Bill 27, Pension Benefits Statute Law Amendment Act, 1999

[37] Bill 27 Royal Assent (PDF)

Bill 27

Bill 271999

An Act to amend the Pension Benefits Act and the MPPs Pension Act, 1996

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Pension Benefits Act

1.(1)Clause 8 (1) (a) of the Pension Benefits Act is repealed and the following substituted:

(a)the employer or, if there is more than one employer, one or more of the employers.

(2)Subsection 8 (1) of the Act is amended by striking out "or" at the end of clause (e), by adding "or" at the end of clause (f) and by adding the following clause:

(g)a person appointed as administrator by the Superintendent under section 71.

2.Subsection 9 (1) of the Act is repealed and the following substituted:

Application for registration

(1)Within the prescribed period of time, the administrator of a pension plan shall apply to the Superintendent for registration of the pension plan.

3.(1)Clause 29 (1) (e) of the Act is repealed.

(2)Subsection 29 (1) of the Act is amended by adding the following clauses:

(g)an employer;

(h)a person required to make contributions under the pension plan on behalf of an employer;

(i)an agent of a person described in any of clauses (a) to (h) who is authorized in writing; or

(j)such other persons as may be prescribed.

4.Section 30 of the Act, as amended by the Statutes of Ontario, 1997, chapter 28, section 196, is repealed and the following substituted:

Inspection of filed documents

30. (1)The administrator of a pension plan and the persons described in subsection 29 (1) are entitled to inspect the following documents at the office of the Superintendent during the business hours of that office:

1.The filed documents that create and support the pension plan and the pension fund.

2.Such other prescribed documents as are filed in respect of the pension plan and the pension fund.

Copies of documents

(2)The Superintendent shall give a person a copy of any document that the person is entitled to inspect under subsection (1) if the person pays the applicable fee established by the Minister.

5.Subsection 39 (5) of the Act is amended by adding the following paragraph:

2.1Benefits that result from voluntary contributions for past service, as defined in the regulations.

6.Section 42 of the Act, as amended by the Statutes of Ontario, 1997, chapter 28, section 197, is further amended by adding the following subsection:

Lump sum payment

(6.1)If the amount of the commuted value of the deferred pension of the former member to be paid into a prescribed retirement savings arrangement under clause (1) (b) is greater than the amount prescribed under the Income Tax Act (Canada) for such a transfer, the administrator shall pay the portion that exceeds the prescribed amount as a lump sum to the former member.

7.Subsections 46 (2) and (3) of the Act are repealed and the following substituted:

Time

(2)The waiver is not effective unless the form or the certified copy of the domestic contract is delivered to the administrator or the insurance company, as the case may be, within the 12 months preceding the commencement of payment of the pension benefit.

Cancellation of waiver

(3)Persons who have delivered a waiver may jointly cancel it by delivering a written and signed notice of cancellation to the administrator or the insurance company, as the case may be, before the commencement of payment of the pension benefit.

8.Subsection 48 (14) of the Act, as amended by the Statutes of Ontario, 1997, chapter 28, section 198, is repealed and the following substituted:

Waiver

(14)The spouse or same-sex partner of a member or former member may waive the spouse's or partner's entitlement under subsection (1) or (2) by delivering a written waiver, in the form approved by the Superintendent, to the administrator of the pension plan.

Cancellation of waiver

(14.1)A spouse or same-sex partner who has delivered a waiver may cancel it by delivering a written and signed notice of cancellation to the administrator before the date of death of the member or former member.

Effect of waiver

(14.2)If a waiver is in effect on the date of death of the member or former member, subsections (6) and (7) apply as if the member or former member does not have a spouse or same-sex partner, as the case may be, on the date of death.

9.Section 49 of the Act is amended by adding the following subsection:

Shortened life expectancy

(2)A pension plan shall be deemed to permit variation in the terms of payment of a pension or deferred pension in such circumstances of shortened life expectancy as may be prescribed, if the prescribed conditions are satisfied.

10.Section 56 of the Act is repealed and the following substituted:

Duty re payment of contributions

56. (1)The administrator of a pension plan and the agent, if any, of the administrator who is responsible for receiving contributions under the pension plan shall ensure that all contributions are paid when due.

