Key Pension Benefits Standards Act, 1985 (PBSA) and Pension Benefits Standards Regulations, 1985 (PBSR) Amendments and In-force Dates

This table describes the amendments that were made to the PBSA and PBSR in recent years to implement various reform by the federal government. All of these amendments are now in force.

For further details with respect to any provisions listed in the table, please refer to the specific sections of the PBSA and PBSR.

New or Amended Definitions

Topic	Description	PBSA / PBSR Reference	In Force Date
PRPP	Definition of a pooled registered pension plan (PRPP) added to recognize plans registered under the Pooled Registered Pension Plans Act.	2(1) PBSR	April 1, 2015
PRPP	A holder of a life income fund, a locked-in savings plan or a restricted life income fund who applies to unlock their funds under small balance unlocking must certify that the total value of all their locked-in accounts is less than or equal to 50% of the YMPE. The PBSR provisions were amended to include locked-in accounts that are created as a result of a transfer of funds from a PRPP.	20.1(1)(l)(i) 20.2(1)(d)(i) 20.3(1)(l)(i) PBSR	April 1, 2015
Negotiated Contribution Plan	Definition of negotiated contribution plan added - a multi-employer pension plan in which a participating employer's contributions are limited to an amount determined in accordance with an agreement between the participating employers, collective agreement, statute or regulation and that do not vary as a result of the prescribed tests and standards for solvency referred to in subsection 9(1) of the PBSA.	2(1) PBSA	Dec.15, 2010
Former Member	Definition of former member amended for section 9.2 and paragraph 28(1)(b.1) of the PBSA to exclude individuals whose pension benefits were transferred to another pension plan.	2(1) PBSA	April 1, 2011

Member/Retiree/Spouses Entitlements and Rights

Topic	Description	Section of PBSA / PBSR	In Force Date
Benefit Reductions	Subject to the Superintendent's authorization, an administrator of a negotiated contribution plan may make an amendment that reduces benefits, despite the terms of the plan.	10.11 PBSA	Dec.15, 2010
Death Benefits	Where there is no survivor on the death of the member or former member, an amount, as described in the provisions of the PBSA, must be paid to the designated beneficiary. If there is no designated beneficiary, the death benefit is payable to the estate.

Plan Termination

the plan termination (within 30 days); and
their pension benefits and other benefits payable under the plan (within 120 days).

a lump sum payment; or
equal annual payments sufficient to liquidate the solvency deficit over a period of five years from the date of plan termination.

Defined Contribution -Specific Provisions

Topic	Description	Section of PBSA / PBSR	In Force Date
Definition of "member choice account"	Definition added to recognize individual accounts where the member, former member, survivor or former spouse or former common-law partner of the member or former member is permitted to make investment choices.	2(1) PBSR	April 1, 2015
Investment Options	The responsibilities of an administrator are clarified with respect to offering plan members investment options in respect of defined contribution provisions or additional voluntary contributions; and	8(4.2) to 8(4.4) PBSA	April 1, 2015
	The authority to develop regulations respecting investment options offered by an administrator has been added.	39(1)(n.2) & (n.3) PBSA	April 1, 2015
	The PBSR provides that a statement of investment policies and procedures (SIP&P) does not need to be established for the plan's portfolio of investments and loans that relate to any member choice account.	7.1(1) PBSR	April 1, 2015
Additional disclosure for member choice accounts	Plan administrators must annually provide a statement that includes a description of each investment option available, how the funds are currently invested and any timing requirements that apply in the making of investment choices.	7.3(1) PBSR	July 1, 2016
Asset Transfers	The Superintendent's permission to transfer assets related to DC plan provisions is no longer required.

Funding

OSFI has developed a set of FAQs to provide more specific guidance on changes to the funding rules.

In respect of pension plans other than multi-employer plans, the employer shall pay all amounts required to meet the prescribed tests and standards for solvency.

In respect of multi-employer pension plans, each participating employer shall pay all contributions required under an agreement among participating employers or a collective agreement, statute or regulation. However, pursuant to 9(1) of the PBSA, the plan as a whole must be funded in accordance with the prescribed tests and standards for solvency.

