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| B.C. Reg. 433/93 O.C. 1716/93 |
Deposited December 17, 1993 effective February 1, 1994 |
Pension Benefits Standards Act
[includes amendments up to B.C. Reg. 310/2005, October 20, 2005]
1 (1) In this regulation:
"Act" means the Pension Benefits Standards Act;
"actuarial gain" means an improvement in the financial position of a plan attributable to a difference between the actual plan experience and the plan experience anticipated based on the actuarial assumptions underlying the previous review of the plan;
"contribution holiday" means a period of time during which contributions to a plan, which would otherwise be required to be remitted in accordance with section 43 (3) of the Act, are not remitted as a result of the existence of surplus assets;
"file" or "filed" means to file with the superintendent under the Act or this regulation;
"fiscal year" means, in relation to a pension plan, the fiscal year of that plan;
"going concern assets" means the value of the assets of a plan, including accrued and receivable investment income but excluding amounts payable, as of the review date, determined on the basis of a going concern valuation;
"going concern liabilities" means the actuarial present value of the accrued benefits of a plan determined on the basis of a going concern valuation;
"going concern valuation" means a valuation, prepared on the basis of actuarial assumptions and methods that are adequate and appropriate and in accordance with accepted actuarial practice, of the assets and liabilities of a plan respecting which no decision has been made to terminate the plan or to wind it up;
"insured plan" means a plan under which all the benefits are insured by a contract with an insurance company that is obligated to pay those benefits;
"life income fund" means a retirement income fund, within the meaning of the Income Tax Act (Canada), that is registered under that Act;
"normal actuarial cost" means an amount, estimated by a reviewer on the basis of a going concern valuation, to be the cost to a person required to contribute to a plan of the plan's benefits for a fiscal year, but excluding any special payments, determined using the same methods and assumptions that are used to determine the going concern liabilities;
"plan termination basis" means a basis for determining the value of a plan's liabilities that is predicated on the hypothesis of the plan terminating at the review date;
"review" means a review of a plan, as required by section 8 (4) of the Act, that contains one or more defined benefit provisions;
"review date" means the date as of which a review is or was required to be made;
"reviewer" means a person who does a review;
"solvency asset adjustment", in relation to an actuarial valuation report, means the sum of the following:
(a) the amount, positive or negative, by which the value of the solvency assets is adjusted by applying an averaging method that stabilizes short-term fluctuations in the market value of the plan assets calculated over a period of not more than 5 years;
(b) the present value of the special payments referred to in section 35 (3) (b) and (c) that are scheduled for payment over the longer of
(i) a period of 5 years commencing on the latest review date, or
(ii) a period commencing on the latest review date and ending on December 31, 2002;
(c) in the case of a defined benefit negotiated cost plan, the present value, determined using the actuarial assumptions used in preparing the report, of the excess, if any, in each future year of the amount of anticipated contributions in that year, based on the required contribution rate specified in the applicable collective agreement, over the contributions required in accordance with section 35 (3), as specified in the report, in respect of any years which fall within the longer of
(i) a period of 5 years commencing on the latest review date, or
(ii) a period commencing on the latest review date and ending on December 31, 2002;
"solvency assets" means the market value of investments held by a plan plus any cash balances of the plan and accrued or receivable income items of the plan, less any amounts payable by the plan, including actual and reasonable wind up expenses unless the plan provides that the employer pays the wind up expenses;
"solvency deficiency" means an amount, if any, by which the liabilities of a plan, determined on a plan termination basis as of the latest review date, exceed the sum of the solvency assets and the solvency asset adjustment, both determined as of the latest review date;
"solvency ratio" means the fraction obtained by dividing the solvency assets of a pension plan by the liabilities of that plan calculated on a plan termination basis as of the latest review date;
"special payments" means payments referred to in section 35 (3) (b) or (c) or (4);
"trade union" means a trade union as defined in the Labour Relations Code;
"unfunded liability" means an amount, if any, by which a plan's going concern liabilities exceed its going concern assets.
(2) For the purposes of this regulation, money in a pension plan, an RRSP, a life annuity contract as defined in section 29 (1) or a retirement income fund as defined in section 27 (2) is "locked in" if its withdrawal, surrender or commutation is prohibited by any of the following:
(a) sections 30 (1) or 58 (4) of the Act;
(b) section 29 or 30 of this regulation;
(c) a contract as defined in section 29 or 30 of this regulation;
(d) any legislation of a designated province that is similar to any of those provisions of the Act or this regulation, as the case may be.
(3) Repealed. [B.C. Reg. 455/99, s. 2.]
(4) For the purposes of the definition of "transfer deficiency" in section 25 (1), the most recent actuarial valuation report is the most recent report prepared with an effective date within the 4 years before the date of the application for a transfer unless the superintendent, in writing, accepts an alternative report.
[am. B.C. Reg. 455/99, ss. 1 and 2.]
2 (1) For the purposes of the definition of "designated province" and "initial qualification date" in section 1 (1) of the Act, the designated provinces and their initial qualification dates are as follows:
(a) Ontario, January 1, 1965;
(b) Quebec, January 1, 1966;
(c) Alberta, January 1, 1967;
(d) the Northwest Territories, October 1, 1967;
(e) the Yukon Territory, October 1, 1967;
(f) Saskatchewan, January 1, 1969;
(g) Manitoba, July 1, 1976;
(h) Nova Scotia, January 1, 1977;
(i) Newfoundland, January 1, 1985;
(j) New Brunswick, December 31, 1991;
(k) Nunavut, April 1, 1999.
(2) For the purposes of section 1 (1) of the Act, "pension plan" or "plan" does not include the following:
(a) an employees profit sharing plan or a deferred profit sharing plan as defined in the Income Tax Act (Canada);
(b) an arrangement to provide a retiring allowance as defined in the Income Tax Act (Canada);
(c) a defined benefit plan or defined contribution plan whose only members are "specified individuals" as defined in the regulations under the Income Tax Act (Canada), subject to the condition that sections 24 (2), 26 to 28, 30 and 33 to 40 of the Act apply;
(d) a supplemental pension plan under which the employer is, will be or, in the case of a terminated plan, was, required to make contributions on behalf of members if, under the supplemental pension plan, the members are entitled to benefits solely in excess of the maximum benefit or contribution limit under the Income Tax Act (Canada);
(e) benefits insured under a contract issued under the Government Annuities Act (Canada);
(f) a RRSP plan.
(3) For the purposes of the definition of "surplus assets" in section 1 (1) of the Act, the prescribed assets and liabilities of a pension plan are as follows:
(a) in the case of a defined benefit plan that is being wound up, the assets and liabilities as stated in the actuarial valuation report as of the date of the termination of the plan or such other date that is accepted in writing by the superintendent;
(b) in the case of a plan that is not being wound up, its going concern assets and going concern liabilities as stated in the most recent actuarial valuation report filed.
(4) and (5) Repealed. [B.C. Reg. 455/99, s. 3.]
[am. B.C. Regs. 31/98, s. 1; 455/99, s. 3.]
3 (1) Forfeited employer contributions in a defined contribution plan and all earnings of the plan reasonably attributable thereto are exempt from the definition of "surplus assets" in section 1 (1) of the Act if the plan provides for
(a) the return of the contributions to the employer,
(b) the reallocation of the contributions to members of the plan, or
(c) the accounting of the contributions on a basis that is a combination of paragraphs (a) and (b).
(2) If
(a) a plan provides a benefit or allocates surplus assets in respect of a person entitled to a benefit and the benefit, or the sum of the benefit and the surplus asset allocation, is in excess of the maximum benefit or contribution limit that could be applicable to the plan under the Income Tax Act (Canada), or
(b) the commuted value of a benefit or the commuted value of the pension payable to the surviving spouse is in excess of the maximum limit that can be transferred to another plan or to an RRSP under the Income Tax Act (Canada),
then the amount of that benefit, surplus asset allocation or commuted value that is in excess of that maximum limit is exempt from sections 30 (1) and 58 (4) of the Act and must not be treated as locked in for the purposes of this regulation.
(3) If a member is temporarily employed by an employer which has a separate pension plan and the 2 pension plans have made reciprocal agreement to collect and remit pension contributions and the contributions have been remitted, the plan making the contributions is not in conflict with section 30 (1) of the Act.
(4) If a member of a plan is on an approved leave of absence or is receiving disability benefits, including benefits provided under the Workers Compensation Act, the plan is exempt from applying section 30 (4), (5) and (6) of the Act to that member and the member's contributions continue to be locked in.
(5) If a plan gives a member the right to elect to purchase a deferred pension under a defined contribution provision before his or her termination of membership, death, pension commencement or the termination of the plan, the commuted value of that deferred pension is exempt from sections 33 and 58 (4) of the Act unless the plan provides otherwise.
(6) If an additional amount of pension is payable from pension commencement and the plan provides for that additional amount
(a) to cease at the date when a pension becomes available or when receipt of the pension occurs under the Canada Pension Plan (Canada) or the Quebec Pension Plan (Quebec), or
(b) to cease no later than the end of the month immediately following the month in which the member or former member attains age 65,
then that additional amount of pension is exempt from section 35 of the Act.
(7) A defined benefit plan is exempt from section 32 of the Act if the defined benefit plan provides for annual indexation of a deferred pension benefit, up to the day when that deferred pension benefit commences to be paid, on the basis of
(a) increases of at least 75% of the annual increase in the consumer price index, minus one per cent, or
(b) any other formula that, in the superintendent's opinion, would provide protection that on the average would be comparable to that described in paragraph (a),
subject to the conditions that
(c) the actuarial value of the pension benefit, determined on a going concern actuarial valuation basis, must not be less than 100% of the member's own contributions with interest, and
(d) an amount calculated under paragraph (a) is not less than zero.
(8) For the purposes of subsection (7) (a),
(a) "consumer price index" means the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act (Canada),
(b) the annual increase of the consumer price index must be calculated by comparison between
(i) 2 consecutive and reasonably current 12 month periods, or
(ii) the most recent month for which data is available and the same month one year earlier, and
(c) the method selected under paragraph (b) (i) or (ii) to calculate the annual increase of the index must remain the same.
(9) A multi-employer plan is exempt from the requirement under section 69 of the Act to establish a pension advisory committee if
(a) the multi-employer plan is a plan established, or maintained by contributions required, under a collective agreement within the meaning of the Labour Relations Code, and
(b) at least one member or former member of the multi-employer plan is on the board of trustees constituted to administer the plan.
(10) A pension plan to which an enactment in Column 1 of Schedule 1 applies is exempt from a provision of the Act or this regulation as set out opposite in Column 2.
(11) The following pension plans are exempt from the definition of "multi-employer plan" in section 1 of the Act:
(a) University of British Columbia Staff Pension Plan;
(b) University of British Columbia Faculty Pension Plan;
(c) Council of Forest Industries Pension Plan;
(d) BC Gas Utility Ltd. Pension Plan for IBEW and OPEIU Members;
(e) Pension Plan for the Regular and Seasonal Employees of Canadian Fishing Company;
(f) British Columbia Packers Limited and Subsidiary Companies Employees Retirement Plan;
(g) the Pension Plan of the United Way of the Lower Mainland;
(h) Salzgitter Trade, Inc. Retirement Income Plan;
(i) West Kootenay Power Ltd. - IBEW Pension Plan - 1992.
(12) The Vancouver Grizzlies Players’ Pension Plan is exempt from the application of the Act and regulations.
(13) If a pension plan provides payments of pension benefits similar to the method of payments available from a life income fund, those payments are exempt from the application of section 30 (1) of the Act provided the plan complies with the requirements of section 30.1 of this regulation.
(14) The FortisBC IBEW Pension Plan is exempt from the application of section 29 (2) of the Act on condition that the Plan is amended to provide that
(a) subject to any regulations made with reference to section 45 (1) of the Act, the pension payable under section 28 of the Act, other than the portion accruing from additional voluntary contributions, must not be less than the pension payable under subsection 29 (1) of the Act, with the exception that it is not required to provide for annual indexation of the deferred or immediate pension benefit,
(b) the excess employee contributions determined in accordance with section 32 of the Act must be payable on termination of the plan,
(c) each future valuation must include an estimate of the expected rates of indexing that the plan would provide if the plan were terminated on the date of the valuation,
(d) immediate disclosure must be made to members and former members of the plan, and similar disclosures be made annually thereafter, concerning the change in benefits that will result from this exemption from the application of section 29 (2) of the Act in the event that the plan terminates including estimates of the extent that indexing would be provided on termination of the plan,
(e) copies of the disclosures described in paragraph (d) must be forwarded to the superintendent as soon as practicable, and
(f) an amendment to the plan can only be made with the prior approval of the superintendent if the solvency ratio of the plan will fall below 90% on the making of the amendment.
[am. B.C. Regs. 399/97; 30/98; 31/98, s. 2; 163/98; 455/99, s. 4; 131/2004, s. 1; 310/2005.]
4 (1) A return referred to in section 9 (3) (a) of the Act must
(a) be filed within 180 days after the end of each fiscal year, and, in addition, if a plan is being wound up under section 54 of the Act, be filed within 60 days after the commencement of the winding up of the plan in respect of that portion of the fiscal year up to the date of termination, and
(b) be accompanied by the fee required by section 75 of the Act.
(2) Repealed. [B.C. Reg. 455/99, s. 5.]
(3) For the purpose of section 9 (3) (a) of the Act, if a plan has been terminated with a solvency deficiency and the employer is not insolvent, annual information returns must continue to be filed within 180 days of successive fiscal year ends until the solvency deficiency has been eliminated.
(4) For the purpose of section 9 (7) (a) of the Act,
(a) the prescribed amount of plan assets is $10 million using the market value method to value the assets as of the fiscal year end, and
(b) if a financial statement is required to be filed under that section it must be filed within 270 days after the end of the fiscal year for which it is required.
(5) The audited financial statements referred to in section 9 (7) of the Act must be prepared in accordance with the accounting standards contained in the Handbook of the Canadian Institute of Chartered Accountants, as amended from time to time, except that those audited financial statements need not include information respecting pension benefit obligations.
[am. B.C. Regs. 455/99, s. 5; 550/2004.]
5 (1) Any statement, information or notice required by section 11, 12, 13, 14, 15, 16, 17, 36 (3) or (5) or 42 (2) may, without limiting any other effective mode of service, be sent by ordinary mail to the last known postal address of the member, former member or other person.
(2) If a statement, information or notice is returned because the member, former member or other person is not at his or her last known postal address, the requirement that an administrator provide the statement, information or notice required by section 11, 12, 13, 14, 15, 16, 17, 36 (3) or (5) or 42 (2) does not apply to that member, former member or other person unless a subsequent written request is received for the statement, information or notice.
6 (1) This section and section 7 apply only to pension plans that contain one or more defined benefit provisions.
(2) Every administrator of a pension plan must have the plan reviewed as follows:
(a) in the case of a new plan, as of the effective date of the plan;
(b) if the superintendent sends a notice to the administrator requesting that a review be made of the plan, as of the date specified in the notice;
(c) subject to paragraphs (a) and (b) and subsection (4), at intervals not exceeding 3 fiscal years after the immediately preceding review date, with the subsequent review date being the fiscal year end;
(d) in the case of a pension plan which is terminated under the conditions referred to in section 51 (2) of the Act, as of the date of termination, and annually after that until the solvency deficiency is shown to have been retired.
(3) The review of the plan
(a) must be made by a Fellow of the Canadian Institute of Actuaries, or
(b) in the case of an insured plan, may be made by a person who is authorized to prepare or sign an actuarial valuation report under section 7 (1).
(4) If an amendment to a plan affects the cost of benefits provided by the plan, creates an unfunded liability or otherwise affects the solvency or funding of the plan, the administrator must have the plan reviewed or the latest review revised as of the date the amendment is made.
(5) If the plan is reviewed under subsection (4), the review must be done as of the fiscal year end immediately preceding, or coincident with, the effective date of the amendment, and be updated to the effective date of the amendment.
(6) Subsection (4) does not apply if a Fellow of the Canadian Institute of Actuaries certifies that no change in contributions to the plan is required before the next review date.
[am. B.C. Reg. 455/99, s. 6.]
7 (1) For the purposes of section 9 (3) (b) of the Act, an actuarial valuation report respecting an insured plan may be prepared or signed, as the case may be, by any person so authorized by the insurance company.
(2) An actuarial valuation report resulting from a review must be filed as follows:
(a) in the case of a new plan, not later than 120 days after the establishment of the plan;
(b) in the case of a review date occurring after the effective date of a plan, not later than 270 days after the review date;
(c) if a review of a plan is made under section 6 (4), not later than 180 days after the date the amendment is made.