Notice

(2)If a contribution is not paid when due, the administrator and the agent, if any, shall notify the Superintendent in the prescribed manner and within the prescribed period.

Duty to pension fund trustees

56.1 (1)The administrator shall give the persons who are prescribed for the purposes of subsection 22 (6) (trustee of pension fund) a summary of the contributions required to be made in respect of the pension plan, and shall do so in the prescribed manner and within the prescribed period.

Notice re summary

(2)A person who is entitled to receive a summary shall notify the Superintendent in the prescribed manner and within the prescribed period if the person is not given the summary in accordance with subsection (1).

Notice re contributions

(3)A person who is entitled to receive a summary shall notify the Superintendent in the prescribed manner and within the prescribed period if a contribution is not paid when due.

11.Section 66 of the Act is amended by adding the following subsection:

Restriction, locked-in retirement account

(6)The entitlement of a person, in his or her discretion, to withdraw money from a locked-in retirement account as defined in the regulations shall not be considered when determining, for the purposes of any other Act, the income or assets available to the person.

12.Section 67 of the Act, as amended by the Statutes of Ontario, 1998, chapter 34, section 91, is further amended by adding the following subsections:

Exception for financial hardship

(5)Despite subsections (1) and (2), upon application, the Superintendent may consent to the commutation or surrender, in whole or in part, of a prescribed retirement savings arrangement of a type that is prescribed for the purposes of this subsection if the Superintendent is satisfied as to the existence of such circumstances of financial hardship as may be prescribed.

Same

(6)The owner of the prescribed retirement savings arrangement may apply in writing to the Superintendent for his or her consent under subsection (5).

Same

(7)The Superintendent's authority to give his or her consent under subsection (5) is subject to such conditions and restrictions as may be prescribed.

13.Section 71 of the Act is amended by adding the following subsection:

Termination

(3)The Superintendent may terminate the appointment of an administrator appointed by him or her if the Superintendent considers it reasonable to do so.

14.(1)Subsection 72 (1) of the Act is repealed and the following substituted:

Notice of entitlement upon wind up

(1)Within the prescribed period of time, the administrator of a pension plan that is to be wound up, in whole or in part, shall give to each person entitled to a pension, deferred pension or other benefit or to a refund in respect of the pension plan a statement setting out the person's entitlement under the plan, the options available to the person and such other information as may be prescribed.

(2)Subsection 72 (2) of the Act is amended by striking out "and the administrator of the pension plan shall make payment in accordance with the election or deemed election" at the end.

(3)Section 72 of the Act is amended by adding the following subsection:

Payment

(3)Within the prescribed period of time, the administrator shall make payment in accordance with the election or deemed election.

15.Clause 88 (2) (b) of the Act is repealed and the following substituted:

(b)that the assumptions or methods used in the preparation of a report required under this Act or the regulations in respect of a pension plan are not consistent with accepted actuarial practice; or

. . . . .

16.The Act is amended by adding the following section:

Agreements governing multi-jurisdictional pension plans

93.(1)In this section, "

multi-jurisdictional pension plan" means a pension plan to which this Act and the regulations apply and to which pension benefits legislation of one or more prescribed jurisdictions in Canada also applies.

Authority for agreements

(2)With the approval of the Lieutenant Governor in Council, the Minister may enter into one or more agreements described in subsection (3) with the government of a prescribed jurisdiction in Canada, with a government agency of such a jurisdiction or with another person who has supervisory or regulatory powers under pension benefits legislation of such a jurisdiction.

Same

(3)An agreement may provide for matters relating to the application of this Act and the regulations to multi-jurisdictional pension plans, the application of pension benefits legislation of a prescribed jurisdiction in Canada to such pension plans and the supervision and regulation of such pension plans.

Same

(4)Without limiting the generality of subsection (3), an agreement may provide for,

(a)matters respecting the administration and enforcement of this Act and the regulations and of the pension benefits legislation of a prescribed jurisdiction in Canada;

(b)the delegation of any powers and duties of the Superintendent under this Act and the regulations to a person who has supervisory or regulatory powers under pension benefits legislation of a prescribed jurisdiction;

(c)the delegation to the Superintendent of any powers and duties under pension benefits legislation of a prescribed jurisdiction of a person who has supervisory or regulatory powers under that legislation.

