Pension Benefits Act (amended)

BILL NO. 9

(as introduced)

2nd Session, 58th General Assembly
Nova Scotia
50 Elizabeth II, 2001

Government Bill

Pension Benefits Act
(amended)

The Honourable David M. Morse
Minister of Environment and Labour

First Reading: March 27, 2001

(Explanatory Notes)

Second Reading: May 25, 2001

Third Reading: May 30, 2002 (WITH COMMITTEE AMENDMENTS)

Explanatory Notes

Clause 1 amends a number of the definitions contained in the Pension Benefits Act.

Clause 2 repeals a provision that is no longer necessary as a result of the creation of the Halifax Regional Municipality.

Clause 3 gives the Minister the authority to enter into agreements with other provinces with respect to multi-jurisdictional pension plans.

Clause 4 makes the provision of the Act dealing with the administrator of a pension plan similar to other provincial pension legislation.

Clause 5 provides that the administrator of a pension plan shall apply to the Superintendent of Pensions for registration of the pension plan within the prescribed period rather than within sixty days after the pension plan is established.

Clause 6 adds to the matters that must be contained in the documents that create and support a pension plan.

Clause 7 removes the requirement for indexing of deferred pensions. These provisions have never been implemented in the past.

Clause 8 clarifies the Section of the Act that deals with void amendments to a pension plan.

Clause 9 provides that the Superintendent of Pensions will only issue an acknowledgement of an application for registration of a pension plan if the application complies with the Act and the regulations.

Clause 10 clarifies language in Section 24 of the Act.

Clause 11 requires the administrator of a pension plan to administer the plan in accordance with the Act and the regulations even where the plan has not been amended to comply with the Act and the regulations.

Clause 12 provides that no person other than a prescribed person shall be a trustee of a pension plan.

Clause 13 enables members and former members of a pension plan to establish an advisory committee to monitor the administration of the pension plan, make recommendations to the administrator and promote awareness and understanding of the pension plan.

Clause 14 extends the provisions of the Act dealing with dispensing of notice with respect to amendments to a pension plan to amendments to a multi-employer pension plan established pursuant to a collective agreement or a trust agreement.

Clause 15 expands the list of persons entitled to inspect certain documents with respect to a pension plan.

Clause 16 makes changes necessary as a result of the amendments contained in Clause 15.

Clause 17 extends eligibility in a pension plan to persons who have at least seven hundred hours of employment with the employer. At present, the eligibility requirement is earnings related for less than full-time employees.

Clause 18 makes a change that is necessary as a result of the change made in Clause 17.

Clause 19 clarifies the calculation of a deferred pension with respect to employment on or after January 1, 1988.

Clause 20 provides that for the purpose of determining entitlements to a deferred pension, a member of a multi-employer pension plan who terminates employment with a participating employer is deemed not to have terminated employment until the member terminates membership in the pension plan.

Clause 21 provides that the requirement under the Act to hold employee contributions in trust applies in respect of money to be paid to an insurance company that guarantees pension benefits under a pension plan.

Subclauses 22(1) to (6) clarify the application of the Act to former members.

Subclause 22(7) deals with the conversion of optional ancillary contributions to optional ancillary benefits.

Clause 23 provides that where the consent of an employer is an eligibility requirement for entitlement to receive an ancillary benefit and a member of the pension plan has met all other eligibility requirements, the employer is deemed to have given consent.

Clause 24 makes changes that are necessary as a result of the changes made in Clause 22.

Clause 25 removes provisions that are no longer necessary.

Clause 26 clarifies that the provisions of the Act dealing with a joint and survivor pension apply to a deferred life annuity purchased from an insurance company.

Clause 27 clarifies the provision of the Act dealing with the waiver of entitlement to a joint and survivor pension benefit.

Clause 28 clarifies that a death benefit may be paid to a beneficiary directly rather than through the estate.

Clause 29 reduces the number of cases where small pensions must be paid for life.

