1998/99 Legislative Session: 3rd Session, 36th Parliament
THIRD READING
The following electronic version is for informational
purposes only.
The printed version remains the official version.
Certified correct as passed Third Reading on the 12th day of July, 1999
Ian D. Izard, Law Clerk
HONOURABLE DALE LOVICK
MINISTER OF LABOUR
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:
1 Section 1 (1) of the Pension Benefits Standards Act, R.S.B.C. 1996, c. 352, is amended
(a) in the definition of "additional voluntary contributions" by striking out "compounded interest" and substituting "compound interest" and by adding "optional defined benefit contributions or" after "does not include",
(b) in paragraph (a) of the definition of "commuted value" by striking out "adequate and appropriate and in accordance with generally accepted actuarial principles," and substituting "appropriate and in accordance with accepted actuarial practice,",
(c) in paragraph (b) of the definition of "employment" by striking out "and, despite paragraph (a), if the superintendent gives approval under section 26 (2) in respect of a multi-employer plan,",
(d) by repealing the definition of "spouse" and substituting the following:
"spouse" means, in relation to another person,
(a) a person who at the relevant time was married to that other person and not living separate and apart from that other person for the 2 year period immediately preceding the relevant time, or
(b) if paragraph (a) does not apply,
(i) a person who at the relevant time lived with that other person as husband and wife for the 2 year period immediately preceding the relevant time, or
(ii) a person of the same gender who at the relevant time lived in a marriage-like relationship with that other person for the 2 year period immediately preceding the relevant time; ,
(e) in paragraph (c) of the definition of "termination of membership" by striking out "any other plan or if the superintendent gives approval under section 26 (2) in respect of a multi-employer plan," and substituting "any other plan,",
(f) in the definition of "termination of membership" by striking out "under section 33 (3) or (4);" and substituting "under section 33 (3) to (5) or 40;",
(g) in the definition of "years of continuous employment" by striking out "subject to section 26 (2),",
(h) in paragraph (b) of the definition of "years of continuous employment" by adding "a member of" after "in relation to",
(i) by adding the following definitions:
"collective agreement" has the same meaning as in section 1 (1) of the Labour Relations Code;
"optional ancillary benefits" means enhanced benefits under a defined benefit provision in a pension plan that are
(a) elected by a member, former member or surviving spouse, and
(b) 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); ,
(j) by adding the following definition:
"early retirement pension" means a pension that
(a) is received before pensionable age, and
(b) has an actuarial present value which is greater than the minimum actuarial present value of a pension as required by section 38 (8); , and
(k) by adding the following definition:
"years of continuous plan membership" means,
(a) 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
(b) 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,
and includes periods of membership in all plans to which the employer was required to make contributions.
2 Section 7 (2) is amended by striking out "collective agreement within the meaning of the Labour Relations Code," and substituting "collective agreement,".
3 Section 8 is amended
(a) by repealing subsection (5) and substituting the following:
(5) In the administration of a pension plan, the administrator must
(a) 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. , and
(b) by adding the following subsections:
(7) 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.
(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.
4 Section 9 is amended
(a) in subsection (3) (b) (i) (B) by striking out "that are adequate and appropriate and that are in accordance with generally accepted actuarial principles," and substituting "that are appropriate and in accordance with accepted actuarial practice,", and
(b) by adding the following subsections:
(7) A plan must file audited financial statements, prepared in accordance with generally accepted accounting principles,
(a) annually if the plan has assets exceeding the prescribed amount, and
(b) at any time that the superintendent may require.
5 Section 10 (4) (e) and (f) is repealed and the following substituted:
(d.1) the statement of investment policies and procedures respecting the plan;
(e) 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).
6 Section 11 is repealed and the following substituted:
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.
7 Section 15 is amended
(a) by repealing subsection (2) and substituting the following:
(2) 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. ,
(b) in subsection (3) by striking out "that the amendment" and substituting "that an amendment filed under subsection (1) (a)", and
(c) by adding the following subsections:
(4) 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.
(5) 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 by this Act and the regulations from containing.