(3) An actuarial valuation report resulting from a review must be prepared in a manner that is consistent with the accepted standards of practice for the preparation of actuarial valuation reports in connection with pension plans issued by the Canadian Institute of Actuaries, and the reviewer must so certify and, subject to this section, must include the following as may be applicable:
(a) the estimated total dollar cost of benefits for all members, showing separately the employer contributions and the member contributions relating to the normal actuarial cost,
(i) for the fiscal year following the review date if that date falls on the last day of a fiscal year, or
(ii) for the fiscal year in which the review date falls if that date falls on any other day;
(b) the rules for computing normal actuarial cost and for allocating that cost between the employer and the members in respect of years of employment or years of membership credited under the plan in the period covered by the report or certificate;
(c) the date of establishment of any unfunded liability, the unamortized balance of any unfunded liability, the special payments to be made to amortize that liability and the date at which that liability will be amortized;
(d) either
(i) a statement that in the opinion of the reviewer there is no solvency deficiency and the actuarial basis underlying the reviewer's opinion, or
(ii) the date of establishment of any solvency deficiency, the unamortized balance of any solvency deficiency, the special payments to be made to amortize that solvency deficiency and the value of the assets and liabilities used to determine that solvency deficiency, together with the assumptions and valuation methods used to calculate the liabilities and the date at which the solvency deficiency will be amortized;
(e) either
(i) a statement that, in the opinion of the reviewer, the solvency ratio is not less than 1 and the actuarial basis underlying the reviewer's opinion, or
(ii) if the solvency ratio is less than 1, the solvency ratio;
(f) if the plan has an indexation provision, whether and to what extent
(i) liability for the future cost of the indexation provision has been included in the determination of any going concern unfunded liability, or
(ii) the cost for the indexation provision is included in the normal cost;
(g) the surplus assets of the plan and, if known to the reviewer, a description of how they will be utilized;
(h) the value of the assets of the plan on a market basis, the value of the going concern assets and a description of the valuation method used to determine the going concern assets;
(i) the value of the going concern liabilities, and a description of the assumptions and valuation methods used to determine those values, with respect to each of the following:
(i) members;
(ii) as a single grouping
(A) former members who have not commenced to receive their pensions under the plan, and
(B) other persons who have a future entitlement to receive payments from the plan;
(iii) as a single grouping
(A) former members receiving their pensions, and
(B) other persons who are receiving payments from the plan;
(j) in the case of a review occurring after the effective date of the plan, a reconciliation of the results of the review and identification of the sources of actuarial gains and losses due to plan experience since the immediately previous review date;
(k) in the case of a defined benefit negotiated cost plan where employer contributions are based on a fixed rate of dollars and portions of dollars per hour of employment
(i) the respective average rate per hour per member that must be contributed by the employer and the member in order to provide the benefits under the plan,
(ii) a breakdown of the rate specified under subparagraph (i), stating the rate per hour attributable to the plan's normal actuarial cost and the amortization of an unfunded liability or solvency deficiency and the rate per hour that is to be applied as part of a contingency reserve,
(iii) the average number of hours of employment per member per fiscal year that has been assumed for the purposes of the review, and
(iv) solvency liabilities as determined on the basis of the benefits structure set out in the plan at the date of the valuation, without taking into consideration any provision in the plan or in section 59 (3) of the Act which may require the reduction of the benefits structure;
(l) any other information that the superintendent requires to be able to determine whether the plan will meet the solvency and funding tests.
(4) to (6) Repealed. [B.C. Reg. 455/99, s. 7.]
(7) If a going concern valuation is made in respect of a plan that provides a pension based on a rate of salary during a period immediately before the date of pension commencement or on average rates of salary over a specified and limited period, a projection of the current salary of each member shall be used to estimate the salary on which the pension payable at pension commencement will be based.
(8) If the actuarial method used in a review may not reveal an unfunded liability or solvency deficiency, the reviewer must perform supplementary calculations to show that the solvency and funding tests are being met and the reviewer must so certify.
(9) If all the benefits under an insured plan established before the initial qualification date are funded by level premiums that do not extend beyond the pensionable age for each member or former member, an actuarial valuation report or cost certificate may confirm the adequacy of the premiums to provide for the payment of all benefits instead of providing the information required by subsection (3).
(10) If a person who is authorized to prepare or sign an actuarial valuation report or cost certificates respecting an insured plan under subsection (1) certifies that
(a) all benefits relating to a defined benefit provision of the plan are insured by a contract with an insurance company under which that company is obligated to pay those benefits, and
(b) all future benefits will accrue under a defined contribution provision of the plan,
the administrator is not required to file any further actuarial valuation reports or cost certificates until the plan again provides for benefits to accrue under a defined benefit provision.
[am. B.C. Reg. 455/99, s. 7.]
8 For the purposes of section 9 (3) (c) of the Act, the provisions of a collective agreement or arbitration award must be filed within 30 days following the date of a written request made by the superintendent.
9 (1) For the purposes of section 10 (1) (a) of the Act, every administrator of a pension plan must provide an explanation or summary of the plan, and of the relevant entitlements and obligations under the plan, as follows:
(a) in the case of a new plan, to each member within 120 days after the establishment of the plan;
(b) in the case of an existing multi-employer plan or negotiated cost plan, to each member
(i) at the same time as the first annual statement is provided to the member under section 11, or
(ii) within 30 days after a request made by the member for the explanation or summary is received by the administrator,
whichever occurs first;
(c) in the case of any other existing plan, to each employee referred to in section 10 (1) (a) of the Act,
(i) at least 30 days before the employee first becomes eligible or is required to be a member of that plan, or
(ii) on or before the employee's date of employment if the employee becomes eligible or is required to be a member at or less than 30 days after the date of his or her employment.
(2) The administrator must ensure that members are provided with an explanation or summary of a material amendment to the plan, and of the relevant entitlements and obligations under that amendment, as follows:
(a) in the case of a multi-employer plan or negotiated cost plan referred to in subsection (1) (b),
(i) at the same time as the next annual statement is provided to the member under section 11, or
(ii) within 30 days after a request made by the member for the explanation or summary is received by the administrator,
whichever occurs first;
(b) in any other case, within 90 days after the registration of the amendment.
10 (1) For the purposes of section 10 (1) (a) (ii) of the Act, every administrator must provide further information with the relevant explanation or summary referred to in section 9 (1) as follows:
(a) if the plan requires interest to be paid on member contributions or additional voluntary contributions under section 31 of the Act,
(i) a description of the method used to determine the application of interest on member contributions or additional voluntary contributions, and
(ii) if the method under subparagraph (i) results in a negative rate of interest, a statement of that fact;
(b) a statement setting out the treatment of any surplus assets during the continuation of the plan and on wind up of the plan;
(c) in the case of a pension plan that contains a defined benefit provision, a statement that if, on wind up of the plan, the assets of the plan are not sufficient to meet the liabilities of the plan, pension benefits may be reduced;
(d) if the plan provides for the conversion of optional ancillary contributions to optional ancillary benefits, a statement setting out
(i) the various optional ancillary benefit choices available on conversion,
(ii) a summary of the method used, as set out in the plan, to convert the optional ancillary contributions,
(iii) the terms and conditions for making an election for conversion, and
(iv) the risk of forfeiture if there are insufficient optional ancillary benefits available at the time of conversion to completely use all the optional ancillary contributions.
(2) For the purposes of section 10 (1) (a) (ii) of the Act, every administrator must provide the following information annually;
(a) a brief description of the investment policy of the plan;
(b) the assets of the plan as of the most recent fiscal year end.
[am. B.C. Reg. 455/99, s. 8.]
11 For the purposes of section 10 (1) (b) of the Act, every administrator must provide to each member, within 180 days after the end of each fiscal year, an annual statement for the fiscal year just ended containing or accompanied by the following information so far as applicable to the member:
(a) the name of the pension plan and its Provincial registration number;
(b) the member's name and date of birth;
(c) the period covered by the statement;
(d) the date on which the member joined the plan and, except for multi-employer pension plans, the date on which the member commenced employment;
(e) the date or dates on which the member became fully vested or will become fully vested;
(f) the member's normal retirement date under the plan as required by section 38 (1) of the Act;
(g) the earliest date the member will be eligible to receive
(i) an unreduced pension, and
(ii) a reduced pension;
(h) the name of the person recorded as the member's spouse;
(i) if the member does not have a spouse or the spouse has waived the spousal entitlement, any person designated by the member as a beneficiary for purposes of the preretirement survivor benefit under section 34 (1) (b) (i) of the Act;
(j) in respect of contributions that have been transferred from another plan and applied under a defined benefit provision and where a period of employment has not been credited for the purposes of determining benefits, the amount of pension that will be provided by the plan by those contributions;
(k) the amount of required contributions, if any, made to the pension fund by a member during the period covered by the statement;
(l) the accumulated amount of required contributions, if any, made to the pension fund by the member including interest credited to those contributions to the end of the period covered by the statement;
(m) the amount of any additional voluntary contributions made by the member to the pension fund during the period covered by the statement;
(n) the accumulated amount of any additional voluntary contributions made by the member to the pension fund, including interest credited to such contributions, to the end of the period covered by the statement;
(o) in the case of a plan providing defined contribution benefits,
(i) the amount of employer contributions allocated to the member during the period covered by the statement,
(ii) the accumulated amount of employer contributions, including interest credited to those contributions, allocated to the member to the end of the period covered by the statement, and
(iii) the rate of interest or capital appreciation applied to required contributions and additional voluntary contributions during the period covered by the statement or the manner in which interest was applied;
(p) in the case of a defined benefit plan,
(i) the member's years of employment or years of membership for the purpose of the calculation of pension benefits determined as of the end of the period covered by the statement,
(ii) the annual amount of pension benefit payable at normal retirement date accrued at the end of the period covered by the statement,
(iii) information as to whether the pension referred to in subparagraph (ii) is reduced by an amount of pension payable under the Canada Pension Plan (Canada) or the Quebec Pension Plan (Quebec), and
(iv) information as to whether the pension referred to in subparagraph (ii) is reduced by an amount of benefit payable under the Old Age Security Act (Canada) where this is an option provided for by the plan;
(q) if the solvency ratio as of the latest review date is less than 1,
(i) the solvency ratio expressed as a percentage,
(ii) a statement that the plan's assets are not sufficient to cover benefits, as determined on a plan termination basis, as of the latest review date,
(iii) if applicable, confirmation that special payments are being made to make the plan solvent in accordance with the Act and this regulation, and
(iv) if applicable, information to members of any exemption from solvency requirements or special payments, and any conditions attached to the exemption;
(r) a statement of the right under section 10 (4) and (5) of the Act of any person entitled to a benefit, or the spouse or designated beneficiary or agent of the person entitled to a benefit, to examine documents;
(s) if the plan provides for the conversion of optional ancillary contributions to optional ancillary benefits, a statement setting out
(i) the amount of any optional ancillary contributions and additional voluntary contributions made by the member during the year, including accumulated interest on those contributions to date,
(ii) the kind of benefit or benefits chosen by the member for any options already exercised,
(iii) the amount of any optional ancillary contributions used during the period covered by the statement, the amount used to date as of the fiscal year end, and the balance remaining in the member's optional ancillary contributions account,
(iv) an estimate of the maximum amount of optional ancillary contributions that can be made by the member in the following year, and
(v) any limits under the Income Tax Act (Canada).
[am. B.C. Reg. 455/99, s. 9.]
12 (1) For the purposes of section 10 (1) (c) of the Act, every administrator must provide to a former member, within 90 days after the termination of membership, a statement containing the following information so far as applicable to the former member:
(a) the name of the pension plan and its Provincial registration number;
(b) the member's name and date of birth;
(c) the date on which the member joined the pension plan;
(d) the date the member ceased membership in the plan;
(e) whether the member was vested or not vested;
(f) in respect of contributions that have been transferred from another plan and applied under a defined benefit provision and where a period of employment has not been credited for the purposes of determining benefits, the amount of pension that will be provided by the plan by those contributions;
(g) the amount of required contributions, if any, made to the pension fund by the member from the end of the period covered by the preceding annual statement to the date of termination of membership;
(h) the accumulated amount of required contributions, if any, made to the pension fund by the member including, in the case of a plan providing defined benefits, interest credited to those contributions to the date of termination of membership;
(i) the amount of any additional voluntary contributions made by the member to the pension fund from the end of the period covered by the preceding annual statement to the date of termination of membership;
(j) the accumulated amount of any additional voluntary contributions made by the member to the pension fund, including interest credited to such contributions, to the date of termination of membership;
(k) the member's normal retirement date under the plan as required by section 38 (1) of the Act;
(l) the name of the person recorded as the member's spouse;
(m) if the member does not have a spouse or the spouse has waived the spousal entitlement, any person designated by the member as a beneficiary for purposes of the pre-retirement survivor benefit under section 34 (1) (b) (i) of the Act;
(n) in the case of a defined contribution provision,
(i) the amount of employer contributions allocated to the member from the end of the period covered by the preceding annual statement to the date of termination of membership,
(ii) the accumulated amount of employer contributions, including interest credited to those contributions, allocated to the member to the date of termination of membership, and
(iii) the rate of interest or capital appreciation applied to required contributions and additional voluntary contributions to the date of termination of membership or the manner in which interest was applied;
(o) in the case of a defined benefit provision,
(i) the member's years of employment or years of membership credited under the plan for the purpose of the calculation of pension benefits determined as of the date of termination of membership,
(ii) if an entitlement to a pension has vested in the member, the annual amount of pension benefit payable at normal retirement date accrued at the date of termination of membership,
(iii) information as to whether the pension referred to in subparagraph (ii) is reduced by an amount of pension payable under the Canada Pension Plan (Canada) or the Quebec Pension Plan (Quebec), and
(iv) information as to whether the pension referred to in subparagraph (ii) is reduced by an amount of benefit payable under the Old Age Security Act (Canada) where this is an option provided for by the plan;
(p) the commuted value of the pension referred to in paragraph (f) and, if applicable, paragraph (o) (ii), to members or former members under 55 years of age or the amount of a lump sum benefit on termination of employment if this amount exceeds the commuted value of the pension;
(q) the amount of the member's excess contributions referred to in section 32 (2) of the Act;
(r) an explanation of
(i) the options available and the deadlines for choosing any option available, and
(ii) the consequences, if any, of not meeting the deadlines;
(s) if the member is eligible to choose a deferred pension,
(i) the benefit payable on death before and after pension commencement, including an explanation of the joint pension form and the spouse's waiver option under section 35 (4) of the Act,
(ii) optional early, disability and postponed pension commencement dates available, and an explanation of any adjustments to the amount of pension in each case,
(iii) any indexation provisions applicable to the deferred pension, and
(iv) the name and address of the person to whom application must be made to start receiving the pension and when the application must be made;
(t) if the member is vested and there is a transfer deficiency, as defined in section 25 (1),
(i) a statement that a transfer deficiency exists and that it may not be transferred until it has been funded in accordance with the solvency tests,
(ii) the amount of the transfer deficiency,
(iii) the latest date at which it will be transferred,
(iv) a statement that interest will be payable on the untransferred portion up to the date it is transferred, and
(v) the rate of interest that is to be applied to the transfer deficiency until transferred;
(u) a statement of the right under section 10 (4) and (5) of the Act of any person entitled to a benefit, or the spouse or any designated beneficiary or agent of the person entitled to a benefit, to examine documents;
(v) if the plan provides for the conversion of optional ancillary contributions to optional ancillary benefits, a statement setting out
(i) the amount of any balance in the member's optional ancillary contributions account,
(ii) the current cost to the member of the various options available,
(iii) the maximum amount of any optional ancillary contributions that can be converted to the various options available, and
(iv) any limits under the Income Tax Act (Canada) on the use of the various options available.
(2) Subsection (1) does not apply to a former member if a statement has been provided to the former member under section 14 (1) in respect of his or her termination of membership.
[am. B.C. Reg. 455/99, s. 10.]
13 (1) For the purposes of section 10 (1) (d) of the Act, every administrator must, within the one year period before the commencement of a pension and within 30 days after receiving a completed application in the form required by the administrator for commencement of the pension, provide to a member or former member who is about to commence receiving a pension a statement containing the following information as applicable to the member or former member:
(a) the name of the pension plan and its Provincial registration number;
(b) the name and date of birth of the member;
(c) the date on which the member joined the plan and the years of employment or years of membership credited under the plan for purposes of calculating the pension benefit;
(d) the date when pension payments are to commence;
(e) in the case of a defined contribution provision,
(i) current information referred to in section 11 (k) to (o), and
(ii) the amount of pension that will be provided by the contributions referred to in section 11 (k) to (o);
(f) in the case of a defined benefit provision,
(i) current information referred to in section 11 (j) to (p), and
(ii) the amount of the member's excess contributions referred to in section 32 (2) of the Act;
(g) an explanation of the normal and optional forms of pension available, the procedure for choosing and the amounts of the normal and optional forms;
(h) if the member or former member has a spouse,
(i) the spouse's name and date of birth,
(ii) an explanation of the joint pension form and the spouse's waiver option under section 35 of the Act, and
(iii) the amount of pension payable
(A) while both are alive, and
(B) to each on the death of the other;
(i) if the member or former member has additional voluntary contributions, the options available, including the amount of pension that will be provided if the contributions are left in the plan;
(j) if the member or former member has excess contributions referred to in section 32 (2) of the Act, the options available under that section;
(k) the basis, if any, for future indexation;
(l) the deadline for choosing any option available and the consequences, if any, of not meeting the deadline;
(m) a statement of the right under section 10 (4) and (5) of the Act of any person entitled to a benefit, or the spouse or any designated beneficiary or agent of the person entitled to a benefit, to examine documents.