Clause 30 clarifies the provisions of the Act dealing with a reduction in a pension benefit due to the inclusion of Canada Pension Plan benefits.

Clause 31 permits a refund of optional ancillary contributions to a pension plan.

Clause 32 provides that where a pension plan vests in a period of time shorter than that required by the Act, the pension plan may permit a refund of contributions to a person who terminates employment before the time for vesting required by the Act.

Clause 33 clarifies that an assignment of pension money may be made on marriage breakdown.

Clause 34 provides that in the case of a proposal to wind up only part of a pension plan, the administrator is not required to give written notice to members or other persons entitled to payment from the pension fund if those persons will not be affected by the partial windup.

Clause 35 enables the Superintendent of Pensions to terminate the appointment of an administrator appointed to wind up a pension plan if the Superintendent considers it reasonable to do so.

Clause 36 adds time limitations with respect to the winding up of a pension plan.

Clause 37 clarifies the benefits that must be provided on the winding up of a pension plan. This Clause also exempts multi-employer pension plans from the requirements of Section 79 of the Act.

Clause 38 deals with the distribution of a surplus, if any, on the winding up of a pension plan.

Clause 39 provides that where members of a multi-employer pension plan represented by a trade union become represented by a different trade union and become members of a new pension plan, the assets and liabilities of the old pension plan and the requirement to pay benefits under that plan are transferred to the administrator of the new pension plan.

Clause 40 clarifies that where a new pension plan is established in place of an existing plan, the original plan is deemed not to have been wound up.

Clause 41 reflects a change in terminology required as a result of changes made to the standards of the Canadian Institute of Actuaries.

Clause 42 increases the penalties for a violation of the Act from a maximum of ten thousand dollars to a maximum of twenty-five thousand dollars for an individual or a director or officer of a corporation and from a maximum of twenty-five thousand dollars to a maximum of one hundred thousand dollars for a corporation.

Clause 43 provides that a notice, order or other document is sufficiently served if it is sent by first class mail rather than registered mail.

Clause 44 adds to the regulation-making authority of the Governor in Council.

Clause 45 provides that the Act has effect on and after January 1, 2002.

An Act to Amend Chapter 340
of the Revised Statutes, 1989,
the Pension Benefits Act

Be it enacted by the Governor and Assembly as follows:

1 Section 2 of Chapter 340 of the Revised Statutes, 1989, the Pension Benefits Act, is amended by

(a) adding "optional ancillary contributions or" immediately after "include" in the fourth line of clause (a);

(b) repealing clause (e) and substituting the following clause:

(e) "bridging benefit" means a periodic payment provided under a pension plan to a former member of the pension plan for a temporary period of time after retirement for the purpose of supplementing the former member's pension benefit until the former member is eligible to receive benefits under the Old Age Security Act (Canada) or is either eligible for or commences to receive retirement benefits under the Canada Pension Plan or the Quebec Pension Plan;

(c) adding ", in relation to employment, membership or service," immediately before "means" in the first line of clause (i);

(d) adding immediately after clause (x) the following clauses:

(xa) "optional ancillary benefits" means enhanced benefits under a defined benefit provision in a pension plan that are

(i) elected by a member, former member or spouse of a member or former member, and

(ii) funded either fully or partially through optional ancillary contributions provided by the member;

(xb) "optional ancillary contributions" means contributions made by a member or former member to a pension plan, for conversion to optional ancillary benefits, that are in addition to those contributions required to obtain a pension, and includes interest on the contributions;

(e) adding ", in relation to a multi-employer pension plan," immediately before "means" in the first line of clause (z);

(f) striking out "upon attainment of the normal retirement date" in the sixth line of clause (ab);

(g) striking out "or" immediately after subclause (ae)(ii);

(h) renumbering subclause (ae)(iii) as (iv) and adding immediately after subclause (ae)(ii) the following subclause:

(iii) a plan under which all pension benefits are provided by contributions made by members, or

(i) adding "or both" immediately after "employment" in the last line of clause (ah); and

(j) adding ", in relation to employment," immediately before "includes" in the first line of clause (am).

