

 

                (a)    subject to Section 12, the market value of investments held by a pension plan;

 

                (b)    any cash balances of a pension plan and accrued or receivable income items ofthe plan, excluding the amount of any letter of credit held in trust for the plan.

Calculation of solvency asset adjustment

6     (1)    Subject to subsection (2), the solvency asset adjustment in relation to a valuationreport for a pension plan that provides defined benefits is the sum of all of thefollowing:

 

                (a)    the amount, positive or negative, by which the value of the solvency assets isadjusted by applying an averaging method that stabilizes short-termfluctuations in the market value of the plan assets, calculated over a period ofno longer than 5 years;

 

                (b)    the present value of any of the following special payments, other than specialpayments that are required to liquidate any solvency deficiency determined in avaluation report:

 

                         (i)     special payments referred to in clause 99(1)(a) or (b) that are scheduledfor payment within the period beginning on the valuation date of thevaluation report and ending 5 years after a date that is no later than 12months after the valuation date,

 

                         (ii)    special payments referred to in clause 104(2)(a) or (b) that are scheduledfor payment within the period of 5 years that begins on the valuation dateof the valuation report,

 

                         (iii)   special payments referred to in Section 105 that are scheduled forpayment within the period of 10 years that begins on the valuation dateof the first valuation report prepared between December 30, 2008 andJanuary 2, 2011,

 

                         (iv)   special payments referred to in subsection 107(3) that are scheduled forpayment within the period that begins on the valuation date of thevaluation report and continues until the end of a 15-year period thatbegins on a date that is no later than 12 months after the valuation date;

 

                (c)    the amount that is the lesser of the following:

 

                         (i)     the total amount of all letters of credit held in trust for the pension fundas of the valuation date, excluding the value of any special payments towhich the letter of credit relates that are due after the valuation date,

 

                         (ii)    15% of the amount of the solvency liabilities, determined in accordancewith Section 120.

 

       (2)    The present value of special payments, required contributions and the normal costused to calculate the solvency asset adjustment must be calculated as of the valuationdate and must be calculated using the following:

 

                (a)    if the solvency liability adjustment is zero, the solvency valuation interest rates;

 

                (b)    if the solvency liability adjustment is not zero, the average of the solvencyvaluation interest rates used in the report to calculate the solvency liabilityadjustment.

Determination of solvency liabilities

7     (1)    In this Section, “prospective benefit increase” means an increase to a pension benefitor ancillary benefit that is set out in a pension plan or agreed to by the parties to acollective agreement but not yet in effect.

 

       (2)    The solvency liabilities of a pension plan, in respect of a valuation report, are theliabilities of the plan determined as if the plan had been wound up on the valuationdate, but do not include the following liabilities:

 

                (a)    any escalated adjustment in relation to the pension and pension benefitsaccrued before the date these regulations come into force;

 

                (b)    entitlements of a member on wind-up of the plan under Section 97 of the Act;

 

                (c)    special allowances;

 

                (d)    prospective benefit increases.

 

       (3)    A solvency liability arises on the valuation date of the valuation report in which it isdetermined.

Solvency liability adjustment

8     (1)    Except as provided in subsection (2), the solvency liability adjustment is zero.

 

       (2)    If a solvency valuation includes a calculation of a solvency asset adjustment, and thesolvency asset adjustment includes an amount described in clause 6(1)(a), thesolvency liability adjustment is the amount, positive or negative, by which the valueof the solvency liabilities is adjusted by using a solvency valuation interest rate thatis the average of market interest rates calculated over the same period of time as thesolvency valuation interest rate used to determine the amount described in clause6(1)(a).

Determination of solvency deficiency

9     The solvency deficiency, as of a particular valuation date, of a pension plan that providesdefined benefits is determined by the following formula:

 

solvency deficiency = A-B

 

in which

 

       A =   the sum of the solvency liabilities, the solvency liability adjustment and the previousyear credit balance as of the valuation date of the valuation report,

 

       B =   the sum of the solvency assets and the solvency asset adjustment as of the valuationdate of the valuation report.

Solvency valuation

10   (1)    A solvency valuation required for a valuation report must determine the existence ofa solvency deficiency by determining the solvency liabilities and solvency assets ofthe pension plan.

 

       (2)    The solvency liabilities for any of the following pension plans must be determinedon the basis of the benefits structure set out in the plan at the valuation date withouttaking into account any possible reduction of the benefits:

 

                (a)    a multi-employer pension plan established under 1 or more collectiveagreements or a trust agreement; or

 

                (b)    a pension plan that provides defined benefits under which the employercontributions are limited to a fixed amount set out in a collective agreement.

Calculation of transfer ratio

11   (1)    The transfer ratio determined in a valuation report for a pension plan must becalculated in accordance with the following formula:

 

transfer ratio = A ÷ B

 

in which

 

                A =  the amount by which the solvency assets exceed the lesser of

 

                        (i)     the previous year credit balance, and

 

                        (ii)    the sum of all of the following:

 

                                  (A)   the amount by which the sum of the normal cost determined underclause 53(2)(a) and the estimates of the normal cost determined inthe report in accordance with clause 52(1)(c) and as required byclause 53(2)(b) for the periods covered by the report exceeds thesum of the estimates of any employee contributions determined inthe report in accordance with clause 52(1)(d) and as required byclause 53(2)(b) for the same periods,

 

                                  (B)   the sum of the special payments required to be made under theseregulations during the periods in respect of which the estimatesunder paragraph (A) are given

 

                B =  the sum of all of the following:

 

                         (i)     the solvency liabilities,

 

                         (ii)    the liabilities for benefits that were excluded in calculating the solvencyliabilities.

 

       (2)    A transfer ratio arises on the valuation date of the report in which it is determined.

Book value substituted for market value in calculations

12   In calculating solvency assets or a transfer ratio, if there is no market value for aninvestment of a pension plan and the investment is issued or guaranteed by a government,the book value of the investment may be used instead of the market value.

Jointly Sponsored Pension Plans

Additional criteria for jointly sponsored pension plans

13   (1)    In addition to the criteria specified in subclauses 2(y)(i) to (iii) of the Act, a pensionplan that, as evidenced by the documents that create and support the plan, satisfies allthe following criteria is a jointly sponsored pension plan:

 

                (a)    the total amount of contributions payable by members under the plan for ayear, excluding any additional voluntary contributions and voluntarycontributions for past service, does not exceed the total amount of employercontributions for the year;

 

                (b)    the plan does not permit a reduction in the amount of, or the commuted valueof a pension benefit, deferred pension, pension or an ancillary benefit, in thecircumstances described for an amendment of a plan in subsection 24(4)(a) or(b) of the Act, except in the circumstances of a wind-up;

 

                (c)    the employers, or any persons or entities who make contributions on behalf ofthe employers or represent the employers, and the members of the plan, or anyrepresentatives of the members, are jointly responsible for making all decisionsabout the following:

 

                         (i)     the terms and conditions of the plan,

 

                         (ii)    any amendments to the plan,

 

                         (iii)   the appointment of the administrator,

 

                         (iv)   the appointment or selection of persons as members of any body or entitythat is the administrator, other than the employer, an insurance companyor a person appointed by the Superintendent;

 

                (d)    each member’s pension benefits, other than ancillary benefits, andcontributions are directly related to the member’s pensionable earnings.

 

       (2)    The documents that create and support a jointly sponsored pension plan must set outthe methods by which the decisions referred to in clause (1)(c) are to be made.

 

       (3)    A pension plan ceases to be a jointly sponsored pension plan as of the date that theplan is amended so that it no longer meets the criteria for a jointly sponsored pensionplan.

Administrator’s statement about criteria for jointly sponsored pension plan

14   (1)    The administrator of a jointly sponsored pension plan must file a statement inaccordance with the deadline in subsection (2) that

 

                (a)    describes how the plan satisfies the criteria for a jointly sponsored pensionplan, and certifies that the plan satisfies the criteria; and

 

                (b)    certifies the date that the plan became a jointly sponsored pension plan.

 

       (2)    A statement required by subsection (1) must be filed no later than the date that theinitial valuation report for the plan is filed or submitted to the Superintendent

 

                (a)    after the pension plan becomes a jointly sponsored pension plan; or

 

                (b)    after the date these regulations come into force, if the pension plan is a jointlysponsored pension plan on the date these regulations come into force.

 

       (3)    The statement required by subsection (1) must be provided to all of the followingpersons:

 

                (a)    a participating employer, or any person or entity who makes employercontributions;

 

                (b)    the members or, if the members are represented by a bargaining agent, themembers’ bargaining agent;

 

                (c)    the former members;

 

                (d)    the retired members.

 

       (4)    The statement required by subsection (1) and all of the following information mustbe provided by an administrator to the persons referred to in subsection (3), at thesame time the statement referred to in subsection (1) is filed:

 

                (a)    the name of the pension plan and its Provincial registration number;

 

                (b)    the administrator’s name and contact information.

 

       (5)    No later than 60 days after filing the statement required by subsection (1), anadministrator must file another statement confirming that the statement and all theinformation required by subsection (4) was provided to persons as required by thisSection.

 

       (6)    The statement required by subsection (1) and all of the information in subsection (4)must also be provided by an administrator to each person who will be eligible or isrequired to become a member of the jointly sponsored pension plan after thestatement is filed and before the plan ceases to be a jointly sponsored pension plan,and the statement and information must be included as part of the informationrequired to be given to the person under clause 38(1)(c) of the Act.

Specified Multi-Employer Pension Plans

Specified multi-employer pension plan class of plans

15   (1)    A multi-employer pension plan belongs to the class of specified multi-employerpension plans if all of the following conditions are met:

 

                (a)    the administrator files an election in accordance with Section 17, declaring theplan to be a specified multi-employer pension plan;

 

                (b)    the plan meets all the eligibility criteria described in Section 16.

 

       (2)    A multi-employer pension plan ceases to be a specified multi-employer pension planon the earliest of the following dates:

 

                (a)    the date that the first valuation report for the plan is filed under Section 31 or53 for a valuation date that is after the administrator rescinds the election inaccordance with subsection 17(3);

 

                (b)    the date that the plan is amended so that the plan no longer meets thecontinuing eligibility criteria in clauses 16(3)(d), (e), (f) or (g).

Eligibility criteria for specified multi-employer pension plans

16   (1)    In this Section, “pre-election year” means the fiscal year of a pension planimmediately before the year in which an election is filed under Section 17 declaringthe plan to be specified multi-employer pension plan.

 

       (2)    For the purposes of this Section, a group of employers who are affiliates of eachother within the meaning of the Companies Act is deemed to be 1 employer.

 

       (3)    A multi-employer pension plan must meet all of the following eligibility criteria tobecome a specified multi-employer pension plan:

 

                (a)    at the end of the pre-election year, no more than 95% of the members of theplan were employed by 1 employer;

 

                (b)    during the pre-election year,

 

                         (i)     at least 15 employers made contributions to the plan, or

 

                         (ii)     at least 10% of the members of the plan were employed by 2 or moreemployers;

 

                (c)    all or substantially all of the employers who make contributions to the plan arepersons who are not exempt from tax under Part I of the Income Tax Act(Canada);

 

                (d)    all employers make contributions to the plan under 1 or more collectiveagreements;

 

                (e)    the employer contributions to the plan are limited to a fixed amount set out in 1or more collective agreements;

 

                (f)    the administrator is authorized by the plan to determine the benefits that are tobe provided under the plan, whether or not a collective agreement imposesrestrictions on the exercise of that authority;

 

                (g)    for a multi-employer pension plan established pursuant to a collectiveagreement or a trust agreement as referred to in clause 24(4)(a) of the Act,nothing in the documents that create and support the plan prevents theadministrator from reducing the amount of or the commuted value of a pensionbenefit, including a pension and a deferred pension, or an ancillary benefit inthe circumstances described in clause 24(4)(a) of the Act.

Election to be specified multi-employer pension plan

17   (1)    The administrator of a multi-employer pension plan that satisfies the criteriadescribed in Section 16 may file an election in writing with the Superintendentdeclaring the plan to be a specified multi-employer pension plan.

 

       (2)    Only 1 election may be made in respect of a pension plan.

 

       (3)    The administrator may rescind the election by filing written notice of the rescission.

 

       (4)    A rescission cannot be withdrawn once it is filed.

Notice of election to members

18   (1)    No later than 60 days after filing a specified multi-employer pension plan’s firstvaluation report under Section 31, 52 or 53, the administrator must prepare a writtennotice that an election has been made under Section 17 declaring the plan to be aspecified multi-employer pension plan and give a copy of the notice to all of thefollowing:

 

                (a)    the Superintendent;

 

                (b)    each member, former member and retired member of the plan;

 

                (c)    each employer who makes contributions under the specified multi-employerpension plan;

 

                (d)    each bargaining agent who represents members of the plan.

 

       (2)    The written notice required by subsection (1) must contain all of the followinginformation:

 

                (a)    the name of the pension plan and its Provincial registration number;

 

                (b)    the administrator’s name and contact information;

 

                (c)    effective on the valuation date, the pension plan’s transfer ratio or, if the plan isamended to increase pension benefits, including pensions and deferredpensions, or ancillary benefits, the plan’s transfer ratio before and after theamendment;

 

                (d)    an explanation of how the security of the pension plan’s pension benefits,including pensions and deferred pensions, and ancillary benefits might beaffected as a result of the election.

 

       (3)    An administrator must also give a copy of the written notice required by subsection(1) to each person who will be eligible or is required to become a member of thespecified multi-employer pension plan after the election is made but before the planceases to be a specified multi-employer pension plan, and the notice must beincluded as part of the information required to be given to the person under clause38(1)(c) of the Act.

Exemptions from the Act and Regulations

Exempted pension plans

19   (1)    Pension plans that are established by or under the following legislation are exemptfrom the application of the Act and the regulations:

 

                (a)    the Public Service Superannuation Act;

 

                (b)    the Teachers’ Pension Act;

 

                (c)    the Members’ Retiring Allowances Act;

 

                (d)    the Provincial Court Act.

 

       (2)    The following pension plans are exempt from the application of the Act and theregulations:

 

                (a)    the Pension Plan for Salaried Employees of Sydney Steel Corporation;

 

                (b)    the Sydney Steel Corporation Non-Contributory Union Pension Plan 1968 (forMembers of Locals 1064, 6537 and 6516 of the United Steelworkers ofAmerica and Local 2 of The Bricklayers and Allied Craftworkers);

 

                (c)    the Sydney Steel Corporation Non-Contributory Union Pension Plan 1974 forMembers of Local 1675 of the Canadian Union of Public Employees;

 

                (d)    a retirement compensation arrangement as defined in subsection 248(1) of thefederal Income Tax Act;

 

                (e)    a plan that provides only benefits that exceed the maximum benefit limitsapplicable to a pension plan that is registered under the federal Income Tax Act;

 

                (f)    a plan that permits only contributions that are in excess of the maximumcontribution limit applicable to a pension plan that is registered under thefederal Income Tax Act.

 

       (3)    In this subsections (4) and (5), “NewPage pension plans” means all of the followingpension plans:

 

                (a)    Pension Plan for Mill Employees of NewPage Port Hawkesbury Corp.–Registration No.: 0522722;

 

                (b)    Pension Plan for the Office and Clerical Hourly Employees of NewPage PortHawkesbury Corp.–Registration No.: 0401059;

 

                (c)    Pension Plan for the Woodland Hourly Employees of NewPage PortHawkesbury Corp.–Registration No.: 0379008;

 

                (d)    Pension Plan for the Salaried Non-Union Employees of NewPage PortHawkesbury Corp. and Associated and Affiliated Companies–RegistrationNo.: 0522714.

 

       (4)    The circumstances in which the administrator for the NewPage pension plans wasappointed, on October 5, 2011, is a prescribed circumstance for the purpose ofsubsection 18(6) of the Act.

 

       (5)    The NewPage pension plans are exempt from the application of Section 108 of theAct and, for greater certainty, each of the following entities is deemed not to be asuccessor employer of any member of 1 of the NewPage pension plans who is orbecomes their employee upon the sale, assignment or disposition of all or part of thebusiness or all or part of the assets of NewPage Port Hawkesbury Corp. to the entity:

 

                (a)    Pacific West Commercial Corporation;

 

                (b)    any designate, assignee or subsidiary of Pacific West Commercial Corporation;

 

                (c)    the limited partnership that ultimately acquires the business and assets ofNewPage Port Hawkesbury Corp.;

 

                (d)    the general partner of the limited partnership referred to in clause (c).

 

       (6)    Except to the extent of any payments accrued due and payable in accordance withthe former regulations, special payments required to liquidate a solvency deficiencyare not required to be made for any of the following:

 

                (a)    a pension plan listed in subsection 85(2);

 

                (b)    the pension plan specified in subsection 85(4), for the period from December21, 2012 to December 31, 2017, inclusive.

Amendment to avoid revocation of registration under federal Income Tax Act

20   (1)    Subject to subsection (2), subsection 24(1) of the Act respecting void amendmentsdoes not apply to an amendment to a pension plan that is required for the plan toavoid revocation of its registration under the federal Income Tax Act.

 

       (2)    For the exemption in subsection (1) to apply, at least 60 days before an amendmentis effective, the administrator must give the Superintendent written notice of theamendment together with evidence satisfactory to the Superintendent that theamendment is required in order to avoid revocation of the plan’s registration underthe federal Income Tax Act.

 

       (3)    Subject to subsection (4), subsection 87(1) of the Act respecting the prohibition onrefunds of contributions does not apply to a refund of contributions to a member,former member or retired member if the refund is required in order to avoidrevocation of the plan’s registration under the federal Income Tax Act.

 

       (4)    For the exemption in subsection (3) to apply, at least 60 days before a refund ismade, the administrator must give the Superintendent written notice of the refundtogether with evidence satisfactory to the Superintendent that the refund is requiredin order to avoid revocation of the plan’s registration under the federal Income TaxAct.

 

       (5)    Subject to subsection (6), subsection 103(1) of the Act respecting the consent of theSuperintendent to pay surplus to an employer does not apply to a payment to anemployer of money that is surplus if the payment is required in order to avoidrevocation of the plan’s registration under the federal Income Tax Act.

 

       (6)    For the exemption in subsection (5) to apply, at least 60 days before the payment ismade, the administrator must give the Superintendent written notice of the paymenttogether with evidence satisfactory to the Superintendent that the payment is requiredin order to avoid revocation of the plan’s registration under the federal Income TaxAct.

Pension plans maintained for employees of 2 or more employers

21   (1)    A pension plan established before the date these regulations come into force, that ismaintained for the employees of 2 or more employers, and that is neither a multi-employer pension plan nor a pension plan in which all employers are affiliates ofeach other, is exempt from Section 18 of the Act if the plan provides that theadministrative duties of the employer and the administrator as specified in the Actare totally assumed by a financial institution.

 

       (2)    A pension plan referred to in subsection (1) may permit different employers toestablish different prescribed classes of employees for the purposes of membershipin the plan, under Section 45 of the Act.

Nova Scotia Health Employees Pension Plan not a multi-employer pension plan

22   In accordance with subclause 2(ab)(ii) of the Act, the Nova Scotia Health EmployeesPension Plan is not a multi-employer pension plan.

Significant shareholder plans

23   Subsection 24(1) of the Act respecting void amendments does not apply in respect of anamendment that affects the pension benefits or ancillary benefits of a member of a definedbenefit pension plan who is a significant shareholder, if the employer providing the planand the significant shareholder consent in writing to the non-application of Section 24 ofthe Act and file the consent.

Ensuring no conflict of interest for multi-employer pension plan

24   (1)    The requirement in subsection 33(3) of the Act for an administrator to ensure thatthere is no conflict of interest does not apply when an administrator of a multi-employer pension plan enters into a transaction with a trade union, council of tradeunions, employer, employers’ association or an employee benefit trust fund in whicha member of the board of trustees or committee holds any office or position, if thetransaction meets all of the following conditions:

 

                (a)    it is only for purchase or lease of office space, for legal, accounting or otherservices, materials or equipment necessary for the administration and operationof the plan, and the compensation paid is reasonable in the circumstances;

 

                (b)    it is permitted under the documents that create and support the plan or anyamendments to those documents.

 

       (2)    The requirement in subsection 33(3) of the Act for an administrator to ensure thatthere is no conflict of interest does not apply when an administrator of a multi-employer pension plan or a member of a pension committee or board thatadministers a multi-employer pension plan enters into a transaction, other than atransaction described in subsection (1), related to the administration of the plan orpension fund that meets all of the following conditions:

 

                (a)    it is in the interest of the members, former members and retired members;

 

                (b)    it is protective of the rights of the members, former members and retiredmembers;

 

                (c)    it is permitted under the documents that create and support the plan;

 

                (d)    it is disclosed to the members, former members and retired members before itis entered into;

 

                (e)    it confers no direct or indirect personal benefit on the administrator or memberof the pension committee or board of trustees.

Notices and summaries of contributions not required for certain multi-employer pensionplans

25   The following provisions of the Act do not apply to a multi-employer pension planestablished under a collective agreement, a trust agreement, a statute or a municipal bylaw:

 

                (a)    subsection 78(2) of the Act, respecting notice to the Superintendent thatcontributions have not been paid when due;

 

                (b)    Section 79 of the Act, respecting the provision to the prescribed persons of asummary of contributions in accordance with Section 98.

Exemption from registration or audit under reciprocal agreement

26   (1)    If a reciprocal agreement under Section 8 of the Act between the Minister andauthorized representatives of 1 or more designated jurisdictions provides that apension plan with the majority of members employed in a designated jurisdiction isexempt from registration or audit under the Act, then a pension plan that meets thoserequirements is exempt from registration or audit under the Act.

 

       (2)    For the purpose of determining where the majority of the members in subsection (1)is employed, only those members who are employed in the Province or in any of thedesignated jurisdictions are counted.

Designated Jurisdictions

Designated jurisdictions prescribed

27   (1)    For the purposes of the definition of “designated jurisdiction” in Section 2 of theAct, each of the following jurisdictions in Canada is prescribed as a designatedjurisdiction in which there is in force legislation substantially similar to the Act:

 

                (a)    Canada, subject to subsection (2);

 

                (b)    the Province of Alberta;

 

                (c)    the Province of Quebec;

 

                (d)    the Northwest Territories;

 

                (e)    the Province of Saskatchewan;

 

                (f)    the Province of Manitoba;

 

                (g)    the Province of Ontario;

 

                (h)    the Province of Newfoundland and Labrador;

 

                (i)     the Province of New Brunswick;

 

                (j)     the Province of British Columbia;

 

                (k)    the Yukon Territory;

 

                (l)     the Territory of Nunavut.

 

       (2)    The status of Canada as a designated jurisdiction applies in respect of “includedemployment” as defined in subsection 2(1) of the Pension Benefits Standards Act,1985 (Canada) but not in respect of any other employment in Canada.

Part 2: Pension Plan Administration

Registration of Pension Plans and Amendments, and Filing of Agreements

Application for registration of pension plan

28   (1)    An application for registration of a pension plan under Section 19 of the Act must bemade no later than 90 days after the plan is established.

 

       (2)    An application for registration of a pension plan must be accompanied by theprescribed fee.

 

       (3)    All of the following are the documents required to be filed with an application forregistration of a pension plan under clause 19(3)(b) of the Act:

 

                (a)    certified copies of all the documents that create and support the pension plan;

 

                (b)    certified copies of all the documents that create and support the pension fund;

 

                (c)    a certified copy of any reciprocal transfer agreement related to the pensionplan;

 

                (d)    a certified copy of the explanations and other information provided undersubsection 38(1) of the Act;

 

                (e)    for a plan that provides defined benefits, a valuation report.

 

       (4)    The documents that create and support a pension plan must set out all of thefollowing information:

 

                (a)    the method of appointment and the details of the appointment of theadministrator;

 

                (b)    the conditions of membership in the plan;

 

                (c)    the benefits and rights that are to accrue upon all of the following:

 

                         (i)     termination of employment,

 

                         (ii)    termination of membership,

 

                         (iii)   retirement,

 

                         (iv)   death;

 

                (d)    the normal retirement age;

 

                (e)    the requirements for entitlement under the plan to any pension benefit orancillary benefit or optional benefit;

 

                (f)    the contributions or the method of calculating the contributions required by theplan;

 

                (g)    the method of determining benefits payable under the plan;

 

                (h)    the method of calculating interest to be credited to contributions under theplan;

 

                (i)     the mechanism for payment of the cost of administration of the plan andpension fund;

 

                (j)     the mechanism for establishing and maintaining the pension fund;

 

                (k)    how surplus is to be treated while the plan continues, and on wind-up of theplan in whole or in part;

 

                (l)     the administrator’s obligation to provide members with information anddocuments required to be disclosed under the Act and the regulations, anddetails concerning the obligation;

 

                (m)   the method of allocating the plan’s assets on wind-up;

 

                (n)    the particulars of any predecessor pension plan that members may be entitledto pension benefits under;

 

                (o)    the persons who may amend the plan and how the amendments must be made.

 

       (5)    In addition to the information required by subsection (4), the documents that createand support a multi-employer pension plan must specify all of the followinginformation:

 

                (a)    for a plan under a collective agreement or trust agreement, the powers andduties of the board of trustees that is the administrator;

 

                (b)    any consequences of a participating employer withdrawing from the plan onthe funding and payment of a pension benefit, deferred pension or pension, of amember, former member, retired member or other person affected by thewithdrawal.

 

       (6)    In addition to the information in subsection (4), the documents that create andsupport a jointly sponsored pension plan must set out all of the followinginformation:

 

                (a)    the employee contributions or the method of calculating the employeecontributions required, including any obligations in respect of any goingconcern unfunded liability and solvency deficiency;

 

                (b)    the employer contributions or the method of calculating the employercontributions required, including any obligations in respect of any goingconcern unfunded liability and solvency deficiency;

 

                (c)    any consequences of a participating employer withdrawing from the plan onthe funding and payment of pension benefits, deferred pensions and pensionsof a member, former member, retired member or other person affected by thewithdrawal;

 

                (d)    how decisions about the terms and conditions of the plan and any amendmentsto the plan will be made;

 

                (e)    how decisions about appointing the administrator or appointing or selectingpersons as members of the body or entity that administers the plan will bemade.

Application for registration of amendment to pension plan

29   (1)    An application required by subsection 22(1) of the Act for registration of anamendment to a pension plan must be filed no later than 60 days after the date thatthe plan or documents are amended.

 

       (2)    A certified copy of a document that changes the documents that create and support apension plan or pension fund that is required to be filed by subsection 22(4) of theAct must be filed no later than 60 days after the date the document is certified.

Notice and explanation of pension plan amendment

30   (1)    The notice required by subsection 39(1) of the Act must be in the form of a writtenstatement that includes all of the following information:

 

(a)notice that the amendment has been made;

 

(b)a summary and explanation of the amendment;

 

                (c)    the administrator’s contact information.

 

       (2)    In addition to the persons listed in subsection 39(1) of the Act, a written notice inaccordance with subsection (1) must also be given to any person who is, or will beaffected by the amendment.

 

       (3)    Except as provided in subsections (4) and (5), written notice under this Section mustbe given no later than 45 days before the date that the amendment is filed.

 

       (4)    In accordance with subsection 39(4) of the Act, a written notice under this Sectionmay be given after the amendment is filed in any of the following circumstances:

 

                        (a)    the amendment is of a technical nature;

 

                        (b)    the amendment will not substantially affect the pension benefits, rights orobligations of a member, former member or retired member accruingsubsequent to the to the effective date of the amendment;

 

                        (c)    the amendment will not adversely affect any person entitled to paymentsfrom the pension fund.

 

       (5)    A notice given under subsection (4) after the amendment is filed must be given nolater than 6 months after registration of the amendment.

Valuation report on amendment to pension plan

31   (1)    Except as provided in subsection (2), for an amendment to a pension plan thatreduces or increases contributions or changes a going concern unfunded liability orsolvency deficiency, an administrator must file all of the following:

 

                (a)    a valuation report containing any of the information required for a valuationreport under Section 53 or 57 that might be affected by the amendment;

 

                (b)    if there is a previous year credit balance, a cost certificate.

 

       (2)    Subsection (1) does not apply to any of the following amendments:

 

                (a)    an amendment that is required by law and confers an improvement in thebenefits provided under the pension plan;

 

                (b)    an amendment to a pension plan that provides only defined contributionbenefits.

 

       (3)    An administrator must file the report and any certificate required by subsection (1)no later than 6 months after the date the amendment is required to be submitted tothe Superintendent for registration.

Amendments that are permitted only if cost of amendments paid into pension fund

32   (1)    During the first 5 years of the period for liquidating a solvency deficiency underSection 105, or the first 10 years of the period for liquidating a solvency deficiencyunder subsection 107(3), a pension plan must not be amended to do any of thefollowing, unless the cost of the amendment is fully paid to the pension fund at thetime the amendment is made:

 

                (a)    increase the cost of the pension benefits, deferred pensions, pensions orancillary benefits provided by the plan;

 

                (b)    create or increase a going concern unfunded liability under the plan;

 

                (c)    create or increase a solvency deficiency under the plan.

 

       (2)    A pension plan listed in subsection 85(2) must not be amended to do any of thefollowing, unless the cost of the amendment is fully paid to the pension fund at thetime the amendment is made:

 

                (a)    increase the cost of the pension benefits, deferred pensions, pensions orancillary benefits provided by the plan;

 

                (b)    create or increase a going concern unfunded liability;

 

                (c)    create or increase a solvency deficiency.

 

       (3)    The DIRECTIONS Council for Vocational Services Society PensionPlan–Registration No.: 908699 must not be amended on or after December 21, 2012,up to and including December 31, 2017, to do any of the following, unless the costof the amendment is fully paid to the pension fund at the time the amendment ismade:

 

                (a)    increase the cost of the pension benefits, deferred pensions, pensions orancillary benefits provided by the plan;

 

                (b)    create or increase a going concern unfunded liability;

 

                (c)    create or increase a solvency deficiency.

Amendment to specified multi-employer pension plan requiring liquidation of goingconcern unfunded liability

33   If a specified multi-employer pension plan is amended to increase pension benefits,deferred pensions, pensions or ancillary benefits and the amendment results in the plan’stransfer ratio being lower than 0.8 or the ratio of the market value of the plan assets to thegoing concern liabilities being lower than 0.9, then any increase in the going concernunfunded liability resulting from the amendment must be liquidated, with interest at thegoing concern valuation interest rate, by equal monthly instalments over a period of 5years beginning on the valuation date of the valuation report that determined the increasein the going concern unfunded liability.

Filing of reciprocal transfer agreements

34   An administrator must file a certified copy of any reciprocal transfer agreement enteredinto on or after the date these regulations come into force, no later than 60 days after theexecution of the agreement.

Requirements for reciprocal transfer agreements

35   Pursuant to subsection 32(2) of the Act, a reciprocal transfer agreement that is entered into,or under which money or benefits is transferred, must not contain any provision relating toa benefit that a pension plan is prohibited by the Act from containing.

Advisory Committees

Advisory committee definition

36   In the Act and in Sections 37 to 45,

 

“advisory committee”, in relation to a pension plan, means a committee establishedin accordance with and for the purposes of Section 36 of the Act.

Notice and information about establishing advisory committee

37   (1)    All of the following information is prescribed as the information to be distributed byan administrator to members and retired members along with the notice of intent toestablish an advisory committee received in accordance with subsection 36(6) of theAct:

 

                (a)    that a vote for the establishment of an advisory committee will be held and thatthe members and retired members will be given an opportunity to participate inthe vote;

 

                (b)    that the determination as to whether an advisory committee will be establishedwill be made by a majority of the members and retired members whoparticipate in the vote;

 

                (c)    the date that the vote will be held for the establishment of the advisorycommittee;

 

                (d)    the means by which the vote will be held;

 

                (e)    if the vote is to be held in person, the location and the time of the meeting forpurposes of holding the vote;

 

                (f)    a statement that the advisory committee is required, under subsection 36(5) ofthe Act, to do all of the following:

 

                         (i)     monitor the administration of the pension plan,

 

                         (ii)    make recommendations to the administrator respecting theadministration of the pension plan,

 

                         (iii)   promote awareness and understanding of the pension plan.

 

       (2)    The notice and information under subsection (1) must be distributed no later than 30days after the date the notice under subsection 36(6) of the Act is received by theadministrator.

 

       (3)    The notice and information under subsection (1) must be in writing and must begiven by 1 or more of the following means:

 

                (a)    by mail, if sent to the most recent address of the recipient in the administrator’srecords for the pension plan;

 

                (b)    by e-mail, if the recipient has requested that information about the pension planbe sent to a specified e-mail address;

 

                (c)    for members who regularly work at the employer’s workplace, by posting it in1 or more areas of the workplace that are regularly accessed by the members.

 

       (4)    The notice and information under subsection (1) must be given to any members whoare represented by a trade union or trade unions by giving it to the trade union ortrade unions instead of to the members.

 

       (5)    The notice and information under subsection (1) may be given to any retiredmembers who are members of an association of retired members of the plan bygiving it to the executive of the association instead of, or in addition to, giving it tothose retired members, if the administrator receives a written request from theassociation for it to be provided to them.

Voting on establishing advisory committee

38   (1)    The date set for a vote on whether to establish an advisory committee must be a datethat is no earlier than 30 days after the date the notice and information is providedunder subsection 37(1).

 

       (2)    A vote on whether to establish an advisory committee must be conducted by secretballot through any combination of the following methods:

 

                (a)    in person at a meeting of members and retired members and otherbeneficiaries;

 

                (b)    electronically;

 

                (c)    by mail;

 

                (d)    by casting ballots at a specified location.

 

       (3)    Making arrangements for a suitable location for an in-person meeting to conduct avote, if requested to do so by the persons who provided written notice to theadministrator of their intent to establish an advisory committee, is such otherassistance that must be provided by an administrator under clause 36(6)(b) of theAct.

Notice concerning result of vote to establish advisory committee

39   (1)    Any persons referred to in subsection 36(6) of the Act who have provided notice toan administrator of their intent to establish an advisory committee under thatsubsection must provide notice in writing to the administrator of the result of thevote as soon as practicable following the vote.

 

       (2)    No later than 5 days after the date the notice referred to in subsection (1) is received,an administrator must provide all of the following information, in writing, to themembers, former members and retired members:

 

                (a)    the result of the vote held on whether to establish an advisory committee;

 

                (b)    if the vote resulted in the establishment of an advisory committee,

 

                         (i)     the rules governing the composition of the advisory committee as set outin subsection 36(3) of the Act,

 

                         (ii)    the number of and names of the classes of employees that are representedin the pension plan, and the number of employees in each class,

 

                         (iii)   the nomination entitlements in subsection 40(1),

 

                         (iv)   how and by when, in accordance with subsection 40(2), each class ofemployees and the retired members and former members may nominaterepresentatives to the advisory committee,

 

                         (v)    the voting procedures in Section 41.

 

       (3)    The information in subsection (2) may be provided by 1 or more of the means set outin clauses 37(3)(a) to (c).

Nominating advisory committee representatives

40   (1)    To meet the requirements for composition of the advisory committee in subsection36(3) and (4) of the Act, each member of the following groups may nominate thespecified number of persons from their group to represent them on the advisorycommittee:

 

                (a)    for a class of employees represented in the pension plan, 1 or 2 members of theclass;

 

                (b)    for retired members of the pension plan, 1 or 2 retired members;

 

                (c)    for former members of the pension plan, 1 former member.

 

       (2)    Nominations must be provided in writing to an administrator no later than 10 daysafter the results of the vote to establish an advisory committee is received from theadministrator under subsection 39(2).

Voting on advisory committee representatives

41   (1)    No later than 10 days after the deadline for nominations in subsection 40(2), theadministrator must provide an opportunity to each member, former member andretired member, to vote by secret ballot on the nominees for their representative orrepresentatives on the advisory committee.

 

       (2)    An administrator must establish the procedure for conducting the vote by secretballot.

Notice of results of vote on advisory committee representatives

42   No later than 5 days after a vote on nominees under Section 41, an administrator must givethe members, former members and retired members of the plan the results of the vote inwriting by 1 or more of the means set out in clauses 37(3)(a) to (c).

Term of office for advisory committee

43   (1)    An advisory committee member’s term of office is as established by the committeeunder its rules of procedure, governance and operations, up to a maximum period of3 years.

 

       (2)    Despite subsection (1), the term of office for each initial representative on anadvisory committee is 3 years.

 

       (3)    A member of an advisory committee continues to hold office after the end of theirterm until they are reappointed or a successor is appointed.

 

       (4)    A vacancy on an advisory committee that is for an unexpired term of 120 days ormore must be filled not later than 120 days after the vacancy arises.

Participating on advisory committee

44   (1)    A member of an advisory committee is entitled to take time off from their regularwork duties, without loss of pay or other benefits, to carry out their duties on theadvisory committee.

 

       (2)    The costs payable out of the pension fund under subsection 36(10) of the Act are allof the following costs:

 

                (a)    the reasonable costs associated with renting a facility for a meeting held for anyof the following purposes:

 

                         (i)     to establish the advisory committee,

 

                         (ii)    to vote for representatives on the advisory committee,

 

                         (iii)   meetings of the advisory committee;

 

                (b)    the reasonable costs associated with a committee member attending anadvisory committee meeting and other expenses reasonably incurred by acommittee member in carrying out their duties as a committee member;

 

                (c)    copying costs for any records provided under subsection 36(8) of the Act,subject to an administrator’s right to limit any of the following:

 

                         (i)     the number of copies provided to the advisory committee,

 

                         (ii)    how many times copies of a particular record will be provided withoutcharge during a calendar year.

