BILL NO. 113
(as introduced)
4th Session, 61st General Assembly
Nova Scotia
61 Elizabeth II, 2012
Voluntary Retirement Savings Plans Act
Diana Whalen
Halifax Clayton Park
First Reading: November 2, 2012
Second Reading:
Third Reading:
An Act Respecting
Voluntary Retirement Savings Plans
Be it enacted by the Governor and Assembly as follows:
1 This Act may be cited as the Voluntary Retirement Savings Plans Act.
2 The purpose of this Act is to establish voluntary retirement savings plans as a type of low-cost retirement plan to promote retirement savings, and to provide a legal framework for the establishment and administration of such plans.
(a) "administrator" means the person who administers a plan;
(b) "deceased member's spouse" means the individual who, on the day immediately before the day on which the member dies, is the member's spouse;
(c) "Director" has the same meaning as in the Labour Standards Code;
(d) "domestic partnership" has the same meaning as in the Vital Statistics Act;
(e) "eligible employee" means an employee who has been in the employ of an employer for more than 12 months and is without a registered retirement savings plan or a registered pension plan within the meaning of the Income Tax Act (Canada) established by the employer, for which payroll deductions may be made;
(f) "employee" has the same meaning as in the Labour Standards Code;
(g) "employer" has the same meaning as in the Labour Standards Code;
(h) "inspector" means an inspector appointed pursuant to this Act;
(i) "judge" means a judge of the Supreme Court of Nova Scotia;
(j) "member" means, in relation to a plan, a member of the plan;
(k) "plan" means a voluntary retirement savings plan;
(l) "prescribed" means prescribed by the regulations;
(m) "spouse" means either of two persons who
(ii) are married to each other by a marriage that is voidable and has not been annulled by a declaration of nullity,
(iii) have gone through a form of marriage with each other, in good faith, that is void and are cohabiting or, where they have ceased to cohabit, have cohabited within the twelve-month period immediately preceding the date of entitlement,
(iv) are domestic partners within the meaning of Section 52 of the Vital Statistics Act, or
(v) not being married to each other, are cohabiting in a conjugal relationship with each other, which relationship has continued for at least
(n) "Superintendent" has the same meaning as in the Pension Benefits Act;
(o) "Year's Maximum Pensionable Earnings" has the same meaning as in the Canada Pension Plan.
(2) Notwithstanding clause 3(1)(m), a person who is living separate and apart from the member on the day immediately before the day on which the member dies is not the deceased member's spouse within the meaning of clause 3(1)(b).
4 (1) An individual, including an individual who is self-employed or whose employer has not subscribed to a plan, is eligible to become a member of a plan to the extent that the individual is allowed to contribute to a registered retirement savings plan under the Income Tax Act (Canada).
(2) An employer may contribute to a plan on behalf of an employee if the employee is a member of the plan.
5 (1) A plan or an amendment to a plan must be registered with the Superintendent in the prescribed manner.
(2) An administrator may apply to register a plan by paying the prescribed fee and filing with the Superintendent
(a) the text of the plan and its amendments, if any, or a copy of those documents certified by the administrator;
(b) a declaration, signed by the administrator, that the plan and its amendments comply with this Act; and
(c) any prescribed document or information.
(3) The text of a plan must be in the form of a single, complete document and include the prescribed information.
6 (1) Where an application for the registration of a plan meets the requirements of this Act, the Superintendent shall send the administrator an acknowledgment of receipt showing the date of receipt of the application.
(2) Where an application for registration is incomplete, the Superintendent shall notify the administrator and specify the documents, fees or information that remains to be filed.
7 (1) The Superintendent may, after giving the administrator an opportunity to make submissions, refuse to register a plan, a part of a plan or an amendment to a plan that, in the Superintendent's opinion, does not conform to this Act.
(2) Where the Superintendent refuses to register a plan, a part of a plan or an amendment to a plan, the Superintendent shall inform the administrator of the decision by means of a written notice specifying the reasons for refusal.
8 Upon registering a plan or an amendment, the Superintendent shall
(a) where registering a plan, assign a registration number to the plan; and
(b) notify the administrator that the plan or amendment has been registered.
9 (1) A plan and its amendments become effective on the date they are registered with the Superintendent and may not become effective before that date.
(2) No member may be accepted in a plan before the plan is registered.
10 (1) The registration of a plan or of an amendment does not constitute proof of its conformity to this Act.
(2) A provision of a plan that is incompatible with this Act is of no effect.
11 (1) The Superintendent may, after giving the administrator an opportunity to make submissions, revoke the registration of a plan, of any part of a plan or of an amendment to a plan that does not conform to this Act.
(2) The Superintendent shall notify the administrator of any revocation of registration by means of a written notice specifying the reasons for the revocation.
12 Only one plan per administrator may be registered with the Superintendent.
13 (1) The administrator of a plan shall hold a licence issued for that purpose by the Superintendent.
(2) Only the following persons may act as administrator of a plan:
(a) an insurer holding a life insurance licence issued pursuant to the Insurance Act;
(b) a licensed trust company within the meaning of the Trust and Loan Companies Act; and
(c) an investment fund manager registered pursuant to the Securities Act.
(3) Sections 248 to 250 of the Trust and Loan Companies Act apply mutatis mutandis to any administrator holding a licence referred to in clause (b) in respect of any activities governed by this Act and the regulations.