2 Subsection 4(2) of Chapter 340 is repealed.

3 Chapter 340 is further amended by adding immediately after Section 7 the following Section:

7A (1) In this Section, "multi-jurisdictional pension plan" means a pension plan to which this Act and the regulations apply and to which pension-benefits legislation of one or more prescribed jurisdictions in Canada also applies.

(2) With the approval of the Governor in Council, the Minister may enter into one or more agreements described in subsection (3) with the government of a prescribed jurisdiction in Canada, with a government agency of such a jurisdiction or with another person who has supervisory or regulatory powers under pension-benefits legislation of such a jurisdiction.

(3) An agreement may provide for matters relating to the application of this Act and the regulations to multi-jurisdictional pension plans, the application of pension-benefits legislation of a prescribed jurisdiction in Canada to such pension plans and the supervision and regulation of such pension plans.

(4) Without limiting the generality of subsection (3), an agreement may provide for

(a) matters respecting the administration and enforcement of this Act and the regulations and of the pension-benefits legislation of a prescribed jurisdiction in Canada;

(b) the delegation of any powers and duties of the Superintendent under this Act and the regulations to a person who has supervisory or regulatory powers under pension-benefits legislation of a prescribed jurisdiction;

(c) the delegation to the Superintendent of any powers and duties under pension-benefits legislation of a prescribed jurisdiction of a person who has supervisory or regulatory powers under that legislation.

(5) Where an agreement specifies that the pension-benefits legislation of a prescribed jurisdiction in Canada governs multi-jurisdictional pension plans instead of all or part of this Act and the regulations,

(a) this Act and the regulations cease to apply to the multi-jurisdictional pension plans to the extent specified in the agreement; and

(b) the pension-benefits legislation of the prescribed jurisdiction applies, in lieu of this Act and the regulations, to the multi-jurisdictional pension plans to the extent and in the manner specified in the agreement.

(6) Subsection (5) ceases to apply if the Minister ceases to be a party to the agreement.

(7) An agreement or an amendment to an agreement does not come into effect in the Province until the date specified in the agreement or the amendment, whichever date is later.

(8) The Superintendent shall make a copy of each agreement and any amendments to an agreement available for inspection by the public upon request.

(9) The Superintendent may accept a delegation described in clause (c) of subsection (4).

4 Clause 14(1)(e) of Chapter 340 is repealed and the following clauses substituted:

(e) where the pension plan is a multi-employer pension plan established pursuant to a collective agreement or a trust agreement, a board of trustees appointed pursuant to the pension plan or a trust agreement establishing the pension plan of whom at least one half are representatives of members of the multi-employer pension plan and a majority of such representatives of the members must be Canadian citizens or landed immigrants;

(ea) a person appointed as administrator by the Superintendent pursuant to Section 76;

5 Subsection 15(1) of Chapter 340 is amended by striking out "sixty days after the date on which the pension plan is established" in the second and third lines and substituting "the prescribed period".

6 (1) Subsection 16(1) of Chapter 340 is amended by

(a) adding immediately after clause (d) the following clause:

(da) the requirements for entitlement under the pension plan to any pension benefit or ancillary benefit;

(b) striking out clause (g); and

(ka) the method of allocation of the assets of the pension plan on windup;

(kb) particulars of any predecessor pension plan under which members of the plan may be entitled to pension benefits;

(2) Subsection 16(2) of Chapter 340 is amended by adding "or a trust agreement" immediately after "agreement" in the second and third lines.

7 Subsections 17(4) and (5) of Chapter 340 are repealed.

8 (1) Clause 20(1)(c) of Chapter 340 is repealed and the following clause substituted:

(c) the amount or the commuted value of an ancillary benefit for which a former member has met all eligibility requirements under the pension plan necessary to exercise the right to receive payment of the benefit.

