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PENSION BENEFITS STANDARDS ACT
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352 [RSBC 1996]
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PENSION BENEFITS STANDARDS ACT
PENSION BENEFITS STANDARDS ACT
CHAPTER 352 [RSBC 1996]
[includes 2009 Bill 11, c. 11 (B.C. Reg. 218/2009) amendments (effective Sept. 3, 2009)]
Contents
PART 1 – Administration
1. Definitions and interpretation
2. Designation and duties of Superintendent of Pensions
2.1 Personal liability protection
3. Pension Benefits Standards Advisory Council
4. Interprovincial plans
5. Reciprocal powers and agreements with other governments
6. Superintendent’s authority to extend time limits
7. Administrators of multi-employer plans
8. General responsibilities of administrators
9. Reports and returns by administrators
10. Disclosure of information by administrators
11. Retention of records
12. Effect of trust on participating employers
13. Information from non-administrator employer
PART 2 – Registration and Amendment of Pension Plans
14. Registration of plans
15. Amendment to plans
16. No administration of unregistered plan or amendment
17. Effective date of plan or amendment
18. Transfer agreements
19. Cancellation of registration of plan
20. Objection to refusal to register or cancellation of registration
21. Appeal to Commercial Appeals Commission
22. Public access to information
PART 3 – Provisions Required in Pension Plans
23. Requirements of pension plans
24. General requirements of pension plans
25. Entitlement of employees to join plan
26. Vesting of pension
27. Vesting at pensionable age
28. Vesting on termination of plan
29. Amount and terms of pension vested
29.1 Optional ancillary benefits
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PENSION BENEFITS STANDARDS ACT
30.
31.
32.
33.
34.
35.
36.
37.
38.
38.1
39.
40.
41.
42.
43.
43.1
44.
45.
46.
47.
Locking in commuted value of pension
Interest on member contributions
Minimum employer contributions for funding of pension
Portability of commuted value of benefits
Preretirement survivor benefits
Postretirement survivor benefits
Surviving spouse’s change in status
Adjustments in pension for CPP, QPP and OAS
Age provisions in pension plans
Phased retirement benefit
Payment or transfer of contributions
Permitted variations in benefits
Funding and solvency requirements
Fund holders
Making and remitting of contributions
Deemed trust
Investment requirements
Benefits and assets on winding up
Participating employer’s withdrawal from multi-employer plan
Fiscal year of plan
PART 4 – Termination, Winding Up and Disposal of Business
48. Events constituting termination
49. Superintendent’s authority to declare termination of plan
50. Notification of termination or winding up
51. Payments to meet solvency requirements
52. Effect of termination on assets
53. Entitlements on partial termination
54. Winding up of a pension plan
55. Allocation and distribution of assets on termination
56. Superintendent’s authority to appoint administrator
57. Expense of winding up
58. Effect of disposal of business
PART 5 – Miscellaneous
59. Effect of plan amendment
60. Transfer of assets
61. Transfer of surplus assets
61.1 Return of excess contributions
62. Provisions for arbitration of disputes and appointment of arbitrators
63. Prohibition and effect of assignment of benefits and money
64. Matrimonial property orders and agreements
65. Evidence of entitlement to benefit
66. Service of documents
67. Proof of date of service
68. Inspection and production of documents
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PENSION BENEFITS STANDARDS ACT
69.
70.
71.
72.
73.
74.
74.1
75.
Pension advisory committee
Minister may suspend or replace administrator
Civil enforcement
Offences and penalties
Limitation period for prosecution
Power to make regulations
Transitional – multi-employer plan
Fees
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PENSION BENEFITS STANDARDS ACT
PART 1 – Administration
Definitions and interpretation
1.
(1) In this Act:
(AM)
"additional voluntary contributions" means contributions made by a member to a
Jul
pension plan in addition to those contributions required to attain a pension and includes
15/99
compound interest on those additional voluntary contributions but does not include
optional defined benefit contributions or contributions whose payment, under the terms
of the plan, imposes on the employer an obligation to make concurrent additional
contributions;
"administrator" means
(a) subject to paragraphs (b) and (c), in relation to
(i)
a multi-employer plan, the board of trustees referred to in section 7
(1), or
(ii) any plan other than a multi-employer plan,
(A) a board of trustees constituted to administer the plan, or
(B) the employer,
(b) a person appointed administrator of a plan by the superintendent under
section 56 (1) or by the minister under section 70, or
(c) the superintendent under section 56 (2);
"advisory council" means the Pension Benefits Standards Advisory Council
established under section 3;
"benefit" means a pension or any other benefit under a pension plan, and includes a
return of contributions and any payment in a series of payments that constitutes a
benefit;
"certified copy" means, in relation to a document, a copy of the document certified to
be a true copy by a person authorized to certify the document;
(ADD)
"collective agreement" has the same meaning as in section 1 (1) of the Labour
Jul
Relations Code;
15/99
"commuted value" means, in relation to benefits that a person has a present or future
entitlement to receive, the actuarial present value of those benefits determined, as of the
time in question,
(AM)
(a) on the basis of actuarial assumptions and methods that are appropriate and
Dec
in accordance with accepted actuarial practice,
17/99
(b) in accordance with any prescribed conditions, and
(c) in a manner acceptable to the superintendent;
"defined benefit plan" means a pension plan that is not a defined contribution plan;
"defined benefit provision" means a provision of a pension plan under which benefits
are determined in any way other than that described in the definition of “defined
contribution plan”;
"defined contribution plan" means a pension plan under which benefits are
determined solely by reference to what is provided by
(a) contributions made by a member and on a member’s behalf by an
employer, and
(b) interest and any other amounts allocated in respect of a member or former
member;
"defined contribution provision" means a provision of a defined contribution plan,
and includes a defined contribution provision of a defined benefit plan;
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PENSION BENEFITS STANDARDS ACT
(ADD)
Dec
17/99
"designated province" means a province of Canada, other than British Columbia,
prescribed to be a province in which there is in force legislation substantially similar to
this Act;
"early retirement pension" means a pension that
(a)
(b)
(AM)
Jan
01/98
(AM)
Mar
29/04
(ADD)
Jul
15/99
352 [RSBC 1996]
is received before pensionable age, and
has an actuarial present value which is greater than the minimum actuarial
present value of a pension as required by section 38 (8);
"employee" means an individual employed to do work or provide a service in British
Columbia or in a designated province who is in receipt of or entitled to remuneration for
the work or service;
"employer" means a person or organization, whether incorporated or not, from whom
an employee receives or received remuneration, and includes any participating
employers of a multi-employer plan who have employed that employee;
"employment" means,
(a) in relation to a multi-employer plan, an employee’s employment with an
employer for which the employer is required by the plan to make
contributions to that plan on the employee’s behalf, or
(b) in any case other than in relation to a multi-employer plan, an employee’s
employment with the employee’s employer;
"former member" means, in relation to a pension plan, an employee or former
employee
(a) whose membership has been terminated,
(b) who has begun receiving a pension, or
(c) whose plan has been terminated,
and who retains a present or future entitlement to receive a benefit under the plan;
"fund holder" means a person or combination of persons who, under section 42 (1),
hold the pension fund of a pension plan;
"initial qualification date" means,
(a) in respect of employment in British Columbia, January 1, 1993, and
(b) in respect of employment in a designated province, the date on which
legislation substantially similar to this Act is prescribed as having come
into force in the designated province;
"insurance company" means a corporation authorized to carry on life insurance
business in Canada;
"interest" means interest, gains and losses provided for under section 31;
"member" means, in relation to a pension plan that has not been terminated, an
employee, and in the case of a multi-employer plan includes a former employee,
(a) who has made contributions to the plan or on whose behalf an employer
was required by the plan to make contributions, and
(b) who has not terminated membership or begun receiving a pension;
"multi-employer plan" means a pension plan administered for employees of 2 or more
employers, unless those employers are affiliates within the meaning of the Business
Corporations Act;
"negotiated cost plan" means a pension plan, including a multi-employer plan, where
an employer’s financial contribution to the plan is limited to the amount the employer is
contractually required to contribute to the plan;
"non-administrator employer" means an employer who is not an administrator;
"optional ancillary benefits" means enhanced benefits under a defined benefit
provision in a pension plan that are
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(a)
(b)
(ADD)
Jul
15/99
(ADD)
Jul
15/99
(AM)
Dec
01/07
(SUB)
Jul
28/00
elected by a member, former member or surviving spouse, and
funded either fully or partially through optional ancillary contributions
provided by the member;
"optional ancillary contributions" means contributions made by a member to a
pension plan, for conversion to optional ancillary benefits, that are in addition to those
contributions required to attain a pension and includes compound interest on those
contributions;
"optional defined benefit contributions" means contributions made by a member to a
pension plan to provide benefits under a defined benefit provision that are in addition to
those contributions required to attain a pension and includes
(a) optional ancillary contributions,
(b) contributions to purchase benefits related to past service,
(c) contributions to increase pensionable service in a multi-employer plan, and
(d) compound interest on contributions referred to in paragraphs (a) to (c);
"participating employer" means, in relation to a multi-employer plan, an employer
required to make contributions to that plan;
"pension" means a series of payments that continue for the life of a former member,
whether or not the pension is afterward continued to another person;
"pension commencement" means the time by reference to which a person begins to
receive a pension under a pension plan;
"pension plan" or “plan” means a plan, scheme or arrangement organized and
administered to provide pensions for employees and former employees and under
which, except in the case of a supplemental pension plan, the employer is or, in the case
of a terminated plan, was required to make contributions on behalf of the members, and
includes the pension fund of a plan but does not include a prescribed plan, scheme or
arrangement;
"pensionable age" means, in relation to a pension plan, the age or the date referred to
in section 38 (1);
"public sector pension plan" means a plan to which the Public Sector Pension Plans
Act applies, and any other prescribed plan established under the authority of an
enactment;
"registration" means registration, under Part 2, of a pension plan or of an amendment
to a plan;
"remuneration" means wages, salary, pay, commission or other remuneration;
"RRSP" means a retirement savings plan, within the meaning of the Income Tax Act
(Canada), that is registered under that Act;
"solvency tests" means the tests for the solvency of pension plans referred to in section
41;
"spouse" means, in relation to another person,
(a)
a person who at the relevant time was married to that other person, and
who, if living separate and apart from that other person at the relevant time,
did not live separate and apart from that other person for longer than the 2
year period immediately preceding the relevant time, or
(b) if paragraph (a) does not apply, a person who was living and cohabiting
with that other person in a marriage-like relationship, including a
marriage-like relationship between persons of the same gender, and who
had been living and cohabiting in that relationship for a period of at least 2
years immediately preceding the relevant time;
"superintendent" means the Superintendent of Pensions designated under section 2;
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PENSION BENEFITS STANDARDS ACT
(AM)
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"supplemental pension plan" means a pension plan in which the initial and continuing
membership in the plan is subject to first having membership in another plan, the first
mentioned pension plan being supplemental to that other plan;
"surplus assets" means the excess of the value of the assets of a pension plan over the
value of the liabilities under the pension plan, both calculated in the prescribed manner;
"termination" means, when used in relation to a pension plan, an event constituting a
termination of the plan under section 48, 49 or 58 (3) to the extent that the event affects
members and former members;
"termination of membership" means,
(a)
(AM)
Jan
01/98
(ADD)
Jun
01/04
(AM)
Jan
01/98
in relation to a member of a multi-employer plan and subject to paragraphs
(b) and (c), the end of any period of 2 consecutive fiscal years of the plan
in which the member has not completed at least 350 hours of employment,
(b) in relation to a member of a supplemental pension plan, including a
supplemental multi-employer plan, the termination of the member’s
membership in the plan to which it is supplemental, and
(c) in relation to a member of any other plan, the cessation by the member of
employment for which the employer is required by that plan to make
contributions to that plan on the member’s behalf,
and, in relation to a member of a multi-employer plan, includes the return of all
contributions, with interest, under section 30 (6) or (7) or the transferring of the whole
of the commuted value of the pension under section 33 (3) to (5) or 40;
"tribunal" means the Financial Services Tribunal under the Financial Institutions Act;
"winding up" means, in relation to a pension plan that has been terminated, the process
of distributing the assets of the plan;
"years of continuous employment" means,
(a)
(AM)
Jul
15/99
(ADD)
Jan
01/98
in relation to a member of a multi-employer plan, fiscal years of the plan in
each of which the member has completed at least 350 hours of
employment, and
(b) in relation to a member of any plan other than a multi-employer plan, years
of employment for a continuous period of time including, unless an actual
cessation of employment has occurred, any period not longer than 26
consecutive weeks during which a person, who immediately before the
start of the period was in the employment of the employer, is not doing
work or providing a service for that employer for remuneration and after
the expiry of which the person is again in the employment of that
employer;
"years of continuous plan membership" means,
(a)
(b)
352 [RSBC 1996]
in relation to a member of a multi-employer plan, fiscal years of the plan in
each of which the person is a member of the plan and completes at least
350 hours of employment in each of those years, and
in relation to a member of any plan other than a multi-employer plan, years
of plan membership for a continuous period of time and without a cessation
of employment but disregarding periods of temporary interruption of
employment or service, or periods of layoff from employment, that do not
exceed 26 weeks,
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and includes periods of membership in all plans to which the employer was required to
make contributions;
"Year’s Maximum Pensionable Earnings" has the same meaning as in the Canada
Pension Plan (Canada).
(2) For the purposes of paragraph (a) of the definition of “spouse” in subsection (1),
persons are living separate and apart
(a) if they are living apart and either of those persons has the intention to live
separate and apart from the other, or
(b) if, before the relevant time,
(i)
they had lived separate and apart for any period, and
(ii) that period was interrupted or terminated only because either person
became incapable of continuing to live separate and apart or of
forming or having the intention to continue to live separate and apart
of that person’s own volition,
and the separation would probably have continued if that person had not become incapable.
(3)
Despite paragraph (a) of the definition of “termination of membership” in
subsection (1), a member of a multi-employer plan who terminates membership
by virtue of that paragraph and who has ceased employment is deemed to have
terminated membership in, and while employed in, the province where the
member last ceased to be employed.
(3.1) Despite the definition of "multi-employer plan" in subsection (1), the
superintendent may exempt a pension plan from that definition if the
superintendent considers that an exemption is in the best interest of the plan
members.
(4) For the purposes of the definition of “years of continuous employment” in
subsection (1), if a member has at any time terminated membership in one plan to
which the employer was required to make contributions due to becoming a
member of another plan to which that employer is also required to make
contributions, years of continuous employment includes, in relation to each of
those plans, the aggregate of the years of continuous employment while a
member of those plans.