14 (1) In the management of a plan and its assets, the administrator shall exercise the prudence, diligence and skill that a reasonable person would exercise in similar circumstances.
(2) An administrator shall act with honesty and fairness in the best interest of the members.
15 An administrator is responsible for ensuring that the plan complies with this Act.
(a) an employer applies to participate in a plan; or
applies to become a member of a plan,
the administrator shall enter into a contract with the employer or individual.
(2) The contract between the administrator and the employer or individual must conform to the plan previously registered with the Superintendent and contain, in addition to the prescribed information, the registration number assigned by the Superintendent.
17 (1) Within 30 days after a contract referred to in Section 16 is signed, the administrator shall provide members whose employer has subscribed to the plan with a written summary of the plan.
(a) describe, in particular, the rights and obligations of the members and the employer; and
(b) include the investment options available under the contract and the costs related to the plan.
(3) The administrator shall provide the summary to any employee referred to in subsections 37(1) and (2) within the period provided for by subsection 37(4).
18 An administrator shall not refuse the application of an employer to participate in the plan or of an individual to become a member of the plan unless authorized to do so by an enactment.
19 An administrator shall provide the plan at the same cost and on the same conditions to all employers that participate in the plan and to all individuals who become members of the plan.
20 Subject to the regulations, an administrator shall not give, offer or agree to give or offer to an employer an inducement to enter into a contract with the administrator in respect of a plan.
21 (1) An administrator shall, within six months after the end of each fiscal year of the plan or, in the case of the first fiscal year of the plan, within any additional period specified by the Superintendent, transmit to the Superintendent an annual statement in the form specified by the Superintendent, along with the certificates and documents referred to in the form.
(2) The annual statement must be accompanied by the prescribed fee.
22 (1) The administrator shall, within six months after the end of each fiscal year of the plan or, in the case of the first fiscal year of the plan, within any additional period specified by the Superintendent, cause to be prepared a financial report containing a statement of the plan's assets and a statement of the plan's revenues and expenditures for the fiscal year just ended.
(2) Except in the prescribed circumstances, the financial report must be audited by an accountant licensed pursuant to the Public Accountants Act.
23 (1) An administrator shall provide a default investment option that meets the prescribed criteria.
(2) An administrator may, subject to the prescribed conditions, offer other investment options of varying degrees of risk and expected return that would allow a prudent person to create a portfolio of investments appropriate for retirement savings and from among which a member may make an investment choice.
(3) Where a member does not make an investment choice under subsection (2), the investment option referred to in subsection (1) applies to the member's account.
24 The investment option chosen by a member must not be changed by the administrator except at the request of the member or in the prescribed circumstances.
25 (1) An administrator shall provide the plan to members at a cost that meets the prescribed criteria.
(2) An administrator may charge members prescribed fees and may deduct such fees as may be prescribed from the return on fund assets.
26 (1) A person referred to in subsection 13(2) may apply for a licence to act as an administrator.
(2) An application for a licence must be submitted to the Superintendent in the form specified by the Superintendent.
(3) An applicant for a licence shall pay the prescribed fee and file with the Superintendent
(a) a five-year business plan dealing with the proposed development of activities related to the proposed plan and showing how the applicant intends to comply with Section 28;
(b) a document in which the applicant attests that the amount by which the assets of the applicant exceed the liabilities is at least equal to the prescribed amount, or an irrevocable letter of credit or a suretyship, which letter or suretyship is in a prescribed amount and is issued by a financial institution licensed as an insurer, trust company or deposit institution under an Act of the Parliament of Canada or of a province of Canada;
(c) a certificate in which the applicant confirms that the applicant holds liability insurance in accordance with the prescribed requirements; and
(d) any other prescribed document.
27 The Superintendent shall issue a licence to an applicant that
(a) complies with Section 26; and
(b) in the opinion of the Superintendent, is able to comply with Section 28.
28 In order to maintain its licence, an administrator shall at all times
(a) maintain liability insurance in accordance with the prescribed requirements;
(b) maintain the administrator's operational capability and the expertise required to administer a plan adequately;
(c) in respect of the administrator's activities as an insurer, trust company or investment fund manager, comply with the Acts and regulations, and any orders, written instructions or undertakings made pursuant to those Acts, that govern those activities; and
(d) in the opinion of the Superintendent, have a satisfactory financial situation.
29 (1) The Superintendent may suspend or cancel the licence of any administrator that ceases to comply with the obligations set out in Section 28.
(2) The Superintendent may suspend or cancel a licence if
(a) the administrator is not in compliance with this Act or with an order of the Superintendent; or
(b) the administrator has not registered a new plan within 180 days after the wind-up of the plan.
30 (1) The Superintendent shall cancel the licence of an administrator obtained through fraud or as the result of an error.
(2) The Superintendent shall cancel the licence of an administrator if
(a) the administrator has not filed an application for the registration of a plan within 90 days of the issuance of the licence; or
(b) the administrator has been denied the registration of a plan.
31 The Superintendent shall cancel the licence of an administrator at the request of the administrator if the administrator has complied with all obligations in relation to the revocation of the registration of a plan.
32 (1) Following an amalgamation of two or more administrators, the Superintendent shall cancel the licences of the administrators that have amalgamated and issue a new licence to the administrator resulting from the amalgamation.
(2) The administrator resulting from an amalgamation shall retain the management of the plan it designates and wind up the other plans in accordance with Section 74.
33 (1) An employer may provide a plan to employees.