(2) Subsection 20(2) of Chapter 340 is amended by adding "or a trust agreement" immediately after "agreement" in the last line.

9 Section 21 of Chapter 340 is amended by adding "that complies with this Act and the regulations" immediately after "registration" in the last line.

10 (1) Subsection 24(3) of Chapter 340 is amended by striking out "terminates" in the second line and substituting "operates to terminate".

(2) Subsection 24(4) of Chapter 340 is amended by striking out "terminates" in the third line and substituting "operates to terminate".

11 (1) Section 26 of Chapter 340 is amended by adding immediately after subsection (1) the following subsection:

(1A) Subsection (1) applies whether or not the pension plan is amended to comply with this Act and the regulations.

(2) Section 26 of Chapter 340 is further amended by adding immediately after subsection (3) the following subsection:

(4) Subsection (2) does not apply to enable the administrator to administer the pension plan contrary to this Act and the regulations.

12 Section 29 of Chapter 340 is amended by adding immediately after subsection (4) the following subsection:

(4A) No person other than a prescribed person shall be a trustee of a pension fund.

13 Chapter 340 is further amended by adding immediately after Section 30 the following Section:

30A (1) The members and former members of the pension plan, by the decision of a majority of those members participating in a vote, may establish an advisory committee.

(2) Each class of employees that is represented in the pension plan is entitled to appoint at least one representative to the advisory committee established pursuant to subsection (1).

(3) The former members of the pension plan are entitled to appoint one representative to the advisory committee established pursuant to subsection (1).

(4) An advisory committee shall

(a) monitor the administration of the pension plan;

(b) make recommendations to the administrator respecting the administration of the pension plan; and

(c) promote awareness and understanding of the pension plan on the part of members of the pension plan and persons receiving pension benefits under the pension plan.

(5) An advisory committee or its representative has the right to examine the records of the administrator in respect of the administration of the pension plan and the pension fund and to make extracts from and copies of the records, but this subsection does not apply in respect of information as to the service, salary, pension benefits or other personal information related to any specific person without that person's prior consent.

(6) Subsection (1) does not apply

(a) where the pension plan is administered by a pension committee at least one of the members of which is appointed by the members of the pension plan; or

(b) in respect of a multi-employer pension plan established pursuant to a collective agreement.

(7) The administrator of a pension plan shall provide to the advisory committee or its representative such information as is under the control of the administrator and is required by the advisory committee or its representative for the purpose of the committee.

14 (1) Subsection 32(4) of Chapter 340 is amended by adding "or if the amendment is in respect of a multi-employer pension plan established pursuant to a collective agreement or a trust agreement" immediately after "members" in the last line.

(2) Section 32 of Chapter 340 is further amended by adding immediately after subsection (4) the following subsection:

(5) Where a proposed amendment affects members or former members represented by a trade union that is a party to a collective agreement filed as the document that creates or supports a pension plan, the administrator shall transmit to the trade union the written notice referred to in subsection (1).

15 (1) Subsection 35(1) of Chapter 340 is amended by

(a) adding immediately after clause (c) the following clause:

(ca) any other person entitled to pension benefits under the pension plan;

(b) repealing clause (d) and substituting the following clause:

(d) an agent authorized in writing by a person referred to in clause (a), (b), (c), (ca), (f) or (g);

(d) adding immediately after clause (e) the following clauses:

(f) an employer;

(g) a person required to make contributions under a pension plan on behalf of an employer;

(h) any other prescribed person.

(2) Subsection 35(5) of Chapter 340 is amended by striking out "or spouse, or the" in the first line and substituting ", a spouse, another person, an".

16 (1) Subsection 36(1) of Chapter 340 is amended by striking out "subsection (2)" in the first line and substituting "subsection (1) of Section 35 and the administrator".

(2) Subsection 36(2) of Chapter 340 is repealed.

