Bill S-3

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	(b) the group life insurance plan is one that is approved by the Superintendent for the purposes of this subsection; and
	(c) the group life insurance premiums are paid in whole or in part by the employer.
Limitation	(7) In respect of a reduction referred to in subsection (6),
	(a) the actuarial present value of the reduction may not exceed the amount of the payment to which the surviving spouse is entitled under the group life insurance plan; and
	(b) in the case of a contributory pension plan, the reduction may not reduce the benefit payable to the surviving spouse to an amount less than the aggregate of the member's required contributions together with interest in accordance with section 19.
	16. (1) The portion of subsection 26(1) of the Act before paragraph (a) is replaced by the following:
If member not yet eligible to retire	26. (1) If a member, before becoming eligible to receive an immediate pension benefit pursuant to subsection 16(2), ceases to be a member of a pension plan or dies, the member or the surviving spouse, as the case may be, is entitled
	(2) Paragraph 26(2)(b) of the Act is replaced by the following:
	(b) to transfer the member's pension benefit credit or the surviving spouse's pension benefit credit, whichever is applicable, to a retirement savings plan of the prescribed kind for the member or surviving spouse, as the case may be; or
	(3) Subparagraph 26(3)(b)(ii) of the Act is replaced by the following:
	(ii) transfer it to a retirement savings plan of the prescribed kind for the member or surviving spouse, as the case may be, or
	(4) Section 26 of the Act is amended by adding the following after subsection (4):
Pension plans include	(5) For the purposes of this section, pension plans to which pension benefits may be transferred include
	(a) pension plans that are under provincial jurisdiction; and
	(b) pension plans that are organized and administered to provide pension benefits to employees employed in excepted employment.
	17. (1) Subparagraph 28(1)(b)(iii) of the Act is replaced by the following:
	(iii) the prescribed ratio of the plan or, if there is no prescribed ratio, the funded ratio, if applicable, and
	(2) The portion of paragraph 28(1)(c) of the Act before subparagraph (ii) is replaced by the following:
	(c) that each member and former member of the plan, every other person entitled to pension benefits or refunds under the plan and their spouses may, once in each year of operation of the plan, either personally or by an agent authorized in writing for that purpose,
	(i) examine the documents or information filed with the Superintendent under subsection 10(1) or 10.1(1) or section 12 or any regulations made under paragraph 39(i), and any other prescribed documents, at the Canadian head office of the administrator or at such other place as is agreed to by the administrator and the person requesting to examine the documents, and
	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 the administrator of a pension plan that has been terminated in whole or in part 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.
Reconsiderati on by Superintenden t	(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 before section 34:
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.
Superintenden t may bring actions	33.2 (1) In addition to any other action that the Superintendent may take in respect of a pension plan, the Superintendent may bring against the administrator, employer or any other person any cause of action that a member, former member or any other person entitled to a benefit or refund from the plan could bring.
Retroactivity	(2) Subsection (1) applies in respect of any cause of action regardless of whether it arose before or after the coming into force of this section.
	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 Superintenden t	(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.
	(2) Subsection 38(2) of the Act is replaced by the following:
Punishment	(1.1) A person who commits an offence under subsection (1) is
	(a) in the case of an individual, 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; and
	(b) in the case of a corporation or other body, liable on summary conviction to a fine not exceeding five hundred thousand dollars.
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 (1.1), 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) Section 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) Section 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; 1997, c. 15	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 or 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.

Bill S-3

OFFICE OF THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS ACT