(2) In subsection (1) "current information" means, to the extent applicable, information in respect of the most recently completed fiscal year and further extending to cover the period between then and pension commencement.
14 (1) For the purposes of section 10 (1) (e) of the Act, every administrator of a multi-employer plan must provide to a member who wishes to make a transfer under section 33 (3) or (4) of the Act, within 90 days after receiving a completed application in the form required by the administrator for the transfer, a statement containing the following information as applicable to the member:
(a) the name of the pension plan and its Provincial registration number;
(b) the member's name and date of birth;
(c) the date on which the member joined the pension plan;
(d) current information referred to in section 11 (j) to (p);
(e) to the extent that section 11 (j) and (p) apply, the commuted values of the respective pensions and excess contributions, if any, referred to in section 32 (2) of the Act;
(f) an explanation of
(i) the options available for excess contributions under section 32 (2) of the Act and for additional voluntary contributions,
(ii) the deadlines for choosing any option available, and
(iii) the consequences, if any, of not meeting the deadlines;
(g) an explanation of
(i) the options available for the accrued pension under section 33 (1) and (2) of the Act,
(ii) the deadlines for choosing any option available, and
(iii) the consequences, if any, of not meeting the deadlines;
(h) the information required by section 12 (1) (s) and (t);
(i) a statement of the right under section 10 (4) and (5) of the Act of any person entitled to a benefit, or the spouse or any designated beneficiary or agent of the person entitled to a benefit, to examine documents.
(2) In subsection (1) "current information" means, to the extent applicable, information in respect of the most recently completed fiscal year and further extending to cover the period between then and the date of the receipt of the application for the transfer.
15 (1) For the purposes of section 10 (1) (f) of the Act, every administrator must provide to the surviving spouse, designated beneficiary or personal representative of the estate of a deceased member or former member who died before pension commencement, within 30 days after proof of the death is provided to the administrator, a statement containing the following information so far as applicable to the deceased member or former member:
(a) the name of the pension plan and its Provincial registration number;
(b) the name of the deceased person;
(b.1) the date on which the deceased joined the plan and, except for multi-employer pension plans, the date on which the deceased commenced employment;
(c) current information referred to in section 11 (h) to (q);
(d) if the deceased had no spouse or a pension had not vested in the deceased at the time of death, the total lump sum available for refund and an explanation of any other benefits or options available under the plan;
(e) if the deceased was a member who had a spouse at the time of death and a pension had vested in the member,
(i) Repealed. [B.C. Reg. 455/99, s. 11.]
(ii) an explanation of the benefits and options available under section 34 of the Act and any others provided by the plan, and
(iii) the deadline for choosing any option available and the consequences, if any, of not meeting the deadline;
(f) if applicable, the information required by section 12 (1) (q);
(f.1) if a pension had vested in the deceased, the information required by section 12 (1) (t);
(g) a statement of the right, under section 10 (4) and (5) of the Act, of any person entitled to a benefit, or the spouse or any designated beneficiary or agent of the person entitled to a benefit, to examine documents.
(2) In subsection (1), "current information" means, to the extent applicable, information in respect of the most recently completed fiscal year and further extending to cover the period between then and the date of the administrator's receiving notice of the death.
[am. B.C. Reg. 455/99, s. 11.]
16 An administrator must provide the data referred to in section 10 (1) (g) of the Act within 30 days after receiving a request for it.
17 For the purposes of section 10 (1) (h) of the Act, every administrator must provide to each member and former member, within 30 days after the approval by the superintendent of the report filed under section 54 (3) or (4) of the Act, the following information as applicable to the member or former member:
(a) the information referred to in section 12 or 13;
(b) if benefits are to be reduced, the reasons for the reduction and a description of the method of reduction;
(c) if there are surplus assets, how the surplus assets will be utilized.
18 For the purposes of section 10 (4) (g) of the Act, every administrator must provide, to a person entitled, access to the following documents:
(a) the most recent explanation or summary provided under section 10 (1) (a) of the Act;
(b) the report under section 54 (3) of the Act, except any portions of the report stating the benefits of individual members or former members.
19 (1) If there are amendments to a pension plan or any other document referred to in section 14 (2) (a) of the Act, the superintendent may, in writing, require that an administrator provide, within 180 days of the superintendent's request, a certified consolidated copy of the plan or document incorporating all amendments to date, and the administrator must comply with that requirement.
(2) For the purposes of sections 14 (2) (c) and 15 (1) of the Act, every administrator must complete the prescribed form of certification set out in Form 1 of Schedule 2.
[am. B.C. Reg. 31/98, s. 3.]
20 (1) For the purposes of section 24 (1) (h) of the Act, the formulas used to determine benefits, member and employer contributions, and the allocation of contributions under a pension plan, must comply with this section.
(2) The formulas used to determine benefits under defined benefit provisions, and member contributions relating to defined benefit provisions of a plan, must be uniform for
(a) each year of future employment, and
(b) each member in a class prescribed in section 23 (1),
except to the extent that the superintendent approves variations in the formula that the superintendent considers reasonable.
(3) The formula used to determine the pension under a defined benefit provision may not be based on a member's age on joining the plan.
(4) The formula used to determine contributions under a defined contribution plan, or under a defined contribution provision of a plan, must be uniform unless the superintendent approves variations in the formula based on age or length of service, or both age and length of service, or based on some other criteria that the superintendent considers reasonable.
(5) If a formula relating to a defined contribution provision in subsection (4) provides for contributions on a basis other than
(a) a percentage of a member's remuneration, or
(b) a fixed dollar amount in respect of each member,
the formula for allocating those contributions must be designed to provide reasonably uniform benefits for each year of plan membership.
(6) Despite subsection (2) and if the plan so provides or is amended to provide, a temporary program offering enhanced benefits as an incentive for early retirement may be offered if an appropriate funding arrangement is made.
[am. B.C. Reg. 455/99, s. 12.]
21 (1) The commuted value of a benefit determined under a defined benefit provision must
(a) be determined in accordance with the recommendations for the computation of transfer values of pensions issued by the Canadian Institute of Actuaries, as amended from time to time, and
(b) be adjusted, in respect of the period between the date determined under paragraph (a) and a date not earlier than the end of the month immediately preceding the payment or transfer of the commuted value out of the plan, for interest at a rate not less than the rate of interest that was assumed in determining the commuted value over the same period of time.
(2) The period between the date as of which the commuted value was determined under subsection (1) and the date of the payment or transfer of the commuted value out of the plan must not exceed 180 days.
(3) If at the date of computation the former member has an unconditional entitlement to optional forms of pension or to optional commencement dates, the option that has the greatest value must be used to determine the commuted value.
22 (1) A pension plan may provide, in respect of a former member who has commenced receiving a pension and who recommences work or service in employment covered by that plan, one of the following:
(a) payment of the pension is to continue and the former member is not eligible to become a member;
(b) payment of the pension is to be suspended and the former member is to become a member with effect from the date of commencement of the subsequent employment;
(c) the former member may make an election that paragraph (a) or (b) applies.
(2) The plan may make the provisions referred to in subsection (1) applicable under differing circumstances.
(3) If the plan provides for the suspension of payment of the pension, the pension payable at the commencement of the member's subsequent pension must be an amount not less than the sum of the amount of the pension payable in respect of the member's subsequent employment and
(a) the amount of the pension that would have been payable had the initial pension commencement occurred at pensionable age, reduced in accordance with the terms of the plan as they were at the initial pension commencement, if the initial pension commencement occurred before pensionable age, or
(b) the amount of pension payable at the initial pension commencement if the initial pension commencement occurred at or after pensionable age.
(4) The calculation of a reduction under subsection (3) (a) must be based on an assumed age calculated as follows:
AAFC = ASPC - (ED - D1)
where
AAFC = assumed age for calculation,
ASPC = age at subsequent pension commencement,
D1 = date of initial pension commencement, and
ED = effective date of pension suspension.
(5) The ages and periods used under subsection (4) are for years and any portion of a year.
(6) Notwithstanding subsections (3) and (4), the plan may provide that the amount of pension that was payable at the initial pension commencement and that becomes payable at the subsequent pension commencement be increased in an alternative manner that the superintendent considers reasonable.
22.1 Repealed. [B.C. Reg. 206/2001, s. 1.]
22.2 (1) In this section a reference to section 22.1 means section 22.1 of this regulation as it read on December 17, 1999.
(2) For the purpose of section 74.1 of the Act, a pension plan that suspended or reduced the benefits of a former member under the authority of section 22.1 must resume the payment of full benefits, effective on the coming into force of this section, in accordance with the schedule of periodic payments that existed immediately before the suspension or reduction.
(3) The actual payment of full benefits under subsection (2) must be made not later than 90 days after the date this section comes into force.
(4) If the period of suspension or reduction of benefits has lasted for 6 months or longer, including any period in respect of which there was an offset applied under section 22.1 (13), the pension payable as of the resumption of benefits under subsection (2) must be an amount not less than the amount of the pension that would have been payable had the initial pension commencement occurred at pensionable age, reduced in accordance with the terms of the plan as they were at the initial pension commencement.
(5) The calculation of a reduction under subsection (4) must be based on an assumed age for the former member, and spouse if applicable, calculated in accordance with the method described in section 22 (4) or as provided for in section 22 (6).
(6) A pension plan that suspended or reduced the benefits of a former member under section 22.1 must continue to contain an appeal procedure, including a right of appeal within a reasonable period of time by the former member to the board of trustees of the plan, regarding
(a) a decision by the plan to suspend or reduce the former member's benefits, and
(b) a recalculation of the pension under section 22.1 (13),
until all appeals that have been filed, or could be filed, under this provision have been resolved, and until all persons who qualify for reinstatement of benefits have had those benefits reinstated.
(7) For the purpose of section 74.1 (1) of the Act, the appeal provisions referred to in subsection (6) are deemed not to be inconsistent with the Act or these regulations.
(8) If a former member died while benefits were suspended or reduced, the survivor benefit must be calculated in the same manner as the survivor benefit that would have applied if the former member had still been receiving unreduced benefits at the date of death.
(9) For the purpose of subsection (8), if the suspension or reduction has lasted for 6 months or longer, before calculating the amount of the survivor benefit the former member's pension must be recalculated under subsections (4) and (5) as if the former member had qualified for a resumption of benefit payments starting on the date on which he or she died.
[en. B.C. Reg. 206/2001, s. 2.]
23 (1) For the purposes of section 25 (1) of the Act, the classes of employees entitled, on application, to become members of a pension plan are any one or more of the following:
(a) employees who are paid a salary;
(b) employees who are paid on an hourly basis;
(c) employees who are members of a trade union;
(d) employees who are not members of a trade union;
(e) supervisory employees;
(f) management employees;
(g) executive employees;
(h) employees who are officers of the employer;
(i) employees who are connected with the employer for the purposes of section 8500 (3) of the regulations under the Income Tax Act (Canada);
(j) employees belonging to some other identifiable group of employees acceptable to the superintendent.
(2) If there is a dispute as to whether or not an employee is a member of a class of employees for whom a pension plan is established or maintained and the superintendent is of the opinion that, on the basis of the nature of the employment or of the terms of employment of the employee, the employee is a member of that class, the superintendent may require the administrator to accept the employee as a member.
(3) For the purposes of section 25 (1) of the Act, different employers in a multi- employer plan may have different classes of employees covered by the plan.
(4) A pension plan in which the only member is a single employee who, but for this subsection, falls within a class of employees described in subsection (1) (g), (h) or (i), is exempt from section 25 of the Act and that employee must be treated for the purposes of the Act and this regulation as not falling within that class of employees.
23.1 (1) Section 30 (11) of the Act applies to a plan member or former member age 65 or older, and despite sections 29 (7) and 30 (8) of this regulation to the owner of a locked-in RRSP or life income fund who is age 65 or older,
(a) if that person
(i) has, in the aggregate, in each plan, RRSP and fund referred to in that section, not more than an amount equivalent to 40% of the Year's Maximum Pensionable Earnings, and
(ii) completes a declaration of commutable amount using Form 5 of Schedule 2 and files a copy of the completed form with each relevant pension plan and financial institution, and
(b) if the person has a spouse, obtains the spouse's waiver of entitlements using Form 2 of Schedule 2 and files a copy of the completed form with each relevant pension plan and financial institution.
(2) Section 30 (12) of the Act applies to a member, former member, spouse, surviving spouse or former spouse entitled to a benefit
(a) if that person
(i) completes a certificate of non-residency using Form 6 in Schedule 2,
(ii) attaches to the completed Form 6 written evidence that the Canada Customs and Revenue Agency has determined the person to be a non-resident of Canada for the purposes of the Income Tax Act (Canada), and
(iii) files a copy of the completed Form 6 with each relevant pension plan and financial institution, and
(b) if that person has a spouse, obtains the spouse's waiver of entitlements using Form 2 of Schedule 2 and files a copy of the completed form with each relevant pension plan and financial institution.
[en. B.C. Reg. 455/99, s. 13.]
24 (1) Subject to this section, the rate of interest to be applied for the purposes of section 31 (4) of the Act is
(a) the rate specified in subsection (3), or
(b) the rate of interest calculated on the basis of the average of the yields of 5-year personal fixed term chartered bank deposit rates, published in the Bank of Canada Banking and Financial Statistics as CANSIM Series B 14045, over a reasonably recent period, such that the averaging period does not exceed 12 months.
(2) The method first selected under subsection (1) to calculate the rate of interest may not be changed without the prior written consent of the superintendent.
(3) Subject to this section, the rate of interest to be applied to contributions for the purposes of section 31 (2) and (3) of the Act is the amount determined under the plan as the gross rate of interest earned by the pension fund that holds those contributions, for the most recently completed period for which interest is to be applied, less the rate attributable to any expenses of administering the plan relating to that period that are not required to be paid by the employer.
(4) Interest must be calculated at least annually, promptly after the end of each fiscal year.
(5) Interest must be applied at least annually as follows:
(a) to member contributions, additional voluntary contributions and, if applicable, employer contributions made to the end of the fiscal year immediately preceding the most recently completed fiscal year, together with prior interest credited on those contributions, at the applicable interest rate prescribed by subsection (1) or (3);
(b) to member contributions, additional voluntary contributions and, if applicable, employer contributions made during the most recently completed fiscal year at one half of the applicable interest rate prescribed by subsection (1) or (3).
(6) If a person becomes entitled to have a refund of contributions, interest must be applied, with respect to all member contributions, additional voluntary contributions and, if applicable, employer contributions, to the end of the month immediately preceding
(a) the date of payment or return of contributions, or
(b) the first payment in a series of payments,
at whichever of the following rates is provided for in the plan:
(c) the rate calculated by dividing 365 into the product of the number of days in the uncompleted fiscal year with respect to which interest is to be paid and the applicable rate provided for by subsection (1) at the end of the immediately preceding fiscal year;
(d) the actual net rate of interest earned by the plan during that portion of the uncompleted fiscal year as determined under subsection (3);
(e) an estimate of the actual net rate of interest determined solely on the basis of information regarding the performance of the investments of the assets of the plan during that portion of the uncompleted fiscal year, as reported to the administrator by the fund holder or the person making the plan investments.
(7) If, in a defined benefit plan, the rate determined under subsection (6) would result in a negative interest rate, the interest rate to be applied under that subsection is zero.
(8) Once the method of calculating the rate under subsection (6) has been chosen in respect of a fiscal year, that method must be used with respect to all benefit payments from the plan to be made during that fiscal year.
(9) Notwithstanding subsections (5) and (6), the plan may provide for interest on contributions referred to in those subsections to be calculated in another manner and at other rates as the superintendent considers reasonable.
(10) For the purposes of section 31 (1) of the Act, "contributions" does not include contributions returned to a member of a plan or to an employer who participated in a plan if the contributions are returned to avoid revocation of the plan's registration under the Income Tax Act (Canada).
[am. B.C. Reg. 455/99, s. 14.]
25 (1) In this section
"transfer" means a transfer of the assets of a pension plan under section 33 (2), (2.1), (3), (4) or (5.2), 34 (5), (6) or (10) or 58 (4) or (6) of the Act or a transfer permitted by operation of section 30 (12);
"transfer deficiency" means, in a case where the solvency ratio is less than 1 as calculated in the most recent actuarial valuation report under section 9 (3) of the Act, the amount by which the commuted value of a benefit exceeds the product of that commuted value and the solvency ratio.
(2) Every transfer must be made in accordance with this section.
(3) If a plan has a solvency ratio of 1 or more, a transfer shall not be deemed to impair the solvency of the plan for the purposes of section 60 (3) of the Act but the superintendent may, on the written request of an administrator, permit the administrator to refuse the transfer if the superintendent agrees with the administrator's assessment that the transfer would in fact materially impair the solvency of the plan.
(4) If the commuted value under a plan is higher than the amount that would result if the definition of "commuted value" in section 1 (1) of the Act were applied, the administrator must ensure that supplementary calculations are made to ensure that the solvency of the plan will not be materially impaired by the transfer.