17 (1) Subsection 37(3) of Chapter 340 is amended by

(a) adding "the lesser of" immediately after "with" the second time it appears in the third line; and

(b) adding "or seven hundred hours of employment with the employer" immediately after "pensionable earnings" in the fourth and fifth lines.

(2) Subsection 37(4) of Chapter 340 is repealed and the following subsection substituted:

(4) A multi-employer pension plan may require not more than the lesser of

(a) earnings of not less than thirty-five per cent of the year's maximum pensionable earnings with one or more participating employers; or

(b) seven hundred hours of employment with one or more participating employers,

in each of the two consecutive calendar years immediately before the year in which membership is applied for, or such equivalent basis as is approved by the Superintendent, as a condition precedent to membership in the multi-employer pension plan.

18 Section 38 of Chapter 340 is amended by adding "or is employed for fewer than seven hundred hours in a calendar year" immediately after "year" in the last line.

19 Clause 43(1)(e) of Chapter 340 is amended by striking out ", whether or not the amendment applies in respect of employment before the first day of January, 1988" in the third, fourth and fifth lines.

20 Section 44 of Chapter 340 is amended by adding immediately after subsection (3) the following subsections:

(4) For the purpose of determining entitlements to a deferred pension, a member of a multi-employer pension plan who terminates employment with a participating employer or an employer on whose behalf contributions are made under the pension plan is deemed not to have terminated employment until the member terminates membership in the pension plan.

(5) Where a member of a multi-employer pension plan is represented by a trade union that, in accordance with the Trade Union Act ceases to represent the member, and the member joins a different pension plan, a member is entitled to terminate membership in the first plan.

(6) Subsection (5) does not apply where there is a reciprocal agreement respecting the two pension plans.

21 Section 46 of Chapter 340, as amended by Chapter 27 of the Acts of 1992, is further amended by adding immediately after subsection (6) the following subsection:

(7) Subsections (1) to (6) apply mutatis mutandis in respect of money to be paid to an insurance company that guarantees pension benefits under a pension plan.

22 (1) Subsection 47(1) of Chapter 340 is amended by

(a) adding "former" immediately after "a" in the first line;

(b) adding "former" immediately before "member" in the third line; and

(2) Subsection 47(2) of Chapter 340 is amended by

(a) striking out "deferred pension" in the first and second lines and substituting "pension or deferred pension in respect of employment before the first day of January, 1988,"; and

(b) striking out "shall not" in the third line and substituting "may".

(3) Subsection 47(3) of Chapter 340 is amended by

(a) adding "former" immediately before "member" in the first line;

(b) adding "and the interest on the contributions" immediately after "plan" in the second line;

(d) striking out "by the employer" in the last line.

(4) Subsection 47(4) of Chapter 340 is amended by

(a) adding "former" immediately before "member" in the first line;

(b) adding "former" immediately before "member's" in the fourth line;

(d) adding "former" immediately after "the" in the sixth line.

(5) Subsection 47(5) of Chapter 340 is repealed and the following subsection substituted:

(5) The following may be excluded when determining that part of the commuted value of a pension or deferred pension to which subsections (3) and (4) apply:

(a) defined contribution benefits;

(b) benefits that result from additional voluntary contributions;

(c) in the case of a multi-employer pension plan that permits a member who has not accrued maximum pension benefits permitted under the plan in a fiscal year of the plan to make contributions to increase the member's pension benefit to the maximum permitted for the fiscal year, benefits resulting from such contributions;

(d) benefits that result from voluntary contributions for past service as defined in the regulations;

(e) optional ancillary benefits; and

(f) any other benefits prescribed for the purpose of this subsection.

(6) Clause 47(6)(b) of Chapter 340 is amended by adding ", but that are not included in calculating commuted value under subsection (2)" immediately after "1988" in the last line.

