GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Pooled Registered Pension Plans Regulations — Pooled Registered Pension Plans Regulations
restricted locked-in savings plan means a registered retirement savings plan that meets the conditions set out in section 39. ( régime d’épargne immobilisé restreint )
Pooled Registered Pension Plans Regulations — (a)
security means (a) in respect of a corporation, a share of any class of shares of the corporation or a debt obligation of the corporation, and includes a warrant of the corporation, but does not include a deposit with a financial institution or a document evidencing such a deposit; and (b) in respect of any other entity, any ownership interest in or debt obligation of the entity. ( titre ou valeur mobilière )
Pooled Registered Pension Plans Regulations — Pooled Registered Pension Plans Regulations
voting share means a share of any class of shares of a corporation that carries voting rights under all circumstances or by reason of an event that has occurred and is continuing or by reason of a condition that has been fulfilled. ( action avec droit de vote )
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Indirect investments 2 For the purposes of these Regulations, the making, holding or acquiring of an investment indirectly by an administrator on behalf of a PRPP, the holding, acquiring or owning of property indirectly by an administrator on behalf of a PRPP or the lending of money indirectly by an administrator on behalf of a PRPP includes the making, holding, acquiring, owning or lending of an investment, a property or money, as the case may be, by a mutual fund, a pooled fund, a segregated fund or a trust fund in which the funds of a member’s account have been invested.
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Control 3 (1) For the purposes of these Regulations, (a) a person or an administrator of a PRPP controls a corporation if securities of the corporation to which are attached more than 50% of the votes that may be cast to elect the directors of the corporation are beneficially owned by the person or the administrator and the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the corporation; (b) a person or an administrator of a PRPP controls an unincorporated entity, other than a limited partnership, if more than 50% of the ownership interests into which the unincorporated entity is divided are beneficially owned by the person or the administrator and the person or the administrator is able to direct the business and affairs of the unincorporated entity; (c) the general partner of a limited partnership controls the limited partnership; and (d) a trustee of a trust controls the trust. Presumed control (2) For the purposes of these Regulations, a person or an administrator of a PRPP who controls an entity controls any other entity that is controlled by the entity.
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Affiliates 4 For the purposes of these Regulations, an entity is affiliated with another entity if the entity is controlled by the other entity or if both entities are controlled by the same person.
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Substantial investment 5 For the purposes of these Regulations, a person or an administrator of a PRPP has a substantial investment in (a) an unincorporated entity if the person or the administrator, or an entity controlled by the person or the administrator, beneficially owns more than 25% of the ownership interests in the unincorporated entity; and (b) a corporation if (i) the voting rights attached to voting shares of the corporation that are beneficially owned by the person or the administrator, or by an entity controlled by the person or the administrator, exceed 10% of the voting rights attached to all of the outstanding voting shares of the corporation, or (ii) the shares of the corporation that are beneficially owned by the person or the administrator, or by an entity controlled by the person or the administrator, represent ownership of more than 25% of the shareholders’ equity of the corporation.
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Associated 6 For the purposes of these Regulations, a person or an administrator of a PRPP is associated with (a) a corporation that the person or the administrator controls and every affiliate of every such corporation; (b) a person who controls the person or the administrator; (c) a partner who has a substantial investment in a partnership in which the person or the administrator has a substantial investment; (d) a trust or estate or succession in which the person or the administrator has a substantial investment or for which the person or the administrator serves as a trustee or in a similar capacity to a trustee; (e) the spouse or common-law partner of the person; and (f) a brother, sister or child or other descendant of the person, or the spouse or common-law partner of any of them.