Effect of agreement

(5)If an agreement specifies that the pension benefits legislation of a prescribed jurisdiction in Canada governs multi-jurisdictional pension plans instead of all or part of this Act and the regulations,

(a)this Act and the regulations cease to apply to the multi-jurisdictional pension plans to the extent specified in the agreement; and

(b)the pension benefits legislation of the prescribed jurisdiction applies, in lieu of this Act and the regulations, to the multi-jurisdictional pension plans to the extent and in the manner specified in the agreement.

Termination of agreement

(6)Subsection (5) ceases to apply if the Minister ceases to be a party to the agreement.

Publication of agreements

(7)The Minister shall publish each agreement and any amendments to an agreement in The Ontario Gazette.

Effective date

(8)An agreement or an amendment to an agreement does not come into effect in Ontario until the date on which it is published in The Ontario Gazette or the date specified in the agreement or the amendment, whichever date is later.

Inspection

(9)The Superintendent shall make a copy of each agreement and any amendments to an agreement available for inspection by the public upon request.

Status of agreements

(10)An agreement and any amendment to an agreement is not a regulation within the meaning of the Regulations Act.

Delegation to the Superintendent

(11)The Superintendent may accept a delegation described in clause (4) (c).

17.Subsection 95 (2) of the Act is repealed and the following substituted:

Same

(2)Without limiting the generality of subsection (1), an agreement may provide for,

(a)the delegation of any powers and duties of the Superintendent under this Act and the regulations to a pension supervisory authority or the government of a designated province;

(b)the delegation to the Superintendent of any powers and duties of a pension supervisory authority or of the government of a designated province under pension benefits legislation.

Delegation to the Superintendent

(3)The Superintendent may accept a delegation described in clause (2) (b).

18.Section 106 of the Act, as amended by the Statutes of Ontario, 1997, chapter 28, section 219, is further amended by adding the following subsections:

Opinion, report, etc.

(12)The Superintendent may require a person exercising power under this section to prepare an opinion, report or professional attestation about the results of any examination, investigation or inquiry made by the person under this section.

Cost of examination, etc.

(13)The Superintendent may order any person to pay all or part of the cost of an examination, investigation or inquiry under this section and to pay all or part of the cost of any opinion, report or professional attestation prepared following such an examination, investigation or inquiry (whether or not the opinion, report or attestation was required by the Superintendent), if the Superintendent considers it to be reasonable and fair in the circumstances to do so.

Same

(14)Without limiting the generality of subsection (13), an administrator or employer may be required to make a payment under that subsection.

19.The Act is amended by adding the following section:

Payment for reports

106.1The Superintendent may order an administrator, an employer or any other person to pay all or part of the cost of preparing any report required by this Act or the regulations, if the Superintendent considers it to be reasonable and fair in the circumstances to do so.

MPPs Pension Act, 1996

20.(1)Subsection 21 (4) of the MPPs Pension Act, 1996 is repealed.

(2)Section 21 of the Act is amended by adding the following subsections:

Amendment, locked-in retirement account

(7)An individual described in subsection (1) who has entered into a contract to establish a locked-in retirement account is entitled to require that the contract be amended, despite any other term of the contract,

(a)if the person who is the individual's spouse or same-sex partner when the amendment is required to be made consents in writing to the amendment; and

(b)if the contract, as it would be amended, complies with subsection (5) and meets the requirements established under the Income Tax Act (Canada) for a registered retirement savings plan or a registered retirement income fund, as those expressions are defined in that Act.

Same, life income fund

(8)An individual described in subsection (1) who, by the exercise of rights under a contract entered into to establish a locked-in retirement account, has entered into a contract to establish a life income fund is entitled to require that the life income fund contract be amended, despite any other term of the contract,

(a)if the person who is the individual's spouse or same-sex partner when the amendment is required to be made consents in writing to the amendment; and

(b)if the life income fund contract, as it would be amended, complies with subsection (5) and meets the requirements established under the Income Tax Act (Canada) for a registered retirement savings plan or a registered retirement income fund, as those expressions are defined in that Act.

Amendment required

(9)The parties to the contract to establish the locked-in retirement account or life income fund, as the case may be, that is to be amended in accordance with subsection (7) or (8) shall promptly make the amendment.

Effect of amendment

(10)When the contract is amended as required by subsection (9), the locked-in retirement account or life income fund ceases to be such an account or fund.