(5) If a plan has a solvency ratio of less than 1, a transfer shall be deemed to impair the solvency of the plan but the administrator may make the transfer if
(a) the employer has remitted sufficient money to the plan to eliminate any transfer deficiency relating to the transfer, or
(b) the transfer deficiency for any person is less than 5% of the Year's Maximum Pensionable Earnings for the year in which the transfer is made and the total of all transfer deficiencies since the last review date does not exceed 5% of the market value of the assets of the plan at the time of transfer.
(6) Notwithstanding subsection (5), the transfer of the amount equal to the commuted value of a benefit less the transfer deficiency related to that benefit shall not be deemed to materially impair the solvency of the plan.
(7) Subject to section 60 (3) of the Act, a transfer deficiency that remains untransferred must be transferred within 5 years of the initial transfer and must include interest, at a rate that is not less than the rate of interest that was assumed in determining the commuted value of the benefit, up to the end of the month immediately preceding the date when the last or only transfer is made.
(8) If the administrator is unable to make the transfer under subsection (7) following the expiry of the 5 year period because the person has not provided a forwarding address, the person entitled to the transfer must notify the administrator as to where the transfer is to be made.
(9) Notwithstanding subsection (7), if a person who is entitled to the transfer dies during the 5 year period, the transfer deficiency becomes immediately payable.
(10) and (11) Repealed. [B.C. Reg. 455/99, s. 15.]
[am. B.C. Reg. 455/99, s. 15.]
26 (1) If a person is entitled to exercise an option under section 32 (2), 33 (1), (2) or (2.1), 34 (5) or (6) or 58 (6) of the Act, the person must exercise the option within 90 days of the receipt of the information required by section 12, 13, 14, 15 or 17, as the case may be.
(2) If the option is not exercised within the 90 day period, the person is then limited to the options, if any, provided by the plan.
[am. B.C. Reg. 455/99, s. 16.]
27 (1) For the purposes of sections 32 (3) (d), 33 (2) (c), 60 (3), 68 (2) (a) (ii) and 74 (2) (c.1) of the Act, "savings institution" has the same meaning as in section 29 of the Interpretation Act.
(2) For the purposes of sections 30 (11), 32 (3) (d), 33 (2) (c), 68 (2) (a) (ii) and 74 (2) (c.1) and (d) of the Act, "retirement income fund" means a life income fund that is issued to hold money that is the subject of a transfer referred to in section 30 (2).
[en. B.C. Reg. 455/99, s. 17.]
28 For the purposes of section 33 (5) of the Act, the amount is 20% of the Year's Maximum Pensionable Earnings for the calendar year in which the termination of membership or termination of the plan first occurs.
[am. B.C. Reg. 455/99, s. 18.]
29 (1) In this section
"contract" means an RRSP which is issued to hold money that is the subject of a transfer;
"life annuity contract" means an arrangement made to purchase through an insurance company a deferred or immediate pension that is not commutable, that will commence before the end of the calendar year in which the person who is to receive the pension attains the age of 69 years and that will not commence before the person who is to receive the pension attains
(a) the age of 55 years, or
(b) an age of less than 55 years if that person provides evidence to the satisfaction of the underwriter that the plan, or any of the plans from which the money was transferred, provided for payment of the pension at that earlier age;
"owner" means a member or former member who has made a transfer under section 33, 34 (5) or 58 of the Act to a contract and includes the spouse or former spouse of a member who is entitled to a pension benefit as a result of
(a) the death of the member or former member, or
(b) a marriage breakdown;
"transfer" means a transfer referred to in subsection (2);
"underwriter" means the underwriter, depositary or issuer of a contract, or of a life income fund governed by section 30.
(2) Subject to subsection (2.1), every transfer of locked-in money to an RRSP under section 33, 34 (5), or 58 of the Act, Part 6 of the Family Relations Act or from a life income fund governed by section 30 of this regulation, and any subsequent transfer to an underwriter of money so transferred, must be made in accordance with this section.
(2.1) Every transfer of locked-in money from a contract to a life income fund must be made in accordance with section 30.
(3) The superintendent must, for the purposes of this section, establish and maintain a list that has entered in it
(a) the name of every savings institution and insurance company that has received approval of a specimen contract, and
(b) a description of each approved specimen contract.
(4) A savings institution or insurance company must not transfer or accept a transfer unless
(a) the contract used for the transfer is in the form of a specimen contract, as amended where applicable, that has been approved by the superintendent for transfers, and
(b) the savings institution or insurance company
(i) has been notified in writing by the superintendent that its name and specimen contract are on the list, and
(ii) has not been notified in writing by the superintendent that either its name or its specimen contract has been removed from the list.
(5) For the purposes of this section, a specimen contract, or an amendment to a specimen contract, is approved if the superintendent has provided written notice of approval to the savings institution or insurance company that filed it.
(6) The superintendent may, without affecting the duties or liability of a savings institution or insurance company in relation to any transfer or contract, remove the savings institution or insurance company, or any specimen contract in its name, from the list established under subsection (3) if
(a) the savings institution or insurance company is using a contract, or an amendment to a contract, that is not in the form of the approved specimen contract, or
(b) the savings institution or insurance company has acted in breach of any of its obligations under this section.
(7) Every contract must incorporate in it the appropriate definitions in section 1 of the Act and in subsection (1) of this section, and must include the following contractual obligations:
(a) subject to paragraph (b), all money, including all investment earnings, subject to any transfer is to be used to provide or secure a pension as required by the Act and this regulation;
(b) subject to subsection (9), no withdrawal, commutation or surrender of money is permitted, and no transfer of money is permitted except to
(i) transfer the money to another underwriter's contract on the relevant conditions specified in this section,
(ii) purchase a life annuity contract,
(iii) transfer the money to a pension plan on the conditions referred to in section 33 (2) (a) of the Act, or
(iv) transfer the money to an approved life income fund on the relevant conditions specified in section 30;
(c) except as provided for in the Act or this regulation, the benefits in the plan may not be assigned, charged, alienated or anticipated and are exempt from execution, seizure or attachment, and any transaction purporting to assign, alienate or anticipate the benefits is void;
(d) in the case of an RRSP, the money will be invested in a manner that complies with the rules for the investment of RRSP money contained in the Income Tax Act (Canada) and the regulations under the Income Tax Act (Canada) and will not be invested, directly or indirectly, in any mortgage in respect of which the mortgagor is the owner of the RRSP or the parent, brother, sister or child of the owner of the RRSP or the spouse of any of those persons;
(e) if money is paid out contrary to the Act or this section, the underwriter will provide or ensure the provision of a pension equal in value to the pension that would have been provided had the money not been paid out;
(f) the underwriter, before transferring the money to another underwriter, will
(i) ensure that the other underwriter's name and contract is on the superintendent's list of savings institutions and insurance companies under subsection (3),
(ii) advise the other underwriter in writing of the requirement to lock-in the money, and
(iii) make the other underwriter's acceptance of the transfer subject to the conditions provided for in this subsection;
(g) if the transferring underwriter does not comply with paragraph (f) and the other underwriter fails to pay the money transferred in the form of a pension or in the manner required by this subsection, the transferring underwriter will provide or ensure the provision of the pension referred to in paragraph (e);
(h) the pension payable to a former member who has a spouse at the date the pension commences is to be a joint pension payable during the joint lives of the former member and the spouse with at least 60% continuance to be payable to the survivor for life after the death of either unless the spouse waives the entitlement in the form and manner set out in Form 2 of Schedule 2;
(i) on the death of a former member who has a spouse, the money will be used to provide a pension for the surviving spouse unless the surviving spouse waives spousal entitlement in the form and manner set out in Form 4 of Schedule 2, and will be transferred
(i) to another locked-in RRSP on the relevant conditions specified in this section,
(ii) to purchase a life annuity contract, or
(iii) to an approved life income fund on the conditions specified in section 30;
(j) if the owner is not survived by a spouse or the surviving spouse waives spousal entitlement in the form and manner set out in Form 4 of Schedule 2, the money will be paid to the designated beneficiary or, if no beneficiary has been designated, to the owner’s estate;
(k) money that is not locked in will not be transferred to or held under a contract, other than a life annuity contract, that holds, or will hold, locked-in money, unless the locked-in money is to be held in a separate account;
(l) if the contract holds identifiable and transferable securities, the transfer or purchase referred to in paragraph (b) may, unless otherwise stipulated, at the option of the savings institution or insurance company and with the consent of the owner, be effected by remittance of the investment securities of the contract.
(8) A copy of the contract, including the contractual obligations specified in subsection (7), must be provided to the applicant at the time the application to transfer the locked-in money is completed.
(9) Notwithstanding subsection (7), the contract may provide for the withdrawal of money as a lump sum or series of payments for the purposes of section 40 (2) of the Act if a physician certifies that due to a physical disability the life expectancy of the owner is likely to be shortened considerably, but the payment may only be made if the spouse of the owner has waived the joint life pension entitlement in the form and manner set out in Form 2 of Schedule 2.
(9.1) Despite subsection (7), the contract may provide for the withdrawal of money by an owner who
(a) has been absent from Canada for 2 or more years,
(b) has become a non-resident of Canada as determined for the purposes of the Income Tax Act (Canada), and
(c) completes and files a certificate of non-residency in Form 6 in the manner described in section 23.1 (2).
(9.2) A former member who is the owner of a contract is exempt from section 30 of the Act and the requirements of subsections (2), (4), (7) (a), (b) and (e) to (h), and (10) to (13) of this section, and the contract is deemed to be amended to provide for such an exemption, if the balance of the contract does not exceed 20% of the Year’s Maximum Pensionable Earnings.
(9.3) A contract for which the balance of the contract exceeds 20% of the Year’s Maximum Pensionable Earnings must not be divided into two or more of any combination of RRSP or life income fund contracts, such that any of the contracts have a resulting balance less than 40% of the Year’s Maximum Pensionable Earnings.
(10) A contract that does not contain any or all of the contractual obligations required by subsection (7) shall be deemed to contain those obligations.
(11) Money, including interest, that is transferred under this section must not be subsequently used to purchase a life annuity contract that differentiates on the basis of the annuitant’s sex.
(12) An administrator or underwriter must not effect a transfer to an underwriter unless the administrator or underwriter has
(a) ensured that the underwriter’s name and contract are on the superintendent’s list established under subsection (3),
(b) advised the underwriter in writing of the requirement to lock in the money, and
(c) made the underwriter’s acceptance of the transfer subject to the conditions provided for in subsection (7).
(13) If the administrator or underwriter does not comply with subsection (12) and the other underwriter fails to pay the money transferred in the form of a pension or in the manner required by subsection (7), the pension plan or underwriter, as applicable, continues to be liable to ensure that the owner receives a pension equal in value to the pension that would have been provided had the transfer not been made.
(14) If the owner receives money from another underwriter in respect of which the plan is required to meet and does meet its continuing liability under subsection (13), the plan has a right of action against the recipient for that money.
(14.1) If the money in the contract has been held during the current year in a life income fund governed by this regulation, an underwriter must not effect a transfer to another underwriter unless the transferring underwriter has advised the transferree underwriter in writing
(a) that the funds had been held under a life income fund governed by this regulation, and
(b) the date on which the funds were transferred out of that life income fund.
(15) Every underwriter who is a party to the contractual obligations under subsection (7) must comply with those obligations or ensure that those obligations are complied with.
(16) The contract must comply with the conditions for registration under the Income Tax Act (Canada) and, once registered, the contract must remain registered.
(17) Reasonable fees for the administration of the contract may be paid out of the money in the contract.
[am. B.C. Regs. 337/94, s. 1; 455/99, s. 19; 131/2004, s. 2.]
30 (1) In this section:
"contract" means a LIF;
"LIF" means a life income fund which is issued to hold money that is the subject of a transfer;
"life annuity contract" means an arrangement made to purchase, through an insurance company, a pension that is not commutable, that will commence before the end of the calendar year in which the person who is to receive the pension attains the age of 80 years and that will not commence before the person who is to receive the pension attains
(a) the age of 55 years, or
(b) an age of less than 55 years if that person provides evidence to the satisfaction of the savings institution or insurance company that the plan, or any of the plans from which the money was transferred, provided for payment of the pension at that earlier age;
"owner" means a member or former member who has made a transfer under section 33, 34 (5) or 58 of the Act to a contract and includes the spouse or former spouse of a member who is entitled to a pension benefit as a result of
(a) the death of the member or former member, or
(b) a marriage breakdown;
"preceding year’s investment returns" means the value of the contract at the end of the immediately preceding fiscal year, minus the value of the contract on the first day of that fiscal year, plus any money paid out of the contract during that fiscal year, minus any money transferred into the contract during that fiscal year;
"reference rate" means the greater of
(a) the month-end nominal rate of interest earned on long-term bonds issued by the Government of Canada for the month of November preceding the year of the valuation, as compiled by Statistics Canada and published in the Book of Canada Banking and Financial Statistics as CANSIM Series B14013, to which the following adjustments are applied successively to that nominal rate:
(i) an increase of 0.5%;
(ii) the conversion of the increased rate, based on interest compounded semi-annually, to an effective annual rate of interest;
(iii) the rounding of the effective interest rate to the nearest multiple of 0.5%, and
(b) a rate of 6%;
"transfer" means a transfer referred to in subsection (2);
"underwriter" means the underwriter, depositary or issuer of a contract, or of an RRSP governed by section 29;
"value of the contract" means the market value of the investments held under a contract plus any cash balances held under the contract, including any earnings accrued but not yet received, any declared dividends not yet received, and any other accrued or receivable income items, whether or not the particular item is yet due and owing.
(2) Subject to subsection (2.1), every transfer of locked-in money to a LIF under section 33, 34 (5), or 58 of the Act, Part 6 of the Family Relations Act or from an RRSP governed by section 29 of this regulation, and any subsequent transfer to an underwriter of money so transferred, must be made in accordance with this section.
(2.1) Every transfer of locked-in money from a contract to a locked-in RRSP must be made in accordance with section 29.
(3) The superintendent must, for the purposes of this section, establish and maintain a list that has entered in it
(a) the name of every savings institution or insurance company that has received approval of a specimen contract, and
(b) a description of each approved specimen contract.
(4) For the purposes of this section, a specimen contract, or an amendment to a specimen contract, is approved if the superintendent has provided written notice of the approval to the savings institution or insurance company that filed it.
(5) A savings institution or insurance company must not transfer or accept a transfer unless
(a) the contract used for the transfer is in the form of a specimen contract, as amended where applicable, that has received the written approval of the superintendent, and
(b) the savings institution or insurance company
(i) has been notified in writing by the superintendent that its name and specimen contract are on the list, and
(ii) has not been notified in writing by the superintendent that either its name or its specimen contract has been removed from the list.
(5.1) A LIF appearing on the superintendent’s list established under subsection (3) on December 31, 2003, must either meet the requirements of this section no later than December 31, 2004, or be removed from the list.
(6) The superintendent may, without affecting the duties or liability of the savings institution or insurance company in relation to any transfer or contract, remove the savings institution or insurance company, or any specimen contract in its name, from the list established under subsection (3) if
(a) the savings institution or insurance company is using a contract, or an amendment to a contract, that is not in the form of the approved specimen contract, or
(b) the savings institution or insurance company has acted in breach of any of its obligations under this section.
(6.1) A savings institution or insurance company may only accept a transfer of locked-in money from a locked-in RRSP to a LIF
(a) by a former member if the former member has attained
(i) the age of 55 years, or
(ii) an age less than 55 years if that person provides evidence to the satisfaction of the savings institution or insurance company that the plan, or any of the plans from which the money was originally transferred, provided for payment of the pension at that earlier age, or
(b) by a former spouse of a member or former member, who is entitled to the pension benefit as a result of a marriage breakdown, if
(i) the separated spouse or former member has attained the age of 55 years, or in the case of a deceased former member, would have attained the age of 55 by the date of transfer had the former member still been alive, or
(ii) that person provides evidence to the satisfaction of the savings institution or insurance company that the plan, or any of the plans from which the money was originally transferred, provided for payment of the pension at an age less than 55 years, and the former member has attained that age, or in the case of a deceased former member, would have attained that age by the date of transfer had the former member still been alive.
(7) A savings institution or insurance company may only accept a transfer of locked-in money to a LIF if the member or former member has obtained the written consent of the spouse in the form and manner set out in Form 3 of Schedule 2.
(7.1) For the purpose of subsection (7), the written consent of the spouse, given using Form 3, is valid for each successive transfer of the money in a LIF to another LIF.
(8) Every contract must incorporate in it the appropriate definitions in section 1 of the Act and in subsection (1) of this section, and must include the following contractual obligations:
(a) subject to paragraph (b) and subsection (10), all money, including all investment earnings, is to be used to provide or secure pension benefits as required by the Act and this regulation;
(b) the owner will be permitted to transfer all or part of the balance of the contract
(i) to an underwriter’s LIF contract on the relevant conditions specified in this section,
(ii) to an underwriter’s RRSP contract on the relevant conditions specified in section 29,
(iii) to a pension plan on the conditions referred to in section 33 (2) (a) of the Act,
(iv) to purchase a deferred life annuity contract that meets the conditions of paragraphs (k) and (k.1), or
(v) to purchase an immediate life annuity contract;
(c) and (d) Repealed. [B.C. Reg. 131/2004, s. 3 (d).]