8 Section 16 is amended
(a) by repealing subsection (2) (b) and substituting the following:
(b) subject to sections 20 (6) and 21 (4), the amendment has been filed and the administrator has not received written notice that the superintendent
(i) refuses to register the amendment, or
(ii) is of the opinion that the amendment does not comply with this Act and the regulations. , and
(b) by adding the following subsection:
(3) For the purposes of subsection (2), "amendment" means the amendment as filed under section 15 or that portion of the amendment not severed by the superintendent under subsection (4) of that section.
9 Section 19 (1) (b) is amended by striking out "the regulations or the plan." and substituting "the regulations, the plan or a direction issued under section 71."
10 Section 20 is amended
(a) by repealing subsection (1) and substituting the following:
(1) If the superintendent
(a) 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. ,
(b) in subsection (3) by striking out "of the refusal or cancellation",
(c) in subsection (4) by striking out "reconsider the refusal or cancellation and rescind, vary or confirm the previous decision" and substituting "reconsider the refusal, cancellation or direction and rescind, vary or confirm the previous decision or direction", and
(d) in subsection (5) by striking out "rescind the cancellation." and substituting "rescind the cancellation or direction."
11 Section 23 (3) (c) is repealed and the following substituted:
(c) provisions of sections 25 (2), (4), (5), (7) and (8), 29.1, 30 (11), 33 (1.1), (2.1), (3.1), (5.1), (5.2) and (6), 35 (6) (a), 37 (1) and (4), 39 (2), 41 (1) and (4), 43 (4) and 44 (4) and (5).
12 Section 24 (1) is amended by adding the following paragraph:
(i) 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.
13 Section 25 (3) is amended by striking out "Subject to section 26 (2), for the purposes" and substituting "For the purposes".
14 Section 26 (2) is repealed.
15 Section 27 is amended by striking out "membership on and after January 1, 1993." and substituting "his or her membership in the plan."
16 Section 28 is amended by striking out "membership on and after the initial qualification date." and substituting "his or her membership in the plan."
17 Section 29 is repealed and the following substituted:
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.
18 The following section is added:
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.
19 Section 30 is amended
(a) by adding the following subsections:
(2.1) Subsection (1) does not apply to any part of the pension accruing from optional defined benefit contributions made in respect of membership before the initial qualification date.
(2.2) Subject to subsection (12), subsection (1) applies to a spouse or former spouse who receives a share of the pension under Part 6 of the Family Relations Act. ,
(b) in subsection (10) by adding "has not terminated and which" after "a pension plan that", and
(c) by adding the following subsections:
(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).
20 Section 31 is amended
(a) in subsection (1) (b) by adding "or optional defined benefit contributions" after "additional voluntary contributions", and
(b) in subsection (3) by adding "or optional defined benefit contributions" after "if additional voluntary contributions" and by adding "or optional defined benefit contributions, as the case may be," after "the additional voluntary contributions".
21 Section 32 is amended
(a) by adding the following subsections:
(2.1) Subsections (1) and (2) apply to improvements in, or the purchase of, benefits related to past service before or after January 1, 1993 under a defined benefit plan unless the benefit improvement is provided entirely from the member's optional defined benefit contributions.
(3.1) If a plan, or part of a plan, is converted from a defined benefit provision to a defined contribution provision and the conversion applies to all service, subsections (1), (2), (2.1) and (3) are to be applied at the time of the conversion for all members affected by the conversion. , and
(b) in subsection (7) by striking out "contributions." and substituting "contributions or optional defined benefit contributions."
22 Section 33 is amended
(a) by repealing subsection (1) and substituting the following:
(1) If
(a) 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. ,
(b) in subsection (3) by striking out "A member of a multi-employer plan who has not completed" and substituting "Subject to subsection (3.1), a member of a multi-employer plan who does not complete" and by striking out "subsections (1) and (2)," and substituting "subsections (1), (2) and (2.1),",
(c) in subsection (4) by striking out "subsections (1) and (2)," and substituting "subsections (1), (2) and (2.1) of this section,",
(d) in subsection (5) by striking out "Despite subsections (1), (3) and (4)," and substituting "Despite sections 26 to 28 and subsections (1), (3) and (4) of this section," and by striking out "those subsections" and substituting "those sections and subsections", and
(e) by adding the following subsections:
(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.
