49 Remitting of
contributions
50 Investment
requirements
51 Statement of
investment policies and procedures
52 Review,
confirmation or amendment of investment statement
53 Safeguarding of
investments
54 General investment
rules
55 Allocation and
distribution of assets on winding‑up
Part 4
Division and Distribution of Benefits on
Relationship Breakdown
56 Definitions
57 Matrimonial
property orders
58 Division and
distribution of benefits
59 Calculation of
benefits
60 Adjustment of
member‑pension partner’s share
60.1 50% unlocking of non‑member‑pension partner share
61 Fees
Part 5
Termination, Winding‑up, Withdrawal and Succession
63 Rules on plan
termination and MUPP employer withdrawal
64 Qualifications
for signing termination report
64.1 Missing persons
65 Predecessor and
successor plans and employers
Part 6
Miscellaneous Provisions
66 Repayment of
funds wrongfully transferred
67 Surplus and
excess assets
67.1 Prescribed legislation
68 Exemptions
73.1 Transitional ‑
financial statements
73.2 Transitional ‑
LIRAs and LIFs
Schedules
Interpretation for
purposes of the Act
1(1) For
the purposes of the Act,
(a) “Canada
Revenue Agency” means the body commonly known as the Canada Revenue Agency;
(b) “personal
information” means personal information within the meaning of the Freedom of
Information and Protection of Privacy Act;
(c) “plan
termination basis” means a basis for determining in a review the value of a
plan’s liabilities arising from defined benefit provisions that
(i) is predicated on the hypothesis of the plan’s terminating at the
review date and takes into account any benefit increases or decreases as a
result of the hypothetical termination, other than decreases resulting from a
reduction in benefits as contemplated by section 55, and
(ii) is based on assumptions and methods and a manner for the
determination of commuted values that meet the conditions of section
1(1)(h)(i)(A) and (C) of the Act and, unless the Superintendent so allows in writing,
the conditions set out in section 29 of this Regulation;
(d) “predecessor
plan” means the pension plan from which members are transferred in a
transaction referred to in section 65(2);
(e) “review”
means a review of defined benefit provisions under section 13(4) of the Act;
(f) “review
date” means, in relation to a review, the date as of which that review is made
or was required to be made;
(g) “solvency
deficiency” means the amount, if any, by which the plan’s liabilities that
arise from defined benefit provisions, determined on a plan termination basis
and as of the review date for that determination, exceed,
(i) in the case of a pension plan that is not wholly terminating, the
value of those of its assets that relate to defined benefit provisions as
determined under section 2(2), and
(ii) in the case of a plan that is wholly terminating, the value of
those of its assets that relate to defined benefit provisions as determined
under section 2(2), excluding the items specified in section 2(2)(b)(ii);
(h) “successor
plan” means the pension plan to which members are transferred in a transaction
referred to in section 65(2).
(2) Repealed
AR 197/2006 s2.
(3) For
the purposes of section 1(1)(p) of the Act, the prescribed assets and
liabilities of a pension plan are respectively,
(a) in
respect of defined contribution provisions,
(i) the market value of those of its assets that derive from defined
contribution provisions, and
(ii) the liabilities that are equal to the aggregate of those of its
assets that derive from defined contribution provisions that
(A) represent employer and member contributions
with interest, and
(B) are or may be required by the plan to be
applied for the provision of benefits,
and
(b) in
respect of defined benefit provisions, those of the plan’s going concern assets
and going concern liabilities that relate to defined benefit provisions, as
stated in the most recent actuarial valuation report or cost certificate filed.
(4) The conditions prescribed for the
purposes of section 1(1)(x) of the Act are
(a) those
prescribed in section 39, or
(b) that
the RRSP was treated as locked in by the Employment Pension Plans Regulation
(AR 364/86) (repealed), as it existed until February 3, 1993.
(c) repealed
AR 197/2006 s2.
(5) Repealed AR 197/2006 s2.
(6) The provisions of the tax Act
prescribed for the purposes of section 1(1)(ii) of the Act are subsections
8515(1) and (4) of the Income Tax Regulations (Canada) (CRC Vol X c945).