Advisory committee procedure, governance and operations

45   (1)    An advisory committee must establish written rules of procedure, governance andoperations for exercising its powers and discharging its duties under the Act andthese regulations.

 

       (2)    An advisory committee’s rules of procedure, governance and operations mustinclude provisions for all of the following:

 

                (a)    electing or appointing a chair, secretary and any other officers that thecommittee considers advisable;

 

                (b)    the powers and duties of the committee’s officers;

 

                (c)    appointing a representative to the committee to replace a representative who isunable or no longer wishes to act or whose term of office is about to expire orhas expired;

 

                (d)    the means by which

 

                         (i)     the administration of the pension plan must be monitored,

 

                         (ii)    recommendations to the administrator respecting the administration ofthe pension plan must be made, and

 

                         (iii)   awareness and understanding of the pension plan must be promoted;

 

                (e)    respecting meetings of the committee, including all of the following:

 

                         (i)     the means by which, and time periods within which, notice of meetingsmust be provided,

 

                         (ii)    requiring meetings at regular intervals, and setting the dates, times andplaces of those meetings,

 

                         (iii)   establishing procedures for changing the date, time or place of a regularmeeting and governing the notice to be given of the change,

 

                         (iv)   establishing procedures for calling and holding special meetings of thecommittee,

 

                         (v)    governing the conduct and procedures of meetings, including the votingand quorum requirements for the transaction of business;

 

                (f)    establishing a communications strategy for regular communications with themembers, former members and retired members of the plan, including thetiming and means by which minutes of the meetings of the advisory committeemust be provided;

 

                (g)    requiring the rules to be reviewed at least once every 3 years.

 

       (3)    An advisory committee’s rules of procedure and governance may include any otherrules that the advisory committee considers necessary or advisable for the fulfilmentof its powers and duties under the Act and these regulations.

 

       (4)    An advisory committee may require the administrator to provide notice to therepresentatives of the committee of any meeting of the committee, in the form andwithin the period directed by the committee.

 

       (5)    An administrator must be given reasonable notice of any meeting required betweenthe administrator and the committee under clause 36(7)(a) of the Act.

Pension Fund Investment and Administration

Pension fund trustee

46   (1)    Subject to subsection (2), all of the following are prescribed for the purposes ofsubsection 33(5) of the Act as persons who may be a trustee of a pension fund:

 

                (a)    a government;

 

                (b)    an insurance company;

 

                (c)    a trust in Canada governed by a written trust agreement under which thetrustees are

 

                         (i)     a trust corporation registered under the Trust and Loan Companies Act,

 

                         (ii)    3 or more individuals, at least 3 of whom reside in Canada and at least 1of whom is independent of any employer contributing to the pensionfund, to the extent the individual is not a significant shareholder, partner,proprietor, director, officer, employee of an employer who contributes tothe fund or employee of an affiliate of the employer who contributes tothe fund, or

 

                         (iii)   a corporate pension society established under the Pension Fund SocietiesAct (Canada);

 

                (d)    an entity under the Government Annuities Act (Canada);

 

                (e)    a board, agency, commission or corporation made responsible by an Act of theLegislature for the administration of the pension fund.

 

       (2)    Any of the persons referred to in subsection (1) may be a trustee in combination withanother person referred to in that subsection.

Investment of plan assets must be in accordance with regulations

47   Despite the provisions of any pension plan or any instrument governing a plan, the assetsof a plan must be invested and the investments must be made in accordance with theseregulations.

Statement of investment policies and procedures

48   (1)    Before the date a pension plan is registered, an administrator must establish a writtenstatement of investment policies and procedures in respect of the pension plan’sportfolio of investments and loans that meets the requirements of this Section andSchedule 1: Permitted Investments.

 

       (2)    The written statement of investment policies and procedures required by subsection(1) must take into account all factors that may affect the funding and solvency of thepension plan and the ability of the plan to meet its financial obligations, including allof the following:

 

                (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 investments;

 

                (g)    the method of, and the basis for, the valuation of investments that are notregularly traded at a public exchange;

 

                (h)    related party transactions permitted under Section 16 of Schedule 1: PermittedInvestments and the criteria to be used to establish whether a transaction isnominal or immaterial to the plan, having regard to all factors that may affectthe funding and solvency of the plan and the ability of the plan to meet itsfinancial obligation.

 

       (3)    The statement of investment policies and procedures required by this Section mustinclude a description of the factors referred to in subsection (2) and the relationshipof those factors to the investment policies and procedures.

 

       (4)    An administrator must provide the statement of investment policies and proceduresrequired by subsection (1) to all of the following by the specified dates:

 

                (a)    any pension committee that has been established, no later than 60 days after thelater of all of the following dates:

 

                         (i)     the date on which the statement is established by the administrator undersubsection (1),

 

                         (ii)    the date the pension committee is established;

 

                  (b)    if a plan is a defined benefit plan, the actuary of the plan on or before the laterof all of the following dates:

 

                           (i)     the date that is 60 days after the date the statement is established, by theadministrator under subsection (1),

 

                           (ii)    the date the actuary is appointed.

 

         (5)    An administrator must review and confirm or amend the statement of investmentpolicies and procedures required by subsection (1) at least once in each fiscal year ofa pension plan.

 

         (6)    A copy of each amendment to the statement of investment policies and proceduresrequired by subsection (1) must be provided, no later than 60 days after the statementis amended, to all of the following:

 

                  (a)    any pension committee that has been established for the pension plan;

 

                  (b)    for a pension plan that provides defined benefits, to the actuary of the plan.

 

Record of investments

49     (1)    An administrator must maintain a current record of investments for the pension planthat clearly identifies all of the following:

 

                  (a)    each investment held on behalf of the pension plan;

 

 

                  (b)    the name in which each investment is made;

 

                  (c)    the name in which each investment is registered, if the investment is capable ofbeing registered.

 

         (2)    A pension plan must provide that the money in the pension fund is to be invested inaccordance with Schedule 1: Permitted Investments and invested in 1 of thefollowing names:

 

                  (a)    a name that clearly indicates that the investment is held in trust for the planand, if the investment is capable of being registered, registered in that name;

 

                  (b)    the name of a financial institution or its nominee, in accordance with acustodial agreement or trust agreement entered into on behalf of the plan withthe financial institution, that clearly indicates that the investment is held for thepension plan;

 

                  (c)    the name of The Canadian Depository for Securities Limited or its nominee, inaccordance with a custodial agreement or trust agreement entered into onbehalf of the plan with a financial institution, that clearly indicates that theinvestment is held for the plan.

 

         (3)    In subsection (2), “custodial agreement” means an agreement that meets all of thefollowing criteria:

 

                  (a)    it provides that an investment made or held on behalf of a pension plan underthe agreement

 

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

 

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

 

                  (b)    it provides that records will be maintained by the custodian, and will besufficient to allow the ownership of any investment to be traced to the pensionplan at any time.

 

Designated jurisdictions—alternate corresponding provisions

50     If any provisions of Schedule 1: Permitted Investments differ from the correspondingprovisions under the laws of a designated jurisdiction, the Superintendent may apply, inwhole or in part, those corresponding provisions to a plan that has members in thatdesignated jurisdiction instead of the provisions of Schedule 1: Permitted Investments.

 

Reporting to the Superintendent

 

Pension plan that provides only defined contribution benefits exempted

51     Sections 52 to 64 do not apply, and a valuation report is not required, for a pension planthat provides only defined contribution benefits.

 

Initial valuation reports

52     (1)    Except as provided in subsection (4), no later than 90 days after the date that apension plan is established, the administrator must submit to the Superintendent aninitial valuation report that sets out all of the following for the plan on the basis of agoing concern valuation:

 

                  (a)    the normal cost for the first year the plan is registered;

 

                  (b)    the rule for computing the normal cost for the following years up to thevaluation date of the next valuation report;

 

                  (c)    an estimate of the normal cost for the following years up to the valuation dateof the next valuation report determined in accordance with the rule referred toin clause (b);

 

                  (d)    the estimated aggregate of any employee contributions for each year followingthe valuation report up to the date of the next valuation report;

 

                  (e)    the amount of any going concern unfunded liability determined for the plan;

 

                  (f)    the special payments required to liquidate any going concern unfunded liabilityidentified under clause (e), in accordance with Section 99 or 104;

 

                  (g)    if the plan provides for an escalated adjustment,

 

                           (i)     a statement that the escalated adjustment has been pre-funded on a goingconcern basis in relation to the pension benefits that have accrued, or willaccrue, under the plan on or after the date these regulations come intoforce, in accordance with Section 91,

 

                           (ii)    in relation to the pension benefits accruing under the plan before the datethese regulations come into force, whether and to what extent

 

                                    (A)   liability for the future cost of the escalated adjustment has beenincluded in the determination of any going concern unfundedliability, or

 

                                    (B)   the cost for the escalated adjustment is included in the normal cost.

 

         (2)    An initial valuation report under this Section must also include all of the followinginformation about the pension plan, on the basis of a solvency valuation:

 

                  (a)    whether the plan has a solvency deficiency;

 

                  (b)    if there is a solvency deficiency, the amount of the solvency deficiency;

 

                  (c)    if there is a solvency deficiency, the special payments required to liquidate thesolvency deficiency in accordance with Section 99, 105 or 107;

 

                  (d)    whether the plan is exempt, in accordance with subsection 19(6), from therequirement to make special payments to liquidate the solvency deficiency;

 

                  (e)    if the plan provides for an escalated adjustment,

 

                           (i)     a statement that the escalated adjustment has been pre-funded on asolvency basis in relation to the pension benefits that have accrued, orwill accrue under the plan on or after the date these regulations come intoforce, in accordance with Section 91, and

 

                           (ii)    in relation to the pension benefits accruing under the plan before the datethese regulations come into force, whether and to what extent,

 

                                    (A)   liability for the future cost of the escalated adjustment has beenincluded in the determination of any going concern unfundedliability, or

 

                                    (B)   the cost for the escalated adjustment is included in the normal cost;

 

                  (f)    whether the transfer ratio is less than 1;

 

                  (g)    if the transfer ratio is less than 1, the transfer ratio.

 

         (3)    An initial valuation report for a designated plan must also contain a maximumfunding valuation.

 

         (4)    An initial valuation report may certify the adequacy of premiums necessary toprovide for the payment of all benefits under an insured pension plan that is fundedby level premiums extending not beyond the retirement age for each individualmember, instead of the matters required by subsection (1).

 

Valuation reports at regular intervals

53     (1)    An administrator must cause a pension plan to be reviewed and a valuation reportprepared and certified at regular intervals, beginning with a valuation date that is nolater than 3 years after the date the plan is established, and then at intervals of nolonger than 3 years, subject to any provision of these regulations that requires anearlier report.

 

         (2)    A valuation report under this Section must set out all of the following for the pensionplan, on the basis of a going concern valuation:

 

                  (a)    the normal cost in the year following the valuation date of the report;

 

                  (b)    all of the information required in clauses 52(1)(b) to (g) for an initial valuationreport;

 

                  (c)    any special payments remaining to be paid after the valuation date with respectto a going concern unfunded liability determined in a previous valuation report;

 

                  (d)    the present value of any future special payments remaining to be paid after thevaluation date, as established in a previous valuation report;

 

                  (e)    the actuarial gain or actuarial loss in the plan, including,

 

                           (i)     if there is an actuarial loss, the special payments that will liquidate anyincrease in a going concern unfunded liability resulting from the lossover a term that does not exceed:

 

                                    (A)   15 years, for a plan other than a specified multi-employer pensionplan,

 

                                    (B)   10 years, for a specified multi-employer pension plan,

 

                           (ii)    if there is an actuarial gain, any intended application of the gain inaccordance with Section 96.

 

         (3)    A valuation report under this Section must also set out all of the following for thepension plan, on the basis of a solvency valuation:

 

                  (a)    all the information required in clauses 52(2)(a) to (g) for an initial valuationreport;

 

                  (b)    any special payments remaining to be paid after the valuation date with respectto a solvency deficiency determined in a previous valuation report;

 

                  (c)    the liabilities referred to in clauses 7(2)(a) to (d) that are being excluded fromthe calculation of the solvency liabilities in accordance with that Section.

 

         (4)    Each report under this Section must also set out the previous year credit balance asof the valuation date of the report.

 

         (5)    Each report under this Section for a designated plan must contain a maximumfunding valuation.

 

Valuation reports for multi-employer pension plans

54     (1)    For a multi-employer pension plan that is not a jointly sponsored pension plan, anactuary must do the following as part of a valuation report:

 

                  (a)    perform tests that will demonstrate that the contributions required by thecollective agreement or agreements are sufficient to provide for the benefitsunder the plan, without taking into account any provision for reducing thebenefits that is set out in the plan;

 

                  (b)    if the contributions required by the collective agreement or agreements are notsufficient to provide for the benefits under the plan, propose options availableto the administrator that will result in the required contributions beingsufficient to provide the benefits, in accordance with subsection 85(5) andSection 87.

 

         (2)    An actuary who proposes options in accordance with clause (1)(b) must do all of thefollowing:

 

                  (a)    provide a copy of the report containing the proposed options to theadministrator;

 

                  (b)    file a copy of the report no later than the earlier of,

 

                           (i)     30 days after the date that they provide the report to the administrator;and

 

                           (ii)    the time period referred to in Section 59.

 

         (3)    No later than 90 days after the date that an administrator receives a copy of a reportunder subsection (2) for a pension plan, the administrator must do all of thefollowing:

 

                  (a)    take actions that will result in the required contributions being sufficient toprovide for benefits under the plan;

 

                  (b)    advise the Superintendent of the actions taken under clause (a);

 

                  (c)    file all documents relevant to the actions taken under clause (a).

 

Solvency concerns indicated in initial or review valuation report

55     (1)    Except as provided in subsections (3), if a valuation report under Section 52 or 53indicates solvency concerns, the first valuation report for the plan under Section 53following the valuation report in which the solvency concerns were identified mustbe prepared and certified with a valuation date no later than 1 year after thevaluation report.

 

         (2)    For the purposes of subsection (1), a valuation report indicates solvency concerns ifthe ratio of the solvency assets to the solvency liabilities, for a valuation date on orafter the date these regulations come into force, is less than 0.85.

 

         (3)    Subsection (1) does not apply to any of the following pension plans:

 

                  (a)    a plan that is established for less than 3 years, unless the plan is a successorplan as described in Section 108 or 110 of the Act;

 

                  (b)    a plan that is a designated plan or an individual pension plan.

 

Valuation report for plan that ceases to be designated plan or individual pension plan

56     An administrator of a pension plan that ceases to be a designated plan or an individualpension plan must cause the plan to be reviewed and a valuation report for the plan mustbe prepared under Section 53 and certified with a valuation date that is no later than theend of the fiscal year in which the plan ceased to be a designated plan or an individualpension plan.

 

Superintendent may require additional valuation report

57     (1)    This Section does not apply to any of the following pension plans, unless the plan isa jointly sponsored pension plan:

 

                  (a)    a multi-employer pension plan established under a collective agreement or trustagreement;

 

                  (b)    a pension plan that provides defined benefits under which the employercontributions are limited to a fixed amount set out in a collective agreement.

 

         (2)    The Superintendent may cause an additional valuation report to be prepared for apension plan by an actuary chosen by the Superintendent if all of the followingapply:

 

                  (a)    a valuation report that is required for the plan is not filed 1 year after the date itis required to be filed under these regulations;

 

                  (b)    the Superintendent considers that preparing an additional valuation reportunder this Section is necessary to ensure that the plan is sufficiently funded toprovide the benefits under the plan.

 

         (3)    An additional valuation report required under subsection (2) must contain all of theinformation that is required for the missing valuation report identified under clause(2)(a) and be submitted to the Superintendent within a time period established by theSuperintendent.

 

         (4)    If during the preparation of an additional report under this Section the Superintendentforms the opinion that the report is no longer necessary to ensure that the plan issufficiently funded to provide the benefits under the plan, the Superintendent maycause work on the report to cease and the actuary is not required to submit the reportto the Superintendent.

 

Payment of contributions in accordance with additional valuation report

58     (1)    If an additional valuation report is prepared for a pension plan under Section 57,employer contributions or employee contributions must be made under the plan inaccordance with the report unless this Section provides otherwise.

 

         (2)    If a payment requirement set out in an additional valuation report under Section 57differs from a payment requirement set out in a previous valuation report filed for thepension plan, any person or entity required to make employer contributions oremployee contributions under the plan must make payments in accordance with thehigher requirement, unless subsection (3) applies.

 

         (3)    If the Superintendent considers that the payment of the higher amount undersubsection (2) unnecessary to ensure that the plan is sufficiently funded to providebenefits under the plan, the payments must be made in accordance with the loweramount.

 

Time period for filing valuation reports

59     (1)    Except as provided in subsection (2), an administrator must file a valuation report nolater than 9 months after the valuation date established for the valuation report.

 

         (2)    Subsection (1) does not apply to a valuation report that is a solvency relief reportwithin the meaning of subclause (ii) of the definition of “solvency relief report” inSection 106.

 

Cost certificates

60     (1)     A cost certificate must be filed under this Section in all of the followingcircumstances:

 

                  (a)    an actuarial gain is applied to reduce contributions to a pension plan inaccordance with subsection 96(3);

 

                  (b)    there is a previous year credit balance for a pension plan other than a previousyear credit balance referred to in subsection 102(2).

 

         (2)    Except as otherwise provided in these regulations, a cost certificate must contain allof the following for the pension plan it is prepared for:

 

                  (a)    an estimate of the normal cost for the fiscal year beginning on the valuationdate of the certificate;

 

                  (b)    an estimate of the total employee contributions to be made during the fiscalyear;

 

                  (c)    each of the following, determined as of the valuation date of the certificate:

 

                           (i)     the going concern assets,

 

                           (ii)    the estimated going concern liabilities,

 

                           (iii)   the solvency assets,

 

                           (iv)   the estimated solvency liabilities;

 

                  (d)    the previous year credit balance;

 

                  (e)    the estimated transfer ratio, calculated using the solvency assets and estimatedsolvency liabilities from clause (c).

 

         (3)    A cost certificate must be prepared using methods and actuarial assumptions that areconsistent with accepted actuarial practice and with the requirements of the Act andthese regulations, based on a valuation date that is the first day of the fiscal year ofthe pension plan to which the certificate relates.

 

         (4)    An administrator must file a cost certificate for the fiscal year of a pension plan nolater than 90 days after the beginning of the fiscal year of the plan.

 

Reports and certificates to be prepared by actuary, accountant or other authorized person

61     (1)    Except as provided in subsection (2), a valuation report, cost certificate or wind-upreport must be prepared by an actuary.

 

         (2)    A valuation report, cost certificate or wind-up report for any of the following pensionplans may be made by a public accountant or a person authorized by an insurancecompany, a trust corporation or by the Annuities Branch of the federal Departmentof Labour that is responsible for administering the plan or pension fund:

 

                  (a)    a plan that provides only defined contribution benefits;

 

                  (b)    a fully insured plan, established before January 1, 1988, that is underwritten bya contract or contracts with an insurance company and that does not requireany contributions to be made by employees;

 

                  (c)    a plan that is underwritten by a contract or contracts issued under theGovernment Annuities Act (Canada).

 

Use of actuarial methods and assumptions in preparing valuation and wind-up reports

62     (1)    Subject to subsection (2), an actuary must use actuarial cost methods andassumptions that are consistent with part 3000 of the Canadian Institute of ActuariesStandards of Practice, and methods and assumptions that are consistent withaccepted actuarial practice and with the requirements of the Act and theseregulations to prepare a valuation report or a wind-up report.

 

         (2)    An actuary preparing an additional valuation report under Section 57 must use theirbest efforts to meet the standards set out in subsection (1), and must disclose in thereport any respect in which the report does not meet those standards.

 

         (3)    An actuary must certify that a report they prepare meets the standards required bysubsection (1) or (2) for the report.

 

Actuarial information summary to accompany valuation report

63     (1)    A valuation report must be accompanied by an actuarial information summary in anapproved form.

 

         (2)    An actuarial information summary must be signed by the same actuary who signs thevaluation report that it accompanies.

 

Copy of report to agent of administrator

64     If an administrator’s agent is responsible for receiving contributions under a pension plan,the administrator must give the agent a copy of each valuation report filed for the plan.

 

Filing annual information return

65     (1)    Except as provided in subsection (3), the annual information return for a pensionplan must be filed no later than 6 months after the end of the plan’s fiscal year.

 

         (2)    An annual information return must be accompanied by the prescribed fee required bysubsection 31(1) of the Act.

 

         (3)    Subsection (1) does not apply to an annual information return filed as part of thedocuments required on wind-up under Section 181.

 

Financial statements required to be filed for pension plans

66     (1)    In this Section, “pooled funds” means the money held in a fund established by acorporation that is duly authorized to operate a fund in which moneys from 2 ormore depositors are accepted for investment and in which shares allocated to eachdepositor serve to establish the proportionate interest at any time of each depositor inthe assets of the fund.

 

         (2)    Except as otherwise provided in this Section, audited financial statements for apension fund as at the plan’s fiscal year end must be filed by an administrator, asrequired by subsection 31(2) of the Act, no later than 6 months after the end of theplan’s fiscal year.

 

         (3)    An administrator of a pension plan, other than a multi-employer pension plan or aplan established by a pension fund society, is not required to comply with subsection(2) if 1 of the following applies to the plan:

 

                  (a)    the market value of the plan’s assets at the end of the plan’s fiscal year is lessthan $5 000 000;

 

                  (b)    all of the funds of the plan are held in any of the following:

 

                           (i)     any type of account, by 1 insurance company,

 

                           (ii)    pooled funds for which custody is provided by a single trust companyand which are audited, at least annually, in accordance with theprinciples and standards set out in the Handbook of the CanadianInstitute of Chartered Accountants,

 

                           (iii)   a life annuity.

 

         (4)    Subsection (2) does not apply in respect of a fiscal year of a pension plan if the fiscalyear ends before the date these regulations come into force.

 

Content and preparation of financial statements

67     (1)    A pension plan’s financial statements must be prepared

 

                  (a)    in accordance with the principles and standards set out in the Handbook of theCanadian Institute of Chartered Accountants and include all of the informationthat the Handbook of the Canadian Institute of Chartered Accountants requiresbe set out in the financial statements of a pension fund;

 

                  (b)    on the accrual basis of accounting; and

 

                  (c)    in accordance with generally accepted accounting principles.

 

         (2)    A pension plan’s financial statements must be made up of all of the following:

 

                  (a)    a statement of net assets;

 

                  (b)    a statement of changes in net assets and pension obligations.

 

         (3)    A pension plan’s financial statements must disclose each investment of the pensionfund that has a market value greater than 2% of the market value of all of theinvestments of the pension fund.

 

         (4)    A pension plan’s financial statements must identify all of the following:

 

                  (a)    the name of the plan and its Provincial registration number;

 

                  (b)    the fiscal period for which the financial statements were prepared.

 

         (5)    A pension plan’s financial statements must be approved by the administrator and theapproval must be evidenced by the manual or facsimile signature of the following:

 

                  (a)    the administrator;

 

                  (b)    if the administrator is a pension committee, board of trustees or a board,agency or commission acting as the administrator, 2 members duly authorizedto signify the approval;

 

                  (c)    if the administrator is an insurance company, an officer of the company dulyauthorized to sign on behalf of the insurance company.

 

Auditor’s report on financial statements

68     A pension plan’s financial statements must be accompanied by an auditor’s reportprepared by a public accountant in accordance with the principles and standards set out inthe Handbook of the Canadian Institute of Chartered Accountants.

 

Auditor’s duty to report to administrator and Superintendent

69     (1)    An auditor who audits a pension plan’s financial statements must immediately reportto the administrator if they become aware that there are circumstances that indicatethat there has or may have been a contravention of the Act or these regulations.

 

         (2)    An auditor must report to the Superintendent any matter they have reported undersubsection (1) that they consider to be significant and that is not corrected 30 daysafter the date it was first reported to the administrator.

 

Extension of time limit for filing of document

70     All of the documents that are required by the Act or these regulations to be filed areprescribed for the purposes of clause 123(1)(b) of the Act as documents in relation towhich the Superintendent may extend a time limit for the filing of the documents.

 

Information to Members and Others

 

Member and eligible member information

71     The information required to be provided to members and eligible members of a pensionplan under subsection 38(1) of the Act must be provided to the following persons, asrequired by subsection 38(2) of the Act, within the times specified:

 

                  (a)    to a person who becomes a member of the plan on the date the plan isestablished, no later than 60 days after the date the plan is established;

 

                  (b)    to an employee who will become eligible to become a member of the plan, nolater than 60 days before the date that the person will become eligible;

 

                  (c)    to a person who is eligible to become a member of the plan on becomingemployed, no later than 60 days after the person begins employment.

 

Information to be provided where plan permits optional contributions

72     In addition to the information required to be provided to members and each person whowill be eligible or is required to become a member under subsection 38(1) of the Act, all ofthe following information is prescribed under clause 38(1)(c) of the Act to be provided byan administrator of a pension plan that permits a member to make optional contributions:

 

                  (a)    the terms and conditions for making an election to convert optionalcontributions to optional benefits;

 

                  (b)    the optional benefits available on conversion of the optional contributions tooptional benefits;

 

                  (c)    a summary of the method used to convert the optional contributions;

 

                  (d)    a statement that there is a risk of forfeiting all or part of the optionalcontributions if there are insufficient benefits available at the time ofconversion to completely use all of the member’s optional contributions.

 

Information to be provided before variable benefits account established

73     (1)    Before a member or former member elects to establish a variable benefits accountunder the provisions of a pension plan, the administrator must provide the memberor former member with a statement setting out all of the following information:

 

                  (a)    the information required to be included in the plan by subsection 149(1);

 

                  (b)    for a plan that provides for the matters addressed in subsections 149(2) or150(1), the information set out in those subsections.

 

         (2)    An administrator must provide the statement referred to in subsection (1) no laterthan 30 days after the date that the administrator receives any of the following:

 

                  (a)    a written request from a member or former member for the statement;

 

                  (b)    a written notice from a member or former member that they wish to elect toestablish a variable benefits account.

 

Annual statement to members

74     (1)    An annual statement to members must be provided no later than 6 months after theend of a pension plan’s fiscal year.

 

         (2)    An annual statement to members must contain at least all of the followinginformation for the period covered by the statement, as the information is recorded inthe administrator’s records for the pension plan:

 

                  (a)    the name of the plan and its Provincial registration number;

 

                  (b)    the member’s name and date of birth;

 

                  (c)    the name of any person recorded as the member’s spouse;

 

                  (d)    the date that the member joined the plan;

 

                  (e)    for all plans other than multi-employer pension plans, the date that the memberwas employed by the employer;

 

                  (f)    the period covered by the statement;

 

                  (g)    the name of any person designated by the member as a beneficiary for thepurposes of the pre-retirement death benefit under Section 67 of the Act;

 

                  (h)    a description of any benefits to be provided on the member’s death other thanthose required under Section 63 or 67 of the Act;

 

                  (i)     the member’s normal retirement date under the plan;

 

                  (j)     the earliest date the member will be eligible to receive any unreduced pensionthat may be available to the member;

 

                  (k)    the amount of any required contributions the member made to the pension fundduring the period;

 

                  (l)     the accumulated amount of any required contributions the member made to thepension fund, including interest credited to the contributions, to the end of theperiod;

 

                  (m)   the amount of any additional voluntary contributions the member made to thepension fund during the period;

 

                  (n)    the accumulated amount of any additional voluntary contributions the membermade to the pension fund, including interest credited to the contributions, to theend of the period;

 

                  (o)    the amount of any optional contributions the member made to the pension fundduring the period;

 

                  (p)    the accumulated amount of any optional contributions the member made to thepension fund, including any interest credited to the contributions, to the end ofthe period;

 

                  (q)    for a plan that provides defined contribution benefits,

 

                           (i)     the amount of employer contributions allocated to the member during theperiod, and

 

                           (ii)    the accumulated amount of employer contributions allocated to themember, including interest credited to the contributions, to the end of theperiod;

 

                  (r)    for a plan that provides defined benefits,

 

                           (i)     the number of years of employment, or membership in the plan, used tocalculate the member’s pension benefits, determined as of the end of theperiod,

 

                           (ii)    if salary is a factor in determining a pension benefit, the salary level usedto determine the benefit,

 

                           (iii)   the annual amount of pension benefit that will be payable at the normalretirement date, accrued as of the end of the period,

 

                           (iv)   whether the amount referred to in subclause (iii) is reduced by an amountof pension payable under the CPP, QPP or OAS,

 

                           (v)    the transfer ratio of the plan as of the valuation date of each of the 2valuation reports most recently filed or submitted to the Superintendent,

 

                           (vi)   an explanation of the transfer ratio and how it relates to the level offunding of members’ benefits;

 

                  (s)    for a plan that permits a member to make optional contributions,

 

                           (i)     the estimated amount of optional contributions that the member couldmake in the following year,

 

                           (ii)    the optional benefits chosen by the member, and

 

                           (iii)   a statement that there is a risk of forfeiting part of those contributionsunder the federal Income Tax Act;

 

                  (t)     if special payments are being made, a statement that special payments arebeing made to liquidate an unfunded liability or solvency deficiency;

 

                  (u)    if there is a solvency deficiency, a statement as to whether the employer hasprovided a letter of credit to the trustee of the pension fund instead of makingpayments in relation to the solvency deficiency;

 

                  (v)    if the plan is exempt from the requirement to fund a solvency deficiency, astatement that the plan is exempt and the dates for the beginning and end of theexemption period;

 

                  (w)   a statement setting out the treatment of any surplus in a continuing plan and onwind-up;

 

                  (x)    an explanation of any amendments affecting the member that were made to theplan during the period, if an explanation has not been provided under Section30;

 

                  (y)    for multi-employer pension plans and plans that provide defined benefits underwhich the obligation of the employer to contribute to the pension fund islimited to a fixed amount set out in a collective agreement, a statement that themember’s pension benefits may be reduced if the assets of the plan are notsufficient to meet the liabilities of the plan on wind-up.

 

Annual statement to variable benefits participant

75     No later than 60 days after December 31 of each year, an administrator must provide toeach variable benefits participant who received a variable pension benefit in that year astatement containing the following information about their variable benefits account:

 

                  (a)    the name of the pension plan and its Provincial registration number;

 

                  (b)    the participant’s name;

 

                  (c)    the date the variable pension benefits began;

 

                  (d)    the account balances at the beginning and end of the period for which thestatement is provided;

 

                  (e)    the income and gains, net of losses, earned by the variable benefits accountduring the year;

 

                  (f)    the total of the amounts paid as variable pension benefits to the participantduring the year;

 

                  (g)    the amounts transferred to the participant’s variable benefits account during theyear and their source;

 

                  (h)    the amount and nature of the fees charged to the participant’s variable benefitsaccount during the year;

 

                  (i)     the date of birth used to determine the minimum variable pension benefitspayable for the year in accordance with subclause 149(1)(f)(i);

 

                  (j)     if the pension is being paid to the member or former member, the name of anyspouse or beneficiary of the member or former member;

 

                  (k)    information about the election the participant may make for the amount to bepaid, including information about all of the following:

 

                           (i)     the minimum and maximum amounts payable, in accordance with clause149(1)(f),

 

                           (ii)    how the participant may notify the administrator of their election, and thedeadline for making the election,

 

                           (iii)   the amount that will be paid if the participant does not make an election,

 

                           (iv)   how the participant may change their election;

 

                  (l)     that the participant has the right to purchase a life annuity now or at a futuredate.

 

Statement on termination of employment or membership

76     (1)    An administrator must provide the written statement they are required to provideunder Section 41 of the Act to the persons referred to in that Section no later than thefollowing:

 

                  (a)    if notice of termination or cessation is provided to the administrator before theevent, 60 days after the date the member’s employment is terminated or theirmembership in the plan ceases;

 

                  (b)    if notice of termination or cessation is not provided to the administrator beforethe event, 60 days after the date the administrator receives the notice.

 

         (2)    Except as provided in subsection (3), the written statement referred to in subsection(1) must contain at least all of the following information, as the information isrecorded in the administrator’s records for the pension plan:

 

                  (a)    all of the information required for an annual statement to members in clauses74(2)(a) to (j);

 

                  (b)    the years of employment or membership credited under the plan for thepurpose of calculating the member’s pension benefit;

 

                  (c)    the amount of the pension benefits and ancillary benefits that the member isentitled to on termination and any options respecting the benefits, includingearly, normal and postponed dates for beginning payment of benefits;

 

                  (d)    any formula by which the member’s deferred pension will be integrated with apension payable under the CPP, QPP or OAS and any resulting reduction orincrease to the deferred pension;

 

                  (e)    any bridging benefit to be paid to the member, and the date that the benefit orallowance ceases to be paid;

 

                  (f)    any indexing under the plan that will apply to the member’s deferred pension;

 

                  (g)    any benefit payable on the member’s death, if the member dies before thepayment of pension benefits begins;

 

                  (h)    any benefit payable on the member’s death, if the member dies after paymentof pension benefits begins;

 

                  (i)     the transfer value of the member’s deferred pension, as determined underSection 136;

 

                  (j)     any options the member has for transferring the commuted value of theirdeferred pension under Section 61 of the Act, including

 

                           (i)     how the transfer ratio determined under Section 11 applies to the transferoption,

 

                           (ii)    if the transfer ratio is less than 1.00, the amount that may be transferredout immediately and the manner in which the balance will be paid, and

 

                           (iii)   the time period for exercising any option;

 

                  (k)    any refund the member is entitled to under subsection 55(4) or 87(2) or (5) ofthe Act, including

 

                           (i)     the amount of the refund,

 

                           (ii)    any options available with respect to the refund,

 

                           (iii)   the time period for exercising the available options;

 

                  (l)     information about any effect the member’s election to receive a refund undersubsection 55(4) or 87(2) or (5) of the Act would have on their pension ordeferred pension;

 

                  (m)   any options available to the member to have payment made into a registeredretirement savings arrangement under subsection 55(5) or 87(7) of the Act andthe time period for exercising the available options.

 

         (3)    Instead of the information required by subsection (2), a written statement referred toin subsection (1) that is provided to a member of a pension plan that provides forpayment of the commuted value of a benefit in accordance with subsection 70(1) ofthe Act must contain at least all of the following information, as the information isrecorded in the administrator’s records for the plan:

 

                  (a)    the information required for an annual statement to members in clauses74(2)(a) and (b);

 

                  (b)    the years of employment or membership credited under the plan for thepurpose of calculating the member’s pension benefit;

 

                  (c)    the amount of the member’s pension benefits and ancillary benefits that arevested under the plan;

 

                  (d)    any options available to the member for payment of the commuted value of apension benefit under subsection 70(3) of the Act and the time periods forexercising the available options;

 

                  (e)    any refund the member is entitled to under subsection 55(4) or 87(2) or (5) ofthe Act, including

 

                           (i)     the amount of the refund,

 

                           (ii)    any options available with respect to the refund,

 

                           (iii)   the time periods for exercising the available options.

 

Statement to variable benefits participant on transfer from variable benefits account

77     No later than 60 days after the date a written request is received from a variable benefitsparticipant to transfer an amount from a variable benefits account, an administrator mustprovide the participant with a statement containing all of the following information aboutthe variable benefits account, as of the date the request was received:

 

                  (a)    all of the information required for an annual statement to participants in clauses75(a) to (h);

 

                  (b)    the amount available to be transferred;

 

                  (c)    the minimum amount, as determined under the federal Income Tax Act, thatmay be paid in the year;

 

                  (d)    the maximum amount, as determined under Section 151, that may be paid inthe year.

 

Death benefits statement

78     If the death of a member or a former member who is not receiving payments under apension plan at the time of their death results in their spouse, beneficiary or estatebecoming entitled to a benefit under the plan, the administrator must, no later than 60 daysafter receiving notice of the death, provide the spouse, beneficiary or personalrepresentative with a statement that contains at least all of the following information, as isrecorded in the administrator’s records for the plan:

 

                  (a)    the name of the plan and its Provincial registration number;

 

                  (b)    the name of the deceased member or former member;

 

                  (c)    the amount of the benefit and how it will be paid;

 

                  (d)    any amount payable as a lump sum under subsection 55(4) of the Act;

 

                  (e)    any indexing under the plan that applies to a pension;

 

                  (f)    the amount of any pension resulting from additional voluntary contributionsand optional contributions, if applicable;

 

                  (g)    the amount of any pension purchased with contributions resulting from atransfer made on behalf of the member from another pension fund;

 

                  (h)    for a spouse, the options available under Section 63 or 67 of the Act.

 

Statement after death of variable benefits participant

79     The written statement required to be provided under Section 41 of the Act to a person whois entitled to receive the balance of a variable benefits account must be provided no laterthan 60 days after receiving proper notification of the variable benefits participant’s deathand must include all of the following information about the variable benefits account as ofthe date of death:

 

                  (a)    the information required for an annual statement to participants in clauses 75(a)to (h);

 

                  (b)    the date the variable benefits participant died;

 

                  (c)    information about the payment and transfer options available to the recipient,including,

 

                           (i)     how the recipient may make an election, and the time period for makingthe election, and

 

                           (ii)    the balance in the account that will be paid or transferred if the recipientdoes not make an election.

 

Notification of options to retiring member

80     (1)    Except as provided in subsection (2), at least 60 days before a member’s normalretirement age or the date that a member has indicated they intend to retire on, anadministrator must notify the member of

 

                  (a)    any options respecting payment of their pension available to the member underthe pension plan, the Act and these regulations; and

 

                  (b)    the time period for exercising the available options.