Pooled Registered Pension Plans Regulations — 6.1
Designated provinces 6.1 The following provinces are designated provinces for the purposes of the Act: (a) Ontario; (a.1) Quebec; (b) Nova Scotia; (b.1) New Brunswick; (c) Manitoba; (c.1) British Columbia; (d) Saskatchewan. SOR/2016-121, s. 1; SOR/2016-309, s. 1; SOR/2017-219, s. 1 SOR/2023-61, s. 1
Pooled Registered Pension Plans Regulations — 6.2
Prescribed supervisory authorities 6.2 The following supervisory authorities are prescribed for the purposes of the Act: (a) for Ontario, the Superintendent of Financial Services appointed under section 5 of the Financial Services Commission of Ontario Act, 1997 , S.O. 1997, c. 28; (a.1) for Quebec, the Autorité des marchés financiers established under section 1 of An Act respecting the Autorité des marchés financiers , CQLR, c. A-33.2; (b) for Nova Scotia, the Superintendent of Pooled Registered Pension Plans appointed under section 6 of the Pooled Registered Pension Plans Act , S.N.S. 2014, c. 37; (b.1) for New Brunswick, the Superintendent of Pooled Registered Pension Plans appointed under paragraph 18(2)(e.1) of the Financial and Consumer Services Commission Act , S.N.B. 2013, c. 30; (c) for Manitoba, the Superintendent of Pensions employed under subsection 7(1) of The Pension Benefits Act , C.C.S.M. c. P32; (c.1) for British Columbia, the Superintendent of Pensions appointed under section 4 of the Pension Benefits Standards Act , S.B.C. 2012, c. 30; and (d) for Saskatchewan, the Superintendent of Pooled Registered Pension Plans appointed under section 5 of the Pooled Registered Pension Plans (Saskatchewan) Act , S.S. 2013, c. P-16.101. SOR/2016-121, s. 1; SOR/2016-309, s. 2; SOR/2017-219, s. 2 SOR/2023-61, s. 2
Pooled Registered Pension Plans Regulations — 6.3
Exempt provisions 6.3 Sections 5, 7, 14 and 16 and subsections 20(3) and (4) of the Multilateral Agreement Respecting Pooled Registered Pension Plans and Voluntary Retirement Savings Plans are exempt from the application of subsection 7(1) of the Act. SOR/2016-121, s. 1
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Prescribed conditions 7 For the purposes of subsection 11(1) of the Act, the Superintendent may, on application, issue a licence authorizing a corporation to be an administrator if (a) the corporation submits to the Superintendent a five-year business plan that includes (i) the reasons why the corporation believes that the PRPPs that it intends to administer will be sustainable over the course of the business plan, (ii) the number of plans that the corporation intends to have registered as PRPPs, (iii) a description of how the corporation intends to meet the requirement to provide the PRPPs to its members at low cost, and (iv) an estimate of the costs and of the fees, levies and other charges that would be triggered by the actions of a member; (b) the corporation has the financial resources required for the administration of a PRPP; (c) the corporation has procedures in place that are sufficient to identify, manage and control the risks associated with the PRPPs; (d) the corporation has the operational capability to administer a PRPP; (e) the officers and directors of the corporation are of good character, having demonstrated honesty, integrity and ethical behaviour in all of their professional activities; and (f) the corporation provides, on the request of the Superintendent, any document or information required to assess whether the corporation meets the conditions set out in paragraphs (b) to (e).
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Permitted investments 8 (1) Every PRPP must provide that the funds in a member’s account are to be (a) invested in accordance with sections 9 to 14; and (b) invested (i) in a name that clearly indicates that the investment is held in trust for the PRPP and, if the investment is capable of being registered, registered in that name, (ii) in the name of a financial institution, or a nominee of it, in accordance with a custodial agreement or trust agreement that is entered into on behalf of the PRPP with the financial institution and that clearly indicates that the investment is held for the PRPP, or (iii) in the name of CDS Clearing and Depository Services Inc., or a nominee of it, in accordance with a custodial agreement or trust agreement that is entered into on behalf of the PRPP with a financial institution and that clearly indicates that the investment is held for the PRPP. Custodial agreement (2) For the purposes of subsection (1), a custodial agreement must provide that an investment made or held on behalf of a PRPP under the agreement does not constitute an asset of the custodian or nominee.
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10% limit 9 (1) The administrator of a PRPP must not, directly or indirectly, invest more than 10% of the total market value of the funds in a member’s account in, or lend more than 10% of the total market value of the funds in a member’s account to (a) any one person; (b) associated persons; or (c) affiliated corporations. Exception (2) Subsection (1) does not apply in respect of the funds in a member’s account that are held by a bank, trust company or other financial institution to the extent that the funds are fully insured by the Canada Deposit Insurance Corporation, by Assuris or by any similar provincial body established for the purpose of providing insurance against loss of deposits with trust companies or other financial institutions. Exception (3) Subsection (1) does not apply to investments (a) in a mutual fund, a pooled fund or a segregated fund that meets the requirements applicable to a PRPP that are set out in section 10; (b) in an unallocated general fund of a person that is authorized to carry on a life insurance business in Canada; (c) that are made in accordance with sections 12 to 14 of Schedule III to the Pension Benefits Standards Regulations, 1985 ; (d) in securities issued or fully guaranteed by the Government of Canada, the government of a province, or an agency of either one of them; (e) in a fund composed of mortgage-backed securities that are fully guaranteed by the Government of Canada, the government of a province, or an agency of either one of them; (f) in a fund that replicates the composition of a widely recognized index of a broad class of securities that are traded at a marketplace; or (g) that involve the purchase of a contract or agreement in respect of which the return is based on the performance of a widely recognized index of a broad class of securities traded at a marketplace.