(7) The conditions prescribed for the
purposes of section 1(1)(nn)(i) of the Act are those specified in section 40.
(8) Where
reference is made in the Act to a pension plan, except in section 19 and 20(1)
and (3) of the Act, the reference is to be taken as a reference to a plan that
has been registered under the legislation or under the equivalent laws of a
designated jurisdiction.
(9) For
the purposes of the Act, a person is adversely affected by an amendment to a
pension plan if the amendment negatively affects the person’s entitlement or
potential entitlement to a benefit or increases the cost to the member of
securing a benefit.
(10) For the purposes of the Act, money
is locked in to a pension plan, LIRA, LIF or annuity if the money to which an
individual is entitled may only be paid in the form of a pension, retirement
income or annuity, as the case may be, or if the withdrawal, surrender or
commutation of the money is prohibited by or as the result of the application
of
(a) section
35(1) or (2) or 64(2) of the Act,
(b) section
32(1), 39, 40, 41 or 46.1 of this Regulation, or
(c) in
the case of a pension plan, any legislation of a designated jurisdiction that
is similar to a provision referred to in clause (a) or section 32(1) or 46.1 to
the extent, where applicable, that it applies with respect to plans.
(11) For
the purposes of interpreting any provision of the Act as it applies in respect
of a DC RIA, the definition of “pension” in section 1(1)(dd) of the Act
includes DC RIA benefits.
(12) For
the purposes of interpreting any provision of the Act that refers to the
execution of a waiver form, the exercise of an Option or the waiving or giving
up by a pension partner of any pension partner rights or entitlements, by
reference to a prescribed form or a portion of a prescribed form, that provision
is to be treated as referring to
(a) the
full execution (including the signing) of that form or the relevant portion of
that form, as the case may be, in the form, and in a manner that meets all the
procedural and other requirements, prescribed in that form or that part of the
form, and
(b) the provision of that form or the relevant
portion of it by any person (including another person after a signer’s death)
to the relevant administrator or financial institution.
AR 35/2000
ss1,72;245/2003;197/2006
Interpretation
2(1) In
this Regulation,
(a) “acknowledged”
means, in relation to a financial institution, currently acknowledged under
section 38 in relation to LIRAs or LIFs or both, as the case may be;
(a.1) “addendum”
means the portion of this Regulation and of a LIRA or LIF that is prescribed by
Form 1 or 2, comprising material required by section 39 or 40 to be included in
a LIRA or LIF, as the case may be, and “LIRA addendum” and “LIF addendum” are
to be construed accordingly;
(a.2) “Alberta
locked‑in money” means money in a pension plan, LIRA or LIF
(i) that
(A) originally belonged to a member who
terminated membership in Alberta,
(B) belongs to a surviving pension partner of
(I) a member who died while employed in Alberta,
(II) a former member who terminated membership
while employed in Alberta, or
(III) the original owner of a LIRA,
or
(C) belongs to a non‑member‑pension
partner owing to the application of Parts 4 of the legislation and originally
belonged to a member who was employed in Alberta at the end of the period of
joint accrual referred to in section 57(a),
and
(ii) with respect to which the locking‑in requirements of the
legislation are still required to be met;
(a.3) “annuity”
means a non‑commutable life annuity contract issued or to be issued by an
insurance business that meets the conditions set out in paragraph 60(l) of the Income
Tax Act (Canada) and that will not commence before the person entitled to
it attains the age of 50 years;
(a.4) “audited
financial statements” means financial statements that are
(i) prepared in accordance with Canadian generally accepted
accounting principles, as described in the Handbook of the Canadian Institute
of Chartered Accountants, as amended up to the relevant date, and
(ii) accompanied by an audit report that is prepared
(A) by or under the auspices of a public
accounting firm within the meaning of the Regulated Accounting Profession
Act, and
(B) in accordance with Canadian generally
accepted auditing principles, as described in the Handbook, as amended,
referred to in subclause (i);
(a.5) “certified
copy”, used in relation to a form, means a copy that is certified by a
commissioner for oaths or a notary public as a true copy of the original signed
