Pension Benefits Standards Act, 1985 — P-7.01 151
151 The Act is amended by adding the following after section 16.5: Variable Life Benefits Fund and benefits 16.6 (1) Subject to the regulations, a pension plan may (a) provide for the establishment within the pension fund of a variable life benefit fund from which variable life benefits are to be paid; and (b) provide that a person referred to in subsection (2) may, in order to receive variable life benefits, elect to transfer to the variable life benefit fund any amounts in either or both of the following accounts: (i) their account in the pension fund maintained in respect of a defined contribution provision, and (ii) their account in the pension fund maintained for additional voluntary contributions. Persons who may elect (2) The following persons may make the election referred to in paragraph (1)(b): (a) a member or former member who is entitled to an immediate pension benefit under subsection 16(1) or eligible to receive an immediate pension benefit under subsection 16(2); (b) a survivor who is entitled to pension benefits under the pension plan. Conditions on election 16.7 A person referred to in subsection 16.6(2) may elect to transfer amounts to the variable life benefit fund only if the prescribed conditions are met. No accounts in fund 16.8 A variable life benefit fund does not contain individual accounts for recipients of variable life benefits and, for greater certainty, a reference in this Act to an account, made in relation to a defined contribution provision or a defined contribution plan, is not to be construed as referring to amounts held within a variable life benefit fund. Termination 16.9 (1) This section, and not section 29, applies with respect to the termination of a variable life benefit fund if that termination includes only the termination of one or more such funds and the whole of the plan is not being terminated. No partial termination (2) A partial termination of a variable life benefit fund is not permitted. Termination by administrator (3) Subject to subsection (4), a variable life benefit fund is terminated only if the administrator of the pension plan notifies the Superintendent — in writing or in the form and manner, if any, that the Superintendent directs — of the decision to terminate the fund and the date of termination, not less than 60 days and not more than 180 days before the date of termination. Declaration by Superintendent (4) In the prescribed circumstances, the Superintendent may declare a variable life benefit fund to be terminated as of the date that the Superintendent considers appropriate. Termination report (5) On the termination of a variable life benefit fund, the administrator shall file with the Superintendent — in the form and manner, if any, that the Superintendent directs — a termination report that contains the prescribed information and that is prepared by a person having the prescribed qualifications. Approval of termination report (6) Assets of the variable life benefit fund may not be applied toward the provision of any benefits until the Superintendent has approved the termination report. The administrator may nevertheless pay variable life benefits, as they fall due, to the persons entitled to them. Transfer or purchase on termination 16.91 (1) On the termination of a variable life benefit fund under section 16.9, a former member or survivor who was receiving a variable life benefit from the fund is entitled to (a) transfer, for the purpose of making an election to receive a variable benefit under section 16.2, the amount of the aggregate value of their variable life benefits at termination to an account maintained in the pension plan in respect of a defined contribution provision, if the pension plan provides for such an election; (b) transfer that amount to another pension plan, including one referred to in any of paragraphs 26(5)(a) to (c), if that other plan permits; (c) transfer that amount to a retirement savings plan of the prescribed kind for the former m