1. New Brunswick – New Proposed Restriction on Communications in Pension Benefits Act
On May 17, 2016, the New Brunswick Government introduced Bill 45, An Act Respecting the Enforcement of Financial and Consumer Services Legislation. Part of the proposed legislation deals with amendments to the Pension Benefits Act. In particular, the proposed section 78.11(1) prohibits “false, misleading or deceptive statements in any advertisement, circular, pamphlet or similar material prepared or used in respect of a regulated activity.”
“Regulated activity” would be defined as “any activity governed by this Act or the regulations.” The new legislation includes investigation and compliance processes and powers. The proposed provision would be unique in Canadian pension legislation.
2. Nova Scotia – PRPP Regulations now in force
The new Pooled Registered Pension Plans Act and Regulations became effective on May 4, 2016. The Act and Regulations largely adopt the federal Act and Regulations. This is similar to what the legislatures in British Columbia, Ontario, and Saskatchewan have done. The main differences between the Nova Scotia and federal Acts are procedural matters regarding withdrawal and transfer of funds and division of assets upon breakdown of a spousal relationship.
Earlier, in December 2015, amendments to the Pooled Registered Pension Plans Act received royal assent, under Bill No. 126. The amendments introduced two new transfer options to the PRPP Act:
- The ability to transfer funds from a PRPP to a prescribed locked-in vehicle, such as a locked-in retirement account; and
- A process for transferring funds as a result of division of assets, for example as the result of a relationship breakdown, from the member’s PRPP account to the spouse’s PRPP, pension plan, locked-in retirement savings arrangement, or life annuity.
On June 15, 2016, Nova Scotia became a signatory to the Multilateral Agreement Respecting Pooled Registered Pension Plans and Voluntary Retirement Savings Plans. Under this agreement, federally licensed administrators are deemed licensed in Nova Scotia. This facilitates the offering of multijurisdictional PRPPs in the province.
Dante Manna is an associate and Level Chan is a partner with Stewart McKelvey in Halifax