Bill C-85

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First Reading

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	18. (1) Subsection 29(4) of the English version of the Act is replaced by the following:
Adoption of new plan	(4) If employer contributions to a pension plan are suspended or cease as a result of the adoption of a new plan, the original plan is deemed not to have been terminated, and the pension benefits and other benefits provided under the original plan are deemed to be benefits provided under the new plan in respect of any period of membership before the adoption of the new plan, whether or not the assets and liabilities of the original plan have been consolidated with those of the new plan.
	(2) Subsection 29(5) of the Act is replaced by the following:
Notice of voluntary termination or winding-up	(5) An administrator who intends to terminate the whole or part of a pension plan or wind up a pension plan shall notify the Superintendent in writing of that intention at least sixty days before the date of the intended termination or winding-up.
	19. The Act is amended by adding the following after section 29:
Appointment of a new administrator	29.1 (1) If, on the termination in whole or in part of a pension plan, the administrator is insolvent or unable to act or the Superintendent is of the opinion that it is in the best interests of the members or former members, or any other persons entitled to pension benefits or refunds under the plan, that the administrator of the plan be removed, the Superintendent may remove the administrator and appoint a replacement administrator. A replacement administrator may recover their reasonable costs from the pension fund.
Notification	(2) The Superintendent shall, as soon as possible in the circumstances, notify a replaced administrator of their removal.
Effect of replacement	(3) The replacement administrator is seized of the pension fund as of the date of the notification under subsection (2).
Notice	(4) After receiving approval of the report under subsection 29(10), the replacement administrator shall give notice to the members, former members and any other persons who are entitled to pension benefits or refunds under the pension plan of the replacement administrator's intention to distribute the assets of the plan in accordance with the report.
Publication	(5) The replacement administrator shall publish the notice in the Canada Gazette and, except as otherwise directed by the Superintendent, once a week for two consecutive weeks in one or more newspapers in general circulation in each province.
Subrogation	(6) The members, former members and any other persons who were entitled to pension benefits or refunds under the pension plan immediately before the appointment of the replacement administrator are subrogated to those rights and claims of the replacement administrator that the replacement administrator has elected in writing not to pursue.
Discharge	(7) On distribution of the assets in accordance with this Act and the regulations, the Superintendent may discharge the replacement administrator.
	20. Section 32 of the Act is replaced by the following:
Notice of objection	32. (1) An administrator who is notified under subsection 10(4) or section 11.1 , may, within sixty days after the day the notification is given , serve on the Superintendent a notice of objection in the prescribed form and manner , setting out the reasons for the objection and all facts relevant to it .
Reconsidera- tion by Superinten- dent	(2) On receipt of a notice of objection, the Superintendent shall immediately reconsider the refusal or the revocation and cancellation, as the case may be, and vary or confirm the action taken, and shall immediately notify the administrator of the decision.
	21. Paragraph 33(5)(a) of the Act is replaced by the following:
	(a) by dismissing it and ordering the appellant to ensure the compliance of the pension plan to which the appeal relates with this Act and the regulations ; or
	22. The Act is amended by adding the following after section 33:
Application to Federal Court	33.1 (1) If an administrator, employer or other person has omitted to do any thing under this Act that is required to be done by them or on their part, or contravenes a direction of the Superintendent or a provision of this Act or the regulations, the Superintendent may, in addition to any other action that the Superintendent may take, apply to the Federal Court for an order requiring the administrator, employer or other person to cease the contravention or do any thing that is required to be done, and on such application the Federal Court may so order and make any other order it thinks fit.
Appeal	(2) An appeal from an order made under subsection (1) lies in the same manner as an appeal from any other order of the Federal Court.
	23. Section 34 of the Act is replaced by the following:
Inspection	34. (1) The Superintendent or any person authorized in writing by the Superintendent for any purpose relating to the administration of this Act may, at any reasonable time,
	(a) inspect any books, records or other documents, regardless of their physical form or characteristics , relating to a pension plan or to any securities, obligations or other investments in which pension fund moneys are invested; and
	(b) require the administrator of a pension plan to furnish such information and in such form as the Superintendent deems necessary for the purpose of ascertaining whether or not the provisions of this Act or the regulations have been or are being complied with.
Powers of Superinten- dent	(2) The Superintendent has the same powers as those conferred on commissioners under Part II of the Inquiries Act with respect to the taking of evidence, and may delegate those powers.
Payment of expenses	(3) The fees and expenses of persons appointed on a temporary basis from outside the Public Service for the purposes of an inspection under paragraph (1)(a), including their fees and expenses related to preparing a report to the Superintendent relating to that inspection, are payable by the pension fund on being approved by the Superintendent.
	24. The Act is amended by adding the following after section 37:
Not statutory instruments	37.1 A direction issued under this Act by the Superintendent with respect to a particular pension plan is not a statutory instrument for the purposes of the Statutory Instruments Act.
	25. (1) The portion of subsection 38(1) of the Act after paragraph (d) is replaced by the following:
	is guilty of an offence and liable on summary conviction to a fine not exceeding one hundred thousand dollars or to imprisonment for a term not exceeding twelve months, or to both.
	(2) Subsection 38(2) of the Act is replaced by the following:
Remittance of amount owing	(2) If an employer is found guilty of not remitting all amounts to a pension fund, the court may, in addition to imposing a penalty under subsection (1), order the employer to remit to the pension fund all amounts owing with interest.
	(3) Subsection 38(6) of the Act is replaced by the following:
Informations and complaints	(6) An information or complaint under this section may be laid or made by any officer of the Office of the Superintendent of Financial Institutions , any member of the Royal Canadian Mounted Police or any person authorized in writing by the Minister.
	26. (1) Paragraph 39(b) of the Act is replaced by the following:
	(a.1) respecting simplified pension plans;
	(b) respecting the fees that may be charged for the registration of pension plans and for the supervision, including inspection, of registered pension plans;
	(2) Subsection 39 of the Act is amended by adding the following after paragraph (h):
	(h.1) respecting refunds of surplus assets and arbitrations referred to in section 9.2;
	(3) Subsection 39 of the Act is amended by adding the following after paragraph (j):
	(j.1) respecting the manner in which the administrator of a pension plan shall deal with complaints or inquiries from members of the pension plan, former members and any other persons entitled to pension benefits or refunds under the plan;
R.S., c. 18 (3rd Supp.), Part I; 1991, cc. 24, 45, 46, 47; 1992, cc. 1, 56; 1994, c. 26; 1996, cc. 6, 21	office of the superintendent of financial institutions act
	27. *Section 3 of the Office of the Superintendent of Financial Institutions Act* is amended by adding the following in alphabetical order:**
``pension plan'' « régime de pension »	``pension plan'' has the same meaning as in subsection 2(1) of the Pension Benefits Standards Act, 1985;
1996, c. 6, s. 105	28. Section 3.1 of the Act is replaced by the following:
To ensure regulation of institutions and pension plans	3.1 The purpose of this Act is to ensure that financial institutions and pension plans are regulated by an office of the Government of Canada so as to contribute to public confidence in the Canadian financial system.
1996, c. 6, s. 106	29. (1) The portion of subsection 4(2) of the Act before paragraph (a) is replaced by the following:
Objects of Office - financial institutions	(2) The objects of the Office, in respect of financial institutions , are
1996, c. 6, s. 106	(2) Subsection 4(3) of the Act is replaced by the following:
Objects of Office - pension plans	(2.1) The objects of the Office, in respect of pension plans, are
	(a) to supervise pension plans in order to determine whether they meet the minimum funding requirements and are complying with the other requirements of the Pension Benefits Standards Act, 1985 and its regulations and supervisory requirements under that legislation;
	(b) to promptly advise the administrator of a pension plan in the event that the plan is not meeting the minimum funding requirements or is not complying with other requirements of the Pension Benefits Standards Act, 1985 and its regulations or supervisory requirements under that legislation and, in such a case, to take, or require the administrator to take, the necessary corrective measures or series of measures to deal with the situation in an expeditious manner; and
	(c) to promote the adoption by administrators of pension plans of policies and procedures designed to control and manage risk.
Protection of depositors, etc.	(3) In pursuing its objects, the Office shall strive
	(a) in respect of financial institutions , to protect the rights and interests of depositors, policyholders and creditors of financial institutions, having due regard to the need to allow financial institutions to compete effectively and take reasonable risks; and
	(b) in respect of pension plans, to protect the rights and interests of members of pension plans, former members and any other persons who are entitled to pension benefits or refunds under pension plans .
	(3) Section 4 of the Act is amended by adding the following after subsection (4):
Factors affecting pension plans	(5) Notwithstanding that the regulation and supervision of pension plans by the Office and the Superintendent can reduce the risk that pension plans will fail to pay the expected benefits, regulation and supervision must be carried out having regard to the fact that administrators of pension plans are responsible for the management of the pension plans and that pension plans can experience financial and funding difficulties that can result in the reduction of those benefits.
	CONDITIONAL AMENDMENT
Bill C-25	30. If Bill C-25, introduced in the second session of the thirty-fifth Parliament and entitled An Act respecting regulations and other documents, including the review, registration, publication and parliamentary scrutiny of regulations and other documents, and to make consequential and related amendments to other Acts, is assented to, then, on the later of the coming into force of section 27 of that Act and section 24 of this Act, section 37.1 of the Pension Benefits Standards Act, 1985 is replaced by the following:
Not regulations	37.1 A direction issued under this Act by the Superintendent with respect to a particular pension plan is not a regulation within the meaning of subsection 2(1) of the Regulations Act.
	COMING INTO FORCE
Coming into force	31. This Act or any of its provisions, or any provision of any Act as enacted or amended by this Act, comes into force on a day or days to be fixed by order of the Governor in Council.

Bill C-85

CONDITIONAL AMENDMENT

COMING INTO FORCE