 

         (2)    An administrator who does not receive enough advance notice to comply withsubsection (1) must provide the information required by subsection (1) no later than60 days after the date the administrator receives the completed application requiredto begin payment of the pension.

 

Retirement statement to member

81     (1)    An administrator must provide the written statement they are required to provideunder Section 41 of the Act when a member retires no later than the followingapplicable period:

 

                  (a)    if the administrator receives notification of the member’s retirement beforethey retire, 60 days after the date of the member’s retirement;

 

                  (b)    if the administrator does not receive notification of the member’s retirementbefore they retire, 60 days after the administrator receives the completedapplication required for beginning payment of the pension.

 

         (2)    The written statement referred to in subsection (1) must contain at least all of thefollowing information, as the information is recorded in the administrator’s recordsfor the pension plan:

 

                  (a)    the information required to be provided for an annual statement to members inclauses 74(2)(a) to (d);

 

                  (b)    the years of employment credited under the plan for purposes of calculating themember’s pension benefit;

 

                  (c)    the date that payment of pension benefits begins;

 

                  (d)    the amount of the pension the member is or will be entitled to based onelections made by the member;

 

                  (e)    any increase or reduction in the pension resulting from early or postponedretirement;

 

                  (f)    the amount of any pension benefit purchased with additional voluntarycontributions made by the member;

 

                  (g)    the optional benefits available to the member to enhance their pension and anyamount by which the member’s optional contributions exceed the maximumvalue of the optional benefits available for purchase, along with a statementthat the excess is retained in the plan;

 

                  (h)    the amount of any pension benefit purchased with contributions resulting froma transfer made on behalf of the member from another pension fund;

 

                  (i)     the formula by which any pension entitlement under the plan has beenintegrated with pensions payable under the CPP, QPP or OAS and the effect ofthe integration;

 

                  (j)     any bridging benefit, including special allowance, paid to the member and thedate that the benefit ceases to be paid;

 

                  (k)    any indexing provisions that will be applied to the pension or deferred pension;

 

                  (l)     any benefit payable if the member dies and the name of the person designatedas the beneficiary of the benefit;

 

                  (m)   any refunds the member is entitled to under the plan other than those listed inthis subsection.

 

Information required to be available on request

82     (1)    All of the following are prescribed as the records of a pension plan that anadministrator is required to make available for inspection without charge to specifiedpersons under subsection 42(1) of the Act:

 

                  (a)    a copy of the provisions of the current plan including any amendments to theplan;

 

                  (b)    any documents relating to the plan that must be filed in support of anapplication for registration of the plan as set out in subsection 28(3) or insupport of an application for registration of an amendment to the plan as setout in subsection 22(2) of the Act and prescribed in subsection 31(1);

 

                  (c)    for a plan that is a successor pension plan, a copy of the provisions of theprevious pension plan, including any amendments to the previous plan;

 

                  (d)    any documents relating to a previous version of the plan that must be filed insupport of an application for registration of the plan as set out in subsection28(3) or in support of an application for registration of an amendment to theplan as set out in subsection 22(2) of the Act and prescribed in subsection31(1);

 

                  (e)    the applicable provisions of any document that sets out an employer’sresponsibilities under the plan;

 

                  (f)    any document that delegates the administration of the plan or pension fund;

 

                  (g)    copies of any information returns, actuarial information summaries and otherinformation summaries filed for the plan;

 

                  (h)    copies of any valuation reports for the plan that have been filed or submitted tothe Superintendent;

 

                  (i)     copies of correspondence about the plan between the administrator and theSuperintendent, or the staff of the Superintendent, for the 5-year period beforethe date of the request, but excluding any personal information that relates to amember, former member or retired member unless the person’s prior consent isobtained;

 

                  (j)     copies of the parts of any agreement relating to the purchase or sale of abusiness or the assets of a business that are filed for the plan;

 

                  (k)    copies of any financial statements and the accompanying auditor’s report onthe financial statements for the plan’s pension fund that are filed for the plan;

 

                  (l)     copies of any letter of credit held in trust for the plan, any related trustagreement and any certificate filed by the administrator under clause 121(3)(b);

 

                  (m)   copies of any statements of investment policies and procedures that areestablished for the plan under these regulations.

 

         (2)    All of the following are prescribed as the records of a pension plan or pension fundthat an administrator is required by subsection 42(5) of the Act to provide copies ofby mail or, subject to subsection (3), electronically, to persons described insubsection 42(1) of the Act:

 

                  (a)    the provisions of the current plan, including any amendments to the plan;

 

                  (b)    the valuation report most recently filed or submitted to the Superintendent forthe plan;

 

                  (c)    the most recently filed financial statements and the accompanying auditor’sreport on the financial statements for the plan’s pension fund;

 

                  (d)    the most recently filed actuarial information summary filed under Section 63for the plan;

 

                  (e)    the most recently filed annual information return filed under Section 65 for theplan;

 

                  (f)    the most recently established statement of investment policies and proceduresfor the plan established under Section 48.

 

         (3)    The records prescribed in subsection (2) may be provided electronically if the personwho requested them gives their permission.

 

         (4)    An administrator must comply with a written request for information made underSection 42 of the Act no later than 30 days after the date the request is received.

 

         (5)    In addition to the information prescribed in subsection (1), any parts of a pensionplan and other documents or information that are applicable to the person areprescribed as records that the person may inspect or request copies of under Section42 of the Act.

 

         (6)    The maximum amount that may be charged as an applicable fee for providingrecords in accordance with subsection 42(7) of the Act is

 

                  (a)    55 cents per page for a paper copy; and

 

                  (b)    $5.65 for each record provided electronically.

 

Inspection of filed records of pension plan and pension fund

83     (1)    The records prescribed in clauses 82(1)(a) to (l) are the records that specifiedpersons are entitled to inspect at the office of the Superintendent in accordance withclause 43(2)(b) of the Act.

 

         (2)    The records prescribed in clauses 82(2)(a) to (e) are the records that theSuperintendent must provide by mail or, subject to subsection (3), electronicallyunder subsection 43(4) of the Act.

 

         (3)    The records referred to in subsection (2) may be provided electronically if the personwho requests them gives their permission.

 

         (4)    In addition to the information prescribed in subsections (1) and (2), any parts of apension plan and other documents or information that are applicable to a person arerecords that the person is entitled to inspect or request copies of under Section 43 ofthe Act.

 

Records Respecting Pension Plans

 

Retention of records

84     (1)    In this Section,

 

“record” includes all of the following:

 

                           (i)     accounts, books, files, returns, statements, reports, financial documentsor other memorandums of financial or non-financial information,whether in writing or in electronic form or represented or reproduced byany other means,

 

                           (ii)    the results of the recording of details of electronic data processingsystems and programs to illustrate what the systems and programs do andhow they operate.

 

         (2)    Records respecting a pension plan that are in the possession or control of anadministrator, an employer or any other person other than a member or otherbeneficiary must be retained by the person for at least the longest of the followingapplicable periods:

 

                  (a)    for a record relating to the creation of the plan or any previous version of theplan, 7 years after the later of the following dates:

 

                           (i)     the date that the last assets of the plan’s pension fund are distributed,

 

                           (ii)    the date that the administrator gives the Superintendent written noticeunder Section 182 that all the assets of the plan have been distributed inrelation to the winding up of the plan;

 

                  (b)    for a record relating to a benefit under the plan, 7 years after the later of thefollowing dates:

 

                           (i)     the date the benefit is paid in full,

 

                           (ii)    the date the entitlement to the benefit is otherwise extinguished;

 

                  (c)    for a record not described in clause (a) or (b), 7 years after the later of thefollowing dates:

 

                           (i)     the date of the last transaction to which the record relates occurred,

 

                           (ii)    the date that the record ceases to have effect.

 

         (3)    The requirement in subsection (2) may be satisfied by retaining an electronic recordif all of the following conditions are met:

 

                  (a)    it is retained in a format that accurately represents the information contained inthe original record;

 

                  (b)    it is accessible so as to be usable for subsequent reference by any personentitled to have access to it or a copy of it;

 

                  (c)    for a document that was sent or received, the record includes information thatidentifies the origin and destination of the document and the date and timewhen it was sent or received.

 

Part 3: Funding of Pension Plans

 

Payment of Contributions

 

Employer contributions and employee contributions set out in pension plan

85     (1)    A pension plan must set out all the obligations for persons or entities to makeemployer contributions and employee contributions in respect of all of the followingunder the plan:

 

                  (a)    the normal cost;

 

                  (b)    any going concern unfunded liability;

 

                  (c)    unless exempted in this Section, any solvency deficiency.

 

         (2)    The following pension plans are not required to include a provision that sets out theobligations to make employer contributions in respect of any solvency deficiencyunder the plan:

 

                  (a)    a municipality pension plan that provides defined benefits;

 

                  (b)    a university pension plan that provides defined benefits;

 

                  (c)    a specified multi-employer pension plan;

 

                  (d)    the Pension Plan for the Non-Teaching Employees of the School Boards ofNova Scotia–Registration No.: 694778;

 

                  (e)    the South Shore Regional School Board CUPE Staff Pension Plan–Registration No.: 582346;

 

                  (f)    the South Shore Regional School Board Support Staff PensionPlan–Registration No.: 948141;

 

                  (g)    the Tri-County Regional School Board CUPE Staff Pension Plan–RegistrationNo.: 1198076;

 

                  (h)    the Tri-County Regional School Board Support Staff Pension Plan-RegistrationNo.: 1198068;

 

                  (i)     the Atlantic Police Association Pension Plan–Registration No.: 414342;

 

                  (j)     the Halifax Regional Water Commission Employees’ Pension Plan-Registration No.: 344614.

 

         (3)    In subsection (2),

 

“municipality pension plan” means a pension plan for

 

                           (i)     employees of a municipality; or

 

                           (ii)    employees of an employer who is not municipality if, as of December 21,2012, the municipality that sponsors the plan has authorized theparticipation of the employees in the plan;

 

“university” means a designated university under the University Foundations Act;

 

“university pension plan” means a pension plan for employees of a university.

 

         (4)    For the DIRECTIONS Council for Vocational Services Society Pension Plan-Registration No. 908699, the funding provision required by subsection (1) in respectof any solvency deficiency under the plan may be limited to the period beginningJanuary 1, 2018.

 

         (5)    A multi-employer pension plan, other than a jointly sponsored pension plan, that isestablished under a collective agreement or trust agreement or a pension plan thatprovides defined benefits under which the employer contributions are limited to afixed amount set out in a collective agreement must include a provision for thefunding of pension benefits and any other benefits provided under the plan that setsout the obligation to make employer contributions under the plan.

 

Minimum contributions to pension plan

86     (1)    Except as provided in subsection (5), the employer contributions and employeecontributions made under a pension plan must not be less than the sum of all of thefollowing:

 

                  (a)    all contributions, including contributions in respect of any going concernunfunded liability and solvency deficiency;

 

                  (b)    all contributions required to pay the normal cost;

 

                  (c)    all special payments determined in accordance with Section 99 or 101 as theminimum amount of special payments that must be made to fund a goingconcern unfunded liability or liquidate a solvency deficiency;

 

                  (d)    all special payments determined in accordance with the temporary exceptionsin Section 104, 105 or 107 as the minimum amounts of special payments thatmust be made to fund a going concern unfunded liability or a solvencydeficiency;

 

                  (e)    all payments determined in accordance with Sections 183 to 186 as thepayments required to be made to a pension plan on wind-up or partial wind-upof the plan under Sections 99 and 100 of the Act.

 

         (2)    An employer required to make employer contributions under a designated plan or anindividual pension plan is not required to make a contribution that does not qualifyas an eligible contribution for the purposes of the federal Income Tax Regulations.

 

         (3)    For a pension plan that is exempted from special payments under subsection 19(6),employer contributions are not required to be made in relation to special paymentsrequired to liquidate any solvency deficiency determined in accordance with Section99, 101, 105 or 107, except to the extent of any payments accrued due and payable inaccordance with the former regulations.

 

         (4)    For greater certainty, nothing in subsection (2) or (3) relieves an employer, or anyperson required to make contributions on behalf of the employer, of their obligationto make payments into the pension fund of the following amounts on wind-up of theplan under subsection 99(2) of the Act:

 

                  (a)    the amount necessary to fully fund the benefits provided for under the plan;

 

                  (b)    the amount required to fully fund the benefits provided under Section 97 of theAct.

 

         (5)    Employer contributions for a multi-employer pension plan, other than a jointlysponsored pension plan, that is established under a collective agreement or trustagreement must not be less than the sum of all of the following:

 

                  (a)    any employee contributions;

 

                  (b)    any amounts set out in the applicable collective agreement that are required tobe paid as employer contributions.

 

Sufficiency of contributions for a multi-employer pension plan

87     (1)    For a multi-employer pension plan that is not a jointly sponsored pension plan or aspecified multi-employer pension plan, the contributions required under the plan aresufficient if, for each year of a period covered by a valuation report for the plan, theyare not less than the sum of all of the following amounts, determined in accordancewith subsection (2):

 

                  (a)    the normal cost of the plan;

 

                  (b)    the special payments set out in a previous valuation report that remain to bepaid with respect to any going concern unfunded liability;

 

                  (c)    the special payments set out in a previous valuation report that remain to bepaid with respect to any solvency deficiency;

 

 

                  (d)    the special payments to be paid with respect to any going concern unfundedliability that is determined in the valuation report;

 

                  (e)    the special payments to be paid with respect to any solvency deficiency that isdetermined in the valuation report.

 

         (2)    The amounts required to determine the sufficiency of required contributions undersubsection (1) must be determined on the basis of all of the following:

 

                  (a)    a going concern valuation;

 

                  (b)    a solvency valuation.

 

Sufficiency of contributions for Specified multi-employer pension plan

88     The contributions required under a specified multi-employer pension plan are sufficient if,for each year of a period covered by a valuation report for the plan, they are not less thanthe sum of all of the following amounts, determined on the basis of a going concernvaluation:

 

                  (a)    the normal cost of the plan;

 

                  (b)    the special payments set out in a previous valuation report that remain to bepaid with respect to any going concern unfunded liability;

 

                  (c)    the special payments to be paid with respect to any going concern unfundedliability that is determined in the report.

 

Contributions made to a jointly sponsored pension plan

89     For a jointly sponsored pension plan, the contributions referred to in subsection 55(3) ofthe Act include employee contributions made in respect of any going concern unfundedliability or solvency deficiency.

 

Previous year credit balance used to reduce employer payments

90     If there is a previous year credit balance for a plan, an employer may apply the previousyear credit balance to reduce the payments required under clauses 86(1)(b) to (e).

 

Funding of escalated adjustments

91     (1)    For benefits that accrue on or after the date these regulations come into force under apension plan that provides for escalated adjustments, the escalated adjustments mustbe pre-funded on the basis of both a going concern valuation and a solvencyvaluation.

 

         (2)    For benefits that accrued before the date these regulations come into force under apension plan that provides for escalated adjustments, the escalated adjustments mustbe funded in accordance with all of the following:

 

                  (a)    the estimated future costs of any escalated adjustments provided for under theplan may be excluded from the calculations for the minimum amount ofspecial payments set out in Sections 99, 101, 104, 105 and 107;

 

                  (b)    the amounts of any escalated adjustments, to the extent that they have not beenpre-funded on a going concern basis, are deemed to be part of the normal cost;

 

                  (c)    factors attributable to an escalated adjustment may be excluded in determiningthe existence or amount of any going concern unfunded liability for anyvaluation report prepared for the plan.

 

When and how payment of contributions to be paid

92     (1)    Employee contributions must be paid by the employer to the pension plan no laterthan 30 days after the month the sum is received by the employer or withheld fromthe employee by payroll deduction or otherwise.

 

         (2)    For a pension plan that provides defined benefits, the employer contributions inrespect of the normal cost must be paid in monthly instalments in 1 of the followingamounts, no later than 30 days after the month for which contributions are payable:

 

                  (a)    a total fixed dollar amount;

 

                  (b)    a fixed dollar amount for each employee or member of the plan;

 

                  (c)    a fixed percentage of either

 

                           (i)     the portion of the payroll related to members of the plan, or

 

                           (ii)    employee contributions.

 

         (3)    For a pension plan that provides only defined contribution benefits, the employercontributions must be paid in monthly instalments in 1 of the following amounts, nolater than 30 days after the month for which contributions are payable:

 

                  (a)    a total fixed dollar amount;

 

                  (b)    a fixed dollar amount for each employee or member of the plan;

 

                  (c)    a fixed percentage of either

 

                           (i)     the portion of the payroll related to members of the plan, or

 

                           (ii)    employee contributions.

 

         (4)    If the date that a valuation report, other than an additional valuation report underSection 58, is filed or submitted to the Superintendent is later than the valuation dateof the report, and the report indicates that an increase is required in any of thefollowing, the employer must pay the increased amounts into the pension fund nolater than 12 months after the valuation date of the report in which the increase wasdetermined:

 

                  (a)    the amount of any contributions that were previously reduced by applying anactuarial gain under subsection 96(3);

 

(aa)the amount of any contributions in respect of the normal cost;

Clause 92(4)(aa) added: O.I.C. 2015-310, N.S. Reg. 326/2015.

 

                  (b)    special payments.

 

         (5)    The increased contributions or special payments in subsection (4) must be calculatedfrom the date on which they are required to be made to the date the report is filed orsubmitted to the Superintendent, and must include interest at the going concernvaluation interest rate or the solvency valuation interest rate, as applicable.

 

         (6)    If the period covered by a valuation report has ended and no report under Section 53or 57 covering a subsequent period is filed or submitted, employer contributions andemployee contributions must continue to be paid in accordance with the report mostrecently filed or submitted to the Superintendent under Section 31, 52, 53 or 57.

 

         (7)    Except as provided in subsection (6) for an increase in special payments, all specialpayments must be paid in equal monthly instalments no later than 30 days after themonth in relation to which the special payment is payable.

 

Time limits for contributions under pension plans that are subject to collective agreements

93     For a multi-employer pension plan, other than a jointly sponsored pension plan, that isestablished under a collective agreement or trust agreement or for a pension plan thatprovides defined benefits under which the obligation of an employer to contribute to theplan is limited to a fixed amount set out in a collective agreement, the contributionsrequired under the plan must be made no later than the following:

 

                  (a)    for employee contributions, 30 days after the month in which the sum wasreceived or deducted;

 

                  (b)    for all amounts other than those referred to in clause (a), the earlier of thefollowing:

 

                           (i)     the time limit specified by the applicable collective agreement,

 

                           (ii)    30 days after the end of the month in which the employment giving riseto the payments occurred.

 

Offset on conversion of plan to defined contribution benefit

94     If an amendment to a pension plan with defined benefits converts the defined benefits todefined contribution benefits, the employer may offset their employer contributions madein respect of the normal cost against the amount of any surplus in the pension fund afterthe conversion.

 

Restrictions on reductions or suspensions of contributions

95     (1)    In addition to the conditions listed in Section 76 of the Act for reducing orsuspending employer contributions and employee contributions for the normal costof a pension plan, an employer or any person or entity required to make employercontributions under a pension plan must provide the members, former members andretired members of the plan with 60 days’ prior written notice of their intention toreduce or suspend employer contributions and, if applicable, employee contributions.

 

         (2)    A reduction or suspension in employer contributions or employee contributionsunder Section 76 of the Act must not reduce a pension plan’s surplus to less than 5%of the value of the liabilities under the plan, determined as at the valuation date ofthe valuation report most recently filed or submitted to the Superintendent.

 

Use of actuarial gain

96     (1)    If a valuation report discloses an actuarial gain under a pension plan, the actuarialgain must be applied, firstly, to reduce any going concern unfunded liability, andthen may be applied as permitted under subsection (3).

 

         (2)    A going concern unfunded liability that is reduced under subsection (1) may be re-amortized over the remainder of the original amortization period for the liability orover a shorter period.

 

         (3)    Subject to subsection 95(2), in any year for which no special payments are requiredto be made for a pension plan, an actuarial gain may be applied to reduce employercontributions or employee contributions in respect of the normal cost of the plan.

 

Administrator’s or agent’s notice that contributions not paid

97     The notice required to be given by an administrator or agent to the Superintendent undersubsection 78(2) of the Act when a contribution is not paid when due must be given nolater than 60 days after the date the required contribution became due.

 

Summary of contributions

98     (1)    In this Section,

 

“summary of contributions” means the summary of contributions in an approvedform for the fiscal year of a pension plan that is required to be given undersubsection 79(1) of the Act to all persons who are prescribed in Section 46 for thepurposes of subsection 33(5) of the Act as trustees of a pension fund.

 

         (2)    The prescribed times for giving a summary of contributions for a pension plan are

 

                  (a)    for the first fiscal year of the plan, no later than 90 days after the plan isestablished;

 

                  (b)    for each year after the first fiscal year of the plan, no later than 60 days after thebeginning of the fiscal year;

 

                  (c)    for a revised version of a summary of contributions prepared under subsection(3), no later than 60 days after the administrator becomes aware of the change.

 

         (3)    If there is any change to a summary of contributions, a revised version of thesummary must be prepared by the administrator and provided to the pension fundtrustee.

 

         (4)    The notice that a trustee is required to give the Superintendent under subsection79(3) of the Act if the trustee does not receive the summary of contributions must begiven in writing no later than 30 days after the date the summary was required to begiven under subsection (2).

 

         (5)    The notice from a trustee that is required be given to the Superintendent undersubsection 79(4) of the Act if a contribution is not paid when due must be given inwriting no later than 60 days after the date the required contribution became due.

 

Special Payments—General

 

Minimum amount of special payments

99     (1)    Except as otherwise provided in this Section and in Sections 101, 104, 105 and 107,the special payments required to be made after the first valuation date of a valuationreport must not be less than the sum of all of the following amounts, paid in thefollowing manner and within the specified amortization periods:

 

                  (a)    for a going concern unfunded liability, the amounts required to liquidate theliability, including any liability for escalated adjustments in respect of pensionbenefits that have accrued after the date these regulations come into force, plusinterest at the going concern valuation interest rate, to be paid by equalmonthly instalments over a period of no longer than 15 years;

 

                  (b)    for a solvency deficiency, other than a solvency deficiency for a pension planexempted from special payments under subsection 19(6), the amounts requiredto liquidate the solvency deficiency, plus interest at the solvency valuationinterest rate, to be paid by equal monthly instalments over a period of no longerthan 5 years.

 

         (2)    The beginning of the amortization period for special payments to liquidate asolvency deficiency or going concern unfunded liability determined for the plan inthe report may be deferred to a date that is not later than 12 months after thevaluation date.

 

         (3)    For a specified multi-employer pension plan, the amount required under clause (1)(a)to liquidate a going concern unfunded liability disclosed in a valuation reportprepared as at a valuation date on or after January 3, 2011, must be paid by equalmonthly instalments over the shorter of the following periods:

 

                  (a)    10 years, beginning on the valuation date of the report;

 

                  (b)    the remainder of the amortization period under which the liability was initiallydetermined.

 

Interest payments required for employers who provide letter of credit

100   Unless interest payments are included in the amount of a letter of credit, an employer whoprovides a letter of credit is required to make interest payments with respect to thesolvency deficiency, calculated at the solvency valuation interest rate.

 

Alternative determination of special payments for jointly sponsored pension plan

101   For a jointly sponsored pension plan, the special payments required to liquidate a goingconcern unfunded liability under clause 99(1)(a) or a solvency deficiency under clause99(1)(b) may be determined, as of the date the going concern unfunded liability orsolvency deficiency arose, in accordance with all of the following requirements instead ofas required under clause 99(1)(a) or (b) and subsection 99(2):

 

                  (a)    each scheduled payment must be a level percentage of the sum of thepensionable earnings of the members at the valuation date projected to the datewhen the scheduled payments are to begin and, after that date, projectedannually until the end of the amortization period without taking into accountany changes in the membership of the plan that may occur after the valuationdate, such as from termination of employment or membership, retirement ordeath of members or the addition of new members;

 

                  (b)    the projected pensionable earnings in clause (a) must reflect the expecteddecline in the projected pensionable earnings if there is reason to believe thatthere will be a material decline in the number of members before the end of theamortization period for the special payments;

 

                  (c)    the sum of the projected pensionable earnings in clause (a) must be determinedbased on actuarial assumptions that are consistent with those used to projectpensionable earnings in the going concern valuation;

 

                  (d)    the amortization periods for each series of scheduled payments are the same asthe respective periods under clauses 99(1)(a) and (b), beginning no later than12 months after the valuation date;

 

                  (e)    the present value of scheduled payments must be determined,

 

                           (i)     for payments required to liquidate a going concern unfunded liability,using the interest rate or rates used in the valuation report to determinethe going concern unfunded liability, and

 

                           (ii)    for payments required to liquidate a solvency deficiency, using theinterest rates used in the valuation report to determine the solvencydeficiency.

 

Previous year credit balance

102   (1)    Except as provided in subsections (2) and (3), the previous year credit balance to beused in a valuation report or cost certificate is the amount calculated using thefollowing formula:

 

previous year credit balance = A + B - C

 

in which

 

                  A =  the previous year credit balance stated in the valuation report or cost certificatefor the plan most recently filed or submitted to the Superintendent

 

                  B =  the total amount of employer contributions made to the plan,

 

                           (i)     after the valuation date of the valuation report or cost certificate for theplan most recently filed or submitted to the Superintendent, and

 

                           (ii)    before the valuation date for the next valuation report or cost certificate

 

                  C =  the total amount of employer contributions that would be required to have beenmade under Section 86 during the period used for the calculation of B if thecontributions had been calculated without reference to any previous year creditbalance.

 

         (2)    The previous year credit balance to be used in an initial valuation report for apension plan under Section 52 is zero.

 

         (3)    The previous year credit balance for a valuation report, other than an initial valuationreport, with a valuation date that is on or after the date these regulations come intoforce may be reduced to an amount that is

 

                  (a)    less than the amount otherwise determined under subsection (1); and

 

                  (b)    not less than zero.

 

Adjustment of special payments for solvency excess

103   (1)    In this Section, “solvency excess” means the amount by which the sum of thesolvency assets and the solvency asset adjustment exceeds the sum of the solvencyliabilities, the solvency liability adjustment and the previous year credit balance.

 

         (2)    For a valuation date after the first valuation date in relation to a pension plan, anyspecial payments required to liquidate a solvency deficiency arising before thevaluation date that are scheduled for payment after the valuation date must beadjusted in accordance with this Section.

 

         (3)    If the solvency excess is greater than or equal to the present value of the specialpayments required to liquidate the solvency deficiency, the special payments must bereduced to zero.

 

         (4)    If the solvency excess is less than the present value of the special payments requiredto liquidate the solvency deficiency, the amount of the monthly scheduled paymentsfor the special payments must not be changed, but the amortization period or periodsmust be reduced so that the solvency excess is reduced to zero.

 

Special Payments—Temporary Exceptions

 

Temporary exceptions to minimum special payments—going concern unfunded liabilities

104   (1)    For the Pension Plan for Employees of Nova Scotia Power Incorporated, specialpayments for the initial unfunded liability as at August 10, 1992, must be made inaccordance with clause 99(1)(a), except that “15 years” must be read as “30 years”.

 

         (2)    If an election was made by an administrator of a specified multi-employer pensionplan under subsection 8A(3) of the former regulations, any going concern unfundedliability identified in a report filed or submitted to the Superintendent, under Section4, 12 or 13 of the former regulations, plus interest at the going concern valuationinterest rate, must be liquidated by special payments made in equal monthlyinstalments over the shorter of the following periods:

 

                  (a)    10 years, beginning on the valuation date of the report;

 

                  (b)    the remainder of the amortization period under which the liability was initiallydetermined.

 

Temporary exceptions to minimum special payments—solvency deficiencies arising underformer regulations

105   If, on the date these regulations come into force, special payments are being made underclause 6A(3)(a) of the former regulations to liquidate existing or new solvencydeficiencies identified in the first valuation report prepared with a valuation date betweenDecember 30, 2008, and January 2, 2011, the special payments may continue inaccordance with that clause instead of as required for payments that are required toliquidate a solvency deficiency under clause 99(1)(b), but the pension plan must otherwisemeet the requirements of subsection 32(1) when the plan is amended.

 

Definitions for election to extend amortization period—Sections 107 to 116

106   In this Section and Sections 107 to 116,

 

“eligible former member” means a former member whose deferred pension orpension benefit includes a defined benefit, but does not include a former member forwhom the administrator has received a notice of death;

 

“eligible member” means a member whose pension benefit includes a definedbenefit, other than a member for whom the administrator has received a notice ofdeath;

 

“eligible retired member” means a retired member whose pension or pension benefitincludes a defined benefit, but does not include a retired member for whom theadministrator has received a notice of death;

 

“eligible valuation date” means a valuation date that is on or after January 3, 2011,and no later than January 2, 2014;

 

“notice of objection form” means a form established by an administrator for arecipient of the form to object to extending an amortization period in accordancewith Sections 107 to 116;

 

“solvency relief report” means any of the following valuation reports filed for aneligible valuation date:

 

                           (i)     a valuation report, other than an initial valuation report under Section 52,that is filed on or after February 11, 2013,

 

                           (ii)    a valuation report, other than an initial valuation report under Section 52,that is filed on or after February 11, 2013, and before February 11, 2014,to replace a valuation report that was filed before February 11, 2013, inrelation to the eligible valuation date of the report being replaced.

 

One-time election to extend amortization period

107   (1)    Subject to subsection (2), an administrator of a pension plan that provides definedbenefits may elect to liquidate the plan’s solvency deficiency under this Sectioninstead of making special payments as required under clause 99(1)(b).

 

         (2)    An administrator cannot elect to make special payments under this Section unless allof the following conditions are satisfied:

 

                  (a)    a solvency relief report is filed under these regulations;

 

                  (b)    the process for making an election and objecting to an extension of the periodfor liquidating a solvency deficiency is conducted in accordance with thisSection and Sections 108 to 114;

 

                  (c)    the election is successful, in accordance with Section 113.

 

         (3)    Special payments made to liquidate a solvency deficiency under this Section mustnot be less than the sum of the following:

 

                  (a)    the amount required to fully liquidate a new solvency deficiency determined asat an eligible valuation date, plus interest at the solvency valuation interest rate,to be paid by equal monthly instalments over a period of no longer than 15years;

 

                  (b)    the amount required to fully liquidate an existing solvency deficiency that hasnot been fully liquidated as at an eligible valuation date, plus interest at thesolvency valuation interest rate, to be paid by equal monthly instalments over aperiod of no longer than 15 years.

 

         (4)    The start of the amortization period for special payments under this Section may bedeferred to a date that is no later than 12 months after the eligible valuation date.

 

Filing election to extend amortization period

108   (1)    An administrator’s election to extend an amortization period under Section 107 mustbe in writing and must be filed no later than the date that the solvency relief reportrequired by clause 107(2)(a) is filed.

 

         (2)    An administrator may elect to extend and amortization period under Section 107only once and an election cannot be rescinded.

 

Information statements and notices of objection to be provided for proposed election

109   (1)    An administrator who proposes to make an election to extend an amortization periodunder Section 107 must send all of the following persons information statements andnotice of objection forms, as follows:

 

                  (a)    the administrator must send an information statement and a notice of objectionform to

 

                           (i)     a person who meets all of the following criteria:

 

                                    (A)   they were an eligible member on the valuation date of the solvencyrelief report,

 

                                    (B)   they are an eligible member, eligible former member or eligibleretired member on the date the information statement and notice ofobjection form are sent,

 

                                    (C)   they were not represented by a collective bargaining agent on thevaluation date of the solvency relief report;

 

                           (ii)    a person who meets all of the following criteria:

 

                                    (A)   they were an eligible former member or eligible retired member onthe valuation date of the solvency relief report,

 

                                    (B)   they are an eligible former member or eligible retired member onthe date the information statement and notice of objection form aresent,

 

                           (iii)   each collective bargaining agent that represented eligible members on thevaluation date of the solvency relief report;

 

                  (b)    the administrator must send an information statement only to a person whomeets all of the following criteria:

 

                           (i)     the criteria in paragraphs (a)(i)(A) and (B),

 

                           (ii)    they were represented by a collective bargaining agent on the valuationdate of the solvency relief report;

 

                  (c)    the administrator must provide the Superintendent with a copy of theinformation statement and the notice of objection form at the same time thatthe administrator sends the statements and forms in accordance with clauses (a)and (b) and must advise the Superintendent of the date that last notice ofobjection form was sent.

 

         (2)    An information statement sent under subsection (1) to a person who is an eligiblemember, eligible for mer member or eligible retired member must be sent to themost recent address for the person in the administrator’s records for the pension plan,and must contain all of the following information:

 

                  (a)    the name of the recipient and their status as an eligible member, eligible formermember or eligible retired member on the valuation date of the solvency reliefreport;

 

                  (b)    the name of the plan and its Provincial registration number;

 

                  (c)    the administrator’s name and contact information;

 

                  (d)    the valuation date of the solvency relief report;

 

                  (e)    that the administrator is seeking the consent of eligible members, eligibleformer members and eligible retired members to extend the amortizationperiod for liquidating the plan’s solvency deficiency from 5 years to a period ofno longer than 15 years beginning on a date that is no later than 12 monthsafter the valuation date;

 

                  (f)    the date that is proposed for the amortization period to begin and the date thatis proposed for the amortization period to end;

 

                  (g)    that the extension will proceed if, according to the notices of objection receivedby the administrator, no more than 1/3 of the persons who were eligiblemembers, eligible former members or eligible retired members on thevaluation date of the solvency relief report and the date that the informationstatement was sent objected to the extension;

 

                  (h)    the amount of the solvency deficiency for which the amortization period wouldbe extended;

 

                  (i)     the transfer ratio of the plan as of the valuation date;

 

                  (j)     the estimated annual contributions that would be required to fund the normalcost of the plan and all special payments

 

                           (i)     if the 5-year amortization period is not extended, and

 

                           (ii)    if the amortization period is extended;

 

                  (k)    an explanation of how the security of the pension benefits and ancillarybenefits for eligible members, eligible former members and eligible retiredmembers might be affected as a result of the election;

 

                  (l)     for a recipient who is an eligible member, whether they were represented by acollective bargaining agent on the valuation date of the solvency relief report;

 

                  (m)   for a recipient who was an eligible member represented by a collectivebargaining agent on the valuation date of the solvency relief report, a statementthat the collective bargaining agent will consent or object to the extension onbehalf of the recipient;

 

                  (n)    for a recipient who, on the valuation date of the solvency relief report, was aneligible member not represented by a collective bargaining agent, an eligibleformer member or an eligible retired member, a statement that the person mayobject to the extension by completing and submitting the provided notice ofobjection form.

 

         (3)    An information statement sent under subsection (1) to a collective bargaining agentmust contain all of the following information:

 

                  (a)    the information required for an information statement to members in clauses(2)(b) to (j);

 

                  (b)    a statement that the collective bargaining agent may object to the extension ofthe amortization period on behalf of all persons who meet all of the followingcriteria, by submitting the provided notice of objection form:

 

                           (i)     they were eligible members on the valuation date of the solvency reliefreport,

 

                           (ii)    they were represented by the collective bargaining agent on the valuationdate of the solvency relief report,

 

                           (iii)   they were eligible members, eligible former members or eligible retiredmembers on the date the information statement was sent;

 

                  (c)    the number of persons who meet all of the criteria in clause (b).

 

         (4)    A notice of objection form sent under subsection (1) must include all of thefollowing information:

 

                  (a)    the name of the pension plan and its Provincial registration number;

 

                  (b)    the name of the administrator;

 

                  (c)    the address where the notice of objection form must be sent;

 

                  (d)    for a notice of objection to be used by a collective bargaining agent, thenumber of persons on behalf of whom the agent is consenting or objecting whomeet the criteria in clause (3)(b);

 

                  (e)    a statement objecting to the extension of the amortization period for liquidatingthe plan’s solvency deficiency from 5 years to a period of no longer than 15years beginning on a date that is no later than 12 months after the valuationdate;

 

                  (f)    the last date that the administrator will accept notices of objection, inaccordance with subsection (5).

 

Last date for accepting notices of objection

110   The administrator must set a date that is no earlier than 45 days after the date they send thelast information statement as the last date that notices of objection will be accepted.

 

Administrator to keep notices of objection

111   An administrator must keep all notices of objection they receive until at least the date thatthe solvency deficiency is liquidated, and must provide copies of the notices to theSuperintendent on request.

 

Prohibition against identifying persons who submit notices of objection

112   A notice of objection and the process for objecting to an extension of the period forliquidating a solvency deficiency under this Section must not enable an administrator toidentify any person who submits a notice of objection.

 

Successful election to extend amortization period

113   An administrator’s election to extend the amortization period under Section 107 issuccessful if the administrator receives notices of objection that represent objections fromnot more than 1/3 of the total number of persons who meet all of the following criteria:

 

                  (a)    they were eligible members on the valuation date of the solvency relief report;

 

                  (b)    they were eligible members, eligible former members or eligible retiredmembers on the date the information statement was sent.

 

Certificate of consent to election

114   (1)    An administrator whose election is successful in accordance with Section 113 mustfile a certificate of consent containing the information in subsection (2) no later than60 days after the date the solvency relief report for the pension plan is filed.

