Bill S-3
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FUNDING AND SURPLUS |
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8. (1) Paragraph 9(2)(b) of the Act is
replaced by the following:
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(2) Subsections 9(4) to (6) of the Act are
repealed.
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9. The Act is amended by adding the
following after section 9:
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| Notification
of remittance
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9.1 (1) The administrator of a pension plan
shall notify in writing the holder or custodian
of the pension fund of all amounts that are to
be remitted to the pension fund and the
expected date of the remittance.
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| Effect of late
remittance
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(2) If a payment to a pension fund is not
remitted within thirty days after the date
referred to in subsection (1),
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| Refund of
surplus to the
employer
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9.2 (1) If an actuarial report filed under
subsection 12(3) indicates that there is a
surplus, no part of that surplus may be
refunded to the employer unless
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| Consent to
surplus
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(2) In deciding whether to consent to a
refund, the Superintendent shall recognize the
claim of the employer to the surplus, or part of
it, established under this section.
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| Claim to
surplus
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(3) An employer has a claim to the surplus,
or part of it, if, after being notified of the
employer's proposal for a refund of that
surplus or part of it, at least two thirds of the
persons in each of the following categories
notify the employer that they consent to the
proposal:
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| Submission to
arbitration
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(4) Subject to subsection (5), if more than
one half but fewer than two thirds of the
persons in each of the categories referred to in
subsection (2) consented to the proposal, the
employer may, or if the pension plan is
terminated shall, submit the proposal to
arbitration. The employer shall notify the
Superintendent and the persons in those
categories if the proposal is to be submitted to
arbitration.
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| Winding up of
employer
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(5) The employer's claim to the surplus, or
part of it, shall be submitted to arbitration
within eighteen months after the termination
of the pension plan, or any further period
specified by the Superintendent, if
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The employer shall notify the Superintendent
and the persons in the categories referred to in
subsection (3) that the claim will be submitted
to arbitration.
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| Deemed
agreement
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(6) If a proposal or claim is submitted to
arbitration, the employer and all interested
persons are deemed to have agreed to have the
employer's claim determined by the
arbitration.
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| Choice of
arbitrator
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(7) The arbitrator shall be chosen by the
employer and the persons in the categories set
out in subsection (2). If they cannot agree on
an arbitrator within the prescribed period, the
Superintendent shall choose the arbitrator.
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| Arbitration
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(8) The arbitrator is not bound by any legal
or technical rules of evidence in conducting
any matter that comes before the arbitrator,
and shall deal with it as informally and
expeditiously as the circumstances and
considerations of fairness and natural justice
permit.
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| Retention of
experts
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(9) An arbitrator may retain any experts that
the arbitrator considers necessary.
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| Costs of
arbitration
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(10) Subject to the provisions of the pension
plan, the parties to an arbitration shall pay its
costs in the amount, subject to the approval of
the Superintendent, and in the proportion that
the arbitrator determines.
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| Issuance of
decision
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(11) The arbitrator shall issue a written
decision with reasons, file them with the
Superintendent within ten days after issuing
them and make them available for inspection
by any interested person.
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| Scheme of
division
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(12) In respect of a claim submitted to
arbitration under subsection (5), the arbitrator
may impose a scheme of division of the
surplus, or of part of it, between the parties to
the arbitration.
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| Decision
binding
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(13) An arbitrator's decision is final and
binding on the parties and on any other person
affected by it.
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| Notification to
unions
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(14) All notifications to unionized members
under this section must also be made to the
executive of their union.
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| Union
represents
members
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(15) Unless otherwise provided by the
relevant collective agreement, the executive
of a union shall represent its members, other
than former members of the plan, for the
purposes of this section.
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10. Sections 10 and 11 of the Act are
replaced by the following:
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| Duty of
administrator
to file
documents
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10. (1) The administrator of a pension plan
shall file with the Superintendent, within sixty
days after the plan is established,
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| Registration
of pension
plan
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(2) Subject to subsection (3), the
Superintendent shall register a pension plan
and issue a certificate of registration in respect
of the plan if the administrator has filed the
documents under subsection (1).
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| Refusal to
register
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(3) The Superintendent may refuse to
register a pension plan if the plan does not
comply with this Act or the regulations.
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| Notification
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(4) If the Superintendent refuses to register
a pension plan, the Superintendent shall notify
the administrator of the particulars of the
non-compliance.
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| Adminis- tration of plan prohibited
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(5) An administrator shall not administer a
pension plan before complying with
subsection (1) and shall, while the plan
remains in force, ensure that it complies with
this Act and the regulations.
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| Treatment of
surplus
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(6) Every pension plan that is filed for
registration must provide for the use of surplus
during the continuation of the plan and on its
termination.
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| Filing of
amendments
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10.1 (1) The administrator of a pension plan
shall file with the Superintendent, within sixty
days after making an amendment to any
document referred to in subsection 10(1), a
copy of the amendment and a declaration (in
the form, if any, specified by the
Superintendent) signed by the administrator
that the plan as amended complies with this
Act and the regulations.
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| Void
amendments
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(2) Unless the Superintendent authorizes
the amendment, an amendment is void if
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Transfer of Funds |
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| No transfer
without
permission
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10.2 Subject to section 26, the administrator
of a pension plan shall not transfer or permit
the transfer of any part of the assets of the
pension fund to another pension fund,
including a pension fund to which this Act
does not apply, without the Superintendent's
permission.
