Pension Benefits Regulation

Pension Benefits Regulation, M.R. 39/2010 The Pension Benefits Act , C.C.S.M. c. P32 Regulation 39/2010 Registered March 26, 2010 bilingual version (HTML) Table of Contents Section PART 1 DEFINITIONS AND GENERAL MATTERS 1.1 Definitions 1.2 Plans, schemes and arrangements excluded from "pension plan" 1.3 Exemption for "specified individuals" 1.4 Limit for designated province 1.5 Temporary interruption in employment 1.6 Hearing procedures PART 2 PLAN REGISTRATION 2.1 Overview 2.2 Definition REGISTRATION 2.3 Application for registration 2.4 Required information 2.5 Notice of decision to refuse or cancel registration 2.6 Exemption from registration AMENDMENTS 2.7 Notice and filing of amendments 2.8 Notice of amendment to specified multi-employer plan or multi-unit pension plan 2.9 Non-compliant amendment 2.10 Consolidated plan 2.11 Refund of contributions to avoid revocation of registration 2.12 Refund of employer overpayment 2.13 Refund of excess solvency payments on termination or wind-up PART 3 PLAN ADMINISTRATION 3.1 Overview GENERAL PROVISIONS FOR ADMINISTRATORS AND EMPLOYERS 3.2 Fiscal year 3.3 Administrator to ensure compliance 3.4 Employer to administer small plan 3.5 Employer to provide information 3.6 Employer to be reimbursed for expenses ADMINISTRATION BY PENSION COMMITTEE 3.7 Pension committee to begin administering within 120 days 3.8 General rights and obligations of committee 3.9 Active member entitled to time off with pay 3.10 Member compensation and reimbursement 3.11 Non-voting member's rights and obligations 3.12 Provisions re pension committees 3.13 Procedures for electing or appointing committee members 3.14 Alternative appointment of committee members 3.15 Term of office 3.16 Filing vacancy for unexpired term 3.17 Rules of procedure and governance PENSION FUND INVESTMENT AND ADMINISTRATION 3.18 Investment and recording requirements 3.19 Fund holder 3.20 Pension fund held by insurance company 3.21 Responsibility for directing investments 3.22 Member-directed investments 3.23 Statement of investment policies and procedures (SIP) REPORTING TO REGULATOR 3.24 Administrator's name and address 3.25 Information may be filed electronically 3.26 Annual information return 3.27 Special reports 3.28 Administrator to file audited financial statements 3.29 Information to be included INFORMATION FOR MEMBERS AND OTHERS 3.30 Method of providing information 3.31 Documents to be provided on request 3.32 Plan summary 3.33 Annual statement 3.34 Statement on termination of active membership 3.35 Statement on retirement 3.36 Statement after pre-retirement death 3.37 Waiver of survivor benefit on pre-retirement death RECORDS 3.38 Retention of records EXTENSION OF TIME 3.39 Superintendent may extend time PART 4 FUNDING OF PENSION PLANS 4.1 Overview DIVISION 1 PAYMENT OF MEMBER AND EMPLOYER CONTRIBUTIONS 4.2 Due date for member contributions 4.3 Due date for employer contributions 4.4 Interest on late payments DIVISION 2 FUNDING OF DEFINED BENEFITS 4.5 Application INTERPRETATION AND DEFINITIONS 4.6 Meeting the tests for solvency 4.7 Definitions RESPONSIBILITY FOR FUNDING 4.8 Responsibility for funding PLAN REVIEWS 4.9 Administrator responsible for plan review 4.10 Who may conduct review 4.11 Actuarial valuation report and cost certificate 4.12 Review dates 4.13 Additional review after plan amendment 4.14 Preparation of actuarial valuation report and cost certificate 4.15 Deadline for filing report and certificate 4.16 Content of actuarial valuation report or cost certificate 4.17 Superintendent may require changes EMPLOYER CONTRIBUTIONS 4.18 Normal actuarial cost and special payments 4.18.0.1 PFAD amount 4.18.0.2 PFAD amount deemed to be nil 4.18.1 Securing special payments by letter of credit 4.19 Solvency deficiency on termination 4.20 Employer may increase rate of amortization 4.21 Repealed 4.22 Repealed 4.23 Repealed 4.24 Repealed 4.25 Specified multi-employer plans and multi-unit pension plans 4.26 Separate determinations USE OF SURPLUS 4.27 Use of surplus 4.28 Application for consent payment of available actuarial surplus to employer 4.29 Notice of proposed payment of available actuarial surplus REFUNDS FROM SOLVENCY RESERVE ACCOUNTS 4.29.1 Refund from solvency reserve account 4.29.2 Disclosure in annual statement TRANSFER DEFICIENCIES 4.30 Transfer deficiency PART 5 MEMBERSHIP, BENEFITS, CONTRIBUTIONS AND INTEREST DIVISION 1 MEMBERSHIP 5.1 Employees entitled to join plan 5.2 No surrender or commutation when member joins related plan 5.2.1 Ceasing to be an active member of a specified multi-employer plan or multi-unit pension plan DIVISION 2 BENEFITS AND CONTRIBUTIONS 5.3 Formulas to be uniform 5.4 Integration and coordination with government plans 5.5 Lump sum transferable to RRSP or RRIF 5.6 Requirements for determining commuted values 5.7 Commuted value determination and adjustment 5.8 Determining commuted value and adjustment on termination of plan 5.9 Interest on excess member contributions 5.10 Division of excess member contributions 5.11 Survivor's right to excess member contributions 5.12 Effect of DB-to-DC conversion on excess member contributions 5.13 Optional ancillary contributions with locked-in money 5.14 Ancillary benefits 5.15 Wording re equivalent benefits 5.16 Plan provisions for phased retirement benefits 5.16.1 Forfeiture of minimal benefit under specified multi-employer plan or multi-unit pension plan DIVISION 3 INTEREST 5.16.2 Minimum rate of interest 5.17 Interest on contributions — defined benefit provision 5.18 Interest on contributions — other plans 5.19 Interest on refunds, transfers or withdrawals 5.20 Interest on late pension payments 5.21 Rate of interest 5.22 Investment expenses and administration costs DIVISION 4 TRANSITIONAL 5.23 Pension under insured plan PART 6 VARIABLE BENEFITS 6.1 Overview 6.2 Definitions 6.3 Prescribed arrangement 6.4 Provision for VB pension 6.5 Waiver of death benefit 6.6 Transfers to VB account 6.7 Transfer from VB account 6.8 Maximum income payable 6.9 Commutation or surrender 6.10 Annual statement to VB participant 6.11 Statement after death of VB participant PART 7 TERMINATION AND WINDING UP OF PLANS 7.1 Overview 7.2 Interpretation 7.3 Termination of plan 7.4 Partial termination of plan 7.5 Exception 7.6 Notice of termination 7.7 Termination report 7.8 Payment on termination 7.9 Termination statement to members and beneficiaries 7.10 Winding up 7.11 Initial benefit if there is a solvency deficiency in a terminated plan 7.12 Requirement to amortize solvency deficiency 7.13 Partial benefits if employer bankrupt 7.14 Partial benefits when amortization not completed 7.15 Partial benefits when solvency deficiency in a specified multi-employer plan or multi-unit pension plan 7.15.1 Refunding residual solvency reserve 7.16 Annual information returns 7.17 Partial termination of plan PART 8 PREDECESSOR AND SUCCESSOR PLANS AND EMPLOYERS 8.1 Overview 8.2 Continuation of benefits under successor employer 8.3 Notice to persons affected 8.4 Information filed with the commission PART 9 SIMPLIFIED MONEY PURCHASE PENSION PLANS 9.1 Overview INTERPRETATION AND APPLICATION 9.2 Definitions 9.3 Application of Act and regulations ESTABLISHING A SIMPLIFIED PLAN 9.4 Contract to establish a simplified plan 9.5 Content of plan document 9.6 Maximum 250 employees ADMINISTERING A SIMPLIFIED PLAN 9.7 Employer to give administrator information re contributions 9.8 Notice of proposed amendments 9.9 Annual information return 9.10 Information for members and others EFFECT OF ADOPTING A NEW PLAN 9.11 If assets and liabilities of plan consolidated with simplified plan 9.12 Election when voluntary simplified plan replaces non-simplified plan TERMINATION OF A SIMPLIFIED PLAN 9.13 Termination if employer fails to remit 9.14 Termination of participation 9.15 Termination of whole or part of plan MISCELLANEOUS 9.16 Repealed 9.17 Specified multi-employer plan and multi-employer pension plan provisions do not apply PART 10 TRANSFERS AND WITHDRAWALS 10.1 Overview DIVISION 1 DEFINITIONS AND GENERAL PROVISIONS 10.2 Definitions and interpretation 10.3 Application 10.4 Locking in 10.5 Timing requirements for transfer DIVISION 2 TRANSFERS TO AND FROM LIRAs AND LIFs 10.6 Definitions 10.7 Registration of financial institutions 10.8 Registration required 10.9 Registration process 10.10 Transitional — registration of institutions with approved contracts 10.11 Revocation of registration LOCKED-IN RETIREMENT ACCOUNTS 10.12 Locked-in retirement account (LIRA) described 10.13 Administrator's general responsibilities 10.14 Transfer to LIRA must comply with this Part 10.15 LIRA is a prescribed plan 10.16 Permitted transfers to LIRA 10.17 Transferor's duties 10.18 Transferee's duties 10.19 Failure to comply with transferor's duties 10.20 Permitted transfers from LIRAs 10.21 Conditions precedent to transfer 10.22 Joint pension entitlement 10.23 Revocation of joint pension waiver 10.24 Death benefits under LIRA 10.25 Waiver of death benefit 10.26 Annual statement 10.27 Statement after transfer LIFE INCOME FUNDS 10.28 Life income fund (LIF) described 10.29 Fiscal period 10.30 Administrator's general responsibilities 10.31 Transfer to LIF must comply with this Part 10.32 LIF is a prescribed plan 10.33 Permitted transfers to LIF 10.34 Transferor's duties 10.35 Transferee's duties on transfer to a LIF 10.36 Failure to comply with transferor's duties 10.37 Transfer from LIF must comply with this Part 10.38 Permitted transfers from LIF 10.39 Conditions precedent to transfer 10.40 Death benefit under LIF 10.41 Waiver of death benefit 10.42 Annual statement 10.43 Other statements 10.44 Payment of retirement income to owner CHANGES TO LIRA AND LIF ADDENDA 10.44.1 Changes to LIRA addendum 10.44.2 Changes to LIF addendum 10.45 Repealed 10.46 Repealed 10.47 Repealed 10.48 Repealed 10.49 Repealed Sch. 1 LIRA Addendum Sch. 2 LIF Addendum DIVISION 3 TRANSFERS FROM A PENSION PLAN TO ANOTHER PLAN OR TO PURCHASE AN ANNUITY 10.49.1 Definitions 10.50 Transfers from a pension plan to another plan or to purchase an annuity 10.51 Transfer requirements DIVISION 4 ONE-TIME 50% TRANSFER FROM PENSION PLAN, LIRA OR LIF 10.52 Overview 10.53 Definitions 10.53.1 Waiver of entitlement to balance under prescribed RRIF 10.53.2 Prescribed RRIF deemed to allow waiver 10.54 One-time transfer under section 21.4 10.55 One-time transfer from pension plan 10.56 Application process 10.57 Time for completing transfer 10.58 Garnishing order before transfer completed 10.58.1 Failure to comply with administrator's duties DIVISION 5 LUMP SUM WITHDRAWAL BY NON-RESIDENT 10.59 Overview 10.60 Definitions 10.61 Application process for withdrawal 10.62 Administrator to complete withdrawal DIVISION 6 COMMUTATION OF SMALL PENSIONS AND WITHDRAWALS FROM SMALL LIRAs AND LIFs 10.63 Overview 10.64 Commutation of small pension 10.65 Small LIRA or LIF 10.66 Statement 10.67 Application process and payment DIVISION 7 COMMUTATION OR WITHDRAWAL ON SHORTENED LIFE EXPECTANCY 10.68 Overview 10.69 "Shortened life expectancy" defined 10.70 Commutation of pension 10.71 Withdrawal from LIRA or LIF DIVISION 8 TRANSFER BY SPOUSE OR COMMON-LAW PARTNER 10.72 Overview 10.73 Transfer by surviving spouse or common-law partner 10.74 Transfer of pension benefit credit on division 10.75 Making an election 10.76 Transfer to be made 10.77 Transfer to another pension plan DIVISION 9 GARNISHMENT 10.78 Overview 10.79 Prescribed retirement benefit plans 10.80 Amounts subject to garnishment DIVISION 10 REFUND TO DESIGNATED BENEFICIARY OR ESTATE 10.81 Overview 10.82 Making an election 10.83 Refund DIVISION 11 WITHDRAWAL OR TRANSFER FROM PRESCRIBED PLAN AT OR AFTER AGE 65 10.84 Overview 10.85 Definitions 10.86 Application for withdrawal or transfer 10.87 Failure to comply with administrator's duties DIVISION 12 WITHDRAWALS FROM A LIRA OR LIF DUE TO FINANCIAL HARDSHIP 10.88 Overview 10.89 Definitions 10.90 Low expected income 10.91 Medical expenses 10.92 Rental arrears 10.93 Mortgage arrears 10.94 Application for a hardship withdrawal 10.95 Administrator's duties PART 11 DIVISION OF PENSION OR PENSION BENEFIT CREDIT ON RELATIONSHIP BREAKDOWN 11.1 Overview 11.2 Definitions 11.3 Portion subject to division 11.4 Division options and valuation 11.5 Interest 11.6 Repealed 11.7 Owner's share after division 11.8 Pension payable after division as two separate pensions 11.9 Repealed 11.10 Waiver after death of member 11.11 Statement for division of pension 11.12 Statement for division of prescribed plan 11.13 Statements to be provided without charge 11.14 Agreement or order PART 11A ADMINISTRATIVE PENALTIES 11A.1 Administrative penalties PART 12 REPEAL AND COMING INTO FORCE 12.1 Repeal 12.2 Coming into force Schedule A Statements B Administrative Penalties C Notice of Administrative Penalty PART 1 DEFINITIONS AND GENERAL MATTERS Definitions 1.1 The following definitions apply in this regulation. "accepted actuarial practice" means an actuarial practice that is consistent with the applicable standards of practice published by the Canadian Institute of Actuaries. (« normes actuarielles reconnues ») "Act" means The Pension Benefits Act . («  Loi  ») "annuity" means a contractual non-commutable life annuity that (a) is issued or to be issued by an insurer licensed or otherwise authorized under the laws of Canada or of a province to carry on in Canada an annuities business; (b) commences at retirement age; and (c) is an annuity described in paragraph 60(l) of the Income Tax Act (Canada). (« rente ») "certified copy" , in relation to a document to be filed or provided under this regulation, means a copy that is certified to be a true copy of the original document by (a) the person required or permitted to file or provide it; or (b) by an authorized official of such a person. (« copie certifiée ») "commission" means The Pension Commission of Manitoba. (« Commission ») "commutation" of a pension, or part of a pension, means the substitution of a lump sum amount for the pension, or that part of the pension. (« commutation » ou « conversion ») "commuted value" of the pension and other benefits that a person has a present or future entitlement to receive under a plan means, as at any particular time, (a) the actuarial present value of the benefits as at the particular time, if they are provided for under a defined benefit provision; or (b) the monetary value of the person's account under the plan at the particular time, if the benefits are provided for under a defined contribution provision, a locked-in retirement account (LIRA) or a life income fund (LIF). (« valeur commuée ») "defined benefit provision" means a plan provision under which a member's pension (a) is to be determined with reference to the member's remuneration for each year of employment, or for a selected number of years of employment; or (b) is expressed as a fixed amount for each year of employment, or as a fixed periodic amount. (« disposition à prestations déterminées ») "defined contribution provision" means a plan provision under which a member's pension is to be determined with reference to (a) amounts required to be contributed to the member's account by the member and the member's employer; and (b) the investment earnings and