GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Pension Benefits Standards Act, 1985 — P-7.01 8
avention occurred because the administrator relied in good faith on (a) financial statements of the pension plan prepared by an accountant, or a written report of the auditor or auditors of the plan, that have been represented to the administrator as fairly reflecting the financial condition of the plan; or (b) a report of an accountant, an actuary, a lawyer, a notary or another professional person whose profession lends credibility to the report. Conflict of interest (6) A person shall not accept an appointment to a body referred to in paragraph 7(1)(a) or (b) or subparagraph 7(1)(c)(ii) if there would be a material conflict of interest between that person’s role as a member of that body and that person’s role in any other capacity. Not a conflict of interest (6.1) For the purposes of subsection (6), merely being entitled to a pension benefit or having an interest in a pension benefit credit does not constitute a conflict of interest. Eliminating conflict of interest (7) A person described in subsection (6) shall, within ninety days after becoming aware that a material conflict of interest exists, (a) eliminate that conflict of interest; or (b) resign as a member of that body. Validity of documents (8) A document issued by a board of trustees or other similar body or a pension committee is valid notwithstanding a material conflict of interest of a member thereof. Removal of member (9) If a person contravenes subsection (6) or (7), the Superintendent or any other interested person may apply to a court of competent jurisdiction for an order that that person be replaced, and the court may make an order on such terms as it considers appropriate. Other conflicts of interest (10) If there is a material conflict of interest between the role of an employer who is an administrator and their role in any other capacity, the administrator (a) shall, within thirty days after becoming aware that a material conflict of interest exists, declare that conflict of interest to the pension council or to the members of the pension plan; and (b) shall act in the best interests of the members of the pension plan. Court order (11) If an administrator contravenes subsection (10), a court of competent jurisdiction may, on application by the Superintendent or any other interested person, make any order on such terms as the court considers appropriate. R.S., 1985, c. 32 (2nd Supp.), s. 8; 1998, c. 12, s. 6; 2010, c. 12, s. 1791, c. 25, s. 183; 2012, c. 16, s. 86
Pension Benefits Standards Act, 1985 — P-7.01 9
Funding of pension plan 9 (1) A pension plan shall be funded in accordance with the prescribed tests and standards for solvency. Payments by employer (1.1) In respect of a pension plan that is not a multi-employer pension plan, the employer shall pay into the pension fund all amounts required to meet the prescribed tests and standards for solvency. Multi-employer pension plan (1.2) In respect of a multi-employer pension plan, each participating employer shall pay into the pension fund all contributions that they are required to pay under an agreement between participating employers or a collective agreement, statute or regulation. Actuarial reports (2) In the case of an actuarial report required under subsection 12(2), if the Superintendent is of the opinion that the report has not been prepared (a) on the basis of actuarial assumptions or methods that are adequate and appropriate, and (b) in accordance with the standards of practice adopted by the Canadian Institute of Actuaries, except as otherwise specified by the Superintendent, the Superintendent shall notify the administrator in writing of this opinion and shall direct the administrator to cause the appropriate changes to be made to the report, and the administrator shall forthwith comply with such a direction. Amended report (3) A pension plan shall be funded in accordance with the report referred to in subsection (2) as amended pursuant to any direction of the Superintendent under that subsection. (4) to (6) [Repealed, 1998, c. 12, s. 8] R.S., 1985, c. 32 (2nd Supp.), s. 9; 1998, c. 12, s. 8; 2010, c. 12, s. 1793
Pension Benefits Standards Act, 1985 — P-7.01 9.01