(e) except as provided for in the Act or this regulation, the benefits in the fund may not be assigned, charged, alienated or anticipated and are exempt from execution, seizure or attachment, and any transaction purporting to assign, alienate or anticipate the benefits is void;
(f) the money will be invested in a manner that complies with the rules for the investment of RRIF money contained in the Income Tax Act (Canada) and the regulations under the Income Tax Act (Canada), and will not be invested, directly or indirectly, in any mortgage in respect of which the mortgagor is the owner of the contract or the parent, brother, sister or child of the owner of the contract or the spouse of any of those persons;
(g) if money is paid out contrary to the Act or this section, the underwriter will provide or ensure the provision of a pension equal in value to the pension that would have been provided had the money not been paid out;
(h) the underwriter, before transferring the money to another underwriter, will
(i) ensure that the other underwriter’s name and contract are on the superintendent’s list established under subsection (3),
(ii) advise the other underwriter in writing of the requirement to lock-in the money, and
(iii) make the other underwriter’s acceptance of the transfer subject to the conditions provided for in this subsection;
(i) if the transferring underwriter does not comply with paragraph (h) and the other underwriter fails to pay the money transferred in the form of a pension or in the manner required by this subsection, the transferring underwriter will provide or ensure the provision of the pension referred to in paragraph (g);
(j) if the balance in the contract is to be used to purchase a life annuity contract, the pension to be provided to a former member who has a spouse at the date the pension commences is to be a joint life pension payable during the joint lives of the former member and the spouse with at least 60% continuance to be payable to the survivor for life after the death of either, unless the spouse waives the entitlement in the form and manner set out in Form 2 of Schedule 2;
(k) on the death of an owner who has a spouse, the money will be used to provide a pension for the surviving spouse unless the surviving spouse waives spousal entitlement in the form and manner set out in Form 4 of Schedule 2, and the money must be transferred
(i) to another LIF contract on the relevant conditions specified in this section,
(ii) to an underwriter’s RRSP contract on the relevant conditions specified in section 29,
(iii) to a pension plan on the conditions referred to in section 33 (2) (a) of the Act, or
(iv) to purchase a life annuity contract;
(k.1) if the owner dies and is not survived by a spouse or the surviving spouse waives spousal entitlement in the form and manner set out in Form 4 of Schedule 2, the money will be paid by way of a lump sum payment to the designated beneficiary or, if there is no valid designation of beneficiary, to the owner’s estate;
(l) the fiscal year of the contract ends on December 31 of each year and never exceeds 12 months;
(m) the owner of the contract will be paid an income, the amount of which may vary annually;
(n) payment of the income to the owner will commence not later than the last day of the second fiscal year of the contract;
(o) the method and factors that are to be used to establish the value of the contract, or the value of the balance of the contract, for the purpose of
(i) a transfer of assets,
(ii) the purchase of a life annuity, and
(iii) a payment or transfer on death of the owner;
(p) after the owner of the contract has received the information referred to in subsection (12) (a), the owner will establish at the beginning of each fiscal year the amount of income to be paid during that fiscal year of the contract unless the savings institution or insurance company guarantees the rate of return of the contract over a period that is greater than one year and that ends at the end of a fiscal year, in which case the owner may establish the amount of income to be paid during that period at the beginning of that period;
(q) the amount of income paid during a fiscal year of the contract will not be less than the minimum amount required to be paid under the Income Tax Act (Canada) and the regulations under the Income Tax Act (Canada), if there is a minimum amount, and will not exceed the greater of:
(i) M as determined in accordance with the following formula:
M = C X F
where C = the balance of money in the contract on the first day of the year, and F = the factor in Schedule III for the reference rate for the year and the owner’s age at the end of the preceding year, and
(ii) the preceding year’s investment returns for the contract, if there was a preceding year;
(r) Repealed. [B.C. Reg. 131/2004, s. 3 (h).]
(s) if the money in the contract is derived from money transferred directly or indirectly during the first fiscal year of the contract from another contract of the owner, the limit M is equal to zero except to the extent that the Income Tax Act (Canada) requires the payment of a higher amount;
(t) if in any fiscal year of the contract an additional transfer is made to the contract and that additional transfer has never been under a contract before, an additional withdrawal will be allowed in that fiscal year;
(u) the additional amount of withdrawal referred to in paragraph (t) will not exceed the maximum amount that would be calculated under this section if the additional transfer were to be transferred into a separate contract;
(v) Repealed. [B.C. Reg. 131/2004, s. 3 (h).]
(w) if, in the application of paragraph (p), the amount of income to be paid to the owner is fixed at an interval of more than one year, paragraphs (q) and (s) will apply with such modifications as the circumstances require to determine, at the date of the beginning of the first fiscal year in the interval, the amount of income to be paid for each fiscal year in that interval;
(x) if the contract holds identifiable and transferable securities, the transfer or purchase referred to in paragraphs (b), (c) and (d) may, unless otherwise stipulated, at the option of the savings institution or insurance company and with the consent of the owner, be effected by remittance of the investment securities of the contract;
(y) an agreement by the savings institution or insurance company to provide the information specified in subsection (12).
(8.1) Despite subsections (8) and (13), a savings institution or insurance company may issue to an owner during 2004 a contract that does not comply with this section, provided that
(a) the contract complies with this section as it read immediately prior to the coming into force of this subsection,
(b) the name of the contract appears on the list maintained by the superintendent under subsection (3),
(c) the contract issued to the owner is in the form of a specimen contract, as amended if applicable, that has received the written approval of the superintendent, and
(d) the contract issued to the owner is subsequently amended to comply with this section, or terminated, by December 31, 2004.
(8.2) A contract that was entered into under this section, as it read prior to the coming into force of this subsection, and that has not been terminated must be amended to comply with this section by December 31, 2004.
(8.3) Despite subsections (8) (q), (12) (a), (13) and the terms of a contract, an underwriter may permit the owner of a contact to receive an amount of income during the 2004 fiscal year of the contract that does not comply with subsection (8) (q), provided that the amount of income
(a) complies with subsection (8) (q) as it read immediately prior to the coming into force of this subsection, or
(b) does not exceed the preceding year’s investment returns for the contract, if there was a preceding year.
(9) A copy of the contract, including the contractual obligations specified in subsection (8), must be provided to the applicant at the time the application to transfer the locked-in money is completed.
(10) Notwithstanding subsection (8), the contract may provide for the withdrawal of money as a lump sum or series of payments for the purposes of section 40 (2) of the Act if a physician certifies that due to a physical disability the life expectancy of the owner is likely to be shortened considerably, but the payment may only be made if the spouse of the owner has waived the joint life pension entitlement in the form and manner set out in Form 2 of Schedule 2.
(10.1) Despite subsection (8), the contract may provide for the withdrawal of money by an owner who
(a) has been absent from Canada for 2 or more years,
(b) has become a non-resident of Canada as determined for the purposes of the Income Tax Act (Canada), and
(c) completes and files a certificate of non-residency in Form 6 in the manner described in section 23.1 (2).
(10.2) A former member who is the owner of a contract is exempt from section 30 of the Act and the requirements of subsections (2), (5), (8) (a) and (g) to (j), (11) and (13) to (16) of this section, and the contract is deemed to be amended to provide for such an exemption, if the balance of the contract does not exceed 20% of the Year’s Maximum Pensionable Earnings.
(10.3) A contract for which the balance of the contract exceeds 20% of the Year’s Maximum Pensionable Earnings must not be divided into two or more of any combination of RRSP or life income fund contracts, if any of the contracts would have a resulting balance less than 40% of the Year’s Maximum Pensionable Earnings.
(11) Money, including interest, that is transferred under this section must not be subsequently used to purchase a life annuity contract that differentiates on the basis of the annuitant’s sex.
(12) The savings institution or insurance company must, within 90 days of the beginning of each fiscal year of the contract,
(a) provide to the owner information respecting
(i) the sums deposited, the investment income earned, the payments made out of the contract and the fees charged against the contract during the previous fiscal year,
(ii) the balance in the contract, and
(iii) the minimum amount that must, and the maximum amount that may, be paid out of the contract to the owner during the current fiscal year,
(b) if the balance in the contract is transferred as described in subsection (8) (b), provide to the owner the information described in paragraph (a) as of the date of the transfer, and
(c) if the owner dies before the balance in the contract is used to purchase a life annuity contract or is transferred under subsection (8) (b), provide to the person entitled to receive the balance the information described in paragraph (a) as of the date of death.
(13) A contract that does not contain any or all of the contractual obligations required by subsection (8) shall be deemed to contain those obligations.
(14) Every underwriter who is a party to the contractual obligations under subsection (8) must comply with those obligations or ensure that those obligations are complied with.
(15) An administrator or underwriter must not effect a transfer to an underwriter unless the administrator or underwriter has
(a) ensured that the underwriter’s name and contract are on the superintendent’s list established under subsection (3),
(b) advised the underwriter in writing of the requirement to lock in the money, and
(c) made the underwriter’s acceptance of the transfer subject to the conditions provided for in subsection (8).
(16) If the administrator or underwriter does not comply with subsection (15) and the other underwriter fails to pay the money transferred in the form of a pension or in the manner required by subsection (8), the pension plan or underwriter, as applicable, continues to be liable to ensure that the owner receives a pension equal in value to the pension that would have been provided had the transfer not been made.
(17) If the owner receives money from another underwriter in respect of which the plan is required to meet and does meet its continuing liability under subsection (16), the plan has a right of action against the recipient for that money.
(17.1) An underwriter must not effect a transfer to another underwriter unless the transferring underwriter has advised the transferee underwriter in writing
(a) that the funds had been held under a LIF contract governed by this regulation, and
(b) the date on which the funds were transferred out of the LIF.
(18) The contract must comply with the conditions for registration under the Income Tax Act (Canada) and, once registered, the contract must remain registered.
(19) Reasonable fees for the administration of the contract may be paid out of the money in the contract.
[am. B.C. Regs. 337/94, s. 2; 31/98, s. 5; 455/99, ss. 14 and 20; 131/2004, s. 3.]
30.1 (1) A pension plan may provide for payments of pension benefits similar to the method of payments available from a life income fund, provided that
(a) the payments are permitted under the Income Tax Act (Canada) and the regulations under the Income Tax Act (Canada),
(b) the plan text contains provisions governing the payments, including the amount of income paid during a year,
(c) if the member or former member had a spouse at the date the payments commenced, the written consent of the spouse had been obtained, before the payments commenced, in the form and manner set out in Form 3 of Schedule 2,
(d) the amount of income paid to a member or former member during a calendar year meets the requirements of section 30 (8) (q) as if the member or former member’s pension entitlement from which the payments are being derived was being operated as a life income fund under section 30,
(e) the administrator, within 90 days of the beginning of each calendar year, provides to the member or former member the information described in section (12) (a), as if the member or former member’s pension entitlement from which the payments are being derived was being operated as a life income fund under section 30, and
(f) the member or former member continues to have the entitlements provided by section 33 of the Act as long as the pension entitlement from which the payments are being derived remains in the plan.
[en. B.C. Reg. 131/2004, s. 4.]
31 (1) For the purposes of section 35 (4) of the Act, the form of the spousal statement respecting survivor benefits is as set out in Form 2 of Schedule 2.
(2) For the purposes of section 34 (1) (b) of the Act, the form of the spousal waiver respecting spousal entitlement is as set out in Form 4 of Schedule 2.
(3) Despite the receipt by the administrator of a valid spousal waiver from the surviving spouse of a member or former member who dies before pension commencement, the spousal waiver does not entitle the surviving spouse to receive a lump sum payment as a designated beneficiary of the member or former member.
[am. B.C. Regs. 337/94, s. 3; 455/99, s. 21.]
32 For the purposes of section 37 (3) of the Act, the reduction of a pension by reason of entitlement to a pension under the Canada Pension Plan (Canada) or the Quebec Pension Plan (Quebec), calculated at the date of termination of membership, death or pension commencement, must not exceed
| A | x | B |
|
|
||
| 420 |
where
| A | = | the amount of pension payable to the person under the Canada Pension Plan (Canada) or the Quebec Pension Plan (Quebec) calculated as of the date of termination of that person's employment or membership, and | |
| B | = | the number of months of employment or membership, not to exceed 420, credited to the person under the pension plan. |
33 (1) For the purposes of section 40 (1) (a) of the Act, the amount is 1/12 of 10% of the Year's Maximum Pensionable Earnings for the calendar year in which the earlier of termination of membership, death or pension commencement occurred.
(2) For the purposes of section 40 (1) (b) of the Act, the amount is 20% of the Year's Maximum Pensionable Earnings for the calendar year in which the earlier of termination of membership, death or pension commencement occurred.
[am. B.C. Reg. 455/99, s. 22.]
34 (1) For the purposes of section 40 (2) of the Act, the conversion of a pension or a part of it to a payment or series of payments must be done using actuarial assumptions that do not take into account the shortened life expectancy of the person referred to in that subsection.
(2) For the purposes of section 40 (2) of the Act, the person referred to in that subsection may make an election only if the spouse of the person has waived the joint and survivor pension entitlement in the form and manner set out in Form 2 of Schedule 2.
35 (1) This section applies only to pension plans that contain one or more defined benefit provisions.
(2) For the purposes of sections 41 (1.1) and (2) of the Act, every plan to which this section applies must be funded in accordance with the tests for solvency of pensions set out in this section.
(3) Subject to subsection (4), every employer must pay into a plan,
(a) in respect of current employment, employer contributions made at least quarterly in an amount that is equal to the normal actuarial cost allocated to the employer as stated in the most recent actuarial valuation report filed,
(b) if the plan has an unfunded liability, equal payments made at least quarterly in an amount that is sufficient to amortize the unfunded liability over a period not exceeding 15 years from the review date that established the unfunded liability, and
(c) if the plan has a solvency deficiency, equal payments made at least quarterly in an amount that is sufficient to amortize the solvency deficiency as follows:
(i) with respect to a solvency deficiency determined on or after January 1, 1993 and before January 1, 1998, payments must be made over a period from the review date that established the solvency deficiency and ending no later than January 1, 2003;
(ii) with respect to a solvency deficiency determined on or after January 1, 1998, payments must be made over a period not exceeding 5 years from the review date that established the solvency deficiency.
(3.1) If a plan is terminated under the conditions referred to in section 51 (2) of the Act, a schedule of special payments must be established as of the date of termination for the solvency deficiency to be amortized over a period of 5 years.
(3.2) For the purposes of section 4 (3), 6 (2) (d), this section and section 51 (2) of the Act, the solvency deficiency must be considered to have been retired if a subsequent valuation reveals that there is no longer a solvency deficiency.
(3.3) For the purposes of section 51 (2) of the Act, the assets of a plan are to be distributed, as soon as approval is granted under section 55 (1) of the Act, on a prorated basis according to the solvency ratio of the plan as of the date of termination, with the remaining portion of the member's entitlement to be distributed within 5 years of the date of termination.
(4) Notwithstanding the special payments referred to in subsection (3) (b) and (c), the employer may elect instead to make payments at least quarterly, such that
(a) each payment is a constant percentage of the future payroll of the members projected as of the date of the original establishment of the unfunded liability or solvency deficiency, and
(b) the actuarial present value of all the payments over the period selected for the purposes of this section is equal to that liability or solvency deficiency.
(5) Each unfunded liability or solvency deficiency must be funded separately and not combined with any other unfunded liability or solvency deficiency.
(6) If a solvency deficiency has been amortized, the reviewer may recalculate any special payments for any unfunded liability that has not been amortized and the employer may make the special payments as recalculated instead of the special payments calculated at the review date relating to the establishment of that unfunded liability.
(7) If the filed actuarial valuation report reveals that the plan has actuarial gains, the actuarial gains must be used to amortize or, where insufficient to amortize, to reduce the outstanding balance of any unfunded liability, with the oldest established unfunded liabilities being amortized or reduced before later ones.
(8) If actuarial gains are used in the manner referred to in subsection (7), further special payments may be
(a) reduced on a prorated basis over the remainder of the period referred to in subsection (3),
(b) made over a shorter period than that referred to in subsection (3), or
(c) on a basis that is a combination of paragraphs (a) and (b).
(9) Notwithstanding subsection (8), actuarial gains in a multi-employer plan may be separately determined, allocated and used in respect of a particular participating employer or group of participating employers, but, in relation to the specific employer or group of employers respecting whom the actuarial gains are used, subsection (8) otherwise applies.
(10) If no unfunded liability exists and no solvency deficiency exists, surplus assets may
(a) be used to increase benefits,
(b) be left in the plan,
(c) subject to sections 41 (1.2) and 62 of the Act and section 36 of this regulation, be applied to reduce the employer contributions referred to in subsection (3) (a), or
(d) subject to sections 61 and 62 of the Act and section 42 of this regulation, be paid or transferred to the employer.