form or of a copy that was so certified;
(a.55) “conforming
letter of credit” means a letter of credit
(i) in respect of which all the requirements of section 48.1(2) are
met, and
(ii) which, and the issuing of which, with reference to the
circumstances set out in section 48.1, meets all the requirements of the tax
Act;
(a.6) “DC RIA”
(an acronym for defined contribution retirement income account) means an
account, if any, created under defined contribution provisions of a pension
plan that provides the benefits referred to in section 46(8) of the Act in the
manner set out in section 46.1 of this Regulation;
(a.7) “DC RIA
benefits” means the benefits referred to in clause (a.6);
(a.8) “estate”,
used in relation to a deceased person, means the personal representatives of
the deceased’s estate in their representative capacity;
(a.9) “50%
unlocking option” means the option offered or to be offered under or in
relation to Schedule 1.1;
(b) “filed”,
subject to section 1(1)(q.1) of the Act, means filed with the Superintendent
under the legislation or under the former Act;
(b.1) “financial
institution” means the underwriter or depositary of a LIRA or LIF, as the case
may be and, where the context relates to an annuity, includes an insurance
business referred to in clause (a.3);
(c) “fiscal
year”, except where not used in relation to a pension plan, means the fiscal
year of the plan in question;
(c.1) “Form”,
followed by a number, means the form set out in Schedule 1 corresponding to
that number;
(d) “going
concern assets” means the value of the assets of a plan as of the relevant
review date, determined on the basis of a going concern valuation;
(e) “going
concern liabilities” means the actuarial present value of a plan’s benefits as
of the relevant review date, determined on the basis of a going concern
valuation;
(f) “going
concern valuation” means a valuation, prepared on the basis of actuarial
assumptions and methods that are adequate and appropriate and that are in
accordance with generally accepted actuarial principles, of the assets and
liabilities of a plan respecting which no decision has been made to terminate
it or to wind it up;
(g) “insured
plan” means a pension plan under which all the benefits are insured by a
contract with an insurance business under which that business is obligated to
pay those benefits;
(h) repealed
AR 197/2006 s3;
(h.1) “letter
of credit” means a letter of credit that is in accordance with the rules of International
Standby Practices ISP98 (Publication No. 590) of the International Chamber
of Commerce and, where applicable, includes any renewal, amendment or
confirmation of such a letter of credit or the documents evidencing such a
renewal, amendment or confirmation;
(i) “LIF”
means a retirement income arrangement, known as a life income fund, that is a
RRIF that meets the conditions set out in section 40;
(j) repealed
AR 197/2006 s3;
(k) “LIRA”
means a locked‑in retirement account;
(l) “LRIF”
means a former retirement income arrangement known as a locked‑in
retirement income fund that was a RRIF and that is or was liable to conversion
or transfer pursuant to section 41;
(m) “non‑DC RIA
portion of a plan” means
(i) the defined benefit provisions of a pension plan, or
(ii) those defined contribution provisions of a plan that do not make
provision for a DC RIA;
(n) “Option”,
(i) followed by the numeral “1”, means the option, so entitled, in
Part 1 of Form 6 agreeing to the unlocking of up to 50% of commuted value or
the value of the vehicle account in question,
(ii) followed by the numeral “2”, means the option, so entitled, in
Part 1 of Form 6 giving up the right to receive the minimum 60% survivor
pension or annuity, and
(iii) followed by the numeral “3”, means the option , so entitled, in
Part 2 of Form 6 giving up all rights as automatic designated beneficiary,
such option being
exercisable by a pension partner;
(o) “normal
actuarial cost” means the amount estimated by a reviewer, on the basis of a
going concern valuation, to be the cost to persons required to contribute to a
plan of the plan’s benefits for a fiscal year, excluding any special payments,
determined in accordance with the same methods and assumptions that are used to
determine the going concern liabilities;
(p) “original
owner” means, in the context of a LIRA or LIF, an individual who was a member
or former member of a pension plan and who made a transfer pursuant to section
38 or 30(5) of the Act or section 39, 40, 41 or 46.1 of this Regulation
(whether before or after the commencement of this clause), the assets deriving