losses and any other amounts credited or allocated to the member's account. (« disposition à cotisations déterminées ») "insured plan" means a plan under which all benefits payable under the plan are insured by a contract with an insurance company authorized to carry on business in Canada under which the insurance company is contractually obligated to pay the pension and other benefits set forth in the plan. (« régime garanti ») "LIF" , "life income fund" , "LIRA" and "locked-in retirement account" have the same meaning as in Part 10 (transfers and withdrawals). (« CRI », « compte de retraite immobilisé », « FRV » et « fonds de revenu viager ») "normal retirement age" means the normal retirement age required to be specified in a plan under subsection 21(7) of the Act. (« âge normal de la retraite ») "pension fund" means the fund maintained to provide benefits under a plan. (« caisse de retraite ») "plan" , except where it refers to a prescribed plan, means a pension plan as defined in the Act. (« régime ») "RRIF" means a registered retirement income fund as defined in the Income Tax Act (Canada). (« FERR ») "RRSP" means a registered retirement savings plan as defined in the Income Tax Act (Canada). (« REER ») "significant shareholder" , in relation to a corporation, means an individual who, alone or in combination with a parent, brother, sister, spouse, common-law partner or child of the individual, owns or has a beneficial interest, directly or indirectly, in shares that represent 10% or more of the voting entitlement attached to all the shares of the corporation. (« actionnaire important ») "spouse" of a person means the individual who is married to that person. (« conjoint ») M.R. 205/2011 Plans, schemes and arrangements excluded from "pension plan" 1.2 For the purpose of the definition "pension plan" in subsection 1(1) of the Act, which excludes prescribed plans, schemes and arrangements, the following are prescribed: (a) an employees' profit sharing plan as defined in subsection 144(1) of the Income Tax Act (Canada); (b) a deferred profit sharing plan as defined in subsection 147(1) of the Income Tax Act (Canada); (c) a retirement compensation arrangement as defined in subsection 248(1) of the Income Tax Act (Canada); (d) an arrangement to provide a retiring allowance as defined in subsection 248(1) of the Income Tax Act (Canada); (e) a supplemental pension plan under which the employer is required to make contributions, if the benefits provided or the contributions payable under the supplemental plan consist entirely of benefits or contributions, as the case may be, in excess of the maximum benefit or contribution limit imposed by the Income Tax Act (Canada), on the plan to which it is supplemental . Exemption of plan for "specified individuals" 1.3 A defined benefit pension plan, or a pension plan with a defined contribution provision, in which every member is a "specified individual" as described in subsection 8515(4) of the Income Tax Regulations made under the Income Tax Act (Canada) is exempt from all provisions of The Pension Benefits Act except (a) section 23; (b) subsections 21(1) to (18), and (25) to (27); (c) section 21.3; (d) section 21.4; (e) section 24; (f) [repealed] M.R. 205/2011 ; (g) section 28; (h) subsections 31(2) to (9) (division of benefits); and (i) subsections 31(1) and (1.1) and section 31.1. M.R. 205/2011 ; 63/2021 Designated province 1.4 Each province and territory of Canada is hereby designated as a designated province for the purpose of the definition "designated province" in subsection 1(1) of the Act. Limit for temporary interruption in employment 1.5 For the purpose of the definition "temporary interruption in employment" in subsection 1(1) of the Act, the prescribed length is 54 weeks. Hearing procedures 1.6 The commission may establish procedures for the conduct of its hearings, reviews and appeals. M.R. 205/2011 PART 2 PLAN REGISTRATION Overview 2.1 Section 18 of the Act requires the administrator of a pension plan for employees in Manitoba to file it with the commission for registration within 60 days after it is established. The Part sets out the process for the registration of a pension plan and the filing of amendments to a plan or documents that support the operation of a plan. Definition 2.2 In this Part and Part 3, "supporting document" , in relation to a plan, means (a) any document that establishes or amends the plan, such as a resolution, by-law or collective agreement; and (b) any document that supports the operation of the plan or the associated pension fund, such as a trust deed or agreement, a reciprocal transfer agreement, an insurance contract or a by-law or resolution relating to the plan. REGISTRATION Application for registration 2.3(1) An application for registration of a plan must be made using a form approved by the superintendent and must include the information required by the approved form. 2.3(2) The application must be accompanied by (a) certified copies of the plan text and all supporting documents of the plan; (b) in the case of a plan with a defined benefit provision, a copy of the actuarial valuation report and cost certificate prepared for the plan under section 4.9 (administrator responsible for review); (c) a copy of the explanation or summary of the plan provided or to be provided to plan members and any employees who are eligible to become members under section 3.32 (plan summary); and (d) payment of the following registration fee: (i) for a simplified money purchase pension plan, $750 plus the lesser of (A) $18,000, and (B) $4.50 times the total number of active members of the plan, (ii) for any other plan, the lesser of the following amounts: (A) $18,000, and (B) $7.20 times the total number of active members on the employer's payroll, but in no event less than $120. M.R. 205/2011 ; 187/2013 Required information 2.4 The plan must set out or include the following: (a) the method of appointing the administrator; (b) the powers and duties of the administrator, including the duty to provide members with information and documents required to be disclosed under the Act and the regulations; (c) the conditions for membership; (d) the benefits and entitlements provided under the plan on one or more of the following events: (i) the termination of active membership, (ii) retirement, (iii) death, (iv) the termination of the plan; (e) the normal retirement age; (f) the requirements for entitlement to any pension, ancillary benefit, optional ancillary benefit or other benefit; (g) if the plan provides a member with benefit options, the deadline for selecting an option and the consequences, if any, of not meeting the deadline; (h) the contributions required or permitted, or the method for calculating contributions, and any formula for allocating contributions; (i) the method of calculating benefits payable; (j) the method of calculating interest to be credited to contributions; (k) by whom and how the costs of administering the plan and pension fund will be paid; (l) provisions for funding the plan and for creating and maintaining the pension fund; (m) the entitlement to, and use of, a surplus in the plan while it is a going concern and upon termination of the plan; (n) how assets are to be allocated on a winding up of the plan; (o) particulars of any predecessor plan under which members of the plan may be entitled to pension and other benefits; (p) who may amend the plan and how such amendments are to be made. M.R. 205/2011 ; 63/2021 Notice of decision to refuse or cancel registration 2.5 If registration of a plan is refused under clause 10(1)⁠(c) of the Act or cancelled under clause 10(1)⁠(d) of the Act (duties and functions of the commission), the commission must give notice of the decision along with reasons for the decision to the applicant for registration or the administrator, as the case may be. Exemption from registration 2.6 If a plurality of the members of a plan employed in Canada are employed in a designated province in relation to which there is an agreement under section 11 of the Act (reciprocal agreements re administration of pension plans), the plan is, subject to that agreement, exempt from such provisions of the Act and this regulation as the agreement provides. M.R. 205/2011 AMENDMENTS Notice and filing of amendments 2.7(1) Within 60 days after an amendment is made (a) to the text of a plan; or (b) to a supporting document, if the amendment relates to the operation of the plan; the administrator must file a certified copy of the amendment with the superintendent, together with a submission form specified by the superintendent. 2.7(2) Within 60 days after an amendment affecting the rights, benefits or obligations of members is made to a plan or a supporting document, the administrator must give written notice of the amendment to all affected members and other beneficiaries and any bargaining agent representing affected members. The notice must contain a summary of the amendment and the administrator's contact information. 2.7(3) Upon request by the superintendent, the administrator must provide any additional information that the superintendent requires to determine whether the plan as amended continues to qualify for registration. M.R. 63/2021 Notice of amendment to specified multi-employer plan or multi-unit pension plan 2.8(1) Clause 26(5)⁠(b) of the Act (no reduction of accrued benefits) requires the superintendent's approval for an amendment to a specified multi-employer plan or a multi-unit pension plan that is necessary for the plan to meet the tests for solvency set out in Part 4. When filing the certified copy of such an amendment, the administrator must also file with the superintendent (a) an actuarial valuation report that (i) provides the current financial position and funding requirements of the plan, (ii) demonstrates that the rate and amount of required contributions to the plan following the amendment will be sufficient to meet the tests for solvency set out in Part 4, and (iii) indicates whether the amendment affects benefits that are subject to the law of another jurisdiction; (b) if applicable, a copy of the notice given under subsection (3) and a declaration by the administrator that notice was given to all persons as required by that subsection; (c) evidence confirming that the amendment is permitted by the terms of the plan; and (d) any additional information required by the superintendent. 2.8(2) The administrator of a specified multi-employer plan or a multi-unit pension plan must provide written notice of the amendment in accordance with subsection (3) to (a) each member of the plan; and (b) every beneficiary who is entitled to a benefit under the plan, whether it is currently being received or will be received in the future; who could be adversely affected by the amendment. 2.8(3) Written notice of the amendment must be sent at least 60 days before the effective date of the amendment and must include (a) an explanation or summary of the amendment; (b) information setting out where a recipient of the notice may inspect or obtain a copy of the proposed amendment; and (c) a statement that the recipient of the notice has the right to make written representations to the administrator on the amendment, and information on how to contact the administrator. M.R. 63/2021 Non-compliant amendment 2.9(1) After reviewing an amendment to a plan or a supporting document, the superintendent must notify the administrator if, in the opinion of the superintendent, the amendment, or any part of it, fails to comply with the Act or this regulation. If only part of the amendment fails to comply, the notice must identify that part. 2.9(2) An amendment or part of an amendment identified in the notice as being non-compliant is void, and the administrator must adjust or reverse any transactions that were made based on the void amendment or part. 2.9(3) For the purpose of this section, any amendment to a plan that results in a reduction of the plan's solvency ratio to less than 0.85 is considered to be non-compliant. M.R. 142/2021 Consolidated plan 2.10 If more than four amendments are made to the plan text, the superintendent may, by written notice, require the administrator to file a revised version of the plan text that incorporates all of the amendments. Within 180 days after receiving the notice, the administrator must file a certified copy of the plan text, as amended. Refund of contributions to avoid revocation of registration 2.11(1) Despite subsections 21(1), (2) and (3) (requirements re pensions) and 26(2) (restriction on payments out of plan) of the Act, an employer may, upon making a written request to the commission accompanied by such information supporting the request as the commission considers sufficient and on receiving the commission's prior written consent, refund a contribution made under a pension plan by a member or the employer to the person who made the contribution to the extent that the refund is necessary to avoid the revocation of the plan's registration under the Income Tax Act (Canada). 2.11(2) Despite subsection 26(5) (no reduction of credits) of the Act, upon the written request of an employer to the commission accompanied by such information supporting the request as the commission considers sufficient and on receiving the commission's prior written approval, a pension plan may be amended to reduce the pension benefit credits of a member to the extent necessary to avoid the revocation of the plan's registration under the Income Tax Act (Canada). Refund of employer overpayment 2.12 An employer may refund a contribution made under a pension plan by the employer if the contribution was the result of an overpayment and (a) within one year after the overpayment occurred, the employer makes a written request to the superintendent, accompanied by such information supporting the request as the superintendent considers sufficient; (b) the superintendent consents to the refund in writing; and (c) the refund is permitted under the Income Tax Act (Canada). The refund may be made despite subsections 21(1), (2) and (3) (requirements re pensions) and 26(2) (restriction on payments out of plan) of the Act. M.R. 63/2021 Refund of excess solvency payments on termination or wind-up 2.13(1) This section applies if (a) a plan is being terminated or wound up under Part 7; (b) the administrator of the plan files a termination report under subsection 7.7(1) or 7.10(4); (c) the report establishes that the plan has a solvency deficiency; (d) based on the estimated amount of the solvency deficiency as established in the report, the employer makes a solvency payment to fund the deficiency; and (e) on winding up the plan, the administrator determines that the amount of the solvency payment was larger than required to meet the plan's pension and other benefit obligations. 