(2.1) 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.
(3.1) A multi-employer plan may provide that subsection (3) does not apply to the plan if
(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.
(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.
(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.
23 Section 34 is amended
(a) in subsection (2) (a) by striking out "together, with" and substituting "together with",
(b) in subsection (2) (b) (i) (A) by striking out "the pension if" and substituting "the pension in respect of the deceased's membership on and after January 1, 1993 if",
(c) in subsection (5) by striking out "section 33 (1) and (2)." and substituting "section 33 (1), (1.1), (2) and (2.1).", and
(d) by adding the following subsections:
(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.
(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.
24 Section 35 is amended
(a) in subsection (4) by striking out "The former member may receive a pension that does not comply" and substituting "If the pension plan provides for alternative forms of payment, the former member may receive a pension in a form acceptable under the plan but that does not comply",
(b) by repealing subsection (6) and substituting the following:
(6) This section does not apply to a spouse or former spouse in respect of whom the administrator, before pension commencement, receives notice of a division of the pension entitlement arising under
(a) a separation agreement, or
(b) an order referred to in section 64 affecting the pension. , and
(c) by adding the following subsection:
(7) This section does not apply if payment of the pension began before January 1, 1993.
25 Section 37 is amended
(a) by adding the following subsection:
(3.1) If the plan provides for a reduced pension because of a member's or former member's entitlement to a pension under CPP or QPP, the postretirement survivor benefit must not be less than the amount determined by the prescribed formula. , and
(b) in subsection (5) by striking out "a benefit under OAS." and substituting "a benefit under OAS unless the reduced amount is an option selected by the member or former member."
26 Section 38 (9) is amended by striking out "71 years." and substituting "69 years."
27 Section 40 is amended
(a) in subsection (1) by striking out "A pension plan may provide" and substituting "A pension plan must allow", and
(b) in subsection (2) by striking out "mental or".
28 Section 41 is amended by adding the following subsections:
(1.1) An employer must make contributions to a pension plan that are sufficient to pay for all the benefits in accordance with the prescribed solvency tests.
(1.2) An employer may, as prescribed, take a contribution holiday if the pension plan has surplus assets and provides for a contribution holiday.
29 Section 42 (1) is amended
(a) in paragraph (b) by striking out "or" at the end of subparagraph (i) and by adding the following subparagraph:
(i.1) an extraprovincial trust corporation, as defined in the Financial Institutions Act, carrying on activities in British Columbia, or , and
(b) by adding the following paragraph:
(b.1) the commissioner, as defined in section 1 (1) of the Pension (Public Service) Act, .
30 Section 43 is amended
(a) by repealing subsections (1) and (2),
(b) in subsection (3) by striking out "due to the plan," and substituting "due to the pension plan,", and
(c) by repealing subsection (5) and substituting the following:
(5) 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.
(6) Subsection (5) does not apply to a pension plan administered by a board of trustees.
31 The following section is added:
43.1 (1) 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.
(2) 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.
(3) If there is, in respect of an employer, a proceeding
(a) under the Companies Creditors Arrangement Act (Canada),
(b) under the Winding-up 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.
32 Section 44 is repealed and the following substituted:
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.
33 Section 45 (1) is amended by striking out "Subject to sections 41 and 43 (1)," and substituting "Subject to section 41,".
34 Section 48 (6) is amended
(a) by repealing paragraph (a), and
(b) in paragraph (b) by striking out "terminates the that part" and substituting "terminates that part".
35 Section 50 (1) is amended by adding the following paragraph:
(d) if a member or former member has died, the surviving spouse, designated beneficiary or personal representative of the estate of the member or former member as ascertainable by the administrator.
36 Section 51 is amended by renumbering the section as section 51 (1) and by adding the following subsection:
(2) If a pension plan, other than a negotiated cost plan, is terminated with a solvency deficiency and the employer is not insolvent,
(a) the employer must fund the remaining solvency deficiency as prescribed,
(b) 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
(c) subject to section 55, the assets of the plan must be distributed in the manner and to the extent prescribed.
37 Section 53 is amended by renumbering the section as section 53 (1) and by adding the following subsection:
(2) Subsection (1) does not entitle a person affected by the partial termination of the plan to share in any surplus assets on the partial termination, but the plan may provide for such an entitlement.