(5) For the purposes of this Act, a person is deemed to be employed in the province
in which the employer’s establishment is located and to which the person is
required to report for work.
(6) A person who is not required to report for work at an employer’s establishment or
is required to report to more than one establishment in different provinces is
deemed to be employed in the province where the employer’s establishment is
located and from which the person’s remuneration is paid.
(7) Unless otherwise specified, references to the termination or winding up of a
pension plan include references to the termination or winding up of only part of a
plan.
(8) For greater certainty,
(a) this Act applies to a public sector pension plan unless the public sector
pension plan is specifically exempted under this Act, and
(b) if there is a conflict between this Act, or a regulation made under this Act,
and another enactment establishing or referring to a public sector pension
plan, this Act, or the regulation made under this Act, prevails.
(ADD)
Jul
31/98
(AM)
Dec
01/07
1991-15-1; 1994-23-11; 1998-42-35; 1999-41-1; 1999-44-90; 2000-24-29; 2003-70-230; 2003-51-41; 2007-14-201, 204 (B.C.
Reg. 354/2007).
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Designation and duties of
Superintendent of Pensions
2.
(1) The minister must designate as Superintendent of Pensions a person appointed
under the Public Service Act.
(2) The superintendent is the chief administrative officer charged with the
administration and enforcement of this Act.
(3) The superintendent may designate a person who, in the absence of the
superintendent, exercises the powers and performs the duties of the
superintendent.
1991-15-2.
(ADD)Personal liability protection
May
29/08
2.1 (1) In this section, "protected individual" means an individual who is or was any of
the following:
(a) the superintendent;
(b) a person designated under section 2 (3) [designation and duties of
Superintendent of Pensions] or 68 (1) (b) [inspection and production of
documents];
(c) an employee of or any other individual acting on behalf of, or under the
direction of, the superintendent.
(2) Subject to subsection (3), no legal proceeding for damages lies or may be
commenced or maintained against a protected individual because of anything
done or omitted
(a) in the performance or intended performance of any duty under this Act, or
(b) in the exercise or intended exercise of any power under this Act.
(3) Subsection (2) does not apply to a protected individual in relation to anything
done or omitted in bad faith.
(4) Subsection (2) does not absolve the government from vicarious liability arising
out of anything done or omitted by a protected individual for which the
government would be vicariously liable if this section were not in force.
2008-30-61.
Pension Benefits Standards
Advisory Council
3.
(1) The minister may establish a Pension Benefits Standards Advisory Council
consisting of members appointed by the minister.
(2) A member of the advisory council holds office for a term set by the minister.
(3)
(4)
(5)
Members of the advisory council who are not public service employees within the
meaning of the Public Service Act may be paid remuneration set by the minister
and must be reimbursed for reasonable out of pocket, travel and other expenses
necessarily incurred in the discharge of their duties.
Each year the members of the advisory council must elect from among
themselves a chair, vice chair and secretary.
The purposes of the advisory council are
(a)
to provide advice to the minister and the superintendent on the
administration of this Act and legislative changes, or on other issues as the
minister may require, and
(b)
352 [RSBC 1996]
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PENSION BENEFITS STANDARDS ACT
to promote awareness of pensions and retirement income planning among
employers and employees.
1991-15-3.
Interprovincial plans
4.
If a pension plan must be registered under this Act, and the plan is already
registered in a designated province, the superintendent may, by order, exempt the
plan from the application of all or part of this Act on the condition that the plan
complies with the requirements of the designated province.
1991-15-4.
Reciprocal powers and agreements
with other governments
(SUB)
5.
(1) If pension standards legislation of a designated province or of Canada is
Jan
substantially similar to this Act,
01/98
(a) that pension standards legislation, as amended from time to time before or
after the coming into force of this subsection, is deemed to apply with
those modifications as the circumstances require for the purposes of this
Act as though it had been enacted as a part of this Act, but only in respect
of persons in British Columbia who are members or former members of
pension plans that are subject to that pension standards legislation in
accordance with an agreement referred to in subsection (2), and
(b) the regulatory authority acting under that pension standards legislation is
authorized to administer the legislation made applicable under paragraph
(a), but only in respect of persons in British Columbia who are members or
former members of pension plans that are subject to that pension standards
legislation in accordance with an agreement referred to in subsection (2).
(2) The minister may, with the approval of the Lieutenant Governor in Council, enter
into an agreement with the government of a designated province or of Canada for
any or all of the following purposes:
(a) to provide for the reciprocal registration and examination of pension plans
and the reciprocal enforcement of specified laws affecting plans;
(b) to provide for the assumption by the regulatory authority of that
government of any of the superintendent’s functions and duties and the
performance by the regulatory authority of that government of any of the
superintendent’s functions and duties under this Act;
(c) to provide for the assumption by the superintendent of any of that
regulatory authority’s functions and duties and the performance by the
superintendent of any of that regulatory authority’s functions and duties
under the laws governing pension plans of that government’s jurisdiction;
(d) if a plan is governed by this Act and the legislation of one or more of those
governments, to provide that this Act or any provision of it
(i)
is to apply to the plan, and the substantially similar legislation of
those governments is not to apply to the plan, or
(ii) is not to apply to the plan, and the substantially similar legislation of
one of those governments, as made applicable under subsection (1)
(a), is to apply to the plan;
(e) to establish conditions governing the application or non-application of
legislation referred to in paragraph (d) (i) or (ii).
(3)
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The superintendent is authorized to administer this Act in respect of persons
outside British Columbia who are members or former members of pension plans
that are subject to this Act in accordance with an agreement referred to in
subsection (2), but only if the government of the designated province or of
Canada enacts legislation that adopts this Act into its substantially similar pension
standards legislation and authorizes the superintendent to administer the adopted
legislation.
1997-27-26.
Superintendent’s authority
to extend time limits
6.
If the superintendent considers that there are extenuating reasons for a person’s
failure to do anything within a period or before a time limit imposed by this Act,
the superintendent may, on receipt of a written request and by written notice to
the applicant, extend the period within which that thing must be done to a time
and subject to conditions that may be specified in the notice.
1991-15-6.
Administrators of multi-employer plans
7.
(1) A board of trustees must be constituted to administer a multi-employer plan.
(AM)
(2) If a multi-employer plan is established, or maintained by contributions required,
Jul
under a collective agreement, the number of members of the board of trustees
15/99
representing members of the plan must not be less than the number representing
employers.
1991-15-7; 1992-82-165; 1999-41-2.
General responsibilities of administrators
8.
(1) An administrator of a pension plan is responsible for the administration of the
plan and must administer the plan in accordance with this Act and the regulations.
(2) The administrator must ensure that the pension plan, including the plan’s
contractual provisions, complies with this Act and the regulations.
(3) If a plan is terminated, the administrator must ensure that the plan is wound up in
accordance with this Act and the regulations.
(SUB)
(4) If the plan contains a defined benefit provision, the administrator must
Jul
31/98
(a)
(b)
(SUB)
Jul
15/99
(5)
have the plan reviewed in accordance with the regulations, and
have the results of the review set out in the form of an actuarial valuation
report.
In the administration of a pension plan, the administrator must
(a)
(6)
(ADD)
Jul
15/99
352 [RSBC 1996]
(7)
act honestly, in good faith and in the best interests of the members and
former members and any other persons to whom a fiduciary duty is owed,
and
(b) exercise the care, diligence and skill that a person of ordinary prudence
would exercise when dealing with the property of another person.
The provisions of subsection (5) are in addition to, and not in derogation of, any
enactment or rule of law or equity relating to the duties or liabilities of a trustee.
If an administrator employs an agent to carry out some of the duties of the
administrator, the administrator must be satisfied of the agent’s qualifications to
perform the duties for which the agent is employed, and must carry out such
supervision of the agent as is prudent and reasonable.
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(ADD)
Jul
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(ADD)
Jul
15/99
(ADD)
Jul
15/99
(8)
An agent or employee of an administrator is subject to the standards that apply to
the administrator under this section.
(9) An administrator or, if the administrator is a board of trustees, a member of the
board who is the administrator, must not knowingly permit the administrator’s
interests to conflict with the administrator’s duties and powers in respect of the
pension plan.
(10) For the purpose of subsection (9), entitlement to a pension or other benefit under
the plan does not constitute a conflict of interest.
1991-15-8; 1998-42-36; 1999-41-3.
Reports and returns by administrators
9.
(1) Within 30 days after becoming the administrator of a pension plan, the
administrator must ensure that the superintendent is informed, in writing, of the
administrator’s name and address.
(2) The administrator must inform the superintendent, in writing, of any change in
the administrator’s name and address within 60 days after that change.
(3) Subject to this section, the administrator must file with the superintendent,
(a) at the times prescribed and in the form required by the superintendent,
returns containing information respecting the following:
(i)
the administration of the plan;
(ii) contributions to the plan;
(iii) membership in the plan;
(iv) any other information necessary to permit the fulfillment of the
superintendent’s duties under this Act,
(b) in the case of a plan that contains a defined benefit provision, at the
prescribed times or on the request of the superintendent,
(i)
actuarial valuation reports that
(A) contain the prescribed information, and
(AM)
(B) are prepared by a Fellow of the Canadian Institute of
Dec
Actuaries or another prescribed person, on the prescribed
17/99
basis, and on the basis of actuarial assumptions and methods
that are appropriate and in accordance with accepted actuarial
practice, and
(REP)
(ii) Repealed. [1998-42-37]
Jul
31/98
(c)
(AM)
Jul
31/98
(4)
(5)
(REP)
Jul
31/98
(AM)
Dec
01/04
352 [RSBC 1996]
(6)
(7)
if contributions to or benefits from a plan are determined by the provisions
of a collective agreement or arbitration award, at the prescribed times, a
copy of those provisions and any amendments to the provisions.
If the superintendent considers that the actuarial valuation report required by
subsection (3) does not comply with that subsection, the superintendent must
(a) notify the administrator, in writing, of that fact, and
(b) direct the administrator to have the report amended to comply with
subsection (3).
The administrator must promptly comply with a direction under subsection (4)
(b).
Repealed. [1998-42-37]
A plan must file audited financial statements, prepared in accordance with the
accounting standards prescribed by regulation,
(a) annually if the plan has assets exceeding the prescribed amount, and
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PENSION BENEFITS STANDARDS ACT
(b)
at any time that the superintendent may require.
1991-15-9; 1998-42-37; 1999-41-4; 2004-62-40.
Disclosure of information by administrators
10. (1) An administrator must, in writing, and in the prescribed manner and at the
prescribed times, provide the following information to the persons specified:
(a) to each member, and to an employee who is or is about to be eligible or
required to be a member of the pension plan,
(i)
an explanation or summary of
(A) the plan as it applies to that person,
(B) amendments to the plan that relate to that person’s benefits,
and
(C) the member’s entitlements and obligations under the plan or
amendments, and
(ii) any other prescribed information;
(b) to each member, the prescribed information on an annual basis;
(c) to a former member,
(i)
following the termination of membership, the prescribed
information, and
(ii) subsequent to subparagraph (i), on a written request by the former
member for the information, the same information but updated;
(SUB)
(d) to a member or former member who
Dec
09/08
(i)
(ii)
(2)
(3)
(4)
352 [RSBC 1996]
is about to begin receiving a pension or other prescribed benefit, or
is considering entering into an agreement respecting the payment of
a phased retirement benefit described in section 38.1 [phased
retirement benefit],
the prescribed information;
(e) to a member of a multi-employer plan who wishes to make a transfer under
section 33 (3) or (4), the prescribed information;
(f)
to the surviving spouse or designated beneficiary or personal representative
of the estate of a deceased member or former member who is entitled to a
benefit, the prescribed information;
(g) to a person referred to in paragraph (c), (d), (e) or (f) who has submitted a
written request for it, the data used to calculate any benefits specified in the
respective information referred to in that paragraph;
(h) to each member and former member on the termination or winding up of
the plan, the prescribed information.
The administrator must provide all information under subsection (1) without
charge.
In subsections (4) to (7) “document” includes part of a document.
Within 10 working days after receipt of a written request and without charge, the
administrator must permit a person entitled to a benefit, or the spouse or a
designated beneficiary or agent of the person entitled to a benefit, to examine the
following:
(a) a provision of the pension plan that was in force on any date included in a
period during which that person, or the person through whom the benefit
derives, was a member or, if that person is a former member, that otherwise
affects the benefits;
(b) any document that concerns conditions of that person’s employment and
that contains provisions relating to the plan;
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PENSION BENEFITS STANDARDS ACT
(c)
any trust deed or agreement, insurance contract, bylaw or resolution
relating to the plan;
(d) any agreement relating to the investment of the pension fund of the plan;
(d.1) the statement of investment policies and procedures respecting the plan;
(ADD)
Jul
15/99
(SUB)
Jul
15/99
(SUB)
Jul
15/99
(e)
(5)
(6)
(7)
the 3 most recent returns filed with the superintendent under section 9 (3)
(a);
(f)
the 2 most recent actuarial valuation reports filed with the superintendent
under section 9 (3) (b);
(g) any prescribed document.
Unless a different agreement is reached between the administrator and the person
requesting the examination under subsection (4), the examination must take place
during regular working hours, as follows:
(a) if the person requests that the examination take place at the establishment
of the administrator nearest to that person’s residence, at that
establishment;
(b) if no request is made under paragraph (a), at the place where the plan is
administered.
Instead of permitting the examination under subsection (4), the administrator
may, without charge and within the period referred to in that subsection, provide
a copy of the document that the person has requested to examine.
The administrator is not obliged to comply with subsection (4) or (6) in respect of
any person if the administrator has already complied with either of those
subsections in respect of that person within the 12 months immediately preceding
the request.
1991-15-10; 1998-42-38; 1999-41-5; 2008-30-62 (B.C. Reg. 399/2008).
(SUB)
Jul
15/99
Retention of records
11.
An administrator, or any other person responsible for the administration of a
pension plan, who has possession or custody of any record respecting the plan
must retain the record as follows:
(a) in the case of a record relating to a person entitled to benefits under the
pension plan, for at least 6 years after the date all rights or entitlements of
the person under the pension plan were paid, settled or extinguished;
(b) in the case of a document that creates or supports the pension plan, or any
previously created document, for at least 6 years after the later of
(i)
the date on which the last assets of the pension fund were
distributed, and
(ii) the date on which the winding up of the pension plan is approved by
the regulatory authority responsible for pensions;
(c) in the case of a record not described in paragraph (a) or (b), for at least 6
years after the date of the last transaction to which the record relates.
1999-41-6.
Effect of trust on participating employers
12.