An employer may obtain a qualifying letter of credit instead of paying into the pension fund an amount that is required to be paid under subsection 9(1.1) of the PBSA (solvency special payments), except amounts deducted from members' remuneration. Letters of credit cannot be used where a plan has terminated.

Agent crown corporation are permitted to reduce their payments required under 9(1.1.) (solvency special payments), recognizing that it would be through a different means than obtaining a letter of credit.

A three year average solvency ratio is used to establish solvency special payments.

Contribution holidays may only be taken where the solvency ratio is above 1.05 (and there is a going-concern excess).

Employer contributions, including current service cost contributions and any special payments, must be remitted to the pension fund monthly (within 30 days following the end of each period for which the instalment is paid).

The timing of member contributions is unchanged - must be remitted within 30 days following the end of the period in which the contributions were deducted.

The interest rate to be used if an employer fails to make payments in accordance with subsection 29(6) or at the times set out in subsection 9(14) is specified for various payment types.

Disclosure to Members

how an addressee may give and revoke their consent
what information must be provided to the addressee before they consent
how notice must be provided when information is posted on a website
when an electronic document is considered to have been provided and when an administrator must mail a paper copy

the valuation date of the most recent actuarial report along with the date of the next required actuarial report,
the value of solvency assets and solvency liabilities, and
the employer payments made to the plan for the plan year.

a list of the pension funds' 10 largest asset holdings based on market value, and
the target asset allocation expressed as a percentage of total assets.

Investments

Topic	Description	Section of PBSA / PBSR	In Force Date
Definition of a "Mutual Fund" or "Pooled Fund" repealed	Definition repealed and replaced with "investment fund"	2(1) PBSR	July 1, 2016
Definition of ‘investment fund"	Definition added to replace "mutual fund" or "pooled fund"	2(1) PBSR	April 1, 2015
Definition of "marketplace"	Definition added to replace "public exchange"	2(1) PBSR	April 1, 2015
Definition of "public exchange" repealed	Definition repealed and replaced with "marketplace"	1 Schedule III PBSR	July 1, 2016
Quantitative Investment Limits	Quantitative investment limits in respect of resource and real property investments have been eliminated.	Schedule III PBSR	July 1, 2010
10% limit	The 10% limit is based on the "market value" of a pension plan's assets rather than the "book value".

Other

it does not anticipate being able to make the required payments to the plan or is subject to restructuring proceedings;
it intends to negotiate with representatives of members and beneficiaries with the purpose of entering into a workout agreement;
indicates what portion of the payments referred to in subsection 29.07(1) the employer intends to defer; and
contains any prescribed information.

member and beneficiary non-objection,
the Superintendent's determination that the arrangement meets certain funding criteria and
Ministerial approval.

information to be provided to members and beneficiaries,
minimum requirements that the negotiated funding schedule must meet,
requesting Ministerial approval of the funding schedule,

The Minister of Finance may enter into a multi-lateral agreement with designated provinces regarding the regulation and supervision of multi-jurisdictional pension plans.

Powers of the Superintendent & Authority to Develop Regulations

Topic	Description	Section of PBSA / PBSR	In Force Date
Terms or Conditions for Approvals	Any approval, consent, authorization or permission of the Superintendent may be subject to terms and conditions.	5(3) PBSA	July 12, 2010
Designated Actuary	The Superintendent may designate an actuary to prepare an actuarial report or a termination report for a pension plan.	9.01 PBSA	July 12, 2010
Void Amendment	The existing authority to develop void amendment regulations has been enhanced.	10.1(2) PBSA	Oct. 31, 2010
Void Amendment	For the purposes of paragraph 10.1(2)(c) of the PBSA, the prescribed solvency ratio level is 0.85. Unless the Superintendent authorizes the amendment, an amendment is void if it would reduce the solvency ratio of the plan to below 0.85 once the amendment is made.	9.3 PBSR	April 1, 2011
Regulations Requiring Filings	Regulations may be passed requiring filings with the Superintendent by an employer.	12(3) PBSA	July 12, 2010
Incorporation by Reference	A regulation may incorporate by reference a document produced by a person or body other than the Minister or Superintendent.	39.1 PBSA	July 12, 2010