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Voting shares 10 (1) The administrator of a PRPP must not, directly or indirectly, invest the assets of the PRPP in the securities of a corporation to which are attached more than 30% of the votes that may be cast to elect the directors of the corporation. Exception (2) Subsection (1) does not apply to investments that are made in accordance with sections 12 to 14 of Schedule III to the Pension Benefits Standards Regulations, 1985 . Transaction (3) For the purposes of sections 11 to 13, “transaction” includes (a) the making of an investment in securities; (b) the taking of an assignment of, or otherwise acquiring, a loan made by a third party; (c) the taking of a security interest in securities or a hypothec on securities; and (d) any modification, renewal or extension of a prior transaction. It does not include the making of a variable payment, the transfer of funds into a member’s account or the withdrawal of funds from a member’s account.
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Related party transactions 11 For the purposes of sections 12 and 13, (a) if a transaction is entered into by, or on behalf of, a PRPP with a person who the administrator of the PRPP, or any person acting on the administrator’s behalf, knows will become a related party to the PRPP, the person is considered to be a related party of the PRPP in respect of the transaction; and (b) the fulfilment of an obligation under the terms of any transaction, including the payment of interest on a loan or deposit, is part of the transaction and not a separate transaction.
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Prohibition — related party 12 (1) Subject to sections 13 and 14, the administrator of a PRPP must not, directly or indirectly, (a) lend funds in a member’s account to a related party or invest those funds in the securities of a related party; or (b) enter into a transaction with a related party on behalf of the PRPP. 12-month period (2) Subject to sections 13 and 14, during the period of 12 months after the day on which a person ceases to be a related party of a PRPP, the administrator of the PRPP must not, directly or indirectly, (a) lend funds in a member’s account to that person or invest those funds in the securities of that person; or (b) enter into a transaction with that person on behalf of the PRPP.
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Exception — services of a related party 13 (1) The administrator of a PRPP may engage the services of any related party for the operation or administration of the PRPP under terms and conditions that are not less favourable than those, including those relating to price, rent or interest rate, that would apply to a similar transaction in an open market under conditions requisite to a fair transaction between parties who are at arm’s length and acting prudently, knowledgeably and willingly. Exception — securities of a related party (2) The administrator of a PRPP may invest in the securities of a related party that are (a) held by a mutual fund, a pooled fund or a segregated fund (i) that meets the requirements applicable to a PRPP that are set out in section 10, and (ii) in which investors other than the administrator and its affiliates may invest and are invested; (b) held by a fund that replicates the composition of a widely recognized index of a broad class of securities traded at a marketplace; or (c) issued or fully guaranteed by the Government of Canada, the government of a province or an agency of either one of them.
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Non-application 14 Sections 9 to 13 do not apply in respect of (a) investments in a corporation that are held by, or on behalf of, a PRPP as a result of an arrangement, within the meaning of subsection 192(1) of the Canada Business Corporations Act , for the reorganization or liquidation of the corporation or for the amalgamation of the corporation with another corporation, if the investments are to be exchanged for shares or debt obligations; or (b) assets that are acquired by, or on behalf of, a PRPP through the realization of a security interest or a hypothec held by, or on behalf of, the PRPP and that are held for a period not exceeding two years after the day on which the assets were acquired.
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Default option — prescribed period 15 For the purposes of subsection 23(3) of the Act, if a member does not make an investment choice referred to in subsection 23(1) of the Act within 60 days after the day on which the notice referred to in paragraph 41(2)(a) of the Act is received, the investment option chosen by the administrator as the default option will apply to the member’s account.
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Default option 16 (1) An administrator of a PRPP must offer the same default option for all of the PRPPs that it administers. Default option — investments (2) The default option must be (a) a balanced fund; or (b) a portfolio of investments that takes into account a member’s age.
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Investment options 17 The administrator of a PRPP must provide (a) no more than six investment options including the default option in the PRPP; and (b) the same investment options to all members of the PRPP.