352 [RSBC 1996]
Despite any other law, if a multi-employer plan has been established by or under
a trust, the participating employers of the plan are bound by the instrument
establishing the trust and by any amendments to that instrument, whether or not
they were parties to an agreement under which the trust was established or
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PENSION BENEFITS STANDARDS ACT
amended.
1991-15-12.
Information from non-administrator employer
13.
(1)
(2)
(3)
(4)
(5)
(6)
On the written request of an administrator and within a reasonable period
specified in the request, a non-administrator employer must provide the
administrator with any information or records required by the administrator in
order to comply with the plan and to discharge the administrator’s responsibilities
under section 8.
The request under subsection (1) must specifically identify the information or
records required.
If the non-administrator employer does not provide the information or records
requested within the period specified in the request, the administrator may apply
to the Supreme Court for an order to compel provision of the information or
records.
The Supreme Court may make the order, subject to any conditions the court
considers appropriate, if the court is satisfied that
(a) the information or records are in the possession of or under the control of
the non-administrator employer, and
(b) the information or records are required for the purposes of subsection (1).
If the non-administrator employer requests that any records provided under
subsection (1) be returned, the administrator must return those records within a
reasonable period.
The administrator may make copies of or take extracts from any records provided
under subsection (1).
1991-15-13.
352 [RSBC 1996]
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PENSION BENEFITS STANDARDS ACT
PART 2 – Registration and Amendment of Pension Plans
Registration of plans
14. (1) An administrator of a pension plan must apply for registration of the pension plan
by filing an application with the superintendent.
(2) An application filed under subsection (1) must be accompanied by the following:
(a) a copy, certified by the administrator to be a true copy, of
(i)
the pension plan,
(ii) any document that creates the plan or under which the plan is
constituted,
(iii) any trust deed or agreement, insurance contract, bylaw or resolution
relating to the plan, and
(REP)
(iv) Repealed. [1998-42-39]
Jul
31/98
(AM)
Jul
31/98
(v)
(b)
(AM)
Jul
31/98
any other prescribed document;
a copy of
(i)
the actuarial valuation report referred to in section 9 (3) (b), and
(ii) the explanation or summary referred to in section 10 (1) (a) (i);
a statement in the prescribed form that, in the administrator’s opinion, the
plan complies with this Act and the regulations.
An application under subsection (1) must be filed no later than 60 days after the
establishment of the plan.
The application for registration must be in the form required by the
superintendent and must contain the information referred to in section 9 (3) (a).
Unless the superintendent is of the opinion that the plan does not comply with
this Act and the regulations, the superintendent must
(a) register the plan filed under subsection (1) for registration, and
(b) issue to the administrator a certificate of registration for the plan.
(c)
(3)
(4)
(5)
1991-15-14; 1998-42-39.
(AM)
Jul
31/98
Amendment to plans
15. (1) If an amendment is made
(a) to a pension plan that is registered or in respect of which an application for
registration is pending, or
(b) to any document referred to in section 14 (2) (a) (ii), (iii) or (v),
(SUB)
Jul
15/99
(2)
(AM)
Jul
15/99
(3)
352 [RSBC 1996]
an administrator must, within 60 days after the amendment is made, file a copy,
certified by the administrator to be a true copy, of the amendment to the plan or
document, together with a statement in the prescribed form that, in the opinion of
the administrator the plan or document as amended complies with this Act and
the regulations.
If a new document of the type referred to in section 14 (2) (a) (ii), (iii) or (v) is
made, the new document must be filed in the same manner as required by
subsection (1) of this section.
Unless the superintendent is of the opinion that an amendment filed under
subsection (1) (a) does not comply with this Act and the regulations, the
Page 17 of 54
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(ADD)
Jul
15/99
(4)
(AM)
Dec
01/07
(5)
superintendent must
(a) register the amendment filed for registration under subsection (1), and
(b) issue to the administrator a notice of registration for the amendment.
For the purposes of this section, the superintendent, with the consent of the plan
administrator who filed the plan amendment, may sever from a plan amendment
filed under subsection (1) (a) that portion of the amendment that does not comply
with this Act and the regulations, and register in accordance with subsection (3)
the portion of the amendment that remains.
The administrator must ensure that an amendment to a document referred to in
section 14 (2) (a) (ii), (iii) or (v) does not contain any provision that a pension
plan is prohibited under this Act from containing.
1991-15-15; 1998-42-40; 1999-41-7; 2007-14-202 (B.C. Reg. 354/2007).
No administration of unregistered
plan or amendment
16. (1) An administrator must not administer a pension plan unless
(a) the plan is registered, or
(b) subject to sections 20 (6) and 21 (4), the application for registration has
been filed and the administrator has not received a written notice that the
superintendent refuses to register the plan.
(2) An administrator must not administer a pension plan in a manner that reflects an
amendment to the plan unless
(a) the amendment is registered, or
(SUB)
(b) subject to sections 20 (6) and 21 (4), the amendment has been filed and the
Jul
administrator has not received written notice that the superintendent
15/99
(i)
refuses to register the amendment, or
(ii) is of the opinion that the amendment does not comply with this Act
and the regulations.
(ADD)
(3) For the purposes of subsection (2), “amendment” means the amendment as filed
Jul
under section 15 or that portion of the amendment not severed by the
15/99
superintendent under subsection (4) of that section.
1991-15-16; 1999-41-8.
Effective date of plan or amendment
17.
A pension plan or an amendment to a plan may be made effective
(a)
on a date before the plan’s registration, or
(b)
on or after the date of application for the plan’s registration.
1991-15-17.
Transfer agreements
18.
(1)
(2)
(3)
352 [RSBC 1996]
In this section, “transfer agreement” means an agreement between the
administrators of 2 or more pension plans respecting the transfer between the
plans of money or benefits in respect of individual members or former members.
Within 60 days after a transfer agreement is entered into, an administrator must
file with the superintendent a certified copy of any transfer agreement relating to
the pension plans.
The administrator must ensure the transfer agreement does not contain any
provision relating to a benefit that is subject to this Act and which a pension plan
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PENSION BENEFITS STANDARDS ACT
is prohibited by this Act from containing.
1991-15-18.
Cancellation of registration of plan
19. (1) The superintendent may cancel the registration of a pension plan
(a) that does not comply with this Act or the regulations, or
(AM)
(b) in respect of which the administrator has not complied with this Act, the
Jul
regulations, the plan or a direction issued under section 71.
15/99
(2) The superintendent may cancel the registration of a plan that has been terminated
and wound up in accordance with this Act and the regulations.
(3) A cancellation under this section has effect from a date, not earlier than the date
on which the non-compliance under subsection (1) occurred or began, as
determined by the superintendent.
1991-15-19; 1999-41-9.
Objection to refusal to register or
cancellation of registration
(SUB)
20. (1) If the superintendent
Jul
15/99
(a)
(2)
(AM)
Jul
15/99
(3)
(AM)
Jul
15/99
(4)
(AM)
Jul
15/99
(5)
(6)
refuses to register a pension plan or a plan amendment filed for
registration,
(b) cancels a registration under section 19 (1), or
(c) issues a direction under section 71,
the superintendent must promptly serve on the administrator a written notification
of the refusal to register, the cancellation of the registration or the issuance of the
direction, as the case may be, and give reasons for the decision.
In the case of a cancellation of registration, the notification must specify the date
referred to in section 19 (3).
Within 60 days after service of the notification under subsection (1), the
administrator may serve on the superintendent a notice of objection setting out
the reasons for the objection and all relevant facts.
On receipt of the notice of objection under subsection (3), the superintendent
must promptly reconsider the refusal, cancellation or direction and rescind, vary
or confirm the previous decision or direction and serve on the administrator a
written notification of that decision.
A notification under subsection (4) must be accompanied by reasons, unless the
decision is to register the plan or plan amendment or to rescind the cancellation or
direction.
If an administrator who has been served a notification under subsection (1) serves
a written notice on the superintendent stating an intention to serve a notice of
objection under subsection (3), the administrator may, despite the
superintendent’s decision,
(a) administer the plan, or
(b) administer the plan in a manner that reflects the amendment until the
earlier of
(i)
a decision of the superintendent under subsection (4), and
(ii) the expiration of the period referred to in subsection (3) without the
notice of objection having been served.
1991-15-20; 1999-41-10.
Appeal to Commercial Appeals Commission
352 [RSBC 1996]
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(SUB)
Jun
01/04
21.
(ADD)
Jun
01/04
(REP)
Jun
01/04
(1)
An administrator may appeal a decision of the superintendent under section 20
(4) to the tribunal, and, unless otherwise provided for in this Act, sections 242.2
and 242.3 of the Financial Institutions Act apply.
(1.1) Despite section 242.2 (2) of the Financial Institutions Act, an appeal under
subsection (1) of this section operates as a stay unless an order is made under
section 242.2 (10) (a) of the Financial Institutions Act.
(2) The administrator must provide a copy of the notice of appeal under subsection
(1) to the superintendent.
(3) Repealed. [2003-51-42]
(4)
(AM)
Jun
01/04
If an administrator who has been served a notification under section 20 (4) serves
a written notice on the superintendent stating an intention to appeal under this
section, the administrator may, despite the superintendent’s decision,
(a) administer the plan, or
(b) administer the plan in a manner that reflects the amendment until the
earlier of
(i)
a decision of the tribunal, and
(ii)
(ADD)
Jun
01/04
(5)
the expiration of the period referred to in subsection (1) without the
appeal having been made.
On an appeal referred to in subsection (1), the tribunal may make an order
requiring the superintendent to register the plan or amendment, or rescind the
cancellation of the registration of the plan, or make any other order the tribunal
considers appropriate.
1991-15-21; 2003-51-42.
Public access to information
22.
(1)
(2)
(3)
Subject to this section, all pension plan documents filed with the superintendent
must be available for examination by any person at the office of the
superintendent during regular office hours.
Subsection (1) does not apply to a document that contains information about the
pension entitlement of a specific individual unless that individual gives written
permission for the information to be released.
If an employer alleges to the superintendent that public access to information in a
document could have an adverse effect on the employer’s competitive position,
the superintendent may, on being satisfied of the correctness of the allegation,
decline to make the document available for examination.
1991-15-22.
352 [RSBC 1996]
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PENSION BENEFITS STANDARDS ACT
PART 3 – Provisions Required in Pension Plans
Requirements of pension plans
23. (1) A pension plan for members and former members and their spouses, designated
beneficiaries and estates must provide for
(a) benefits, contributions and other entitlements and obligations required by
this Part, or
(b) benefits, contributions and other entitlements and obligations that are more
favourable, having regard to the intent of this Act, than those required by
this Part.
(2) The plan must incorporate the appropriate definition and interpretation provisions
of section 1 that are necessary to ensure the plan’s interpretation in accordance
with this Act.
(3) Despite subsections (1) and (2) but subject to subsections (4) and (5), a plan is not
required to include or incorporate
(a) a provision of this Part whose inclusion in the plan is indicated as being
optional,
(b) a provision of this Part which, in the opinion of the superintendent, is not
and will not be applicable to the particular plan in question and whose
exclusion from that plan is permitted by the superintendent, or
(SUB)
(c) provisions of sections 25 (2), (4), (5), (7) and (8), 29.1, 30 (11), 33 (1.1),
Jul
(2.1), (3.1), (5.1), (5.2) and (6), 35 (6) (a), 37 (1) and (4), 39 (2), 41 (1) and
15/99
(4), 43 (4) and 44 (4) and (5).
(4) To the extent that the plan does not include a provision required by this Part, the
plan is deemed to make that provision so as to make the plan comply with this
Part.
(5) The absence from the plan of provisions referred to in subsection (3) (b) or (c)
does not affect the application or possible application of those provisions to the
plan.
1991-15-23; 1999-41-11.
General requirements of pension plans
24. (1) Subject to this Part, a pension plan must provide for the following:
(a) the administration and maintenance of the plan;
(b) the means of paying the administration expenses;
(c) the conditions for membership in the plan;
(d) benefits and entitlements on
(i)
the termination of membership,
(ii) the death of a member or former member,
(iii) pension commencement, and
(iv) the termination of the plan;
(e) the deadline for choosing any option and the consequences of not meeting
the deadline;
(f)
the matters prescribed under section 31 (4) with respect to interest;
(g) the treatment of surplus assets during the continuation of the plan;
(h) the determination of benefits, member and employer contributions and the
allocation of contributions using formulas that comply with the prescribed
criteria;
(ADD)
(i)
Jul
352 [RSBC 1996]
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15/99
(2)
(3)
the method for conversion of optional ancillary contributions to optional
ancillary benefits upon retirement, termination of membership, pension
commencement, pre-retirement death and winding up of the plan.
The plan must not provide for or permit any of the following:
(a) different rates or amounts of contributions by the members based on
differences in sex;
(b) different pensions, annuities or benefits based on differences in sex;
(c) different options as to pensions, annuities or benefits based on differences
in sex;
(d) the inclusion in or exclusion from membership in the pension plan of an
employee on the basis of the sex of the employee.
In order to comply with subsection (2), the plan may
(a) use a prescribed method of calculation or valuation,
(b) use a unisex mortality table, or
(c) provide for employer contributions that vary according to the sex of the
employee.
1991-15-24; 1999-41-12.
Entitlement of employees to join plan
25. (1) Subject to subsection (3), every employee in a prescribed class of employees for
whom a pension plan is maintained is, on application, eligible to become a
member of the pension plan after completing 2 years of continuous employment
with the employer, which period may begin before January 1, 1993, with earnings
of not less than 35% of the Year’s Maximum Pensionable Earnings in each of 2
consecutive calendar years.
(2) For the purposes of subsection (1), the prescribed class of employees may consist
of employees within that class who are employed at a particular establishment of
the employer.
(AM)
(3) For the purposes of subsection (1), a multi-employer plan may require not more
Jan
than 2 years of continuous employment, which period may begin before
01/98
January 1, 1993, in which the employee completes at least 350 hours of
employment with one or more of the participating employers with earnings of not
less than 35% of the Year’s Maximum Pensionable Earnings in each of 2
consecutive fiscal years.
(4) If a group of employees in a prescribed class of employees are covered by the
plan but the employees in that group are employed other than on a basis that the
employer considers to be full time, the employer may establish a separate plan for
that group.
(5) The separate plan under subsection (4) must be comparable to the plan covering
employees in the prescribed class who are considered to be employed on a full
time basis,
(a) in the case of a defined benefit plan, in terms of the value of the benefits
provided, or
(b) in the case of a defined contribution plan, in terms of the rates or amounts
of contributions,
taking into account the differences in the number of hours worked in the relevant
period of employment.
(6) Despite subsection (1), the plan may provide that an employee must be a member
as part of the terms and conditions of employment.