Definitions

(11)In subsections (7) to (10), "

life income fund" means a life income fund that was established before the Pension Benefits Statute Law Amendment Act, 1999 received Royal Assent and that, when the fund was established, was described in Schedule 1 to Regulation 909 (``General") made under the Pension Benefits Act as the Schedule then read; ("fonds de revenu viager") "

locked-in retirement account" means a locked-in retirement account that was established before the Pension Benefits Statute Law Amendment Act, 1999 received Royal Assent and that, when the account was established, was intended to comply with this section as it then read. ("compte de retraite avec immobilisation des fonds")

21.Subsection 27 (2) of the Act is amended by striking out "when he or she ceases to be a member" at the end and substituting "when the pension is purchased".

Commencement and Short Title

Commencement

22.(1)Subject to subsection (2), this Act comes into force on the day it receives Royal Assent.

Same

(2)Sections 1 to 19 come into force on a day to be named by proclamation of the Lieutenant Governor.

Short title

23.The short title of this Act is the Pension Benefits Statute Law Amendment Act, 1999.

[37] Bill 27 Original (PDF)

Bill 27

Bill 271999

An Act to amend the Pension Benefits Act and the MPPs Pension Act, 1996

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Pension Benefits Act

1.(1)Clause 8 (1) (a) of the Pension Benefits Act is repealed and the following substituted:

(a)the employer or, if there is more than one employer, one or more of the employers.

(2)Subsection 8 (1) of the Act is amended by striking out "or" at the end of clause (e), by adding "or" at the end of clause (f) and by adding the following clause:

(g)a person appointed as administrator by the Superintendent under section 71.

2.Subsection 9 (1) of the Act is repealed and the following substituted:

Application for registration

(1)Within the prescribed period of time, the administrator of a pension plan shall apply to the Superintendent for registration of the pension plan.

3.(1)Clause 29 (1) (e) of the Act is repealed.

(2)Subsection 29 (1) of the Act is amended by adding the following clauses:

(g)an employer;

(h)a person required to make contributions under the pension plan on behalf of an employer;

(i)an agent of a person described in any of clauses (a) to (h) who is authorized in writing; or

(j)such other persons as may be prescribed.

4.Section 30 of the Act, as amended by the Statutes of Ontario, 1997, chapter 28, section 196, is repealed and the following substituted:

Inspection of filed documents

30. (1)The administrator of a pension plan and the persons described in subsection 29 (1) are entitled to inspect the following documents at the office of the Superintendent during the business hours of that office:

1.The filed documents that create and support the pension plan and the pension fund.

2.Such other prescribed documents as are filed in respect of the pension plan and the pension fund.

Copies of documents

(2)The Superintendent shall give a person a copy of any document that the person is entitled to inspect under subsection (1) if the person pays the applicable fee established by the Minister.

5.Subsection 39 (5) of the Act is amended by adding the following paragraph:

2.1Benefits that result from voluntary contributions for past service, as defined in the regulations.

6.Section 42 of the Act, as amended by the Statutes of Ontario, 1997, chapter 28, section 197, is further amended by adding the following subsection:

Lump sum payment

(6.1)If the amount of the commuted value of the deferred pension of the former member to be paid into a prescribed retirement savings arrangement under clause (1) (b) is greater than the amount prescribed under the Income Tax Act (Canada) for such a transfer, the administrator shall pay the portion that exceeds the prescribed amount as a lump sum to the former member.

7.Subsections 46 (2) and (3) of the Act are repealed and the following substituted:

Time

(2)The waiver is not effective unless the form or the certified copy of the domestic contract is delivered to the administrator or the insurance company, as the case may be, within the 12 months preceding the commencement of payment of the pension benefit.

Cancellation of waiver

(3)Persons who have delivered a waiver may jointly cancel it by delivering a written and signed notice of cancellation to the administrator or the insurance company, as the case may be, before the commencement of payment of the pension benefit.

8.Subsection 48 (14) of the Act, as amended by the Statutes of Ontario, 1997, chapter 28, section 198, is repealed and the following substituted:

Waiver

(14)The spouse or same-sex partner of a member or former member may waive the spouse's or partner's entitlement under subsection (1) or (2) by delivering a written waiver, in the form approved by the Superintendent, to the administrator of the pension plan.