(2) An employer that, as of December 31st of a year, employs 20 or more eligible employees shall, in the year that follows, subscribe to a plan and register the eligible employees in the plan as members.
(3) Subsection (2) does not apply to an employer that makes contributions in respect of employees to
(a) a pension plan or a registered retirement savings plan that is registered pursuant to the Income Tax Act (Canada); or
(b) a prescribed retirement plan.
34 At least 30 days before subscribing to a plan, an employer shall notify each employee in writing
(a) of the employer's intention to subscribe to the plan;
(b) of any existing business relationship the employer has with the administrator;
(c) that eligible employees are automatically registered in the plan and that they are to have the opportunity to renounce membership in the plan;
(d) that an employee who is not an eligible employee and who wishes to become a member of the plan must inform the employer;
(e) that the employee may determine the employee's own contribution rate;
(f) of any contribution the employer agrees to pay into the plan or the method of calculating it; and
(g) of any other prescribed information.
35 The contract between an employer that is subscribing to a plan and the administrator must specify
(a) that the employer is responsible for remitting the contributions paid by employees registered in the plan and the employer's own contributions, where applicable, to the administrator, and informing the administrator of any change relating to the contribution rate;
(b) the frequency of the remittances and the consequences if the employer fails to comply with the contract in that respect;
(c) whether it is the employer or the administrator that is responsible for sending the notice required under Section 36; and
(d) any other prescribed information.
36 (1) Not later than 30 days after the contract is signed, either the administrator or the employer, as specified in the contract, shall notify each registered employee in writing of the employee's membership in the plan.
(2) The notice must inform the registered employees
(a) that an eligible employee may renounce membership in the plan by notifying the employer in writing within 60 days after the notice is sent;
(b) that any member may terminate membership in the plan at any time;
(c) of the default contribution rate and that the member may change the rate;
(d) of the default investment option and any other investment options and that the member may change the member's investment option; and
(e) of any other prescribed information.
37 (1) An employer that has subscribed to a plan shall register in the plan any employee who becomes an eligible employee and any employee who so requests.
(2) An employer shall offer membership in the plan to any eligible employee who has renounced or terminated membership in the plan every two years from the date of renunciation or termination.
(3) Subsections (1) and (2) apply even if the eligible employees is reduced to fewer than five, unless, where the eligible employees is fewer than five, all the eligible employees have renounced or terminated membership in the plan.
(a) register in the plan an eligible employee or any other employee who so requests in accordance with subsection (1); and
(b) provide the notice required under Section 36 to the employee,
within 30 days of the employee becoming an eligible employee or requesting to be registered in the plan, as the case may be.
38 Where an eligible employee renounces membership in the plan, the employer shall keep proof of the renunciation and notify the administrator within 30 days.
39 (1) An employer may transfer the assets of a plan into a different plan.
(2) Where an employer transfers the assets of a plan into a different plan, the employer shall pay all costs related to the transfer of the assets.
40 An employer is not liable for the acts and omissions of the administrator.
41 An employer shall provide the administrator with the documents and information required by the administrator to comply with this Act.
42 An employer shall notify the administrator of the termination of employment of a member or termination of membership of an employee within 30 days after the date of termination of employment or the date the notice required under subsection 60(2) is received by the employer.
43 Subject to the regulations, an employer shall not demand, accept or agree to accept any inducement from an administrator, or offer or agree to offer an administrator any inducement, for the purpose of entering into a contract with the administrator in respect of a plan.
44 A member shall establish the rate of the member's contribution to the plan, failing which, the prescribed default contribution rate applies.
45 (1) A member may, at any time, change the member's rate of contribution to the plan.
(2) An employee who is a member of the plan provided by the employee's employer may not change the rate of contribution more often than twice per 12-month period unless the employer agrees that the member may do so more often.
(3) A member may, under the prescribed conditions, set the member's rate of contribution at zero per cent.
(4) An employer shall give effect to a member's request to change or set the member's contribution rate within 30 days.
46 (1) An employer is not required to contribute to a plan on behalf of employees.
(2) An employer that contributes to a plan may change the rate at which the employer contributes to the plan.
(3) Where an employer changes the rate at which the employer contributes to a plan, the employer shall send a written notice to the administrator and the members concerned.
(4) Where an employer reduces the rate at which the employer contributes to a plan, the reduction in rate must not take effect until the thirtieth day after the date the notice is sent.
47 Commencing on the 61st day after the notice referred to in Section 36 is sent, an employer shall deduct a member's contribution for each pay period from the member's salary.
48 An employer shall remit member contributions to the administrator on or before the last day of the month that follows the day on which they are collected, along with the contributions the employer has agreed to pay on behalf of the members.
49 (1) Where an employer fails to remit the contributions to the administrator in accordance with Section 48, the employer shall pay interest on the contributions due.
(2) Contributions bear interest, at the prescribed rate and in the prescribed manner, from the last day of the month that follows the month in which the contributions are collected until they are remitted to the administrator.
50 Where contributions due in respect of a member are paid after the transfer, refund or payment of the balance of the member's accounts, the administrator shall transfer or pay those contributions as it did for the accounts in which the contributions were to be entered.
51 Until the contributions and interest accrued are remitted to the administrator, an employer is deemed to hold those amounts in trust, regardless of whether the employer has kept them separate from the employer's own assets.