(7) If an employee is eligible to join 2 or more of the employer’s plans because he or
she is in more than one of the prescribed classes of employees, the plans may
352 [RSBC 1996]
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PENSION BENEFITS STANDARDS ACT
(8)
limit the employee’s eligibility for membership to only one of those plans.
A plan must not require, as part of the terms and conditions of employment or
prospective employment, that a person transfer to that plan, or any other plan, any
of the commuted value of a benefit under another plan.
1991-15-25; 1999-41-13.
Vesting of pension
26. (1) If a member completes 2 years of continuous plan membership, which period
may begin before January 1, 1998, and terminates his or her membership while
employed in British Columbia, there immediately vests in the member, on that
termination, an entitlement to receive a pension in respect of his or her
membership in the plan.
(REP)
(2) Repealed. [1999-41-14]
(SUB)
Jan
01/98
Jan
01/98
(3)
For the purposes of this Act, a benefit vests when the person acquires an
unconditional entitlement under the pension plan to receive the benefit, whether
at the present time or in the future.
1991-15-26; RS1996(Supp)-352-1; 1991-15-79; 1999-41-14.
(AM)
Jan
01/98
Vesting at pensionable age
27.
If a member has reached pensionable age and terminates membership while
employed in British Columbia, there immediately vests in the member on that
termination an entitlement to receive a pension in respect of his or her
membership in the plan.
1991-15-27; 1999-41-15.
(AM)
Jan
01/98
Vesting on termination of plan
28.
On the termination of a pension plan, there immediately vests in each member an
entitlement to receive a pension in respect of his or her membership in the plan.
1991-15-28; 1999-41-16.
(SUB)
Jan
01/98
Amount and terms of pension vested
29. (1) The pension payable under section 26 (1) or 27 in respect of employment in
British Columbia or in a designated province, other than the portion accruing
from additional voluntary contributions, must not be less than the pension that the
terms of the plan provide for that employment at the date of the termination of
membership.
(2) Subject to any regulations made with reference to section 45 (1), the pension
payable under section 28, other than the portion accruing from additional
voluntary contributions, must not be less than the pension payable under
subsection (1) of this section.
1999-41-17.
(ADD)
Jul
15/99
Optional ancillary benefits
29.1 (1) The conversion of optional ancillary contributions to optional ancillary benefits
must be done on the basis of actuarial assumptions and methods that are
appropriate and in accordance with accepted actuarial practice.
(2) If a member’s accumulated optional ancillary contributions exceed the amount
that can be converted to optional ancillary benefits upon retirement, termination
of membership, pension commencement, preretirement death or winding up of
the plan, a plan may require forfeiture of the unused portion.
352 [RSBC 1996]
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1999-41-18.
Locking in commuted value of pension
30. (1) Subject to this section and sections 32, 34 (4) and (6) and 40,
(a) a member or former member must not withdraw any of the commuted
value of a pension in respect of membership on and after the initial
qualification date, and
(b) there must not be surrendered or commuted,
(i)
during the lifetime of a member or former member, a pension in
respect of membership on and after the initial qualification date or
any interest in that pension, or
(ii) during the lifetime of a surviving spouse entitled to a pension under
section 34 or 35, that pension or any interest in that pension.
(2) Subsection (1) does not apply to any part of a pension accruing from additional
voluntary contributions.
(ADD)
(2.1) Subsection (1) does not apply to any part of the pension accruing from optional
Jul
defined benefit contributions made in respect of membership before the initial
15/99
qualification date.
(ADD)
(2.2) Subject to subsection (12), subsection (1) applies to a spouse or former spouse
Jul
who receives a share of the pension under Part 6 of the Family Relations Act.
15/99
(3) The commuted value locked in under subsection (1) must be applied towards the
provision of the pension.
(4) A pension plan must provide that, at the member’s request, all of the member’s
contributions to the plan be returned, with interest, if
(a) a member has terminated membership in the plan while employed in
British Columbia,
(b) the termination was not due to becoming a member of another plan to
which the employer was required to contribute, and
(c) an entitlement to receive a pension did not vest on the termination.
(5) If
(a) a pension has vested in a former member in respect of membership on and
after January 1, 1993,
(b) the former member has terminated membership in the plan, and
(c) an entitlement to receive a pension did not vest in respect of contributions
to the plan made before January 1, 1993,
the member’s contributions made before that date must be returned, with interest,
at the member’s request.
(6) A multi-employer plan must provide that, at the member’s request, all of a
member’s contributions to the plan be returned, with interest, if
(a) the member of the multi-employer plan has not completed at least 350
hours of employment during any period of 2 consecutive completed fiscal
years of the plan, and
(b) an entitlement to receive a pension has not vested and would not have
vested had the member terminated membership at the end of that period.
(7) A multi-employer plan may require that all of a member’s contributions to the
plan be returned, with interest, if
(a) the member is no longer employed by any participating employer or is no
longer in a class of employees referred to in section 25 (1) that is covered
by the plan, and
(b) an entitlement to receive a pension has not vested and would not have
vested had the member terminated membership.
352 [RSBC 1996]
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(8)
If
(a)
(b)
a registered amendment to a plan, or
a plan that has been adopted and registered in place of another plan,
provides for
(c)
(AM)
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15/99
(ADD)
Dec
17/99
(ADD)
Dec
17/99
the assumption by the employer of liability for the funding of accrued
benefits that were previously funded by member contributions and interest,
and
(d) the return of those member contributions and interest representing those
accrued benefits,
those member contributions and interest may be paid to the member or former
member.
(9) If a member terminates membership in a plan to which the employer is required
to contribute due to becoming a member of another plan to which the same
employer is required to contribute, all the member’s contributions to the first plan
must be returned, with interest, if
(a) the member no longer has membership in any plan to which the employer
is required to contribute, and
(b) an entitlement to receive a pension has not vested in the member.
(10) Subject to section 58 (4), a pension plan that has not terminated and which
provides for earlier vesting of a pension entitlement than is required under section
26 (1) may permit a payment of the commuted value to a person
(a) who terminates membership under the plan before completing the period
referred to in section 26 (1), and
(b) in whom an entitlement to receive a pension under the plan has vested.
(11) A plan member or former member, age 65 or over, may commute, on the
prescribed basis and in the prescribed manner, his or her total entitlement in every
defined contribution pension plan, RRSP referred to in section 33 (2) (b) and
prescribed retirement income fund if the sum of each plan, RRSP and fund is, in
the aggregate, less than the prescribed amount.
(12) Subsection (1) does not apply to a member, former member, spouse, surviving
spouse or former spouse who
(a) has been absent from Canada for 2 or more years, and
(b) has become a non-resident of Canada as determined for the purposes of the
Income Tax Act (Canada).
1991-15-30; 1999-41-19.
Interest on member contributions
31. (1) Subject to subsections (2) and (3), if
(a) member contributions were required under a defined benefit plan in order
to attain benefits, or
(AM)
(b) additional voluntary contributions or optional defined benefit contributions
Jul
have been made,
15/99
interest, gains and losses must be applied to the contributions.
(2) In the case of a defined contribution plan or a defined contribution provision of a
defined benefit plan, employer and member contributions must be credited or
debited with the interest, gains and losses that can reasonably be attributed to the
operation of the pension fund holding those contributions for the plan.
(AM)
(3) A defined benefit plan may provide that, if additional voluntary contributions or
Jul
optional defined benefit contributions have been made to the plan, the additional
15/99
352 [RSBC 1996]
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PENSION BENEFITS STANDARDS ACT
(4)
voluntary contributions or optional defined benefit contributions, as the case may
be, are to be credited or debited with the interest, gains and losses that can
reasonably be attributed to the operation of the pension fund holding those
contributions for the plan.
Interest, gains and losses referred to in this section must be calculated in the
prescribed manner and applied to contributions at the prescribed rates and
prescribed times.
1991-15-31; 1999-41-20.
Minimum employer contributions
for funding of pension
32. (1) If a member is required to make contributions in order to attain a pension under a
defined benefit plan, not more than 1/2 of the commuted value of the pension in
respect of membership on and after January 1, 1993 may be provided by those
contributions, with interest, made on or after that date.
(2) If the value of the member’s contributions made on or after January 1, 1993, with
interest, exceeds 1/2 of the commuted value of the pension in respect of
membership on and after January 1, 1993, the amount of the excess, at the option
of the member, must be allocated and distributed in accordance with subsection
(3)
(a) on the termination of a member’s membership in a defined benefit plan,
(b) on the termination of a defined benefit plan, or
(c) on the commencement of a member’s pension from a defined benefit plan.
(ADD)
(2.1) Subsections (1) and (2) apply to improvements in, or the purchase of, benefits
Jul
related to past service before or after January 1, 1993 under a defined benefit plan
15/99
unless the benefit improvement is provided entirely from the member’s optional
defined benefit contributions.
(3) For the purposes of subsection (2), excess contributions must be dealt with in one
or more of the following ways:
(a) returned to the member;
(b) transferred to another pension plan, if and to the extent that the other plan
permits the transfer;
(c) transferred to an RRSP;
(d) transferred to an insurance company or prescribed savings institution to
purchase a deferred pension or other prescribed retirement income fund;
(e) used to increase the amount of the pension, if and to the extent that the plan
provides for an increase.
(ADD)
(3.1) If a plan, or part of a plan, is converted from a defined benefit provision to a
Jul
defined contribution provision and the conversion applies to all service,
15/99
subsections (1), (2), (2.1) and (3) are to be applied at the time of the conversion
for all members affected by the conversion.
(4) Contributions made in respect of a defined contribution provision of a defined
benefit plan and any part of the commuted value of the pension deriving from
those contributions must not be taken into account for the purposes of subsections
(1) and (2).
(5) For the purposes of subsections (1) and (2), a defined benefit plan may treat
(a) contributions to a supplemental defined benefit pension plan as aggregated
with contributions made to the plan to which it is supplemental, and
(b) the commuted value deriving from the contributions to the supplemental
pension plan as aggregated with the commuted value under the principal
plan.
352 [RSBC 1996]
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PENSION BENEFITS STANDARDS ACT
(6)
(AM)
Jul
15/99
(7)
(8)
If a multi-employer defined benefit plan provides that a member, who has not
accrued the maximum pension permitted under the plan in a fiscal year of the
plan, is permitted to make contributions in order to increase the member’s
pension accrual up to the maximum permitted for that year under the plan,
(a) those contributions, with interest, and
(b) the commuted value deriving from those contributions and interest
must not be taken into account for the purposes of subsection (1) or (2).
Subsections (1) and (2) do not apply to benefits that result from additional
voluntary contributions or optional defined benefit contributions.
This section does not apply to a public sector pension plan.
1991-15-32; 1999-41-21.
Portability of commuted
value of benefits
(SUB)
33. (1) If
Jul
15/99
(a)
(ADD)
Jul
15/99
(ADD)
Jul
15/99
(AM)
Jul
15/99
(ADD)
Jul
15/99
352 [RSBC 1996]
a member terminates membership in a pension plan, or the plan is
terminated,
(i)
on or after the initial qualification date, and
(ii) while the member is employed in British Columbia, and
(b) an entitlement to receive a pension vests in the member on that
termination,
the member may make a transfer in accordance with subsections (2) and (2.1), in
the manner and to the extent prescribed, of the whole of the commuted value of
the pension.
(1.1) Despite subsection (1), a defined benefit plan may restrict the transfer if the
termination referred to in subsection (1) occurs on or after the date on which the
member reaches the age of 55 years.
(2) The transfer under subsection (1) may be made to one or more of the following:
(a) another pension plan, if and to the extent that the other plan permits the
transfer, on the condition that the eventual payment from the other plan be
made only in the form of a pension that would otherwise be required by
this Act or a benefit referred to in section 40 (2);
(b) an RRSP on the conditions prescribed under section 74 (2) (d);
(c) an insurance company or prescribed savings institution to purchase a
deferred pension or other prescribed retirement income fund that
(i)
is not commutable,
(ii) will not begin earlier than the earliest date that the pension could
have begun under the plan, and
(iii) will be in the form referred to in paragraph (a).
(2.1) Despite subsection (2), a transfer of the commuted value of benefits in respect of
membership before January 1, 1993 may, if the plan so provides, be transferred to
an RRSP, without conditions, or may be paid to the member.
(3) Subject to subsection (3.1), a member of a multi-employer plan who does not
complete at least 350 hours of employment during any period of 2 consecutive
completed fiscal years of the plan may, in the manner and to the extent prescribed
in relation to subsections (1), (2) and (2.1), make the transfer referred to in those
subsections.
(3.1) A multi-employer plan may provide that subsection (3) does not apply to the plan
if
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PENSION BENEFITS STANDARDS ACT
(a)
the member accrues further benefits in the plan after the period referred to
in subsection (3), and
(b) an application for transfer under subsection (3) was not received by the
administrator before the accrual of further benefits.
(4) A multi-employer plan may provide that a member who is no longer employed by
a participating employer or in a class of employees referred to in section 25 (1)
that is covered by the plan may, in the manner and to the extent prescribed in
relation to subsections (1), (2) and (2.1) of this section, make the transfer referred
to in those subsections.
(5) Despite sections 26 to 28 and subsections (1), (3) and (4) of this section, the plan
may provide that the member must make the transfers referred to in those sections
and subsections if the commuted value of the pension does not exceed the
prescribed amount.
(5.1) Despite section 26 and subsections (1), (3) and (4) of this section, a defined
contribution plan may provide that a member
(a) who terminates membership in the plan,
(b) in whom an entitlement to receive a pension vests on that termination, and
(c) who is not eligible for an immediate pension
must, in the manner and to the extent prescribed in relation to subsections (1), (2)
and (2.1), make the transfer referred to in those subsections.
(5.2) Despite section 28 and subsections (1), (3) and (4) of this section, a plan may
provide that upon plan termination a member in whom a pension vests on that
termination and who is not eligible for an immediate pension must, in the manner
and to the extent prescribed in relation to the transfer referred to in subsections
(1), (2) and (2.1), make the transfer.
(6) On making the transfer under subsection (1), (3) or (4), the member is not entitled
to any further benefits in respect of membership before the transfer.
(7) If a member terminates membership in a pension plan due to becoming a member
of another plan to which the employer is required to contribute and the first plan
has not been terminated, the plan may postpone entitlement to transfer the
commuted value of the pension under subsection (1) until the member terminates
membership in that other plan or that other plan is terminated, whichever occurs
first.
(8) If a person elects to make, or a plan requires, a transfer under this section, section
34 of this Act or Part 6 of the Family Relations Act, the administrator must make
the transfer within 60 days after completing and filing with the administrator all
documents required to authorize the transfer, including evidence required under
section 65 of this Act.