38 Section 56 (1) is repealed and the following substituted:
(1) If
(a) the administrator cannot be located or is insolvent,
(b) there is no administrator to undertake a winding up, or
(c) 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) 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.
39 Section 57 is amended by adding the following subsection:
(3) Subsection (2) does not apply to a multi-employer plan or single employer negotiated cost plan.
40 Section 58 is amended
(a) in subsection (1) by striking out "If" and substituting "Despite section 48 (2), if",
(b) in subsection (2) by adding "and plan membership" after "employee's employment" and by striking out "a break in employment," and substituting "a break in employment and that plan membership includes periods of membership in the plans of both employers,",
(c) in subsection (4) by striking out "section 33 (1) and (2)." and substituting "section 33 (1), (2) and (2.1).", and
(d) by adding the following subsection:
(6) If
(a) a transaction described in subsection (1) takes place,
(b) 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).
41 Section 59 is amended by adding the following subsection:
(4) Despite subsection (1), a plan may be amended to reduce benefits if the amendment is for the purpose of compliance with the Income Tax Act (Canada).
42 Section 60 (1) (a) is amended by striking out "or 58 (4)," and substituting "or 58 (4) or (6),".
43 Section 61 is amended by renumbering the section as section 61 (1) and by adding the following subsections:
(2) Despite subsection (1), if a pension plan does not clearly provide for the payment or transfer of surplus assets to the employer, the employer may, in a form acceptable to the superintendent, present a proposal to the members and former members for consent to withdraw surplus assets.
(3) If, after being notified of the proposal, at least
(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.
(4) The proposed withdrawal of surplus assets may proceed when
(a) 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.
(5) 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.
(6) The restrictions in this section respecting the payment or transfer of surplus assets to the employer apply to both ongoing plans and terminated plans.
(7) This section applies despite the Trust and Settlement Variation Act.
44 The following section is added:
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.
45 Section 62 is amended
(a) in subsection (1) (b) by striking out "section 43 (2);" and substituting "section 41 (1.2);",
(b) in subsection (1) (e) by striking out "section 61" and substituting "section 61 (1)", and
(c) in subsection (6) by adding "and" at the end of paragraph (a), by striking out "and" at the end of paragraph (b) and by repealing paragraph (c).
46 Section 63 (1) (b) is amended by striking out "33," and substituting "33 (2),".
47 Section 71 is amended by renumbering the section as section 71 (1) and by adding the following subsections:
(2) 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.
(3) 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.
(4) If a person is convicted of an offence under this Act or the regulations, 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.
48 Section 74 (2) is amended
(a) in paragraph (d) by adding "or prescribed retirement income fund" after "RRSP" wherever it appears,
(b) in paragraph (d) (ii) by striking out "section 40 (2);" and substituting "section 30 (11) or 40 (2);",
(c) by repealing paragraph (g) and substituting the following:
(g) despite sections 25 to 27, respecting
(i) the benefits and membership of a former member who has begun to receive a pension under a plan and restarts work or service in an employment covered by that plan,
(ii) the suspension of benefits of a former member who has begun to receive an early retirement pension under a multi-employer plan and restarts 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, and
(iii) the reinstatement of benefits of a former member referred to in subparagraph (ii); , and
(d) by adding the following paragraphs:
(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 late filing of returns under section 9 (3) (a);
(q) 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; .
Consequential Amendments
Hydro and Power Authority Act
49 Section 32 (7) of the Hydro and Power Authority Act, R.S.B.C. 1996, c. 212, is amended by adding the following paragraph:
(s.1) the Pension Benefits Standards Act; .
Legislative Assembly Allowances and Pension Act
50 Section 1 of the Legislative Assembly Allowances and Pension Act, R.S.B.C. 1996, c. 257, is amended by repealing the definition of "spouse" and substituting the following:
"spouse" has the same meaning as in section 1 (1) and (2) of the Pension Benefits Standards Act; .
Pension (College) Act
51 Section 1 (1) of the Pension (College) Act, R.S.B.C. 1996, c. 353, is amended by repealing the definition of "spouse" and substituting the following:
"spouse" has the same meaning as in section 1 (1) and (2) of the Pension Benefits Standards Act; .