52 Within 60 days after the time limit referred to in Section 48, an administrator shall notify the Superintendent of any contributions not yet remitted and the measures being taken to ensure remittance.
53 An administrator shall keep a locked-in account and a not-locked-in account in its books for each member.
54 (1) Employer contributions in respect of a member must be credited to the member's locked-in account and member contributions must be credited to the member's not-locked-in account.
(2) Each account must be credited with accrued interest and the other prescribed amounts.
55 No administrator shall transfer any sum between the locked-in account and the not-locked-in account of a member.
56 (1) Where the employment of a member is terminated or the member reaches the age of 55 years, all or part of the member's locked-in account may be transferred to a prescribed pension plan chosen by the member.
(2) An administrator shall make the transfer provided for under subsection (1) within 60 days of receiving a request to do so from the member.
57 (1) A member may withdraw the funds in the locked-in account if
(a) a physician certifies that the member's physical or mental disability reduces the member's life expectancy;
(b) the balance in the member's locked-in account is, subject to any other prescribed percentage, less than 20 per cent of the Year's Maximum Pensionable Earnings for the year in which the member is no longer employed by an employer that subscribes to a plan; or
(c) the member has ceased residing in Canada for at least two years.
(2) An administrator shall remit the sums requested for withdrawal by a member within 60 days of receiving a request to do so from the member.
58 (1) At least once per 12-month period and at any time in the circumstances referred to in clauses 57(1)(a) or (c), a member is entitled, upon a request to the administrator, to the refund of all or part of the not-locked-in account or to the transfer of all or part of that account to a prescribed pension plan chosen by the member.
(2) An administrator shall make a refund or transfer requested under subsection (1) within 60 days of receiving a request to do so from the member.
59 A plan may provide that a member who has reached the prescribed age or, where the member is deceased, the deceased member's spouse may elect to receive variable payments from the funds in the member's accounts, under the prescribed conditions and within the prescribed period.
60 (1) A member may, at any time, terminate membership in the plan.
(2) Where a member wishes to terminate membership in the plan, the member shall inform the administrator of the fact in writing or, where the member's employer collects the member's contributions, the member shall notify the employer, upon which any payment of contributions to the member's account must cease.
(3) The employer shall remit to the administrator any contributions collected before receiving the notice referred to in subsection (2).
61 An employee who has terminated membership in a plan may not, unless the employer agrees, again become a member of the plan before the end of a 12-month period commencing on the date the employee's membership terminated.
62 On the death of a member who was not receiving variable payments, the deceased member's spouse or, where there is no deceased member's spouse, the deceased member's successors are entitled to a benefit the amount of which is equal to the balance in the member's accounts, including interest accrued until the date of payment or transfer of all or part of the amount to a prescribed pension plan chosen by the member, the deceased member's spouse or the successors, as the case may be, if the fiscal rules so allow.
63 (1) A member's spouse or a deceased member's spouse may waive entitlement to the death benefit by notifying the administrator of the fact in writing.
(2) Where a waiver is given under subsection (2) before the member's death, the member's spouse may revoke the waiver by notifying the administrator of the revocation in writing before the member's death.
64 In the event of separation, divorce or annulment, the benefits accumulated by a member under a plan may, upon applying in writing to the administrator, be partitioned between the member and the member's spouse to the extent determined by a judgment of the Supreme Court of Nova Scotia.
65 (1) Upon the filing of an application for divorce, annulment or the division of the spouses' matrimonial property, a member and the member's spouse are entitled, upon applying in writing to the administrator, to obtain a statement of the benefits accumulated by the member under the plan and the value of the benefits at the date of the filing of the application.
(2) A statement referred to in subsection (1) must contain the prescribed information.
(3) For the purpose of this Section, the benefits accumulated by a member and the value of the benefits must be determined according to the prescribed rules.
(4) A member and the member's spouse are entitled, upon applying in writing to the administrator, to receive a statement of benefits for the purpose of pre-hearing mediation concerning a matter related to the division of the spouses' matrimonial property.
(5) A statement referred to in subsection (4) must contain the prescribed information.
66 (1) In the event of cessation of the conjugal relationship between a member and the member's spouse, the member and the spouse may, in the ensuing year, agree in writing to a partition of the benefits accumulated by the member under the plan.
(2) An agreement referred to in subsection (1) cannot confer on the member's spouse more than 50 per cent of the value of the benefits.
(3) For the purpose of this Section, a member and the member's spouse are entitled to obtain the statements described in Section 65 as at the date on which they ceased to live together in a conjugal relationship.
(4) At the request of the member, the administrator shall award benefits to the member's spouse in accordance with the agreement referred to in subsection (1).
67 (1) The partition of a member's benefits from both the locked-in and the not-locked-in accounts must conform to the prescribed rules.
(2) Where a member's benefits are partitioned,
(a) benefits awarded to the member's spouse from the member's locked-in account may, except in the prescribed circumstances, only be used to constitute a life pension, regardless of whether the benefits are transferred to a prescribed pension plan; and
(b) benefits awarded to the member's spouse from the member's not locked-in account may be transferred to a prescribed pension plan or refunded at the request of the member's spouse under the prescribed conditions.
68 Subject to the regulations, a member's locked-in and not-locked-in accounts are subject to attachment under the Maintenance Enforcement Act, and Sections 27A to 27F of that Act apply mutatis mutandis to the attachment of a member's locked-in and not-locked-in accounts.