(11) The rate of amortization of an unfunded liability or solvency deficiency established under subsection (3) or (4) may be increased at any time by
(a) increasing the amount of special payments,
(b) making special payments in advance, or
(c) making additional payments of any kind,
and where, in respect of a fiscal year, the rate of amortization is so increased or actuarial gains are allocated to reduce or amortize an unfunded liability, the amount of a special payment for a subsequent fiscal year may be reduced.
(12) Notwithstanding subsection (11), the outstanding balance of any unfunded liability or solvency deficiency, taking into account any reduction of an unfunded liability by virtue of subsection (7), must at no time be greater than it would have been had the full special payments required by subsection (3) or (4) for the subsequent fiscal years been made and the rate of amortization had not been increased under subsection (11).
(13) Notwithstanding subsection (3) and section 6 (4), if a plan is reviewed or the latest review is revised under section 6 (4), the applicable periods referred to in subsection (3) (b) and (c) respectively must be treated as commencing to run from the date when the amendment is made.
(14) If a plan has a transfer agreement, as defined in section 18 (1) of the Act, the reviewer must establish the basis for transfers so that any transfer will not impair the solvency of the plan.
(15) If employer contributions to a defined benefit multi-employer negotiated cost plan are based on a fixed rate of dollars or portions of dollars per hour of employment, the reviewer must perform supplementary tests to demonstrate that the rate and amount of contributions are sufficient to meet the solvency and funding tests, including the normal actuarial cost and special payments, and, if that sufficiency cannot be demonstrated, the reviewer must so advise the administrator.
(16) If the contributions to a defined benefit multi-employer negotiated cost plan are not sufficient to meet the funding requirements of this regulation, the reviewer must, within 60 days, propose options to the administrator that will have the result that the required contributions will be sufficient to provide the benefits under the plan.
(17) Within 90 days of receiving the options proposed by the reviewer under subsection (16), the administrator must notify the superintendent that the sufficiency cannot be demonstrated and the steps that will be taken so that the amount of contributions will become sufficient to meet the funding requirements of this regulation or, subject to section 59 (3) of the Act, to reduce benefits or entitlements under the plan.
(18) If an insured plan established before January 1, 1993 is funded by level premiums to pensionable age for each individual member, the insured plan shall be deemed to meet the solvency tests.
(19) If a fiscal year is longer or shorter than 12 months, the amount required to be paid under this section must be increased or reduced proportionately.
(20) If, on any subsequent review date after the initial review date, the sum of the solvency assets and the solvency asset adjustment exceeds the liabilities of a plan determined on a plan termination basis, the special payments under subsection (3) (c) with respect to solvency deficiencies arising before the subsequent review date that are scheduled for payment after that subsequent review date may be adjusted as follows:
(a) if the excess is greater than or equal to the present value of the special payments under subsection (3) (c), the special payments may be reduced to zero;
(b) if the excess is less than the present value of the special payments under subsection (3) (c), the monthly rate of the special payments must not be changed but the amortization period or periods for the special payments may be reduced so as to reduce the excess to zero.
(21) Despite subsection (20), if
(a) the benefits of a plan are reduced under section 59 of the Act, and
(b) a subsequent review of the plan under section 6 (4) of this regulation indicates an improvement in the financial position of the plan due to that reduction,
further special payments may, with the written consent of the superintendent,
(c) be reduced on a prorated basis over the remainder of the period referred to in subsection (3),
(d) be made over a shorter period than that referred to in subsection (3), or
(e) be made on a basis that is a combination of paragraphs (c) and (d).
[am. B.C. Reg. 455/99, s. 23.]
36 (1) For purposes of section 41 (1.2) of the Act, the conditions for taking a contribution holiday are as set out in this section.
(2) Subject to subsection (7), a pension plan that began a contribution holiday before February 1, 1994 may continue that contribution holiday if
(a) there continues to be surplus assets,
(b) there is no unfunded liability and no solvency deficiency, and
(c) the administrator discloses the fact of the contribution holiday to members in the annual statement required under section 11.
(3) Repealed. [B.C. Reg. 455/99, s. 24.]
(4) Subject to subsection (7), the administrator of a pension plan may initiate a contribution holiday that is not a contribution holiday taken to comply with section 147.2 (2) of the Income Tax Act (Canada) if
(a) the surplus assets which are in excess of the minimum amount specified in subsection (7) are amortized over a period of 5 years beginning at the commencement of the contribution holiday, and
(b) the continuation of the contribution holiday is subject to reconfirmation upon completion of the next review.
(5) For the purposes of this section, the administrator must
(a) give written notice, at the commencement of the contribution holiday, to the superintendent, the fund holder, any advisory committee and any relevant union, of the intention of the administrator to initiate the contribution holiday, and
(b) disclose the fact of the contribution holiday to members in the annual statement required under section 11 and, at the same time, to former members who are in receipt of benefits, which disclosures must contain the following information:
(i) a statement that the pension plan provides for a contribution holiday;
(ii) the amount of the surplus assets in the plan as determined in the most recent review;
(iii) the amount of the surplus assets that will be used by the employer to fund the contribution holiday during the fiscal year following the fiscal year covered by the annual statement;
(iv) a statement that, in the administrator's opinion, the plan will continue to meet the solvency requirements under section 35 after the taking of the contribution holiday;
(v) a statement of the right, under section 10 (4) and (5) of the Act, of any person entitled to a benefit, or the spouse or any designated beneficiary or agent of the person entitled to a benefit, to examine documents.
(6) The notice of a contribution holiday given under subsection (5) to members and to former members who are in receipt of benefits is deemed to be the adequate notice of intent required for the purposes of section 62 (2) of the Act.
(7) A contribution holiday must not reduce surplus assets to less than 5% of the value of the liabilities under the plan, determined as of the previous review date.
[am. B.C. Reg. 455/99, s. 24.]
37 For the purposes of section 43 (3) of the Act, the periods within which contributions must be remitted are as follows:
(a) in the case of member contributions, in accordance with the terms of the wage assignment or authorization to pay, or within 30 days after the end of the month in which the deduction is made, whichever is earlier;
(b) in the case of employer contributions determined in accordance with a formula respecting
(i) a defined contribution provision that relates to profits of the employer, other than minimum required contributions, 90 days after the end of the fiscal year of the employer to which the profits relate, or
(ii) a defined contribution provision that does not relate to profits of the employer or that are minimum required contributions, 30 days after the end of the month for which those contributions are payable;
(c) in the case of employer contributions to defined benefit negotiated cost or multi-employer plans, 30 days after the end of the month for which those contributions are payable;
(d) subject to paragraph (c), in the case of employer contributions relating to normal actuarial costs and special payments in respect of defined benefit provisions that are payable on at least a quarterly basis, 30 days after the end of each period in respect of which they are payable.
[am. B.C. Reg. 455/99, s. 25.]
38 (1) In this section:
"investment" means the investment of the assets of a pension plan and includes loans and deposits of those assets;
"permitted investment" means an investment permitted under this section and Schedule III, and "permitted" is to be construed accordingly;
"Schedule III" means Schedule III to the Pension Benefits Standards Regulations, 1985 (Canada), SOR/87-19, as amended from time to time.
(2) Notwithstanding the provisions of any pension plan or any instrument governing a plan, the assets of a plan must be invested, and the investments must be made, in accordance with this section and Schedule III.
(3) The administrator of a plan must, before the later of July 1, 1994 and the day on which the plan is registered, establish, on behalf of the plan, a written statement of investment policies and procedures in respect of the plan's portfolio of investments and loans, having regard to all factors that may affect the funding and solvency of the plan and the ability of the plan to meet its financial obligations, including all of the following:
(a) categories of investments and loans, including derivatives, options and futures;
(b) diversification of the investment portfolio;
(c) asset mix and rate of return expectations;
(d) liquidity of investments;
(e) the lending of cash or securities;
(f) the retention or delegation of voting rights acquired through investments;
(g) the method of, and the basis for, the valuation of investments that are not regularly traded at a public exchange;
(h) related party transactions permitted under section 17 of Schedule III and the criteria to be used to establish whether a transaction is nominal or immaterial to the plan.
(4) The statement of investment policies and procedures referred to in subsection (3) must include a description of the factors referred to in that subsection and the relationship of those factors to those policies and procedures.
(5) If the plan is a defined benefit plan, the administrator must submit the statement of investment policies and procedures referred to in subsection (3) to the actuary of the plan on or before the later of
(a) 60 days after the day on which the statement is established, and
(b) the day on which the actuary is appointed.
(6) If Schedule III is amended with the result that existing investments no longer comply with Schedule III, those investments
(a) may be retained until the earlier of the fixed maturity date and 5 years following the effective date of the amendment of Schedule III, if they are investments with a fixed maturity date, or
(b) must be in compliance by no later than 5 years following the effective date of the amendment of Schedule III.
(7) Every investment made after July 1, 1994 must comply with this section, Schedule III and the investment policy of the plan.
(8) When interpreting Schedule III for the purposes of this section, "Canadian resource property" has the meaning assigned to it by paragraph 66 (15) (c) of the Income Tax Act (Canada).
(9) The administrator of a plan must review and confirm or amend the statement of investment policies referred to in subsection (3) at least once in each plan fiscal year.
(10) Where the plan is a defined benefit plan, the administrator must submit any amendments to the investment policy statement to the actuary within 60 days of amendment of the statement.
(11) After July 1, 1994, an annual information return filed under section 9 (3) of the Act must include a written statement in a form satisfactory to the superintendent, and signed by the administrator, as to whether the plan is in compliance with this section and the investment policy statement.
[am. B.C. Reg. 455/99, s. 26.]
39 (1) For the purposes of section 45 (1) of the Act, the basis for the reduction of benefits, the methods of allocating and distributing assets, and the priorities for determining benefits are as set out in this section.
(2) The method of allocating and distributing assets is one of the following:
(a) a method that meets the following conditions:
(i) assets must be allocated firstly to provide for benefits equal to the value of contributions, with interest, made by and transferred from another plan in respect of members and former members;
(ii) to the extent that assets have not been allocated under subparagraph (i), assets must be allocated to provide for accrued benefits in respect of which no unfunded liability was established or, if an unfunded liability was established, that liability has been amortized at the date of the winding up of the plan;
(iii) to the extent that assets have not been allocated under subparagraphs (i) and (ii), assets must be allocated to provide for accrued benefits in respect of which an unfunded liability or solvency deficiency has not been amortized at the date of the winding up of the plan;
(b) a method that meets the following conditions:
(i) assets must be allocated firstly to provide for benefits equal to the value of contributions, with interest, made by and transferred from another plan in respect of members and former members;
(ii) to the extent that assets have not been allocated under subparagraph (i), assets must be allocated to provide for accrued benefits established 2 or more years before the date of wind up, provided that the superintendent may relegate the priority of any benefit improvements made in the last 5 years to a more recent effective date selected by the superintendent;
(iii) to the extent that assets have not been allocated under subparagraphs (i) and (ii), assets must be allocated to provide for other accrued benefits in order of the date on which the benefits were established, starting with the earliest date;
(c) a method that is approved in writing by the superintendent.
40 For the purposes of section 54 (3) of the Act, a report
(a) in respect of an insured plan may be prepared by any person so authorized by the insurance company, or
(b) in respect of a plan that consists solely of defined contribution provisions may be prepared by an authorized representative of the fund holder, by the administrator or by another person approved by the superintendent.
41 (1) If, in the opinion of the superintendent, an administrator has transferred money out of a pension plan in contravention of section 60 (3) of the Act or contrary to the terms and conditions specified by the superintendent under section 60 (4) of the Act, the superintendent may make an order requiring the person who currently holds the money to repay the money, together with interest on it at a rate of interest which is the greater of the rate as determined under section 24 (1) (a) and (b), to the plan.
(2) If the person holding the money does not repay the money and any earnings on it within the period specified in the order, the superintendent may make an application to the Supreme Court, supported by an affidavit of the superintendent, for an order to complete the payment.
(3) The application and affidavit under subsection (2) must be served on the person holding the money and on the administrator who transferred the money.
(4) The court may make the order if it is satisfied that the money was originally transferred out of the plan in contravention of section 60 (3) of the Act or contrary to the terms and conditions specified by the superintendent under section 60 (4) of the Act, and may make the order subject to any conditions that the court considers appropriate.
42 (1) For the purposes of section 61 (1) (b) of the Act, an administrator must comply with the conditions set out in this section.
(2) The administrator must, at least 30 days before submitting a request to the superintendent for the approval required by section 61 (1) (c) of the Act, provide a written notice in respect of the request to all of the following:
(a) the members and former members of the plan, surviving spouses who are in receipt of a benefit, former spouses who are in receipt of a benefit, designated beneficiaries who are in receipt of a benefit, and personal representatives of the estate of deceased members or former members where the estate is in receipt of a benefit;
(b) a trade union that is a certified bargaining agent within the meaning of the Labour Relations Code and that represents members or former members of the plan;
(c) any other person designated by the superintendent.
(3) The written notice required by subsection (2) must contain all of the following:
(a) a statement that the pension plan provides for the payment or transfer of surplus assets to the employer;
(b) a statement of the administrator's intention to pay or transfer surplus assets to the employer, including a statement that the surplus assets may be paid or transferred to the employer any time after 60 days following the date of the written notice;
(c) the amount of surplus assets in the plan as determined in the most recent review;
(d) the amount of surplus assets to be paid or transferred to the employer;
(e) a statement that, in the administrator's opinion, the plan will continue to meet the solvency requirements under subsection (5) after the payment or transfer of surplus assets;
(f) a statement of the right, under section 10 (4) and (5) of the Act, of any person entitled to a benefit, or the spouse or any designated beneficiary or agent of the person entitled to a benefit, to examine documents;
(g) a statement that notice of a dispute respecting the allocation, payment or transfer of surplus assets must be provided to other parties within 60 days;
(h) a statement that a dispute respecting the payment or transfer of surplus assets must be resolved in accordance with section 62 of the Act.
(4) The administrator must
(a) file a copy of the notice under subsection (2) on or before the date when it is required to be provided to the persons under subsection (2), and
(b) file a statement that the notice has been provided to the persons under subsection (2).
(5) In the case of a plan containing a defined benefit provision, the administrator of a plan that is not being wound up, or an arbitrator appointed under section 62 of the Act, must ensure that there is retained in the plan surplus assets that are not less than 5% of the value of the liabilities under the plan, determined as of the previous review date.
(6) The administrator or the arbitrator must provide any information or documents that the superintendent requires to enable the superintendent to issue a notice under section 61 (1) (c) of the Act.
(7) If the superintendent considers that the decision of the arbitrator does not ensure that the plan will continue to meet the solvency tests after the payment or transfer of surplus assets, the superintendent may remit the award back to the arbitrator for reconsideration.
(8) For the purpose of section 61 (3) (b) of the Act, "other prescribed person" means a person who retains a present or future entitlement to receive a benefit under the plan as the surviving spouse of
(a) a person who was a member until that person died, or
(b) a former member who has died.
[am. B.C. Reg. 455/99, s. 27.]
43 (1) For the purposes of section 62 of the Act, "party" means any of the following:
(a) the employer;
(b) the plan administrator;
(c) the members and former members of the plan, surviving spouses who are in receipt of a benefit, former spouses who are in receipt of a benefit, designated beneficiaries who are in receipt of a benefit, and personal representatives of the estate of deceased members or former members where the estate is in receipt of a benefit;
(d) a trade union that is a certified bargaining agent within the meaning of the Labour Relations Code and that represents members or former members of the plan;
(e) any other person designated by the superintendent.
(2) For the purposes of section 62 (2) of the Act,
(a) a "difference" arises if
(i) a person referred to in subsection (1) (a), (b), (d) or (e) disputes an action or proposed action respecting any matter referred to in section 62 (1) of the Act, or
(ii) at least 20% of the persons referred to in subsection (1) (c) dispute an action or proposed action respecting any matter referred to in section 62 (1) of the Act, and
(b) the prescribed time period is 60 days.
44 For purposes of section 69 (1) of the Act, the number of members of a pension plan is 49.
[am. B.C. Reg. 31/98, s. 6.]
45 Repealed. [B.C. Reg. 366/99.]
46 Repealed. [B.C. Reg. 455/99, s. 28.]
[en. B.C. Reg. 110/2000; am. B.C. Reg. 420/2000; 110/2001; 112/2001; 131/2004, s.5; 195/2004.]