2.13(2) In the circumstances set out in subsection (1), the employer may receive a refund of the residual amount that is not required to meet the plan's pension and other benefit obligations if (a) the employer makes a written request to the superintendent, accompanied by such information supporting the request as the superintendent considers sufficient; and (b) the superintendent consents to the refund in writing. The refund may be made despite subsections 21(1), (2) and (3) (requirements re pensions) and 26(2) (restriction on payments out of plan) of the Act. M.R. 63/2021 PART 3 PLAN ADMINISTRATION Overview 3.1 This Part sets out various rules respecting the administration of a pension plan and the associated pension fund. These rules supplement the provisions of the Act governing the administration of pension plans, and the rules for specific circumstances found elsewhere in this regulation. GENERAL PROVISIONS FOR ADMINISTRATORS AND EMPLOYERS Fiscal year 3.2 The fiscal year of a plan (a) is from January 1 to December 31 in each year, unless otherwise provided in the plan; and (b) must not exceed 12 months without the written approval of the superintendent. Administrator to ensure compliance 3.3 The administrator of a plan must (a) administer the plan and its pension fund in accordance with the Act and this regulation; (b) ensure that the plan and its pension fund comply with the Act and this regulation; and (c) if the plan is terminated, ensure that it is wound up in accordance with the Act and this regulation. M.R. 63/2021 Employer to administer small plan 3.4 Clause 28.1(1)⁠(d) of the Act (who may be administrator)requires a plan with fewer than the prescribed number of members to be administered by the employer. For the purpose of this provision, the prescribed number is 50. Employer to provide information 3.5 An employer who does not act as administrator of a plan must provide the administrator with the information that the administrator requires in order to administer the plan and discharge his or her duties as the administrator. Employer to be reimbursed for expenses 3.6 An employer is entitled to be reimbursed from a plan's pension fund for the plan's administrative expenses if (a) the employer pays those expenses from its own resources to another person directly; and (b) the plan provides that (i) the plan's administrative expenses are payable from the plan's pension fund, and (ii) an employer who pays those expenses to another person directly is entitled to be reimbursed for those expenses. ADMINISTRATION BY PENSION COMMITTEE Pension committee to begin administering within 120 days 3.7(1) If clause 28.1(1)⁠(f) of the Act requires a plan to be administered by a pension committee, the committee must be established and must begin administering the plan within 120 days after that clause begins to apply to the plan. 3.7(2) If a plan is established after this section comes into force, the employer must administer it until the pension committee is established. Rights and Obligations of Pension Committee and its Members General rights and obligations of committee 3.8 A pension committee has (a) all the rights, powers and obligations of an administrator under the Act and this regulation; (b) the power and the obligation to determine matters of policy and interpretation in the administration of the plan in accordance with its terms; (c) the power to make recommendations to the employer regarding amendments to the plan or the supporting documents; and (d) any other rights, powers and obligations assigned to the administrator by or under the plan or the supporting documents. Active member entitled to time off with pay 3.9 An active member of a plan who is a member of the plan's pension committee is entitled to take time off from his or her regular work duties, without loss of pay or other benefits, in order to carry out his or her duties on the pension committee. Member compensation and reimbursement 3.10 A plan or the supporting documents may provide for one or both of the following: (a) the payment of compensation from the pension fund to a member of the pension plan committee for attendance at meetings or for the performance of other duties as a member, at any time beyond regular work hours for which the member is paid by an employer under the plan; (b) the payment of reimbursement from the pension fund to a committee member for expenses reasonably incurred by the member for carrying out his or her duties as a committee member. Non-voting member's rights and obligations 3.11 A non-voting member of a pension committee has all the rights and obligations of a voting member of the committee, including the right to receive notice of and participate in meetings of the committee, except the right to vote on any matter to be decided by the committee. Plan Provisions Provisions re pension committee 3.12 If a plan is required to be administered by a pension committee, the plan or the supporting documents must (a) give the pension committee the rights, powers and obligations necessary for the committee to administer the plan in accordance with the Act and this regulation; (b) set the number of members to be appointed or elected to the committee; (c) establish the term or terms of office for members of the committee; and (d) establish procedures for electing or appointing committee members that are consistent with sections 3.13 to 3.16. Procedures for electing or appointing committee members 3.13(1) The procedures for electing committee members may provide for the elections to be conducted at a meeting of members and other beneficiaries, by mail, by electronic voting, by the casting of ballots at a specified location, or by any combination of these methods. 3.13(2) The procedures for the election of a committee member by active members must (a) require the employer to provide written notice of the nomination and election process to all active members; (b) allow active members to nominate persons to fill the position by filing written nominations with the employer within the nomination period specified in the notice referred to in clause (a); (c) require the employer to provide, at the end of the nomination period, written notice of the nominees and the voting process to all active members; (d) provide for the vote to be held by secret ballot, with each active member entitled to one vote for each committee member to be elected by the active members; and (e) require the employer to notify the active members of the election results. 3.13(3) For the purpose of subsection (2), the procedures may allow a notice to active members who regularly work at the employer's workplace to be given to them by posting it in one or more areas of the workplace that are regularly accessed by them. 3.13(4) The procedures for the election of a committee member by non-active members and other beneficiaries must (a) require the administrator to provide written notice of the nomination and election process to all non-active members and other beneficiaries; (b) allow non-active members and other beneficiaries to nominate persons to fill the position by filing written nominations with the administrator within the nomination period specified in the notice referred to in clause (a); (c) require the administrator to provide, at the end of the nomination period, written notice to all non-active members and other beneficiaries of the nominees and of the voting process; (d) provide for the vote to be held by secret ballot, with each non-active member and each other beneficiary entitled to one vote for each committee member to be elected by the non-active members and other beneficiaries; and (e) require the administrator to notify the non-active members and other beneficiaries of the election results. 3.13(4.1) If a pension committee does not have a voting member who was elected or appointed by the plan's non-active members and other beneficiaries, then for the purpose of subclause 28.1(1.2)⁠(b)⁠(ii) of the Act the plan must, at least once a year, (a) determine whether the plan has any non-active members or other beneficiaries that could elect or appoint a voting member; and (b) if so, follow the procedure set out in subsection (4). 3.13(5) If the plan or the supporting documents provides for committee members to be elected at a meeting, the plan or the supporting documents must establish, or require the committee to establish, rules of procedure for (a) calling a meeting for the purpose of the election; (b) ensuring that written notice of the date, time, place and purpose of the meeting is given to all members and other beneficiaries and to the employer; (c) ensuring that the notice includes information about the nominees for the positions to be filled at the meeting; and (d) conducting the election at the meeting. 3.13(6) The plan or the supporting documents must provide for the appointment of at least one pension committee member from the active members to represent active members if no member is elected by them. 3.13(7) The plan or the supporting documents must provide for the appointment of at least one pension committee member from the non-active members to represent non-active members and other beneficiaries if no non-active member is elected by them. M.R. 63/2021 Alternative appointment of committee members 3.14 Despite section 3.13, (a) if a majority of the active members are represented by a union as defined in The Labour Relations Act , the plan or the supporting documents must permit the union to appoint a person as a pension committee member instead of providing for a person to be elected by the active members; and (b) if a majority of the non-active members are represented by an association, the plan or the supporting documents must permit the executive of the association to appoint a person as a pension committee member instead of providing for a person to be elected by the non-active members. Term of Office Term of office 3.15(1) The term of office of a person elected or appointed as a pension committee member must not exceed three years. 3.15(2) A member of the pension committee continues to hold office after the end of his or her term until he or she is reappointed or re-elected or a successor is appointed or elected. Filling vacancy for unexpired term 3.16 The procedures set out in the plan or the supporting documents for electing or appointing committee members must provide for a vacancy to be filled for the balance of the unexpired term within 120 days after it arises, unless the unexpired term is less than 120 days. Pension Committee Rules Rules of procedure and governance 3.17(1) A pension committee must establish written rules of procedure and governance for exercising its powers and discharging its duties in accordance with the Act, this regulation and the terms of the plan. 3.17(2) Subject to the plan or the supporting documents, the rules of procedure and governance must (a) provide for the election or appointment of a chair, a vice-chair and a secretary, and any other officers that the committee considers advisable; (b) set out the powers and duties of the committee's officers; (c) govern the making of recommendations respecting plan amendments to the employer; (d) include provisions respecting meetings of the committee, including (i) requiring meetings at regular intervals, and set the dates, times and places of those meetings, (ii) establishing procedures for changing the date, time or place of a regular meeting and govern the notice to be given of the change, (iii) establishing procedures for calling and holding special meetings of the committee, and (iv) governing the conduct and procedures of meetings, including the voting and quorum requirements for the transaction of business; (e) include provisions governing the appointment, remuneration, supervision and evaluation of any delegates, agents or service providers; and (f) require the rules to be reviewed at least once every three years; and may include any other rules that the committee considers necessary or advisable for the operation, oversight, management and administration of the plan. 3.17(3) In the event of a conflict between a provision of the committee's rules and the plan or the supporting documents, the latter prevails unless the plan or supporting documents provide otherwise. PENSION FUND INVESTMENT AND ADMINISTRATION Investment and recording requirements 3.18 The administrator of a plan must ensure that (a) money in the pension fund is invested in accordance with section 6 and Schedule III of the Pension Benefits Standards Regulations, 1985 (Canada), as amended from time to time; and (b) a record of all investments held in the pension fund is maintained in accordance with section 7 of the Pension Benefits Standards Regulations, 1985 (Canada), as amended from time to time. Fund holder 3.19 The pension fund of a plan must be held in one or more of the following ways: (a) by an insurance company under a contract for insurance between the company and the administrator; (b) by a trust company incorporated under the laws of Canada or of a province or territory of Canada, under a written trust agreement between the company and the administrator; (c) under a written trust agreement between the administrator and three or more trustees (i) each of whom is an individual, (ii) at least three of whom reside in Canada, and (iii) at least one whom is none of the following: (A) the employer, (B) a significant shareholder of the employer, (C) if the employer is a partnership, a member of that partnership, (D) an officer or employee of the employer; (d) by a corporation established by an Act of Parliament or of the Legislature of a province or territory of Canada to administer one or more public sector plans; (e) by a pension fund society under the Pension Fund Societies Act (Canada); (f) under the Government Annuities Act (Canada). Pension fund held by insurance company 3.20 If a pension fund is to be held by an insurance company under individual contracts for each member, those contracts must (a) be held on the terms of an express trust whose trustees are or include a trust company referred to in clause 3.19(b) or at least two individual trustees; and (b) be issued or assigned to the trustees. Responsibility for directing investments 3.21 The plan must contain a provision stating who — the member or the plan administrator — is responsible for directing the plan's investments, or that both are responsible for directing the investments. Member-directed investments 3.22 If the plan allows members to make investment decisions, the administrator must ensure that (a) the plan offers sufficient investment options to enable members to make prudent investment choices; and (b) the investment options must be diversified and involve varying degrees of risk and expected return, and also allow the creation of portfolios that are generally well-adapted to the needs of the members. Statement of investment policies and procedures (SIP) 3.23(1) The administrator must establish a written statement of investment policies and procedures (SIP) respecting the plan's portfolio of investments and loans in accordance with section 7.1 of the Pension Benefits Standards Regulation, 1985 (Canada), as amended from time to time. 3.23(2) If investments held under a defined contribution provision are entirely directed by the administrator, the SIP must contain a description of the risk factors that may affect the value of the assets of the plan as a whole, and the relationship of those factors to the investment policies and procedures. 3.23(3) If the plan's investments are directed entirely by the members, the SIP must include a description of the factors that may affect the value of the assets of the plan as a whole, and the relationship of those factors to the types of investment options offered. 3.23(4) Within 60 days after establishing the SIP, the administrator must provide a copy of it to each of the following: (a) any pension committee (other than a pension committee that is the administrator) or pension advisory committee constituted in accordance with the terms of the plan; (b) the fund holder and any other custodian of the plan's pension fund; (c) the plan's actuary, in the case of a plan with a defined benefit provision; (d) any agent employed by the administrator to do anything to be done in the administration of the plan or in the administration and investment of the pension fund; (e) a bargaining agent or association that represents members or other beneficiaries; (f) an authorized agent for any person or organization entitled to a copy under any of clauses (a) to (e). 3.23(5) The administrator must review and confirm or update the SIP at least once each year. 3.23(6) Within 60 days after amending the SIP, the administrator must provide a copy of the amendment, or of the SIP as amended, to each person or organization entitled to a copy of the SIP. 3.23(7) Within 180 days after the end of each fiscal year of a plan, the administrator must file with the superintendent a copy of the plan's latest SIP. M.R. 63/2021 REPORTING TO REGULATOR Administrator's name and address 3.24(1) A plan administrator must ensure that the superintendent is notified in writing of the administrator's name and address within 30 days after becoming the administrator.