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Notice — option no longer available 18 (1) The administrator of a PRPP must notify a member in writing as soon as feasible after the administrator becomes aware that the member’s investment option will no longer be available. Default options (2) If the member does not choose another investment option within 60 days after the day on which the notice is received, the administrator must invest the member’s funds in an option that is similar to the previous option or in the default option. No fee, charge or levy (3) There must be no fee, charge or other levy associated with the transfer of the funds in a member’s account into a new investment option under this section. Content of notice (4) The notice must (a) for each investment option that is still available, include the description required under paragraph 23(c); (b) indicate that the member has 60 days after the day on which the notice is received to choose another option; and (c) indicate the administrator’s obligations under subsection (2) if the member does not choose another option within that period.
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Permitted inducements 19 An administrator may give, offer or agree to give or offer to an employer and an employer may demand, accept or offer or agree to accept from an administrator, as an inducement to enter into a contract with the administrator in respect of a PRPP (a) a product or a service on more favourable terms or conditions than the administrator would otherwise offer if the inducement is for the equal benefit of the employees of that employer who are eligible to be members of the PRPP; or (b) in relation to a transfer of assets into the PRPP administered by the administrator, an amount no greater than the employer’s costs associated with the transfer of assets into that PRPP.
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Criteria 20 The following criteria must be used to determine whether a PRPP is being provided to its members at low cost: (a) costs are to be at or below those incurred by members of defined contribution plans that provide investment options to groups of 500 or more members; and (b) costs are to be the same for all members of a PRPP.
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Condition 21 (1) A member may set a contribution rate of 0% if 12 months have elapsed since the member’s contributions to the PRPP began. Duration (2) The rate may be set at 0% for a period of 3 to 60 months. There is no limit on the number of times that the rate may be set at 0%. Contents of notice (3) The notice to be provided to the administrator under subsection 45(2) of the Act must be in writing and include (a) the member’s name and contact information and the name of the member’s employer; and (b) the period for which the contribution rate is to be set at 0%. Duties of administrator (4) The administrator must (a) no more than 60 days after the day on which the administrator is notified under subsection 45(2) of the Act (i) provide the member with written confirmation of when the contribution rate will be set at 0% and when contributions will resume, and (ii) ensure that the member’s contribution rate is set at 0%; and (b) no fewer than 90 days before the day on which contributions are to resume, provide the member with written notice of the day of resumption and the contribution rate on resumption.
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Advance notice to employees 22 The notice required under subsection 41(1) of the Act must include the expected effective date of the contract and (a) inform the employees that once the employer enters into the contract with the administrator the employees will be automatically enrolled and become members of the PRPP; (b) inform the employees of the notice requirement under subsection 41(2) of the Act and who will send the notice; (c) inform the employees of a member’s right to terminate their membership in the PRPP by notifying the employer within 60 days after the day on which the notice that is referred to in subsection 41(2) of the Act is received; and (d) inform the employees of the existence of any deposit accounts, loans, letters of credit or insurance policies that are held by the employer with the administrator.
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Notice of plan membership 23 For the purposes of paragraph 41(2)(b) of the Act, the notice must (a) inform the employee of the notice requirements set out in section 29 and include a form that would meet those requirements if completed by the employee; (b) indicate that, if an administrator offers investment options and a member has not communicated an investment choice within 60 days after receiving the notice, the default option will apply; (c) include a description of each investment option that indicates (i) its investment objective, (ii) the type of investments and the degree of risk associated with it, (iii) its top ten holdings by market value, (iv) its performance history, (v) that its past performance is not necessarily an indication of its future performance, (vi) the name and a description of the benchmark that best reflects the composition of the investment option, (vii) the cost associated with the investment option, expressed as a percentage or a fixed amount, and (viii) its target asset allocation; (d) indicate the contribution rates offered to members; (e) indicate the default contribution rate if a member does not make a choice; (f) indicate the employer’s contribution rate; (g) indicate the date when contributions will begin to be deducted; (h) explain the members’ right to set their contribution rate to zero; (i) explain how the contributions may be adjusted; (j) include a list of any fees, levies and other charges that would be triggered by a member’s actions; (k) list any other costs, expressed as a percentage or a fixed amount; (l) explain the locking-in provisions of the PRPP; (m) provide the address of the Financial Consumer Agency of Canada’s web page pertaining to the cost of PRPPs; (n) explain an employee’s right to opt back into the PRPP; and (o) explain how to obtain more information about the PRPP.
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Explanation of PRPP 24 A PRPP must provide that the explanation referred to in subparagraph 57(1)(a)(i) of the Act shall be provided on a website and, on request, directly to the member.