(AM)
Jul
15/99
(AM)
Jul
15/99
(ADD)
Jul
15/99
(ADD)
Jul
15/99
(ADD)
Jul
15/99
1991-15-33; 1992-77-9; 1994-23-12; 1999-41-22.
Preretirement survivor benefits
34. (1) If a member or former member dies before pension commencement, benefits are
payable,
(a) subject to this section and section 40 (1) and (2), by way of a pension to the
surviving spouse, or
(b) if there is no surviving spouse, or if the administrator receives from the
surviving spouse a statement in the prescribed form that waives the spousal
entitlement under paragraph (a), by way of a lump sum payment to
(i)
the designated beneficiary, or
(ii) the personal representative of the estate in his or her representative
capacity if there is no valid designation of beneficiary.
352 [RSBC 1996]
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PENSION BENEFITS STANDARDS ACT
(2)
(AM)
Jul
15/99
(AM)
Jul
15/99
In the case of a defined benefit plan, the commuted value of the pension to the
surviving spouse under subsection (1) (a) or the amount of the lump sum payable
to the designated beneficiary or personal representative of the estate under
subsection (1) (b) must not be less than the sum of
(a) the value of the deceased’s contributions to the plan made before
January 1, 1993, together with interest, and
(b) the greater of the following:
(i)
60% of the commuted value of
(A) the pension in respect of the deceased’s membership on and
after January 1, 1993 if an entitlement to receive a pension
would have vested in the deceased under section 26 (1) or 27
had the deceased terminated his or her membership
immediately before death, or
(B) the pension in respect of the deceased’s membership on and
after January 1, 1993 if the plan has been terminated,
plus that value of the deceased’s contributions to the plan made on and after January 1,
1993, together with interest, that is in excess of 1/2 of the commuted value of that pension;
(ii)
(ADD)
Jul
15/99
(AM)
Jul
15/99
352 [RSBC 1996]
the deceased’s contributions to the plan made on and after January 1,
1993, together with interest.
(3) In the case of a defined contribution plan, the commuted value of the pension to
the surviving spouse under subsection (1) (a) or the amount of the lump sum
payable to the designated beneficiary or personal representative of the estate
under subsection (1) (b) must not be less than the sum of
(a) 60% of the value of the employer’s contributions to the plan made on or
after January 1, 1993, together with interest, if an entitlement to receive a
pension would have vested in the deceased under section 26 (1) or 27 had
the deceased terminated his or her membership immediately before death
or if the plan has been terminated, and
(b) the deceased’s contributions to the plan, together with interest.
(4) The pension payable to the surviving spouse must be commuted if
(a) the plan has been terminated and the deceased did not meet the
requirements of section 26 (1), or
(b) an entitlement to receive a pension would not have vested in the deceased
as set out in subsection (2) (b) (i) (A) or (3) (a).
(4.1) Subsection (4) does not apply to a surviving spouse if an entitlement to receive a
pension would have vested in the deceased earlier than as required by section 26
or 27.
(5) The surviving spouse may transfer the whole of the commuted value of the
pension in accordance with the conditions specified in and in relation to section
33 (1), (1.1), (2) and (2.1).
(6) A plan may provide that the surviving spouse must make the transfer set out in
subsection (5).
(7) The surviving spouse has the same options in relation to the excess value of
contributions, together with interest, referred to in subsection (2) (b) (i) as the
deceased would have had under section 32 (3), including the option of a lump
sum payment to the spouse.
(8) If a spouse dies before pension commencement without having elected or without
becoming entitled to make the transfer under subsection (5), an amount equal to
at least the amount of the member’s contributions, together with interest, must be
paid to the spouse’s designated beneficiary or, if there is no designated
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PENSION BENEFITS STANDARDS ACT
beneficiary living, to the spouse’s estate.
A surviving spouse may commute any part of a pension payable to the surviving
spouse that arises from additional voluntary contributions.
(10) If a pension plan provides a right to commute any part of a pension in the event of
termination of membership in the plan, a surviving spouse may commute the part
of the pension that arises from contributions by the member and by the employer
that were made before January 1, 1993.
(11) If a pension plan permits a payment of the commuted value of the pension to the
deceased under the conditions specified in section 30 (10), the surviving spouse
may receive the commuted value or may make a transfer as specified under
subsection (5).
(12) This section does not apply with respect to a spouse or former spouse who has
already received a share of the pension under Part 5 or 6 of the Family Relations
Act.
(9)
(ADD)
Jul
15/99
1991-15-34; 1994-23-13; 1999-41-23.
Postretirement survivor benefits
35. (1) Despite anything in this Part and except as provided in this section and section 40
(1), the pension payable to a former member who had a spouse at the date the
pension commenced is to be a joint pension payable during the joint lives of the
former member and the spouse and which, after the death of either, continues to
be payable to the survivor for life.
(2) A pension plan may provide for the joint pension to the survivor to be decreased
by not more than 40% or, subject to subsection (3), to be actuarially adjusted.
(3) The joint pension may be adjusted only if the pension’s actuarial present value
following the adjustment is not less than the actuarial present value of the normal
form of pension under the plan that would be payable to the former member from
his or her pensionable age were it not for this section and the provision in the plan
corresponding to this section.
(AM)
(4) If the pension plan provides for alternative forms of payment, the former member
Jul
may receive a pension in a form acceptable under the plan but that does not
15/99
comply with this section if the administrator receives, before pension
commencement, a statement by the spouse in the prescribed form that
(a) the spouse has reviewed the information referred to in section 10 (1) (d)
and is aware of the spousal entitlements under this section,
(b) waives the spousal entitlements, and
(c) is signed by the spouse in the presence of a witness and outside the
presence of the member or former member.
(5) The statement under subsection (4) is not valid if that statement is made more
than 90 days before pension commencement.
(SUB)
(6) This section does not apply to a spouse or former spouse in respect of whom the
Jul
administrator, before pension commencement, receives notice of a division of the
15/99
pension entitlement arising under
(a) a separation agreement, or
(b) an order referred to in section 64 affecting the pension.
(ADD)
(7) This section does not apply if payment of the pension began before January 1,
Jul
1993.
15/99
1991-15-35; 1999-41-24.
Surviving spouse’s change in status
352 [RSBC 1996]
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PENSION BENEFITS STANDARDS ACT
36.
A pension payable to the surviving spouse of a deceased member or former
member does not cease on the spouse’s acquiring a new spouse on or after
January 1, 1993.
1991-15-36.
Adjustments in pension for
CPP, QPP and OAS
37. (1) In this section, “CPP”, “QPP” and “OAS” mean respectively the Canada
Pension Plan (Canada), the Quebec Pension Plan (Quebec) and the Old Age
Security Act (Canada).
(2) A pension plan may provide that a member or former member may, on or before
pension commencement, elect to receive a pension, the amount of which is
adjusted by reference to benefits payable under CPP or QPP, so long as the
pension payments payable after the benefits under CPP or QPP have begun are
not less than the amount prescribed for monthly pension payments in relation to
section 40 (1).
(3) If the plan provides for the reduction of a pension because of a member’s or
former member’s entitlement to a pension under CPP or QPP, the reduction must
not exceed an amount determined by a prescribed formula.
(4) The amount of pension being paid under the plan must not be reduced in respect
of any change in the benefits being paid under CPP or QPP.
(AM)
(5) A pension plan must not provide that the pension which a person is eligible to
Dec
receive from the plan in respect of service on and after January 1, 1993 will be
17/99
reduced by any amount because of the person receiving a benefit under OAS
unless the reduced amount is an option selected by the member or former
member.
1991-15-37; 1999-41-25(b).
Age provisions in pension plans
38. (1) A pension plan must provide for
(a) a specific age, or
(b) a date by reference to a specific age,
at which a member is normally eligible to begin receiving a pension under the
plan without reduction or increase to the pension.
(2) The provision under subsection (1) must be made without taking into account any
term of the plan by which an individual member is permitted to begin receiving a
pension before or after the general membership would normally begin receiving
the pension.
(AM)
(3) Subject to this section and section 38.1, if the member continues in employment
Dec
after reaching pensionable age, the member continues to be a member on the
09/08
same basis that applied before the member reached pensionable age.
(4) The plan may
(a) set a maximum number of years of employment that can be taken into
account in determining the pension, or
(b) set a maximum amount for the pension,
and, when the member reaches that maximum, no further contributions are
payable by the member.
(5) The plan may provide that a member may choose to begin receiving a pension
from pensionable age instead of continuing to be a member under subsection (3),
in which case no further contributions are payable by the member.
(5.1)
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(ADD)
Dec
09/08
(6)
(7)
(8)
(RET)
Jun
22/07
(9)
The plan may provide for the payment of a phased retirement benefit to a member
under and in accordance with section 38.1.
A member whose plan is terminated, or who terminates membership, on or after
January 1, 1993 and in whom an entitlement to receive a pension vests in
accordance with section 26 or 28 may begin receiving, at any time on or after the
date on which the member reaches the age of 55 years, the pension that has
accrued to that time.
A pension or benefit that commences before pensionable age may be reduced in
comparison with what would have been payable at pensionable age.
The actuarial present value of the reduced pension or benefit under subsection (7)
must be at least equal to the actuarial present value of the pension or benefit
calculated
(a) from pensionable age in the case of a member who is not eligible to begin
receiving a pension without reduction earlier than pensionable age, or
(b) from an age earlier than pensionable age in the case of a member who is
eligible to begin receiving a pension without reduction at that earlier age.
A pension must commence not later than the last day on which a person is
allowed to commence receiving a pension from a registered pension plan under
the Income Tax Act (Canada).
1991-15-38; 1999-41-26; 2008-30-64; 2008-30-63 (B.C. Reg. 399/2008).
(ADD)Phased retirement benefit
Dec
09/08
38.1 (1) In this section:
"eligible person" means a member or former member who meets the requirements of
subsection (2) (a) or (b);
"phased retirement benefit" means periodic amounts payable to an eligible person
that are each equal to a portion of the periodic amounts that would be payable as a
pension to which the eligible person is entitled on reaching pensionable age;
"phased retirement period" means the period in respect of which a phased retirement
benefit is to be paid to an eligible person.
(2) Subject to this section, a plan may provide for the payment of a phased retirement
benefit to a member or former member if the member or former member
(a) is at least 60 years of age, or
(b) is
(i)
at least 55 years of age, and
(ii) entitled under the plan to receive a pension without reduction.
(3) A phased retirement benefit paid to an eligible person under and in accordance
with this section does not constitute the eligible person's pension under this Act
and must not be construed as that pension.
(4) A phased retirement benefit may only be paid from a pension plan to an eligible
person if all of the following are met:
(a) the pension plan provides for the payment of a phased retirement benefit;
(b) the pension plan has not been terminated;
(c) the eligible person enters into a written agreement for payment of the
benefit with an employer who contributes to that pension plan;
(d) if that pension plan is administered by a board of trustees, the employer
referred to in paragraph (c) has made arrangements approved by the board
of trustees to fund payment of the benefit;
(e)
352 [RSBC 1996]
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(5)
(6)
if before the phased retirement period begins the eligible person's spouse or
former spouse is entitled under section 76 (1) of the Family Relations Act
to receive from that pension plan a proportionate share of benefits paid
under that plan,
(i)
the administrator of the plan agrees in writing to continue payment
of the proportionate share of benefits, other than the proposed
phased retirement benefit, to that spouse during the proposed phased
retirement period, or
(ii) if the administrator of the plan does not agree to continue payment
of the proportionate share of those benefits to that spouse during the
proposed phased retirement period, that spouse has consented in
writing to the cessation of those payments;
(f)
during the phased retirement period, the eligible person is accruing a
pension under the pension plan and the conditions described in section
8503 (19) of the Income Tax Regulations (Canada) are satisfied.
During a phased retirement period
(a) the eligible person must continue membership in the pension plan from
which the phased retirement benefit is being paid,
(b) the administrator of the plan must not pay the pension to which the eligible
person would otherwise be entitled under section 38 (1) or which he or she
would otherwise be eligible to receive under section 38 (6),
(c) if the eligible person had commenced receiving a pension from the pension
plan referred to in paragraph (a) before the phased retirement period began,
the administrator of the plan must suspend the payment of that pension to
the eligible person, and
(d) if, in a case to which subsection (4) (e) applies, the administrator of the
plan had agreed to continue payment of the proportionate share of benefits
other than the proposed phased retirement benefit to the eligible person's
spouse or former spouse, the administrator must continue those payments.
The following rules apply when the phased retirement period ends:
(a) the pension benefit accrued during the phased retirement period is to be
treated as vested without regard to conditions as to age, period of
membership in the pension plan or period of employment;
(b) the pension to which the eligible person is entitled under section 38 (1) or
which he or she is eligible to receive under section 38 (6) is to be
calculated without regard to the amount of the phased retirement benefit
received.
2008-30-65 (B.C. Reg. 399/2008).
Payment or transfer of contributions
39.
(1)
If a person becomes entitled to have returned any contributions made to a pension
plan, the payment of the contributions, with interest, must be made within 60
days after the later of
(a) the event giving rise to the payment, or
(b)
(2)
352 [RSBC 1996]
the completion and filing with the administrator of all documents required
to authorize the making of the payment, including evidence required under
section 65.
Despite anything in this Act, an entitlement under this Act to have contributions,
with interest, paid to a person or transferred from the plan applies only in relation
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to contributions, with interest, that have not previously been paid out of or
transferred from the plan.
1991-15-39.
Permitted variations in benefits
40. (1) A pension plan must allow for payment to a former member, or to the surviving
spouse of a deceased member or former member, of an amount equal to the
commuted value of the pension to which the former member or surviving spouse
is entitled if
(a) the monthly pension payments that would be payable to the former
member or surviving spouse at or after pensionable age are less than the
prescribed amount, or
(b) the commuted value does not exceed the prescribed amount.
(AM)
(2) If a member or former member, or the surviving spouse of a deceased member or
Sep
former member, has a disability or terminal illness that is likely to considerably
03/09
shorten the person's life, a pension plan, or an RRSP holding money transferred
from a plan, may provide that the person may, before payment of the pension
begins, elect to convert the pension or part of the pension on the prescribed basis
to a payment or series of payments for a set term.
(SUB)
(3) For a person to be eligible to make an election under a provision described in
Sep
subsection (2), the person must provide the certification of a medical practitioner
03/09
that the illness or disability is likely to considerably shorten his or her life.
(AM)
Jul
15/99
1991-15-40; 1999-41-27; B.C. Reg. 389/2007, Sch. 5; 2009-11-3 (B.C. Reg. 218/2009).