Designation of actuary 9.01 (1) If the Superintendent is of the opinion that it is in the best interests of the members or former members, or any other persons entitled to pension benefits under a pension plan, the Superintendent may designate an actuary to prepare, in accordance with subsection 12(3.1), an actuarial report or a termination report required under subsection 12(2) or 29(9), respectively, and to provide the administrator with the report within the period specified by the Superintendent. Notification (2) The Superintendent must notify the administrator in writing of the designation. If the administrator is not the employer, the administrator must notify the employer in writing. Obligation to provide information (3) The administrator and employer must, if requested to do so, provide the designated actuary with any information in their possession or control that the designated actuary considers necessary for the preparation of the report. Comments on draft report (4) Before finalizing the report, the designated actuary must provide the administrator with a copy of the draft report and give the administrator an opportunity to submit comments. Report to be filed (5) The administrator must file with the Superintendent the report prepared by the designated actuary within the period specified by the Superintendent. Power of Superintendent (6) If the administrator fails to file the report within the specified period, the Superintendent may require the designated actuary to provide a copy of the report. Replacement report (7) If the administrator has already filed the report in respect of which an actuary is designated, subsection 9(2) does not apply to that report and the designated actuary’s report replaces it. Funding of pension plan (8) A pension plan must be funded in accordance with the report prepared by the designated actuary, once the report has been filed under subsection (5) or provided to the Superintendent under subsection (6). Fees and expenses (9) The administrator must pay out of the pension fund the reasonable fees and expenses of the designated actuary that are associated with the preparation of the report. 2010, c. 12, s. 1794
Pension Benefits Standards Act, 1985 — P-7.01 9.1
Notification of remittance 9.1 (1) The administrator of a pension plan must notify in writing the trustee or custodian of the pension fund of all amounts that are to be remitted to the pension fund and the expected date of the remittance. Effect of late remittance (2) If a payment to a pension fund is not remitted within 30 days after the date referred to in subsection (1), (a) the administrator of the pension plan must immediately notify the Superintendent; and (b) a trustee or custodian of the pension fund must, if the administrator is the employer, immediately notify the Superintendent. Content (3) The Superintendent may direct the form and content of any notice referred to in subsection (2) as well as the manner of providing that notice. 1998, c. 12, s. 9; 2010, c. 25, s. 184
Pension Benefits Standards Act, 1985 — P-7.01 9.11
Letters of credit 9.11 (1) Subject to the regulations, an employer may provide a trustee with, or transfer to a trust, a letter of credit made out to the trustee for the benefit of the pension plan, instead of paying into the pension fund an amount that is required to be paid under subsection 9 (1.1). Copy to administrator (2) As soon as feasible after the letter of credit is issued, the employer must provide the administrator with a copy of it. Deductions from remuneration (3) The employer may not obtain a letter of credit in respect of an amount that it has deducted from members’ remuneration. Non-application (4) Subsection (1) does not apply in respect of a pension plan that has been terminated in whole. 2010, c. 12, s. 1795
Pension Benefits Standards Act, 1985 — P-7.01 9.12
Duty of employer 9.12 The employer must ensure that the letter of credit and the trust agreement comply with this Act and the regulations and must, at any intervals or times and in the form that the Superintendent directs, provide the Superintendent and the administrator with a written statement confirming that compliance. 2010, c. 12, s. 1795
Pension Benefits Standards Act, 1985 — P-7.01 9.13
Obligation of trustee 9.13 (1) The trustee must hold the letter of credit in trust for the pension plan. Disclosure (2) The trustee must file with the Superintendent any information in respect of a letter of credit that the Superintendent requires at any intervals or times that the Superintendent directs. No liability (3) No civil action lies against the trustee for having, in good faith and in accordance with the regulations, on the direction of the employer, allowed the letter of credit to be cancelled or its face value to be reduced. 2010, c. 12, s. 1795
Pension Benefits Standards Act, 1985 — P-7.01 9.14