(7) Section 47 of Chapter 340 is further amended by adding immediately after subsection (6) the following subsections:

(7) The conversion of optional ancillary contributions to optional ancillary benefits shall be done pursuant to actuarial assumptions and methods that are appropriate and in accordance with accepted actuarial practice.

(8) Where a member's accumulated optional ancillary contributions exceed the amount that can be converted to optional ancillary benefits upon retirement, termination, death or plan wind-up, the pension plan may provide for forfeiture of the unused portion.

23 Section 48 of Chapter 340 is amended by adding immediately after subsection (2) the following subsection:

(3) For the purpose of subsection (2) and clause (c) of subsection (1) of Section 20, where the consent of an employer is an eligibility requirement for entitlement to receive an ancillary benefit and a member or former member has met all other eligibility requirements, the employer is deemed to have given the consent to the member or former member.

24 (1) Subsection 50(1) of Chapter 340 is amended by

(a) striking out "A member of a pension plan whose employment with the employer is terminated" in the first and second lines and substituting "A former member of a pension plan who, on or after the first day of January, 1988, terminates employment or ceases to be a member of the pension plan"; and

(b) striking out clause (c) and substituting the following clause:

(c) for the purchase for the former member of a life annuity under which payments will not commence before the earliest date on which the former member would have been entitled to receive payment of pension benefits under the pension plan.

(2) Section 50 of Chapter 340 is further amended by adding immediately after subsection (1) the following subsection:

(1A) Where the amount of the commuted value of the deferred pension of the former member to be paid into a prescribed retirement savings arrangement pursuant to clause (b) of subsection (1) is greater than the amount prescribed for such a transfer under the Income Tax Act (Canada), the administrator shall pay the portion that exceeds the prescribed amount as a lump sum to the former member.

(3) Clause 50(3)(b) of Chapter 340 is repealed.

(4) Subsection 50(4) of Chapter 340 is amended by adding "former" immediately after "A" in the first line.

(5) Clause 50(6)(b) of Chapter 340 is amended by striking out "and payments under the deferred life annuity will not commence more than ten years before the normal retirement date under the pension plan" in the last four lines.

(6) Section 50 of Chapter 340 is further amended by adding immediately after subsection (10) the following subsection:

(11) The administrator is discharged on making the payment or transfer in accordance with the direction of the former member if the payment or transfer complies with this Act and the regulations.

25 Subsections 51(1A) and (1B) of Chapter 340 are repealed.

26 Section 52 of Chapter 340 is amended by adding immediately after subsection (4) the following subsections:

(5) Where

(a) before the first day of January, 1988, a deferred life annuity has been purchased from an insurance company for a person entitled to a deferred pension under Chapter 14 of the Acts of 1975;

(b) payments have not commenced under the annuity on the first day of January, 1988; and

the annuity shall be paid as a joint and survivor pension in accordance with the requirements of this Section and the insurance company shall make payments accordingly.

(6) For the purpose of subsection (5), the insurance company is deemed to be the administrator under Sections 53 and 54.

27 (1) Subsection 54(1) of Chapter 340 is repealed and the following subsection substituted:

(1) The persons entitled to a joint and survivor pension benefit may waive the entitlement to receive payment of pension benefits in the form of a joint and survivor pension by delivering to the administrator of the pension plan or, in the case of a deferred life annuity, to the insurance company, a written waiver in the prescribed form that shall be supplied by the Superintendent.

(2) Subsection 54(2) of Chapter 340 is amended by

(a) striking out "written direction or" in the first and second lines and substituting "form or a"; and

(b) striking out "administrator" in the second and third lines and substituting "administrator or the insurance company, as the case may be,".

(3) Subsection 54(3) of Chapter 340 is amended by striking out "written and signed notice delivered to the administrator" in the third line and substituting "delivering a written and signed notice of cancellation to the administrator or the insurance company, as the case may be,".

28 Subsection 56(4) of Chapter 340 is amended by adding "beneficiary or" immediately after "person's" in the second line.