3.24(2) The administrator must notify the superintendent in writing of any change in the name or address of the administrator within 60 days after that change. Information may be filed electronically 3.25 Information to be filed with the commission or the superintendent may be filed electronically if it is filed in a form and manner approved by the superintendent. Annual information return 3.26(1) The annual information return to be filed under subsection 18(4) of the Act (a) must be filed with the commission within 180 days after the end of the plan's fiscal year; (b) must be filed on a form approved by the superintendent for that purpose and contain the information specified by the form; and (c) must be accompanied by payment of the following fee: (i) for a simplified money purchase pension plan, $750 plus the lesser of (A) $18,000, and (B) $4.50 times the total number of active members of the plan, (ii) for any other plan, the lesser of the following amounts: (A) $18,000, and (B) $7.20 times the total number of active members on the employer's payroll, but in no event less than $120. 3.26(2) The form approved by the superintendent for an annual information return (a) may specify any information required by the superintendent or the commission to carry out their duties under the Act and this regulation; and (b) may be different for different types of plans. M.R. 205/2011 ; 187/2013 Special reports 3.27 The commission or the superintendent may, upon written notice, require an administrator or employer to prepare and file a special report in respect of a plan or any part of a plan. The report must be prepared as of a date specified in the notice. Financial Statements Administrator to file audited financial statements 3.28(1) Except as otherwise provided in this section, within 180 days after the end of each fiscal year of a plan, the administrator must file with the commission the pension fund's audited financial statements for the fiscal year. 3.28(2) The superintendent may, by written notice to the administrator, require the financial statements to be filed within a shorter period after the end of the fiscal year, and the administrator must file them within the period specified in the notice. 3.28(3) Subject to subsection (4), subsection (1) does not apply to a plan without a defined benefit provision if (a) the market value of the plan's assets as at the end of the fiscal year is less than $5,000,000; or (b) all funds of the plan are held (i) by one insurance company, (ii) in the pooled funds of one trust company, or (iii) in an annuity. 3.28(4) The exemptions in subsection (3) do not apply to a specified multi-employer plan, a multi-unit pension plan or a plan established by a pension fund society. 3.28(5) Subsection (1) does not apply in respect of a fiscal year that ended before this section came into force. M.R. 205/2011 ; 63/2021 Information to be included 3.29 The financial statements to be filed under section 3.28 must (a) disclose each investment of the pension fund that has a market value greater than 2% of the market value of all the investments of the pension fund, itemized into the following categories: (i) insured contracts, (ii) mutual funds, pooled funds and segregated funds, (iii) demand deposits and cash on hand, (iv) short-term notes and treasury bills, (v) term deposits and guaranteed investment certificates, (vi) mortgage loans, (vii) real estate, (viii) real estate debentures, (ix) resource properties, (x) venture capital, (xi) corporations referred to in subsection 11(2) of Schedule III of the Pension Benefits Standards Regulations, 1985 (Canada), as amended from time to time, (xii) employer-issued securities, (xiii) Canadian stocks other than investments referred to in subclauses (i) to (xii), (xiv) non-Canadian stocks other than investments referred to in subclauses (i) to (xii), (xv) Canadian bonds and debentures other than investments referred to in subclauses (i) to (xii), (xvi) non-Canadian bonds and debentures other than investments referred to in subclauses (i) to (xii), (xvii) investments other than investments referred to in subclauses (i) to (xvi); (b) include all information that the Handbook of the Canadian Institute of Chartered Accountants , as amended from time to time, requires to be set out in the financial statements of a pension fund; and (c) must be accompanied by the report of the auditor of the financial statements. M.R. 205/2011 ; 63/2021 INFORMATION FOR MEMBERS AND OTHERS Method of providing information 3.30 Except as otherwise provided in this regulation or the terms of a plan, any information or document to be provided by an administrator to a member or other beneficiary of a plan, or to a current or former spouse or common-law partner of a member, may be (a) sent by ordinary mail to the person at his or her last address known to the administrator; (b) sent by e-mail to the person; or (c) provided in another manner that has been approved by the superintendent. Documents to be provided on request 3.31(1) Subject to subsection (4), within 30 days after receiving a written request, the administrator must provide a copy of all or any part of a document described in subsection (2) to each of the following persons who makes a request for it under that subsection: (a) a member or other beneficiary; (b) the spouse or common-law partner of a member; (c) an employer, or any person required to make contributions on an employer's behalf; (d) a bargaining agent or association that represents members or other beneficiaries; (e) an authorized agent for any of the persons referred to in clauses (a) to (d). 3.31(2) A person referred to in subsection (1) may, by written notice, request the administrator to provide a copy of all or any part of any of the following documents: (a) the current plan text, including all amendments filed with the commission under Part 2 (plan registration); (b) any other document required to be filed with the commission or superintendent; (c) the provisions of any previous plan, if the current plan is a continuing plan of the previous plan, including amendments; (d) the most recent annual information return filed with the commission; (e) in the case of a plan with a defined benefit provision, the most recent actuarial valuation report and cost certificate filed with the commission; (f) the most recent annual financial statements of the pension fund; (g) a report filed under Part 7 (termination or winding up of plan); (h) the administrator's current statement of investment policies and procedures required under section 3.23; (i) those parts of an agreement concerning the purchase or sale of a business or the assets of the business that relate to the plan. 3.31(3) To recover administrative costs, the administrator may charge a reasonable fee for providing a copy of a document under this section. 3.31(4) The administrator is not required to provide a copy of a document under this section (a) to a person who has not paid the fee charged under subsection (3); or (b) if a copy of it was provided to the person, or an authorized agent of the person, within the preceding 365 days. 3.31(5) Within 30 days after receiving a written request, the administrator must provide to a member's spouse or common-law partner, or his or her authorized agent, a copy of any information provided to the member under section 3.32, 3.33 or 3.34. M.R. 205/2011 Plan summary 3.32(1) The administrator must provide a summary of the plan to members or employees who are eligible or are required to become active members of the plan as follows: (a) if a new plan is established for existing employees, the summary must be provided to each member within 60 days after the effective date of the plan; (b) if an employee is required or becomes eligible to become a member of an existing plan, the summary must be provided to the employee (i) at least 60 days before he or she is required or becomes eligible to become a member, or (ii) within the first 60 days of his or her employment, if he or she is required or becomes eligible to become a member within that 60-day period. 3.32(2) The plan summary must include (a) the name of the plan; (b) the plan's registration number under the Income Tax Act (Canada); (c) a description of the plan and the rights, benefits and obligations of the members under the plan; and (d) if the plan has an optional ancillary benefit provision, (i) a description of the optional ancillary benefits available on conversion, (ii) a summary of the method used to convert optional ancillary contributions to optional ancillary benefits, and the terms and conditions for electing to make the conversion, and (iii) a statement that there is a risk of forfeiture of part of the optional ancillary contributions under the Income Tax Act (Canada) if there are insufficient optional ancillary benefits available at the time of conversion to completely use all the optional ancillary contributions. Annual statement 3.33 Within 180 days after the end of each fiscal year of a plan, the plan's administrator must provide each active member with an annual statement that meets the applicable requirements of Schedule A (Statements). Statement on termination of active membership 3.34(1) Subject to subsection (2), within 60 days after a member's active membership in a plan is terminated, the administrator must provide to the member a statement that complies with the applicable requirements of Schedule A (Statements). 3.34(2) When an administrator is not given immediate notice of the termination of a member's active membership, the administrator must comply with subsection (1) within 60 days after the administrator becomes aware of the termination of active membership. Statement on retirement 3.35(1) The administrator must provide a retirement statement that complies with the applicable requirements of Schedule A (Statements) to a member (a) within 60 days after receiving the member's completed application for the commencement of a pension; and (b) within 60 days before the member's normal retirement date, if the member's pension has not commenced before that date. 3.35(2) Before accepting a waiver under subsection 23(4) of the Act (waiving of joint pension) from a member's spouse or common-law partner, the administrator must ensure that (a) the spouse or common-law partner has been provided with a copy of the member's retirement statement under subsection (1); (b) the form of the waiver is the form approved by the superintendent for this type of waiver; and (c) the waiver has been signed by the spouse or common-law partner, in the presence of a witness and apart from the member, within 60 days before the commencement of the member's pension. Statement after pre-retirement death 3.36 Within 60 days after receiving proof of death of a member who died before the commencement of his or her pension, the administrator must provide a pre-retirement death statement that complies with the applicable requirements of Schedule A (Statements) to (a) the member's surviving spouse or common-law partner, if he or she is entitled to a pension under clause 21(26)⁠(a) of the Act (survivor benefit on pre-retirement death); (b) the member's designated beneficiary, if the beneficiary is entitled to an amount under clause 21(26)⁠(b) of the Act; or (c) the member's estate, if the estate is entitled to an amount under clause 21(26)⁠(c) of the Act. M.R. 63/2021 Waiver of survivor benefit on pre-retirement death 3.37 Before accepting a waiver under subsection 21(26.3) of the Act (waiver) from a member's spouse or common-law partner, the administrator must ensure that (a) the spouse or common-law partner has been provided with the following: (i) if the member is an active member, a copy of the most recent annual statement provided to the member under section 3.33, (ii) if the member is alive but is no longer an active member under the plan, a copy of the termination statement provided or to be provided to the member under section 3.34 that has been updated to reflect the value of the member's benefit as of the date the request to waive the benefit was received by the administrator, (iii) if the member has died, the member's pre-retirement death statement to be provided under section 3.36; (b) the waiver is in a form approved by the superintendent for this type of waiver; and (c) the spouse or common-law partner has signed the waiver in the presence of a witness. M.R. 205/2011 RECORDS Retention of records 3.38(1) Records respecting a plan that are in the possession or control of the administrator, an employer or any other person other than a member or other beneficiary must be retained by the person for the longest of the following applicable periods: (a) in the case of a record relating to the creation of the plan or any predecessor of the plan, a period of seven years after the later of (i) the day on which the last assets of the pension fund have been distributed, and (ii) the day on which the superintendent approves the winding up of the plan; (b) in the case of a record relating to a benefit under the plan, a period of seven years after the benefit has been paid in full or the entitlement to it has been otherwise extinguished; (c) in the case of a record not described in clause (a) or (b), a period of seven years after the later of (i) the date of the last transaction to which it relates occurred, and (ii) the date that the record ceases to be effective. 