69 (1) The cost of producing the statements referred to in Section 66 and the expenses incurred in the transferring of benefits between spouses may be claimed from the spouses only up to the prescribed limit.
(2) The costs and expenses claimed from the spouses must be divided equally between them, unless the spouses specify a different apportionment.
(3) The administrator may reduce the value of each spouse's benefits by the amount of the costs and expenses that must be borne by that spouse, unless the spouse requests and the administrator agrees to another method of paying the costs and expenses.
70 The Superintendent may wind up a plan if
(a) the administrator fails to comply with an order issued by the Superintendent under this Act; or
(b) the plan has no more members.
71 The Superintendent shall order the wind-up of a plan if the administrator is no longer in compliance with Section 28.
72 The wind-up of a plan becomes effective when the total assets of the plan are liquidated.
73 An administrator shall liquidate the assets of the plan within 120 days after receiving notice of the Superintendent's order to wind up the plan.
74 (1) An administrator that wishes to wind up a plan shall give the Superintendent prior written notice.
(2) The Superintendent shall send the administrator an acknowledgement of receipt showing the date the written notice was received.
(3) Subject to subsection (4), the administrator may begin liquidating the assets of the plan in accordance with Section 75 following the expiry of a 60-day period commencing on the date on which the Superintendent receives the written notice from the administrator.
(4) An administrator shall not begin to liquidate the assets of the plan if, during the period specified by subsection (3), the administrator receives from the Superintendent
(a) a request for information;
(b) a notice extending the period of examination of the notice; or
(c) an order to suspend the liquidation of the assets so that measures to protect the members' rights may be put in place within the time and on the conditions set by the Superintendent.
75 (1) Where a plan is to be wound up, the administrator shall, within 30 days after receiving the Superintendent's order to wind up the plan or upon the expiry of the period specified by subsection 74(3), notify the Superintendent, the members and the employers of the members that the assets of the plan will be transferred to the plan specified by the administrator within the following 90 days.
(2) The notice required under subsection (1) must contain
(a) in the case of a member for whom an employer is subscribed to the plan on the date the notice is sent,
(ii) a statement that the sums accrued in each of the accounts is to be transferred to the plan specified by the employer;
(b) in the case of a member for whom no employer is subscribed to the plan on the date the notice is sent,
(ii) the member's options for the payment of the member's benefits from among those prescribed for each of the member's accounts, and
(iii) a statement that the member may request the administrator to pay the benefits in the manner the member specifies before the expected date of the liquidation of the assets of the plan; and
(c) in the case of an employer that is subscribed to the plan on the date the notice is sent,
(ii) a statement that the employer may request that the assets of the plan be transferred to a plan specified by the employer before the expected date of the liquidation of the assets of the plan.
(3) Subject to subsection (4), within 30 days of receiving the member's or the employer's request, the administrator shall pay the benefits accrued to a member according to the option the member has specified or transfer the assets of the plan to the plan specified by the employer, as the case may be.
(4) Where a request is made within 30 days before the end of the 90-day period referred to in subsection (1), the administrator shall follow up on the request no later than the end of that 90-day period.
76 An administrator may obtain an extension from the Superintendent to liquidate the assets of the plan if the Superintendent is satisfied that
(a) it is impossible for the administrator to act within the period specified by Section 73; or
(b) an extension is likely to serve the interests of the members.
77 The contributions an employer is required to remit to the administrator under Section 48 must be paid into the plan until the date the assets are transferred to the plan specified by the employer or, where there is no such plan, to the plan specified by the administrator.
78 (1) During the liquidation of the assets of the plan, the Superintendent may order the application, within the time and on the conditions the Superintendent specifies, of any remedial measure the Superintendent specifies.
(2) An order issued under subsection (1) suspends the settlement of benefits until such time as the Superintendent certifies to the person that received the order that the order has been complied with.
79 (1) An administrator may continue to make variable payments to a person entitled to such payments, as they become due, until the date the person's benefits are paid in full.
(2) The accounts of a person who receives variable payments must be reduced by the amount of the payments made until the date the person's benefits are paid in full.
80 Where a plan is wound up and the assets of the plan are liquidated, the administrator shall pay all costs arising from the refund and transfer of the assets.
81 Upon liquidating the assets of the plan, the administrator shall render an account to the Superintendent within the following 60 days by filing
(a) a document signed by a person in authority attesting that the liquidated assets are those to which the members affected by the wind-up of the plan were entitled and that they were disposed of in keeping with the law;
(b) a wind-up report consisting of the annual statement and the financial report required under Sections 21 and 22, which wind-up report must cover the period between January 1st of the current year and the date of liquidation of the assets; and
(c) any other prescribed information.
82 (1) Any amount due to a member affected by the wind-up of a plan that is not claimed within three years of the date of liquidation of the assets of the plan must be transferred to the Minister of Finance.
(2) The amount referred to in subsection (1) may be transferred before the expiry of the three year period if the only benefits remaining to be settled are payable to untraceable members.
(3) The transfer must be accompanied by a statement setting out the amount due and indicating, where applicable, the name and last known address of the member.
(4) The Minister of Finance may pay an amount transferred pursuant to this Section to a person claiming to be entitled to it upon being furnished with satisfactory proof of the person's entitlement.
83 The registration of a wound-up plan is revoked 60 days after the administrator renders an account to the Superintendent of the liquidation of the assets of the plan.