Funding and solvency requirements
41. (1) This section applies only to pension plans that contain defined benefit provisions.
(ADD)
(1.1) An employer must make contributions to a pension plan that are sufficient to pay
Jul
for all the benefits in accordance with the prescribed solvency tests.
15/99
(ADD)
(1.2) An employer may, as prescribed, take a contribution holiday if the pension plan
Jul
has surplus assets and provides for a contribution holiday.
15/99
(2) In accordance with the prescribed tests for the solvency of pension plans and any
other provisions of the regulations, a pension plan must provide for funding that
is adequate to provide for payment of all benefits.
(AM)
(3) The plan must be funded in accordance with the actuarial valuation reports
Jul
referred to in section 9 (3) (b), as amended by any direction of the superintendent
31/98
under section 9 (4).
(4) A participating employer’s liability for funding the benefits of a negotiated cost
plan is limited to the amount that the employer is contractually required to
contribute to the plan.
1991-15-41; 1998-42-41; 1999-41-28.
Fund holders
42. (1)
(ADD)
Jul
15/99
352 [RSBC 1996]
The pension fund of a pension plan must be held by
(a) an insurance company under a contract for insurance,
(b) a trust in Canada governed by a written trust agreement under which the
trustees are
(i)
a trust company, as defined in the Financial Institutions Act,
carrying on business in Canada,
(i.1) an extraprovincial trust corporation, as defined in the Financial
Institutions Act, carrying on activities in British Columbia, or
(ii) 3 or more individuals
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PENSION BENEFITS STANDARDS ACT
(A)
(B)
(SUB)
Apr
01/00
(2)
(3)
(4)
(5)
at least 3 of whom reside in Canada, and
at least one who is not a significant shareholder, partner or
employee of the employer or a proprietor of the business of
the employer,
(b.1) the British Columbia Pension Corporation established under the Public
Sector Pension Plans Act,
(c) a society established under the Pension Fund Societies Act (Canada),
(d) a person under the Government Annuities Act (Canada), or
(e) a combination of the persons referred to in 2 or more of paragraphs (a) to
(d).
In subsection (1) (b) (ii) (B), “significant shareholder” means, for an employer
that is a corporation, an individual who, alone or in combination with a parent,
brother, sister, spouse or child, owns or has a beneficial interest, directly or
indirectly, in shares that represent 10% or more of the voting entitlement attached
to all the shares of the employer.
If the pension fund of a plan is to be held by an insurance company under
individual contracts for insurance for each member, those contracts must
(a) be held on the terms of an express trust whose trustees are or include a trust
company referred to in subsection (1) (b) (i) or at least 2 individual
trustees, and
(b) be issued or assigned to the trustees.
The trustees are entitled to deal fully with all the contracts, including the
assignment or transfer of each contract to the applicable member
(a) on the termination of the membership,
(b) on the termination of the plan, or
(c) on pension commencement.
This section does not apply to a public sector pension plan.
1991-15-42; 1999-41-29; 2000-9-41.
(REP)
Jul
15/99
(AM)
Jul
15/99
Making and remitting of contributions
43. (1) and (2) Repealed. [1999-41-30]
(3)
(4)
(SUB)
Jul
15/99
(5)
(ADD)
Jul
15/99
(6)
An employer must, within the prescribed period, remit employer and member
contributions due to the pension plan, as follows:
(a) in the case of a multi-employer plan, to the administrator;
(b) in the case of a plan other than a multi-employer plan, to the fund holder.
If the administrator of a multi-employer plan is not the fund holder, the
administrator must, on receipt of the contributions, promptly remit them to the
fund holder.
If, 60 days following the period allowed by subsection (3) for remitting
contributions, an employer has still failed to remit the contributions, the
administrator or the fund holder who should have received the contributions must
notify the superintendent, in writing and within 30 days, respecting the failure of
the employer to remit, whether or not the contributions were subsequently
remitted.
Subsection (5) does not apply to a pension plan administered by a board of
trustees.
1991-15-43; 1999-41-30.
Deemed trust
352 [RSBC 1996]
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PENSION BENEFITS STANDARDS ACT
(ADD)
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15/99
43.1 (1)
(2)
(3)
(AM)
Dec
04/06
An employer must, with respect to a pension plan to which the employer is
required to make contributions, keep separate and apart from the employer’s own
assets
(a) all contributions that are due or owing to the pension plan by the employer,
(b) all amounts that have been deducted by the employer from a member’s
remuneration and not yet remitted to the fund holder, and
(c) all contributions that have been received by the employer with respect to a
member and not yet remitted to the fund holder.
The amounts referred to in subsection (1) are deemed to be held in trust for
members of the pension plan, former members, and any other persons entitled to
pension benefits, refunds or other payments under the plan in accordance with
their interests under the plan.
If there is, in respect of an employer, a proceeding
(a) under the Companies Creditors Arrangement Act (Canada),
(b) under the Winding-up and Restructuring Act (Canada) or similar provincial
legislation,
(c) in relation to liquidation, receivership or secured creditor enforcement, or
(d) in relation to insolvency other than under the Bankruptcy and Insolvency
Act (Canada),
an amount equal to the amounts deemed to be held in trust under subsection (2) is
deemed to be separate and apart and form no part of the estate of the employer,
whether or not that amount has in fact been kept separate and apart from the
employer’s own assets or from the assets of the estate.
1999-41-31; B.C. Reg. 343/2006.
(SUB)
Jul
15/99
Investment requirements
44. (1) Pension plan investments, loans and other pension plan financial decisions must
be made in accordance with this Act and the regulations and in the best financial
interests of plan members, former members and other plan beneficiaries.
(2) Pension plan assets must be invested in a manner that a reasonable and prudent
person would apply in respect of a portfolio of investments made on behalf of
another person to whom there is owed a fiduciary duty to make investments
without undue risk of loss and with a reasonable expectation of a return on the
investments commensurate with the risk.
(3) Pension plan assets must be held and invested in the name of the plan, or in the
name of a custodian or trustee in accordance with a custodial agreement, trust
agreement or statute that clearly indicates that the investments are held for the
benefit of the plan.
(4) A plan may provide that investment decisions may be made by a member
respecting
(a) contributions made by the employer or the member to a defined
contribution plan,
(b) the member’s optional ancillary contributions, and
(c) the member’s additional voluntary contributions.
(5) A pension plan that allows for optional ancillary contributions must specify how
those contributions will be invested.
1999-41-32.
(AM)
Jul
15/99
Benefits and assets on winding up
45. (1) Subject to section 41, a pension plan containing a defined benefit provision must,
on the prescribed basis or on another basis that the superintendent considers
352 [RSBC 1996]
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PENSION BENEFITS STANDARDS ACT
(2)
reasonable and equitable in the circumstances and consents to, in writing, provide
for
(a) the reduction of benefits, and
(b) the methods of allocation and distribution of the assets of the plan and the
priorities for determining the benefits of persons entitled to the assets,
when the assets of the plan are not sufficient to pay all benefits on the winding up
of the plan.
A pension plan must provide for the allocation of any surplus assets on the
winding up of the plan
(a) to the members and former members and their spouses, designated
beneficiaries and estates,
(b) to the employer, or
(c) to any combination of the persons referred to in paragraph (a) or
paragraphs (a) and (b).
1991-15-45; 1999-41-33.
Participating employer’s withdrawal
from multi-employer plan
46.
A multi-employer plan must specify the consequences of a participating
employer’s withdrawal from the plan in respect of the funding and vesting of
benefits for members and former members affected by the withdrawal.
1991-15-46.
Fiscal year of plan
47.
(1)
(2)
Unless otherwise provided in a pension plan, the fiscal year of a plan is from
January 1 to December 31 in each year.
The fiscal year of a plan must not be longer than 12 months without the written
consent of the superintendent.
1991-15-47.
352 [RSBC 1996]
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PENSION BENEFITS STANDARDS ACT
PART 4 – Termination, Winding Up and Disposal of
Business
Events constituting termination
48. (1) The refusal of the superintendent to register a pension plan or the cancellation of
the registration of a pension plan constitutes a termination of the whole of the
plan.
(2) Subject to this section, the suspension or cessation of employer contributions to a
pension plan or the suspension or cessation of the crediting of benefits constitutes
(a) a termination of the part of the plan that is applicable to a specific and
identifiable class or group of members if the suspension or cessation
affects only that class or group, or
(b) a termination of the whole of the plan if the suspension or cessation affects
all members.
(ADD)
(2.1) Subsection (2) (b) does not apply if
Jan
01/98
(a)
(b)
(3)
(4)
(5)
(6)
(REP)
Jul
15/99
(AM)
Dec
04/06
(b)
(7)
(AM)
Jan
01/98
352 [RSBC 1996]
the plan has only former members,
the sponsoring employer continues, or intends to continue, in operation,
and
(c) the superintendent, on application from the sponsoring employer, approves
the continuation of the plan.
For the purposes of subsection (2), an employer is deemed to have ceased making
employer contributions, without limitation as to other circumstances, if
(a) the employer fails to remit the contributions within the period referred to in
section 43 (3), and
(b) the superintendent considers that the employer does not intend to make the
contributions and notifies the employer, in writing, of that fact.
The deemed cessation is effective from the last date in respect of which the
superintendent considers that the employer made contributions, and the
superintendent must specify that date in the notice under subsection (3) (b).
Subsection (2) does not apply to the extent that the plan permits a contribution
holiday for the employer if the plan has surplus assets.
The cessation or suspension of contributions by a participating employer to a
multi-employer plan does not in itself constitute a termination of the part of the
plan that relates to that employer and the employees of that employer unless
(a) Repealed. [1999-41-34]
the plan provides that the cessation or suspension of contributions
terminates that part of the plan,
but the plan must not make any provision to the extent that the provision would
conflict with subsection (7).
If all members of a plan, or a specific and identifiable class or group of the
members of the plan, become members of another plan, on the adoption of that
other plan
(a) the years of continuous plan membership under the original plan count as
years of continuous employment under the other plan, and
(b) the original plan, or the part of the plan that affects that class or group,
must not be treated as terminated for the purposes of this section.
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PENSION BENEFITS STANDARDS ACT
(8)
A termination under subsection (1) takes effect when
(a) the remedies under sections 20 and 21 have been exhausted, or
(b) the time limit for making an objection under section 20 or appealing under
section 21 has expired without the objection or appeal having been made.
1991-15-48; RS1996(Supp)-352-2; 1991-15-80; 1997-27-27; 1999-41-34; B.C. Reg. 343/2006.
Superintendent’s authority to
declare termination of plan
49. (1) If an employer has discontinued or is in the process of discontinuing all or an
identifiable part of the employer’s business operations, the superintendent may
declare the plan to be terminated as of the date determined by the superintendent.
(2) If the superintendent declares a plan to be terminated under subsection (1),
sections 20 and 21 apply in respect of that declaration as if the superintendent
were cancelling a registration.
(ADD)
(3) The superintendent may revoke an approval given under section 48 (2.1) (c) if the
Jan
superintendent considers that there has been a change in the circumstances that
01/98
were relevant at the date the approval was given.
1991-15-49; 1997-27-28.
Notification of termination
or winding up
50. (1) An administrator who intends to terminate or wind up a pension plan must give
notice of the intention to terminate or wind up, in writing, to the following:
(a) the superintendent;
(b) each member and former member;
(c) each union whose members will be affected;
(ADD)
(d) if a member or former member has died, the surviving spouse, designated
Jul
beneficiary or personal representative of the estate of the member or
15/99
former member as ascertainable by the administrator.
(2) The notice required under subsection (1) must
(a) give the effective date of termination or start of the winding up, and
(b) be given
(i)
at least 60 days before the date of the intended termination or start of
the winding up, or
(ii) immediately after the making of that decision if it is intended to
terminate or to start to wind up the plan within 60 days after the
decision to terminate or wind up is made.
1991-15-50; 1992-77-10; 1999-41-35.
Payments to meet solvency requirements
51. (1) Within 30 days after the termination of a pension plan, the employer must
(a) pay into the plan all amounts for which payment is required by the terms of
the plan or this Act, and
(b) without limiting the generality of paragraph (a), make all payments that, by
the terms of the plan or this Act,
(i)
are due from the employer to the plan but have not been made at the
date of the termination, and
(ii) have accrued to the date of termination but that are not yet due.
(ADD)
(2) If a pension plan, other than a negotiated cost plan, is terminated with a solvency
Dec
deficiency and the employer is not insolvent,
17/99
(a) the employer must fund the remaining solvency deficiency as prescribed,
352 [RSBC 1996]
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PENSION BENEFITS STANDARDS ACT
(b)
(c)
the administrator must continue to file information returns and actuarial
valuation reports as required by section 9 (3) (a) and (b) until the solvency
deficiency has been retired, and
subject to section 55, the assets of the plan must be distributed in the
manner and to the extent prescribed.
1991-15-51; 1999-41-36.
Effect of termination on assets
52.
(1)
(2)
On the termination of a pension plan, all contributions made after the initial
qualification date in respect of a pension, together with interest, gains and losses
on those contributions, as determined in accordance with the regulations, must be
applied towards the provision of the pension as required by the plan and to the
extent that those contributions have not already been applied.
All assets of the plan that were subject to this Act before the termination continue
to be subject to this Act after the termination.
1991-15-52.
Entitlements on partial termination
53. (1) If only part of a pension plan is terminated, the entitlements of members and
former members affected by the partial termination must not be less than those to
which the members and former members would have been entitled had the whole
of the plan been terminated on the date of the partial termination.
(ADD)
(2) Subsection (1) does not entitle a person affected by the partial termination of the
Jul
plan to share in any surplus assets on the partial termination, but the plan may
15/99
provide for such an entitlement.
1991-15-53; 1999-41-37.
Winding up of a pension plan
54.
(1)
(2)
(3)
The winding up of a pension plan must begin immediately after the termination of
the plan unless the superintendent gives written approval to postpone the winding
up.
The superintendent may at any time, in writing, withdraw the approval given
under subsection (1), in which case the winding up must begin immediately after
the withdrawal of the approval.
Within 60 days after the termination of a pension plan, the administrator must file
with the superintendent a report prepared by a Fellow of the Canadian Institute of
Actuaries, or other prescribed person, setting out the following:
(a) the nature of the benefits to be provided;
(b)
the assets and liabilities of the plan;
(c)
(4)
the allocation and distribution of the assets of the plan and the priorities for
determining the benefits of persons entitled to those assets;
(d) any other information the superintendent may require to ensure that the
termination and winding up of the plan complies with this Act and the
regulations.
If the winding up does not begin immediately after the termination, the
administrator must, within 60 days after the decision to wind up is made, file an
additional report as required by subsection (3) but with updated information.
