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New B.C. Pension Benefits Standards Act and Regulations
On May 11, 2015, the B.C. Government approved the new Pension Benefits Standards Regulation (the
New Regs.). The New Regs. support the new Pension Benefits Standards Act, SBC 2012, c. 30. (the New
Act) which was passed in the spring of 2012 and subsequently amended by Bill 10-2014, the Pension
Benefits Standards Amendment Act.
The effective date of the Act and Regulations is September 30, 2015.
The new legislation reflects the changes recommended by the Joint Expert Panel on Pension Standards
in their 2008 report. It has been drafted to be highly “harmonized” with the province of Alberta.
Significant differences between the BC and Alberta Acts are only with respect to effective dates and with
respect to differences required by differences in Family Law legislation.
In the sense that the legislation was passed over 3 years ago and we have had a good preliminary view
of what the Regs. will look like based on the Alberta Regs., there are no great surprises. One thing that
did surprise us to an extent was that the Regs. were adopted without the 6 month “exposure draft”
period which had been mentioned by representatives of FICOM as a possibility.
The following are details of the main provisions of the new Act and Regulations:
Individual Pension Plans
Plans for Connected Members (more than 10% shareholders or related)
Plans for Connected Members are still exempt from registration with FICOM and do not need to
meet any minimum funding requirements.
Plans for “Specified Individuals”
Specified Individuals are defined as individuals who earn more than 2.5 times the YMPE (Year’s
Maximum Pensionable Earnings as defined in the CPP). Previously these plans had been exempt
from registration with FICOM. Under the New Regs., plans for “specified individuals” will need to be
registered with FICOM and they would be subject to provisions such as the minimum funding rules,
if these plans are submitted to CRA for registration after Sept 30, 2015. Plans which were registered
or submitted for registration with CRA prior to Sept 30, 2015 are still exempt from registration.
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New B.C. Pension Benefits Standards Act
and Regulations Commentary
Page 2 of 4
Registered Pension Plans (“RPPs”) in General
New provisions for all RPPs are:
1. Immediate Vesting for all service
2. Pre-retirement death benefit equal to 100% of commuted value (previously 60%)
3. Several new plan types permitted
 Target benefit plans – A target benefit plan is a Defined Benefit Plan where the benefit
levels are adjusted based on the funded status of the plan.
 Joint sponsored Plans- Joint sponsored plans are DB plans where the costs of the plan
are shared 50%/50% between the members and the employer
 Collectively bargained multi-employer plan (CBMEP)” means a multi-employer plan that
is established through a collective agreement, unless, under section 28 of the Act, the
superintendent designates the plan as a non-collectively bargained multi-employer plan
or a single employer plan.
 Non-collectively bargained multi-employer plan (NCBMEP)” means a multi-employer
plan that is established other than through a collective agreement, unless, under section
28 of the Act, the superintendent designates the plan as a collectively bargained multiemployer plan or a single employer plan
4. Provision for unlocking for small amounts, shortened life expectancy and non-residency
5. Solvency Reserve Account
6. Forced portability for small benefit amounts
7. Provision for phased retirement
8. Additional Documentation
 Corporate Governance Policy
 Funding Policy
9. New document retention rules
10. Default investment option for defined contribution provisions
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New B.C. Pension Benefits Standards Act
and Regulations Commentary
Page 3 of 4
LIRAs and LIFs
B.C. has adopted the use of the term “locked-in retirement account” or “LIRA.” The terms “locked-in
registered retirement savings plan,” “locked-in RRSP” or “LIRRSP” will no longer be used. “Life Income
Fund” or “LIF” will continue to be used. The requirements for offering LIRAs and LIFs will change, as BC
harmonizes administrative procedures with Alberta.
Filing Deadlines for Administrators
Provision
Filing Deadline
Plan Text Amendment (All plans)
December 31, 2015
An amendment to the plan text document, amending the terms
of the plan to reflect new required plan provisions,
Although plan text amendments are not immediately required,
the plan must be administered to reflect the new legislative
requirements from September 30, 2015 onward.
Governance Policy (All plans) and Funding Policy (Benefit
Formula Plans)
January 1, 2016
There is no requirement to file these documents with the
Superintendent, but a copy of the funding policy must be given
to the plan actuary.
For existing plans, the new record retention [policies] required
The beginning of the plan fiscal year after the
by section 34 of the New Act
plan fiscal year in which September 30, 2015
falls.
Compliance with new disclosure rules (All plans)
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New B.C. Pension Benefits Standards Act
and Regulations Commentary
Page 4 of 4
Filing Deadlines for Administrators (Continued)
Provision
Filing Deadline
Triennial (3-year) administrator assessment (All
The plan administrator must assess the administration of
Plans)
the plan in accordance with section 41 of the New Act by
the last day of the fiscal year of the plan after the fiscal year
of the plan in which September 30, 2015 falls, and then
every three years thereafter.
Information to Fundholders (All Plans)
All pension plans, except for CBMEPs, must provide the fund
holder with an updated Schedule of Expected Contributions
within 30 days after the coming into force of the legislation;
i.e. by October 30, 2015.
Default investment option for defined contribution
Plans which require members to make decisions regarding
provisions
the investment of their accounts have until June 28, 2016 to
implement the new default investment option for those
accounts.
Participation Agreements (NCBMEPs)
Section 36 of the New Act requires that administrator of an
NCBMEP must enter into a written participating agreement
with all employers participating in the plan. The required
content of a participation agreement for an NCBMEP is set
out in section 28 of the New Regulation. This means that
administrators of existing NCBMEPs must either create a
participation
agreement
that
meets
the
prescribed
conditions or amend their existing participation agreement
to comply with the requirements of the New Regulation.
These new or revised agreements, as applicable, must be in
place not later than January 1, 2016.
This content is for general information only. As it is impossible to include all situations, circumstances and exceptions in a
commentary such as this, a further review or study should be undertaken to the reader’s own situations and circumstances for
compliance with the new B.C. Pension Benefits Standards Act and Regulations. Every effort has been made to ensure the
accuracy of the information contained in this commentary. However, because of the nature of the subject, no person or firm
involved in the preparation or distribution of this commentary accepts any liability for its contents or use.
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