3.38(2) The requirement in subsection (1) may be satisfied by the retention of an electronic record if (a) it is retained in a format that accurately represents the information contained in the original record; (b) it is accessible so as to be usable for subsequent reference by any person entitled to have access to it or a copy of it; and (c) if the record is a document that was sent or received, the record includes information that identifies the origin and destination of the document and the date and time when it was sent or received. 3.38(3) In this section, "record" includes (a) accounts, books, files, returns, statements, reports, financial documents or other memorandums of financial or non-financial information, whether in writing or in electronic form or represented or reproduced by any other means; and (b) the results of the recording of details of electronic data processing systems and programs to illustrate what the systems and programs do and how they operate. M.R. 205/2011 EXTENSION OF TIME Superintendent may extend time 3.39(1) On the request of an administrator, the superintendent may extend a deadline by which anything must be done under the Act or this regulation — other than a deadline by which an employer must fund or pay into the plan — if the superintendent is satisfied that the extension is justified by exceptional circumstances. 3.39(2) The superintendent may make the extension subject to terms or conditions the superintendent considers appropriate. M.R. 63/2021 PART 4 FUNDING OF PENSION PLANS Overview 4.1 This Part sets out obligations of employers and administrators in relation to the funding of pension plans. It is organized according to the following divisions: (a) Division 1 contains general provisions respecting payments and contributions by members and employers; (b) Division 2 establishes funding requirements in relation to plans with a defined benefit provision. It requires a plan to meet tests for solvency and requires employers to make contributions in respect of normal actuarial cost and, in addition, make special payments if a plan has an unfunded liability or its solvency ratio is below 0.85. Division 2 also requires the administrator to have the plan reviewed from time to time to ensure that the defined benefits are adequately funded. M.R. 142/2021 DIVISION 1 PAYMENT OF MEMBER AND EMPLOYER CONTRIBUTIONS Due date for member contributions 4.2 Any member contributions to a plan that (a) are received by the employer from the member; or (b) are deducted by the employer from a member's remuneration; must be remitted by the employer to the plan within 30 days after the end of the month in which they were so received or deducted. Due date for employer contributions 4.3(1) An employer who is required to make contributions under a defined contribution provision must make those contributions as follows: (a) contributions that are calculated with reference to the employer's profits must be paid no later than 90 days after the end of the employer's fiscal year; (b) contributions that are not calculated with reference to the employer's profits must be paid no later than 30 days after the end of the month for which they are payable. 4.3(2) An employer who is required to make contributions to fund benefits payable under a defined benefit provision must make those contributions in accordance with subsection 4.18(2). Interest on late payments 4.4(1) If an employer fails to make a contribution within the time required under section 4.2 or 4.3 or subsection 4.18(2), the employer must pay interest on the late contribution — calculated from the first day of the month following the day the contribution was due to the date that it is paid — at the rate specified in this section. 4.4(2) If the failure relates to a defined benefit provision, (a) the rate of interest for member contributions is the rate that is provided for under the plan in accordance with section 5.17 (interest on contributions — defined benefit provision) in effect on the day the contribution was due under section 4.2; and (b) the rate of interest for employer contributions is the rate used in determining employer contributions referred to in subsection 4.18(1) (normal actuarial cost and special payments) in effect on the day the contribution was due under subsection 4.18(2). 4.4(3) If the failure relates to a defined contribution provision, the rate of interest is the rate determined in accordance with section 5.18 (interest on contributions — other pension plans) in effect on the day the contribution was due under section 4.2 or 4.3. M.R. 63/2021 DIVISION 2 FUNDING OF DEFINED BENEFITS Application 4.5(1) Subject to subsection (2), this Division applies to a plan with a defined benefit provision. 4.5(2) Clause 26(1)⁠(a) of the Act (funding and solvency of plans) and the funding requirements of this Division do not apply to the following plans: (a) an insured plan that was established before July 1, 1976, if it is funded by level premiums to retirement age; (b) the plan under The Civil Service Superannuation Act ; (c) the plan under The Teachers' Pensions Act . Although they are exempt from the funding requirements, they are not exempt from sections 4.9 to 4.17 (plan reviews) except as provided in subsection 4.12(3). M.R. 35/2012 INTERPRETATION AND DEFINITIONS Meeting the tests for solvency 4.6 The Act requires a plan to provide for funding, in accordance with the tests for solvency prescribed by regulation, adequate to provide for the payment of the pension and other benefits payable under the plan. It also requires the commission to cancel the registration of a plan that fails to meet the prescribed tests for solvency. For these purposes, a plan is considered to be adequately funded, and to meet the tests for solvency, if (a) in respect of current service, contributions are being made to cover the plan's normal actuarial cost as set out in the plan's latest actuarial valuation report or cost certificate; (b) the plan does not have an unfunded liability or, if it has one, special payments are being made to amortize the liability as required by this Division; and (c) the plan does not have a reduced solvency deficiency or, if it has one, special payments are being made to amortize the deficiency as required by this Division or a letter of credit is being used to secure the special payments under section 4.18.1. M.R. 205/2011 ; 142/2021 Definitions 4.7(1) The following definitions apply in this Division. "actuarial valuation report" means an actuarial valuation report prepared in relation to a review conducted under this Division. (« rapport d'évaluation actuarielle ») "actuary" means a Fellow of the Canadian Institute of Actuaries. (« actuaire ») "available actuarial surplus" means the following: (a) for a plan that is not exempted from solvency funding by a regulation made under the Act, the lesser of (i) the amount, if any, by which the plan's solvency assets exceed 105% of its solvency liabilities, as set out in the plan's latest actuarial valuation report, or (ii) the amount, if any, by which the plan's going concern assets exceed the sum of its going concern liabilities and its PFAD amount, as set out in the plan's latest actuarial valuation report; (b) for a plan that is exempted from solvency funding by a regulation made under the Act, the lesser of (i) the amount by which the plan's solvency assets exceed its solvency liabilities, as set out in the plan's latest actuarial valuation report, or (ii) the amount by which the plan's going concern assets exceed 105% of its going concern liabilities, as set out in the plan's latest actuarial valuation report. (« surplus actuariel disponible ») "cost certificate" means a certificate prepared in relation to a review conducted under this Division. (« certificat de coût ») "going concern assets" means the value of the assets of a plan as of a review date, as determined on the basis of a going concern valuation, but does not include money committed under a letter of credit under section 4.18.1. (« actif à long terme ») "going concern liabilities" means the actuarial present value of a plan's accrued benefits as of a review date, as determined on the basis of a going concern valuation. (« passif à long terme ») "going concern ratio" of a plan means the ratio of (a) the going concern assets of the plan attributable to its defined benefit provision as of a review date; to (b) the going concern liabilities attributable to its defined benefit provision and PFAD amount as of that date. (« ratio à long terme ») "going concern valuation" means a valuation of the assets and liabilities of a plan as of a review date, determined (a) on the assumption that no decision has been made to terminate or wind up the plan; (b) using actuarial assumptions and methods that are adequate and appropriate in the circumstances; and (c) in accordance with accepted actuarial practice. (« évaluation à long terme ») "normal actuarial cost" means the amount estimated, on the basis of a going concern valuation and using the methods and assumptions that are used to determine going concern liabilities, to be the cost of benefits under a plan's defined benefit provision for a fiscal year. (« cotisation d'exercice ») "PFAD amount" means the amount in respect of a plan's provision for adverse deviation determined in accordance with section 4.18.0.1. (« montant de la PPED ») "plan termination basis" in relation to a valuation means a valuation based on the assumption that the plan is terminated as of the review date to which the valuation relates. (« base de cessation d'un régime ») "reduced solvency deficiency" means any amount by which 85% of the solvency liabilities of a plan determined as of a review date exceed the plan's solvency assets as of the review date. (« déficit de solvabilité réduit ») "review" means a review required by this Division. (« examen ») "review date" means the date as of which a review is required under this Division. (« date d'examen ») "solvency assets" of a plan means the value of the assets of the plan as of a review date determined on a plan termination basis, determined in accordance with subsection (2), reduced by the actuary's estimate of the expenses that would be incurred by the pension fund in winding up the plan. Solvency assets include the value of (a) any cash balance; (b) any accrued and receivable income and contributions; (c) the actuarial present value as of the review date, determined using the same assumptions that are used in determining the solvency liabilities as of that date, of (i) any special payments payable in respect of benefits for employment before the effective date of the plan, if no benefits for that employment were provided under the plan before the establishment of the special payments, and (ii) any other special payments in respect of an unfunded liability that are payable over the five years following that review date; and (d) money committed under a letter of credit under section 4.18.1. (« actif de solvabilité ») "solvency deficiency" means any amount by which the solvency liabilities of a plan determined as of a review date exceed the plan's solvency assets as of the review date. (« déficit de solvabilité ») "solvency liabilities" means the value of the liabilities of a plan, determined as of a review date on a plan termination basis and in a manner that takes into account any increase or decrease in benefits that would occur on a plan termination other than a decrease that would result from a reduction of additional benefits according to subsection 21(23) of the Act (reduction of additional benefits). (« passif de solvabilité ») "solvency ratio" means the ratio of (a) a plan's solvency assets (not including the value of any special payments or money committed under a letter of credit specified in clauses (c) and (d) of the definition "solvency assets") attributable to its defined benefit provision as of a review date; to (b) the plan's solvency liabilities attributable to its defined benefit provision as of that date. (« ratio de solvabilité ») "special payment" means (a) a payment under clause 4.18(1)⁠(b) in respect of a reduced solvency deficiency; or (b) a payment under clause 4.18(1)⁠(c) or (d) in respect of an unfunded liability, and includes an alternative payment under subsection 4.18(5). (« versement spécial ») surplus" means (a) in the case of a plan that is not being terminated or wound up under Part 7 (termination and winding up of plans), the amount, if any, by which the plan's going concern assets exceed its going concern liabilities and PFAD amount, as stated in the latest actuarial valuation report required to be filed under section 4.15; and (b) in the case of a plan that is being terminated or wound up under Part 7, the amount, if any, by which the plan's solvency assets exceed its solvency liabilities as stated in the report required to be filed under subsections 7.7(1) (termination report) and 7.10(4) (winding up). (« surplus ») "unfunded liability" means any amount by which the sum of a plan's going concern liabilities and PFAD amount as of a review date exceed its going concern assets as of that date. (« déficit actuariel ») 4.7(2) For the purpose of the definition "solvency assets" in subsection (1), (a) if a plan is not being terminated or wound up under Part 7, the value of the plan's assets are to be determined on the basis of market value or on the basis of a value related to the market value by means of a method using market value over a period of not more than five years to stabilize short-term fluctuations; and (b) if a plan is being terminated or wound up under Part 7, the plan's assets are to be valued at their liquidation value as of the review date without taking into account the assets referred to in clause (c) of the definition "solvency assets" (special payments). M.R. 205/2011 ; 142/2021 RESPONSIBILITY FOR FUNDING Responsibility for funding 4.8(1) The employer must make all contributions necessary to ensure that a plan meets the tests for solvency as described in section 4.6. 4.8(2) The responsibility under subsection (1) is subject to the limit in subsection 26.1(10) of the Act (liability of employer limited) respecting participating employers of a specified multi-employer plan or a multi-unit pension plan. M.R. 63/2021 PLAN REVIEWS Administrator responsible for plan review 4.9 To ensure that a plan meets the tests for solvency as described in section 4.6, the administrator of the plan (a) must ensure that the plan is reviewed as of each applicable review date and the results of the review are set out in an actuarial valuation report and a cost certificate in accordance with sections 4.14 and 4.17; and (b) must file the actuarial valuation report and cost certificate with the commission in accordance with section 4.15. Who may conduct review 4.10(1) Subject to subsections (2) and (3), the review of a plan must be conducted by an actuary. 4.10(2) In the case of an insured plan, the review may be conducted by any person so authorized by the insurer. 