Demand for payment 9.14 (1) In the prescribed circumstances, the trustee must make a demand to the issuer for payment into the pension fund of an amount equal to the face value of the letter of credit. Payment by employer (2) If the issuer fails to honour the letter of credit, the employer must pay an amount equal to its face value into the pension fund without delay. Non-application of subsection 8(1) (3) Subsection 8(1) does not apply to an amount in respect of which the employer has obtained a letter of credit unless the issuer fails to honour the letter of credit. Bankruptcy, etc., of employer (4) In the event of any liquidation, assignment or bankruptcy of the employer, an amount equal to the amount of a letter of credit that has not been honoured by the issuer is deemed to be separate from and form no part of the estate in liquidation, assignment or bankruptcy. 2010, c. 12, s. 1795
Pension Benefits Standards Act, 1985 — P-7.01 9.15
Costs 9.15 The costs that are associated with obtaining, holding, amending or cancelling a letter of credit may not be paid out of the pension fund. 2010, c. 12, s. 1795
Pension Benefits Standards Act, 1985 — P-7.01 9.16
Reduction of payments 9.16 If the employer is a Crown corporation, a payment that it is required to make under subsection 9 (1.1) may be reduced, provided the payment does not relate to any amount that the employer has deducted from members’ remuneration and the prescribed conditions have been met. 2010, c. 12, s. 1795
Pension Benefits Standards Act, 1985 — P-7.01 9.2
on is final and binding on the parties and on any other person affected by it. Notification to unions (14) All notifications to unionized members under this section must also be made to the executive of their union. Union represents members (15) Unless otherwise provided by the relevant collective agreement, the executive of a union shall represent its members, other than former members of the plan, for the purposes of this section. 1998, c. 12, s. 9; 2001, c. 34, s. 67(F); 2010, c. 12, s. 1796, c. 25, s. 185
Pension Benefits Standards Act, 1985 — P-7.01 10
Duty of administrator to file documents 10 (1) The administrator of a pension plan shall file with the Superintendent, within 60 days after the plan is established and in the form and manner, if any, that the Superintendent directs, (a) a copy of the plan; (b) a copy of every document that creates or supports the plan or the pension fund; and (c) a declaration signed by the administrator that the plan complies with this Act and the regulations. Registration of pension plan (2) Subject to subsection (3), the Superintendent shall register a pension plan and issue a certificate of registration in respect of the plan if the administrator has filed the documents under subsection (1). Refusal to register (3) The Superintendent may refuse to register a pension plan if the plan does not comply with this Act or the regulations. Notification (4) If the Superintendent refuses to register a pension plan, the Superintendent shall notify the administrator of the particulars of the non-compliance. Administration of plan prohibited (5) An administrator shall not administer a pension plan before complying with subsection (1) and shall, while the plan remains in force, ensure that it complies with this Act and the regulations. Treatment of surplus (6) Every pension plan that is filed for registration must provide for the use of surplus during the continuation of the plan and on its termination. Funding and governance policies (7) The administrator of a negotiated contribution plan must, before the plan is filed for registration, establish a funding policy and a governance policy that contain the prescribed information. Filing not required (8) The administrator is not required, for the purposes of subsection (1), to file the funding policy and the governance policy established under subsection (7) or to file any amendment to those policies for the purposes of subsection 10.1(1). Compliance of policies (9) While the plan remains in force, the administrator must ensure that the funding policy and the governance policy established under subsection (7) comply with this Act and the regulations. Transitional provision (10) An administrator of a negotiated contribution plan that was registered or was filed for registration under this section before the day on which subsection (7) comes into force must, within one year after that day, establish the policies referred to in subsection (7). R.S., 1985, c. 32 (2nd Supp.), s. 10; 1998, c. 12, s. 10; 2010, c. 25, s. 186 2021, c. 23, s. 188
Pension Benefits Standards Act, 1985 — P-7.01 10.1