from which transfer are currently held in a LIRA or LIF, as the case may be;
(p.1) “owner”
means
(i) an original owner,
(ii) a surviving pension partner owner, or
(iii) a non‑member‑pension partner who owns a LIRA or LIF,
as the case may be, as a result of the application of Parts 4 of the
legislation;
(q) “portability”
means the capacity to transfer money on a locked‑in basis from one
vehicle to another;
(q.1) “publicly
funded plan” means a pension plan, including a supplemental pension plan,
(i) that is wholly or partially funded, whether directly or
indirectly, from a public entity that operates on a non‑profit basis and
that is, was or has the potential to be an employer under a pension plan
covered by the Public Sector Pension Plans Act or Schedule 1 to the Teachers’
and Private School Teachers’ Pension Plans (AR 203/95) or from
a source related to such an entity, and
(ii) that is designated by the Superintendent, by written notice to
that entity and the plan’s administrator, as a publicly funded plan for the
purposes of the legislation;
(r) “retirement
income” means a series of payments to the owner of a LIF, or DC RIA
benefits, and includes future entitlements to any such payments or benefits;
(r.1) “retirement
income commencement” means, with respect to the money in question, the time
when a former member or an original owner initially transfers or transferred
the money from a pension plan or a LIRA to a LIF, a DC RIA or an LRIF
(before its abolition);
(s) “reviewer”
means the person referred to in section 9(2) making the review in question;
(t) “RRIF”
means a retirement income fund within the meaning of the tax Act that is
registered under the tax Act;
(u) repealed
AR 197/2006 s3;
(v) “solvency
ratio” means the fraction obtained by dividing the value of a plan’s assets
determined by applying subsection (2)(a) and (b)(i), by the liabilities of that
plan calculated on a plan termination basis as of the latest review date;
(w) “special
payments” means payments referred to in section 48(3)(b) or (c), (4) or (5);
(x) “statement
of investment policies and procedures” means the statement established under
section 51(1);
(x.1) “surviving
pension partner owner” means, in relation to money that is currently held in a
LIRA or a LIF, as the case may be, an individual who made a transfer pursuant
to section 39(6) of the Act or section 39(27) of this Regulation;
(x.2) “the
legislation” means the Act or this Regulation or both, as the case may be;
(x.3) “transferee
financial institution” means a financial institution that has received or is to
receive money for deposit into a LIRA, LIF or annuity;
(x.4) “transferor
financial institution” means a financial institution that has transferred or is
to transfer money for deposit into a pension plan, LIRA, LIF or annuity;
(y) “unfunded
liability” means the amount, if any, by which a plan’s going concern
liabilities exceed its going concern assets;
(z) “vehicle”
means a pension plan generally, the DC RIA or non‑DC RIA
portion of a plan specifically, a LIRA, a LIF or an annuity.
(2) For the purposes of section 1(1)(g),
the value of a plan’s assets is
(a) to
be determined as of the latest review date and on the basis of their market
value, but reduced by the actuary’s estimate of the expenses that would be incurred
in winding up the plan, and
(b) to
include
(i) any cash balances and accrued and receivable income,
(ii) the actuarial present value, determined using the same methods
and assumptions as are used in the valuation of the plan’s liabilities for the
purposes of section 1(1)(g), of any special payments referred to in section
48(3)(b) that are
(A) payable in respect of benefits for
employment before the effective date of the plan, if no benefits for that
employment have been provided under the plan previous to the establishment of
those special payments, or
(B) payable over the 5 years following the
plan’s latest review date and not included in paragraph (A),
and
(iii) money committed under a conforming letter of credit.
(2.1) References in this Regulation to the issuing of
a letter of credit are to be taken to mean,
(a) where
the letter of credit is or was renewed (whether with or without an increase or
decrease in the amount covered), to the renewal or the latest renewal of it or
to the letter of credit as renewed, and
(b) where
the letter of credit is or was confirmed, to the confirmation or the latest
confirmation of it or to the letter of credit as confirmed,
as the case may be,
and, for the avoidance of any doubt, to include the replacement of an existing
letter of credit.