4.10(3) In the case of a plan underwritten by a contract or contracts issued under the Government Annuities Act (Canada), the review may be conducted by a person authorized by the Canadian Government Annuities Branch of Service Canada. Actuarial valuation report and cost certificate 4.11 The actuarial valuation report and cost certificate must be adequate and appropriate and prepared in accordance with accepted actuarial practice, except to the extent that accepted actuarial practice conflicts with the Act or this regulation. Review dates 4.12(1) A plan must be reviewed as of each of the following applicable review dates: (a) in the case of a new plan, the effective date of the plan; (b) the end of the third fiscal year of the plan and thereafter at the end of a fiscal year that is not more than three fiscal years after the last review date; (c) if an actuarial valuation report or cost certificate for a review date indicates that the solvency ratio is less than 0.85, at the end of the first fiscal year following that review date; (d) subject to subsection 4.13(2), the review date specified in subsection 4.13(1) (review after amendment); (e) the review date specified by the superintendent in a written notice under section 3.27 (special reports) if a review is required for the special report required by that notice. 4.12(2) Clause (1)⁠(c) does not apply to a plan that has been in effect for less than three years and is not a continuation of a previous plan referred to in clause 3.31(2)⁠(c) (documents to be provided on request). 4.12(3) Clause (1)⁠(c) does not apply to the plan under The Civil Service Superannuation Act or the plan under The Teachers' Pensions Act . M.R. 35/2012 ; 142/2021 Additional review after plan amendment 4.13(1) If a plan amendment affects the cost of benefits under the plan, creates or increases an unfunded liability or solvency deficiency, or otherwise affects the solvency or funding of the plan, the administrator must ensure (a) that the plan is reviewed as of the last day of the fiscal year preceding the year in which the amendment is made; and (b) that the review takes the amendment into account. 4.13(2) The administrator may, instead of having the plan reviewed as required by subsection (1), have the results of the last review adjusted to take the amendment into account and prepare an interim cost certificate prepared as of the date the amendment is made. 4.13(3) An interim cost certificate under subsection (2) must show (a) the effect of the plan amendment on (i) the plan's normal actuarial cost, (ii) the plan's going concern assets, going concern liabilities, going concern ratio and, if applicable, any unfunded liability, PFAD amount and special payments required in respect of an unfunded liability, and (iii) the plan's solvency assets, solvency liabilities, solvency ratio and, if applicable, any solvency deficiency, reduced solvency deficiency and special payments required in respect of a reduced solvency deficiency; and (b) the differences between the interim cost certificate and the last cost certificate or actuarial valuation report for the plan filed with the commission. 4.13(4) An interim cost certificate under subsection (2) must be filed with the commission within 120 days after the day the amendment is made. 4.13(5) After reviewing the interim cost certificate filed under subsection (4), the superintendent may, by written notice to the administrator, require an actuarial valuation report to be filed within 120 days after the date of the notice. M.R. 142/2021 Preparation of actuarial valuation report and cost certificate 4.14(1) Subject to subsections (3) and (4), to complete a review, the reviewer must prepare an actuarial valuation report and a cost certificate that meet the requirements of section 4.16. 4.14(2) A cost certificate must be filed in a form and manner approved by the superintendent. 4.14(3) The superintendent may waive the requirement for an actuarial valuation report for a review if the superintendent is satisfied that the cost certificate enables him or her to determine that the plan meet the tests for solvency as of the review date. 4.14(4) If an actuarial valuation report or cost certificate prepared with respect to an insured plan includes a certification that (a) all benefits relating to a defined benefit provision are insured under a contract with an insurer who is obligated under the contract to pay those benefits; and (b) all future benefits will accrue under a defined contribution provision of the plan; another actuarial valuation report and cost certificate are not required until the plan is amended to provide for new or additional benefits and such benefits commence to accrue under a defined benefit provision. Deadline for filing report or cost certificate 4.15 The administrator must ensure that the actuarial valuation report and cost certificate prepared as of a review date are filed with the commission as follows: (a) within 60 days after the plan is established, if the review date is the effective date of the plan (see clause 4.12(1)⁠(a)); (b) within 270 days after the review date, if the review date is a date described in clause 4.12(1)⁠(b) or (c); (c) within 120 days after the date of the amendment, in the case of a review under subsection 4.13(1) (review after amendment); (d) within 270 days after the date of the superintendent's notice requiring the administrator to provide a special report, if the review is required for that special report. Content of actuarial valuation report or cost certificate 4.16(1) The following information must be included in the actuarial valuation report or cost certificate prepared in respect of a review: (a) the estimated total dollar cost of benefits for all members, showing separately the employer contributions and the member contributions relating to the normal actuarial cost (i) for the fiscal year following the review date, where that date falls on the last day of a fiscal year, or (ii) for the fiscal year in which the review date falls, where the date falls on any other day; (b) the rules used to compute the normal actuarial cost and to allocate the cost between the employer and the members in respect of employment in the period covered by the report or certificate; (c) in the case of a specified multi-employer plan or a multi-unit pension plan in which the contributions of the participating employer are based on a fixed rate or amount, (i) the rate or amount that is to be contributed by the employer and a member, (ii) a breakdown of the rate or amount referred to in subclause (i), stating the rate or amount that is attributable to the plan's normal actuarial cost, to the amortization of any unfunded liability or reduced solvency deficiency, and to any contingency reserve, and (iii) the average number of hours of employment per member per fiscal year that is assumed for the purpose of the review; (d) the plan's going concern assets, their market value and, if relevant, their book value, the going concern liabilities, going concern ratio, PFAD amount and any surplus or unfunded liability as of the review date, and a description of the methods and assumptions used to determine them; (e) if the plan has both a defined benefit provision and a defined contribution provision, the portion of each amount reported under clause (d) that relates to the defined benefit provision; (f) the plan's solvency assets, solvency liabilities, solvency ratio and any solvency deficiency or reduced solvency deficiency as of the review date, and a description of the methods and assumptions used to determine them; (g) if the plan has both a defined benefit provision and a defined contribution provision, the portion of each amount reported under clause (f) that relates to the defined benefit provision; (h) a breakdown of the going concern liabilities under clause (d) and the solvency liabilities under clause (f) according to the following categories: (i) active members, (ii) members, other than active members, who have not commenced receiving pensions under the plan, and any other persons who have a future entitlement to receive pensions under the plan, (iii) members, other than active members, who are receiving their pensions under the plan, and any other persons who are receiving payments from the plan; (i) in respect of any unfunded liability, the special payments to be made to amortize it; (j) in the case of a review date after the effective date of the plan, a reconciliation of the results of the review, and identification of the sources of actuarial gains and losses, since the immediately preceding review date; (k) the available actuarial surplus of the plan and, if known to the person who made the review, a description of how it will be utilized; (l) in respect of any reduced solvency deficiency, the special payments to be made to amortize it; (m) [repealed] M.R. 142/2021 ; (n) any other information that the superintendent requires to determine whether the plan meets the tests for solvency set out in section 4.6. 4.16(1.1) If a solvency reserve account has been established for a plan, the actuarial valuation report and cost certificate must show separately the solvency reserve account and the remainder of the plan assets. 4.16(2) If the reviewer preparing the report or certificate is not satisfied that the actuarial methods used would reveal an unfunded liability or reduced solvency deficiency in the plan, the reviewer must perform supplementary calculations to determine whether the tests for solvency set out in section 4.6 are being met, and must so certify. M.R. 63/2021 ; 142/2021 Superintendent may require changes 4.17 If the superintendent considers that an actuarial valuation report, cost certificate or interim cost certificate filed under this Part does not conform to the requirements of this Part, he or she may, by written notice, require the administrator to have the report or certificate amended by the person authorized to prepare it, and the administrator must comply with the direction within the time specified in the notice. EMPLOYER CONTRIBUTIONS Normal actuarial cost and special payments 4.18(1) The employer must pay the following into the plan in accordance with subsection (2): (a) the employer's portion of the normal actuarial cost of current service as set out in the latest actuarial valuation report or cost certificate filed with the commission; (b) subject to section 4.18.1, if the plan has a reduced solvency deficiency and is not exempted from solvency funding by a regulation made under the Act, equal payments in an amount that is sufficient to amortize the reduced solvency deficiency over a term of not more than five years from the review date as of which it was established; (c) if the plan has an unfunded liability and is not exempted from solvency funding by a regulation made under the Act, equal payments in an amount that is sufficient to amortize the unfunded liability over a term of not more than 10 years from the review date as of which it was established; (d) if the plan has an unfunded liability but is exempted from solvency funding by a regulation made under the Act, equal payments in an amount that is sufficient to amortize the liability over a term of not more than 15 years from the review date as of which it was established. 4.18(2) The contributions payable under subsection (1) are payable at least monthly, and no later than 30 days after the end of the period for which they are payable. 4.18(3) and (4) [Repealed] M.R. 142/2021 4.18(5) Instead of making equal special payments as required by clauses (1)⁠(b) to (d), the employer may elect to make the special payments on the following basis: (a) each payment is a constant percentage of the projected future payroll of the members determined as of the review date as of which the unfunded liability or reduced solvency deficiency was established; and (b) at the beginning of the applicable amortization period, the actuarial present value of the special payments to be made over the term selected is equal to the unfunded liability or reduced solvency deficiency, as the case may be. 4.18(6) When a new actuarial valuation report or cost certificate for a plan is filed, (a) the reduced solvency deficiency or unfunded liability, if any, must be based on the financial position of the plan as of the review date; (b) any amortization period under clause (1)⁠(b), (c), or (d) is to be reset as of the review date; (c) the employer must begin to make payments under clause (1)⁠(b), (c) or (d), as the case may be, based on the reduced solvency deficiency or unfunded liability, if any, set out in the new report or certificate and the reset applicable amortization period; and (d) special payments based on any previous actuarial valuation report or cost certificate are no longer required. 4.18(6.1) Despite subsection (6), if a new actuarial valuation report or cost certificate is not filed until after the review date, the employer must continue to make payments in accordance with the old report or certificate until the new one is filed. 4.18(6.2) If payments required under a new actuarial valuation report or cost certificate are higher than payments that were actually made under subsection (6.1), the employer must pay the shortfall into the plan within 30 days after the new report or certificate is filed, together with interest from the day each payment was required at the interest rate used for determining employer contributions under subsection (1). 4.18(6.3) If payments required under a new actuarial valuation report or cost certificate are lower than payments that were actually made under subsection (6.1), the employer may temporarily suspend or reduce ongoing payments until the excess has been offset. 4.18(7) If a plan's fiscal year is longer or shorter than 12 months, the amount of a contribution required by this section must be increased or decreased proportionately. M.R. 205/2011 ; 142/2021 Provision for Adverse Deviation PFAD amount 4.18.0.1(1) In this section, "defined benefit target asset allocation" means the target proportion of a plan's assets relating to its defined benefit provision that is allocated to a specific investment category in the plan's statement of investment policies and procedures (SIP) as of the plan's review date, excluding any portion of those assets that is (a) transferred out of the plan by way of an annuity buy-out; or (b) maintained within the plan but subject to an annuity buy-in. 4.18.0.1(2) A plan's PFAD amount is the amount determined in accordance with the following formula: PFAD amount = A × (0.05 + B) In this formula, A is the total of the plan's going concern liabilities relating to its defined benefit provision, excluding liabilities that are (a) transferred out of the plan by way of an annuity buy-out, or (b) maintained within the plan but hedged by way of an annuity buy-in; B is the value determined in accordance with subsection (3). 4.18.0.1(3) The value of B in the formula in subsection (2) is determined based on the value of C in the formula in subsection (4). Specifically, (a) if C is zero, the value of B is zero; (b) if C is 0.2, the value of B is 0.01; (c) if C is 0.4, the value is B is 0.03; (d) if C is 0.5, the value of B is 0.04; (e) if C is 0.6, the value of B is 0.05; (f) if C is 0.7, the value of B is 0.08; (g) if C is 0.8, the value of B is 0.11; (h) if C is 1.0, the value of B is 0.17; or (i) if C is between two values described in any consecutive clauses from clause (a) to clause (h), the value of B is the amount determined by linearly interpolating the values of B set out in those clauses. 