29 Subsection 58(1) of Chapter 340 is repealed and the following subsection substituted:

(1) A pension plan may provide for payment to a former member of the commuted value of a benefit if the annual benefit payable at the normal retirement date is not more than four per cent of the year's maximum pensionable earnings in the year that the former member terminated employment or if the commuted value of a benefit is less than ten per cent of the year's maximum pensionable earnings in the year that the former member terminated employment.

30 (1) Subsection 60(1) of Chapter 340 is amended by striking out "pension or a deferred pension" in the first and second lines and substituting "pension benefit".

(2) Subsection 60(2) of Chapter 340 is repealed.

(3) Subsection 60(3) of Chapter 340 is amended by striking out "pension or deferred pension" in the first and second lines and substituting "pension benefit".

31 (1) Subsection 68(2) of Chapter 340 is amended by adding "or optional ancillary contribution" immediately after "contribution" in the second line.

(2) Subsection 68(2A) of Chapter 340 is repealed.

(3) Subsection 68(3) of Chapter 340 is amended by striking out "A" in the first line and substituting "Notwithstanding subsection (1), a".

(4) Subsection 68(4) of Chapter 340 is amended by striking out "A" in the first line and substituting "Notwithstanding subsection (1), a".

32 Section 69 of Chapter 340 is amended by adding "(1)" immediately after the Section number and by adding the following subsection:

(2) A pension plan that provides for qualification periods for a deferred pension that are shorter than the periods set out in subsection (1) of Section 42 or subsection (1) of Section 43 may permit a refund of contributions to a person who terminates employment after becoming entitled to a deferred pension under the pension plan before the completion of the qualification period referred to in subsection (1) of Section 42 or subsection (1) of Section 43.

33 Subsection 70(3) of Chapter 340 is amended by adding "in accordance with Section 61" immediately after "(transfer rights on wind up)" in the last two lines.

34 Section 73 of Chapter 340 is amended by adding immediately after subsection (2) the following subsection:

(2A) In the case of a proposal to wind up only part of a pension plan, the administrator is not required to give written notice of the proposal to members, former members or other persons entitled to payment from the pension fund if those persons will not be affected by the proposed partial windup.

35 Section 76 of Chapter 340 is amended by adding immediately after subsection (1) the following subsection:

(1A) The Superintendent may terminate the appointment of an administrator appointed pursuant to subsection (1) if the Superintendent considers it reasonable to do so.

36 (1) Subsection 77(1) of Chapter 340 is repealed and the following subsection substituted:

(1) Within the prescribed period of time, the administrator of a pension plan that is to be wound up, in whole or in part, shall give to each person entitled to a pension, deferred pension or other benefit or to a refund in respect of the pension plan a statement setting out the person's entitlement under the pension plan, the options available to the person and such other information as may be prescribed.

(2) Subsection 77(2) of Chapter 340 is amended by striking out ", and the administrator of the pension plan shall make payment in accordance with the election or deemed election" in the last three lines.

(3) Section 77 is further amended by adding immediately after subsection (2) the following subsection:

(3) Within the prescribed period of time, the administrator shall make payment in accordance with the election or deemed election.

37 (1) Subsection 79(3) of Chapter 340 is amended by adding "to which a member would be entitled if the pension plan were not wound up and if the membership of the member were continued" immediately after "plan" in the second line.

(2) Section 79 of Chapter 340 is further amended by adding immediately after subsection (6) the following subsections:

(7) For the purpose of this Section, where the consent of an employer is an eligibility requirement for entitlement to receive an ancillary benefit, the employer is deemed to have given the consent.

(8) This Section and Section 78 apply in respect of the windup, in whole or in part, of a pension plan where the effective date of the windup is on or after the coming into force of this subsection.

(9) A person affected by a windup who elects to receive a benefit under subsection (1) is not entitled to payment of any refund of contributions under subsection (3) or (4) of Section 68.