Exempt Provisions
(section 3 (10) )
| Column 1 Enactment |
Column 2 Exempt Provisions of the Pension (Benefits Standards) Act or the Pension Benefits Standards Regulation |
| 1 College Pension Plan Regulation made under the Public Sector Pension Plans Act | 1 The definition of "termination of membership" in section 1 (1) of the Act. 2 The definition of "years of continuous employment" in section 1 (1) of the Act. 3 Section 24 (1) (g) of the Act. 4 Section 30 (6) of the Act. 5 Section 34 (2) of the Act. 6 Section 41 of the Act. 7 Section 45 of the Act. 8 Section 46 of the Act. 9 Section 60 (3) of the Act. 10 Section 10 (1) (b) and (c) of this regulation. 11 Section 25 (1) to (9) of this regulation on condition that the entire transfer amount is transferred promptly after the application for transfer. 12 Section 35 of this regulation. |
| 2 Municipal Pension Plan Rules, made under the Municipal Pension Plan Joint Trust Agreement, made under the Public Sector Pension Plans Act | 1 Repealed. [B.C. Reg. 111/2001.] 2 The definition of "termination of membership" in section 1 (1) of the Act. 3 The definition of "years of continuous employment" in section 1 (1) of the Act. 4 Section 24 (1) (g) of the Act. 5 Section 30 (6) of the Act. 5.1 Section 33 (1) of the Act as it would otherwise apply in relation to a member who terminates membership in the plan and is eligible for an immediate pension. 6 Section 34 (2) of the Act. 7 Section 41 of the Act. 8 Section 45 of the Act. 9 Section 46 of the Act. 10 Section 60 (3) of the Act. 11 Section 10 (1) (b) and (c) of this regulation. 12 Section 25 (1) to (9) of this regulation on condition that the entire transfer amount is transferred promptly after the application for transfer. 13 Section 35 of this regulation. |
| 3 Public Service Pension Plan Rules, made under the Public Service Pension Plan Joint Trust Agreement, made under the Public Sector Pension Plans Act | 1 Repealed. [B.C. Reg. 110/2001.] 2 The definition of "termination of membership" in section 1 (1) of the Act. 3 The definition of "years of continuous employment" in section 1 (1) of the Act. 4 Section 24 (1) (g) of the Act. 5 Section 30 (6) of the Act. 5.1 Section 33 (1) of the Act as it would otherwise apply in relation to a member who terminates membership in the plan and is eligible for an immediate pension. 6 Section 34 (2) of the Act. 7 Section 41 of the Act. 8 Section 45 of the Act. 9 Section 46 of the Act. 10 Section 60 (3) of the Act. 11 Section 10 (1) (b) and (c) of this regulation. 12 Section 25 (1) to (9) of this regulation on condition that the entire transfer amount is transferred promptly after the application for transfer. 13 Section 35 of this regulation. |
| 4 Teachers’ Pension Plan Rules, made under the Teachers’ Pension Plan Joint Trust Agreement, made under the Public Sector Pension Plans Act | 1 Repealed. [B.C. Reg. 112/2001.] 2 The definition of "termination of membership" in section 1 (1) of the Act. 3 The definition of "years of continuous employment" in section 1 (1) of the Act. 4 Section 24 (1) (g) of the Act. 5 Section 30 (6) of the Act. 6 Section 34 (2) of the Act. 7 Section 41 of the Act. 8 Section 45 of the Act. 9 Section 46 of the Act. 10 Section 60 (3) of the Act. 11 Section 10 (1) (b) and (c) of this regulation. 12 Section 25 (1) to (9) of this regulation on condition that the entire transfer amount is transferred promptly after the application for transfer. 13 Section 35 of this regulation. |
| 5 Hydro and Power Authority Act | Section 42 of the Act for the period ending on December 31, 2001.> |
NOTE: Sections 32 and 42 of the Pension Benefits Standards Act do not apply to any public sector pension plan.
Form 1
[en. B.C. Reg. 455/99, s. 30.]
(section 19 (2) )
CERTIFICATION
Administrators are required to certify that applications for registration of pension plans, restated plan texts or plan amendments comply with the provisions of the Pension Benefits Standards Act, R.S.B.C. 1996, c. 352, (the "Act") and the regulations under the Act. Where a pension plan covers members in jurisdictions within Canada other than British Columbia, the administrator is also required to certify that the applications comply with the provisions of the pension legislation of those other jurisdictions. The issuance by the Superintendent of Pensions (the "superintendent") of a Certificate of Registration for a pension plan registered under the Act or Notice of Registration for a restated plan text or an amendment to a pension plan registered under the Act will be made based upon this certification. Administrators are reminded that the superintendent has the power to refuse to register or to revoke any registration that does not comply with the Act and the regulations.
I ........................................................., the administrator (or in the case of a corporate administrator, an authorized officer of the administrator) of ............................................................., attach an application for registration of a pension plan a restated plan text or other amendments, dated .................................[date], for the pension plan bearing British Columbia registration number ..........................................., and CERTIFY AS FOLLOWS:
1 I am satisfied that the pension plan or amendment filed herewith complies with the provisions of the Act, the regulations, and the terms of any existing pension plan and trust.
2 I acknowledge that the obligation to determine compliance of the documents filed herewith is the responsibility of the administrator and I declare that I have fulfilled that responsibility and have complied with the provisions of the Act and the regulations in making this application.
3 I acknowledge that this certification extends to compliance with the pension legislation of designated jurisdictions within Canada, other than British Columbia, where the legislation of the designated jurisdictions applies to members and former members of the pension plan.
I declare that the above statements are true to the best of my knowledge and belief and I am making this certification conscientiously believing it to be true and knowing that it is of the same force and effect as if made under oath.
DATED at the City of .........................................., ................................[date].
............................................................................
Signature of administrator or authorized officer
............................................................................
Name of administrator or authorized officer (printed)
| NOTE: | It is an offence to administer a pension plan or pension fund in a manner that does not comply with the provisions of the Act and the regulations. In addition, an administrator may be subject to a direction under the Act issued by the superintendent relating to, amongst other matters, the manner of administration of the pension plan or pension fund. |
Form 2
[en. B.C. Reg. 455/99, s. 30.]
(sections 23.1, 29 (7) (h) and (9), 30 (8) (j) and (10), 31 (1) and 34 (2))
SPOUSE'S WAIVER OF ENTITLEMENTS UNDER A PENSION PLAN,
AN RRSP, A LIFE ANNUITY OR A LIF CONTRACT
| 1 | I, .................................................................................................................................., am the "spouse" of .................................................................................[full name], who is a member or former member of a pension plan regulated by the Pension Benefits Standards Act of British Columbia. | |||
| 2 | Being the member or former member's "spouse" means that (check one) | |||
 |
I am married to the member or former member, and have not been living separate apart from that person for the preceding two years, | |||
|
I have been living with the member or former member, as husband and wife, for the preceding 2 years, or | |||
|
I am the same gender as, and have been living with, the member or former member in a marriage like relationship for the preceding 2 years. | |||
| 3 | I understand that the Pension Benefits Standards Act requires that the benefits earned by a member or former member under a pension plan must be paid as at least a 60% joint and survivor pension. This means that if my spouse dies after the payments start, it is my entitlement to receive lifetime payments of at least 60% of the amount paid to my spouse unless I waive my entitlements. | |||
| 4 | I understand that if I sign this waiver form and it is filed with the plan administrator, RRSP or life insurance or LIF issuing company, I waive my entitlements to the minimum 60% joint and survivor pension. I further understand that signing this waiver means that (check one) | |||
|
(a) | if a pension is to be paid, my spouse may elect a pension that | ||
| (i) | gives me a different survivor benefit, or | |||
| (ii) | gives me no survivor benefit at all, or | |||
|
(b) | if the pension is to be cashed out because the person who owns the entitlement is age 65 or older and that person's total entitlements are less than the prescribed amount, because the person who owns the entitlement has ceased to be a resident of Canada, or due to shortened life expectancy | ||
| (i) | payment will be made to my spouse as a cash lump sum or as a series of payments for a fixed period, and | |||
| (ii) | this may give me no survivor benefit at all. | |||
| 5 | I certify that I am waiving my entitlements to receive the minimum 60% joint and survivor pension, and that | |||
| (a) | I will receive (check one) | |||
|
no payments after my spouse dies, | |||
|
no payments after my spouse dies except for payments until .................................[date] under the ..................... year guarantee period, | |||
|
payments of .........% (less than 60%) of the amount paid to my spouse after my spouse dies, | |||
|
whichever of the above my spouse chooses; | |||
| (b) | I have read this form and understand it; | |||
| (c) | I have reviewed the information provided to my spouse by the plan administrator, RRSP or life annuity or LIF contract issuing company; | |||
| (d) | neither my spouse nor anyone else has put any pressure on me to sign this form; | |||
| (e) | my spouse is not present while I am signing this form; | |||
| (f) | I realize that | |||
| (i) | this form only gives a general description of the legal rights I have under the Pension Benefits Standards Act and the regulations, and | |||
| (ii) | if I wish to understand exactly what my legal rights are I must read the Pension Benefits Standards Act and regulations, and/or seek legal advice; | |||
| (g) | I realize that I am entitled to a copy of this waiver form. | |||
| 6 | To waive my entitlements, I sign this waiver form at ......................................................[city] on .................................[date] | |||
| ............................................................................ Signature of Spouse ............................................................................ ............................................................................ ............................................................................ Address of Spouse (home telephone number): ................................................ (work telephone number): ................................................. |
||||
STATEMENT OF WITNESS
I certify that
(a) My full name is .........................................................................................................
(b) My address is ............................................................................................................
(c) I witnessed this spouse sign this waiver in the absence of his or her spouse.
............................................................. .................................[date]
Signature of Witness
(home telephone number): ....................................
(work telephone number): .....................................
Comments and Instructions
This form must be completed where a spouse wishes to waive his or her entitlement to the 60% joint and survivor form of life annuity that is required under the Pension Benefits Standards Act of British Columbia.
The form must be
For further information please contact the plan administrator, or your employer or union, or the Pensions Standards Branch, Ministry of Labour, 360 West Georgia Street, Suite 870, Vancouver, B.C., V6B 6B2.
Form 3
[en. B.C. Reg. 131/2004, s. 6.]
(section 30 (7) and (30.1))
Spouse’s Consent To Transfer Locked-in Pension Funds to a LIF
or To Receive LIF Type Payments Directly from a Pension Plan
| 1 | I, .............................................................................................................................., am the "spouse" of (full name) ................................................................................., who is a member or former member of a pension plan regulated by the Pension Benefits Standards Act of British Columbia. | ||
| 2 | Being the member or former member's "spouse" means that (check one) | ||
|
I am married to the member or former member, and have not been living separate and apart from that person for the preceding two years, | ||
|
I have been living with the member or former member, as husband and wife, for the preceding 2 years, | ||
|
I am the same gender as, and have been living with, the member or former member in a marriage like relationship for the preceding 2 years. | ||
| 3 | I understand that my spouse wishes to transfer his/her pension benefit to a Life Income Fund (LIF), or to receive LIF-type payments directly from the pension plan, and that my written consent is required to enable my spouse to do so. | ||
| 4 | I understand that | ||
| (a) | transferring the pension benefit to a LIF will allow my spouse to manage his or her own pension fund money, and will allow some flexibility in determining when the money is used, | ||
| (b) | the remaining funds in the LIF or in the pension plan may be used to purchase a life annuity at any time, but there is no requirement that the remaining funds be used to purchase a life annuity at any time, and | ||
| (c) | if the remaining funds are used to purchase a life annuity, the life annuity must be a joint and last survivor annuity unless I waive my entitlements by signing a separate spousal waiver form within 90 days before the start of the annuity. | ||
| 5 | I further understand that before purchasing a life annuity, the LIF or the pension plan, as the case may be, will allow my spouse to withdraw some of the money each year, subject to minimum and maximum withdrawal limits. The maximum withdrawal limit is designed to try to ensure that sufficient money remains to provide a lifetime income. I understand, however, that if | ||
| (a) | my spouse elects to withdraw the maximum amount permitted each year, and/or | ||
| (b) | the investment performance of the fund is poor, | ||
| the level of pension income or survivor benefit available to me in later years may be significantly reduced. | |||
| 6 | Nevertheless, I consent to the transfer of locked-in funds to a LIF, or the receipt of LIF-type payments directly from the pension plan, and certify that | ||
| (a) | I have read this form and understand it, | ||
| (b) | I have read the LIF transfer document and understand it, | ||
| (c) | neither my spouse nor anyone else has put any pressure on me to sign this form, | ||
| (d) | my spouse is not present while I am signing this form, | ||
| (e) | I realize that | ||
| (i) | this form gives only a general description of the legal rights I have under the Pension Benefits Standards Act and regulations, and | ||
| (ii) | if I wish to understand exactly what my legal rights are I must read the Pension Benefits Standards Act and regulations, and/or seek legal advice, and | ||
| (f) | I realize that I am entitled to a copy of this consent form, and a copy of the LIF contract. | ||
| 7 | To consent to the transfer, I sign this consent form at .................................................[city], ...................................................[province], on .................................[date] | ||
| ............................................................................ Signature of Spouse ............................................................................ ............................................................................ ............................................................................ Address of Spouse (home telephone number): ................................................ (work telephone number): ................................................. |
|||
STATEMENT OF WITNESS
I certify that
(a) My full name is .........................................................................................................
(b) My address is ............................................................................................................
(c) I witnessed this spouse sign this consent in the absence of his/her spouse.
............................................................. ................................[date]
Signature of Witness
(home telephone number): ....................................
(work telephone number): .....................................
Comments and Instructions
This form must be completed if a member or former member is eligible and wishes to transfer locked-in money to a LIF under the Pension Benefits Standards Act of British Columbia.
The form must be
For further information please contact the plan administrator, underwriter, your employer or union, or the Pensions Department of the Financial Institutions Commission of British Columbia, 1050 Pender St. W., Suite 1900, Vancouver, B.C., V6E 3S7.
Form 4
[en. B.C. Reg. 455/99, s. 30.]
(section 31 (2))
Spouse's Waiver of Preretirement Survivor Benefit
| 1 | I, ................................................................................................, certify that I am the "spouse" of, or the "surviving spouse" at the date of death of, (full name) ........................................................................, who is a member or former member of a pension plan regulated by the Pension Benefits Standards Act of British Columbia. | ||
| 2 | Being the "spouse" of the member or former member means that (check one, if applicable, or go on to paragraph 3.) | ||
|
I am married to the member or former member, and have not been living separate and apart from that person for the preceding two years, | ||
|
I have been living with the member or former member, as husband and wife, for the preceding 2 years, or | ||
|
I am the same gender as, and have been living with, the member or former member in a marriage like relationship for the preceding 2 years. | ||
| 3 | Being the "surviving spouse" of the member or former member means that (check one, if applicable) | ||
|
I was married to the member or former member, and had not been living separate and apart from that person for the two years preceding the date of death, | ||
|
I had been living with the member or former member, as husband or wife, for the 2 years immediately preceding the date of death, or | ||
|
I am the same gender as, and had been living with, the member or former member in a marriage like relationship for the 2 years immediately preceding the date of death. | ||
| 4 | I understand that, in the absence of a waiver, I am entitled to receive a preretirement survivor benefit in the form of a pension by way of a deferred or immediate life annuity if my spouse dies before pension commencement. | ||
| 5 | I understand that I may waive my entitlement to receive any preretirement survivor benefits by signing and filing this form with the pension plan administrator, RRSP underwriter or life annuity or LIF contract issuing company, as the case may be, in which case this benefit will be paid by way of a lump sum payment to | ||
| (a) | the beneficiary designated by the member or former member where the designated beneficiary is a person other than myself, or | ||
| (b) | the personal representative of the member or former member's estate in his or her representative capacity if there is no valid designation of beneficiary. | ||
| 6 | I certify that I am waiving my entitlements to receive the preretirement survivor benefit or a lump sum payment as the designated beneficiary and that | ||
| (a) | I have read this form and understand it, | ||
| (b) | neither my spouse nor anyone else has put any pressure on me to sign this form, | ||
| (c) | I realize that | ||
| (i) | this form only gives a general description of the legal rights that I have under the Pension Benefits Standards Act and the regulations, and | ||
| (ii) | if I wish to understand exactly what my legal rights are I must read the Pension Benefits Standards Act and the regulations, and/or seek legal advice, and | ||
| (d) | I realize that I am entitled to receive a copy of this form. | ||
| 7 | To waive my entitlements, I sign this waiver form at .................................................[city], ...................................................[province], on .................................[date] | ||
| ............................................................................ Signature of Spouse or Surviving Spouse ............................................................................ ............................................................................ ............................................................................ Address of Spouse or Surviving Spouse (home telephone number): ................................................ (work telephone number): ................................................. |
|||
STATEMENT OF WITNESS
I certify that
(a) My full name is .........................................................................................................
(b) My address is ............................................................................................................
(c) I witnessed this spouse or surviving spouse sign this waiver form.
............................................................. ................................[date]
Signature of Witness
(home telephone number): ....................................
(work telephone number): .....................................
Comments and Instructions
This form must be completed where a spouse or surviving spouse wishes to waive his or her entitlement to a preretirement survivor benefit that is required under the Pension Benefits Standards Act. Where the form is filed before the death of the member or former member, the member or former member must provide the plan administrator or underwriter with the name of the designated beneficiary other than the spouse.
The form must be
For further information please contact the plan administrator, your employer or union, or the Pensions Standards Branch, Ministry of Labour, 360 West Georgia Street, Suite 870, Vancouver, B.C., V6B 6B2.
Form 5
[en. B.C. Reg. 455/99, s. 30.]