84 In addition to the other obligations to provide information under this Act, an administrator shall
(a) provide each member, within 45 days following the end of each fiscal year of the plan and in the prescribed manner, with a statement that indicates, in particular, the cumulative value of the contributions and other amounts paid into the member's accounts under the plan from the beginning of his or her membership, as well as the other prescribed information;
(b) provide each member concerned, within 30 days of the date the member is terminated or reaches the age of 55 years, with a statement that contains the prescribed information; and
(c) provide a deceased member's spouse or a deceased member's successors, within 30 days following the date the administrator receives notice of the member's death, with a statement containing the prescribed information.
85 In addition to the other functions conferred on the Superintendent by this Act, the Superintendent shall ensure that plans are administered and operated in accordance with this Act.
86 In addition to the other powers conferred on the Superintendent by this Act and the Pension Benefits Act, the Superintendent may
(a) provide information in the form of general or specific instructions regarding the administration of this Act;
(b) carry out inspections regarding plans;
(c) prepare, or cause to be prepared, any document provided for in this Act or required by the Superintendent but not furnished in accordance with this Act or the requirements of the Superintendent, at the expense of the person who is required to furnish it;
(d) require from an administrator or an employer, on the conditions and within the time established by the Superintendent, any document or information the Superintendent considers necessary for the purposes of this Act;
(e) require from an administrator the payment of the prescribed costs related to an inspection or an inquiry regarding a plan.
87 The Superintendent may make an order directing an administrator or an employer to take any remedial measure specified by the Superintendent within the time and on the conditions established by the Superintendent, if the Superintendent is of the opinion that
(a) the action taken by the administrator or the employer is contrary to sound financial practices;
(b) the financial report prepared under Section 22 does not comply with generally accepted accounting principles;
(c) the plan or its administration is not in compliance with this Act; or
(d) the contents of a document provided for in this Act or required by the Superintendent are not in compliance with this Act or the requirements of the Superintendent.
88 The Superintendent may delegate in writing any of the Superintendent's powers pursuant to this Act to any person, subject to any limitations or conditions set out in the delegation, and all acts done and decisions made under the delegation are as valid and effective as if done or made by the Superintendent.
89 (1) A document that purports to be signed by or on behalf of the Superintendent must be received in evidence in any proceeding as proof, in the absence of evidence to the contrary, of the facts stated in the document without proof of the signature or the position of the person appearing to have signed the document.
(2) A true copy certified by the Superintendent of a document or thing in the custody of the Superintendent is admissible in evidence to the same extent and has the same evidentiary value as the document or thing of which it is a copy.
90 (1) For the purpose of this Act, the Superintendent may appoint one or more persons in the public service to be inspectors.
(2) For the purpose of an inspection relating to a plan, an inspector may, at any reasonable time, enter any premises where the administrator or the employer keeps a document relating to the plan, examine the document, and take an extract from or make a copy of the document.
(3) Any person who has custody, possession or control of a document relating to a plan shall, on request, make it available to an inspector and facilitate examination of the document.
(4) On request, an inspector shall produce identification and a certificate of authority issued by the Superintendent.
91 The Superintendent shall periodically post a bulletin on the Superintendent's website containing the general instructions the Superintendent provides under clause 86(a) and any other prescribed information.
92 (1) The Superintendent may, of the Superintendent's own motion, state a case in writing for the opinion of the Nova Scotia Court of Appeal upon any question that, in the opinion of the Superintendent, is a question of law.
(2) The Nova Scotia Court of Appeal shall hear and determine the question referred pursuant to subsection (1) and provide its opinion on the question to the Superintendent.
93 (1) In the event of a threatened or continuing violation of this Act or the regulations, the Superintendent may apply to a judge for an injunction to restrain the person from continuing or committing the violation and, where the judge considers it to be just, the judge may grant such an injunction.
(2) A judge may, on application, grant an interim injunction pending the hearing of an application for an injunction pursuant to subsection (1) if the judge is satisfied that there is reason to believe that a person is likely to commit or is continuing to commit a violation of this Act or the regulations.
(3) A judge may make such order as to costs as the judge considers appropriate in any proceedings pursuant to this Section.
94 The Superintendent may, at the Superintendent's sole discretion, intervene in or become a party to any legal proceeding pertaining to this Act.
95 The Superintendent may, for the period the Superintendent considers advisable, assume the provisional administration of all or part of a plan or entrust to a person designated by the Superintendent the provisional administration of all or part of a plan if
(a) the Superintendent or an inspector is making an inquiry into the plan's conformity with the law or into the plan's administration;
(b) in the opinion of the Superintendent, the plan or the administration of the plan is not in conformity with this Act;
(c) in the opinion of the Superintendent, the administrator has committed a breach of trust or other form of misconduct;
(d) the Superintendent becomes aware that the administrator has failed to comply with an order issued by the Superintendent; or
(e) the licence of the Administrator is suspended by the Superintendent under clause 29(2)(a).
96 The Superintendent shall determine the remuneration and any allowances and indemnities to be paid to a provisional administrator designated under Section 95.
97 The expenses relating to the provisional administration of a plan must be borne by the administrator unless the Superintendent elects to assume them.
98 The Superintendent may establish forms required for the purpose of exercising the Superintendent's functions and powers under this Act.
99 The Director is responsible for the supervision of the application of the obligations set out in subsection 33(2) and Sections 34 and 37.
