Legal Developments – Western Canada

  • October 31, 2016
  • Glorie Alfred

Alberta

1. Extension for completion of governance policy and extension for completion of initial and triennial (3-year) plan assessment

Under Alberta’s new pension legislation, which came into force on September 1, 2014, each registered pension plan is now required to establish a governance policy, and to complete a first plan assessment of the plan’s administration. Following the completion of the initial assessment, a pension plan is required to complete an assessment every three years.

On July 29, 2016, Alberta’s pension regulator, the Alberta Treasury Board and Finance, announced that the Superintendent of Pensions has extended the deadlines for completion of governance policies and plan assessments.

Governance Policy

Pension plans administrators were to have a governance policy in place by December 31, 2015. The Superintendent of Pensions extended the deadline for plan administrators to establish a governance policy to December 31, 2016.

Plan Assessment

Pension plan administrators are required to complete the initial plan assessment within one year after the end of the second fiscal year of the plan following the effective date of the new legislation (by September 1, 2014). This means that a pension plan with a December 31 fiscal year end would be required to complete the initial assessment by December 31, 2016.

The Superintendent of Pensions has extended the timeline for the completion of the initial assessment by one year. Accordingly, a pension plan with a fiscal year end of December 31 is now required to complete the initial assessment by December 31, 2017. This plan would be required to complete the triennial assessment by December 31, 2020.

Visit the ATBF’s website to access the full text of this announcement.

British Columbia

1. Amendment to the Pension Benefits Standards Regulation

On January 29, 2016 the Pension Benefits Standards Regulation B.C. Reg. 71/2015 was amended by B.C. Reg. 9/2016. The amending regulation makes changes to four prescribed spousal waiver forms under Reg. 71/2015, corrects typographical errors and makes further consequential amendments to BC Pension Benefits Standards Act and the Pension Benefits Standards Regulation to reflect these changes.

2. Legislation respecting pooled registered pension plans is proclaimed into force

On May 2, B.C. Reg. 101/2016 under the Pooled Registered Pension Plans Act was made. B.C. Reg. 101/2016 proclaims the Pooled Registered Pension Plans Act into force, and enacts the Pooled Registered Pension Plans Regulation effective May 4, 2016.

3. British Columbia enters the 2016 Agreement Respecting Multi-jurisdictional Pension Plans

On June 2, 2016, the Financial Institutions Commission of British Columbia announced that British Columbia has entered into the 2016 Agreement Respecting Multi-Jurisdictional Pension Plans. The regulator has also released an information bulletin regarding the scope and application of the agreement.

4. Clarification of plan assessment timeline requirement under the Pension Benefits Standards Act

Under British Columbia’s new pension legislation, in force on September 30, 2015, administrators of all registered plans must assess the administration of the plan at a date not later than the last day of the fiscal year of the plan after the fiscal year of the plan in which September 30, 2015 falls, and then every three years thereafter.

In June 2016, the British Columbia pension regulator issued Bulletin PENS 16-005 which clarifies the timelines for a pension plan administrator to complete the plan assessments.

The Bulletin states that for a plan year with a fiscal year end of December 31, 2015, the first assessment must be performed with an effective date no later than December 31, 2016 and the written assessment completed by December 31, 2017.

Glorie Alfred is a legal consultant with Morneau Shepell

Saskatchewan

1. The Pension Benefits Regulations are amended in respect of pooled registered pension plans

By Order in Council 138/2016 the Pension Benefits (Pooled Registered Pension Plans) Amendment Regulations, 2016 were filed on February 25, 2016. This regulation amends the Pension Benefits Regulations, 1993 to allow members to consolidate assets held under the Pooled Registered Pension Plans (Saskatchewan) Act with assets held under the Pension Benefits Act.

A summary of Order in Council 138/2016 is available on the website.

2. Regulations respecting pooled registered pension plans are filed

By Order in Council 139/2016, the Pooled Registered Pension Plans (Saskatchewan) Regulations were filed on February 25, 2016. The Regulation will come into force upon the proclamation of the Pooled Registered Pension Plans (Saskatchewan) Act.

A summary of Order in Council 139/2016 is available on the website.

3. Legislation respecting pooled registered pension plans is proclaimed into force

By Order in Council 164/2016, the Saskatchewan government proclaimed The Pooled Registered Pension Plans (Saskatchewan) Act into force on May 1, 2016. This proclamation brought into effect The Pooled Registered Pension Plans (Saskatchewan) Regulations and amendments to The Pension Benefits Act, 1992 and The Pension Benefits Regulations, 1993.

4. Saskatchewan enters 2016 Agreement Respecting Multi-Jurisdictional Pension Plans

On May 11, 2016, by Order in Council 183/2016, the Saskatchewan government approved the terms of the 2016 Agreement Respecting Multi-jurisdictional Pension Plans. This agreement became effective on July 1, 2016.  Currently, the other participants to the agreement are the jurisdictions of British Columbia, Nova Scotia, Ontario and Quebec.

5. Saskatchewan enters Multilateral Agreement Respecting Pooled Registered Pension Plans and Voluntary Retirement Savings Plans

On May 18, 2016, by Order in Council 202/2016, the Saskatchewan government approved the provisions of the Multilateral Agreement Respecting Pooled Registered Pension Plans and Voluntary Retirement Savings Plans. The agreement became effective on June 16, 2016.  Currently, the other participants to the agreement are the jurisdictions of Canada, British Columbia, Nova Scotia, and Quebec.

6. Regulation amending contribution rate under the Municipal Employees’ Pension Regulations is filed

On July 28, 2016, by Order in Council 343/2016, the Saskatchewan government filed the Municipal Employees’ Pension (Contribution Rates) Amendment Regulations, 2016. This regulation amends the Municipal Employees’ Pension Regulations to continue the contribution rate for designated police officers and firefighters at 11.35 per cent of pay until December 31, 2008.

Manitoba

1. Regulation amending the definition of “plan” under the Manitoba Regulation 175/2015, Solvency Exemption for Specified Non-Profit Sector Pension Plans

On February 12, 2016, the Manitoba government registered the Regulation 31/2016, the Solvency Exemption for Specified Non-Profit Sector Pension Plans Regulation, amendment.  This regulation affects The Solvency Exemption for Specified Non-Profit Sector Pension Plans Regulation, Manitoba Regulation 175/2015 by amending the definition of “plan” to include “the Pension Plan for the Employees of the Manitoba Museum.”

Glorie Alfred is a legal consultant with Morneau Shepell