Pension regulation in Canada

Pension regulation in Canada falls mostly within provincial jurisdiction by virtue of the property and civil rights power under the Constitution Act, 1867. For workers whose employers are subject to federal jurisdiction, such jurisdiction extends to regulating pension plans available to them.

Pension Benefits Act (Ontario)

The Pension Benefits Act is administered by the Superintendent of Financial Services appointed by the Financial Services Commission of Ontario. Ontario regulates approximately 8,350 employment pension plans, which comprise more than 40 per cent of all registered pension plans in Canada[1]

It was originally enacted as the Pension Benefits Act, 1965 (S.O. 1965, c. 96), and it was the first statute in any Canadian jurisdiction to regulate pension plans.[2]

Overview
  • all pension plans in the province must be registered with the Superintendent
  • a plan must have an administrator
  • the administrator has a statutory duty to exercise care, diligence and skill
  • the plan may be either defined benefit or defined contribution, and appropriate rules are in place to protect the benefits that have accordingly accrued to each member
  • rules are in effect to determine the value of benefits that may be transferred or divided for family law purposes
  • the plan must have sufficient funding to provide the benefits that have been committed under it
  • protections are in place in the event of the winding up of a plan, or the underfunding of a plan in the event of the employer's insolvency
  • transfers between plans cannot take place without the Superintendent's authorization
  • a guarantee fund is in place for guaranteeing certain benefits provided by plans, and it is funded by all employers providing such plans

Content
Structure of the Act by section
Sections Description
(1-1.1) Interpretation
(2-5.1) Application
(6-24) Registration and administration
(24.1-30.1) Record keeping and disclosure
(31-34) Membership
(35-38) Retirement
(39-54) Benefits
(55-62.1) Contributions
(63-67) Locking in
(67.1-67.6) Family law matters
(68-77) Winding up
(77.1-77.10) Transition - partial wind up
(77.11-79.0.1) Surplus
(79.1-81) Asset transfers between pension plans
(81.1) Insolvency and bankruptcy
(82-86) Pension Benefits Guarantee Fund
(87-88) Superintendent's orders
(89-91) Notices of, and appeals from, intended decisions and orders
(95-99) Financial Services Commission of Ontario
(100-101) Agreements with designated jurisdictions
(102) Exemptions and special arrangements
(103-116) General

Manner of regulation by jurisdiction

In addition to registration requirements under the Income Tax Act relating to eligibility of expenses and deductions that are administered by the Canada Revenue Agency, plans are registered in the host jurisdiction as follows:

Jurisdiction Act Supervisory authority
 Canada (Federal) Pension Benefits Standards Act, 1985 (R.S.C., 1985, c. 32 (2nd Supp.)) Office of the Superintendent of Financial Institutions
 British Columbia Pension Benefits Standards Act, RSBC 1996 C. 352 British Columbia Financial Institutions Commission
 Alberta Employment Pension Plans Act RSA 2000, C. E‑8 Office of the Alberta Superintendent of Pensions
 Saskatchewan The Pension Benefits Act, 1992 SS 1992, C. P-6.001 Financial and Consumer Affairs Authority of Saskatchewan
 Manitoba The Pension Benefits Act C.C.S.M. c. P32 Office of the Superintendent - Pension Commission
 Ontario Pension Benefits Act R.S.O. 1990, C. P.8 Financial Services Commission of Ontario
 Quebec Supplemental Pension Plans Act R.S.Q., c. R-15.1 Régie des rentes du Québec
 New Brunswick Pension Benefits Act C. P-5.1 Office of the Superintendent of Pensions
 Nova Scotia Pension Benefits Act RSNS 1989 C. 340 Office of the Superintendent of Pensions
 Prince Edward Island No legislation in force. A bill is currently being considered by the Legislative Assembly
 Newfoundland and Labrador Pension Benefits Act, 1997 SNL1996 C. P-4.01 Superintendent of Pensions
 Yukon As for Federal
 Northwest Territories As for Federal
 Nunavut As for Federal
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References
  1. "Ontario Passes Bill to Further Pension Reform". Retrieved 2011-12-11.
  2. Gretchen Van Riesen, C.D. Howe Institute (August 2009). "The Pension Tangle: Achieving greater uniformity of pension legislation and regulation in Canada" (PDF). Retrieved 2011-12-09.
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