1991-15-54.
352 [RSBC 1996]
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Allocation and distribution
of assets on termination
55. (1) Subject to subsection (2), without the prior written consent of the superintendent,
the assets of a pension plan that has been terminated must not be applied towards
the provision of any benefits until the superintendent has approved the report
required by section 54 (3) and, if applicable, section 54 (4).
(2) The administrator may, in respect of occurrences giving rise to any benefits
before the termination, pay the benefits to persons entitled to them as those
benefits become due.
(3) The superintendent may direct the administrator to allocate and distribute the
assets of the plan.
(4) The administrator must comply with a direction under subsection (3) if
(a)
the plan has been terminated,
(b)
there is no approval under section 54 (1) in force, and
(c)
the superintendent considers that no action or insufficient action has been
taken to wind up the plan.
1991-15-55.
Superintendent’s authority to
appoint administrator
(SUB)
56. (1) If
Jul
15/99
(a)
(b)
(c)
the administrator cannot be located or is insolvent,
there is no administrator to undertake a winding up, or
the superintendent considers that it is in the best interests of the members,
former members and other beneficiaries of the plan in the case of a wind
up,
the superintendent may
(d)
(2)
(3)
(4)
appoint a person to be the administrator for the purposes of the winding up,
and
(e) direct that person, as administrator, to allocate and distribute the assets of
the plan.
The superintendent may act as administrator for the purposes of subsection (1)
instead of appointing another person.
The superintendent may direct that any expenses incurred in connection with the
allocation and distribution of assets under subsection (1), including expenses
incurred where the superintendent acts as administrator, be paid out of the plan.
The administrator must comply with directions given by the superintendent under
subsection (1) or (3).
1991-15-56; 1999-41-38.
Expense of winding up
57. (1) Subject to subsection (2), if a pension plan is terminated and the plan does not
provide for payment of the expenses incurred to wind up the plan, the
superintendent may, in writing, permit to be paid out of the plan, in priority to
benefits, those expenses of winding up that the superintendent considers
reasonable in the circumstances.
352 [RSBC 1996]
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PENSION BENEFITS STANDARDS ACT
(2)
(ADD)
Jul
15/99
(3)
If a pension plan is terminated and the sponsoring employer continues, or intends
to continue, in operation, the expenses incurred to wind up the plan must be paid
by the employer.
Subsection (2) does not apply to a multi-employer plan or single employer
negotiated cost plan.
1991-15-57; 1994-23-14; 1999-41-39.
(AM)
Jan
01/98
Effect of disposal of business
58. (1) Despite section 48 (2), if
(a)
(AM)
Jan
01/98
(2)
an employer, in this section called the “predecessor employer”, disposes of
all or part of the employer’s business or undertaking or all or part of the
employer’s assets,
(b) an employee of the predecessor employer becomes an employee of the
person acquiring the business, undertaking or assets, in this section called
the “successor employer”, and
(c) the successor employer does not assume responsibility for the accrued
benefits of the predecessor employer’s plan,
the employee continues to be entitled to benefits under the predecessor
employer’s plan in respect of employment in British Columbia or in a designated
province without further accrual of benefits.
For the purposes of determining
(a)
(3)
(AM)
Jan
01/98
(4)
(5)
352 [RSBC 1996]
the length of employment with respect to any eligibility condition of the
successor employer’s plan for the purposes of section 25,
(b) whether a pension vests in a member under a plan of either employer, or
(c) whether the commuted value of a pension under a plan of either employer
is locked in under section 30,
the employee’s employment and plan membership with both employers must be
taken into account on the basis that the change in employers does not in itself
cause a break in employment and that plan membership includes periods of
membership in the plans of both employers, irrespective of whether or not the
successor employer has assumed responsibility for the accrued benefits of the
predecessor employer’s plan and despite the change in employer.
If
(a) a transaction described in subsection (1) takes place,
(b) the employee of the predecessor employer becomes a member of a pension
plan of the successor employer, and
(c) the predecessor employer wishes to terminate and wind up the plan to the
extent that the plan relates to that employee and notifies the superintendent
to that effect,
the predecessor employer’s plan is terminated to the extent that the plan relates to
that employee.
The employee referred to in subsection (3) is not entitled to a lump sum payment
representing the commuted value of the employee’s pension under the
predecessor employer’s plan, and the commuted value must be transferred in
accordance with the conditions specified in section 33 (1), (2) and (2.1).
A termination under subsection (3) takes effect when
(a) the remedies under sections 20 and 21 have been exhausted, or
(b)
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the time limit for making an objection under section 20 or appealing under
section 21, has expired without the objection or appeal having been made.
(ADD)
Jan
01/98
(6)
If
(a)
(b)
a transaction described in subsection (1) takes place,
the predecessor employer does not terminate and wind up the plan to the
extent that the plan relates to that employee, and
(c) the employee would have been vested had the employee terminated
membership,
the employee is entitled to transfer the commuted value of the pension in the
manner and to the extent prescribed in relation to section 33 (1), (2) and (2.1).
1991-15-58; 1999-41-40.
352 [RSBC 1996]
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PENSION BENEFITS STANDARDS ACT
PART 5 – Miscellaneous
Effect of plan amendment
59. (1) An amendment to a pension plan or the adoption of another plan in place of a
pension plan must not
(a) reduce a person’s benefits in respect of employment on or after the initial
qualification date and before the effective date of the amendment or the
adoption of the other plan, or
(b) reduce the commuted value of a person’s benefits in respect of
remuneration, employment or membership before January 1, 1966 by
reference to the person’s pension under the Canada Pension Plan (Canada)
or the Quebec Pension Plan (Quebec).
(2) Unless the plan provides otherwise, subsection (1) (a) does not apply to the
portion of the benefits that is based on the earnings of a member projected in
relation to a period after the date of the amendment or adoption of the other plan.
(3) Despite subsection (1), the board of trustees of a negotiated cost plan may, with
the written consent of the superintendent, reduce benefits or entitlements if the
circumstances of the plan require reduced benefits or entitlements.
(ADD)
(4) Despite subsection (1), a plan may be amended to reduce benefits if the
Jul
amendment is for the purpose of compliance with the Income Tax Act (Canada).
15/99
1991-15-59; 1999-41-41.
(AM)
Jan
01/98
Transfer of assets
60. (1) A transfer of assets of a pension plan must not be made from that plan to another
plan unless
(a) the transfer is made under section 32 (2), 33, 34 (5) or 58 (4) or (6),
(b)
(2)
(3)
(4)
(5)
a copy of a transfer agreement relating to the transfer is filed under section
18 (2), or
(c) the written consent of the superintendent is obtained.
A transfer of assets of a plan must not be made from one fund holder of that plan
to another fund holder of that plan, other than by way of providing benefits under
the plan, unless
(a) the contract or trust agreement of the other fund holder is filed with the
superintendent and the plan and any relevant amendment providing for the
transfer is registered, or
(b) the written consent of the superintendent is obtained.
Despite subsection (1), an administrator must not, without the consent of or
without being directed to do so by the superintendent,
(a) transfer money out of the plan under section 33, 34 (5) or 58 (4), or
(b) transfer money to provide a benefit through an insurance company or other
prescribed savings institution if the transfer would impair the solvency of
the plan.
The superintendent may, in writing, consent to or direct a transfer referred to in
subsection (3) on terms and conditions the superintendent considers appropriate
in the circumstances.
The administrator must promptly comply with a direction under subsection (4).
1991-15-60; 1999-41-42.
352 [RSBC 1996]
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Transfer of surplus assets
61. (1) An administrator or a fund holder must not pay or transfer any surplus assets of a
pension plan to an employer unless
(a) the plan provides for the payment or transfer,
(b) the administrator complies with the prescribed conditions, and
(SUB)
(c) the administrator receives written notice from the superintendent
May
consenting to the payment or transfer.
29/08
(ADD)
(2) Despite subsection (1), if a pension plan does not clearly provide for the payment
Dec
or transfer of surplus assets to the employer, the employer may, in a form
17/99
acceptable to the superintendent, present a proposal to the members and former
members for consent to withdraw surplus assets.
(ADD)
(3) If, after being notified of the proposal, at least
Dec
17/99
(ADD)
Dec
17/99
(4)
(a) 2/3 of the members of the pension plan, and
(b) 2/3 of the former members and other prescribed persons,
notify the employer that they consent to the proposal, the employer may make
written application to the superintendent for consent to withdraw surplus assets.
The proposed withdrawal of surplus assets may proceed when
(a)
(ADD)
Dec
17/99
(ADD)
Dec
17/99
(ADD)
Dec
17/99
(5)
(6)
(7)
the administrator receives written notice from the superintendent
consenting to the proposed withdrawal, and
(b) the administrator has complied with the prescribed requirements for the
withdrawal.
A plan must meet all of the requirements of this Act and the regulations with
respect to surplus withdrawal before surplus assets may be withdrawn.
The restrictions in this section respecting the payment or transfer of surplus assets
to the employer apply to both ongoing plans and terminated plans.
This section applies despite the Trust and Settlement Variation Act.
1991-15-61; 1999-41-43; 2008-30-66.
(ADD)
Jul
15/99
Return of excess contributions
61.1 (1) Subject to subsection (2), a pension plan may provide for the return to a
contributor of
(a) contributions to the plan that are in excess of maximum amounts allowable
under the Income Tax Act (Canada), or
(b) contributions to the plan that were made in error.
(2) The contributions referred to in subsection (1) may only be returned to the
contributor if
(a) a written application is made to the superintendent by the administrator,
and
(b) the administrator receives approval in writing from the superintendent.
1999-41-44.
Provisions for arbitration of disputes
and appointment of arbitrators
62. (1) A pension plan must contain a provision for final and conclusive settlement by
arbitration, or another method agreed to by the parties to the plan, of disputes
respecting the following:
(a) any provision of a plan under section 24 (1) (g);
352 [RSBC 1996]
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(AM)
Jul
15/99
(b)
the taking of a contribution holiday under section 41 (1.2);
(c)
the allocation of any surplus assets on the winding up of a plan under
section 45 (2);
the withdrawal under section 46 of a participating employer from a
multi-employer plan;
the payment or transfer under section 61 (1) of any surplus assets of a plan.
(d)
(AM)
Jul
15/99
(e)
(2)
(3)
(4)
(5)
(6)
(REP)
Jul
15/99
(7)
(8)
(9)
If the plan does not contain the provisions referred to in subsection (1), the plan is
deemed to contain a provision that, if a difference arises between the parties to a
plan relating to any of those matters, any party may notify the other party, in
writing, and within a prescribed time after receiving adequate notice of intent, of
that party’s desire to submit the difference to arbitration and
(a) the parties must agree on a single arbitrator,
(b) the arbitrator must hear and determine the difference in dispute, and
(c) the arbitrator must issue a written decision which is final and binding on
the parties and any person affected by the decision.
If
(a) in the superintendent’s opinion any part of the arbitration provision in a
pension plan is inadequate, including the method of appointing the
arbitrator, or
(b) any party alleges a provision set out in subsection (2) is unsuitable,
the superintendent may, at the request of any party, modify the provision so long
as the provision conforms with subsection (1) or (2) and, until modified, the
arbitration provision in the plan or in subsection (2) (a) applies.
Despite subsection (3), if there is a failure to appoint an arbitrator under the
pension plan or under subsection (2) (a), the superintendent, at the request of any
party, must appoint the arbitrator.
The person appointed by the superintendent under subsection (4) is deemed
appointed in accordance with the plan or under subsection (2) (a).
An arbitrator appointed under this section
(a) must consider the real substance of the matters in dispute and the
respective merit of the positions of the parties to those matters under the
terms of the pension plan, and
(b) must apply principles consistent with the policies of this Act.
(c) Repealed. [1999-41-45]
The written decision of an arbitrator under this section must be filed with the
superintendent within 10 days after the issue of the decision.
The decision filed under subsection (7) must be available for inspection by any
person.
Subject to the provisions of the pension plan, the cost of an arbitration under this
section must be paid by the parties to the arbitration in the amount and proportion
that the arbitrator may determine.
1991-15-62; 1992-77-11; 1999-41-45.
(AM)
Nov
27/08
Prohibition and effect of assignment
of benefits and money
63. (1) Subject to subsections (3) to (3.3),
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14/98
(ADD)
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27/08
(ADD)
Nov
27/08
(a)
(b)
benefits, and
money transferred under section 32 (2), 33 (2), 34 (5) or 58 (4) or under a
similar transfer made before January 1, 1993, and money earned by the
transferred money,
must not be assigned, charged, alienated or anticipated and are exempt from
execution, seizure or attachment.
(2) A transaction purporting to assign, charge, alienate or anticipate the benefits or
money specified under subsection (1) is void.
(3) Subsections (1) and (2) do not apply to
(a) additional voluntary contributions, and
(b) the transfer of pension entitlements under any of the following:
(i)
a separation agreement;
(ii) a declaratory judgment under section 57 of the Family Relations Act;
(iii) a division of pension entitlement under Part 6 of the Family
Relations Act;
(iv) an order for dissolution of marriage or judicial separation;
(v) an order declaring a marriage void.
(3.1) Subsection (1) (a), and that portion of subsection (1) (b) that refers to a transfer of
money under section 32 (2), but only in respect of excess contributions returned
to a member under section 32 (3) (a), does not apply to
(a) a notice of attachment under section 15 of the Family Maintenance
Enforcement Act,
(b) an order of garnishment under section 18 (2) of that Act, or
(c) an attachment order under section 24 of that Act.
(3.2) Despite subsection (3) (a), additional voluntary contributions made before, on or
after November 1, 2008 are exempt from execution, seizure or attachment unless
(a) the additional voluntary contributions were made after or within 12 months
before the date on which a debt came due and the execution, seizure or
attachment is to enforce payment of that debt,
(b) the additional voluntary contributions have been or are being withdrawn
from a pension plan,
(c) the execution, seizure or attachment is by
(i)
a notice of attachment, order of garnishment or attachment order
referred to in subsection (3.1), or
(ii) any other process to enforce a maintenance order as defined in the
Family Maintenance Enforcement Act, or
(d) the execution, seizure or attachment was initiated against the additional
voluntary contributions before November 1, 2008.
(3.3) For the purposes of subsection (3.2) (b),
(a)
(b)
352 [RSBC 1996]
if additional voluntary contributions are transferred by a person to any of
that person's registered plans, within the meaning of section 71.3 of the
Court Order Enforcement Act, that transfer does not constitute a
withdrawal of those additional voluntary contributions from a pension
plan, and
if execution, seizure or attachment is pursued against additional voluntary
contributions being withdrawn from a pension plan by a member or former
member, those additional voluntary contributions are deemed, for the
purposes of that execution, seizure or attachment and Part 1 of the Court
Order Enforcement Act, to be a debt due to the member or former member
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(4)
(5)
for or with respect to the salary or wages of the member or former member.