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Directions of Compliance |
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| Superinten- dent's directions to adminis- trators
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11. (1) If, in the opinion of the
Superintendent, an administrator, an
employer or any person is, in respect of a
pension plan, committing or about to commit
an act, or pursuing or about to pursue any
course of conduct, that is contrary to safe and
sound financial or business practices, the
Superintendent may direct the administrator,
employer or other person to
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| Directions in
the case of
non- compliance
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(2) If, in the opinion of the Superintendent,
a pension plan does not comply with this Act
or the regulations or is not being administered
in accordance with this Act, the regulations or
the plan, the Superintendent may direct the
administrator, the employer or any person to
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| Opportunity
for represen- tations
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(3) Subject to subsection (4), no direction
shall be issued under subsection (1) or (2)
unless the Superintendent gives the
administrator, employer or other person a
reasonable opportunity to make written
representations.
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| Temporary
direction
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(4) If, in the opinion of the Superintendent,
the length of time required for representations
to be made under subsection (3) might be
prejudicial to the interests of the members,
former members or any other persons entitled
to pension benefits or refunds under the
pension plan, the Superintendent may make a
temporary direction with respect to the
matters referred to in subsection (1) or (2) that
has effect for a period of not more than fifteen
days.
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| Continued
effect
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(5) A temporary direction under subsection
(4) continues to have effect after the expiry of
the fifteen day period referred to in that
subsection if no representations are made to
the Superintendent within that period or, if
representations have been made, the
Superintendent notifies the administrator,
employer or other person that the
Superintendent is not satisfied that there are
sufficient grounds for revoking the direction.
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| Revocation of
registration
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11.1 The Superintendent may revoke the
registration and cancel the certificate of
registration in respect of a pension plan if the
administrator of the plan does not comply with
a direction under section 11 within sixty days,
or such longer period as the Superintendent
may determine, after being informed by the
Superintendent of the failure to comply. The
Superintendent shall notify the administrator
of the measures taken, including the date of
the revocation and cancellation.
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11. The heading before section 12 of the
Act is replaced by the following:
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GENERAL REQUIREMENTS |
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Duty to Provide Information |
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12. Section 12 of the Act is amended by
adding the following after subsection (3):
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| Actuarial
reports and
financial
statements
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(3.1) Except as otherwise specified by the
Superintendent,
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13. Section 13 of the Act and the heading
before it are replaced by the following:
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| Information to
members
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13. The administrator of a pension plan
shall provide to the plan members, former
members and any other persons entitled to
pension benefits or refunds under the plan, at
the time and in the manner specified by the
Superintendent, any information that the
Superintendent specifies.
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14. (1) The portion of subsection 18(1) of
the Act before paragraph (a) is replaced by
the following:
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| Provisions
respecting
locking-in
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18. (1) Subject to subsections 23(5) and
25(4), a pension plan shall provide
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(2) Paragraph 18(2)(c) of the Act is
replaced by the following:
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15. (1) Subsection 23(1) of the Act is
replaced by the following:
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| If member
dies before
eligible for
early
retirement
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23. (1) If a member or former member of a
pension plan who is entitled to a deferred
pension benefit pursuant to subsection 17(1)
(or, in the case of a member, would be so
entitled if the member ceased membership in
the plan) dies before becoming eligible to
receive an immediate pension benefit in
accordance with subsection 16(2), the
surviving spouse, if any, is entitled to that
portion of the pension benefit credit,
calculated in accordance with section 21, to
which the member or former member would
have been entitled on the day of death if the
member or former member had terminated
employment on that day and had not died, that
is attributable to the member's or former
member's membership in the plan after
December 31, 1986.
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(2) The portion of subsection 23(3) of the
Act before paragraph (a) is replaced by the
following:
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| If member
eligible for
retirement
dies
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(3) A member or former member of a
pension plan who is entitled to a deferred
pension benefit pursuant to subsection 17(1)
(or, in the case of a member, would be so
entitled if the member ceased membership in
the plan) and dies before commencement of
payment of that pension benefit but after
becoming eligible to receive an immediate
pension benefit in accordance with subsection
16(2) is deemed
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(3) Subsection 23(4) of the Act is replaced
by the following:
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| Eligibility of
spouse
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(4) The surviving spouse of the member or
former member described in subsection (3) is
entitled to the pension benefit credit to which
the member or former member would have
been entitled on the day of death if the member
or former member had terminated
employment on that day and had not died, if
the credit in whole or in part results from a
defined contribution plan and is attributable to
the member's or former member's
membership in the plan after December 31,
1986.
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| Surrender of
pension
benefit or
pension
benefit credit
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(5) A pension plan may provide that a
surviving spouse may, after the death of a
member or former member, surrender, in
writing, the pension benefit or pension benefit
credit to which the spouse is entitled under this
section and designate a beneficiary who is a
dependant, within the meaning of subsection
8500(1) of the Income Tax Regulations, of the
spouse, member or former member.
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| Effect of
group life
insurance plan
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(6) Subject to subsection (7), a defined
benefit plan may provide for the reduction of
the benefit payable under any of subsections
(1) to (3) by an amount equal to that part of the
group life insurance payment that can be
considered to have been paid by employer
premiums, calculated in a manner satisfactory
to the Superintendent, if
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