 

         (2)    A certificate of consent must contain all of the following information:

 

                  (a)    the total number of persons who meet the criteria set out in clauses 113(a) and(b);

 

                  (b)    the number of persons described in clause (a) who

 

                           (i)     submitted notices of objection to the extension, or

 

                           (ii)    were represented by a collective bargaining agent that submitted a noticeof objection to the extension on their behalf;

 

                  (c)    confirmation that the number of notices of objection received by theadministrator represents objections from no more than 1/3 of the total numberof persons described in clause (a).

 

Notice of extension of amortization period to members

115   (1)    No later than the final date for filing the certificate of consent under subsection114(1) for a successful election, an administrator must send a notice of the extensionof the amortization period containing all of the information required by subsection(2) to all of the following:

 

                  (a)    each person who is an eligible member, eligible former member or eligibleretired member on the date the notice of extension is sent;

 

                  (b)    each collective bargaining agent that represents eligible members on the datethe notice of extension is sent.

 

         (2)    A notice of extension required by subsection (1) must contain all of the followinginformation:

 

                  (a)    the name of the pension plan and its and Provincial registration number;

 

                  (b)    the administrator’s name and contact information;

 

                  (c)    the valuation date of the solvency relief report in which the solvency deficiencywas determined;

 

                  (d)    the length of the extended amortization period elected for liquidating thesolvency deficiency;

 

                  (e)    the transfer ratio of the pension plan as of the valuation date of the solvencyrelief report;

 

                  (f)    an explanation of how the security of the pension benefits and ancillarybenefits for eligible members, eligible former members and eligible retiredmembers might be affected as a result of the election;

 

                  (g)    the estimated annual contributions that would have been required to fund thenormal cost of the pension plan and all special payments if no extension of theamortization period had been made;

 

                  (h)    for members represented by a collective bargaining agent on the valuation dateof the solvency relief report, confirmation that the collective bargaining agentobjected or chose not to object on their behalf;

 

                  (i)     confirmation that the number of notices of objection to the extension receivedby the administrator represents objections to the extension from 1/3 or less ofthe total eligible members, eligible former members and eligible retiredmembers who were sent information statements under subsection 109(1).

 

Progress report on special payments under extended amortization period

116   (1)    After a successful election in accordance with Section 113, an administrator mustsend progress reports concerning the liquidation of the solvency deficiency in eachfiscal year of the pension plan beginning with the year in which the first specialpayment is made in accordance with subsection 107(4) and continuing until thesolvency deficiency has been liquidated.

 

         (2)    A progress report required by subsection (1) must be sent no later than 6 monthsafter the end of the fiscal year of the pension plan to all of the following:

 

                  (a)    each person who is an eligible member, eligible former member or eligibleretired member on the day the progress report is sent;

 

                  (b)    each collective bargaining agent that represents eligible members on the daythe progress report is sent.

 

         (3)    A progress report required by subsection (1) must contain all of the followinginformation:

 

                  (a)    all of the information required for a notice of extension in clauses 115(2)(a) to(f);

 

                  (b)    the valuation date of the valuation report most recently filed or submitted to theSuperintendent;

 

                  (c)    the transfer ratio of the pension plan as of the valuation date of the mostrecently filed or submitted valuation report in which the transfer ratio wasdetermined;

 

                  (d)    the estimated annual contributions required to fund the normal cost of thepension plan and all special payments set out in the report referred to in clause(c).

 

         (4)    A progress report under this Section may be included in the annual statement tomembers for the same fiscal year of the pension plan.

 

Letters of Credit

 

Prescribed requirements for letters of credit

117   The requirements prescribed for a letter of credit under subsection 77(2) of the Act are asset out in Sections 118 to 124 and Schedule 2: Letters of Credit.

 

Prescribed employers

118   All employers who are required to make contributions to a defined benefit plan that is nota multi-employer pension plan are prescribed as employers which may provide a letter ofcredit to a prescribed entity in the circumstances described in subsection 77(1) of the Act.

 

Prescribed person or entity provided letter of credit

119   The trustee of a pension fund that is administered under a trust described in clause 46(1)(c)is prescribed as a person or entity to whom a letter of credit may be provided undersubsection 77(1) of the Act by a prescribed employer.

 

Determining solvency liabilities for subsection 77(3) of Act

120   For the purpose of determining the amount that constitutes 15% of the solvency liabilitiesof a pension plan in subsection 77(3) of the Act, the solvency liabilities of the plan must bedetermined as of the valuation date of the valuation report most recently filed or submittedto the Superintendent.

 

Deadlines for providing letters of credit

121   (1)    If a letter of credit relates to special payments described in clause 99(1)(b), theprescribed periods for providing the letter of credit under subsection 77(5) of the Actare as follows:

 

                  (a)    at least 15 days before the date that the first scheduled payment of the specialpayments the letter relates to is due;

 

                  (b)    for a letter of credit that is amended, at least 15 days before the date that anyamendment takes effect;

 

                  (c)    subject to subsection (2), for a letter of credit that is being renewed, at least 15days before the date that the letter of credit would have expired;

 

                  (d)    for a letter of credit that is replacing a previous letter of credit, at least 15 daysbefore the date that the previous letter of credit expires.

 

         (2)    If a letter of credit is being renewed, the employer may provide notice of the renewalto the trustee, and a copy of the notice to the issuer, at least 15 days before the datethat the letter would have expired instead of providing the letter of credit inaccordance with clause (1)(c).

 

         (3)    The notice to the Superintendent required by subsection 77(6) of the Act must beprovided no later than 5 days after the administrator receives a copy of a letter ofcredit and must include all of the following:

 

                  (a)    a certified copy of the letter of credit;

 

                  (b)    a certificate indicating whether the letter of credit satisfies the requirements ofthe Act, these regulations and the federal Income Tax Act.

 

When trustee must demand payment of amount of letter of credit

122   (1)    All of the following are prescribed as the circumstances under which a trustee whoholds a letter of credit in trust for a pension plan must demand payment of theamount of the letter of credit into the pension fund as required by subsection 77(8) ofthe Act:

 

                  (a)    the letter of credit does not satisfy the requirements of the Act, theseregulations or the federal Income Tax Act;

 

                  (b)    the administrator gives written notice to the trustee under subsection 92(4) ofthe Act that the employer intends to wind-up the plan;

 

                  (c)    the Superintendent issues an order under subsection 93(1) of the Act requiringthe wind-up of the plan;

 

                  (d)    the employer is subject to bankruptcy proceedings under the Bankruptcy andInsolvency Act (Canada);

 

                  (e)    an application or petition has been filed under the Winding-up andRestructuring Act (Canada) by the employer or against the employer;

 

                  (f)    the trustee is required to demand payment under the terms of an agreementunder Section 9 of the Act between the Crown and a designated jurisdictionwhose pension benefits legislation applies to the plan;

 

                  (g)    the trustee is otherwise required to demand payment of the amount of the lettercredit under the terms of the trust agreement related to the letter of credit.

 

         (2)    If an issuer of a letter of credit does not pay the amount of the letter of credit into apension fund upon receiving the trustee’s demand, the employer must

 

                  (a)    immediately pay an amount corresponding to the amount of the letter of creditinto the pension fund; and

 

                  (b)    give the Superintendent written notice that the issuer has not paid the amountof the letter of credit.

 

Notification by trustee if payment demanded under letter of credit

123   If a trustee demands payment of the amount of a letter of credit, the trustee must promptlynotify all of the following:

 

                  (a)    the administrator;

 

                  (b)    the employer;

 

                  (c)    the Superintendent.

 

Notification by trustee if issuer of letter of credit fails to pay on demand

124   If the issuer of a letter of credit does not pay the amount of the letter of credit after thetrustee demands payment, the trustee must promptly notify all of the following:

 

                  (a)    the administrator;

 

                  (b)    the employer;

 

                  (c)    the Superintendent.

 

Part 4: Membership, Benefits and Interest

 

Pension Plan Membership

 

Prescribed classes of employees

125   (1)    The following are the prescribed classes of employees for the purposes of Section 45of the Act:

 

                  (a)    employees who are paid a salary;

 

(b)employees who are paid on an hourly basis;

 

                  (c)    employees who are members of a trade union;

 

                  (d)    employees who are not members of a trade union;

 

                  (e)    supervisory employees;

 

                  (f)    management employees;

 

                  (g)    except as provided in subsection (3),

 

                           (i)     executive employees,

 

                           (ii)    employees who are officers of the employer,

 

                           (iii)   employees who are significant shareholders of the employer;

 

                  (h)    persons who fall within clause (c) or (d) and also any of clauses (a) or (b) or (e)to (g);

 

                  (i)     employees who belong to an identifiable group of employees that theSuperintendent considers acceptable.

 

         (2)    Different employers in a multi-employer pension plan may have different prescribedclasses of employees covered by the plan for the purposes of Section 45 of the Act.

 

         (3)    A pension plan in which the only member is an individual employee who fallswithin a class described in clause (1)(g) is exempt from Section 45 of the Act, andthe employee must be treated for the purposes of the Act and these regulations as notfalling within that class.

 

Variations and Reductions for CPP, QPP and OAS

 

Variation of pension benefits for CPP or QPP entitlements

126   (1)    Except as provided in subsection (2), if a pension plan provides that a pensionbenefit may be varied as the result of the recipient’s entitlement to a retirementpension under the CPP or QPP without specifying the age at which the variation is tooccur, the plan is deemed to provide that the variation occurs when the memberturns 65 years old.

 

         (2)    Subsection (1) does not apply to a pension plan that is amended on or after January1, 1988, to establish a specific age or to provide for the occurrence of a specificevent for variation of the pension benefit before the recipient turns 65 years old.

 

         (3)    A pension plan that provides that a pension benefit may be varied as the result of therecipient’s entitlement to a retirement pension under the CPP or QPP before turning65 years old must take into account the adjustment made to the retirement pensionunder the CPP or the QPP.

 

Calculating reduction when integrating retirement benefits with CPP, QPP and OAS

127   The following formulas are prescribed for calculating the maximum amount by which apension or deferred pension may be reduced under Section 73 of the Act in relation tobenefits under the CPP, QPP or OAS:

 

                  (a)    for a pension plan that reduces a deferred pension or pension to take intoaccount the benefits payable from CPP or QPP, the maximum amount iscalculated by the following formula:

 

maximum reduction = P × (Y ÷ 35)

 

in which

 

                           P =   the amount of pension that would be payable to the person under theCPP or QPP, if the person had participated fully in the CPP or QPP,calculated

 

                                    (i)     as of the date the person’s employment or plan membership isterminated, and

 

                                    (ii)    as if the person had turned 65 years old on the date of termination

 

                           Y =   the number of years, including parts of a year, of employment credited tothe person under the plan, to a maximum of 35;

 

                  (b)    for a pension plan that reduces a pension or deferred pension based on aperson’s entitlement under the OAS in respect of a benefit accrued beforeJanuary 1, 1988, the maximum amount is calculated by the following formula:

 

maximum reduction = P × (Y ÷ 35)

 

in which

 

                           P =   the amount of pension payable under the OAS, calculated as of the dateof the person’s employment or plan membership is terminated

 

                           Y =   the number of years, including parts of a year, of employment credited tothe person under the plan before January 1, 1988, to a maximum of 35years.

 

Reduction of bridging benefits

128   (1)    For the purposes of subsection 73(6) of the Act, a member’s, former member’s orretired member’s bridging benefit must not be reduced because the member, formermember or retired member is eligible or entitled to receive actuarially reducedpayments under the CPP, QPP or OAS before they turn 65 years old.

 

         (2)    Except as provided in subsection (3), if a pension plan provides for a bridgingbenefit without specifying the age at which the benefit is reduced or ceases, the planis deemed to provide that the benefit is reduced or ceases when the member turns 65years old.

 

         (3)    Subsection (2) does not apply to a pension plan that is amended on or after January1, 1988, to specify that the bridging benefit is reduced or ceases in any of thefollowing circumstances:

 

                  (a)    on the date the member, former member or retired member reaches a specifiedage that is younger than 65 years old.

 

                  (b)    on the date that a specified event occurs.

 

Application for withdrawal from pension plan in circumstances of shortened lifeexpectancy

129   (1)    The circumstances of shortened life expectancy prescribed for the purposes ofsubsection 69(2) of the Act are that the former member has an illness or physicaldisability that is likely to shorten their life expectancy to less than 2 years.

 

         (2)    All of the following are prescribed as the conditions to be satisfied for a pension planto be deemed to permit variation in the terms of payment of a deferred pension undersubsection 69(2) of the Act:

 

                  (a)    an application must be made to the administrator for withdrawing thecommuted value of the former member’s deferred pension from the plan;

 

                  (b)    the application must be signed by the former member and accompanied by allof the following documents:

 

                           (i)     a statement signed by a physician that, in the physician’s opinion, theformer member has an illness or physical disability that is likely toshorten their life expectancy to less than 2 years,

 

                           (ii)    a declaration about a spouse in accordance with Section 214, with thefollowing changes in detail:

 

                                    (A)   “owner” must be replaced with “former member”,

 

                                    (B)   “LIRA or LIF” must be replaced with “deferred pension”,

 

                                    (C)   “financial institution” must be replaced with “administrator”.

 

         (2)    When the administrator receives a document required by this Section, theadministrator must give the former member a receipt for the document stating thedate that it was received.

 

Deferred pension under pension plan insured by individual level-premium contractsissued before qualification date

130   Despite Section 52 or 53 of the Act, a deferred pension that is provided under a pensionplan insured by individual level premium contracts may, for an individual level premiumcontract issued before the qualification date, be equal to the paid up annuity under thecontract arising from contributions made with respect to employment on or after thequalification date if any special payments required with respect to the deferred pensioninsured by the contract have all been paid or will continue to be paid.

 

Portion of benefits attributable to employment after January 1, 1988—final average orbest average earnings plans

131   For a pension plan that provides a pension benefit based on a member’s rate ofremuneration on the date the member terminates employment, or based on an average ofthe member’s rates of remuneration over a specified or limited time period up to the datethe member terminates employment, the portion of the member’s pension benefitattributable to employment after January 1, 1988, for the purposes of Section 55 of theAct, must be calculated in accordance with the following formula:

 

portion attributable = A - B

 

in which

 

         A =   the pension benefit

 

         B =   the pension benefit calculated in accordance with the terms of the plan at December31, 1987, using the member’s rate of remuneration as of the date of termination ofemployment or the average of the member’s rates of remuneration over the specifiedor limited time period, as the case may be.

 

Death Benefit Entitlements

 

Exercising entitlement to pre-retirement death benefit under subsection 67(1) or (2) of Act

132   (1)    To exercise their entitlement under 67(1) or (2) of the Act, a spouse must deliver adirection to the administrator no later than 90 days after the date they receive thedeath benefits statement referred to in Section 78.

 

         (2)    An administrator must comply with an election delivered under subsection (1) nolater than 60 days after the date it is received.

 

Exemption from reduction in pre-retirement death benefit entitlement

133   Subsection 67(15) of the Act permitting reductions in pre-retirement death benefitentitlements does not apply to pension plans that provide defined contribution benefits.

 

Offset in relation to pre-retirement death benefits

134   (1)    The amount of a group life insurance policy payment payable on the death of amember, former member or retired member, that is attributable to the amount paidby employer premiums under the policy is prescribed as an additional benefit, theamount of which may be used under subsection 67(15) of the Act to reduce a pre-retirement death benefit under that Section.

 

         (2)    A reduction made in relation to a group life insurance policy payment undersubsection (1) must not be made unless the group life insurance policy provides forpayment of the insurance payment to the spouse of a member, former member orretired member, if there is a spouse at the date of death, and the spouse has notwaived the insurance payment.

 

         (3)    For the purposes of subsection 67(15) of the Act, the limit that a reduction made inrelation to a group life insurance policy payment under subsection (1) must notexceed is

 

                  (a)    the amount of the group life insurance payment multiplied by the ratio,averaged over a period of 5 years or less, of the employer-paid cost of thegroup life insurance policy to the total cost of the policy for the relevant classof employees, taking into account in both the numerator and the denominatorthe ratio of any experience or other refunds;

 

                  (b)    for a pension plan that provides contributory benefits, an amount that reducesthe pre-retirement death benefit entitlement under Section 67 of the Act to lessthan the aggregate of the member’s required employee contributions plusinterest under that Section.

 

         (4)    When calculating a reduction made in relation to a group life insurance policypayment under subsection (1), the actuarial present value of the reduction must notexceed the amount of the payment under the group life insurance policy.

 

Commuted Value and Limits on Transfers

 

Commuted value of pension benefits and ancillary benefits for transfer

135   (1)    Except as provided in subsection (3), the commuted value of a former member’sdeferred pension for transfer under subsection 61(1) of the Act must not be less thanthe value determined in accordance with Section 3500 of the Canadian Institute ofActuaries Standards of Practice.

 

         (2)    If the commuted value of a deferred pension is calculated on a basis that produces acommuted value higher than the minimum value calculated on the basis prescribedunder subsection (1), an administrator must not make any transfer calculated on thehigher basis until the administrator files a statement describing in detail the basis forcalculating the commuted value.

 

         (3)    Subsection (1) does not apply to a pension plan that is being wound up.

 

         (4)    Other than for the purposes of subsection 61(1) of the Act or Section 177, thecommuted value of a pension, deferred pension or ancillary benefit must becalculated using methods and actuarial assumptions that are consistent with acceptedactuarial practice.

 

Calculating portion of commuted value available for transfer

136   The portion of the commuted value of a deferred pension that may be transferred from apension plan as of a given date must be calculated by multiplying the commuted valuedetermined in accordance with subsection 135(1) or (2) by the lesser of the following:

 

                  (a)    the most recently determined transfer ratio for the pension plan;

 

                  (b)    one.

 

Limits on transferring commuted value of pension benefits

137   (1)    Except as otherwise provided in this Section or Section 139, and subject tosubsection 61(11) of the Act, an administrator may transfer the commuted value of apension, deferred pension or ancillary benefit in accordance with the followingSections only if the transfer ratio of the pension plan is equal to or greater than 1:

 

                  (a)    Section 61 of the Act respecting the transfer of a former member’s deferredpension;

 

                  (b)    Section 62 of the Act respecting the purchase of a pension, deferred pension orancillary benefit from an insurance company;

 

                  (c)    Section 67 of the Act respecting the payment of a pre-retirement death benefit;

 

                  (d)    Section 74 of the Act respecting the division of a pension entitlement betweenspouses.

 

         (2)    Without the approval of the Superintendent under subsection 61(11) of the Act,which must be made prior to the transfer, a transfer of the commuted value of apension benefit may not be made under Section 61 of the Act under any of thefollowing circumstances:

 

                  (a)    the transfer ratio of a pension plan is equal to or greater than 1 and theadministrator knows or ought to know that events have taken place since thevaluation date of the most recently filed or submitted valuation report for theplan that may result in the transfer ratio being reduced to a value less than 0.9;

 

                  (b)    the transfer ratio of a pension plan is less than 1 and the administrator knows orought to know that events have taken place since the valuation date of the mostrecently filed or submitted valuation report for the plan that may result in thetransfer ratio being reduced by 10% or more of the most recently determinedtransfer ratio.

 

         (3)    Despite clause (2)(b), if the transfer ratio of a pension plan is less than 1, anadministrator may transfer 100% of the commuted value of a pension, deferredpension or an ancillary benefit under the Act without the approval of theSuperintendent if any of the following conditions are met:

 

                  (a)    the administrator is satisfied that an amount equal to the transfer deficiency hasbeen remitted to the pension fund;

 

                  (b)    the aggregate of transfer deficiencies for all transfers made since the last reviewdate does not exceed 5% of the assets of the plan at the time.

 

Balance of transfer if less than 100% of commuted value transferred

138   (1)    If less than 100% of the commuted value of a pension, deferred pension or ancillarybenefit is transferred out of a pension plan, the balance must be transferred by theadministrator no later than 5 years after the date of the initial transfer.

 

         (2)    Interest accumulates on any balance to be transferred under subsection (1) at thesame rate used to calculate the commuted value of the pension, deferred pension orancillary benefit.

 

         (3)    Any transfer made under subsection (1) after the initial transfer must be made only ifthe conditions in clauses 137(3)(a) or (b) are met.

 

Exemptions to limits on transfers

139   Sections 136 to 138 do not apply to any transfers of the following:

 

                  (a)    amounts transferred under a reciprocal transfer agreement that is filed;

 

                  (b)    the commuted value of a joint and survivor pension payable under subsection63(7) of the Act;

 

                  (c)    the commuted value of a pension benefit payable under subsection 70(1) of theAct.

 

Benefits that result from voluntary contributions for past service

140   For the purposes of benefits excluded from the determination of the commuted value of adeferred pension or pension in respect of contributory benefits accrued after January 1,1988, under Section 55 of the Act, “benefits that result from voluntary contributions forpast service” in clause 55(8)(d) of the Act means benefits credited to a member as a resultof the member’s election to make voluntary contributions in order to purchase pensionbenefits relating to a period of employment before the date that the member made theelection.

 

Reciprocal transfer agreement—50% rule

141   The 50% limitation on the commuted value of a pension or deferred pension in subsection55(3) of the Act does not apply to contributions for the purpose of calculating thecommuted value for a transfer of money or credits from one pension plan to another planin accordance with a reciprocal transfer agreement.

 

Entitlement to excess amount of commuted value of converted benefits

142   If an amendment to a pension plan with defined benefits converts them to definedcontribution benefits, a member who elects to convert their defined benefits in accordancewith the amendment is entitled to require the administrator to pay to the member thatportion of the amount of the commuted value of the defined benefits that exceeds theamount prescribed in the federal Income Tax Regulations for converting defined benefitsto defined contribution benefits.

 

Additional prescribed ancillary benefits

143   Any amounts paid to a retired member’s surviving spouse in excess of the amountrequired to be paid to the surviving spouse under subsection 63(3) of the Act areprescribed as ancillary benefits for purposes of Section 58 of the Act.

 

Bridging benefits not taken into account

144   A bridging benefit is not required to be taken into account when calculating any of thefollowing:

 

                  (a)    the amount of a joint and survivor pension under subsection 63(3) of the Act;

 

                  (b)    the commuted value of a deferred pension or pension in relation to a pre-retirement death benefit under Section 67 of the Act.

 

Phased Retirement Option

 

Definition of phased retirement option

145   In Sections 146 and 147,

 

“phased retirement option” means a phased retirement option under Section 51 of theAct for a pension plan that provides defined benefits.

 

Application for phased retirement option

146   (1)    The prescribed time period for an administrator to provide information about anyphased retirement option as required by subsection 51(12) of the Act is no later than30 days after the date the information is requested.

 

         (2)    In addition to the requirements in Section 51 of the Act, an application by a memberto participate in a phased retirement option must be made in writing, signed anddated by the applicant, and delivered to the administrator, and must include all of thefollowing:

 

                  (a)    the information in clauses 74(2)(a), (b) and (c), and clause 51(2)(e) of the Act;

 

                  (b)    confirmation that the written agreement entered into between the member andtheir employer under clause 51(2)(c) of the Act governing the employmentarrangements relating to the phased retirement option for the member andgoverning payments under the phased retirement option satisfies therequirements of these regulations and of subsection 8503(19) of the federalIncome Tax Regulations; and

 

                  (c)    a copy of the written agreement entered into between the member and theiremployer under clause 51(2)(c) of the Act.

 

         (3)    The prescribed time period for an administrator to approve an application undersubsection 51(3) of the Act that satisfies the requirements of the Act and theseregulations is no later than 60 days after the date they receive the application.

 

Participation in phased retirement option

147   (1)    The circumstances to which subsection 8503(19) of the federal Income TaxRegulations applies are prescribed as the manner in which a member continues toaccrue benefits during participation in a phased retirement option for purposes ofsubsection 51(5) of the Act.

 

         (2)    When payments under a phased retirement option begin, a member’s regular hoursof work may not be reduced by more than the number of hours determined inaccordance with the following formula:

 

maximum reduction = A - B

 

in which

 

                  A =  the number of regular hours or work the member was working immediatelybefore entering into a written agreement referred to in clause 51(2)(c) of theAct

 

                  B =  the number of hours of work represented by the maximum amounts payable tothe member as phased retirement benefits under the federal Income TaxRegulations.

 

         (3)    If a member’s participation in a phased retirement option is deemed to have endedunder subsection 51(10) of the Act because the member dies, the member is deemedto have retired immediately before the date of death for purposes of a joint andsurvivor pension under Section 63 of the Act, and that Section applies whendetermining any pension entitlement of a surviving spouse or other beneficiary.

 

Variable Pension Benefits

 

Definitions for Sections 149 to 151

148   In this Section and Sections 149 to 151,

 

“defined contribution account” of a member or former member means the portion oftheir pension benefit that is attributable to a pension plan’s defined contributionprovisions and that has not been transferred or credited to their variable benefitsaccount;

 

“specified beneficiary” means an individual who is a specified beneficiary undersubsection 8506(8) of the federal Income Tax Regulations in relation to a member orformer member under their pension plan’s defined contribution provisions;

 

“variable benefits account” of a member or a former member means an accountestablished under a pension plan’s defined contribution provisions to be used forproviding variable benefits to the member or former member for whom it isestablished, or to their beneficiary;

 

“variable benefits participant” for a variable benefits account, means

 

                           (i)     the member or former member for whom the account is established, or

 

                           (ii)    after the member’s or former member’s death, any specified beneficiaryin whose name the pension plan permits the variable benefits account tocontinue;

 

“variable pension benefits” means pension benefits that are provided for by apension plan with defined contribution provisions that provide for the payment ofvariable benefits referred to in clause 8506(1)(e.1) of the federal Income TaxRegulations.

 

Pension plan provisions for variable pension benefits

149   (1)    A pension plan that provides for variable pension benefits, in accordance withSection 56 of the Act, must include all of the following provisions:

 

                  (a)    all or any part of a member’s defined contribution account may be transferredto their variable benefits account, in accordance with Sections 150 and 151 andthe provisions of the plan;

 

                  (b)    only a member or former member who has reached the early retirement ageunder the plan’s defined contribution provisions may elect to transfer theirdefined contribution account to a variable benefits account;

 

                  (c)    if a member or former member has a spouse, none of the member’s or formermember’s defined contribution account may be transferred to their variablebenefits account unless their spouse has consented to the transfer in accordancewith subsection 150(2);

 

                  (d)    a variable benefits participant is deemed not to have started receiving a pensionwith respect to any amount in the defined contribution account that is nottransferred to the variable benefits account;

 

                  (e)    in accordance with Section 87 of the Act, the balance in a member’s or formermember’s variable benefits account must be administered as locked-in moneyunder the Act before and after the money is transferred and until it is paid outin accordance with the Act and these regulations;

 

                  (f)    the variable pension benefits payable to a member or former member for acalendar year must not be

 

                           (i)     less than the minimum amount determined for the year under subsection8506(5) of the federal Income Tax Regulations,

 

                           (ii)    more than the maximum amount determined for the year under the plan’sprovisions for determining the maximum amount in accordance withSection 151;

 

                  (g)    no later than 60 days after the date the variable benefits participant receives theannual statement required by Section 75, the participant may notify theadministrator in writing of the amounts to be paid as variable pension benefits,and the frequency and method of payment to be made

 

                           (i)     during the current year, or

 

                           (ii)    if the rate of return for the participant’s variable benefits account isguaranteed by the plan for longer than 1 year, during any period withinthe period that it is guaranteed for;

 

                  (h)    subject to the minimum and maximum referred to in clause (f), the variablebenefits participant may notify the administrator in writing at any time of anincrease or decrease in the amounts to be paid as variable pension benefits inthe year;

 

                  (i)     the amounts to be paid and the frequency and method of payment will be as setout in the latest annual statement provided to the variable benefits participantunder Section 75 if the administrator is not notified of the amounts andfrequency as permitted by clause (g);

 

                  (j)     subject to subsection (2), after the death of the member or former member, thebalance of the variable benefits account must be paid to any person to whompre-retirement death benefits are to be paid under Section 67 of the Act, and inthe manner in which the pre-retirement death benefits are to be paid under thatSection;

 

                  (k)    the spouse of the variable benefits participant may waive the spouse’sentitlement under clause (j) to the balance of the variable benefits account, inaccordance with Section 68 of the Act;

 

                  (l)     a transfer from a variable benefits account may be made at any time;

 

                  (m)   a variable benefits participant may only transfer all or any part of the balance oftheir variable benefits account in accordance with the requirements fortransferring the commuted value of a deferred pension under Section 61 of theAct and subject to the federal Income Tax Act;

 

                  (n)    a variable benefits participant who transfers any or all of the balance of thevariable benefits account is entitled to the same rights under Section 61 of theAct as a former member who has terminated employment and, for thatpurpose, subsection 61(4) of the Act does not apply to the transfer.

 

         (2)    A pension plan may provide for a deceased member’s or former member’s variablebenefits pension to continue to be paid after their death to their surviving spouse, ifthe spouse meets all of the following:

 

                  (a)    the spouse is a specified beneficiary of the deceased member or formermember;

 

                  (b)    the spouse elects to continue receiving the variable pension benefits instead ofrequiring the benefits to be paid or transferred as provided for in the plan.

 

Additional transfers to, and transfer from, variable benefits account

150   (1)    Subject to subsection (2), a pension plan that provides for variable pension benefitsmay provide that a member or former member may transfer any of the followingamounts or assets to their variable benefits account, to the extent permitted by orunder the federal Income Tax Act:

 

                  (a)    any amount transferred as a former member under clause 61(1)(a) of the Act;

 

                  (b)    any amount transferred because of a division between spouses of any pensionentitlement under Section 74 of the Act;

 

                  (c)    the assets in a LIRA;

 

                  (d)    the assets in a LIF.

 

         (2)    A member or former member must have the written consent of their spouse, in anapproved form, to make a transfer under subsection (1), unless 1 of the followingapplies:

 

                  (a)    the spouse is living separate and apart from the member or former member onthe date of the transfer with no reasonable prospect of resuming cohabitation;

 

                  (b)    the money to be transferred into the variable benefits account is not derived,directly or indirectly, from a pension benefit provided in respect of anyemployment of the member or former member.

 

         (3)    An administrator must not transfer all or any part of the balance of a variable benefitsaccount unless the transfer is made in accordance with the requirements fortransferring the commuted value of a deferred pension under Section 61 of the Act.

 

Maximum amount of variable pension benefits payable

151   (1)    A pension plan’s provisions for determining the maximum amount of variablepension benefits payable in a calendar year must provide that the maximum amountpayable is the greatest of the amount determined by the following formula:

 

maximum payable = F × (B + T)

 

in which

 

                  F =   the factor from the table in Schedule 5: Life Income Fund—Factor F for thereference rate for the calendar year and the variable benefits participant’s age atthe end of the immediately previous year

 

                  B =  the balance of the variable benefits account at the beginning of the calendaryear

 

                  T =   the total of

 

                           (i)     all of the amounts transferred to the variable benefits account in thecalendar year, other than amounts transferred directly or indirectly from aLIF or another variable benefits account, and

 

                           (ii)    the minimum amount determined for the year under subsection 8506(5)of the federal Income Tax Regulations.

 

         (2)    If the initial year of the variable benefits account is less than 12 months long, themaximum amount determined under subsection (1) must be adjusted in proportion tothe number of months in the initial year divided by 12, with any part of anincomplete month counting as 1 month.

 

Optional Benefits

 

Optional benefits prescribed

152   Enhanced benefits under a defined benefit provision in a pension plan that meet all of thefollowing criteria are prescribed for the purpose of Section 59 of the Act as optionalbenefits:

 

                  (a)    they are elected by a member, former member or retired member, or the spouseof the member, former member or retired member;

 

                  (b)    they are funded either fully or partially through optional contributions providedby the member.

 

Interest

 

Definitions for crediting interest on contributions—Sections 154 to 158

153   (1)    In Sections 154 to 158,

 

“bank deposit rate” means, as of a particular date, the rate calculated

 

                           (i)     on the basis of the average of the yields of 5-year personal fixed-termchartered bank deposit rates, as determined from the Canadian Socio-Economic Information Management System (CANSIM) series V122515compiled by Statistics Canada, and available on the website maintainedby the Bank of Canada, and

 

                           (ii)    over a reasonably recent period so that the averaging period is not longerthan 12 months;

 

“pension fund rate of return” means, as of a particular date in relation to acontribution to a pension plan, the rate of return, averaged over a reasonably recentperiod of no longer than 12 months, that can reasonably be attributed to the operationof the pension fund or to the part of the pension fund to which the contribution ismade.

 

         (2)    This Section and Sections 154 to 158 apply with respect to contributions made

 

                  (a)    before January 1, 1988, that remain in the pension fund; or

 

                  (b)    on or after January 1, 1988.

 

When contribution interest accrues

154   Interest on contributions under Sections 155 to 158 begins to accrue no later than

 

                  (a)    the first day of the month after the month in which the contribution is requiredto be paid into the pension fund; or

 

                  (b)    for additional voluntary contributions or optional contributions, no later thanthe first day of the month after the month in which the contribution is paid intothe pension fund.

 

Interest rates for defined contribution pension plan

155   (1)    The rates at which interest on contributions must be credited under subsection 81(2)of the Act, for contributions, additional voluntary contributions or optionalcontributions made by or on behalf of members, former members and retiredmembers to the pension fund of a pension plan that provides defined contributionbenefits, are as set out in the following table and credited at least annually:

 

Type of Contribution

Calculation of Interest Rate

contributions, other than additionalvoluntary contributions and optionalcontributions

•     at a rate that is not less than the pensionfund rate of return, or

•     for pension benefits that are guaranteedby an insurance company, at a rate thatis not less than the bank deposit rate

additional voluntary contributions oroptional contributions

•     at a rate that is not less than the pensionfund rate of return

 

         (2)    When crediting interest on contributions, additional voluntary contributions oroptional contributions made during a pension plan’s fiscal year, an administrator mayuse the pension fund rate of return for the fiscal year determined in accordance withthe table in subsection (1) instead of the rate in effect when the interest accrued.

 

Interest rates for defined benefit pension plan

156   (1)    The rates at which interest on contributions must be credited under subsection 81(2)of the Act, for contributions, additional voluntary contributions or optionalcontributions made by or on behalf of members, former members or retiredmembers to the pension fund of a pension plan that provides defined benefits, are asset out in the following table and credited at least annually:

 

Type of Contribution

Calculation of Interest Rate

contributions, other than additionalvoluntary contributions and optionalcontributions

•     at a rate that is not less than the bankdeposit rate or, if provided for in theplan, not less than the pension fund rateof return, or

•     for pension benefits that are guaranteedby an insurance company, at a rate thatis not less than the bank deposit rate

additional voluntary contributions oroptional contributions

•     at a rate of return that can be reasonablyattributed to the operation of the pensionfund or to the part of the pension fund towhich the contributions are made

 

         (2)    When crediting interest on contributions, additional voluntary contributions oroptional contributions made during a pension plan’s fiscal year, an administrator mayuse an average rate for the fiscal year determined in accordance with the table insubsection (1) instead of the rate in effect when the interest accrued.

 

Interest for pension plans that provide both defined contribution benefits and definedbenefits

157   For a pension plan that provides both defined benefits and defined contribution benefits,the rate at which interest must be credited under subsection 81(2) of the Act is the ratedetermined in accordance with Section 155 or 156 for the applicable type of benefit.

 

Interest rate on termination of employment or membership

158   Upon the termination of employment or membership of a member, the rates at whichinterest must be credited under subsection 81(2) of the Act on any contributions made byor on behalf of the member during that fiscal year of the pension plan is the rate mostrecently calculated in accordance with Section 155, 156 or 157, credited to at least themonth that the member’s employment or membership was terminated.

 

Interest on lump sum payments

159   (1)    The rate at which interest must be credited on a lump sum to be paid to a personfrom a pension plan is the same rate that is used to calculate interest oncontributions to the plan made by members and former members.

 

         (2)    The interest in subsection (1) accrues from the date of termination of employment ormembership in the plan until the beginning of the month in which the lump sum ispaid.

 

Interest on commuted value of former member’s deferred pension

160   (1)    The rate at which interest must be credited on the commuted value of a formermember’s deferred pension payable under Section 61 of the Act is the same rate thatwas used to calculate the commuted value.

 

         (2)    The interest in subsection (1) accrues from the date that the former memberterminates their membership in the pension plan until the beginning of the month inwhich the amount is paid.

 

Interest on ordered repayment of money or return of assets

161   (1)    An order made by the Superintendent for repayment of money under subsection61(12) or 62(5) of the Act or for a return of assets under subsection 107(14) of theAct must include interest at the post-judgment interest rate calculated from the dateof the transfer of funds to which the order relates.

 

         (2)    In subsection (1), “post-judgment interest rate” means the bank rate at the end of thefirst day of the last month of the quarter immediately before the quarter in which thedate of the order falls, rounded to the next higher whole number if the bank rateincludes a fraction, plus 1%.

 

Interest on commuted value on wind-up of plan

162   (1)    The rate at which interest must be credited on the commuted value of a person’spension benefit payable under subsection 96(2) of the Act is the same rate that wasused to calculate the commuted value for the purposes of the wind-up report.

 

         (2)    The interest in subsection (1) accrues from the effective date of the pension plan’swind-up until the beginning of the month in which the amount is paid.

 

Withdrawing Surplus from Pension Plan

 

Notice of application to withdraw surplus from continuing pension plan

163   All of the following information is prescribed as the information required to be containedin an employer’s notice of application under subsection 103(2) of the Act to withdrawsurplus from a continuing pension plan:

 

                  (a)    the name of the plan and its Provincial registration number;

 

                  (b)    the valuation date of the valuation report provided with the application and theamount of surplus in the plan;

 

                  (c)    the amount of surplus requested to be withdrawn;

 

                  (d)    a statement that submissions in respect of the application may be made inwriting to the Superintendent no later than 30 days after the date the notice isreceived;

 

                  (e)    the contractual authority for withdrawing the surplus;

 

                  (f)    notice that copies of the valuation report filed in support of an application towithdraw the surplus are available for review at the offices of the employer,and information on how copies of the report may be obtained.