Cancellation of waiver

(14.1)A spouse or same-sex partner who has delivered a waiver may cancel it by delivering a written and signed notice of cancellation to the administrator before the date of death of the member or former member.

Effect of waiver

(14.2)If a waiver is in effect on the date of death of the member or former member, subsections (6) and (7) apply as if the member or former member does not have a spouse or same-sex partner, as the case may be, on the date of death.

9.Section 49 of the Act is amended by adding the following subsection:

Shortened life expectancy

(2)A pension plan shall be deemed to permit variation in the terms of payment of a pension or deferred pension in such circumstances of shortened life expectancy as may be prescribed, if the prescribed conditions are satisfied.

10.Section 56 of the Act is repealed and the following substituted:

Duty re payment of contributions

56. (1)The administrator of a pension plan and the agent, if any, of the administrator who is responsible for receiving contributions under the pension plan shall ensure that all contributions are paid when due.

Notice

(2)If a contribution is not paid when due, the administrator and the agent, if any, shall notify the Superintendent in the prescribed manner and within the prescribed period.

Duty to pension fund trustees

56.1 (1)The administrator shall give the persons who are prescribed for the purposes of subsection 22 (6) (trustee of pension fund) a summary of the contributions required to be made in respect of the pension plan, and shall do so in the prescribed manner and within the prescribed period.

Notice re summary

(2)A person who is entitled to receive a summary shall notify the Superintendent in the prescribed manner and within the prescribed period if the person is not given the summary in accordance with subsection (1).

Notice re contributions

(3)A person who is entitled to receive a summary shall notify the Superintendent in the prescribed manner and within the prescribed period if a contribution is not paid when due.

11.Section 66 of the Act is amended by adding the following subsection:

Restriction, locked-in retirement account

(6)The entitlement of a person, in his or her discretion, to withdraw money from a locked-in retirement account as defined in the regulations shall not be considered when determining, for the purposes of any other Act, the income or assets available to the person.

12.Section 67 of the Act, as amended by the Statutes of Ontario, 1998, chapter 34, section 91, is further amended by adding the following subsections:

Exception for financial hardship

(5)Despite subsections (1) and (2), upon application, the Superintendent may consent to the commutation or surrender, in whole or in part, of a prescribed retirement savings arrangement of a type that is prescribed for the purposes of this subsection if the Superintendent is satisfied as to the existence of such circumstances of financial hardship as may be prescribed.

Same

(6)The owner of the prescribed retirement savings arrangement may apply in writing to the Superintendent for his or her consent under subsection (5).

Same

(7)The Superintendent's authority to give his or her consent under subsection (5) is subject to such conditions and restrictions as may be prescribed.

13.Section 71 of the Act is amended by adding the following subsection:

Termination

(3)The Superintendent may terminate the appointment of an administrator appointed by him or her if the Superintendent considers it reasonable to do so.

14.(1)Subsection 72 (1) of the Act is repealed and the following substituted:

Notice of entitlement upon wind up

(1)Within the prescribed period of time, the administrator of a pension plan that is to be wound up, in whole or in part, shall give to each person entitled to a pension, deferred pension or other benefit or to a refund in respect of the pension plan a statement setting out the person's entitlement under the plan, the options available to the person and such other information as may be prescribed.

(2)Subsection 72 (2) of the Act is amended by striking out "and the administrator of the pension plan shall make payment in accordance with the election or deemed election" at the end.

(3)Section 72 of the Act is amended by adding the following subsection:

Payment

(3)Within the prescribed period of time, the administrator shall make payment in accordance with the election or deemed election.

15.Clause 88 (2) (b) of the Act is repealed and the following substituted:

(b)that the assumptions or methods used in the preparation of a report required under this Act or the regulations in respect of a pension plan are not consistent with accepted actuarial practice; or

. . . . .

16.The Act is amended by adding the following section:

Agreements governing multi-jurisdictional pension plans

93.(1)In this section, "

multi-jurisdictional pension plan" means a pension plan to which this Act and the regulations apply and to which pension benefits legislation of one or more prescribed jurisdictions in Canada also applies.