100 For the purpose of Section 99, Sections 15 and 16, 21 to 28, 30 and 31 of the Labour Standards Code apply mutatis mutandis to the records held by an employer and to complaints to and inquiries by the Director.
101 Any person affected by a decision or order of the Superintendent may, within 30 days, appeal to the Supreme Court of Nova Scotia from the decision or order.
102 The fiscal year of a plan ends on December 31st of each year.
103 Unless otherwise provided by law,
(a) all contributions remitted or to be remitted to an administrator, with accrued interest;
(b) all amounts refunded or pension benefits paid under this Act;
(c) all amounts awarded to a member's spouse following a transfer of benefits effected under Sections 64 to 69, with accrued interest, and the benefits deriving from such amounts; and
(d) all amounts transferred from a member's locked-in account to a prescribed pension plan, with accrued interest, and any refunds of such amounts,
are exempt from execution, seizure or attachment.
104 The funds in members' accounts may be pooled by the administrator for the purpose of investing the assets of the plan.
105 (1) The Superintendent may enter into an agreement with the government of another province of Canada or the Government of Canada to provide for
(a) the delegation of any powers and duties of the Superintendent pursuant to this Act to that government or to a supervisory authority; and
(b) the delegation to the Superintendent of any powers and duties of that government or a supervisory authority pursuant to legislation substantially similar to this Act.
(2) Without limiting the generality of subsection (1), an agreement entered into pursuant to subsection (1) may
(a) determine to what extent and on what conditions plans are subject to this Act and the regulations and the statutes and regulations of another province of Canada or of the Government or Parliament of Canada, if the government of that province or the Government of Canada, as the case may be, is party to the agreement, as well as any other rules applicable to plans; and
(b) establish requirements concerning plans, administrators or an employers, in addition to the other requirements imposed by this Act and the regulations and the statutes and regulations of another province of Canada or of the Government or Parliament of Canada, if the government of that province or the Government of Canada, as the case may be, is party to the agreement.
(3) An agreement entered into pursuant to subsection (1) must be published in the Royal Gazette.
(4) On the expiry of at least 45 days after its publication in the Royal Gazette, an agreement may be submitted to the Governor in Council for approval, with or without amendments.
(5) Where the Governor in Council approves an agreement, the agreement, as approved, must be again published in the Royal Gazette.
(6) An agreement comes into force on the later of
(a) the date on which it is published in the Royal Gazette pursuant to subsection (5); or
(b) such later date as may be specified in the agreement.
(7) An agreement made and approved pursuant to this Section is enforceable as if the agreement formed part of this Act and, in case of a conflict between the agreement and this Act or the regulations, the agreement prevails.
(8) An agreement made and approved pursuant to this Section is not a regulation within the meaning of the Regulations Act.
(a) contravenes Section 17, 18, 19 or 20, subsection 23(1), Section 24, 25, 50, 52, 53 or 55, subsection 56(2), 57(2) or 58(2), Section 73, subsection 74(1) or (4) or Section 75, 80, 81 or 84;
(b) neglects or refuses to provide a notice or statement required pursuant to this Act;
(c) neglects or refuses to file with the Superintendent a statement, report or other document or information required pursuant to this Act; or
(d) contravenes an order made pursuant to this Act,
is guilty of an offence and liable on summary conviction to a fine of not more than $75,000 and not less than $600.
(2) Where a person is convicted of an offence pursuant to this Act a second or subsequent time, the person is, notwithstanding subsection (1), liable to a fine of not more than $150,000 and not less than $1,200.
107 (1) An employer that fails to remit contributions as required pursuant to Section 48 or subsection 60(3) is guilty of an offence and liable on summary conviction to a fine of not more than $75,000 and not less than $600.
(a) contravenes subsection 33(2), Section 34, 36, 37 or 38, subsection 39(2), Section 41, 42 or 43, subsection 46(3) or Section 47, 49 or 77; or
(b) contravenes an order made pursuant to this Act,
is guilty of an offence and liable on summary conviction to a fine of not more than $1,200 and not less than $600.
(3) Where a person is convicted of an offence pursuant to this Act a second or subsequent time, the person is, notwithstanding subsections (1) and (2), liable to a fine of
(a) where the person is convicted of an offence under subsection (1), not more than $150,000 and not less than $1,200; or
(b) where the person is convicted of an offence under subsection (2), not more than $2,400 and not less than $1,200.
(a) with the intention of avoiding the application of this Act, destroys, alters, mutilates, conceals or otherwise disposes of a record or other document;
(b) acts as an administrator or suggests the person is an administrator without holding the licence required under Section 13;
(c) offers a plan that is not registered in compliance with this Act;
(d) provides false documents or information, or access to false documents or information, to the Superintendent, or to a member of the Superintendent's staff, in the course of activities governed by this Act; or
(e) hinders or obstructs a person that is exercising powers or carrying out duties pursuant to this Act,
is guilty of an offence and liable on summary conviction to a fine of not more than $75,000 and not less than $600.
(2) Where a person is convicted of an offence pursuant to this Act a second or subsequent time, the person is, notwithstanding subsection (1), liable to a fine of not more than $150,000 and not less than $1,200.
109 A person that, by an act or omission, assists or, by encouragement, advice or consent or by an authorization or an order, induces another person to commit an offence pursuant to this Act is guilty of the same offence.