 

Application to withdraw surplus from continuing pension plan

164   An employer who applies to the Superintendent for consent to payment of money to theemployer out of the surplus of a pension fund of a continuing pension plan under Section103 of the Act must include all of the following information and documents with theirapplication:

 

                  (a)    a certified copy of the notice of the application;

 

                  (b)    details of the classes of persons who received the notice and the date that thelast notice was distributed;

 

                  (c)    a statement indicating that the requirements of subsection 103(2) of the Act aresatisfied;

 

                  (d)    a current valuation report for the plan that demonstrates that a surplus, asdetermined in accordance with Section 165, exists and that there are no specialpayments required to be made to the pension fund.

 

Determining surplus for continuing pension plan

165   (1)    For the purposes of determining surplus in a continuing pension plan under clause105(1)(a) of the Act,

 

                  (a)    the value of the assets of the plan must be calculated on the basis of the marketvalue of investments held by the pension fund plus any cash balances andaccrued or receivable items; and

 

                  (b)    the value of the liabilities of the plan is the greater of the following amounts:

 

                           (i)     the amount calculated as the plan’s going concern liabilities,

 

                           (ii)    the amount calculated as the plan’s solvency liabilities.

 

         (2)    For purposes of calculating the amount to be retained in a pension plan as surplusunder clause 105(1)(d) of the Act, the liabilities of the plan are the sum of all of thefollowing:

 

                  (a)    the solvency liabilities;

 

                  (b)    the liabilities for all pension benefits that are excluded in the calculation of thesolvency liabilities.

 

Notice of application to withdraw surplus from plan being wound up

166   All of the following information is prescribed as the information required to be containedin an employer’s notice of application under subsection 103(2) of the Act to withdrawsurplus from a pension plan that is being wound up:

 

                  (a)    all of the information required for a notice for a continuing pension plan inclauses 163(a) to (e);

 

                  (b)    notice that copies of the wind-up report filed in support of the application towithdraw surplus are available for review at the offices of the employer, andinformation on how copies of the report may be obtained.

 

Application to withdraw surplus from plan being wound up

167   An employer who applies to the Superintendent for consent to payment of money to theemployer out of the surplus of a pension fund under Section 103 of the Act that is beingwound up must include of the following with their application:

 

                  (a)    all of the information and documents required for an application to withdrawsurplus from a continuing pension plan in clauses 164(a) to (c);

 

                  (b)    the wind-up report.

 

Notice of intention to enter into agreement for payment of surplus to employer

168   (1)    All of the following information is prescribed as the information required to becontained in an employer’s notice of intention to enter into a written agreement forpayment of surplus money out of a pension plan under subsection 104(8) of the Act:

 

                  (a)    the name of the plan and its Provincial registration number;

 

                  (b)    the name and date of birth of the member, former member or retired member;

 

                  (c)    the method of distributing the surplus assets

 

                           (i)     between the employer and each person entitled to a pension benefit,deferred pension, pension or other payment under the plan, and

 

                           (ii)    among the persons entitled to a pension benefit, deferred pension,pension other payment under the plan;

 

                  (d)    the formula for allocating the surplus among persons entitled to a pensionbenefit, deferred pension, pension or other payment under the plan;

 

                  (e)    an estimate of the amount allocated to the person;

 

                  (f)    the options available to the person for how the amount allocated to the personmay be distributed;

 

                  (g)    the time period for exercising the options referred to in clause (f), inaccordance with subsection (3), and instructions on how the election may bemade;

 

                  (h)    how the amount will be distributed if the person does not make an electionrespecting the options in clause (f) within the specified period;

 

                  (i)     the name and details of the person to contact with any questions the person hasabout the statement;

 

                  (j)     notice that the allocation of surplus and the options available for distributing itare subject to the approval of the Superintendent and the approval of theCanada Revenue Agency, and may be adjusted accordingly.

 

         (2)    For an agreement for surplus to be paid to the employer on wind-up of a pensionplan, the time period for providing the notice of intention required by subsection104(8) of the Act is no later than 60 days after the date the administrator receivesnotice that the Superintendent has approved the wind-up report.

 

         (3)    The time period for a recipient of a notice of intention given under subsection 104(8)of the Act to make an election, or to be deemed to have elected the method ofdistributing the surplus set out in the statement, is no later than 90 days after the datethat the recipient received the notice.

 

Payments in accordance with election re surplus

169   An administrator must make payment in accordance with an election or deemed electionby a recipient of a notice of intention given under subsection 104(8) of the Act no laterthan 60 days after the later of the following dates:

 

                  (a)    the date that the administrator receives the person’s election under subsection168(3) or the date that the person is deemed to have made the election inaccordance with that subsection;

 

                  (b)    if the election respecting the options in clause 168(1)(f) is in relation to awind-up of a pension plan, the date the administrator receives notice that theSuperintendent has consented to the payment of the surplus money to theemployer under Section 103 of the Act.

 

Number of persons for purposes of agreement regarding payment of surplus to employer

170   At least 2/3 of the former members, retired members and other persons who are entitled topayments under a pension plan as of the date specified in an agreement for payment of asurplus is prescribed as the number of persons for the purposes of subclauses104(7)(a)(iii) and (b)(iii) of the Act.

 

Part 5: Wind-up of Pension Plans

 

Notice of intended wind-up

171   All of the following information is prescribed under subsection 92(6) of the Act as theinformation to be included in a notice of an intended wind-up of a pension plan:

 

                  (a)    the name of the plan and its Provincial registration number;

 

                  (b)    the proposed date of the wind-up;

 

                  (c)    notice that each member, former member or retired member or any otherperson who is entitled to a pension, deferred pension, other benefit or a refundwill be provided with an individual statement in accordance with subsection95(1) of the Act and Section 172, setting out their entitlements and optionsunder the plan and additional information concerning the plan;

 

                  (d)    for a plan that provides contributory benefits, notice of the member’s right tomake contributions in respect of the period of notice of termination ofemployment required under the Labour Standards Code.

 

Statement of member entitlements on wind-up

172   (1)    In addition to setting out a person’s entitlement under a pension plan and the optionsavailable to the person as required for a statement under subsection 95(1) of the Act,all of the following information is prescribed as the information that is required to beincluded in the statement as of the effective date of the wind-up, as the informationis recorded in the administrator’s records for the plan:

 

                  (a)    the name of the plan and its Provincial registration number;

 

                  (b)    the name and date of birth of the member, former member or retired member;

 

                  (c)    the effective date of the wind-up;

 

                  (d)    the date that the member or former member joined the plan and, except in thecase of multi-employer pension plans, the date that they began employmentwith the employer;

 

                  (e)    the name of the spouse of the member, former member or retired member;

 

                  (f)    the amount of required contributions made to the pension fund by the memberor former member since the date of the last annual statement to members;

 

                  (g)    the accumulated amount of required contributions made by the member orformer member to the pension fund, including interest credited to thecontributions;

 

                  (h)    the amount of additional voluntary contributions made by the member orformer member to the pension fund since the date of the last annual statementto members;

 

                  (i)     the accumulated amount of additional voluntary contributions made by themember or former member to the pension fund, including interest credited tothe contributions;

 

                  (j)     any amount transferred from another pension plan on behalf of the member orformer member since the date of the last annual statement to members and thepension benefit under the plan that is attributable to that amount;

 

                  (k)    for a plan that provides defined contribution benefits,

 

                           (i)     the amount of employer contributions allocated to the member, formermember or retired member since the date of the last annual statement tomembers, and

 

                           

(ii)                               the accumulated amount of employer contributions, including interestcredited to the contributions, allocated to the member, former member orretired member;

 

                  (l)     for a plan that provides defined benefits,

 

                           (i)     the member’s years of employment, or membership in the plan, for thepurpose of calculating pension benefits including any period of notice oftermination of employment credited under subsection 97(5) of the Act,and

                           (ii)    if salary is a factor in determining a pension benefit, the salary used todetermine the benefit;

 

                  (m)   the rate of interest credited to the contributions required to be made by themember, former member or retired member since the date of the last annualstatement to members;

 

                  (n)    an explanation of any amendments made to the plan during the period coveredby the statement for which notice has not previously been provided underSection 30;

 

                  (o)    the deadline by which any options must be exercised;

 

                  (p)    if there are insufficient assets to pay all pension benefits, a description of anyreductions made to the person’s benefits;

 

                  (q)    where copies of the wind-up report are available and information on howcopies of the report may be obtained;

 

                  (r)    the name and details of the person to contact with any questions the person hasabout the statement;

 

                  (s)    notice that the entitlements and options are subject to the approval of theSuperintendent and the approval of the Canada Revenue Agency, and may beadjusted accordingly.

 

         (2)    The time period for providing the statement of entitlements required by subsection95(1) of the Act to the persons specified in that subsection is no later than 60 daysafter the following applicable date:

 

                  (a)    the date the administrator receives notice that the Superintendent has approvedthe wind-up report;

 

                  (b)    for persons affected by the continuation of benefits approved by theSuperintendent under subsection 94(3) of the Act, the date the administratorreceives notice of the approval.

 

         (3)    The time period under subsection 95(2) of the Act for a recipient of a statement ofentitlements under subsection 95(1) of the Act to make an election, or to be deemedto have made an election, is no later than 90 days after the date that the recipientreceived the statement.

 

Payments in accordance with election on wind-up

173   (1)    Except as provided in subsection (2), the date by which an administrator must makepayment under subsection 95(4) of the Act of a person’s pension, deferred pension,other benefit or refund is no later than 60 days after the later of the following dates:

 

                  (a)    the date that the administrator receives the person’s election in accordance withsubsection 172(3) or the date that the person is deemed to have made theelection in accordance with that subsection;

 

                  (b)    the date that the administrator receives notice that the Superintendent hasapproved the wind-up report.

 

         (2)    If the Superintendent approves the payment of benefits under subsection 94(3) of theAct, the date by which an administrator must make payment under subsection 95(4)of the Act of a person’s pension, deferred pension, other benefit or refund is no laterthan 60 days after the later of the following dates:

 

                  (a)    the date that the administrator receives the person’s election in accordance withsubsection 172(3) or the date that the person is deemed to have made theelection in accordance with that subsection;

 

                  (b)    the date that the administrator receives notice of the approval of the payment.

 

Prescribed circumstances for ordering wind-up

174   Each of the following is prescribed as an event or circumstance which, if it occurs, allowsthe Superintendent to order the wind-up of a pension plan under clause 93(1)(h) of theAct:

 

                  (a)    the plan does not have any members, and has only former members, retiredmembers and other beneficiaries who are not members;

 

                  (b)    members of the plan no longer accrue pension benefits or ancillary benefitsunder the plan, and the employees are no longer eligible to become membersof the plan in accordance with the requirements under Section 45 of the Act.

 

Wind-up report

175   (1)    A pension plan’s wind-up report must be filed no later than 6 months after theeffective date of the wind-up, together with all outstanding annual informationreturns required to be filed for the plan up to the effective date of the wind-up.

 

         (2)    A wind-up report in respect of a defined benefit pension plan that is wound up inpart must, if the assets allocated to the wind-up are not sufficient to pay all pensionbenefits and the benefits included in the wind-up, be prepared as if the plan werebeing wholly wound up.

 

Additional information with wind-up report

176   (1)    In addition to the information that is required to be set out in a wind-up report byclause 94(1)(a) to (c) of the Act, the administrator must also provide theSuperintendent with any information the Superintendent requires to ensure that thewind-up report meets the requirements of the Act and the regulations and otherwiseprotects the interests of the members, former members, retired members and otherpersons entitled to benefits under the pension plan.

 

         (2)    The information in subsection (1) must be provided to the Superintendent within thetime period established by the Superintendent.

 

Minimum commuted value as of effective date of wind-up

177   If a pension plan is being wound up in whole or in part, the minimum commuted value ofa pension, deferred pension or ancillary benefit in respect of a person who exercises theirentitlement under subsection 96(2) of the Act is the amount determined as of the effectivedate of the wind-up in accordance with Section 3500 of the Canadian Institute ofActuaries Standards of Practice.

 

Payments exempt under subsection 94(3) of Act

178   Payments of refunds of employee contributions, together with interest, to persons notentitled to a pension, deferred pension or ancillary benefit are payments that are notprevented under subsection 94(3) of the Act.

 

Payments out of pension plan on wind-up

179   (1)    If an employer is required to make payments into a pension fund under Section 99 ofthe Act for a pension plan that is wound up, all of the following restrictions apply tothe pension fund until a report is filed under Section 186 certifying that there is nofurther amount to be funded:

 

                  (a)    money from the fund must not be used to purchase a life annuity for anyperson entitled to a life annuity;

 

                  (b)    the maximum portion of the commuted value of a former member’s deferredpension that may be transferred, as elected under clause 61(1)(a) or (b) of theAct, is the amount of any required employee contributions plus any additionalvoluntary contributions made by the employee.

 

         (2)    The benefits to be paid on wind-up of a pension plan under Section 97 of the Actmust be paid only if the full amount of all pensions, deferred pensions, ancillarybenefits or other benefits to which persons are entitled have been funded.

 

Reduction in benefits on wind-up

180   The reduction in pension benefits and other benefits required by Section 102 of the Act fora pension plan in which there is insufficient money in the pension fund is a reduction to anamount proportionate to the extent that the benefits have been funded.

 

Documents required to be filed within 6 months of wind-up

181   No later than 6 months after the effective date of a pension plan’s wind-up, anadministrator must file all of the following documents for the period that is from the dateof the plan’s most recent fiscal year end to the effective date of the wind-up:

 

                  (a)    an annual information return for the plan as required by subsection 31(1) of theAct;

 

                  (b)    financial statements for the plan’s pension fund as required by Section 66.

 

Notice of distribution of all assets of pension plan

182   No later than 30 days after final distribution of a pension plan’s assets in accordance withSection 94 of the Act, the plan’s wind-up report and these regulations, an administratormust give the Superintendent written notice that all the assets of the plan have beendistributed as required.

 

Payment of outstanding amounts on wind-up

183   Payment of all amounts that are due or have accrued and that have not been paid and arerequired to be made into a pension plan’s pension fund on wind-up under subsection 99(1)of the Act or clauses 100(1)(a) or (2)(a) of the Act must be made no later than thefollowing dates:

 

                  (a)    30 days after the effective date of the wind-up of the plan;

 

                  (b)    if approved by the Superintendent, a date that is later than 30 days.

 

Payments on wind-up of pension plan other than jointly sponsored pension plan

184   (1)    The payments required to be made by an employer to a pension fund undersubsection 99(2) of the Act must cover the amount necessary to fund benefits for thefollowing persons:

 

                  (a)    for a plan that is wholly wound up, members, former members, retiredmembers and any other persons entitled to a benefit from the pension plan;

 

                  (b)    for a plan that is partially wound up, those members, former members, retiredmembers and other persons entitled to a benefit from the plan that are affectedby the partial wind-up.

 

         (2)    The payments required to be made under subsection 99(2) of the Act by an employeron wind-up to fund the benefits provided under a pension plan and under Section 97of the Act must be in the form of annual payments, beginning on the effective dateof the plan’s wind-up, and must not be not less than the greater of the followingamounts:

 

                  (a)    the amount necessary to fund the benefits in equal annual instalments, payablein advance, over a period of no longer than 5 years;

 

                  (b)    the minimum payments required for the year the wind-up occurs, asdetermined in the valuation reports filed or submitted for the plan.

 

         (3)    The payments referred to in subsection (2) must continue until the liability is fullyfunded.

 

Payments of any additional amounts on wind-up of jointly sponsored pension plan

185   (1)    The payments required to be made under clause 100(1)(b) or (2)(b) of the Act tofund additional amounts on wind-up of a jointly sponsored pension plan must be inthe form of 1 of the following payments, beginning on the effective date of the plan’swind-up:

 

                  (a)    equal monthly instalments for 5 years or less;

 

                  (b)    payments in accordance with a schedule of payments determined undersubsection (2).

 

         (2)    The schedule of payments referred to in clause (1)(b) must be determined inaccordance with all of the following:

 

                  (a)    the present value of the scheduled payments at the effective date of the wind-up must be equal to the additional amounts to be funded;

 

                  (b)    the payments must be made in equal monthly instalments over an amortizationperiod that ends no later than 5 years after the effective date of the wind-up;

 

                  (c)    the present value of the scheduled payments must be determined using theinterest rates used in the pension plan’s wind-up report.

 

Administrator’s responsibilities during wind-up if additional funding required

186   (1)    Until all payments are made on wind-up as required under subsection 99(2) of theAct or clause 100(1)(b) or (2)(b) of the Act, an administrator must

 

                  (a)    cause the pension plan to be reviewed annually and a valuation report on theplan to be prepared in accordance with the requirements for a valuation reportunder Section 53 and this Section; and

 

                  (b)    file the valuation report prepared under clause (a) no later than 6 months afterthe valuation date of the report.

 

         (2)    A valuation report required by subsection (1) must show all of the following:

 

                  (a)    the gain or loss to the pension fund since the valuation date of the immediatelyprevious valuation report as a result of differences between the actualexperience and the experience anticipated by the assumptions made in theprevious report;

 

                  (b)    the increase or decrease in the remaining special payments, and paymentsunder subsection 99(2) or clause 100(1)(b) or (2)(b) of the Act, required toliquidate the gain or loss referred to in clause (a) over the remainder of theamortization period under Section 184 or 185.

 

         (3)    Any special payments required as a result of a loss referred to in clause (2)(a) mustbe included as payments required to be made by the employer under Section 99 ofthe Act or under Section 100 of the Act.

 

         (4)    If a report required under subsection (1) shows that there is no further amount to befunded, any money remaining in the pension fund

 

                  (a)    may be paid to the employer in accordance with Section 86 of the Act as if themoney was an overpayment into the pension fund by the employer within themeaning of clause 86(1)(b) of the Act;

 

                  (b)    for a jointly sponsored pension plan, must be dealt with according to the termsand conditions of the documents that create and support the plan.

 

Definitions for election to exclude jointly sponsored pension plan from Section 97 ofAct—Sections 188 to 194

187   In this Section and Sections 188 to 194,

 

“election form” means a form established by an administrator for a recipient to voteon an election to exclude;

 

“election to exclude” means an election made by JSPP employers and eligiblemembers to exclude a jointly sponsored pension plan and its members from theoperation of Section 97 of the Act and made effective by a notice of election inaccordance with subsection 98(4) of the Act;

 

“JSPP employers” means the employers, and any person or entity who makesemployer contributions or who represents the employers of a jointly sponsoredpension plan, as referred to in subsection 98(1) of the Act;

 

“eligible members” means the members, or the representatives of the members, of ajointly sponsored pension plan, other than members for whom a notice of death hasbeen received by the administrator;

 

“notice of election” means the notice required to be filed by subsection 98(4) of theAct;

 

“notice of vote” means the notice provided by any JSPP employers or eligiblemembers to the administrator under Section 188 requiring a vote to be held onwhether to make an election to exclude.

 

Notice of vote

188   Any JSPP employers or eligible members may provide the administrator with a notice ofvote, in writing, requiring a vote to be held on whether to make an election to exclude.

 

Vote on whether to make election to exclude

189   (1)    A vote on whether to make and election to exclude must be held in accordance withthis Section.

 

         (2)    No later than 60 days after receiving a notice of vote, the administrator of a jointlysponsored pension plan must send information statements and election forms to allof the following persons, as follows:

 

                  (a)    the administrator must send an information statement and an election form to

 

                           (i)     a person who meets all of the following criteria:

 

                                    (A)   they were a JSPP employer or an eligible member on the date thenotice of vote was sent to the administrator,

 

                                    (B)   they are a JSPP employer or an eligible member on the date theinformation statement and election form are sent,

 

                                    (C)   for eligible members, they were not represented by a collectivebargaining agent on the date the notice of vote was sent to theadministrator;

 

                           (ii)    each collective bargaining agent that represented eligible members on thedate the notice of vote was sent to the administrator;

 

                  (b)    the administrator must send an information statement to a person who meetsall of the following criteria:

 

                           (i)     the criteria in paragraphs (a)(i)(A) and (B),

 

                           (ii)    they were represented by a collective bargaining agent on the date thenotice of vote was sent to the administrator;

 

                  (c)    the administrator must provide the Superintendent with a copy of theinformation statement and the election form at the same time the administratorsends the statements and forms in accordance with clauses (a) and (b) and mustadvise the Superintendent of when the last election form was sent.

 

         (3)    An information statement sent under subsection (2) to the persons in clauses (2)(a)and (b) must be sent to the most recent address for the person in the administrator’srecords for the pension plan, and must contain all of the following information:

 

                  (a)    the name of the recipient and their status as a JSPP employer or eligiblemember on the date the notice of vote was sent to the administrator;

 

                  (b)    the name of the plan and its Provincial registration number;

 

                  (c)    the administrator’s name and contact information;

 

                  (d)    a copy of the notice of vote that was received by the administrator;

 

                  (e)    the date the notice of vote was sent to the administrator;

 

                  (f)    that the recipient may elect to exclude the plan and its members from theoperation of Section 97 of the Act with respect to the payment of a pension ora reduced pension to eligible members of the plan whose combination of ageplus years of continuous employment or membership in the plan equals at least55 at the effective date of the plan’s wind-up;

 

                  (g)    an explanation as to the impact of an election to exclude on all of thefollowing:

 

                           (i)     the plan,

 

                           (ii)    employer contributions,

 

                           (iii)   employee contributions;

 

                  (h)    that an election to exclude will be made only if, according to the election formsreceived by the administrator, 2/3 or more of the total number of JSPPemployers and eligible members who were JSPP employers and eligiblemembers on the date the notice of vote was sent to the administrator and thedate the information statement was sent vote to exclude the plan and itsmembers from the operation of Section 97 of the Act;

 

                  (i)     that an election to exclude will only take effect when notice of election is filed,or on a later date specified in the notice of election, in accordance withsubsection 98(4) of the Act;

 

                  (j)     that only 1 election may be made in respect of the plan, in accordance withsubsection 98(3) of the Act;

 

                  (k)    that an election may be rescinded by the JSPP employers and eligiblemembers, and that the rescission takes effect when notice of the rescission isfiled, or on a later date specified in the notice, in accordance with subsection98(5) of the Act;

 

                  (l)     for a recipient who is an eligible member, whether they were represented by acollective bargaining agent on the date that the notice of vote was sent;

 

                  (m)   for a recipient who, on the date that the notice of vote was sent, was an eligiblemember represented by a collective bargaining agent, a statement that thecollective bargaining agent will vote on behalf of the recipient and may vote toexclude or object to excluding the plan and its members from the operation ofSection 97 of the Act;

 

                  (n)    for a recipient who, on the date that the notice of vote was sent, was an eligiblemember not represented by a collective bargaining agent,

 

                           (i)     a statement that the person may vote to exclude or object to excludingthe plan and its members from the operation of Section 97 of the Act bycompleting and submitting the election form provided, and

 

                           (ii)    the last date that the administrator will accept election forms, inaccordance with Section 190.

 

         (4)    An information statement sent under subsection (2) to a collective bargaining agentmust contain all of the following information:

 

                  (a)    the information required for an information statement to JSPP employers andeligible members in clauses (3)(b) to (j);

 

                  (b)    a statement that the collective bargaining agent may vote to exclude or objectto excluding the pension plan and its members from the operation of Section97 of the Act on behalf of all persons who meet all of the following criteria, bysubmitting an election form provided by the administrator:

 

                           (i)     they were eligible members on the date the notice of vote was sent,

 

                           (ii)    they were represented by the collective bargaining agent on the date theinformation statement and election form were sent by the administrator,

 

                           (iii)   they were eligible members on the date the information statement andelection form were sent by the administrator;

 

                  (c)    the number of persons who meet all of the criteria in subclauses (b)(i) to (iii).

 

         (5)    At the same time that the information required by subsection[s] (3) and (4) isprovided to the persons referred to in clauses (2)(a) and (b), the administrator mustprovide an individual statement containing the following information to each personwho was a JSPP employer or an eligible member on the date the notice of vote wassent to the administrator and on the date the information statement is sent:

 

                  (a)    for a JSPP employer, a statement as to the impact on employer contributionsand other costs of the employer under the pension plan in all of the followingcircumstances:

 

                           (i)     if an election to exclude is made, and all of the following criteria are met:

 

                                    (A)   the election to exclude is made on the date the administrator sets asthe last date for accepting election forms under Section 190,

 

                                    (B)   the election to exclude is to take effect on the date it is made,

 

                                    (C)   the effective date of the plan’s wind-up is the date of the election toexclude,

 

                           (ii)    if an election to exclude is not made as a result of the vote, and theeffective date of the plan’s wind-up is the date the administrator sets asthe last date for accepting election forms under Section 190;

 

                  (b)    for an eligible member, a statement as to the member’s entitlement to pensionbenefits and other benefits under the pension plan, under the followingcircumstances:

 

                           (i)     if an election to exclude is made, and all of the following criteria are met:

 

                                    (A)   the election to exclude is made on the date the administrator sets asthe last date for accepting election forms under Section 190,

 

                                    (B)   the election to exclude is to take effect on the date it is made,

 

                                    (C)   the effective date of the plan’s wind-up is the date the election toexclude is made,

 

                                    (D)   the member’s combined age plus years of continuous employmentor membership in the plan equals at least 55 as of the date theelection to exclude is made,

 

                           (ii)    if an election to exclude is not made as a result of the vote, and all of thefollowing criteria are met:

 

                                    (A)   the effective date of the plan’s wind-up is the date the administratorsets as the last date for accepting election forms under Section 190,

 

                                    (B)   the member’s combined age plus years of continuous employmentor membership in the plan equals at least 55 as of the last date foraccepting election forms,

 

                           (iii)   if an election to exclude is made, and all of the following criteria are met:

 

                                    (A)   the election to exclude is made on the date the administrator sets asthe last date for accepting election forms under Section 190,

 

                                    (B)   the election to exclude is to take effect on the effective date of theplan’s wind-up,

 

                                    (C)   the effective date of the plan’s wind-up is the date the member’scombined age plus years of continuous employment ormembership in the plan equals at least 55,

 

                           (iv)   if an election to exclude is not made, and the effective date of the plan’swind-up is the date the member’s combined age plus years of continuousemployment or membership in the plan equals at least 55.

 

         (6)    An election form sent under subsection (2) must include all of the followinginformation:

 

                  (a)    the name of the pension plan and its Provincial registration number;

 

                  (b)    the name of the administrator;

 

                  (c)    the address where the election form must be sent;

 

                  (d)    for an election form to be used by a collective bargaining agent, the number ofpersons on behalf of whom the agent is voting to exclude or is objecting to theexclusion who meet all of the criteria in clause (4)(b);

 

                  (e)    a statement that indicates that

 

                           (i)     by signifying “yes” on the election form, the employer, member orcollective bargaining agent votes to exclude the pension plan and itsmembers from the operation of Section 97 of the Act,

 

                           (ii)    by signifying “no” on the election form, the employer, member orcollective bargaining agent objects to excluding the pension plan and itsmembers from the operation of Section 97 of the Act;

 

                  (f)    a space on the election form for the JSPP employer, eligible member orcollective bargaining agent to signify their vote and the date the vote is made;

 

                  (g)    a statement that the person voting understands the nature and legalconsequences of the election to exclude, and is aware of the right to seekindependent legal and financial advice about the election;

 

                  (h)    the last date that the administrator will accept election forms, in accordancewith Section 190.

 

Last date for accepting election forms

190   The administrator must set a date that is no earlier than 45 days after the date that theysend the last information statement as the last date that election forms will be accepted.

 

Maintenance of election forms

191   An administrator must keep all election forms they receive, and must provide copies of theelection forms to the Superintendent on request.

 

Prohibition against identifying persons who submit election forms

192   An election form and the process for voting for or objecting to the exclusion of a pensionplan from the requirements of Section 97 of the Act must not enable an administrator toidentify any member who submits an election form, or on whose behalf the election formis submitted.

 

Successful election to exclude

193   An election to exclude is successful if the administrator receives votes seeking to excludethe pension plan and its members from the operation of Section 97 of the Act from 2/3 ormore of the total number of persons who meet all of the following criteria:

 

                  (a)    they were JSPP employers or eligible members on the date the notice of votewas sent to the administrator;

 

                  (b)    they were JSPP employers or eligible members on the date the informationstatement was sent by the administrator.

 

Notice of election

194   (1)    If an election to exclude is successful in accordance with Section 193, anadministrator must file a notice of election and send a copy of the notice to all of thefollowing:

 

                  (a)    each person who is a JSPP employer or eligible member on the date the noticeis sent;

 

                  (b)    each collective bargaining agent that represents eligible members on the datethe notice is sent.

 

         (2)    A notice of election must be filed and sent under subsection (1) no later than 60 daysafter the date the administrator sets as the last date for accepting election forms underSection 190.

 

         (3)    A notice of election must contain all of the following information:

 

                  (a)    the name of the pension plan and its Provincial registration number;

 

                  (b)    the administrator’s name and contact information;

 

                  (c)    the total number of persons who meet the criteria set out in clauses 193(a) and(b);

 

                  (d)    the number of persons described in clause (c) who

 

                           (i)     voted to exclude the pension plan and its members from the operation ofSection 97 of the Act,

 

                           (ii)    voted not to exclude the pension plan and its members from theoperation of Section 97 of the Act,

 

                           (iii)   were represented by a collective bargaining agent that voted to excludethe pension plan and its members from the operation of Section 97 of theAct on their behalf,

 

                           (iv)   were represented by a collective bargaining agent that voted not toexclude the pension plan and its members from the operation of Section97 of the Act on their behalf,

 

                  (e)    confirmation that the number of election forms received by the administratorrepresents

 

                           (i)     if the election to exclude is successful, votes to exclude the pension planand its members from the operation of Section 97 of the Act from 2/3 ormore of the total number of persons described in clause (c), or

 

                           (ii)    if the election to exclude is not successful, votes to exclude the pensionplan and its members from the operation of Section 97 of the Act fromless than 2/3 of the total number of persons described in clause (c);

 

                  (f)    for notices sent to eligible members represented by a collective bargainingagent and to collective bargaining agents, that the collective bargaining agentvoted to exclude or objected to excluding the pension plan and its membersfrom the operation of Section 97 of the Act on behalf of the member.

 

Part 6: Withdrawals and Transfers

 

Withdrawals and Transfers from Pension Plans

 

Direction to administrator to exercise entitlement under subsection 61(5) of Act

195   (1)    The direction required to be delivered to an administrator for a former member toexercise their entitlement to require the administrator to pay an amount equal to thecommuted value of the former member’s deferred pension under subsection 61(5) ofthe Act must be made no later than 90 days following the later of the followingdates:

 

                  (a)    the date the former member’s employment was terminated;

 

                  (b)    the date the statement required to be provided under subsection 41(1) of theAct was received in accordance with Section 76.

 

         (2)    An administrator must comply with a direction delivered in accordance withsubsection (1) no later than 60 days after the administrator receives all theinformation the administrator requires to comply with the direction.

 

Direction to administrator to transfer into registered retirement savings arrangement

196   (1)    A direction that may be delivered to an administrator to exercise an entitlementunder subsection 55(5), 63(8), 67(4) or (10), 70(3) or 87(7) of the Act must be madeno later than 90 days after the administrator notifies the person that they are entitledto require the amount to be paid into a registered retirement savings arrangement.

 

         (2)    Payment of an amount into a registered retirement savings arrangement as requiredby Section 71 of the Act in accordance with a direction delivered under subsection(1) must be made no later than 60 days after the direction is received.

 

Transfers to a retirement savings arrangement under clause 61(1)(b) of Act

197   (1)    If the commuted value of a former member’s deferred pension to be transferred intoa retirement savings arrangement under clause 61(1)(b) of the Act does not exceedthe amount prescribed for the transfer under the federal Income Tax Regulations, thefull amount of the commuted value must be transferred into a LIRA or a LIF.

 

         (2)    If the commuted value of a former member’s deferred pension to be transferred intoa retirement savings arrangement under clause 61(1)(b) of the Act is greater than theamount prescribed for the transfer under the federal Income Tax Regulations, Section198 applies to the excess amount.

 

         (3)    An administrator must not transfer the commuted value of a pension or deferredpension unless the transferee agrees to administer the amount transferred as apension or deferred pension in accordance with the Act and these regulations.

 

Transfers of excess amount into LIRA or LIF

198   (1)    In this Section, “excess amount” means the portion of the amount transferable underclause 61(1)(b) of the Act into a LIRA or LIF, or the amount transferable underclause 67(1)(b) of the Act into a registered retirement savings arrangement, that isgreater than the amount prescribed for the transfer under the federal Income TaxRegulations.

 

         (2)    If the excess amount is transferred, directly or indirectly, into a LIRA or a LIF, theowner may withdraw money from the LIRA or LIF in an amount not greater than thesum of all of the following, calculated as of the date the financial institution pays thewithdrawn amount:

 

                  (a)    the excess amount;

 

                  (b)    any investment earnings since the date of the transfer, including any unrealizedcapital gains or losses, attributable to the excess amount, as calculated by thefinancial institution that administers the fund or account.

 

         (3)    An owner must apply in an approved form to the financial institution thatadministers their LIRA or LIF to withdraw an excess amount from the LIRA or LIF.

 

         (4)    An application to withdraw an excess amount in accordance with this Section mustbe signed by the owner and accompanied by 1 of the following documents:

 

                  (a)    a written statement from the administrator setting out the excess amount thatwas transferred from the pension plan’s pension fund into the LIRA or LIF;

 

                  (b)    a written statement from the Canada Revenue Agency setting out the excessamount that was transferred into the LIRA or LIF.

 

         (5)    A contract governing a LIRA or LIF must include all of the following terms abouttransferring excess amounts, and any contract that does not contain them is deemedto include them:

 

                  (a)    that the financial institution is entitled to rely upon the information provided bythe owner in an application to withdraw funds from their fund or account;

 

                  (b)    that an application that meets the requirements of the Act and the regulationsconstitutes authorization to the financial institution to make the payment fromthe fund or account in accordance with the Act and the regulations;

 

                  (c)    that the financial institution is required to make the payment to which theowner is entitled no later than 30 days after the date the financial institutionreceives the completed application and accompanying documents.

 

Life Annuities, LIRAs and LIFs

 

Life annuities

199   An insurance contract that provides for a life annuity resulting from a transfer of thecommuted value of a pension benefit or as the result of a purchase from a LIRA or LIFmust include all of the following terms:

 

                  (a)    that, except as permitted by subsection 88(3) or Section 90 of the Act or bythese regulations, no money transferred, including interest, will be assigned,charged, anticipated or given as security, and any transaction purporting toassign, charge, anticipate or give the money transferred as security is void andin contravention of this clause;

 

                  (b)    that an order under Section 74 of the Act dividing any pension benefit, deferredpension or pension, or a domestic contract that provides for the division of apension benefit, deferred pension or pension, is not effective to the extent thatit purports to entitle a spouse of the annuitant to a share that exceeds 50% ofthe life annuity earned during the marriage or cohabitation, as determined inaccordance with Section 74 of the Act and these regulations;

 

                  (c)    that if the annuitant has a spouse at the time payments begin, the life annuitywill be in the form of a joint and survivor annuity, as required by Section 63 ofthe Act, unless the circumstances in subsection 63(4) of the Act apply;

 

                  (d)    that, for the purposes of purchasing an immediate life annuity, a determinationas to whether the annuitant has a spouse will be made on the date the annuity ispurchased;

 

                  (e)    that the amount of the life annuity will be determined on a basis that does nottake into account the sex of the annuitant, except for the following contracts:

 

                           (i)     a contract that is based entirely upon an amount or amounts transferredfrom a defined contribution pension plan that provides for employercontributions that vary according to the sex of the employee inaccordance with clause 72(2)(b) of the Act,

 

                           (ii)    a contract that is purchased with funds from a LIRA or a LIF, if thecommuted value of the pension benefit that was transferred into theLIRA or LIF was determined in a manner that differentiated on the basisof sex;

 

                  (f)    that payments under a life annuity purchased with funds from a LIF may beginimmediately;

 

                  (g)    that payments under a life annuity purchased with funds from a LIRA must notbegin before the earlier of the following dates:

 

                           (i)     the earliest date that the owner of the annuity would have been entitled,as a former member, to receive pension benefits under the Act as a resultof termination of employment or termination of membership in anypension plan from which money was transferred directly or indirectlyinto a LIRA,

 

                           (ii)    the earliest date that the owner of the annuity would have been entitled,as a former member, to receive pension benefits under any pension planfrom which money was transferred directly or indirectly into a LIRA as aresult of termination of employment or termination of membership in theplan; and

 

                  (h)    that the annuity will be administered in accordance with Section 67 of the Actif the annuitant dies before payments under the life annuity begin.

 

Purchasing LIRAs

200   (1)    A LIRA purchased under these regulations must be purchased using all or part of thefollowing amounts:

 

                  (a)    an amount transferred under clause 61(1)(b) of the Act;

 

                  (b)    an amount transferred as a result of a division of any pension benefit, deferredpension or pension under Section 74 of the Act;

 

                  (c)    assets in a LIRA;

 

                  (d)    assets in a LIF.