4.18.0.1(4) For the purpose of subsection (3), C is the value determined in accordance with the following formula: C = 1 − D In this formula, D is the value determined in accordance with subsection (5). 4.18.0.1(5) For the purpose of subsection (4), D is the value determined in accordance with the following formula: D = [E + (0.5 × F) + (G × H) + (0.5 × G × I)] In this formula, subject to subsections (6) and (7), E is the proportion of the plan's defined benefit target asset allocations that fall into one of the following investment categories: (a) insured contracts, (b) demand deposits and cash on hand, (c) short-term notes and treasury bills, (d) term deposits and guaranteed investment certificates, (e) Canadian bonds and debentures other than investments referred to in any of subclauses 3.29(a)⁠(i) to (xii), (f) non-Canadian bonds and debentures other than investments referred to in any of subclauses 3.29(a)⁠(i) to (xii);  F is the proportion of the plan's defined benefit target asset allocations that fall into one of the following investment categories: (a) mortgage loans, (b) real estate, (c) real estate debentures, (d) resource properties, (e) venture capital, (f) corporations referred to in subsection 11(2) of Schedule III of the Pension Benefits Standards Regulations, 1985 (Canada), as amended from time to time, (g) investments other than investments referred to in any of subclauses 3.29(a)⁠(i) to (xvi); G is the proportion of the plan's defined benefit target asset allocations in the mutual funds, pooled funds or segregated funds categories; H is the proportion of G that is allocated to any of the investment categories described in clauses (a) to (f) in the description of E; I is the proportion of G that is allocated to any of the investment categories described in clauses (a) to (g) in the description of F. 4.18.0.1(6) In determining the value of E or H in the formula set out in subsection (5), an asset in an investment category described in clause (c), (e) or (f) of the description of E must not be included unless (a) the plan's statement of investment policies and procedures (SIP) sets out a minimum rating requirement for fixed income assets from a credit rating agency; and (b) the asset meets or exceeds that rating. 4.18.0.1(7) If an asset is excluded from the determination of E or H under subsection (6), the following applies: (a) an asset excluded from the determination of the value of E must instead be included in the determination of the value of F; (b) an asset excluded from the determination of the value of H must instead be included in the determination of the value of I. 4.18.0.1(8) For certainty, if a plan has both a defined benefit provision and a defined contribution provision, no PFAD amount applies in respect of liabilities that relate to the plan's defined contribution provision. M.R. 142/2021 PFAD amount deemed to be nil 4.18.0.2 Despite section 4.18.0.1, the PFAD amount is deemed to be nil for (a) a specified multi-employer plan or multi-unit pension plan; or (b) a pension plan exempted from solvency funding by a regulation made under the Act. M.R. 142/2021 Letters of Credit for Meeting Solvency Deficiencies Definitions 4.18.1(1) The following definitions apply in this section.

"holder" means the fund holder that is the beneficiary under a letter of credit used to secure special payments under this section, or the fund holder's successor. (« titulaire ») "issuer" means the issuer of a letter of credit. (« émetteur ») "qualified issuer" means a bank that is a member of the Canadian Payments Association and has one of the following credit ratings: (a) A or higher, if the rating is given by Dominion Bond Rating Service Limited, Fitch Ratings, or Standard & Poor's Ratings Services; (b) A2 or higher, if the rating is given by Moody's Investors Service. (« émetteur admissible ») "termination report" means a report filed under subsection 7.7(1). (« rapport de cessation ») Special payments for a reduced solvency deficiency may be secured with letter of credit 4.18.1(2) Instead of making some or all of the special payments required by clause 4.18(1)⁠(b), an employer, other than an employer under a specified multi-employer plan or a multi-unit pension plan, may secure the special payments with a letter of credit that complies with the requirements of subsection (3). Letter of credit requirements 4.18.1(3) A letter of credit used to secure special payments under this section must (a) be an irrevocable and unconditional standby letter of credit; (b) be issued by a qualified issuer; (c) comply with the rules of International Standby Practices ISP98 (publication No. 590) of the International Chamber of Commerce in effect at the time the letter of credit is issued; (d) meet, and be issued in accordance with, the requirements of the Income Tax Act (Canada); (e) specify when it takes effect and when it expires; (f) expire no later than one year from the date it takes effect; (g) oblige the issuer to make payment on demand by the holder; (h) be issued in Canadian currency; and (i) provide that (i) the beneficiary is the fund holder in trust for the pension fund, (ii) on demand, the issuer will immediately pay to the holder the amount, not exceeding its face amount, that is demanded, without further inquiry, (iii) the insolvency or bankruptcy of the employer will not affect the rights and obligations of the issuer or the holder, (iv) if the issuer decides not to renew the letter of credit on its expiry, the issuer will give written notice to the administrator, the holder and the superintendent of that decision at least 90 days before it expires, (v) it cannot be assigned, and (vi) it cannot be amended, except (A) on renewal, or (B) if there is a change of holder, to reflect that change. Issuer ceasing to be qualified issuer 4.18.1(4) If the issuer of a letter of credit that complies with the requirements of subsection (3) ceases to be a qualified issuer, the letter of credit may continue to be used to secure special payments until it expires, but it must not be renewed. Letter of credit and statement to be filed 4.18.1(5) At least 90 days before the first special payment secured by a letter of credit is payable, the administrator must file with the commission a certified copy of the letter of credit and the administrator's written statement confirming that the letter of credit meets the requirements of subsection (3). Superintendent to acknowledge receipt 4.18.1(6) As soon as practicable after receiving a certified copy of a letter of credit under subsection (5), clause (9)⁠(a) (replacement of non-conforming letter of credit) or clause (14)⁠(a) (renewal or replacement of letter of credit), the superintendent must provide written notice to the administrator that the letter of credit has been received. Administrator to provide letter of credit to holder 4.18.1(7) The administrator must provide the letter of credit, and a copy of the superintendent's notice of receipt, to the holder (a) before the first special payment secured by the letter of credit is payable; and (b) if the letter of credit is to renew or replace another letter of credit, at least 15 days before expiry or cancellation of the other letter of credit. Superintendent may reject letter of credit 4.18.1(8) The superintendent may, at any time, provide written notice to the administrator that a letter of credit does not comply with the requirements of subsection (3). Deadline to replace non-complying letter of credit 4.18.1(9) Within 30 days after being notified by the superintendent that a letter of credit does not comply with the requirements of subsection (3), (a) the administrator must file with the commission a certified copy of a new letter of credit that complies with the requirements of subsection (3); or (b) the employer must make special payments in accordance with section 4.18, including immediate payment of arrears and interest in accordance with subsection 4.18(4). Letter of credit must be maintained 4.18.1(10) The employer must maintain a letter of credit in force, and renew or replace it before it expires, without any decrease in the amount secured unless (a) the employer has paid into the plan all special payments secured by the letter of credit, plus interest as required by subsection (22); (b) an actuarial valuation report and cost certificate filed with the commission show that the funding requirements of section 4.18 will continue to be met without the letter of credit; (c) the employer has paid into the plan the amount that an actuarial valuation report and cost certificate filed with the commission show to be sufficient to meet the funding requirements of section 4.18; (d) the letter of credit has been renewed or replaced with a letter of credit that secures a reduced amount as permitted by subsection (11); or (e) if the plan is terminating, the superintendent has approved a termination report and the employer has paid any amount required to be paid under subsection (16). Amount of renewing or replacing letter of credit 4.18.1(11) For the purpose of clause (10)⁠(d), the amount secured by a renewing or replacing letter of credit may be less than the amount secured by the original letter of credit if (a) the employer has paid into the plan a portion of the amount secured by the original letter of credit and the renewing or replacing letter of credit secures the balance of that amount; or (b) an actuarial valuation report and cost certificate filed with the commission show that the funding requirements under section 4.18 can be met by securing or paying a lesser amount, and (i) the renewing or replacing letter of credit secures that amount, or (ii) the employer has paid into the plan a portion of that amount and the renewing or replacing letter of credit secures the balance of that amount. Expiry or cancellation 4.18.1(12) At least 90 days before a letter of credit expires or is cancelled, the administrator must (a) advise the superintendent and the holder in writing whether the letter of credit will be renewed, replaced or allowed to expire without renewal or replacement; and (b) file the documents referred to in subsection (13) or (14) with the commission. Filing when letter of credit expiring without renewal or replacement 4.18.1(13) If the letter of credit will not be renewed or replaced, the administrator must file with the commission (a) confirmation of the payments referred to in clause (10)⁠(a); (b) the actuarial valuation report and cost certificate referred to in clause (10)⁠(b); or (c) the actuarial valuation report, a cost certificate, and confirmation of the payment referred to in clause (10)⁠(c). Filing when letter of credit to be renewed or replaced 4.18.1(14) If the letter of credit will be renewed or replaced, the administrator must file with the commission (a) a certified copy of the renewing or replacing letter of credit and the administrator's written statement that the renewing or replacing letter of credit meets the requirements of subsection (3); and (b) if the amount secured by the renewing or replacing letter of credit will be less than the amount secured by the original letter of credit, (i) confirmation of the payment referred to in clause (11)⁠(a), or (ii) the actuarial valuation report and cost certificate referred to in clause (11)⁠(b) and, if applicable, confirmation of the payment referred to in subclause (11)⁠(b)⁠(ii). Obligation on termination 4.18.1(15) If a plan or a part of a plan is to be terminated, the employer must maintain a letter of credit used to secure special payments in force, and, before it expires, renew or replace it without any decrease in the amount covered, until (a) the superintendent has approved a termination report; and (b) the employer or issuer has paid any amount required to be paid under subsection (16). Special payments on termination 4.18.1(16) Within 14 days after the superintendent's approval of a termination report, the employer must pay into the plan (a) all special payments secured by a letter of credit, plus interest as required by subsection (22); less (b) the surplus, if any. Superintendent's notification re termination 4.18.1(17) When notifying the administrator that the termination report is approved, the superintendent must notify the administrator and the holder of any amount payable under subsection (16) and the date by which it is payable. Holder to demand payment 4.18.1(18) If the employer fails to pay the full amount required under subsection (16) on or before the day it is due, the holder must, on the next business day, demand that the issuer pay under the letter of credit the amount payable under subsection (16). Balance of solvency deficiency to be amortized 4.18.1(19) If the plan has a solvency deficiency after payment of the amount payable under subsection (16), the remaining solvency deficiency must be amortized in accordance with section 4.19. Holder to demand payment under letter of credit 4.18.1(20) The holder must demand payment under a letter of credit 14 days before the letter of credit expires, unless the holder has received (a) copies of documents filed under subsection (13) (expiry without renewal or replacement); (b) a renewing or replacing letter of credit and copies of the documents filed under subsection (14) (renewal or replacement); or (c) if the plan is to be terminated, the superintendent's approval of the termination report and the payment required under subsection (16), if any. Demand for payment under a letter of credit 4.18.1(21) A demand for payment under a letter of credit must be made in the form required or permitted in the letter of credit. Employer to pay interest 4.18.1(22) Interest is payable on each special payment secured by a letter of credit from the date the special payment is due at the interest rate used to establish the reduced solvency deficiency. The employer must pay the interest monthly no later than 30 days after the end of the month for which the interest is payable, unless the interest payable under this subsection is secured by the letter of credit. Employer to pay costs 4.18.1(23) The employer must pay the costs of obtaining and maintaining a letter of credit and those costs must not be charged to the plan. Transfer deficiencies 4.18.1(24) Before making a transfer that would result in a transfer deficiency under subsection 4.30(4), the employer must pay into the plan the lesser of (a) the total of all special payments secured by a letter of credit, plus interest as required by subsection (22); or (b) an amount sufficient to eliminate the transfer deficiency. M.R. 205/2011 ; 63/2021 ; 142/2021 Solvency deficiency on termination 4.19 If it is established that a plan (other than a specified multi-employer plan or a multi-unit pension plan) has a solvency deficiency as of the date of termination of the plan, the employer must pay into the plan equal payments in an amount that is sufficient to amortize the solvency deficiency over a period of not more than five years from the review date as of which it was established (which is the date of termination). M.R. 63/2021 Employer may increase rate of amortization 4.20(1) An employer may increase the rate at which an unfunded liability, reduced solvency deficiency or solvency deficiency is amortized by increasing the amount of a special payment, making a special payment in advance or making additional payments. 