52 Section 7 (4) is amended by striking out "71 years." and substituting "69 years."
53 Section 9 (2) is amended by striking out "one month's service." and substituting "one month's contributory service."
54 Section 12 (1) is amended
(a) by striking out "January 1, 1993," and substituting "January 1, 1998,",
(b) in paragraph (a) (iii) and (iv) by striking out "5 years of continuous employment or 5 years of contributory service" and substituting "2 years of contributory service",
(c) in paragraph (b) by striking out "5 years of continuous employment or not less than 5 years of contributory service," and substituting "2 years of contributory service,", and
(d) in paragraph (c) by striking out "5 years of continuous employment or has not completed 5 years of contributory service." and substituting "2 years of contributory service."
55 Section 21 is amended
(a) by repealing subsections (1) to (3) and substituting the following:
(1) Subject to the terms and conditions set out in subsection (3), a contributor who, on or after January 1, 1998, resigns, is dismissed or is otherwise retired from service is entitled, on application, to receive, instead of a pension or other benefit that might have been granted under this Act, a payment in the amount of the commuted value of the contributor's pension if
(a) the contributor has less than 2 years of contributory service and the contributor's age is less than pensionable age, or
(b) the contributor has 2 or more years of contributory service and the contributor's age is more than 5 years under pensionable age.
(2) A contributor may elect to receive, instead of the commuted value referred to in subsection (1), one of the following:
(a) if the contributor has less than 2 years of contributory service at the termination of membership,
(i) a payment in the amount of the contributor's contributions, together with accumulated interest under subsection (6), or
(ii) an entitlement to a deferred pension calculated under section 14 (4) that is payable, on application, at pensionable age or older;
(b) if the contributor has 2 or more years of contributory service at the termination of membership, an entitlement to a deferred pension calculated under section 14 (3) (a) that is payable, on application, from 5 years under the contributor's pensionable age or older.
(3) A contributor may elect to receive a payment or payments under subsection (1) if the commissioner is satisfied that the commuted value payment is to be transferred on a locked-in basis to one of the following:
(a) another pension plan;
(b) an RRSP;
(c) an insurance company or other financial institution in accordance with the requirements for funds locked in under the Pension Benefits Standards Act. , and
(b) by adding the following subsection:
(3.1) Section 20 (3) and subsection (3) of this section do 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 purpose of the Income Tax Act (Canada).
56 Section 22 (2) is amended by striking out "mental or".
Pension (Municipal) Act
57 Section 1 (1) of the Pension (Municipal) Act, R.S.B.C. 1996, c. 355, is amended by repealing the definition of "spouse" and substituting the following:
"spouse" has the same meaning as in section 1 (1) and (2) of the Pension Benefits Standards Act; .
58 Section 2 (7) is amended by striking out "71 years." and substituting "69 years."
59 Section 13 is amended
(a) in subsection (1) by striking out "Each contributor is entitled to a pension, on application, as follows:" and substituting "Subject to section 17 (9), a contributor who, on or after January 1, 1998, retires, resigns or is dismissed from service is, on application, entitled to a pension as follows:",
(b) in subsection (1) (a) and (b) by striking out "5 years of continuous employment or 5 years of contributory service," and substituting "2 years of contributory service,",
(c) in subsection (2) by striking out "5 years of continuous employment or less than 5 years of contributory service," and substituting "2 years of contributory service,", and
(d) in subsection (3) (b) by striking out "5 or more years of continuous employment or 5 or more years of contributory service," and substituting "2 or more years of contributory service,".
60 Section 17 is amended
(a) by repealing subsection (9) and substituting the following:
(9) If the service of a contributor terminates or is terminated on or after January 1, 1998 and the contributor has completed at least 2 years of contributory service, the contributor is entitled to leave a contributory account on deposit in the fund to provide a deferred pension calculated under section 16 in respect of all pensionable service. ,
(b) by repealing subsection (11) and substituting the following:
(11) Subject to subsection (9) and the terms and conditions set out in subsection (12), a contributor who resigns, is dismissed or is otherwise retired from service on or after January 1, 1998 may elect to receive, instead of a deferred pension, a payment in the amount of the commuted value of the deferred pension for all service. ,
(c) in subsection (12) by striking out "a payment or payments under subsection (11) (a) or (b)" and substituting "a payment under subsection (11)", and
(d) by adding the following subsection:
(12.1) Section 22 (3) (b) and subsection (12) of this section do 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 purpose of the Income Tax Act (Canada).