 

         (2)    Any of the following persons may purchase a LIRA under these regulations:

 

                  (a)    a former member who is entitled to make a transfer under clause 61(1)(b) ofthe Act;

 

                  (b)    a spouse of a person who was a member and who is entitled to make a transferunder clause 61(1)(b) of the Act;

 

                  (c)    a person who has previously transferred an amount under clause 61(1)(b) of theAct into a LIRA or LIF;

 

                  (d)    a person who has previously transferred an amount into a LIRA as a result of adivision of any pension benefit, deferred pension or pension under Section 74of the Act;

 

                  (e)    a spouse who is entitled to transfer a lump sum as a result of a division of anypension benefit, deferred pension or pension under Section 74 of the Act.

 

Contracts establishing and governing LIRAs

201   A contract establishing and governing a LIRA must include all of the following in relationto the LIRA:

 

                  (a)    the name and address of the financial institution providing the LIRA;

 

                  (b)    a description of any powers the owner has respecting investment of the assetsin the LIRA;

 

                  (c)    a statement by the financial institution providing the LIRA that it agrees not toamend the contract except as provided in Schedule 3: Nova Scotia LIRAAddendum and these regulations;

 

                  (d)    a description of the method for determining the value of the assets in the LIRA;

 

                  (e)    a statement as to whether the commuted value of the pension benefit that wastransferred into the LIRA was determined in a manner that differentiated on thebasis of sex;

 

                  (f)    a statement that the financial institution is entitled to rely upon the informationprovided by the owner in an application to purchase a LIRA;

 

                  (g)    a statement by the financial institution that it agrees to provide the informationdescribed in Section 4 of Schedule 3: Nova Scotia LIRA Addendum to thepersons indicated in that Section;

 

                  (h)    a copy of Schedule 3: Nova Scotia LIRA Addendum.

 

Administrator’s duties respecting transfers to LIRAs

202   (1)    An administrator must advise a financial institution providing a LIRA as to whetherthe commuted value of a pension benefit transferred to the financial institution forthe LIRA was determined in a manner that differentiated on the basis of sex.

 

         (2)    An administrator must advise a financial institution providing a LIRA of the earliestdate that a former member who is transferring funds to the LIRA would have beenentitled to receive a pension under the pension plan from which the funds aretransferred.

 

Conditions for transferring assets from LIRAs

203   (1)    A financial institution must not transfer any or all of the assets of a LIRA unless allof the following conditions are met:

 

                  (a)    the transfer is permitted under the Act and these regulations;

 

                  (b)    the transferee agrees to administer the amount transferred in accordance withthe Act and these regulations.

 

         (2)    A financial institution must advise a person to whom the assets of a LIRA aretransferred in writing that the amount transferred must be administered in accordancewith the Act and these regulations.

 

Amending LIRAs

204   (1)    Except as provided in subsection (2), a financial institution must not amend acontract governing a LIRA if the amendment would result in a reduction in theowner’s rights under the contract.

 

         (2)    Subsection (1) does not apply if any of the following conditions are met:

 

                  (a)    the financial institution is required by law to make the amendment;

 

                  (b)    the owner is entitled to transfer the assets of the LIRA under the terms of thecontract as they exist before the amendment is made.

 

         (3)    A financial institution must give an owner of a LIRA written notice of any proposedamendment to their contract, other than an amendment in subsection (2), at least 90days before the amendment takes effect.

 

         (4)    A financial institution must give an owner of a LIRA written notice of any proposedamendment to their contract that reduces an owner’s rights, as permitted undersubsection (2), and the notice must

 

                  (a)    include a statement as to the nature of the amendment; and

 

                  (b)    allow the owner at least 90 days after the notice is given to transfer all or partof the assets of the LIRA.

 

         (5)    Written notices of amendments to contracts governing LIRAs under this Sectionmust be sent to the owner’s most recent address as set out in the records of thefinancial institution.

 

Purchasing LIFs

205   (1)    A LIF purchased under these regulations must be purchased using all or part of thefollowing amounts:

 

                  (a)    the amount transferred under clause 61(1)(b) of the Act;

 

                  (b)    the amount transferred as a result of a division of any pension benefit, deferredpension or pension under Section 74 of the Act;

 

                  (c)    the assets in a LIRA;

 

                  (d)    the assets in a LIF.

 

         (2)    Any of the following persons may purchase a LIF under these regulations:

 

                  (a)    a former member who is entitled to make a transfer under clause 61(1)(b) ofthe Act;

 

                  (b)    a spouse of a person who was a member and who is entitled to make a transferunder clause 61(1)(b) of the Act;

 

                  (c)    a person who has previously transferred an amount under clause 61(1)(b) of theAct into a LIRA or LIF;

 

                  (d)    a person who has previously transferred an amount into a LIF as a result of adivision of any pension benefit, deferred pension or pension under Section 74of the Act;

 

                  (e)    a spouse who is entitled to transfer a lump sum as a result of a division of anypension benefit, deferred pension or pension under Section 74 of the Act.

 

         (3)    A purchaser of a LIF must have the written consent of their spouse, in an approvedform, to purchase a LIF, unless any of the following apply:

 

                  (a)    the spouse is living separate and apart from the purchaser on the date of thepurchase with no reasonable prospect of resuming cohabitation;

 

                  (b)    any of the money to be transferred into the LIF is derived, directly or indirectly,from sources other than a pension benefit provided in respect of anyemployment of the purchaser.

 

Contracts establishing and governing LIFs

206   A contract establishing and governing a LIF must include the following in relation to theLIF:

 

                  (a)    all of the information required for a LIRA in clauses 201(a) to (f), substituting“LIF” for “LIRA”;

 

                  (b)    a statement by the financial institution that it agrees to provide the informationdescribed in Section 14 of Schedule 4: Nova Scotia LIF Addendum, to thepersons indicated in that Section;

 

                  (c)    a copy of Schedule 4: Nova Scotia LIF Addendum attached to the contract.

 

LIF filing requirements and Superintendent’s list

207   (1)    A financial institution must file all of the following for approval by theSuperintendent, together with the prescribed fees:

 

                  (a)    a certified copy of its specimen LIF contract;

 

                  (b)    certified copies of any subsequent amendments to its specimen LIF contract.

 

         (2)    The Superintendent must establish and maintain a list that contains all of thefollowing:

 

                  (a)    the financial institutions for which specimen contracts filed under subsection(1) are approved;

 

                  (b)    the LIFs that are approved for financial institutions listed under clause (a).

 

         (3)    A financial institution may issue a LIF only after it is notified in writing by theSuperintendent that its name and LIF are on the list maintained under subsection (2),and if it has not been notified that it has been removed from the list in accordancewith subsection (4).

 

         (4)    Without affecting the duties or liability of a financial institution in relation to anytransfer or LIF, the Superintendent may remove the financial institution’s name orLIF from the list maintained under subsection (2) if

 

                  (a)    certified copies are not filed as required by subsection (1); or

 

                  (b)    the financial institution breaches any of its obligations under these regulations.

 

         (5)    The Superintendent must notify a financial institution who files a specimen LIFcontract for approval, in writing, of any of the following:

 

                  (a)    that its specimen contract has been approved and its name and LIF are on thelist maintained under subsection (2);

 

                  (b)    that the Superintendent has removed the institution’s name or LIF from the listmaintained under subsection (2).

 

Administrator’s duties respecting transfers to LIFs

208   (1)    An administrator must not effect a transfer to a LIF unless the administrator hasascertained that the name of the financial institution and the LIF are currently on thelist maintained under subsection 207(2).

 

         (2)    An administrator must advise a financial institution providing a LIF as to whetherthe commuted value of a pension benefit transferred to the financial institution forthe LIF was determined in a manner that differentiated on the basis of sex.

 

         (3)    An administrator must advise a financial institution providing a LIF of the earliestdate that a former member who is transferring funds to the LIF would have beenentitled to receive a pension under the pension plan from which the funds aretransferred.

 

Conditions for transferring assets from LIFs

209   (1)    A financial institution must not transfer any or all of the assets of a LIF unless all ofthe following conditions are met:

 

                  (a)    the transfer is permitted under the Act and these regulations;

 

                  (b)    the transferee agrees to administer the amount transferred in accordance withthe Act and these regulations.

 

         (2)    A financial institution must advise a person to whom the assets of a LIF aretransferred in writing that the amount transferred must be administered in accordancewith the Act and these regulations.

 

Amending LIFs

210   (1)    Except as provided in subsection (2), a financial institution must not amend acontract governing a LIF if the amendment would result in a reduction in theowner’s rights under the contract.

 

         (2)    Subsection (1) does not apply if any of the following conditions are met:

 

                  (a)    the financial institution is required by law to make the amendment;

 

                  (b)    the owner is entitled to transfer the assets of the LIF under the terms of thecontract that exist before the amendment is made.

 

         (3)    A financial institution must give an owner of a LIF written notice of any proposedamendment to their contract, other than an amendment in subsection (2), at least 90days before the amendment takes effect.

 

         (4)    Written notice of any proposed amendment that reduces an owner’s rights aspermitted under subsection (2) must

 

                  (a)    include a statement as to the nature of the amendment; and

 

                  (b)    allow the owner at least 90 days after the notice is given to transfer all or partof the assets of the LIF.

 

         (5)    Written notices of amendments to contracts governing LIFs under this Section mustbe sent to the owner’s most recent address as set out in the records of the financialinstitution.

 

Withdrawals from LIRAs and LIFs

 

Definitions for circumstances of financial hardship—Sections 212 to 230

211   In this Section and Sections 212 to 230,

 

“application” means an application under subsection 91(6) of the Act by an ownerfor the Superintendent’s consent to a withdrawal in circumstances of financialhardship;

 

“child” includes a person for whom an owner, or an owner’s spouse, is a legalguardian;

 

“circumstance of financial hardship” means a circumstance prescribed in subsection212(1) for the purposes of subsection 91(5) of the Act;

 

“consented amount” means the amount the Superintendent consents to beingwithdrawn by an owner from a LIRA or LIF under an application, not including anyapplicable withholding tax or prescribed fees;

 

“dentist” means a dentist who is licensed to practise dentistry in a jurisdiction inCanada;

 

“dependant” means any of the following relatives of an owner, or an owner’s spouse,who is dependent on the owner or the owner’s spouse for support on the date theowner signs an application or at any time during the 12-month period immediatelybefore the date the owner signs an application:

 

                           (i)     child,

 

                           (ii)    stepchild,

 

                           (iii)   grandchild,

 

                           (iv)   parent,

 

                           (v)    step-parent,

 

                           (vi)   grandparent,

 

                           (vii)  brother,

 

                           (viii) half-brother,

 

                           (ix)   step-brother,

 

                           (x)    sister,

 

                           (xi)   half-sister,

 

                           (xii)  step-sister,

 

                           (xiii) uncle,

 

                           (xiv) aunt,

 

                           (xv)  niece,

 

                           (xvi) nephew.

 

“medical expenses” means expenses for goods or services of a medical or dentalnature that are

 

                           (i)     certified by a physician or dentist, who is qualified to make thatdetermination within the scope of their licence, as necessary to treat anillness or disability,

 

                           (ii)    not covered by insurance, a benefit plan, a government program or anyother source;

 

“medical expense circumstance” means a circumstance of financial hardship asprescribed in clause 212(1)(b);

 

“mortgage default circumstance” means a circumstance of financial hardship asprescribed in clause 212(1)(a);

 

“owner’s spouse” means a spouse other than a spouse who is living separate andapart from the owner on the signing date and with whom there is no reasonableprospect of resuming cohabitation;

 

“principal residence” means a property that is ordinarily inhabited by an owner onthe date the owner signs an application;

 

“reduced income circumstance” means a circumstance of financial hardship asprescribed in clause 212(1)(d);

 

“rental default circumstance” means a circumstance of financial hardship asprescribed by clause 212(1)(c);

 

“signing date” means the date an application is signed by an owner;

 

“withdrawal” means the commutation or surrender, in whole or in part, of a LIRA orLIF.

 

Prescribed circumstances of financial hardship

212   (1)    The following are the circumstances of financial hardship:

 

                  (a)    mortgage default circumstance: the owner or the owner’s spouse has receiveda written demand in respect of a default on a mortgage debt that is securedagainst the owner’s principal residence, and the owner could face eviction ifthe debt remains unpaid;

 

                  (b)    medical expense circumstance: the owner, the owner’s spouse or a dependanthas incurred or will incur medical expenses;

 

                  (c)    rental default circumstance: the owner or the owner’s spouse has received awritten demand in respect of arrears in the payment of rent on the owner’sprincipal residence, and the owner could face eviction if the debt remainsunpaid;

 

                  (d)    reduced income circumstance: the owner’s anticipated total income from allsources before taxes for the 12-month period immediately following thesigning date is less than 66 2/3% of the Year’s Maximum PensionableEarnings for the year in which the application is signed.

 

         (2)    For the purposes of a mortgage default circumstance or a rental default circumstance,an owner has only 1 principal residence.

 

Application to Superintendent for consent to withdraw funds from LIRA or LIF incircumstances of financial hardship

213   (1)    An application in an approved form must be

 

                  (a)    signed and dated by the owner; and

 

                  (b)    submitted to the Superintendent.

 

         (2)    An application must be accompanied by a copy of the most recent statement for theLIRA or LIF issued to the owner of the LIRA or LIF by the financial institution thatadministers the LIRA or LIF.

 

         (3)    An application must request consent to withdraw all of the following amounts:

 

                  (a)    the amount requested for withdrawal, calculated in accordance with Section222;

 

                  (b)    the amount of any applicable withholding tax;

 

                  (c)    the prescribed fee for the application.

 

         (4)    The application must include a declaration about a spouse in accordance withSection 214.

 

         (5)    An application must include a statement by the owner that the owner understandsthat any funds withdrawn from the LIRA or LIF are not exempt from execution,seizure or attachment under Section 89 of the Act.

 

         (6)    An owner must provide accurate and complete information in their application andany accompanying documents.

 

Declaration about a spouse for withdrawal from LIRA or LIF

214   Any of the following documents constitutes a declaration about a spouse:

 

                  (a)    for an owner who has a spouse, either

 

                           (i)     a statement signed and dated by the owner’s spouse in the presence of awitness other than the owner that includes all of the following:

 

                                    (A)   that the spouse is aware of the pension entitlements under theLIRA or LIF,

 

                                    (B)   that the spouse is aware of the consequences of withdrawing fundsfrom the LIRA or LIF,

 

                                    (C)   that the spouse agrees to the withdrawal, or

 

                           (ii)    a statement signed and dated by the owner attesting to the fact that, onthe signing date, they are living separate and apart from their spouse withno reasonable prospect of resuming cohabitation and that at least 1 of thefollowing conditions applies:

 

                                    (A)   the spouse delivered a written waiver to the financial institutionproviding the LIRA or LIF with respect to the amount that is thesubject of the withdrawal, in accordance with

 

                                             (I)     for a LIRA, Section 6 of Schedule 3: Nova Scotia LIRAAddendum,

 

                                             (II)   for a LIF, Section 19 of Schedule: 4 Nova Scotia LIFAddendum,

 

                                    (B)   the spouse is not entitled to receive an amount in respect of theLIRA or LIF in accordance with the terms of a domestic contractfor the division of a LIRA or LIF,

 

                                    (C)   the spouse is not entitled to receive an amount in respect of theLIRA or LIF by court order issued under Section 74 of the Act;

 

                  (b)    for an owner who does not have a spouse, a statement signed and dated by theowner attesting to the fact that the owner does not have a spouse.

 

Mortgage default circumstance application information

215   In an application under a mortgage default circumstance, an owner must include a copy ofthe written demand in respect of the default on the mortgage debt secured against theowner’s principal residence, setting out the amount required to pay the mortgage debt indefault and all directly related enforcement costs to bring the mortgage into good standing,together with all of the following information or documents:

 

                  (a)    a statement of the amount of the regular monthly payments required to bemade in relation to the mortgage debt;

 

                  (b)    the civic address of the owner’s principal residence.

 

Medical expenses circumstance application information

216   An owner must include all of the following in an application under a medical expensecircumstance:

 

                  (a)    copies of receipts or estimates for the medical expenses;

 

                  (b)    a written opinion of a physician or dentist indicating that, in their opinion, theexpenses are necessary to treat an illness or disability;

 

                  (c)    a statement signed and dated by the owner that indicates any coverage that is ormay be available to the owner for the expenses from insurance or from abenefit plan, government program or other source.

 

Rental default circumstance application information

217   In an application under a rental default circumstance, the owner must include a copy of thewritten demand in respect of the arrears in the payment of rent on the owner’s principalresidence, setting out the amount required to pay the rental arrears and all directly relatedenforcement costs and reinstate the tenancy.

 

Reduced income circumstance application information

218   An owner must include all of the following in an application under a reduced incomecircumstance:

 

                  (a)    a statement signed and dated by the owner that sets out the owner’s anticipatedtotal income from all sources before taxes for the 12-month periodimmediately after the signing date;

 

                  (b)    copies of any documents showing income received by the owner in the 12-month period immediately before the signing date;

 

                  (c)    copies of any documents showing income expected to be received by theowner in the 12-month period immediately after the signing date;

 

                  (d)    a copy of the owner’s most recent notice of assessment or reassessment, orequivalent documents, issued by the Canada Revenue Agency.

 

Superintendent may require additional information

219   (1)    Before consenting or refusing consent to an application, the Superintendent mayrequire any of the following additional information:

 

                  (a)    further evidence of the circumstance of financial hardship in addition to theevidence submitted under Sections 215 to 218 with their application underSection 213;

 

                  (b)    information relating to the application and accompanying documents that theSuperintendent considers necessary to assist in understanding the documents orto verify their authenticity.

 

         (2)    An owner must provide any additional evidence and information required undersubsection (1) in the form and manner specified by the Superintendent.

 

Superintendent entitled to rely on information

220   In consenting or refusing consent to an application, the Superintendent is entitled to rely onthe information provided in the application, the accompanying documents and anyadditional evidence and information provided under Section 219.

 

Stale-dated document not valid for application

221   A document submitted for the purposes of an application made under a circumstance offinancial hardship is not valid and must not be used by the Superintendent to process theapplication if the document is signed before the following date:

 

                  (a)    for a document that requires the signature of the owner or the owner’s spouse,60 days before the date the Superintendent receives it;

 

                  (b)    for a document that requires the signature of someone other than as describedin clause (a), 12 months before the date the Superintendent receives it.

 

Only 1 application in 12-month period

222   (1)    Except as provided in subsection (3), only 1 application in each circumstance offinancial hardship may be made during any 12-month period in relation to aparticular person.

 

         (2)    The 12-month period referred to in subsection (1) begins on the date that anapplication in relation to a particular person is received by the Superintendent.

 

         (3)    An application that does not result in a withdrawal does not count for the purposes ofsubsection (1).

 

Calculating maximum consented amounts

223   (1)    In an application under a mortgage default circumstance, the consented amount mustnot exceed the amount sufficient to pay the mortgage debt in default and all directlyrelated enforcement costs required to bring the mortgage into good standing.

 

         (2)    In an application under a rental default circumstance, the net amount may not exceedthe amount required to pay the rental arrears and all directly related enforcementcosts and reinstate the tenancy.

 

         (3)    In an application under a medical expense circumstance, the consented amount mustnot exceed the total of the following amounts:

 

                  (a)    an amount sufficient to pay any medical expenses actually incurred within the12-month period immediately preceding the signing date;

 

                  (b)    an amount sufficient to pay any medical expenses anticipated to be incurredwithin the 12-month period immediately after the signing date.

 

         (4)    In an application under a reduced income circumstance, the consented amount mustnot exceed the amount determined by the following formula:

 

maximum consented amount = (50% of YMPE) - (75% of ATI)

 

in which

 

                  YMPE =   Year’s Maximum Pensionable Earnings for the year in which theapplication is signed by the owner

 

                  ATI =        the owner’s anticipated total income from all sources before taxesdetermined in accordance with subsection (4) for the 12-month periodimmediately following the signing date.

 

         (5)    An owner’s anticipated total income from all sources before taxes in subsection (3)does not include any of the following:

 

                  (a)    any withdrawals in circumstances under Sections 212 to 230;

 

                  (b)    a refund or repayment of taxes paid to a Canadian jurisdiction;

 

                  (c)    a refundable tax credit;

 

                  (d)    income from sources enumerated in Sections 52, 52A, 53 and 53A of theEmployment Support and Income Assistance Regulations made under theEmployment Support and Income Assistance Act and categorized in thoseSections as not being “chargeable income”;

 

                  (e)    child support payments received under a court order or an agreement.

 

Consented amount may be lower than requested

224   (1)    Subject to subsection (2), a consented amount may be less than the amountrequested in an owner’s application.

 

         (2)    A consented amount must be at least $500.

 

Subsequent applications prohibited if funds withdrawn

225   (1)    An application may not be made under a mortgage default circumstance if theSuperintendent previously consented to an application from the same owner under amortgage default circumstance and funds were withdrawn from the owner’s LIRA orLIF under that previous application.

 

         (2)    An application may not be made under a rental default circumstance if theSuperintendent previously consented to an application from the same owner under arental default circumstance and funds were withdrawn from the owner’s LIRA orLIF under that previous application.

 

Superintendent’s decision

226   (1)    The Superintendent may consent or refuse to consent to an application.

 

         (2)    The Superintendent’s decision on an application is final and not subject to appeal.

 

Notification of decision

227   The Superintendent must notify an owner in writing of the Superintendent’s decision ontheir application within a reasonable period after the date the Superintendent receives theowner’s completed application, together with all documents and any additional evidenceand information required by the Superintendent.

 

Owner authorized to receive payment

228   If the Superintendent, upon application, consents to a withdrawal, the owner is authorizedto receive payment of the consented amount in accordance with these regulations.

 

Payment after consent

229   (1)    A consent by the Superintendent under subsection 91(5) of the Act to a withdrawalauthorizes the financial institution that provides the LIRA or LIF to pay

 

                  (a)    the consented amount to the owner; and

 

                  (b)    the prescribed fee for the application to the Minister of Finance.

 

         (2)    Payment of the consented amount may be made in any of the following forms:

 

                  (a)    a lump sum payment;

 

                  (b)    transfer to a registered retirement savings arrangement designated by theowner.

 

         (3)    A financial institution must pay or transfer the consented amount no later than 30days after the date it receives the Superintendent’s written consent.

 

Stale-dated consent is nullity

230   A consent by the Superintendent under subsection 91(5) of the Act is a nullity if thefinancial institution receives it later than 12 months after the date the consent is signed bythe Superintendent.

 

Withdrawal from LIRA or LIF in circumstances of shortened life expectancy

231   (1)    An owner may apply in an approved form to the financial institution that providestheir LIRA or LIF to withdraw all or part of the money in their LIRA or LIF if, onthe date the owner signs the application, they have an illness or physical disabilitythat is likely to shorten their life expectancy to less than 2 years.

 

         (2)    An application under subsection (1) must be signed by the owner and accompaniedby all of the following documents:

 

                  (a)    a statement signed by a physician that, in the opinion of the physician, theowner has an illness or physical disability that is likely to shorten their lifeexpectancy to less than 2 years.

 

                  (b)    a declaration about a spouse in accordance with Section 214, or a statementsigned by the owner attesting to the fact that none of the money in the LIRA orLIF is derived, directly or indirectly, from a pension benefit provided in respectof any employment of the owner.

 

         (3)    A contract governing a LIRA or LIF must include all of the following terms, and anycontract that does not contain them is deemed to include them:

 

                  (a)    that the financial institution is entitled to rely upon the information provided bythe owner in an application to withdraw money from the owner’s LIRA or LIF;

 

                  (b)    that an application that meets the requirements of the Act and these regulationsconstitutes authorization to the financial institution to make the payment fromthe LIRA or LIF in accordance with the Act and the regulations;

 

                  (c)    that the financial institution is required to make the payment to which theowner is entitled no later than 30 days after the date the financial institutionreceives the completed application and accompanying documents.

 

Withdrawal from LIRA or LIF in circumstances of non-residency

232   (1)    An owner may apply in an approved form to the financial institution that providestheir LIRA or LIF to withdraw all or part of the money in their LIRA or LIF becausethey are no longer a resident of Canada if

 

                  (a)    on the date the owner signs the application, they are a non-resident of Canadaas determined by the Canada Revenue Agency for the purposes of the federalIncome Tax Act; and

 

                  (b)    the application is made 24 months or later after the date they departed fromCanada.

 

         (2)    An application under subsection (1) must be signed by the owner and accompaniedby all of the following documents:

 

                  (a)    a written determination from the Canada Revenue Agency that the person is anon-resident for the purposes of the federal Income Tax Act;

 

                  (b)    a declaration about a spouse in accordance with Section 214, or a statementsigned by the owner attesting to the fact that none of the money in the LIRA orLIF is derived, directly or indirectly, from a pension benefit provided in respectof any employment of the owner.                                                                    

 

         (3)    A contract governing a LIRA or LIF must include all of the following terms, and anycontract that does not contain them is deemed to include them:

 

                  (a)    that the financial institution is entitled to rely upon the information provided bythe owner in an application to withdraw money from the owner’s fund oraccount;

 

                  (b)    that an application that meets the requirements of the Act and these regulationsconstitutes authorization to the financial institution to make the payment fromthe fund or account in accordance with the Act and the regulations;

 

                  (c)    that the financial institution is required to make the payment to which theowner is entitled no later than 30 days after the date the financial institutionreceives the completed application and accompanying documents.

 

Withdrawal of small amounts from LIRA or LIF at age 65

233   (1)    An owner who is at least 65 years old may apply in an approved form to thefinancial institution that provides their LIRA or LIF to withdraw all or part of themoney in their LIRA or LIF or to transfer the assets of their LIRA or LIF to aregistered retirement savings arrangement if, when they sign the application, thevalue of all assets in all LIRAs and LIFs owned by the owner is less than 50% of theYear’s Maximum Pensionable Earnings for that calendar year.

 

         (2)    An application under subsection (1) must be signed by the owner and accompaniedby 1 of the following documents:

 

                  (a)    a statement signed by the owner attesting to the fact that none of the money inthe LIRA or LIF is derived, directly or indirectly, from a pension benefitprovided in respect of any employment of the owner;

 

                  (b)    if a statement cannot be provided under clause (a), a declaration about a spousein accordance with Section 214.

 

         (3)    If the assets in the LIRA or LIF consist of identifiable and transferable securities, thefinancial institution may transfer the securities with the consent of the owner.

 

         (4)    A contract governing a LIRA or LIF must include all of the following terms, and anycontract that does not contain them is deemed to include them:

 

                  (a)    that the financial institution is entitled to rely upon the information provided bythe owner in an application to withdraw or transfer money from their LIRA orLIF;

 

                  (b)    that an application that meets the requirements of the Act and these regulationsconstitutes authorization to the financial institution to make the payment ortransfer from the LIRA or LIF in accordance with the Act and the regulations;

 

                  (c)    that the value of all of the assets in all LIRAs and LIFs owned by the owner onthe date they sign an application to withdraw or transfer funds at age 65 mustbe determined using the most recent statement about each LIRA or LIF givento the owner dated no earlier than 1 year before the owner signs theapplication;

 

                  (d)    that the financial institution is required to make the payment to which theowner is entitled no later than 30 days after the date the financial institutionreceives the completed application and accompanying documents.

 

Part 7: Division of Pension Entitlement and Compliance with Attachment

 

Division of Pension Entitlement Between Spouses

 

Definitions for division of pension entitlement—Sections 235 to 252

234   In this Section and Sections 235 to 252,

 

“court order” means an order of the Supreme Court of Nova Scotia, or an equivalentorder of a court of competent jurisdiction made outside the Province and enforceablein the Province, that provides for the division of a pension benefit, deferred pension,pension, LIRA or LIF;

 

“division” means a division of any of the following between the named person andthat person’s spouse made in accordance with Section 74 of the Act by court order,domestic contract or otherwise as prescribed by these regulations:

 

                           (i)     a pension benefit of a member,

 

                           (ii)    a deferred pension of a former member,

 

                           (iii)   a pension of a retired member,

 

                           (iv)   a LIRA of an owner,

 

                           (v)    a LIF of an owner;

 

“limited member” means a person designated as a limited member of a pension plan,in accordance with Section 240;

 

“net investment returns” means interest, dividends and realized and unrealizedcapital gains and losses, less any related investment expenses normally charged toinvestment earnings;

 

“pensionable service” means the months or parts of months in respect of which apension benefit, deferred pension or pension accrues under a pension plan andincludes the months or parts of months in respect of which a pension benefit,deferred pension or pension was earned by a member, former member or retiredmember under another pension plan that have been transferred to the plan;

 

“proportionate share” of a pension benefit means,

 

                           (i)     for a defined contribution benefit, the share of the benefit to which thespouse of the member, former member or retired member is entitled,calculated in accordance with Section 247,

 

                           (ii)    for a LIRA or LIF, the share of the money in the LIRA or LIF the spouseof the owner is entitled to calculated in accordance with Section 248,

 

                           (iii)   for a pension or a defined benefit, a share of the pension or definedbenefit calculated in accordance with Section 249;

 

“separation date” means the date a spouse becomes entitled to a division of any ofthe following:

 

                           (i)     a pension benefit of a member;

 

                           (ii)    a deferred pension of a former member,

 

                           (iii)   a pension of a retired member,

 

                           (iv)   a LIRA of an owner,

 

                           (v)    a LIF of an owner,

 

“separate pension” means the proportionate share of a member’s, former member’sor retired member’s pension that is established in favour of a spouse.

 

Application of Sections 234 to 252

235   (1)    Sections 234 to 252 apply to LIRAs and LIFs, as if they were deferred pensionsunder the Act, with the following changes:

 

                  (a)    “deferred pension” must be read as including a “LIRA or LIF”;

 

                  (b)    “former member” must be read as including an “owner”.

 

         (2)    Except as provided in subsection (3), if a spouse is entitled to an interest in a pensionbenefit, deferred pension or pension because of a division of pension benefits, all ofthe following must be calculated in accordance with Sections 234 to 252:

 

                  (a)    the spouse’s proportionate share in the pension benefit, deferred pension orpension;

 

                  (b)    the manner of determining the spouse’s entitlement to a proportionate share ofthe pension benefit, deferred pension or pension.

 

         (3)    Sections 234 to 252 do not apply to an interest in a pension benefit, deferred pensionor pension of a member, former member or retired member and that person’s spousethat has been determined by court order or domestic contract before the date theseregulations come into force.

 

         (4)     Sections 234 to 252 apply to an insurance contract that provides for a life annuityunder Section 199.

Subsection 235(4) amended: O.I.C. 2015-310, N.S. Reg. 326/2015.

 

Matrimonial Property Act settlements

236   (1)    Nothing in Sections 234 to 252 prevents the division of assets under Section 13 ofthe Matrimonial Property Act in settlement of the value of any pension benefit,deferred pension or pension under the Act or these regulations that, because of thetermination of the marriage relationship, the person will lose the chance ofacquiring.

 

         (2)    Sections 234 to 252 do not apply if there is an unequal division of assets under theMatrimonial Property Act in the circumstances described in subsection (1).

 

Separation date specified in court order or domestic contract

237   The separation date must be specified in any court order or domestic contract thatdetermines a division of pension benefits.

 

Information about pension plan, LIRA or LIF provided to spouse

238   (1)    A spouse who claims an interest in their spouse’s pension benefit, deferred pensionor pension and who submits a request in an approved form to the administrator forinformation about their spouse’s pension plan or the financial institution thatprovides their spouse’s LIRA or LIF, is entitled to receive any information necessaryfrom the administrator or financial institution to determine the value of the pensionbenefit, deferred pension or pension.

 

         (2)    An administrator or financial institution must provide the information requestedunder subsection (1) no later than 60 days after receiving the request.

 

         (3)    An administrator or financial institution must provide updates to any informationrequested under subsection (1) no more frequently than once each calendar year ifthe update is requested by the spouse.

 

Notice to member, former member or retired member of spouse’s request

239   (1)    An administrator or financial institution must send a notice in an approved form toany member, former member or retired member whose spouse submits a requestunder the following provisions:

 

                  (a)    subsection 238(1), for a request for information about a pension plan, LIRA orLIF;

 

                  (b)    subsection 240(1), for a request for designation as a limited member;

 

                  (c)    subsection 242(2), for a request to transfer their proportionate share.

 

         (2)    The notice in subsection (1) must be sent no later 30 days after the date the request issubmitted to the administrator or financial institution.

 

Limited members

240   (1)    A spouse of a member, former member or retired member may be designated as alimited member of the member’s, former member’s or retired member’s pensionplan by submitting a request to the administrator in an approved form, together witha copy of the court order or domestic contract that determines the division of thepension benefit, deferred pension or pension.

 

         (2)    A limited member has all of the following rights:

 

                  (a)    the right to receive payment of a separate pension or a proportionate share of apension, as the case may be;

 

                  (b)    except as modified by Sections 234 to 252, all of the rights of a member,former member or retired member under the Act and these regulations inrelation to the limited member’s pension benefit, deferred pension or pensionincluding the information required to be provided, as enumerated in Section241;

 

                  (c)    the rights set out in Sections 234 to 252.

 

         (3)    A spouse ceases to be a limited member of a pension plan if the commuted value ofthe proportionate share of a pension benefit, deferred pension or pension istransferred out of the plan to the credit of the spouse under Section 242.

 

Information to be provided to limited member

241   (1)    An administrator must provide all of the following information to a limited member,as it pertains to the limited member:

 

                  (a)    any information available to members, former members or retired members, ornotices provided to members, former members or retired members;

 

                  (b)    to the extent that it is not provided under clause (a), information on optionsavailable to and elections that may be made by a limited member with respectto the limited member’s proportionate share of the pension benefit, deferredpension or pension when such options become available;

 

                  (c)    for a limited member who is entitled to a defined contribution benefit, anannual statement to members.

 

         (2)    A limited member who is receiving a separate pension under Section 243 is entitledto all of the information that an administrator provides to retired members of thepension plan.

 

Transfer of proportionate share out of pension plan

242   (1)    A transfer of a proportionate share of a pension benefit out of a pension plan to thecredit of a spouse must be made in accordance with the requirements for transferringa former member’s deferred pension under Section 61 of the Act and under thisSection.

 

         (2)    A spouse who submits a request in an approved form to an administrator or financialinstitution together with a copy of the court order or domestic contract thatdetermines the division of a defined contribution benefit, LIRA or LIF is entitled totransfer the spouse’s proportionate share of the benefit, LIRA or LIF, as follows:

 

                  (a)    the defined contribution benefit may be transferred from the pension plan tothe pension fund of another pension plan, to a LIRA or LIF or for the purchaseof a life annuity;

 

                  (b)    a LIRA may be transferred, in accordance with Section 2 of Schedule 3: NovaScotia LIRA Addendum, to the pension fund of another pension plan, to aLIRA or LIF or for the purchase of a life annuity;

 

                  (c)    a LIF may be transferred, in accordance with Section 15 of Schedule 4: NovaScotia LIF Addendum, to a LIRA or LIF or for the purchase of a life annuity.

 

         (3)    If a pension plan provides for a member or former member to transfer the commutedvalue of their pension benefit or deferred pension from the plan when they retire orterminate membership in the plan, a limited member who submits a request to anadministrator, in an approved form, is entitled to transfer the commuted value oftheir proportionate share of the member’s pension benefit or the former member’sdeferred pension from the plan to the credit of the limited member when the memberor former member retires or terminates membership in the plan.

 

Limited member’s separate pension resulting from division of defined benefit

243   (1)    A separate pension for a limited member that results from the division of a definedbenefit must meet all of the following conditions:

 

                  (a)    it must be equal to a proportionate share of the pension, as calculated underSection 249, that the member or former member would receive if

 

                           (i)     there were no division of the benefit, and

 

                           (ii)    the member or former member had elected a pension in the normal formof pension provided under the pension plan for the member or formermember;

 

                  (b)    it must be converted into 1 of the following:

 

                           (i)     a pension payable for the lifetime of the limited member,

 

                           (ii)    another form, or combination of forms, of pension that a member orformer member of the pension plan may elect, under which thecommuted value of the separate pension is not less than the commutedvalue of the limited member’s proportionate share of the member’s orformer member’s pension in the normal form of pension provided underthe plan to the member or former member;

 

                  (c)    it must be actuarially adjusted, taking into account any difference in the ages ofthe limited member and the member or former member.

 

         (2)    A separate pension for a limited member that results from the division of a definedbenefit must begin at the member’s or former member’s retirement date.

 

End of entitlement to limited member’s proportionate share

244   A limited member is entitled to be paid a proportionate share, as calculated under Section249, of a pension until the earlier of the following dates:

 

                  (a)    the date the limited member dies;

 

                  (b)    the date the pension ceases to be paid.

 

Death of member, former member or limited member entitled to defined benefit

245   (1)    If a member or former member dies before a limited member receives theirproportionate share of a defined benefit under subsection 242(2), the limitedmember is entitled to receive a proportionate share of the pre-retirement deathbenefit determined under Section 249.

 

         (2)    If a member or former member dies after a limited member transfers theirproportionate share of a defined benefit under subsection 242(2), no pre-retirementdeath benefit is payable to the limited member unless the member or former memberhas designated the limited member as a beneficiary.

 

         (3)    If the limited member dies before the member or former member and before theytransfer their proportionate share of a defined benefit under subsection 242(2), thepension plan must pay to the limited member’s beneficiary or personal representativethe death benefit payable in respect of the limited member’s proportionate share ofthe defined benefit that would be payable if the member or former member had died.