110 (1) The Governor in Council may make regulations
(a) prescribing the manner of registering a plan or an amendment to a plan;
when registering a plan or an amendment to a plan;
(c) prescribing the information that must be included in the text of a plan;
(d) prescribing the information that must be included in a contract between an administrator and an employer or member for the purpose of Section 16;
(e) prescribing the circumstances in which an administrator may give, offer or agree to give or offer to an employer an inducement to enter into a contract with the administrator in respect of a plan, the conditions that apply to such an arrangement and the type of inducement permitted, if any;
(f) prescribing the fee that must accompany an annual statement;
(g) prescribing the circumstances in which a financial report is not required to be audited by an accountant;
(h) prescribing the criteria that must be met by a default investment option;
(i) prescribing the conditions applicable to the other investment options an administrator may offer, from among which a member may make an investment choice;
(j) prescribing the circumstances in which an administrator may change a member's investment choice;
(k) prescribing the criteria that must be met by the cost of a plan;
(l) prescribing the fees an administrator may
(m) prescribing, in respect of an applicant for a licence to act as administrator of a plan,
(ii) the amount by which the assets of the applicant must exceed the liabilities of the applicant,
(iii) the amount required in the applicant's irrevocable letter of credit or suretyship,
(iv) the requirements for liability insurance the applicant must hold, and
(v) the other documents that must be filed by the applicant;
(n) prescribing the requirements for the maintenance by an administrator of its liability insurance;
(o) prescribing retirement plans for the purpose of subsection 33(3);
(p) prescribing the information that may be contained in a notice an employer sends its employees under Section 34;
(q) prescribing the information that must be contained in a contract entered into between an employer and an administrator for the purpose of Section 35;
(r) prescribing the information that may be contained in a notice an employer or an administrator sends under Section 36 to each employee registered in the plan;
(s) prescribing the circumstances in which an employer may demand, accept or agree to accept an inducement from an administrator, or offer or agree to offer an administrator an inducement, to enter into a contract with the administrator in respect of a plan, the conditions that apply to such an arrangement and the type of inducement permitted, if any;
(t) prescribing the default contribution rate for a member of a plan;
(u) prescribing the conditions under which a member may set a contribution rate at zero per cent;
unremitted contributions bear interest;
(w) prescribing amounts that must be credited to the member's locked-in and not-locked-in accounts;
(x) prescribing the pension plans or classes of pension plans to which the amounts from a member's locked-in and not-locked-in accounts may be transferred;
(y) prescribing a percentage other than 20 per cent for the purpose of clause 57(1)(b);
(z) respecting variable payments and, without limiting the generality of the foregoing, prescribing
a member may elect to receive variable payments;
(za) prescribing pension plans for the purpose of Section 62 and 67;
(zb) prescribing the information that must be contained in a statement a member or a member's spouse is entitled to obtain upon filing an application for divorce, annulment or the division of the spouses' matrimonial property;
(zc) prescribing the rules according to which the benefits accumulated by a member and the value of the benefits must be determined for the purpose of Section 65;
(zd) prescribing the information contained in the statement a member or a member's spouse is entitled to obtain for the purpose of pre-hearing mediation concerning a matter related to the division of the spouses' matrimonial property;
(ze) prescribing the rules for partitioning a member's benefits from the locked-in and not-locked-in accounts;
(zf) prescribing the conditions under which a member's spouse may request a refund of the benefits awarded to the spouse from a member's not-locked-in account;
(zg) respecting the application of Sections 27A to 27F of the Maintenance Enforcement Act to plans and the attachment of locked-in and not-locked-in accounts;
(zh) prescribing the limit for the costs and expenses incurred for effecting the transfer of benefits between spouses that may be claimed;
(zi) prescribing a member's options for the payment of the member's benefits for the purpose of subclause 75(2)(b)(ii);
(zj) prescribing the information an administrator must file with the Superintendent after liquidating the assets of the plan;
(zk) prescribing, for the purpose of Section 84,
(zl) prescribing the costs related to an inspection or an inquiry that an administrator may be charged;
(zm) prescribing the information the Superintendent must post on the Superintendent's website;
(zn) respecting the manner in which the Superintendent or a person designated by the Superintendent is required to administer a plan upon assuming the provisional administration of the plan under Section 95;
(zo) respecting any matter or thing the Governor in Council considers necessary or advisable to effectively carry out the intent and purpose of this Act.
(2) The exercise by the Governor in Council of the authority contained in subsection (1) is a regulation within the meaning of the Regulations Act.
111 Subsection 54(2) of the Chapter 494 of the Revised Statutes, 1989, the Vital Statistics Act, as enacted by Chapter 29 of the Acts of 2000 and amended by Chapter 5 of the Acts of 2001, Chapter 31 of the Acts of 2001, Chapter 4 of the Acts of 2003 (Second Session), Chapter 10 of the Acts of 2004, Chapter 9 of the Acts of 2005, Chapter 42 of the Acts of 2005 and Chapter 8 of the Acts of 2008, is further amended by adding immediately after clause (o) the following clause:
112 Notwithstanding the subsection 33(2), an employer that, as at December 31, 2012, has five or more eligible employees has two years from that date to subscribe to a plan with the administrator of such a plan and register the eligible employees in the plan as members.
113 This Act has effect on and after January 1, 2013.
This page and its contents published by the Office of the Legislative Counsel, Nova Scotia House of Assembly, and © 2012 Crown in right of Nova Scotia. Created November 2, 2012. Send comments to legc.office@novascotia.ca.