Authority for agreements

(2)With the approval of the Lieutenant Governor in Council, the Minister may enter into one or more agreements described in subsection (3) with the government of a prescribed jurisdiction in Canada, with a government agency of such a jurisdiction or with another person who has supervisory or regulatory powers under pension benefits legislation of such a jurisdiction.

Same

(3)An agreement may provide for matters relating to the application of this Act and the regulations to multi-jurisdictional pension plans, the application of pension benefits legislation of a prescribed jurisdiction in Canada to such pension plans and the supervision and regulation of such pension plans.

Same

(4)Without limiting the generality of subsection (3), an agreement may provide for,

(a)matters respecting the administration and enforcement of this Act and the regulations and of the pension benefits legislation of a prescribed jurisdiction in Canada;

(b)the delegation of any powers and duties of the Superintendent under this Act and the regulations to a person who has supervisory or regulatory powers under pension benefits legislation of a prescribed jurisdiction;

(c)the delegation to the Superintendent of any powers and duties under pension benefits legislation of a prescribed jurisdiction of a person who has supervisory or regulatory powers under that legislation.

Effect of agreement

(5)If an agreement specifies that the pension benefits legislation of a prescribed jurisdiction in Canada governs multi-jurisdictional pension plans instead of all or part of this Act and the regulations,

(a)this Act and the regulations cease to apply to the multi-jurisdictional pension plans to the extent specified in the agreement; and

(b)the pension benefits legislation of the prescribed jurisdiction applies, in lieu of this Act and the regulations, to the multi-jurisdictional pension plans to the extent and in the manner specified in the agreement.

Termination of agreement

(6)Subsection (5) ceases to apply if the Minister ceases to be a party to the agreement.

Publication of agreements

(7)The Minister shall publish each agreement and any amendments to an agreement in The Ontario Gazette.

Effective date

(8)An agreement or an amendment to an agreement does not come into effect in Ontario until the date on which it is published in The Ontario Gazette or the date specified in the agreement or the amendment, whichever date is later.

Inspection

(9)The Superintendent shall make a copy of each agreement and any amendments to an agreement available for inspection by the public upon request.

Status of agreements

(10)An agreement and any amendment to an agreement is not a regulation within the meaning of the Regulations Act.

Delegation to the Superintendent

(11)The Superintendent may accept a delegation described in clause (4) (c).

17.Subsection 95 (2) of the Act is repealed and the following substituted:

Same

(2)Without limiting the generality of subsection (1), an agreement may provide for,

(a)the delegation of any powers and duties of the Superintendent under this Act and the regulations to a pension supervisory authority or the government of a designated province;

(b)the delegation to the Superintendent of any powers and duties of a pension supervisory authority or of the government of a designated province under pension benefits legislation.

Delegation to the Superintendent

(3)The Superintendent may accept a delegation described in clause (2) (b).

18.Section 106 of the Act, as amended by the Statutes of Ontario, 1997, chapter 28, section 219, is further amended by adding the following subsections:

Opinion, report, etc.

(12)The Superintendent may require a person exercising power under this section to prepare an opinion, report or professional attestation about the results of any examination, investigation or inquiry made by the person under this section.

Cost of examination, etc.

(13)The Superintendent may order any person to pay all or part of the cost of an examination, investigation or inquiry under this section and to pay all or part of the cost of any opinion, report or professional attestation prepared following such an examination, investigation or inquiry (whether or not the opinion, report or attestation was required by the Superintendent), if the Superintendent considers it to be reasonable and fair in the circumstances to do so.

Same

(14)Without limiting the generality of subsection (13), an administrator or employer may be required to make a payment under that subsection.

19.The Act is amended by adding the following section:

Payment for reports

106.1The Superintendent may order an administrator, an employer or any other person to pay all or part of the cost of preparing any report required by this Act or the regulations, if the Superintendent considers it to be reasonable and fair in the circumstances to do so.

MPPs Pension Act, 1996

20.(1)Subsection 21 (4) of the MPPs Pension Act, 1996 is repealed.

(2)Section 21 of the Act is amended by adding the following subsections:

Amendment, locked-in retirement account

(7)An individual described in subsection (1) who has entered into a contract to establish a locked-in retirement account is entitled to require that the contract be amended, despite any other term of the contract,

(a)if the person who is the individual's spouse or same-sex partner when the amendment is required to be made consents in writing to the amendment; and

(b)if the contract, as it would be amended, complies with subsection (5) and meets the requirements established under the Income Tax Act (Canada) for a registered retirement savings plan or a registered retirement income fund, as those expressions are defined in that Act.