A transaction purporting to effect a withdrawal, surrender or commutation
referred to in section 30 (1) is void.
If this Act requires an amount to be withheld, deducted, paid or credited, an
agreement or arrangement not to withhold, deduct, pay or credit that amount,
made by the person on whom the requirement is imposed, is void.
1991-15-63; 1994-6-16; 1997-19-18 (B.C.Reg. 90/98); 1999-41-46; 2008-44-22.
Matrimonial property orders
and agreements
64.
A person’s entitlement to receive a benefit under a pension plan is subject to the
following:
(a) entitlements arising under
(i)
a separation agreement, or
(ii)
(b)
an order made under Part 5 of the Family Relations Act, or a similar
order of a court outside British Columbia enforceable in British
Columbia,
that affect the payment or distribution of a person’s benefits;
entitlements arising under a division of pension under Part 6 of the Family
Relations Act.
1991-15-64; 1994-6-17.
Evidence of entitlement to benefit
65.
(1)
(2)
A person claiming to be entitled to receive a benefit under a pension plan has the
onus of proving to the satisfaction of the administrator that the claimant is entitled
to the benefit.
The administrator may require the claimant to provide evidence to establish the
claim, including evidence by way of affidavit, declaration or certificate.
1991-15-65.
Service of documents
66.
A document served under section 20, 21 (2), 49, 50 (1) or 68 (2) (b) must be
served as follows:
(a) in the case of an individual,
(i)
personally on the individual or by leaving the document at the
individual’s last or most usual place of residence with some person
who is or appears to be at least 16 years of age, or
(ii) by mailing the document by registered or certified mail to the
individual’s last known postal address;
(b) in the case of a corporation,
(i)
personally on a director, manager or officer of the corporation, or
(ii) by leaving the document at, or by sending the document by
registered or certified mail to, the office of the corporation stated on
the most recent return under section 9 (3) (a);
(c) in the case of the superintendent,
(i)
by leaving the document at the superintendent’s office, or
(ii) by mailing the document by registered or certified mail to the
superintendent’s office;
(SUB)
(d) in the case of a municipal corporation,
(AM)
Jun
01/04
Jan
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(i)
(ii)
by leaving the document with the municipal corporate officer, or
by sending the document by registered or certified mail addressed to
the municipal corporate officer;
in the case of the government, in the manner provided by the Crown
Proceeding Act.
(e)
1991-15-67; 1992-77-13; 2003-52-464; 2003-51-43.
Proof of date of service
67.
If it is necessary in the course of a proceeding or prosecution under this Act to
prove the date of service of a document referred to in section 66,
(a) the actual date on which the document is served is the date of service if
service is made personally or by leaving the document in accordance with
section 66, or
(b) the date of service is deemed to be 7 days after the date of mailing if
service is made by registered or certified mail.
1991-15-68.
Inspection and production
of documents
68. (1) In this section, “authorized person” means
(a)
the superintendent, or
(b)
(2)
for the purposes of this section, a person designated by the superintendent,
in writing, as the superintendent’s authorized representative.
An authorized person may, at any reasonable time and for the purpose of
determining if there has been a breach of this Act, the regulations or a pension
plan,
(a) inspect any records relevant to the making of that determination that are
(i)
(b)
kept by an administrator, a nonadministrator employer, a fund holder
or any other person in respect of a pension plan, or
(ii) kept by any person responsible for an RRSP or kept by an insurance
company or prescribed savings institution responsible for providing
a pension or other prescribed retirement income fund in respect of
any money that has been transferred and is held under section 33, 34
(5) or 58 (4), and
by written notice served on a person referred to in paragraph (a), demand
that the person provide or produce to the authorized person, within a
reasonable time stipulated in the notice,
(i)
those records for the purposes of the inspection, or
(ii)
(3)
(4)
352 [RSBC 1996]
any information relevant to the making of that determination, in a
form acceptable to the authorized person and whether or not in
connection with an inspection under paragraph (a).
For the purposes of an inspection under subsection (2) (a), the authorized person
may enter the premises of a person referred to in that paragraph if the authorized
person has reasonable grounds to believe that the records are likely to be found
on those premises.
If the premises under subsection (3) are a dwelling house, the authorized person
must not enter without the consent of the occupant, except under the authority of
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(5)
(6)
(7)
(8)
(9)
a search warrant issued under section 21 of the Offence Act.
If a person has been served with a notice to provide or produce information or
records under subsection (2) (b) and has not provided or produced the
information or records in accordance with the notice, the superintendent may
apply to the Supreme Court for an order to compel the person to provide or
produce the information or records.
The Supreme Court may make an order under subsection (5), subject to any
conditions that the court considers appropriate, if the court is satisfied that
(a) the information or records are in the possession of or under the control of
the person, and
(b) the information or records are relevant to the making of the determination
referred to in subsection (2).
The authorized person to whom records are provided or produced under
subsection (2) (b) or (6) may, on giving a receipt for them, remove those records
for the purpose of making copies of or taking extracts from them.
If records are removed under subsection (7), the authorized person must return
the records within a reasonable period.
A person must not prevent or obstruct, or attempt to prevent or obstruct, an
authorized person from doing anything that the authorized person is authorized by
this section to do.
1991-15-69.
Pension advisory committee
69.
(1)
(2)
(3)
If a pension plan has more than a prescribed number of members and the majority
of members request it, the employer must establish a pension advisory committee
to promote awareness and understanding of the plan amongst members, former
members and employees.
The committee must consist of at least one representative who is a member of the
plan and one former member who is in receipt of benefits under the plan.
The committee may review and provide advice on
(a)
the financial, actuarial and administrative aspects of the plan, and
(b)
any other matters relating to the plan as requested by the employer or
administrator.
1991-15-70.
Minister may suspend or
replace administrator
70.
The minister may suspend or replace an administrator and appoint a person to be
the administrator of a pension plan if, in the opinion of the minister, the
circumstances warrant.
1991-15-71.
Civil enforcement
71. (1) The superintendent may apply to the Supreme Court on 3 days’ notice for
(a) an order compelling a person to do anything that the person is required by
this Act or a pension plan to do, or
(b) an order prohibiting a person from
(i)
doing anything that the person is prohibited by this Act or a pension
plan from doing, or
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(ADD)
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(2)
(ADD)
Jul
15/99
(3)
(AM)
Dec
01/07
(4)
doing anything in relation to a pension plan that the person is
prohibited by law from doing.
If, in the opinion of the superintendent, a pension plan does not comply with this
Act or the regulations or is not being administered in accordance with this Act,
the regulations or the plan, the superintendent may
(a) direct the administrator, the employer or any person to
(i)
cease or refrain from committing the act or pursuing the course of
conduct that constitutes the non-compliance, and
(ii) perform such acts as in the opinion of the superintendent are
necessary to remedy the situation, or
(b) institute any action that could be initiated by a member or any other person
entitled to a benefit under the plan.
If the superintendent considers that a person has failed to comply with a direction
made under this section, the superintendent may apply to the Supreme Court for
either or both of the following:
(a) an order directing the person to comply with the direction or restraining the
person from violating the direction;
(b) an order directing the directors and officers of the person to cause the
person to comply with or to cease violating the direction,
and the Supreme Court may make any order it considers appropriate.
If a person is convicted of an offence under this Act, the court, in addition to any
punishment it may impose, may, without limiting subsection (3), order the person
to comply with the provisions of this Act and the regulations.
1991-15-72; 1999-41-47; 2007-14-215 (B.C. Reg. 354/2007).
Offences and penalties
72.
(1)
(2)
(3)
A person who
(a)
contravenes this Act or the regulations, or
(b)
to avoid compliance with this Act or the regulations,
(i)
destroys, alters, mutilates, secretes or otherwise disposes of records,
(ii)
makes a false or misleading statement or entry in any record, or
(iii)
fails to state anything in any records,
commits an offence and is liable to a fine of not more than $25 000.
Despite subsection (1), if a corporation is convicted of an offence against this Act
or the regulations, the maximum penalty that may be imposed is $100 000.
If a corporation commits an offence against this Act or the regulations, an officer,
director or agent of the corporation who directed, authorized, assented to,
acquiesced in or participated in the commission of the offence commits an
offence and is liable to a fine of not more than $25 000.
1991-15-73.
(AM)
Dec
01/07
Limitation period for prosecution
73. (1) A prosecution under this Act must not commence later than 2 years after the time
when the subject matter of the prosecution first came to the knowledge of the
superintendent.
(2) A statement by the superintendent as to the time when the subject matter of the
prosecution first came to the knowledge of the superintendent is admissible in
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evidence in respect of the prosecution as proof, in the absence of evidence to the
contrary, of the facts in the statement without proof of the appointment or
signature of the superintendent.
1991-15-74; 2007-14-215 (B.C. Reg. 354/2007).
Power to make regulations
74. (1) The Lieutenant Governor in Council may make regulations referred to in section
41 of the Interpretation Act.
(2) Without limiting subsection (1), the Lieutenant Governor in Council may make
regulations as follows:
(a) respecting the review of plans under section 8 (4);
(b) enabling the superintendent to require administrators to provide certified
and consolidated copies of pension plans or any documents referred to in
section 14 (2) (a) (ii) to (v), with all amendments to date incorporated;
(REP)
(c) Repealed. [1999-32-64]
Apr
21/97
(ADD)
Jul
15/99
(SUB)
Jul
01/08
(ADD)
Dec
01/04
(AM)
Jul
15/99
(SUB)
Sep
11/01
352 [RSBC 1996]
(c.1) respecting fees, payable by savings institutions and insurance companies,
for approval by the superintendent of locked-in RRSP and prescribed
retirement income fund contracts;
(c.2) respecting fees for the filing of returns or for registration of a pension plan,
including fees for late filing of returns under section 9 (3) (a);
(c.3) respecting the accounting standards in accordance with which financial
statements required under section 9 (7) must be produced;
(d) respecting the conditions on which transfers of money are to be made to an
RRSP or prescribed retirement income fund under sections 33, 34 (5) and
58 (4), including any subsequent transfers to an RRSP or prescribed
retirement income fund of money already transferred, to ensure that the
eventual payment from the RRSP or prescribed retirement income fund be
made only in the form of
(i)
a pension that would otherwise be required by this Act, or
(ii) a benefit referred to in section 30 (11) or 40 (2);
(e) establishing time limits for the exercise of options relating to benefits;
(f)
respecting the manner of computing contributions and benefits and the
determination of the commuted value of benefits;
(g) despite sections 25 to 27, respecting the benefits and membership of a
former member of a pension plan who has begun to receive a pension
under a plan and returns to work or service in an employment covered by
that plan;
(h) respecting the funding of pension plans that contain defined benefit
provisions, and may make different regulations for different classes of
plans;
(i)
respecting the investment of assets of plans and requiring the auditing of
investments and the submission to the superintendent of lists of
investments and audited reports on investments;
(j)
authorizing the superintendent to make an order requiring the repayment to
a plan of money, with interest, transferred in contravention of section 60
(3), or in contravention of the terms and conditions referred to in section 60
(4), and providing for the enforcement of the repayment order;
(k) exempting on conditions or otherwise any employees, employers,
members, former members or plans, or any class of them, or any particular
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(l)
(m)
(n)
(o)
(p)
(ADD)
Jul
15/99
(q)
plan from the application of the whole or any part of this Act;
respecting the funding of negotiated cost plans;
defining a word or expression used but not defined in this Act;
respecting the content and wording of forms used for pension plans, and
prescribing any form of spousal waiver or consent for the purposes of this
Act;
prescribing terms which are to be included in pension plans and may
prescribe different terms for different classes of pension plans;
prescribing any matter or thing that by this Act may be or is to be
prescribed;
respecting conditions that apply to
(i)
the conversion of defined benefit plans to defined contribution plans,
(ii) the split of pension plans into 2 or more successor plans, and
(iii) the consolidation and merger of pension plans.
(3) A regulation made respecting the definition of “commuted value” in section 1 (1)
or for the purposes of section 33 (5) or 40 (1) is effective from a date before the
filing of that regulation under the Regulations Act if the regulation provides for
that retroactivity.
(4) Regulations may be specific or general in their application and may make
different provision for different kinds, categories or classes of persons, plans or
benefits.
(4.1) The Lieutenant Governor in Council may, in making a regulation under
subsection (2) (c.3),
(a) adopt one or more standards, codes and rules
(i)
published by a provincial, national or international body or standards
association, or
(ii) enacted as or under a law of this or another jurisdiction, and
(b) adopt the standard, code or rule under paragraph (a)
(i)
in whole, in part or with any changes considered appropriate, and
(ii) as it stands at a specific date, as it stands at the time of adoption or
as amended from time to time.
(4.2) Regulations made under subsection (2) may delegate a matter to or confer
discretion on the superintendent.
(5) Terms prescribed under subsection (2) (o) for inclusion in a pension plan are
deemed to be terms of that pension plan.
(ADD)
Dec
01/04
(ADD)
May
29/08
1991-15-66; 1992-77-12; 1994-23-15; 1999-32-64; 1999-41-48; 2001-33-12; 2004-62-41; 2008-30-67(b); 2008-30-67(a) (B.C.
Reg. 198/2008).
(ADD)
Sep
11/01
Transitional – multi-employer plan
74.1 (1) If a multi-employer plan provides for the suspension or reduction of the benefits
of a former member who is receiving an early retirement pension under that plan
and who returns to work or service in British Columbia in a trade and industry
covered by that plan but with an employer who is not a participant in that plan,
those provisions of the multi-employer plan are deemed to be repealed on the date
this section comes into force to the extent that they are inconsistent with this Act
or the regulations.
(2) If the benefits of a former member of a multi-employer plan have been suspended
or reduced for the reasons referred to in subsection (1), the administrator must,
effective on the date this section comes into force, promptly reinstate those
benefits as of that date and in accordance with the regulations.
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(3)
(4)
Despite subsection (2), benefits are not payable for the period of suspension or
reduction.
For the purposes of subsection (2), the Lieutenant Governor in Council may make
regulations respecting any matter considered necessary or advisable for more
effectively bringing into operation this section and for resolving any transitional
difficulties encountered in reinstating the benefits of a former member of a
multi-employer plan.
2001-33-13.
(SUB)Fees
Jul
01/08
75.
The prescribed fees are payable for the filing of a return or an application for
registration.
2008-30-68 (B.C. Reg. 198/2008).
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