(2.2) References
in this Regulation to confirmation, in the context of a letter of credit, mean
the assumption, whether by force of law or of contract, by a Canadian banking
subsidiary of a foreign bank of liability for any payments under the letter of
credit for which that foreign parent bank is liable but does not pay.
(3) Where
a provision of this Regulation requires or allows a person to provide a
certified copy of a Form to another person, that provision is met if the
original is provided instead.
(4) Section 27 of the Act, as it relates
to Part 3 and section 1 of the Act, also applies with respect to Part 3 and
sections 1 and 2 of this Regulation respectively.
(5), (6) Repealed AR 197/2006 s3.
AR 35/2000 s2;109/2003;133/2003;245/2003;197/2006;224/2007
Application of
legislation to new Universities pension plan
2.1 The Act and this Regulation
apply to the new pension plan regulated under that legislation and called the
“Universities Academic Pension Plan” subject to the exemptions and other
provisions that are contained in Schedule 0.1.
AR 218/2000 s2;245/2003
Part 1
Administration
Collection of personal
information
3(1) The
Superintendent may collect personal information about persons entitled to
benefits under a pension plan if the information is necessary to determine
whether the plan is in full compliance with the Act and this Regulation.
(2) Without
limiting any other rights as to the collection, use or disclosure of personal
information, the Superintendent and a financial institution may collect and use
such information as is needed to implement section 41.1.
(3) For
the purposes of section 87(1)(d.1) of the Act, the Superintendent may collect
and may disclose to the Director of Maintenance Enforcement such information
relating to maintenance, and owners who the Superintendent considers are or are
probably debtors, within the meaning of the Maintenance Enforcement Act,
as that Director needs for the purposes of a program under that Act.
AR 35/2000 s3;197/2006
Extension of time
limits
4 For the purposes of section 9 of the Act, the prescribed
provisions are
(a) sections
8, 12.1(4), 14(1), (2) and (3), 15(1) and (4), 19(1), 20(1) and (1.1), 23(2),
36(5), 45(1) and (2), 50(1), (2), (3.2) and (3.3), 73(1), 76(3) and (4) and
77.1(3) of the Act, and
(b) sections 7, 8, 10(2), 12, 13.1, 14 to 17,
19(1), 20, 22(1), 23, 24, 27(2), (3) and (5), 55(9), (10) or (11) and 63(2)(a)
of this Regulation.
AR 35/2000
s4;245/2003;197/2006;224/2007
Attachment of
conditions to consents, etc.
4.1 Where a provision of this
Regulation empowers the Superintendent to give a consent, approval, exemption
or other permission, if the permission is given in writing, the Superintendent
may attach any conditions in and to it that are considered appropriate in the
circumstances.
AR 197/2006 s6
Participation
agreements
5(1) The conditions referred to in section 1(1)(cc.1) of the
Act, so far as it relates to a specified multi‑employer plan, whether or
not any particular employer was a party to the original agreement where there
is more than one agreement, are that the agreement or agreements
(a) set
the terms of employer participation in the plan,
(b) bind
all the employers to the terms of the trust deed or agreement or similar
document, and
(c) make
each employer responsible for making contributions and special payments to the
plan as required by the applicable collective agreement.
(2) The conditions referred to in
section 1(1)(cc.1) of the Act, so far as it relates to a multi‑unit plan,
and that are also prescribed for the purposes of section 11(2) of the Act,
whether or not any particular employer was a party to the original agreement
where there is more than one agreement, are that the agreement or agreements
(a) set
the terms of employer participation in the plan,
(b) bind
all the employers to the terms of the trust deed or agreement or similar
document, and
(c) make each employer responsible for making
contributions and special payments to the plan as required under the plan by
the administrator.
AR 35/2000
s5;245/2003;197/2006
Removal and
appointment of
administrator ‑ re