Same, life income fund

(8)An individual described in subsection (1) who, by the exercise of rights under a contract entered into to establish a locked-in retirement account, has entered into a contract to establish a life income fund is entitled to require that the life income fund contract be amended, despite any other term of the contract,

(a)if the person who is the individual's spouse or same-sex partner when the amendment is required to be made consents in writing to the amendment; and

(b)if the life income fund contract, as it would be amended, complies with subsection (5) and meets the requirements established under the Income Tax Act (Canada) for a registered retirement savings plan or a registered retirement income fund, as those expressions are defined in that Act.

Amendment required

(9)The parties to the contract to establish the locked-in retirement account or life income fund, as the case may be, that is to be amended in accordance with subsection (7) or (8) shall promptly make the amendment.

Effect of amendment

(10)When the contract is amended as required by subsection (9), the locked-in retirement account or life income fund ceases to be such an account or fund.

Definitions

(11)In subsections (7) to (10), "

life income fund" means a life income fund that was established before the Pension Benefits Statute Law Amendment Act, 1999 received Royal Assent and that, when the fund was established, was described in Schedule 1 to Regulation 909 (``General") made under the Pension Benefits Act as the Schedule then read; ("fonds de revenu viager") "

locked-in retirement account" means a locked-in retirement account that was established before the Pension Benefits Statute Law Amendment Act, 1999 received Royal Assent and that, when the account was established, was intended to comply with this section as it then read. ("compte de retraite avec immobilisation des fonds")

21.Subsection 27 (2) of the Act is amended by striking out "when he or she ceases to be a member" at the end and substituting "when the pension is purchased".

Commencement and Short Title

Commencement

22.(1)Subject to subsection (2), this Act comes into force on the day it receives Royal Assent.

Same

(2)Sections 1 to 19 come into force on a day to be named by proclamation of the Lieutenant Governor.

Short title

23.The short title of this Act is the Pension Benefits Statute Law Amendment Act, 1999.

EXPLANATORY NOTE

The Bill amends the Pension Benefits Act and the MPPs Pension Act, 1996 with respect to a variety of matters.

Pension Benefits Act

Currently, a pension plan is not eligible for registration under the Act unless it is administered by a person who is described in a list in subsection 8 (1) of the Act. An amendment to that subsection expands the list of persons to include one or more employers where there are multiple employers and an administrator appointed by the Superintendent of Financial Services under section 71 of the Act.

Currently, the administrator of a pension plan is required to apply to register it within 60 days after the plan is established. Subsection 9 (1) of the Act is amended to require the application to be made within the period specified in the regulations.

Under subsection 29 (1) of the Act, the administrator of a pension plan is required to make certain documents and information about the plan available for inspection by the persons listed in the subsection. An amendment expands that list of persons to include an employer, a person who makes contributions on behalf of an employer, the agent of either, and such other persons as may be specified in the regulations.

Currently, section 30 of the Act makes provision for specified persons to inspect and obtain copies of certain documents about a pension plan or pension fund from the Superintendent of Financial Services. An amendment expands the list of persons to include the administrator of the plan and the persons referred to in subsection 29 (1).

When an employee purchases credit under a pension plan for a prior period of employment when he or she was not eligible for credit under the plan, the employer is now required to pay 50 per cent of the cost. An amendment to section 39 of the Act provides that this requirement does not apply with respect to benefits that result from voluntary contributions for past service, as defined in the regulations.

Section 42 of the Act now permits the transfer of the commuted value of a former member's deferred pension into a prescribed retirement savings arrangement. An amendment to that section addresses the situation that arises when the commuted value is greater than the amount the former member is permitted under the Income Tax Act (Canada) to transfer into the prescribed retirement savings arrangement. Under the amendment, the amount in excess of the maximum permitted under that Act shall be paid as a lump sum to the former member.

Currently, the spouse of a member or a former member of a pension plan is entitled to pre-retirement death benefits, and this entitlement can be waived jointly by the spouse and the member. The amendments to section 48 of the Act allow the spouse of a member or former member, alone, to waive this entitlement. An amendment also permits the waiver to be rescinded. Section 48 is also amended to refer to same-sex partners. Section 46 is amended to clarify the manner in which a waiver is delivered or rescinded.