Filing of amendments 10.1 (1) The administrator of a pension plan must file with the Superintendent, within 60 days after an amendment is made to any document referred to in subsection 10(1), in the form and manner, if any, that the Superintendent directs, a copy of the amendment and a declaration, signed by the administrator that the plan as amended complies with this Act and the regulations. Void amendments (2) Unless the Superintendent authorizes the amendment, an amendment is void or, in Quebec, null if (a) with respect to a pension plan, it would have the effect of reducing (i) pension benefits accrued before the date of the amendment or pension benefit credits relating to pension benefits accrued before the date of the amendment, or (ii) an immediate or deferred pension benefit to which a member, former member or any other person was entitled before the date of the amendment; (b) with respect to a pension plan other than a negotiated contribution plan, (i) the solvency ratio of the pension plan would fall below the prescribed solvency ratio level, (ii) the amendment would reduce the solvency ratio of the pension plan and the solvency ratio would be below the prescribed solvency ratio level once the amendment is made, or (iii) the solvency ratio of the pension plan is below the prescribed solvency ratio level and the amendment would increase pension benefits or pension benefit credits; or (c) with respect to a negotiated contribution plan, the amendment does not meet the requirements of the regulations. (d) [Repealed, 2021, c. 23, s. 189] 1998, c. 12, s. 10; 2010, c. 12, s. 1797, c. 25, s. 187 2021, c. 23, s. 189
Pension Benefits Standards Act, 1985 — P-7.01 10.11
Negotiated contribution plans 10.11 The administrator of a negotiated contribution plan may, subject to section 10.1 and despite the terms of the pension plan, make an amendment to any document referred to in paragraph 10(1)(a) or (b) that has the effect of reducing pension benefits or pension benefit credits. 2010, c. 12, s. 1798, c. 25, s. 188
Pension Benefits Standards Act, 1985 — P-7.01 10.2
No transfer without permission 10.2 (1) Subject to section 26, the administrator may transfer or permit the transfer of any part of the assets of the pension plan that relate to defined benefit provisions to another pension plan, including a pension plan to which this Act does not apply, only with the Superintendent’s permission. Transfer to pooled registered pension plan (2) Subject to section 26, the administrator may transfer or permit the transfer of any part of the assets of the pension plan to a pooled registered pension plan, within the meaning of subsection 2 (1) of the Pooled Registered Pension Plans Act , only with the Superintendent’s permission. 1998, c. 12, s. 10; 2010, c. 12, s. 1799; 2012, c. 16, s. 87
Pension Benefits Standards Act, 1985 — P-7.01 10.3
Designated entity 10.3 (1) The Minister may, with the approval of the Governor in Council, designate an entity, as defined in section 2 of the Bank Act , for the purposes, among others, of receiving and holding the pension benefit credit of any person who cannot be located, as well as the assets of a pension plan relating to that credit, and of disbursing that credit in a lump sum. Transfer (2) The administrator of a pension plan may transfer to the designated entity the pension benefit credit of any person who cannot be located, as well as the assets of a pension plan relating to that credit. If transfer impairs solvency (3) However, the administrator of a pension plan must obtain the consent of the Superintendent to transfer pension benefit credits and assets to the designated entity if, in the Superintendent’s opinion, the transfer would impair the solvency of the pension fund. Transfer to Her Majesty (4) A designated entity that holds, for the prescribed period of time, the assets relating to the pension benefit credit of a person who cannot be located, must transfer those assets to Her Majesty in right of Canada. Limitation period or prescription (5) Upon transfer of assets to Her Majesty in right of Canada, a claim to the pension benefit credit associated with those assets can no longer be made. 2010, c. 25, s. 189
Pension Benefits Standards Act, 1985 — P-7.01 10.4
Establishment of separate pension plan 10.4 (1) The Superintendent may direct the administrator of a pension plan that is subject to the pension legislation of more than one jurisdiction to (a) establish a separate pension plan for members employed in included employment, former members who were employed in included employment and any survivors of those members or former members; and (b) transfer assets and liabilities relating to the members and former members of the separate pension plan, as well as to any survivors of those members or former members, from the original pension plan to the separate pension plan. Comparable plan (2) A separate pension plan must be comparable, in the opinion of the Superintendent, to the original pension plan. 2010, c. 25, s. 189
Pension Benefits Standards Act, 1985 — P-7.01 11