(10) This Section does not apply in respect of a multi-employer pension plan.

38 (1) Subsection 84(3) of Chapter 340 is amended by adding immediately after clause (b) the following clause:

(ba) the employer has a claim to the surplus or part of the surplus;

(2) Section 84 is further amended by adding immediately after subsection (3) the following subsection:

(3A) An employer has a claim to the surplus or a part of the surplus if, after being notified of the employer's proposal, containing the prescribed information, 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:

(a) members of the pension plan;

(b) former members of the plan; and

39 Subsection 85(8) of Chapter 340 is repealed and the following subsections substituted:

(8) Where a group of members of a multi-employer pension plan are represented by a trade union and, in accordance with the Trade Union Act, the trade union ceases to represent the members and the members become represented by a different trade union certified as their bargaining agent and become members of a different pension plan, the administrator of the first plan shall transfer to the administrator of the new pension plan all the assets and liabilities respecting those members who have elected pursuant to Section 50 to transfer their entitlement to the new pension plan and the administrator of the new pension plan shall accept the transfer as assets and liabilities of the new plan.

(8A) Where a group of members of a multi-employer pension plan are represented by a trade union and, in accordance with the Trade Union Act, the trade union ceases to represent the members and former members and they become represented by a different trade union certified as their bargaining agent and become members of a different pension plan and the members are not entitled to make an election pursuant to Section 50, the administrator of the old pension plan shall transfer to the administrator of the new pension plan all assets and liabilities of the pension plan attributable to the members determined as prescribed and the administrator of the new pension plan shall accept the assets and liabilities as assets and liabilities, determined as prescribed, of the new plan.

(8B) Subsections (8) and (8A) do not apply where there is a reciprocal agreement respecting the pension plans.

40 (1) Subsection 86(1) of Chapter 340 is repealed and the following subsection substituted:

(1) Where a pension plan is established by an employer to be a successor to an existing pension plan and the employer ceases to make contributions to the original pension plan the original pension plan is deemed not to be wound up and the new pension plan is deemed to be a continuation of the original pension plan.

(2) Section 86 of Chapter 340 is further amended by adding immediately after subsection (7) the following subsection:

(8) No transfer of assets shall be made from one pension fund to another pension fund in circumstances where subsections (1) to (7) do not apply or where Sections 50 or 85 do not apply, without the prior consent of the Superintendent or contrary to the prescribed terms and conditions and, for that purpose, subsections (5) to (7) apply mutatis mutandis.

41 Clause 88(1)(b) of Chapter 340 is amended by striking out "do not accord with generally accepted actuarial principles" in the fourth and fifth lines and substituting "are not consistent with accepted actuarial practice".

42 (1) Subsection 100(1) of Chapter 340 is amended by striking out "ten" in the third line and substituting "twenty-five".

(2) Subsection 100(2) of Chapter 340 is amended by striking out "twenty-five" in the third line and substituting "one hundred".

(3) Subsection 100(3) of Chapter 340 is amended by striking out "ten" in the ninth line and substituting "twenty-five".

43 (1) Subsection 102(1) of Chapter 340 is amended by striking out "registered" in the third line and substituting "first class".

(2) Subsection 102(2) of Chapter 340 is amended by striking out "registered" in the second line and substituting "first class".

44 Subsection 105(1) of Chapter 340 is amended by

(a) striking out clause (e) and substituting the following clause:

(e) prescribing fees for the purpose of this Act;

and

(b) adding immediately after clause (v) the following clauses:

(va) prescribing for the purpose of Section 71A, the cost of complying with an attachment;

(vb) prescribing the requirements of agreements for the purpose of clause (b) of subsection (3) of Section 84;

45 This Act has effect on and after January 1, 2002.

This page and its contents published by the Office of the Legislative Counsel, Nova Scotia House of Assembly, and © 2001 Crown in right of Nova Scotia. Created May 31, 2002. Send comments to legc.office@gov.ns.ca.

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