The amendment to section 49 of the Act addresses the payment of a pension or deferred pension in such circumstances of shortened life expectancy as may be prescribed by regulation. The amendment allows regulations to be made to authorize variations in the terms of a pension plan concerning the payment of a pension or deferred pension.

Section 56 of the Act now requires the administrator of a pension plan to report to the Superintendent of Financial Services if an employer does not pay its contributions to a pension plan when they are due. The amendment to section 56 and the new section 56.1 of the Act also require the administrator to give the trustees of the pension fund, if any, a summary of the contributions to be made to the fund. The trustees are then required to notify the Superintendent if the contributions are not made when they are due.

An amendment to section 66 of the Act provides that if a person is entitled, in his or her discretion, to withdraw money from a locked-in retirement account, that entitlement cannot be considered under any other Act in determining what income or assets are available to the person.

An amendment to section 67 of the Act permits the Superintendent, upon application, to consent to the commutation or surrender, in whole or in part, a person's prescribed retirement savings arrangement in case of financial hardship. The criteria for determining whether a financial hardship exists are to be established by regulation. Limits on the Superintendent's power to consent may also be prescribed.

An amendment to section 71 permits the Superintendent to rescind the appointment of an administrator appointed by him or her.

An amendment to section 72 provides for deadlines to be established by regulation for the administrator of a pension plan to take certain steps when the plan is being wound up in whole or in part.

A technical amendment is made to section 88 of the Act, to update a reference to generally accepted actuarial principles that is now in the provision. It is replaced by a reference to accepted actuarial practice.

A new section 93 of the Act authorizes agreements to be made with other Canadian jurisdictions with respect to multi-jurisdictional pension plans. The new section allows the agreements to provide that, in the circumstances specified in an agreement, all or part of the pension benefits legislation of one of the jurisdictions applies to a multi-jurisdictional pension plan and all or part of the pension benefits legislation of the other jurisdictions does not apply to it. The agreements may provide for other matters relating to the enforcement of the pension benefits legislation of the applicable jurisdictions.

Currently, section 95 of the Act authorizes agreements to be made with other Canadian jurisdictions about the administration of pension plans. An amendment to section 95 provides for the delegation of the Superintendent's powers under those agreements, and provides for delegations of power to the Superintendent from the other jurisdictions.

An amendment to section 106 and the new section 106.1 of the Act concern the powers of the Superintendent to make examinations, investigations and inquiries relating to pension plans. The amendments allow the Superintendent to require specified persons to pay all or part of the costs of an examination, investigation or inquiry or of a report required under the Act.

MPPs Pension Act, 1996

When it was enacted, the MPPs Pension Act, 1996 required the transfer of the commuted value of each MPP's pension benefit for the period before June 8, 1995 to a locked-in retirement account. Under section 21 of the Act, the account had to meet the requirements of the Pension Benefits Act. In addition, the Act specified that payments could not be paid from the account to an individual until the applicable MPP ceased to be a member of the Assembly or reached 55 years of age, whichever was later. Amendments to section 21 of the Act eliminate the requirement for the locked-in retirement account to comply with the requirements of the Pension Benefits Act.

The terms of a locked-in retirement account that was established before the Bill is passed shall be amended at the request of the account holder to remove restrictions on withdrawals from the account and to remove other restrictions that were imposed to comply with the Pension Benefits Act, such as requirements relating to the payment of death benefits and joint and survivor pension benefits. However, the Bill specifies two restrictions with respect to these amendments: a member's locked-in retirement account must comply with the requirements of the Income Tax Act (Canada); and, an individual may make withdrawals from the account only after he or she ceases to be an MPP or reaches 55 years of age, whichever is later. The amendments may be made only with the prior written consent of the spouse or same-sex partner of the account holder. These conditions also apply to a life income fund, as described in regulations under the Pension Benefits Act, that was established pursuant to a locked-in retirement account entered into before the amendments in this Bill come into force.

Currently, subsection 27 (2) of the Act specifies that the amount in a member's money purchase account when he or she ceases to be an MPP can be used to purchase his or her pension. An amendment provides, instead, that the amount that can be used to purchase the pension is the amount in the account when the pension is purchased.