 

Variation of payment to person with shortened life expectancy and payment of commutedvalue if benefit is small

246   A pension plan may provide that a limited member who is entitled to a separate pension ora proportionate share of a pension benefit or deferred pension may be paid the commutedvalue of the separate pension or proportionate share of the pension benefit or deferredpension in the same manner that a pension plan may provide for variation of payment to

 

                  (a)    a member or former member with a circumstance of shortened life expectancyunder Section 129; or

 

                  (b)    a former member or retired member of the commuted value of a benefit in thecircumstances set out in Section 70 of the Act.

 

Calculation of proportionate share of defined contribution benefit

247   (1)    The proportionate share of a defined contribution benefit must be calculated inaccordance with the following formula:

 

proportionate share = P × (A ÷ B) × C

 

in which

 

                  P =   the percentage of the pension benefit or deferred pension to be credited to thespouse under a court order or domestic contract

 

                  A =  pensionable service accumulated by the member or former member, accruingfrom the earliest of all of the following dates to the separation date:

 

                           (i)     the date of the marriage,

 

                           (ii)    the beginning of the domestic partnership,

 

                           (iii)   the beginning of the cohabitation in a conjugal relationship that satisfiesthe requirements in subclause 2(ax)(iii) or (v) of the Act

 

                  B =  the total pensionable service accumulated by the member or former member tothe separation date

 

                  C =  the total of all of the following:

 

                           (i)     the contributions to the pension plan to the credit of the member orformer member as at the separation date,

 

                           (ii)    the net investment returns that are allocated, or that are to be allocated, inrespect of those contributions to the date that the spouse’s proportionateshare is transferred from the pension plan under subsection 242(2) orestablished in the pension plan in favour of the spouse as a limitedmember.

 

         (2)    If a member or former member of a pension plan that provides defined contributionbenefits is not entitled to a deferred pension benefit under Section 52 or 53 of theAct on the separation date, the proportionate share of the member’s or formermember’s contributions and net investment returns calculated under subsection (1)must be paid from the plan to the member’s or former member’s spouse.

 

         (3)    A limited member’s eligibility for retirement under a pension plan that provides fordefined contribution benefits must be based on the limited member’s age.

 

Calculation of proportionate share of LIRA or LIF

248   The proportionate share of a LIRA or LIF must be calculated in accordance with thefollowing formula:

 

proportionate share = P × (A ÷ B) × C

 

in which

 

                  P =   the percentage of the LIRA or LIF to be credited to the spouse under a courtorder or domestic contract

 

                  A =  pensionable service accumulated by the owner, accruing from the earliest of allof the following dates to the separation date:

 

                           (i)     the date of the marriage,

 

                           (ii)    the beginning of the domestic partnership,

 

                           (iii)   the beginning of the cohabitation in a conjugal relationship that satisfiesthe requirements in subclause 2(ax)(iii) or (v) of the Act

 

                  B =  the total pensionable service accumulated by the owner, to the separation date

 

                  C =  the total of all of the following:

 

                           (i)     the value of the assets in the LIRA or LIF as at the separation date, and

 

                           (ii)    in respect of the assets that are in the LIRA or LIF as at the separationdate, the net investment returns allocated, or that are to be allocated, fromthe separation date to the date that the spouse’s proportionate share in theLIRA or LIF is transferred out of the LIRA or LIF.

 

Calculation of proportionate share of pension, defined benefit or pre-retirement deathbenefit in respect of defined benefit

249   The proportionate share of a pension, defined benefit or pre-retirement death benefit inrespect of a defined benefit must be calculated in accordance with the following formula:

 

proportionate share = P × (A ÷ B)

 

in which

 

                  P =   the percentage of the pension, defined benefit or pre-retirement death benefit tobe credited to the spouse under a court order or domestic contract

 

                  A =  pensionable service accumulated by the member, former member or retiredmember, accruing from the earliest of all of the following dates to theseparation date:

 

                           (i)     the date of the marriage,

 

                           (ii)    the beginning of the domestic partnership,

 

                           (iii)   the beginning of the cohabitation in a conjugal relationship that satisfiesthe requirements in subclause 2(ax)(iii) or (v) of the Act

 

                  B =  the total pensionable service accumulated by the member, former member orretired member to

 

                           (i)     to the earlier of the following dates:

 

                                    (A)   the date that the member or former member retires,

 

                                    (B)   the date that the member or former member terminatesmembership in the pension plan, or

 

                           (ii)    for a plan that requires a determination of a proportionate share of a pre-retirement death benefit on the death of the member or former member,to the date of the member’s or former member’s death.

 

Adjustment of a member’s or former member’s defined benefit

250   (1)    Subject to subsection (2), a defined benefit of a member or former member must beadjusted by deducting from it the limited member’s proportionate share of thedefined benefit if a spouse, or the estate of a spouse receives any of the followingunder a division of the defined benefit:

 

                  (a)    a separate pension;

 

                  (b)    a transfer of a proportionate share of the commuted value of a defined benefitunder subsection 242(2);

 

                  (c)    a death benefit paid in respect of the limited member’s proportionate share ofthe defined benefit under subsection 245(3).

 

         (2)    A deduction under subsection (1) must be carried out on a gender-neutral basis.

 

Notice to spouse if member’s, former member’s or retired member’s interest may beaffected

251   An administrator must provide a spouse who has submitted a request for informationabout a member’s pension benefit, a former member’s deferred pension or a retiredmember’s pension under subsection 238(1) with at least 30 days advance notice of anytransaction relating to the member’s, former member’s or retired member’s interest in thepension benefit, deferred pension or pension, as a result of any of the following:

 

                  (a)    the member’s, former member’s or retired member’s death;

 

                  (b)    the retirement of the member or former member;

 

                  (c)    any direction given to the administrator by the member, former member orretired member.

 

Administrative fees incurred to satisfy entitlement of spouse

252   (1)    A spouse, member, former member or retired member must pay an administrator anamount that may be required by the pension plan to offset any administrative feesincurred by the plan to satisfy the spouse’s entitlement under a division of pensionbenefits, or a deferred pension or pension.

 

         (2)    The amount in subsection (1) must not exceed the following amounts:

 

                  (a)    $500, for the division of a defined benefit;

 

                  (b)    $250, for the division of a defined contribution benefit;

 

                  (c)    $650, for the division of a defined contribution benefit and a defined benefitprovided under a single pension plan.

 

Complying with Attachment

 

Costs of complying with attachment under Maintenance Enforcement Act

253   The cost of complying with an attachment made under clause 90(1)(b) of the Act by theDirector of Maintenance Enforcement in accordance with the Maintenance EnforcementAct must be calculated as the amount that reasonably represents the cost to the pensionplan of complying with the attachment subject to the maximum amounts set out for thetype of attachment in the following table:

 

Attachment

Costs not to exceed

 attachment of a defined benefit

$500

 attachment of a defined contribution benefit

$250

attachment of a defined benefit and a definedcontribution benefit provided under a singlepension plan

$650

attachment of a deferred life annuity or a LIRA orLIF

$250

 

 

Schedule 1: Permitted Investments

(Pension Benefits Regulations)

 

Note: This document is Schedule 1 to the Pension Benefits Regulations (Nova Scotia). It formspart of the regulations and must be read, construed and interpreted in conjunction with thePension Benefits Act and its regulations.

 

Definitions for Schedule 1

1       In this Schedule,

 

“Canadian resource property” has the same meaning as in paragraph 66(15)(c) of theIncome Tax Act (Canada);

 

“child” means, in relation to a person, any of the following:

 

                           (i)     their child,

 

                           (ii)    their spouse’s child, or

 

                           (iii)   their child’s spouse;

 

“debt obligation” means a bond, debenture, note or other evidence of indebtedness ofan entity;

 

“entity” means any of the following:

 

                           (i)     a corporation, trust, partnership or fund or an unincorporated associationor organization,

 

                           (ii)    Her Majesty in right of Canada or of a province or the government of aforeign country or of a political subdivision of a foreign country, or anagency of any of these;

 

“investment corporation” means, in relation to a pension plan, a corporation thatmeets all of the following criteria:

 

                           (i)     it is limited in its investments to those that are authorized for the planunder this Schedule,

 

                           (ii)    it holds at least 98% of its assets in cash, investments and loans,

 

                           (iii)   it does not issue debt obligations,

 

                           (iv)   it obtains at least 98% of its income from investments and loans,

 

                           (v)    it does not lend any of its assets to, or invest any of its money in, arelated party of the plan;

 

“loan” includes a deposit, financial lease, conditional sales contract, repurchaseagreement and any other similar arrangement for obtaining money or credit, but doesnot include investments in securities or the making of an acceptance, endorsement orother guarantee;

 

“market terms and conditions” means, in relation to a transaction, the terms andconditions, including those relating to price, rent or interest rate, that would apply toa similar transaction in an open market under conditions requisite to a fair transactionbetween parties who are at arm’s length and acting prudently, knowledgeably andwillingly;

 

“mutual fund” or “pooled fund” means a fund established by a corporation that isduly authorized to operate a fund in which moneys from 2 or more depositors areaccepted for investment and where shares allocated to each depositor serve toestablish the proportionate interest at any time of each depositor in the assets of thefund;

 

“person” includes an entity;

 

“public exchange” means any of the following:

 

                           (i)     in Canada:

 

                                    (A)   the Alberta Stock Exchange,

 

                                    (B)   the Montreal Stock Exchange,

 

                                    (C)   the Toronto Stock Exchange,

 

                                    (D)   the Vancouver Stock Exchange,

 

                                    (E)   the Winnipeg Stock Exchange,

 

                           (ii)    the Stock Exchange (Paris), in France,

 

                           (iii)   The Stock Exchange (London), in the United Kingdom,

 

                           (iv)   in the United States:

 

                                    (A)   the American Stock Exchange,

  

                                    (B)   the Boston Stock Exchange,

 

                                    (C)   the Chicago Board of Trade,

 

                                    (D)   The Cincinnati Stock Exchange,

 

                                    (E)   the Detroit Stock Exchange,

 

                                    (F)    the Midwest Stock Exchange,

 

                                    (G)   The National Association of Securities Dealers AutomatedQuotation System,

 

                                    (H)   the National Stock Exchange,

 

                                    (I)    the New York Stock Exchange,

 

                                    (J)    the Pacific Coast Stock Exchange,

 

                                    (K)   the Philadelphia-Baltimore-Washington Stock Exchange,

 

                                    (L)   the Pittsburgh Stock Exchange,

 

                                    (M)  the Salt Lake Stock Exchange,

 

                                    (N)   the Spokane Stock Exchange;

 

“real estate corporation” means a corporation incorporated to acquire, hold, maintain,improve, lease or manage real property other than real property that yields petroleumor natural gas;

 

“real property” includes a leasehold interest in real property;

 

“regulations” means the Pension Benefits Regulations made under the Act;

 

“related party” means, in relation to a pension plan, any of the following persons, butdoes not include Her Majesty in right of Canada or of a province, or an agencythereof, or a bank, trust company or other financial institution that holds the assets ofthe pension plan, if that person is not the administrator:

 

                           (i)     the administrator or member of a pension committee, board of trustees orother body that is the administrator,

 

                           (ii)    an officer, director or employee of the administrator,

 

                           (iii)   a person responsible for holding or investing the assets of the plan, orany of their officers, directors or employees,

 

                           (iv)   an association or union representing employees of the employer, or anofficer or employee of the association or union,

 

                           (v)    an employer who participates in the plan, or an employee, officer ordirector of the employer,

 

                           (vi)   a member of the plan,

 

                           (vii)  if the employer is a corporation, a person who holds, directly orindirectly, or together with their spouse or their child, more than 10% ofthe voting shares carrying more than 10% of the voting rights attached toall voting securities of the corporation,

 

                           (viii) the spouse or a child of any person listed in subclauses (i) to (vii),

 

                           (ix)   if the employer is a corporation, an affiliate of the employer,

 

                           (x)    a corporation that is directly or indirectly controlled by a person referredto in any of subclauses (i) to (viii),

 

                           (xi)   an entity in which a person listed in subclause (i), (ii), (v) or (vii), or theirspouse or a child, has a substantial investment, or

 

                           (xii)  an entity that holds a substantial investment in the employer;

 

“resource corporation” means a corporation that has, at all times since the date that itwas incorporated,

 

                           (i)     limited its activities to acquiring, holding, exploring, developing,maintaining, improving, managing, operating or disposing of Canadianresource properties,

 

                           (ii)    restricted its investments and loans to investments and loans authorizedfor a pension plan under this Schedule, except for investments inCanadian resource properties or property to be used in connection withCanadian resource properties owned by it and loans secured by Canadianresource properties to persons resident in Canada for the exploration ordevelopment of those properties, and

 

                           (iii)   not borrowed money other than for the purpose of earning income fromCanadian resource properties;

 

“security” means,

 

                           (i)     in relation to a corporation, a share of any class of shares of thecorporation or a debt obligation of the corporation, including a warrant ofthe corporation, but does not include a deposit with a financial institutionor an instrument evidencing the deposit,

 

                           (ii)    in relation to an entity other than a corporation, any ownership interest inor debt obligation of the entity;

 

“segregated fund” means a fund established by a corporation that is duly authorizedto operate a fund in which contributions to a pension plan are deposited and theassets of which are held exclusively for the purposes of that plan alone or that planand 1 or more other pension plans;

 

“transaction” includes any of the following, but does not include a payment ofpensions or other benefits, a transfer of pension benefits or a withdrawal ofcontributions from a plan:

 

                           (i)     the making of an investment in securities,

 

                           (ii)    the taking of an assignment of, or otherwise acquiring, a loan made by athird party,

 

                           (iii)   the taking of a security interest in securities,

 

                           (iv)   any modification, renewal or extension of a previous transaction;

 

“voting share” means a share of any class of shares of a corporation that gives theholder voting rights

 

                           (i)     under all circumstances,

 

                           (ii)    by reason of an event that has occurred and is continuing, or

 

                           (iii)   by reason of a condition that has been fulfilled.

 

Indirect investment by administrator

2       For the purposes of this Schedule, an administrator indirectly makes, holds or acquires aninvestment on behalf of a plan, or indirectly holds, acquires or owns property on behalf ofa plan or indirectly lends money on behalf of a plan if the holding, making, acquiring,owning or lending of the investment, property or money, is done by any of the following:

 

                  (a)    a real estate corporation, resource corporation or investment corporation inwhich money from the pension plan has been invested in accordance withSection 11, 12 or 13 of this Schedule;

 

                  (b)    a real estate corporation, resource corporation or investment corporation ofwhich a corporation described in clause (a) holds securities to which areattached more than 30% of the votes that may be cast to elect the directors ofthe real estate corporation, resource corporation or investment corporation;

 

                  (c)    a mutual fund or pooled fund or trust fund in which the pension plan’s moneyhas been invested.

 

Person in control

3       (1)    For the purposes of this Schedule, the following are deemed to be in control of thespecified entities:

 

                  (a)    for a corporation, a person or pension plan controls the corporation if theperson or plan beneficially owns securities of the corporation to which areattached more than 50% of the votes that may be cast to elect the directors ofthe corporation and the votes attached to those securities are enough, ifexercised, to elect a majority of the directors of the corporation;

 

                  (b)    for an unincorporated entity other than a limited partnership, a person orpension plan controls the unincorporated entity if the person or planbeneficially owns more than 50% of the ownership interests into which theunincorporated entity is divided and the person or plan is able to direct thebusiness and affairs of the unincorporated entity;

 

                  (c)    for a limited partnership, the general partner of the limited partnership controlsthe limited partnership;

 

                  (d)    for a trust, a trustee of the trust controls the trust.

 

         (2)    For the purposes of this Schedule, a person or pension plan that controls an entitycontrols any other entity that is controlled by the entity.

 

Subsidiary corporations

4       For the purposes of this Schedule, a corporation is a subsidiary of another corporation if itis controlled by the other corporation.

 

Affiliated entities

5       For the purposes of this Schedule, an entity is affiliated with another entity if the entity iscontrolled by the other entity or if both entities are controlled by the same person.

 

Substantial investments

6       For the purposes of this Schedule, a person or pension plan has a substantial investment inan entity or corporation if

 

                  (a)    for an unincorporated entity, the person or plan, or an entity controlled by theperson or plan, beneficially owns more than 25% of the ownership interests inthe unincorporated entity;

 

                  (b)    for a corporation,

 

                           (i)     the voting rights attached to voting shares of the corporation that arebeneficially owned by the person or plan, or by an entity controlled bythe person or plan, are more than 10% of the voting rights attached to allof the outstanding voting shares of the corporation, or

 

                           (ii)    shares of the corporation that are beneficially owned by the person orplan, or by an entity controlled by the person or plan, representownership of more than 25% of the shareholders’ equity of thecorporation.

 

Associated with person or pension plan

7       For the purposes of this Schedule, a person or pension plan is associated with all of thefollowing:

 

                  (a)    a corporation that the person or plan controls and every affiliate of thecorporation;

 

                  (b)    a person who controls the person or plan;

 

                  (c)    a partner who has a substantial investment in a partnership in which the personor plan has a substantial investment;

 

                  (d)    a trust or estate in which the person or plan has a substantial investment or forwhich the person or plan serves as trustee or in a similar capacity to a trustee;

 

                  (e)    for a person,

 

                           (i)     the person’s spouse, or

 

                           (ii)    a brother, sister or child or other descendant of the person, or the spouseof any of those persons.

 

Application of this Schedule

8       (1)    This Schedule does not apply in respect of any of the following:

 

                  (a)    an insured pension plan or a pension plan in respect of which all benefits areprovided through an annuity contract issued by the Government of Canada;

 

                  (b)    investments held in an unallocated general fund of a person authorized to carryon a life insurance business in Canada.

 

         (2)    Sections 9 to 15 of this Schedule do not apply in respect of any of the followinginvestments or assets:

 

                  (a)    investments in a corporation that are held by, or on behalf of, a plan as a resultof an arrangement, as defined in subsection 192(1) of the Canada BusinessCorporations Act (Canada), for the reorganization or liquidation of thecorporation or for the amalgamation of the corporation with anothercorporation, if the investments are to be exchanged for shares or debtobligations;

 

                  (b)    assets that are acquired by, or on behalf of, a pension plan through therealization of a security interest held by, or on behalf of, the plan and that areheld for no longer than 2 years from the date the assets were acquired.

 

Quantitative limits on lending or investing money of pension plan

9       (1)    Except as provided in this Section, an administrator must not directly or indirectlylend to any of the following or invest in any of the following an amount of moneyfrom the pension fund that is equal to more than 10% of the total book value of theplan’s assets:

 

                  (a)    any 1 person;

 

                  (b)    2 or more associated persons;

 

                  (c)    2 or more affiliated corporations.

 

         (2)    Subsection (1) does not apply to money of a pension plan that is held by a financialinstitution to the extent that the money is fully insured by 1 of the following:

 

                  (a)    the Canada Deposit Insurance Corporation;

 

                  (b)    the Canadian Life and Health Insurance Compensation Corporation;

 

                  (c)    a provincial body similar to those listed in clauses (a) and (b) established forthe purpose of providing insurance against loss of deposits with trustcompanies or other financial institutions.

 

         (3)    Subsection (1) does not apply to investments in any of the following:

 

                  (a)    a segregated fund, mutual fund or pooled fund that complies with therequirements in this Schedule applicable to a pension plan;

 

                  (b)    an unallocated general fund of a person authorized to carry on a life insurancebusiness in Canada;

 

                  (c)    an investment corporation, real estate corporation or resource corporation;

 

                  (d)    securities issued or fully guaranteed by the Government of Canada, thegovernment of a province or an agency of either of these;

 

                  (e)    a fund composed of mortgage-backed securities that are fully guaranteed by theGovernment of Canada, the government of a province, or an agency thereof; or

 

                  (f)    a fund that replicates the composition of a widely recognized index of a broadclass of securities traded at a public exchange.

 

Limits on investing—securities of a corporation

10     (1)    Subject to subsection (2), the administrator of a pension plan must not, directly orindirectly, invest the money of the plan in the securities of a corporation to which areattached more than 30 % of the votes that may be cast to elect the directors of thecorporation.

 

         (2)    Subsection (1) does not apply in respect of investments in securities of any of thefollowing:

 

                  (a)    a real estate corporation;

 

                  (b)    a resource corporation;

 

                  (c)    a investment corporation.

 

Limits on investing—securities of real estate corporation

11     (1)    An administrator must not, directly or indirectly, invest a pension plan’s money inthe securities of a real estate corporation to which are attached more than 30% of thevotes that may be cast to elect the directors of the corporation, unless theadministrator first obtains and files an undertaking by the corporation that thecorporation will comply with all of the following while those securities are held:

 

                  (a)    it must file all of the following documents, at the intervals and times directedby the Superintendent:

 

                           (i)     copies of its annual financial statements,

 

                           (ii)    copies of its audited financial statements in respect of each fiscal year ofa pension plan ending after December 31, 1996,

 

                           (iii)   a list clearly identifying its assets and the market value of each asset,

 

                           (iv)   a list of the names of its officers, directors and shareholders,

 

                           (v)    a certificate stating that the corporation is complying with itsundertaking;

 

                  (b)    it must permit the Superintendent or an authorized officer or employee of theSuperintendent’s staff to visit its head office and to examine its books andrecords;

 

                  (c)    it must limit its activities to acquiring, holding, maintaining, improving, leasingor managing real property other than real property that yields petroleum ornatural gas;

 

                  (d)    it must not carry on the activities referred to in clause (c) in respect of any realproperty that is not owned by, or on behalf of, or mortgaged to any of thefollowing:

 

                           (i)     the plan,

 

                           (ii)    the corporation,

 

                           (iii)   another real estate corporation in which securities to which are attachedmore than 30% of the votes that may be cast to elect the directors of thatcorporation have been invested in by, or on behalf of, the pension planunder this subsection,

 

                           (iv)   another real estate corporation in which securities to which are attachedmore than 30% of the votes that may be cast to elect the directors of thatcorporation are owned by the corporation or by a real estate corporationreferred to in subclause (iii);

 

                  (e)    it must procure, at the request of the Superintendent and at its own expense, anappraisal by 1 or more accredited appraisers of any parcel of real propertyowned by it or on its behalf;

 

                  (f)    it must not lend any of its assets to, or invest any of its money in, a relatedparty of the plan;

 

                  (g)    it must restrict its investments and loans to those authorized for the plan underthis Schedule, except for investments in real property or the securities of otherreal estate corporations;

 

                  (h)    it must not invest, or hold an investment, in securities of any other real estatecorporation to which are attached more than 30% of the votes that may be castto elect the directors of that corporation, unless it first obtains and deposits withthe Superintendent an undertaking by the other real estate corporation not toinvest, or hold an investment, in the securities of any other real estatecorporation.

 

         (2)    A list of assets referred to in subclause (1)(a)(iii)

 

                  (a)    must not include any asset, other than an asset referred to in clause (1)(g), thatis not authorized under this Schedule; and

 

                  (b)    must value any securities that are included in the assets of the corporation at avalue that does not exceed their market value.

 

         (3)    Any financial statement of a pension plan filed under subsection 66(2) of theregulations must value the common shares of the real estate corporation held by, oron behalf of, the plan at a value that is not greater than the amount obtained bymultiplying an amount equal to the total assets of the corporation set out in thebalance sheet less the sum of its total liabilities and its preferred capital stock by thenumber of common shares of the corporation held by, or on behalf of, the plandivided by the total number of the issued and outstanding common shares of thecorporation.

 

Limits on investing—securities of resource corporation

12     (1)    An administrator must not, directly or indirectly, invest a pension plan’s money inthe securities of a resource corporation to which are attached more than 30% of thevotes that may be cast to elect the directors of the corporation, unless theadministrator first obtains and files an undertaking by the corporation that thecorporation will comply with all of the following while those securities are held:

 

                  (a)    it must file all of the following documents, at the intervals and times directedby the Superintendent:

 

                           (i)     copies of its annual financial statements,

 

                           (ii)    copies of its audited financial statements in respect of fiscal years of theplan ending after December 31, 1996,

 

                           (iii)   a list clearly identifying its assets and the market value of each asset,

 

                           (iv)   a list of the names of its officers, directors and shareholders,

 

                           (v)    a certificate stating that the corporation is complying with itsundertaking;

 

                  (b)    it must permit the Superintendent or an authorized officer or employee of theSuperintendent’s staff to visit its head office and to examine its books andrecords;

 

                  (c)    it must limit its activities to acquiring, holding, exploring, developing,maintaining, improving, managing, operating or disposing of Canadianresource properties;

 

                  (d)    it must not carry on the activities referred to in clause (c) in respect of anyCanadian resource property that is not owned by, or on behalf of, any of thefollowing:

 

                           (i)     the plan,

 

                           (ii)    the corporation,

 

                           (iii)   another resource corporation in which securities to which are attachedmore than 30% of the votes that may be cast to elect the directors of thatcorporation have been invested in by, or on behalf of, the pension planunder this subsection,

 

                           (iv)   another resource corporation in which securities to which are attachedmore than 30% of the votes that may be cast to elect the directors of thatcorporation are owned by the corporation or by a resource corporationreferred to in subclause (iii);

 

                  (e)    it must procure, at the request of the Superintendent and at its own expense, anappraisal by 1 or more accredited appraisers of any Canadian resource propertyowned by it;

 

                  (f)    it must not lend any of its assets to, or invest any of its moneys in, a relatedparty of the plan;

 

                  (g)    it must restrict its investments and loans to investments and loans authorizedfor the pension plan under this Schedule, except for the following:

 

                           (i)     investments in Canadian resource properties or properties to be used inconnection with Canadian resource properties owned by it,

 

                           (ii)    loans secured by Canadian resource properties to persons resident inCanada for the exploration or development of such properties,

 

                           (iii)   investments in the securities of other resource corporations;

 

                  (h)    it must not borrow money other than for the purpose of earning income fromCanadian resource properties;

 

                  (i)     it must not invest, or hold an investment, in securities of any other resourcecorporation to which are attached more than 30% of the votes that may be castto elect the directors of that corporation, unless the corporation first obtains anddeposits with the Superintendent an undertaking by the other resourcecorporation not to invest, or hold an investment, in the securities of any otherresource corporation.

 

         (2)    A list of assets referred to in subclause (1)(a)(iii)

 

                  (a)    must not include any asset, other than an asset referred to in clause (1)(g), thatis not authorized under this Schedule; and

 

                  (b)    must value any securities that are included in the assets of the corporation at avalue that does not exceed their market value.

 

         (3)    Any financial statement of pension plan filed under subsection 67(1) of theregulations must value the common shares of the resource corporation held by, or onbehalf of, the plan at a value not greater than the amount obtained by multiplying anamount equal to the total assets of the corporation set out in the balance sheet lessthe sum of its liabilities and its preferred capital stock by the number of commonshares of the corporation held by, or on behalf of, the plan divided by the totalnumber of the issued and outstanding common shares of the corporation.

 

Limits on investing—securities of investment corporation

13     An administrator must not, directly or indirectly, invest a pension plan’s money in thesecurities of an investment corporation to which are attached more than 30% of the votesthat may be cast to elect the directors of the corporation, unless the administrator firstobtains and files an undertaking by the corporation that the corporation will comply withall of the following while those securities are held:

 

                  (a)    it must file all of the following documents, at the intervals and times directedby the Superintendent:

 

                           (i)     copies of its annual financial statements,

 

                           (ii)    copies of its audited financial statements in respect of fiscal years of theplan ending after December 31, 1996,

 

                           (iii)   a list clearly identifying its assets and the market value of each asset,

 

                           (iv)   a list of the names of its officers, directors and shareholders,

 

                           (v)    a certificate stating that the corporation is complying with itsundertaking;

 

                  (b)    it must permit the Superintendent or an authorized officer or employee of theSuperintendent’s staff to visit its head office and to examine its books andrecords;

 

                  (c)    it must hold at least 98% of its assets in cash, investments and loans;

 

                  (d)    it must not issue debt obligations;

 

                  (e)    it must obtain at least 98% of its income from investments and loans;

 

                  (f)    it must not lend any of its assets to, or invest any of its moneys in, a relatedparty of the plan;

 

                  (g)    it must not invest, or hold an investment, in securities of any other investmentcorporation if there are attached to those securities more than 30% of the votesthat may be cast to elect the directors of that corporation, unless the corporationfirst obtains and deposits with the Superintendent an undertaking by the otherinvestment corporation not to invest, or hold an investment, in the securities ofany other investment corporation.

 

Transactions for the purposes of Sections 15 and 16 of Schedule

14     In this Section and Sections 15 and 16 of this Schedule,

 

“related party” includes, in relation to a transaction, any person who anadministrator, or any person acting on the administrator’s behalf, knows will becomea related party to the pension plan after the transaction occurs;

 

“transaction” includes the fulfilment of an obligation under the terms of atransaction, including the payment of interest on a loan or deposit, and for greatercertainty is not considered a separate transaction.

 

Prohibited related party investments and transactions

15     Except as provided in Section 16 of this Schedule or exempted under subsection 8(2) ofthis Schedule, an administrator must not

 

                  (a)    at any time, directly or indirectly,

 

                           (i)     lend the pension plan’s money to a related party or invest the money inthe securities of a related party, or

 

                           (ii)    enter into a transaction with a related party on behalf of the plan;

 

                  (b)    during a period of 12 months after the date that a person ceases to be a relatedparty of a pension plan, directly or indirectly,

 

                           (i)     lend the plan’s money to that person or invest the money in the securitiesof that person, or

 

                           (ii)    enter into a transaction with that person on behalf of the plan.

 

Permitted related party investments and transactions

16     (1)    An administrator may enter into a transaction with a related party on behalf of apension plan if the transaction meets 1 of the following conditions:

 

                  (a)    the transaction is required for the operation or administration of the plan andthe terms and conditions of the transaction are not less favourable to the planthan market terms and conditions;

 

                  (b)    the value of the transaction is nominal or the transaction is immaterial to theplan.

 

         (2)    An administrator may invest a pension plan’s money in the securities of a relatedparty if those securities are acquired at a public exchange.

 

         (3)    For the purposes of clause (1)(b) of this Schedule, in assessing whether the value of atransaction is nominal or whether a transaction is immaterial, 2 or more transactionswith the same related party must be considered as a single transaction.

 

Schedule 2: Letters of Credit

(Pension Benefits Regulations)

 

Note: This document is Schedule 2 to the Pension Benefits Regulations (Nova Scotia). It formspart of the regulations and must be read, construed and interpreted in conjunction with thePension Benefits Act and its regulations.

 

Definitions for this Schedule

1       In this Schedule,

 

“Act” means the Pension Benefits Act;

 

“federal Income Tax Act” means the Income Tax Act (Canada) and, unless specifiedotherwise, includes the regulations made under that Act;

 

“regulations” means the Pension Benefits Regulations made under the Act;

 

“Superintendent” means the Superintendent of Pensions, as defined in the Act.

 

Letters of credit—criteria

2       A letter of credit must be an irrevocable and unconditional standby letter of credit made inaccordance with the rules set out in International Standby Practices (ISP98), published bythe International Chamber of Commerce and issued as publication No. 590, and must meetall of the following conditions:

 

                  (a)    it must be made payable to the trustee of the pension fund, in trust for thepension fund;

 

                  (b)    it must be payable in Canadian currency;

 

                  (c)    it must make the issuer contractually liable to pay out money under its terms ifpayment is demanded under it by the trustee of the pension fund;

 

                  (d)    it must be subject to a trust agreement between the issuer, the administrator ofthe pension plan and the trustee of the pension fund, that includes the mattersrequired by Section 6 of this Schedule.

 

Providing copy of trust agreement

3       An administrator must give a copy of a trust agreement required by clause 2(d) of thisSchedule to the employer and the Superintendent no later than 10 days after the followingdates:

 

                  (a)    the date it is entered into;

 

                  (b)    the date it is amended.

 

Issuers of letters of credit

4       (1)    An issuer of a letter of credit must be a member of the Canadian PaymentsAssociation and must be 1 of the following

 

                  (a)    a bank as defined in Section 2 of the Bank Act (Canada);

 

                  (b)    a credit union within the meaning of the Credit Union Act;

 

                  (c)    a credit union or caisse populaire incorporated under the laws of any otherprovince of Canada;

 

                  (d)    a cooperative credit society to which the Cooperative Credit Associations Act(Canada) applies.

 

         (2)    An issuer of a letter of credit cannot be the employer or an affiliate of the employerwithin the meaning of the Companies Act.

 

         (3)    An issuer of a letter of credit must have a credit rating, given by a credit ratingagency, that is at least equal to one of the ratings specified in the following tablewhen the letter of credit is issued or renewed:

 

Rating

Credit Rating Agency

A

Dominion Bond Rating Service Limited

A

Fitch Ratings

A2

Moody’s Investors Service

A

Standard & Poor’s Ratings Services

 

Matters that must be included in letter of credit

5       A letter of credit must provide for all of the following matters::

 

                  (a)    Effective date: The date that the letter of credit becomes effective must bespecified. The effective date must not be later than the date that the firstinstalment of the special payments the letter relates to is due, if the letter ofcredit relates to special payments described in clause 99(1)(b) of theregulations.

 

                  (b)    Expiry date: The date that the letter of credit expires must be specified. Theexpiry date must not be later than the first anniversary of the effective date ofthe letter of credit.

 

                  (c)    Demand for payment: When the trustee for the pension fund demandspayment under the letter of credit, the issuer must promptly pay the faceamount of the letter of credit without further inquiry.

 

                  (d)    Assignment: The letter of credit cannot be assigned except by the issuer toanother issuer.

 

                  (e)    Effect of assignment: If the issuer assigns the letter of credit without theconsent of the employer, the issuer who assigned it remains obligated to pay,on demand, an amount demanded under the letter of credit by the trustee of thepension fund.

 

                  (f)    Amendment: The letter of credit cannot be amended except as follows:

 

                           (i)     to reflect a change in the name of the pension plan, the name of theemployer or the name of the administrator,

 

                           (ii)    to reflect a change in the trustee of the pension fund,

 

                           (iii)   to reflect the assignment of the letter of credit to another issuer,

 

                           (iv)   to decrease the amount of the letter of credit in the circumstancespermitted under the regulations,

 

                           (v)    to increase the amount of the letter of credit when it is renewed.

 

                  (g)    Notice of amendment: The issuer is required to give written notice of anyamendment to the employer no later than 5 days after the amendment is made.

 

                  (h)    Effect of change in issuer’s status: If the issuer of the letter of credit ceases tosatisfy any of the requirements set out in Section 2 of this Schedule while theletter of credit is in effect, the issuer remains obligated to pay, on demand, anamount demanded under the letter of credit by the trustee of the pension fund.

 

                  (i)     Effect of employer’s insolvency, etc.: It must provide that the insolvency,liquidation or bankruptcy of the employer has no effect on the rights orobligations of the issuer or the rights or obligations of the trustee of the pensionfund.

 

                  (j)     Notice of non-renewal: It must provide that, if the issuer does not intend torenew the letter of credit, the issuer is required to notify the trustee and theemployer at least 60 days before the letter of credit expires.

 

Matters that must be included in trust agreement

6       (1)    The trust agreement to which a letter of credit is subject must provide for all of thefollowing matters:

 

                  (a)    as required by subsection 77(7) of the Act, that the trustee of the pension fundholds the letter of credit in trust for the pension plan;

 

 

                  (b)    that the trustee is required under the Act and subsection 122(1) of theregulations to demand payment of the amount of the letter of credit if theadministrator notifies the trustee that the letter of credit does not satisfy therequirements of the Act, the regulations or the federal Income Tax Act;

 

                  (c)    that the trustee is required under the Act and regulations to demand payment ofthe amount of the letter of credit if the administrator or the employer notifiesthe trustee of any of the following:

 

                           (i)     that the employer intends to wind-up the pension plan under subsection92(1) of the Act,

 

                           (ii)    that the Superintendent has issued an order under subsection 93(1) of theAct requiring the wind-up of the pension plan,

 

                           (iii)   that the employer is subject to bankruptcy proceedings under theBankruptcy and Insolvency Act (Canada),

 

                           (iv)   that an application or petition has been filed under the Winding-up andRestructuring Act (Canada) by or against the employer;

 

                  (d)    that if the trustee receives notice from a person or entity other than theadministrator or the employer that a circumstance described in clause (c) exists,the trustee is required to notify the administrator, the employer and theSuperintendent;

 

                  (e)    that 31 days after giving notice under clause (d), the trustee is required todemand payment of the amount of the letter of credit unless the administratornotifies the trustee that the circumstance described in clause (c) does not exist;

 

                  (f)    that 14 days before the letter of credit expires, the trustee is required to demandpayment of the amount of the letter of credit unless 1 or more of the followingevents has occurred:

 

                           (i)     the employer has paid into the pension fund an amount equal to theamount of the letter of credit,

 

                           (ii)    the letter of credit has been renewed, in an amount at least equal to theoriginal letter of credit, and the trustee has received the renewal letter ofcredit or notice of the renewal,

 

                           (iii)   the letter of credit is being replaced in an amount at least equal to theoriginal letter of credit, and the trustee has received the replacement letterof credit,

 

                           (iv)   the administrator has notified the trustee that the amount of the letter ofcredit is reduced and the trustee has received all of the followingdocuments:

 

                                    (A)   either a replacement letter of credit in the reduced amount or noticeof the renewal of the current letter of credit in the reduced amount,

 

                                    (B)   either notice that the employer has paid into the pension fund theamount by which the letter of credit is reduced or notice that thepayment is not required because the conditions specified insubsection (2) are satisfied;

 

                  (g)    that if the trustee demands payment of the amount of the letter of credit, thetrustee is required to promptly notify the administrator, the employer and theSuperintendent;

 

                  (h)    that if the issuer does not pay the amount of the letter of credit after the trusteedemands payment, the trustee is required to promptly notify the administrator,the employer and the Superintendent;

 

                  (i)     that the administrator is required to give a copy of the trust agreement to theemployer and the Superintendent no later than 10 days after

 

                           (i)     it is entered into, and

 

                           (ii)    it is amended.