Superintendent’s directions to administrators 11 (1) If, in the opinion of the Superintendent, an administrator, an employer or any person is, in respect of a pension plan, committing or about to commit an act, or pursuing or about to pursue any course of conduct, that is contrary to safe and sound financial or business practices, the Superintendent may direct the administrator, employer or other person to (a) cease or refrain from committing the act or pursuing the course of conduct; and (b) perform such acts as in the opinion of the Superintendent are necessary to remedy the situation. Directions in the case of non-compliance (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 direct the administrator, the employer or any person to (a) cease or refrain from committing the act or pursuing the course of conduct that constitutes the non-compliance; and (b) perform such acts as in the opinion of the Superintendent are necessary to remedy the situation. Opportunity for representations (3) Subject to subsection (4), no direction shall be issued under subsection (1) or (2) unless the Superintendent gives the administrator, employer or other person a reasonable opportunity to make written representations. Temporary direction (4) If, in the opinion of the Superintendent, the length of time required for representations to be made under subsection (3) might be prejudicial to the interests of the members, former members or any other persons entitled to pension benefits under the pension plan, the Superintendent may make a direction with respect to the matters referred to in subsection (1) or (2) that has effect for a period of not more than 15 days. Continued effect (5) A temporary direction under subsection (4) continues to have effect after the expiry of the fifteen day period referred to in that subsection if no representations are made to the Superintendent within that period or, if representations have been made, the Superintendent notifies the administrator, employer or other person that the Superintendent is not satisfied that there are sufficient grounds for revoking the direction. R.S., 1985, c. 32 (2nd Supp.), s. 11; 1998, c. 12, s. 10; 2010, c. 12, s. 1800
Pension Benefits Standards Act, 1985 — P-7.01 11.1
Revocation of registration 11.1 The Superintendent may revoke the registration and cancel the certificate of registration in respect of a pension plan if the administrator of the plan does not comply with a direction under section 11 within sixty days, or such longer period as the Superintendent may determine, after being informed by the Superintendent of the failure to comply. The Superintendent shall notify the administrator of the measures taken, including the date of the revocation and cancellation. 1998, c. 12, s. 10
Pension Benefits Standards Act, 1985 — P-7.01 12
Annual reporting requirements 12 (1) The administrator of a pension plan shall file with the Superintendent — annually or at any other intervals or times that the Superintendent directs — an information return relating to that pension plan, containing the prescribed information. Actuarial reports, financial statements and other information (2) The administrator of a pension plan shall file with the Superintendent actuarial reports, financial statements, and any other information required by or under the regulations at any intervals or times that the Superintendent directs. Employer (3) The employer shall file with the Superintendent any information required by or under the regulations at any intervals or times that the Superintendent directs. Actuarial reports and financial statements (3.1) Except as otherwise specified by the Superintendent, (a) the actuarial reports must be prepared in accordance with the standards of practice adopted by the Canadian Institute of Actuaries; and (b) the financial statements must be prepared in accordance with generally accepted accounting principles, the primary source of which is the Handbook of the Chartered Professional Accountants of Canada. Form and manner of filings and time limit (4) Every document required to be filed under this section shall be filed in the form and manner, if any, that the Superintendent directs, and unless otherwise directed by the Superintendent, within six months after the end of the plan year to which the document relates. R.S., 1985, c. 32 (2nd Supp.), s. 12; 1998, c. 12, s. 12; 2010, c. 12, s. 1801, c. 25, s. 190; 2017, c. 26, s. 62
Pension Benefits Standards Act, 1985 — P-7.01 13
Information to members 13 The administrator of a pension plan must provide the members, former members and any other persons entitled to pension benefits under the plan with any information that the Superintendent specifies, at the time and in the manner specified by the Superintendent. R.S., 1985, c. 32 (2nd Supp.), s. 13; 1998, c. 12, s. 13; 2010, c. 12, s. 1802