61 Section 21 is amended
(a) in subsection (2) by adding ", on or after January 1, 1998," after "Subject to the other provisions of this Act, if", and
(b) in subsection (2) (a) by striking out "5 years of continuous employment or 5 years of contributory service," and substituting "2 years of contributory service,".
62 Section 22 is amended
(a) in subsection (1) by striking out "January 1, 1993," and substituting "January 1, 1998,",
(b) in subsection (1) (a) by striking out "5 years of continuous employment or not less than 5 years of contributory service," and substituting "2 years of contributory service,",
(c) in subsection (5) by adding "on or after January 1, 1998" after "If a contributor dies in service", and
(d) by repealing subsection (5) (b) and substituting the following:
(b) 60% of the commuted value of the pension, if any, to which the contributor would have been entitled in respect of his or her plan membership had the contributor terminated membership immediately before death.
63 Section 26 (6) is amended by striking out "mental or".
Pension (Public Service) Act
64 Section 1 (1) of the Pension (Public Service) Act, R.S.B.C. 1996, c. 356, is amended by repealing the definition of "spouse" and substituting the following:
"spouse" has the same meaning as in section 1 (1) and (2) of the Pension Benefits Standards Act; .
65 Section 4 is amended by adding the following subsection:
(6) Despite subsection (5), retirement and the beginning of a pension must not be delayed beyond the end of the calendar year in which the officer reaches the age of 69 years.
66 Section 8 (3) is amended by striking out "one month's service." and substituting "one month's contributory service."
67 Section 15 (10) is amended by striking out "71 years." and substituting "69 years."
68 Section 19 is amended
(a) by repealing subsection (1) and substituting the following:
(1) If the service of a contributor terminates or is terminated on or after January 1, 1998 and the contributor has completed at least 2 years of contributory service, the contributor is entitled to leave a contributory account on deposit in the fund to provide a deferred pension calculated under section 22 in respect of all pensionable service. ,
(b) by repealing subsection (3) and substituting the following:
(3) Subject to subsection (1) and the terms and conditions set out in subsection (4), a contributor may elect to receive, instead of a deferred pension, a payment in the amount of the commuted value of the deferred pension for all service. , and
(c) by adding the following subsection:
(4.1) Section 26 (2) (b) and subsection (4) of this section do 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 purpose of the Income Tax Act (Canada).
69 Section 27 (10) is amended by striking out "mental or".
Pension (Teachers) Act
70 Section 1 (1) of the Pension (Teachers) Act, R.S.B.C. 1996, c. 357, is amended by repealing the definition of "spouse" and substituting the following:
"spouse" has the same meaning as in section 1 (1) and (2) of the Pension Benefits Standards Act; .
71 Section 7 (6) is amended by striking out "71 years." and substituting "69 years."
72 Section 9 (2) is amended by striking out "one month's service." and substituting "one month's contributory service."
73 Section 23 is amended by adding the following subsection:
(4.1) Section 21 (2) (b) and subsection (4) of this section do 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 purpose of the Income Tax Act (Canada).
74 Section 24 is amended
(a) in subsection (4) by striking out "the fund may be" and substituting "the fund may not be", and
(b) in subsection (6) by striking out "mental or".
75 (1) Sections 52, 58, 65, 67 and 71 are deemed to have come into force on January 1, 1997 and are retroactive to the extent necessary to give them effect on and after that date.
(2) Sections 1 (c), (e), (g) and (k), 13 to 17, 40, 42, 53 to 55, 59 to 62 and 68 are deemed to have come into force on January 1, 1998 and are retroactive to the extent necessary to give them effect on and after that date.
(3) Sections 1 (b) and (j), 4, 19 (c), 25, 36 and 43 come into force by regulation of the Lieutenant Governor in Council.
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