 

         (2)    If the amount of a letter of credit is reduced, an employer is not required to make thepayment referred to in paragraph (1)(f)(iv)(B) if the following equation is true on thedate of the most recently filed or submitted valuation report:

 

T ≥ (SL - SA)

 

in which

 

                  SL =the sum of the solvency liabilities and the solvency liability adjustment

 

SA = the sum of the solvency assets and the amount, which may be positive or

negative, by which the value of the solvency assets are adjusted as a result ofapplying an averaging method that stabilizes short-term fluctuations in themarket value of the plan assets, calculated over a period of not more than 5years

 

                  T =   the present value of the total amount of all letters of credit held in trust for thepension fund after the reduction in the amount of the letter of credit,determined using the same interest rates as those used to determine the amountof the solvency deficiency set out in the report.

  

Schedule 3: Nova Scotia LIRA Addendum

(Pension Benefits Regulations)

 

Note: This document is Schedule 3 to the Pension Benefits Regulations (Nova Scotia). It formspart of the regulations and must be read, construed and interpreted in conjunction with thePension Benefits Act and its regulations.

 

Definitions for this Schedule

1       In this Schedule,

 

“Act” means the Pension Benefits Act;

 

“domestic contract”, as defined in Section 2 of the regulations, means a writtenagreement referred to in, and for the purpose of, Section 74 of the Act that providesfor a division between spouses of any pension benefit, deferred pension or pension,and includes a marriage contract as defined in the Matrimonial Property Act;

 

“federal Income Tax Act”, as defined in Section 2 of the regulations, means theIncome Tax Act(Canada) and, unless specified otherwise, includes the regulationsmade under that Act;

 

“owner” means any of the following persons, as set out in subsection 200(2) of theregulations, who has purchased a LIRA:

 

                           (i)     a former member who is entitled to make a transfer under clause 61(1)(b)of the Act,

 

                           (ii)    a spouse of a person who was a member, and who is entitled to maketransfer under clause 61(1)(b) of the Act,

 

                           (iii)   a person who has previously transferred an amount under clause 61(1)(b)of the Act into a LIRA or LIF,

 

                           (iv)   a person who has previously transferred an amount into a LIRA as aresult of a division of any pension benefit, deferred pension or pensionunder Section 74 of the Act,

 

                           (v)    a spouse who is entitled to transfer a lump sum as a result of a divisionof any pension benefit, deferred pension or pension under Section 74 ofthe Act;

 

“regulations” means the Pension Benefits Regulations made under the Act;

 

“spouse”, as defined in the Act, means either of 2 persons who

 

                           (i)     are married to each other,

 

                           (ii)    are married to each other by a marriage that is voidable and has not beenannulled by a declaration of nullity,

 

                           (iii)   have gone through a form of marriage with each other, in good faith, thatis void and are cohabiting or, if they have ceased to cohabit, havecohabited within the 12-month period immediately preceding the date ofentitlement,

 

                           (iv)   are domestic partners within the meaning of Section 52 of the VitalStatistics Act, or

 

                           (v)    not being married to each other, are cohabiting in a conjugal relationshipwith each other, and have done so continuously for at least

 

                                    (A)   3 years, if either of them is married, or

 

                                    (B)   1 year, if neither of them is married.

 

“Superintendent”, means the Superintendent of Pensions, as defined in the Act;

 

Note Re Requirements of the Pension Benefits Act and Regulations

Prohibitions on transactions from Section 91 of Act

Under Section 91 of the Act, money held in a LIRA must not be commuted or surrendered inwhole or in part except as permitted by this Schedule and the regulations including, withoutlimiting the generality of the foregoing, the following Sections of the regulations:

 

•     Sections 211 through 230, respecting withdrawal in circumstances of financial hardship

•     Section 231, respecting withdrawal in circumstances of considerably shortened lifeexpectancy

•     Section 232, respecting withdrawal in circumstances of non-residency

•     Section 233, respecting withdrawal of small amounts at age 65

•     Section 198, respecting the transfer of an excess amount, as defined in that Section.

Pursuant to subsection 91(2) of the Act, any transaction that contravenes Section 91 of the Actis void.

Value of assets in LIRA subject to division

The value of the assets in a LIRA is subject to division in accordance with all of thefollowing:

 

•     an order of the Supreme Court of Nova Scotia that provides for a division of a pensionbenefit, a deferred pension or a pension under Section 74 of the Act

•     a domestic contract that provides for the division of any pension benefit under Section 74of the Act

•     the regulations

Money held in LIRA

The following requirements are set out in the Pension Benefits Act and are applicable toLIRAs governed by this Schedule:

 

•     Money held in a LIRA must not be assigned, charged, or given as security except aspermitted by subsection 88(3) of the Act or Section 90 of the Act, and any transactionpurporting to assign, charge, anticipate or give the money in the LIRA as security is void.

•     Money held in a LIRA is exempt from execution, seizure or attachment except for thepurpose of enforcing a maintenance order as permitted by Section 90 of the Act.

 

Transferring assets from LIRAs

2       (1)    An owner of a LIRA may transfer all or part of the assets in the LIRA to any of thefollowing:

 

                  (a)    the pension fund of a pension plan registered under the pension benefitslegislation in any Canadian jurisdiction or to the pension fund of a pensionplan provided by a government in Canada;

 

                  (b)    a LIRA held by another financial institution;

 

                  (c)    a LIF;

 

                  (d)    a life annuity.

 

         (2)    The date of a transfer under subsection (1) must not be later than 30 days after theowner requests it, unless any of the following apply:

 

                  (a)    the financial institution providing the LIRA does not have all the informationnecessary to complete the transaction, in which case the 30-day period beginsto run from the date the financial institution has all the necessary information;

 

                  (b)    the transfer is in respect of assets held as securities whose term of investmentextends beyond the 30-day period.

 

         (3)    If assets in a LIRA consist of identifiable and transferable securities, the financialinstitution providing the LIRA may transfer the securities with the consent of theowner of the LIRA.

 

         (4)    A financial institution providing a LIRA must advise the financial institution towhich the assets of the LIRA are transferred

 

                  (a)    that the assets were held in a LIRA in the current year; and

 

                  (b)    whether the assets were determined in a manner that differentiated on the basisof sex.

 

Information to be provided by financial institution on transfers of assets of LIRAs

3       If the assets in a LIRA are transferred, the financial institution providing the LIRA mustgive the owner the information required by Section 4 of this Schedule, determined as ofthe date of the transfer.

 

Information to be provided annually by financial institution

4       At the beginning of each fiscal year of a LIRA, a financial institution providing the LIRAmust provide all of the following information to the owner about their LIRA as of the endof the previous fiscal year:

 

                  (a)    with respect to the previous fiscal year,

 

                           (i)     the sums deposited,

 

                           (ii)    any accumulated investment earnings, including any unrealized capitalgains or losses,

 

                           (iii)   the payments made out of the LIRA,

 

                           (iv)   any withdrawals from the LIRA,

 

                           (v)    the fees charged against the LIRA;

 

                  (b)    the value of the assets in the LIRA at the beginning of the fiscal year of theLIRA.

 

Death benefits

5       (1)    If the owner of a LIRA dies, the following are entitled to receive a benefit equal tothe value of the assets in the LIRA, subject to subsections (4) and (5):

 

                  (a)    the owner’s spouse;

 

                  (b)    if there is no spouse or if the spouse is disentitled under subsection (4) or (5),the owner’s named beneficiary;

 

                  (c)    if there is no named beneficiary, the personal representative of the owner’sestate.

 

         (2)    For the purposes of subsection (1), a determination as to whether an owner of aLIRA has a spouse must be made as of the date the owner dies.

 

         (3)    For the purposes of subsection (1), the value of the assets in a LIRA includes allaccumulated investment earnings, including any unrealized capital gains and losses,of the LIRA from the date of death until the date of payment.

 

         (4)    A spouse is not entitled to receive the value of the assets in a LIRA under clause(1)(a) if the owner of the LIRA was not a member or former member of a pensionplan from which the assets were transferred, directly or indirectly, to purchase theLIRA.

 

         (5)    A spouse who is living separate and apart from the owner of a LIRA without areasonable prospect of resuming cohabitation on the date the owner dies is notentitled to receive the value of the assets in the LIRA under clause (1)(a) if any of thefollowing conditions apply:

 

                  (a)    the spouse delivered a written waiver to the financial institution in accordancewith Section 6 of this Schedule;

 

                  (b)    the spouse is not entitled to receive any amount in respect of the assets in theLIRA in accordance with the terms of a domestic contract that provides for thedivision of any pension benefit, deferred pension or pension under Section 74of the Act;

 

                  (c)    the spouse is not entitled to receive any amount in respect of the assets in theLIRA in accordance with a court order respecting a division of a pensionbenefit, deferred pension or pension under Section 74 of the Act.

 

         (6)    The benefit described in subsection (1) may be transferred to a registered retirementsavings arrangement in accordance with the federal Income Tax Act.

 

Waiver of entitlement to death benefits by spouse

6       (1)    A spouse of an owner of a LIRA may waive their entitlement to receive a benefitdescribed in Section 5 of this Schedule from the LIRA, by delivering, any timebefore the death of the owner, a written waiver in an approved form to the financialinstitution providing the LIRA.

 

         (2)    A spouse who delivers a waiver under subsection (1) may cancel it by delivering awritten and signed notice of cancellation to the financial institution before the datethe owner of the LIRA dies.

 

Information to be provided by financial institution on death of owner

7       If the owner of LIRA dies, the financial institution providing the LIRA must give theinformation required by Section 4 of this Schedule, determined as of the date of theowner’s death, to any person who is entitled to receive the assets in the LIRA undersubsection 5(1) of this Schedule.

Schedule 4: Nova Scotia LIF Addendum

(Pension Benefits Regulations)

 

Note: This document is Schedule 4 to the Pension Benefits Regulations (Nova Scotia). It formspart of the regulations and must be read, construed and interpreted in conjunction with the Pension Benefits Act and its regulations.

 

Definitions for this Schedule

1       In this Schedule,

 

“Act” means the Pension Benefits Act;

 

“domestic contract”, as defined in Section 2 of the regulations, means a writtenagreement referred to in, and for the purpose of Section 74 of the Act that providesfor a division between spouses of any pension benefit, deferred pension or pensionand includes a marriage contract as defined in the Matrimonial Property Act;

 

“federal Income Tax Act”, as defined in Section 2 of the regulations, means theIncome Tax Act (Canada) and, unless specified otherwise, includes the regulationsmade under that Act;

 

“owner” means any of the following persons, as set out in subsection 205(2) of theregulations, who has purchased a LIF:

 

                           (i)     a former member who is entitled to make a transfer under clause 61(1)(b)of the Act,

 

                           (ii)    a spouse of a person who was a member, and who is entitled to make atransfer under clause 61(1)(b) of the Act,

 

                           (iii)   a person who has previously transferred an amount under clause 61(1)(b)of the Act into a LIRA or LIF,

 

                           (iv)   a person who has previously transferred an amount into a LIF as a resultof a division of any pension benefit, deferred pension or pension underSection 74 of the Act,

 

                           (v)    a spouse who is entitled to transfer a lump sum as a result of a divisionof any pension benefit, deferred pension or pension under Section 74 ofthe Act;

 

“regulations” means the Pension Benefits Regulations made under the Act;

 

“spouse”, as defined in the Act, means either of 2 persons who

 

                           (i)     are married to each other,

 

                           (ii)    are married to each other by a marriage that is voidable and has not beenannulled by a declaration of nullity,

 

                           (iii)   have gone through a form of marriage with each other, in good faith, thatis void and are cohabiting or, if they have ceased to cohabit, havecohabited within the 12-month period immediately preceding the date ofentitlement, and

 

                           (iv)   are domestic partners within the meaning of Section 52 of the VitalStatistics Act, or

 

                           (v)    not being married to each other, are cohabiting in a conjugal relationshipwith each other, and have done so continuously for at least

 

                                    (A)   3 years, if either of them is married, or

 

                                    (B)   1 year, if neither of them is married;

 

“temporary income” means income payments from a LIF that, in accordance withSection 9 of this Schedule, are paid to an owner before they turn 65 years old;

 

“Superintendent” means the Superintendent of Pensions, as defined in the Act.

 

Fiscal year of LIFs

2       (1)    In this Schedule, “fiscal year” means the fiscal year of a LIF.

 

         (2)    A fiscal year must end on December 31 and must not be longer than 12 months.

 

Reference rate criteria

3       A reference rate in this Schedule for a fiscal year must meet all of the following criteria:

 

                  (a)    it must be based on the month-end nominal rate of interest earned on long-termbonds issued by the Government of Canada for November of the yearimmediately before the beginning of the fiscal year, as compiled by StatisticsCanada and published in the Bank of Canada Review as CANSIM SeriesV122487, with the following adjustments applied successively to that nominalrate:

 

                           (i)     an increase of 0.5%,

 

                           (ii)    the conversion of the increased rate, based on interest compounded semi-annually, to an effective annual rate of interest,

 

                           (iii)   the rounding of the effective interest rate to the nearest multiple of 0.5%;

 

                  (b)    it must not be less than 6%.

 

Note Re Requirements of the Pension Benefits Act and Regulations

Prohibitions on transactions from Section 91 of Act

Under Section 91 of the Act, money held in a LIF must not be commuted or surrendered inwhole or in part except as permitted by this Schedule and the regulations including, withoutlimiting the generality of the foregoing, the following Sections of the regulations:

 

•     Sections 211 through 230, respecting withdrawal in circumstances of financial hardship

•     Section 231, respecting withdrawal in circumstances of considerably shortened lifeexpectancy

•     Section 232, respecting withdrawal in circumstances of non-residency

•     Section 233, respecting withdrawal of small amounts at age 65

•     Section 198, respecting the transfer of an excess amount, as defined in that Section.

Pursuant to subsection 91(2) of the Act, any transaction that contravenes Section 91 of the Actis void.

Values of assets in LIFs subject to division

The value of the assets in a LIF is subject to division in accordance with all of the following:

 

•     an order of the Supreme Court of Nova Scotia that provides for the division of anypension benefits under Section 74 of the Act

•     a domestic contract that provides for the division of any pension benefit, deferred pensionor pension under Section 74 of the Act

•     the regulations

Money held in LIFs

The following requirements are set out in the Pension Benefits Act and are applicable to LIFsgoverned by this Schedule:

 

•     Money held in a LIF must not be assigned, charged, or given as security except aspermitted by subsection 88(3) of the Act or Section 90 of the Act, and any transactionpurporting to assign, charge, anticipate or give the money in the LIF as security is void.

•     Money held in a LIF is exempt from execution, seizure or attachment except for thepurpose of enforcing a maintenance order as permitted by Section 90 of the Act.

 

Periodic payments of income out of LIFs

4       (1)    An owner must be paid an income from their LIF, the amount of which may vary,annually.

 

         (2)    Income payments from a LIF must begin no earlier than

 

                  (a)    the earliest date that the owner would have been entitled to receive a pensionunder any pension plan from which the money was transferred; or

 

                  (b)    if all of the money in a LIF is derived from sources other than a pension benefitprovided in respect of any employment of the owner, the date the owner turns55 years old.

 

         (3)    Income payments from a LIF must begin no later than the end of a LIF’s 2nd fiscalyear.

 

Amount of income payments from LIFs

5       (1)    Subject to the minimum amount in Section 6 of this Schedule, an owner of a LIFmust establish the amount of income to be paid during each fiscal year at thebeginning of the fiscal year and after they have received the information required bySection 14 of this Schedule.

 

         (2)    Except as provided in subsection (5), an owner of a LIF must notify the financialinstitution providing the LIF of the amount to be paid out of the LIF each year andany owner who does not do so is deemed to have selected the minimum amountdetermined under Section 6 of this Schedule.

 

         (3)    The owner’s notice required by subsection (2) must be given either

 

                  (a)    except as provided in subsection (5), at the beginning of the fiscal year;

 

                  (b)    at a time agreed to by the financial institution providing the LIF.

 

         (4)    The owner’s notice required by subsection (2) expires at the end of the fiscal year towhich it relates.

 

         (5)    If a financial institution providing a LIF guarantees the rate of return of the LIF overa period that is greater than 1 year, the period must end at the end of a fiscal year andthe owner may establish the amount of income to be paid during the period at thebeginning of the period.

 

Minimum annual LIF withdrawal

6       (1)    The amount of income that is paid out of a LIF during a fiscal year must not be lessthan the minimum amount prescribed for a registered retirement income fund by thefederal Income Tax Act, determined on the basis of the owner’s age or the age of theowner’s spouse if the spouse is younger than the owner.

 

         (2)    Despite Sections 7, 8, 10, 11 and 12 of this Schedule, if the minimum amountspecified by subsection (1) is greater than the maximum amount determined underthose Sections for a fiscal year, then the minimum amount under subsection (1) mustbe paid out of the LIF during the fiscal year.

 

Pro-rating amount of withdrawal if initial fiscal year less than 12 months

7       If the initial fiscal year is less than 12 months long, the maximum amount determinedunder Sections 8, 10, 11 and 12 of this Schedule must be adjusted in proportion to thenumber of months in that fiscal year divided by 12, with any part of an incomplete monthcounting as 1 month.

 

Maximum annual life income from LIF that does not provide for temporary income

8       The maximum annual amount of life income to be paid each year from a LIF from whichno temporary income is paid is determined by the following formula:

 

maximum payable = F × B

 

         in which
 
         F =   is the factor in Schedule 5: Life Income Fund—Factor F that corresponds to thereference rate for the fiscal year and the owner’s age at the end of the previous year

 

         B =   the balance of the LIF at the beginning of the fiscal year, increased by any moneytransferred to the LIF after the beginning of that fiscal year and reduced by anymoney transferred from another LIF, to the LIF, in the same year.

 

Withdrawal of temporary income from LIFs

9       (1)    A LIF may provide that the owner is entitled to temporary income in accordancewith this Section and Sections 10 and 11 of this Schedule.

 

         (2)    An owner of a LIF from which temporary income may be paid who is at least 54years old but under 65 years old at the end of the calendar year before the date theyapply, may apply in an approved form to the financial institution that provides a LIFfor payment of temporary income from the LIF.

 

         (3)    Temporary income must not be paid under a LIF

 

                  (a)    before the owner is 55 years old; and

 

                  (b)    after the end of the year in which the owner turns 65 years old.

 

         (4)    Temporary income is not payable if any portion of a payment out of a LIF istransferred to an registered retirement savings plan or a registered retirement incomefund.

 

Maximum temporary income for fiscal year

10     (1)    Except as provided in subsection (2), the maximum temporary income that may bepaid during a fiscal year out of a LIF from which temporary income may be paidmust be the lesser of the following amounts:

 

                  (a)    the amount calculated by the following formula:

 

(50% of the YMPE) - T

 

in which

 

                           YMPE =   the Year’s Maximum Pensionable Earnings for the fiscal year

 

                           T =            the total of temporary income for the owner from a pension plan orfrom other LIFs of the owner for that fiscal year;

 

                  (b)    the amount calculated by the following formula:

 

F × B × D

 

in which

 

                           F =   is the factor in Schedule 5: Life Income Fund—Factor F that correspondsto the reference rate for the fiscal year and the owner’s age at the end ofthe previous year

 

                           B =   the balance of the LIF at the beginning of the fiscal year, increased byany money transferred to the LIF after the beginning of that fiscal yearand reduced by any money transferred from another LIF, to the LIF, inthe same year

 

                           D =   the factor in Schedule 6: Life Income Fund—Temporary Income FactorD that corresponds to the owner’s age at the end of the previous fiscalyear.

 

         (2)    If the amount determined under clause (1)(b) is less than 50% of the Year’sMaximum Pensionable Earnings, then the maximum temporary income paid out of aLIF during a fiscal year must be the lesser of the following amounts:

 

                  (a)    the amount calculated under clause (1)(a);

 

                  (b)    the balance of the LIF at the beginning of the fiscal year, increased by anymoney transferred to the LIF after the beginning of that fiscal year and reducedby any money transferred from another LIF to the LIF in the same year.

 

Maximum life income withdrawal from LIFs

11     The maximum life income to be paid from a LIF from which a temporary income is paidis determined by the following formula, provided that the maximum must not be less thanzero:

 

maximum payable = (F × B) - (Y ÷ D)

 

in which

 

                  F =   the factor in Schedule 5: Life Income Fund—Factor F that corresponds to thereference rate for the fiscal year and the owner’s age at the end of the previousyear

 

                  B =  the balance of the LIF at the beginning of the fiscal year, increased by anymoney transferred to the LIF after the beginning of that fiscal year and reducedby any money transferred from another LIF, to the LIF, in the same year

 

                  Y =  the maximum annual temporary income determined under Section 10 of thisSchedule

 

                  D =  the factor in Schedule 6: Life Income Fund—Temporary Income Factor D thatcorresponds to the owner’s age at the end of the previous year.

 

Maximum annual income payable if financial institution guarantees rate of return of LIFs

12     (1)    If a financial institution that provides a LIF guarantees the rate of return of the LIFover a period greater than 1 year and the owner establishes the amount of income tobe paid during that period, the maximum income that may be paid during each of thefiscal years during the period must be determined at the beginning of each fiscal yearin the period in accordance with this Section.

 

         (2)    For each year after the initial fiscal year, the maximum income to be paid for thefiscal year under a LIF described in subsection (1) is equal to the lesser of thefollowing amounts:

 

                  (a)    the balance of the LIF at the time of payment in that year;

 

                  (b)    the amount determined by the following formula:

 

maximum income = (I × B) ÷ RB

 

in which

 

                           I =    the maximum income determined for the initial fiscal year under Section11 of this Schedule

 

                           B =   the balance of the LIF at the beginning of the fiscal year

 

RB = the reference balance determined at January 1 of the year as calculated

under subsection (3).

 

         (3)    For the formula in clause (2)(b), the reference balance (“RB”) must be calculated bythe following formula:

 

RB = (PRB - I) + ((PRB - I) × RR/100)

 

in which

 

PRB = the reference balance

 

                           (i)     at the beginning of the previous year, or

 

                           (ii)    for the 2nd year of the period, the LIF balance at the beginning of the 1styear of the period

 

                  I =    the maximum income determined for the initial fiscal year

 

RR = the reference rate for the year, if the fiscal year is one of the first 16 fiscal years

of the LIF, or by 6% for any other year.

 

Income in excess of maximum

13     If income paid to an owner under a LIF during a fiscal year exceeds the maximum thatmay be paid, the balance of the LIF must not be reduced by the excess unless the paymentis attributable to incorrect information provided by the owner.

 

Information to be provided annually by financial institution

14     At the beginning of each fiscal year, a financial institution providing a LIF must provideall of the following information to an owner about their LIF:

 

                  (a)    with respect to the previous fiscal year:

 

                           (i)     the sums deposited,

 

                           (ii)    any accumulated investment earnings including any unrealized capitalgains or losses,

 

                           (iii)   the payments made out of the LIF,

 

                           (iv)   any withdrawals from the LIF made under the following circumstances,in accordance with Sections 211 to 230 of the regulations:

 

                                    (A)   a mortgage default circumstance, as defined in clause 212(1)(a) ofthe regulations,

 

                                    (B)   a medical expense circumstance, as defined in clause 212(1)(b) ofthe regulations,

 

                                    (C)   a rental default circumstance, as defined in clause 212(1)(c) of theregulations,

 

                                    (D)   a reduced income circumstance, as defined in clause 212(1)(d) ofthe regulations,

 

                           (v)    any transfers made out of the LIF,

 

                           (vi)   the fees charged against the LIF;

 

                  (b)    the value of the assets in the LIF at the beginning of the fiscal year;

 

                  (c)    the minimum amount that must be paid out as income to the owner during thecurrent fiscal year;

 

                  (d)    the maximum amount that may be paid out as income to the owner during thecurrent fiscal year;

 

                  (e)    for a LIF that provides for temporary income, and the owner was at least 54years old but under 65 years old at the end of the previous year,

 

                           (i)     how the owner may apply for temporary income to be paid to them afterthey turn 55 years old, and

 

                           (ii)    a statement that payment of temporary income will reduce the incomethat would otherwise be paid to the owner after age 65;

 

                  (f)    a statement that the maximum amount of income that may be paid to theowner during the fiscal year will not be increased if assets held in another LIFduring the year are transferred to the LIF;

 

                  (g)    if the beginning of the fiscal year is later than the beginning of the calendaryear, a statement as to whether any sums deposited were held in another LIFduring the year, and the amount of those deposits;

 

                  (h)    a statement that if the owner wishes to transfer the balance of the LIF, in wholeor in part, and still receive the income determined for the fiscal year from theLIF, then an amount must be retained in the LIF that is at least equal to thedifference between the income determined for the fiscal year and the incomealready received from the LIF since the beginning of the fiscal year;

 

                  (i)     a statement that if the owner dies before the balance in the LIF is used topurchase a life annuity contract or is transferred under Section 15 of thisSchedule, then the financial institution must provide the owner’s spouse orbeneficiary or the personal representative of their estate with the information inclauses (a) and (b), determined as of the date the owner died;

 

                  (j)     a statement that if the balance of the LIF is transferred to another financialinstitution or used to purchase a life annuity, then the financial institution mustprovide the owner the information in clauses (a) and (b), determined as of thedate of the transfer or annuity purchase;

 

                  (k)    a statement that if the balance of the LIF is transferred to another financialinstitution or used to purchase a life annuity, then the financial institution mustcomply with Section 209 of the regulations, in accordance with subsection15(6) of this Schedule.

 

Transferring assets from LIFs

15     (1)    An owner of a LIF may transfer all or part of the assets in the LIF as follows:

 

                  (a)    to either of the following:

 

                           (i)     another LIF,

 

                           (ii)    a LIRA held by another financial institution, if permitted under thefederal Income Tax Act;

 

                  (b)    to purchase an immediate life annuity; or

 

                  (c)    for an owner who is a member or former member of a pension plan thatprovides for variable pension benefits, to the owner’s variable benefits accountin accordance with Section 150 of the regulations, if the transfer is permittedby the plan.

Clause 15(1)(c) added: O.I.C. 2015-310, N.S. Reg. 326/2015.

 

         (2)    The date of a transfer under subsection (1) must not be later than 30 days after theowner requests it, unless any of the following apply:

 

                  (a)    the financial institution providing the LIRA does not have all the informationnecessary to complete the transaction, in which case the 30- day period beginsto run from the date the financial institution has all the necessary information;

 

                  (b)    the transfer is in respect of assets held as securities whose term of investmentextends beyond the 30-day period, in which case the 30-day period begins torun from the date the term of investment expires.

 

         (3)    If assets in a LIF consist of identifiable and transferable securities, the financialinstitution providing the LIF may transfer the securities with the consent of theowner.

 

         (4)    If assets held in a LIF are transferred to another LIF at any time in the current fiscalyear, the maximum amount of income that may be paid to the owner of the LIF mustnot be increased.

 

         (5)    A financial institution providing a LIF must advise the financial institution to whichthe assets of the LIF are transferred

 

                  (a)    that the assets were held in a LIF in the current year; and

 

                  

(b)                      whether the assets were determined in a manner that differentiated on the basisof sex.

 

         (6)    If the balance of a LIF is transferred to another financial institution or used topurchase a life annuity, the financial institution providing the LIF must comply withSection 209 of the regulations.

 

Information to be provided by financial institution on transfer of balance of LIFs

16     If the balance of the LIF is transferred to another financial institution or used to purchase alife annuity, the financial institution making the transfer must provide the owner with all ofthe information required to be provided annually under clauses 14(a) to (h) of thisSchedule, determined as of the date of the transfer or annuity purchase.

 

Information to be provided upon transfer of additional amounts to LIFs

17     No later than 30 days after the date that money in locked-in funds that has not been held ina LIF at any time in the current year is transferred to a LIF, the financial institutionproviding the LIF must provide the owner with all of the following information:

 

                  (a)    the information required to be provided annually under clauses 14(a) to (f) ofthis Schedule, determined as of the date of the transfer;

 

                  (b)    the balance of the LIF used to determine the maximum amount that may bepaid to the owner as income during the fiscal year.

 

Death benefits

18     (1)    If the owner of a LIF dies, the following are entitled to receive a benefit equal to thevalue of the assets in the LIF, subject to subsections (4) and (5):

 

                  (a)    the owner’s spouse;

 

                  (b)    if there is no spouse or if the spouse is otherwise disentitled under subsection(4) or (5), the owner’s named beneficiary;

 

                  (c)    if there is no named beneficiary, the personal representative of the owner’sestate.

 

         (2)    For the purposes of subsection (1), a determination as to whether an owner of a LIFhas a spouse must be made as of the date the owner dies.

 

         (3)    For the purposes of subsection (1), the value of the assets in a LIF includes allaccumulated investment earnings, including any unrealized capital gains and losses,of the LIF from the date of death until the date of payment.

 

         (4)    A spouse is not entitled to receive the value of the assets in the LIF under clause(1)(a) if the owner of the LIF was not a member or former member of a pension planfrom which the assets were transferred, directly or indirectly, to purchase the LIF.

 

         (5)    A spouse who is living separate and apart from the owner of a LIF without areasonable prospect of resuming cohabitation on the date the owner dies is notentitled to receive the value of the assets in the LIF under clause (1)(a) if any of thefollowing conditions apply:

 

                  (a)    the spouse delivered a written waiver to the financial institution in accordancewith Section 19 of this Schedule;

 

                  (b)    the spouse is not entitled to receive any amount in respect of the assets in theLIF in accordance with the terms of a domestic contract that provides for thedivision of any pension benefit, deferred pension or pension under Section 74of the Act;

 

                  (c)    the spouse is not entitled to receive any amount in respect of the assets in theLIF, by court order, in accordance with a court order respecting a division of apension benefit, deferred pension or pension under Section 74 of the Act.

 

         (6)    The benefit described in subsection (1) may be transferred to an RRSP or a RRIF inaccordance with the federal Income Tax Act.

 

Waiver of entitlement to death benefits by spouse

19     (1)    A spouse of an owner of a LIF may waive their entitlement to receive a benefitdescribed in Section 18 of this Schedule from the LIF, by delivering, any time beforethe death of the owner, a written waiver in an approved form to the financialinstitution providing the LIF.

 

         (2)    A spouse who delivers a waiver under subsection (1) may cancel it by delivering awritten and signed notice of cancellation to the financial institution before the datethe owner of the LIF dies.

 

Information to be provided by financial institution on death of owner

20     If the owner of a LIF dies before the balance in the LIF is transferred or used to purchase alife annuity contract, the financial institution providing the LIF must give the informationrequired to be provided annually under clauses 14(a) to (g) of this Schedule, determined asof the date of the owner’s death, to any person entitled to receive the assets in the LIFunder subsection 18(1) of this Schedule.

 

Schedule 5: Life Income Fund—Factor F

(Pension Benefits Regulations)

 

Note: This document is Schedule 5 to the Pension Benefits Regulations (Nova Scotia). It forms part of the regulations and must beread, construed and interpreted in conjunction with the Pension Benefits Act and its regulations.

 

This table is used to determine the factor (F) in the formulas in Sections 8, 10 and 11 of Schedule 4: Nova Scotia LIF Addendum. Thereference rate in the column heading is as defined in Section 3 of Schedule 4: Nova Scotia LIF Addendum.

 

 

Age

Reference Rate

6.00%

6.50%

7.00%

7.50%

8.00%

8.50%

9.00%

9.50%

10.00%

10.50%

11.00%

11.50%

12.00%

12.50%

13.00%

13.50%

under55

0.061

0.063

0.066

0.069

0.072

0.075

0.078

0.081

0.084

0.087

0.090

0.093

0.097

0.100

0.103

0.107

55

0.064

0.067

0.070

0.073

0.076

0.079

0.082

0.085

0.088

0.091

0.094

0.097

0.101

0.104

0.107

0.111

56

0.065

0.067

0.070

0.073

0.076

0.079

0.082

0.085

0.088

0.091

0.095

0.098

0.101

0.104

0.108

0.111

57

0.065

0.068

0.071

0.074

0.077

0.080

0.083

0.086

0.089

0.092

0.095

0.098

0.102

0.105

0.108

0.112

58

0.066

0.069

0.071

0.074

0.077

0.080

0.083

0.086

0.090

0.093

0.096

0.099

0.102

0.106

0.109

0.112

59

0.067

0.069

0.072

0.075

0.078

0.081

0.084

0.087

0.090

0.093

0.097

0.100

0.103

0.106

0.110

0.113

60

0.067

0.070

0.073

0.076

0.079

0.082

0.085

0.088

0.091

0.094

0.097

0.101

0.104

0.107

0.110

0.114

61

0.068

0.071

0.074

0.077

0.079

0.082

0.086

0.089

0.092

0.095

0.098

0.101

0.105

0.108

0.111

0.115

62

0.069

0.072

0.074

0.077

0.080

0.083

0.086

0.089

0.093

0.096

0.099

0.102

0.105

0.109

0.112

0.115

63

0.070

0.073

0.075

0.078

0.081

0.084

0.087

0.090

0.094

0.097

0.100

0.103

0.106

0.110

0.113

0.116

64

0.071

0.074

0.076

0.079

0.082

0.085

0.088

0.091

0.095

0.098

0.101

0.104

0.107

0.111

0.114

0.117

65

0.072

0.075

0.077

0.080

0.083

0.086

0.089

0.093

0.096

0.099

0.102

0.105

0.108

0.112

0.115

0.118

66

0.073

0.076

0.079

0.082

0.085

0.088

0.091

0.094

0.097

0.100

0.103

0.106

0.110

0.113

0.116

0.119

67

0.074

0.077

0.080

0.083

0.086

0.089

0.092

0.095

0.098

0.101

0.104

0.108

0.111

0.114

0.117

0.121

68

0.076

0.078

0.081

0.084

0.087

0.090

0.093

0.096

0.100

0.103

0.106

0.109

0.112

0.115

0.119

0.122

69

0.077

0.080

0.083

0.086

0.089

0.092

0.095

0.098

0.101

0.104

0.107

0.111

0.114

0.117

0.120

0.123

70

0.079

0.082

0.085

0.088

0.091

0.094

0.097

0.100

0.103

0.106

0.109

0.112

0.115

0.119

0.122

0.125

71

0.081

0.084

0.087

0.089

0.092

0.095

0.098

0.102

0.105

0.108

0.111

0.114

0.117

0.120

0.123

0.127

72

0.083

0.086

0.089

0.092

0.095

0.098

0.101

0.104

0.107

0.110

0.113

0.116

0.119

0.122

0.125

0.129

73

0.085

0.088

0.091

0.094

0.097

0.100

0.103

0.106

0.109

0.112

0.115

0.118

0.121

0.124

0.127

0.131

74

0.088

0.091

0.094

0.097

0.099

0.102

0.105

0.108

0.111

0.114

0.117

0.120

0.124

0.127

0.130

0.133

75

0.091

0.094

0.097

0.100

0.102

0.105

0.108

0.111

0.114

0.117

0.120

0.123

0.126

0.129

0.132

0.135

76

0.094

0.097

0.100

0.103

0.106

0.109

0.112

0.114

0.117

0.120

0.123

0.126

0.129

0.132

0.135

0.138

77

0.098

0.101

0.104

0.107

0.110

0.112

0.115

0.118

0.121

0.124

0.127

0.130

0.133

0.136

0.139

0.142

78

0.103

0.106

0.109

0.111

0.114

0.117

0.120

0.123

0.126

0.128

0.131

0.134

0.137

0.140

0.143

0.146

79

0.108

0.111

0.114

0.117

0.119

0.122

0.125

0.128

0.131

0.134

0.137

0.139

0.142

0.145

0.148

0.151

80

0.115

0.117

0.120

0.123

0.125

0.128

0.131

0.133

0.136

0.139

0.142

0.144

0.147

0.150

0.153

0.155

81

0.121

0.124

0.127

0.129

0.132

0.135

0.137

0.140

0.143

0.145

0.148

0.151

0.153

0.156

0.159

0.161

82

0.129

0.132

0.134

0.137

0.139

0.142

0.145

0.147

0.150

0.153

0.155

0.158

0.161

0.163

0.166

0.169

83

0.138

0.140

0.143

0.146

0.148

0.151

0.154

0.156

0.159

0.161

0.164

0.167

0.169

0.172

0.175

0.177

84

0.148

0.151

0.153

0.156

0.159

0.161

0.164

0.167

0.169

0.172

0.174

0.177

0.180

0.182

0.185

0.187

85

0.160

0.163

0.165

0.168

0.171

0.173

0.176

0.179

0.181

0.184

0.187

0.189

0.192

0.194

0.197

0.200

86

0.173

0.176

0.179

0.182

0.184

0.187

0.190

0.193

0.195

0.198

0.200

0.200

0.200

0.200

0.200

0.200

87

0.189

0.191

0.194

0.197

0.200

0.200

0.200

0.200

0.200

0.200

0.200

0.200

0.200

0.200

0.200

0.200

88 orover

0.200

0.200

0.200

0.200

0.200

0.200

0.200

0.200

0.200

0.200

0.200

0.200

0.200

0.200

0.200

0.200