(section 23.1 (1))
Declaration of commutable amount
| I, ..........................................................................................., certify that | |||
| 1 | My birth date is ..........................................[date], which means I am .....................[age] as of the date of this declaration. | ||
| 2 | I am a member or former member of the following defined contribution pension plans, regulated by the Pension Benefits Standards Act, and the current value of my pension benefit entitlements in each plan is as follows: | ||
| plan: ............................................ registration number: .........................., value $................ | |||
| plan: ............................................ registration number: .........................., value $................ | |||
| plan: ............................................ registration number: .........................., value $................ | |||
| 3 | I am the owner of the following locked-in RRSPs and life income funds ("LIFs"), regulated by the Pension Benefits Standards Regulation, and the current value of my entitlements in each plan or fund is as follows: | ||
| name of financial institution: ................................................................, value $................ | |||
| name of financial institution: ................................................................, value $................ | |||
| name of financial institution: ................................................................, value $................ | |||
| 4 | The total value of all my entitlements in all defined contribution plans, locked-in RRSPs and LIFs regulated by the Pension Benefits Standards Act and Pension Benefits Standards Regulation amounts to $................................. | ||
| 5 | The total value of all such benefit entitlements is less than 40% of the Year's Maximum Pensionable Earnings as set for the Canada Pension Plan for the year during which this form is being completed and signed. | ||
| 6 | The above information is based on the most recent information I have available, and that information is less than 1 year old. | ||
| 7 | I am indicating my spousal status by selecting one of the following: | ||
|
I have never had a spouse. | ||
|
I previously had a spouse but no longer have one. The last person to be my spouse ceased being my spouse on .............................., and that person's name is (was) ................................................................. | ||
|
I currently have a spouse, my spouse's name is ............................................................, and my spouse has consented to the commutation of some or all of my pension benefit entitlements in defined contribution pension plans, locked-in RRSPs and LIFs by completing in the prescribed manner a spouse's waiver of entitlements using Form 2. The completed Form 2 has been attached to this form. | ||
| 8 | None of the assets listed on this form are subject to a transfer of entitlements due to a marriage breakdown. | ||
| DATED at the City of .........................................., ................................[date]. | |||
| ............................................................................ Signature of Declarant ............................................................................ ............................................................................ ............................................................................ Address of Declarant (home phone #): ................................................ (work phone #): ................................................. |
|||
STATEMENT OF WITNESS
I certify that
(a) My full name is .........................................................................................................
(b) My address is ............................................................................................................
(c) I witnessed this declarant sign this form.
............................................................. .................................[date]
Signature of Witness
(home phone #): ....................................
(work phone #): .....................................
Comments and Instructions
This form must be completed if a member or former member of a defined contribution pension plan and/or the owner of a locked-in RRSP or life income fund ("LIF"), age 65 or older, wishes to commute some or all of the benefit entitlements in those plans or funds. The person may commute, on a non locked-in basis, up to the full amount of the person's benefit entitlements in those plans and funds where the total value of all of that person's entitlements in all defined contribution plans, locked-in RRSPs and LIFs regulated by the Pension Benefits Standards Act and Pension Benefits Standards Regulation is less than 40% of the Year's Maximum Pensionable Earnings as set for the Canada Pension Plan for the year during which this form is being completed and signed.
If the person has a spouse the commutation can only proceed if the spouse has consented to the commutation by completing in the prescribed manner a spouse's waiver of entitlements using Form 2. The completed Form 2 must be attached to this form, and has the effect of waiving spousal entitlements only in respect of the benefit entitlements in plans and funds listed on this form. The completed Form 2 does not operate to waive spousal entitlements to benefit entitlements in any other plans or funds the declarant may have.
This form must be
For further information please contact the pension plan administrator, savings institution or insurance company holding the money, or the Pensions Standards Branch, Ministry of Labour, 360 West Georgia Street, Suite 870, Vancouver, B.C., V6B 6B2.
Form 6
[en. B.C. Reg. 455/99, s. 30.]
(section 23.1 (2))
Certificate of non-residency
| I, ..........................................................................................., certify that | |||
| 1 | I am the member or former member of the following pension plans regulated by the Pension Benefits Standards Act: | ||
| pension plan: .................................................................. registration number: .......................... | |||
| pension plan: .................................................................. registration number: .......................... | |||
| pension plan: .................................................................. registration number: .......................... | |||
| 2 | I am the owner of the following locked-in RRSPs and LIFs, regulated by the Pension Benefits Standards Regulation: | ||
| name of financial institution: ........................................................................................................ | |||
| name of financial institution: ........................................................................................................ | |||
| name of financial institution: ........................................................................................................ | |||
| name of financial institution: ........................................................................................................ | |||
| name of financial institution: ........................................................................................................ | |||
| 3 | I have been absent from Canada since ........................................................................................... | ||
| 4 | I am now a resident of .................................................................................................................... | ||
| 5 | I have received from the Canada Customs and Revenue Agency written confirmation that the Canada Customs and Revenue Agency has determined me to be a non-resident of Canada for the purposes of the Income Tax Act (Canada), and I have attached a copy of that confirmation to this form. | ||
| 6 | I am indicating my spousal status by selecting one of the following: | ||
|
I have never had a spouse. | ||
|
I previously had a spouse but no longer have one. The last person to be my spouse ceased being my spouse on .............................., and that person's name is (was) ...................................................................... | ||
|
I currently have a spouse, my spouse's name is ............................................................, and my spouse has consented to the transfer out of Canada of some or all of my pension benefit entitlements in pension plans, locked-in RRSPs and LIFs by completing in the prescribed manner a spouse's waiver of entitlements using Form 2. The completed Form 2 has been attached to this form. | ||
| 7 | I hold all of the entitlement to all of the assets listed on this form, and none of these assets are subject to a transfer of entitlements due to a marriage breakdown. | ||
| DATED at the City of .........................................., ................................[date]. | |||
| ............................................................................ Signature of Declarant ............................................................................ ............................................................................ ............................................................................ Address of Declarant (home phone #): ................................................ (work phone #): ................................................. |
|||
STATEMENT OF WITNESS
I certify that
(a) My full name is .........................................................................................................
(b) My address is ............................................................................................................
(c) I witnessed this declarant sign this form.
............................................................. .................................[date]
Signature of Witness
(home phone #): ....................................
(work phone #): .....................................
Comments and Instructions
This form must be completed if a member or former member of a pension plan regulated by the Pension Benefits Standards Act and/or the owner of a locked-in RRSP or life income fund ("LIF") regulated by the Pension Benefits Standards Regulation has ceased to be a resident of Canada and wishes to transfer benefit entitlements out of Canada. In order to transfer benefit entitlements out of Canada the person must have been absent from Canada for more than 2 years, and the person must have been determined by the Canada Customs and Revenue Agency to be a non-resident of Canada for the purposes of the Income Tax Act (Canada). A copy of that determination must be attached to this form.
If the person has a spouse the transfer can only proceed if the spouse has consented to the transfer by completing in the prescribed manner a spouse's waiver of entitlements using Form 2. The completed Form 2 must be attached to this form, and has the effect of waiving spousal entitlements only in respect of benefit entitlements in the plans and funds listed on this form. The completed Form 2 does not operate to waive spousal entitlements to benefit entitlements in any other plans or funds the declarant may have.
This form must be
For further information please contact the pension plan administrator, savings institution or insurance company holding the money, or the Pensions Standards Branch, Ministry of Labour, 360 West Georgia Street, Suite 870, Vancouver, B.C., V6B 6B2.
[en. B.C. Reg. 131/2004, s. 7.]
Life Income Fund Factor F
(Section 30)
Reference Rate
| Age | 6.00% | 6.50% | 7.00% | 7.50% | 8.00% | 8.50% | 9.00% | 9.50% |
|---|---|---|---|---|---|---|---|---|
| under 55 | 0.061 | 0.063 | 0.066 | 0.069 | 0.072 | 0.075 | 0.078 | 0.081 |
| 55 | 0.064 | 0.067 | 0.070 | 0.073 | 0.076 | 0.079 | 0.082 | 0.085 |
| 56 | 0.065 | 0.067 | 0.070 | 0.073 | 0.076 | 0.079 | 0.082 | 0.085 |
| 57 | 0.065 | 0.068 | 0.071 | 0.074 | 0.077 | 0.080 | 0.083 | 0.086 |
| 58 | 0.066 | 0.069 | 0.071 | 0.074 | 0.077 | 0.080 | 0.083 | 0.086 |
| 59 | 0.067 | 0.069 | 0.072 | 0.075 | 0.078 | 0.081 | 0.084 | 0.087 |
| 60 | 0.067 | 0.070 | 0.073 | 0.076 | 0.079 | 0.082 | 0.085 | 0.088 |
| 61 | 0.068 | 0.071 | 0.074 | 0.077 | 0.079 | 0.082 | 0.086 | 0.089 |
| 62 | 0.069 | 0.072 | 0.074 | 0.077 | 0.080 | 0.083 | 0.086 | 0.089 |
| 63 | 0.070 | 0.073 | 0.075 | 0.078 | 0.081 | 0.084 | 0.087 | 0.090 |
| 64 | 0.071 | 0.074 | 0.076 | 0.079 | 0.082 | 0.085 | 0.088 | 0.091 |
| 65 | 0.072 | 0.075 | 0.077 | 0.080 | 0.083 | 0.086 | 0.089 | 0.093 |
| 66 | 0.073 | 0.076 | 0.079 | 0.082 | 0.085 | 0.088 | 0.091 | 0.094 |
| 67 | 0.074 | 0.077 | 0.080 | 0.083 | 0.086 | 0.089 | 0.092 | 0.095 |
| 68 | 0.076 | 0.078 | 0.081 | 0.084 | 0.087 | 0.090 | 0.093 | 0.096 |
| 69 | 0.077 | 0.080 | 0.083 | 0.086 | 0.089 | 0.092 | 0.095 | 0.098 |
| 70 | 0.079 | 0.082 | 0.085 | 0.088 | 0.091 | 0.094 | 0.097 | 0.100 |
| 71 | 0.081 | 0.084 | 0.087 | 0.089 | 0.092 | 0.095 | 0.098 | 0.102 |
| 72 | 0.083 | 0.086 | 0.089 | 0.092 | 0.095 | 0.098 | 0.101 | 0.104 |
| 73 | 0.085 | 0.088 | 0.091 | 0.094 | 0.097 | 0.100 | 0.103 | 0.106 |
| 74 | 0.088 | 0.091 | 0.094 | 0.097 | 0.099 | 0.102 | 0.105 | 0.108 |
| 75 | 0.091 | 0.094 | 0.097 | 0.100 | 0.102 | 0.105 | 0.108 | 0.111 |
| 76 | 0.094 | 0.097 | 0.100 | 0.103 | 0.106 | 0.109 | 0.112 | 0.114 |
| 77 | 0.098 | 0.101 | 0.104 | 0.107 | 0.110 | 0.112 | 0.115 | 0.118 |
| 78 | 0.103 | 0.106 | 0.109 | 0.111 | 0.114 | 0.117 | 0.120 | 0.123 |
| 79 | 0.108 | 0.111 | 0.114 | 0.117 | 0.119 | 0.122 | 0.125 | 0.128 |
| 80 | 0.115 | 0.117 | 0.120 | 0.123 | 0.125 | 0.128 | 0.131 | 0.133 |
| 81 | 0.121 | 0.124 | 0.127 | 0.129 | 0.132 | 0.135 | 0.137 | 0.140 |
| 82 | 0.129 | 0.132 | 0.134 | 0.137 | 0.139 | 0.142 | 0.145 | 0.147 |
| 83 | 0.138 | 0.140 | 0.143 | 0.146 | 0.148 | 0.151 | 0.154 | 0.156 |
| 84 | 0.148 | 0.151 | 0.153 | 0.156 | 0.159 | 0.161 | 0.164 | 0.167 |
| 85 | 0.160 | 0.163 | 0.165 | 0.168 | 0.171 | 0.173 | 0.176 | 0.179 |
| 86 | 0.173 | 0.176 | 0.179 | 0.182 | 0.184 | 0.187 | 0.190 | 0.193 |
| 87 | 0.189 | 0.191 | 0.194 | 0.197 | 0.200 | 0.200 | 0.200 | 0.200 |
| 88 or over | 0.200 | 0.200 | 0.200 | 0.200 | 0.200 | 0.200 | 0.200 | 0.200 |
| Age | 10.00% | 10.50% | 11.00 % | 11.50% | 12.00% | 12.50% | 13.00% | 13.50% |
|---|---|---|---|---|---|---|---|---|
| under 55 | 0.084 | 0.087 | 0.090 | 0.093 | 0.097 | 0.100 | 0.103 | 0.107 |
| 55 | 0.088 | 0.091 | 0.094 | 0.097 | 0.101 | 0.104 | 0.107 | 0.111 |
| 56 | 0.088 | 0.091 | 0.095 | 0.098 | 0.101 | 0.104 | 0.108 | 0.111 |
| 57 | 0.089 | 0.092 | 0.095 | 0.098 | 0.102 | 0.105 | 0.108 | 0.112 |
| 58 | 0.090 | 0.093 | 0.096 | 0.099 | 0.102 | 0.106 | 0.109 | 0.112 |
| 59 | 0.090 | 0.093 | 0.097 | 0.100 | 0.103 | 0.106 | 0.110 | 0.113 |
| 60 | 0.091 | 0.094 | 0.097 | 0.101 | 0.104 | 0.107 | 0.110 | 0.114 |
| 61 | 0.092 | 0.095 | 0.098 | 0.101 | 0.105 | 0.108 | 0.111 | 0.115 |
| 62 | 0.093 | 0.096 | 0.099 | 0.102 | 0.105 | 0.109 | 0.112 | 0.115 |
| 63 | 0.094 | 0.097 | 0.100 | 0.103 | 0.106 | 0.110 | 0.113 | 0.116 |
| 64 | 0.095 | 0.098 | 0.101 | 0.104 | 0.107 | 0.111 | 0.114 | 0.117 |
| 65 | 0.096 | 0.099 | 0.102 | 0.105 | 0.108 | 0.112 | 0.115 | 0.118 |
| 66 | 0.097 | 0.100 | 0.103 | 0.106 | 0.110 | 0.113 | 0.116 | 0.119 |
| 67 | 0.098 | 0.101 | 0.104 | 0.108 | 0.111 | 0.114 | 0.117 | 0.121 |
| 68 | 0.100 | 0.103 | 0.106 | 0.109 | 0.112 | 0.115 | 0.119 | 0.122 |
| 69 | 0.101 | 0.104 | 0.107 | 0.111 | 0.114 | 0.117 | 0.120 | 0.123 |
| 70 | 0.103 | 0.106 | 0.109 | 0.112 | 0.115 | 0.119 | 0.122 | 0.125 |
| 71 | 0.105 | 0.108 | 0.111 | 0.114 | 0.117 | 0.120 | 0.123 | 0.127 |
| 72 | 0.107 | 0.110 | 0.113 | 0.116 | 0.119 | 0.122 | 0.125 | 0.129 |
| 73 | 0.109 | 0.112 | 0.115 | 0.118 | 0.121 | 0.124 | 0.127 | 0.131 |
| 74 | 0.111 | 0.114 | 0.117 | 0.120 | 0.124 | 0.127 | 0.130 | 0.133 |
| 75 | 0.114 | 0.117 | 0.120 | 0.123 | 0.126 | 0.129 | 0.132 | 0.135 |
| 76 | 0.117 | 0.120 | 0.123 | 0.126 | 0.129 | 0.132 | 0.135 | 0.138 |
| 77 | 0.121 | 0.124 | 0.127 | 0.130 | 0.133 | 0.136 | 0.139 | 0.142 |
| 78 | 0.126 | 0.128 | 0.131 | 0.134 | 0.137 | 0.140 | 0.143 | 0.146 |
| 79 | 0.131 | 0.134 | 0.137 | 0.139 | 0.142 | 0.145 | 0.148 | 0.151 |
| 80 | 0.136 | 0.139 | 0.142 | 0.144 | 0.147 | 0.150 | 0.153 | 0.155 |
| 81 | 0.143 | 0.145 | 0.148 | 0.151 | 0.153 | 0.156 | 0.159 | 0.161 |
| 82 | 0.150 | 0.153 | 0.155 | 0.158 | 0.161 | 0.163 | 0.166 | 0.169 |
| 83 | 0.159 | 0.161 | 0.164 | 0.167 | 0.169 | 0.172 | 0.175 | 0.177 |
| 84 | 0.169 | 0.172 | 0.174 | 0.177 | 0.180 | 0.182 | 0.185 | 0.187 |
| 85 | 0.181 | 0.184 | 0.187 | 0.189 | 0.192 | 0.194 | 0.197 | 0.200 |
| 86 | 0.195 | 0.198 | 0.200 | 0.200 | 0.200 | 0.200 | 0.200 | 0.200 |
| 87 | 0.200 | 0.200 | 0.200 | 0.200 | 0.200 | 0.200 | 0.200 | 0.200 |
| 88 or over | 0.200 | 0.200 | 0.200 | 0.200 | 0.200 | 0.200 | 0.200 | 0.200 |
Note: this regulation replaces B.C. Regs. 494/92 and 465/92
[Provisions of the Pension Benefits Standards Act, R.S.B.C. 1996, c. 352, relevant to the enactment of this regulation: section 74]
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