4.20(2) [Repealed] M.R. 142/2021 M.R. 142/2021 4.21 to 4.24 [Repealed] M.R. 142/2021 Specified multi-employer plans and multi-unit pension plans 4.25(1) The person reviewing a specified multi-employer plan or a multi-unit pension plan as of a review date must perform the supplementary tests necessary to demonstrate that the rate and amount of the required contributions to the plan are sufficient for it to meet the tests for solvency. 4.25(2) If the reviewer is not able to demonstrate that the required contributions are sufficient, the reviewer must advise the plan administrator in writing and must propose options for making the plan meet the solvency tests. 4.25(3) The administrator must (a) select one of the options proposed by the reviewer; (b) file the proposed options with the superintendent and indicate which option will be implemented; and (c) notify the members and other beneficiaries in writing of the option that will be implemented and the reasons that option was selected. 4.25(4) The administrator must comply with subsection (3) before the actuarial valuation report or the cost certificate or interim cost certificate is filed with the commission. M.R. 205/2011 ; 63/2021 Separate determinations 4.26 A specified multi-employer plan or a multi-unit pension plan may provide for some or all of the assets, liabilities, surplus (including gains) and administrative expenses relating to the employers to be determined separately for each employer, in which case each employer must comply with this Part with respect to its allocated share of contributions required to fund the plan. M.R. 63/2021 USE OF SURPLUS Use of surplus 4.27(1) If an actuarial valuation report or cost certificate prepared for a plan as of a review date reveals that the plan has an available actuarial surplus, any portion of the available actuarial surplus may be (a) used to increase benefits; (b) applied to reduce employer contributions, unless expressly prohibited by the terms of the plan; (c) applied to reduce member contributions, if expressly permitted by the terms of the plan; or (d) with the consent of the commission on application by the employer, paid to the employer. 4.27(2) Surplus that is not available actuarial surplus must be left in the plan unless the plan is being terminated or wound up in accordance with Part 7. 4.27(3) Available actuarial surplus not used, applied or paid in accordance with subsection (2) may be left in the plan. M.R. 205/2011 ; 63/2021 ; 142/2021 Application for consent for payment of available actuarial surplus to employer 4.28 An employer's written application for the commission's consent to a payment of available actuarial surplus to the employer must be submitted to the superintendent and must set out or include the following: (a) the amount of surplus proposed to be paid to the employer; (b) an actuarial valuation report and cost certificate prepared in accordance with this Division as of a review date for a period ending not more than 90 days before the application is submitted to the superintendent; (c) if the employer is entitled under the terms of the plan to the payment, a copy of the terms of the plan that demonstrate that entitlement; (d) if a court has determined that the employer is entitled under the terms of the plan to the payment, a copy of the court's ruling; (e) if the employer has made a proposal under subclause 26(2.1)⁠(a)⁠(iii) of the Act (conditions for payment of surplus to employer), (i) copies of the written consents obtained by the employer, and (ii) a declaration by the plan administrator certifying that those consents satisfy the requirements of that subclause; (f) a copy of the notice given under section 4.29 and a declaration by the plan administrator certifying that the notice has been given in accordance with that section; (g) a declaration by the plan administrator certifying that the application complies with the Act and this regulation; (h) any other information requested by the superintendent. M.R. 205/2011 ; 142/2021 Notice of proposed payment of available actuarial surplus 4.29(1) Before an employer applies for the commission's consent to a payment of available actuarial available actuarial surplus, the plan administrator must (a) prepare a written notice that sets out the following information: (i) the amounts of the assets, liabilities and available actuarial surplus of the plan and the date as of which those amounts were determined, (ii) the amount of available actuarial surplus proposed to be paid to the employer, and the amount of available actuarial surplus that will remain in the plan after the payment, (iii) the address of the superintendent, (iv) a statement indicating that a person to whom the notice is addressed may inspect or obtain a copy of the employer's application for the payment of available actuarial surplus or any accompanying document from the administrator at the administrator's office, (v) if the consent of members and other beneficiaries is required by subclause 26(2.1)⁠(a)⁠(iii) of the Act, information about the levels of consent required and how it may be provided, (vi) any other relevant information that the superintendent requires to be included in the notice; and (b) send the notice to each member and other beneficiary and to each bargaining agent or other association for members or other beneficiaries, or to their authorized agents, as follows: (i) if the employer is entitled to the available actuarial surplus under the terms of the plan, as determined by the Court of King's Bench or by the commission, at least 30 days before the employer's application is filed with the superintendent, (ii) if the consent of members and other beneficiaries is required by subclause 26(2.1)⁠(a)⁠(iii) of the Act, at least 90 days, and not more than 180 days, before the employer's application is filed with the superintendent. 4.29(2) If the consent of members and other beneficiaries is required by subclause 26(2.1)⁠(a)⁠(iii) of the Act, the administrator must, as soon as practicable, notify the persons to whom the notice was given under clause (1)⁠(b) of the results of the attempt to obtain those consents. M.R. 142/2021 REFUNDS FROM SOLVENCY RESERVE ACCOUNTS Refund from solvency reserve account 4.29.1 Despite sections 4.28 and 4.29, the administrator of a pension plan may refund an amount from a solvency reserve account to the employer without the approval of the commission, and without the consent of the members or beneficiaries of the plan, if (a) the amount constitutes available actuarial surplus; and (b) the superintendent consents to the refund in writing. M.R. 142/2021 Disclosure in annual statement 4.29.2 An administrator who refunds an amount from a solvency reserve account to an employer in accordance with section 4.29.1 must disclose the following in the annual statement provided to plan members: (a) the balance in the solvency reserve account as determined by the plan's latest actuarial valuation report; (b) the amount withdrawn from the solvency reserve account during the period to which the annual statement applies. M.R. 142/2021 TRANSFER DEFICIENCIES Transfer deficiency 4.30(1) Except as provided in this section, the administrator must not make a transfer if the transfer would impair the solvency of the plan. 4.30(2) This section applies to the following types of transfers: (a) a transfer to purchase an annuity from an insurance company; (b) a transfer to another plan under subsection 21(13) of the Act (transfer to retirement savings plan) and section 5.15; (c) a transfer to a prescribed retirement savings plan under subsection 21(13) of the Act ( see Part 10 of this regulation ); (d) a transfer to a prescribed retirement income plan under subsection 21(13.1) (transfer to retirement benefit plan) of the Act ( see Part 10 of this regulation ); (e) a transfer to a registered retirement income fund under section 21.4 of the Act ( see Part 10 of this regulation ); (f) a transfer to a prescribed retirement savings plan, prescribed retirement benefit plan, or other prescribed arrangement under subsection 21(26.2) (transfer of commuted value) of the Act ( see Part 10 of this regulation ); (g) a transfer to a prescribed retirement savings plan, prescribed retirement benefit plan, or another plan under subsection 31(4) of the Act (transfer of family property portions) ( see Part 11 of this regulation ). This section also applies to a conversion of benefits accrued under a defined benefit provision before the effective date of the amendment into benefits under a defined contribution provision. 4.30(3) For the purposes of this section, a transfer must be considered to impair the solvency of a plan if and only if (a) the plan has a solvency ratio of less than 1, or (b) the plan has a solvency ratio of at least 1 and the administrator satisfies the superintendent that the transfer would impair the solvency of the plan. 4.30(4) For the purpose of this section, if the transfer of the full commuted value would impair the solvency of a plan, the transfer deficiency is the portion of the commuted value that, upon the transfer, would adversely affect the solvency ratio of the plan. 4.30(5) An administrator may make a transfer which would impair the solvency of a plan if (a) the superintendent, in writing, either approves the transfer or directs the administrator to make the transfer; (b) the employer remits an amount to the plan sufficient to eliminate the transfer deficiency; (c) the transfer deficiency for any person is less than 5% of the YMPE for the year in which the transfer is made, and the total of the transfer deficiencies occurring after the last review date is not more than 5% of the market value of the plan's assets at the time of the transfer; or (d) the amount to be transferred is the commuted value less the transfer deficiency. 4.30(6) Subject to subsection (5), a transfer deficiency that was not transferred as part of the initial transfer must be transferred within five years after the initial transfer, along with interest from the date of the initial transfer to a date not earlier than the end of the month immediately preceding the month in which the transfer deficiency is transferred. For this purpose the plan must provide for the interest to be credited at a rate not less than the rate of interest used to determine the commuted value. 4.30(7) The person entitled to have the transfer deficiency transferred under subsection (6) must notify the administrator, at least 60 days before the end of the five-year period, of the transferee and the type of vehicle to which it is to be transferred. 4.30(8) This section does not apply to the administrator of a specified multi-employer plan or multi-unit pension plan who has elected to administer the plan in accordance with subsection 3570 of the Practice-Specific Standards for Pension Plans , as amended from time to time, published by the Actuarial Standards Board of the Canadian Institute of Actuaries. M.R. 205/2011 ; 63/2021 PART 5 MEMBERSHIP, BENEFITS AND CONTRIBUTIONS AND INTEREST DIVISION 1 MEMBERSHIP Employees entitled to join plan 5.1(1) Subsection 21(18.1) of the Act requires a plan to identify one or more prescribed classes of employees who are entitled to be members of the plan. The following classes of employees are prescribed for this purpose: (a) all employees; (b) employees who are paid a salary; (c) employees who are paid on an hourly basis; (d) employees who are members of a union as defined in The Labour Relations Act ; (e) employees who are not members of such a union ; (f) supervisory employees; (g) management employees; (h) executive employees; (i) employees who are officers of the employer; (j) employees who are connected to the employer for the purpose of subsection 8500(3) of the Income Tax Regulations (Canada); (k) employees who regularly report for work at a specified geographic location; (l) employees who were hired on or after a specified date; (m) employees belonging to any other identifiable group that has been accepted by the superintendent as a class of employees for the purpose of subsection 21(18.1) of the Act. 5.1(2) On the written application of an employer, the superintendent may, by written notice to the employer, accept a class of employees not prescribed by clauses (1)⁠(a) to (l) as a class for the purpose of clause (1)⁠(m). No surrender or commutation when member joins a related plan 5.2 If (a) a person's active membership in a plan terminates because he or she has become an active member in another plan; and (b) the employer who is required to contribute to both plans is the same; the benefits of the original plan must not be surrendered, commuted or transferred from the original plan while the person remains an active member of the other plan, except as provided under the original plan, the Act or this regulation. M.R. 205/2011 Ceasing to be an active member of a specified multi-employer plan or multi-unit pension plan 5.2.1 Clause 26.1(11)⁠(d) of the Act requires a specified multi-employer plan or a multi-unit pension plan to specify, in accordance with the regulations, the circumstances when a member ceases to be an active member of the plan. Such a plan must specify that a member of the plan ceases to be an active member when (a) both the member's period of continuous employment and the member's membership in the union, association or organization of employees in that employment end; (b) no contributions to the plan have been made by or on behalf of the member for a period of two years; (c) the member, having become eligible under the terms of the plan to commence receipt of a pension — otherwise than under section 21.5 of the Act — while remaining employed, elects to do so; (d) the member ceases to be eligible for active membership under the terms of the plan; (e) the plan is terminated or wound up, or the part of the plan in which the member is participating is terminated or wound up; or (f) the member dies; whichever occurs first. M.R. 205/2011 ; 63/2021 DIVISION 2 BENEFITS AND CONTRIBUTIONS Formulas to be uniform 5.3(1) The formula for determining benefits or member contributions under a defined benefit provision, or contributions under a defined contribution provision, must be uniform (a) for each year of future service; and (b) for all members of a class of employees prescribed by subsection 5.1(1); except for any variation that the superintendent considers reasonable and approves. 5.3(2) If a formula for determining contributions under a defined contribution provision provides for contributions to be determined on a basis other than (a) a percentage of a member's remuneration; or (b) a fixed dollar amount in respect of each member; the amount of contributions must be determined using factors other than the accumulated value of the contributions made by or on behalf of the member and interest on those contributions. Integration and coordination with government plans 5.4(1) The following definitions apply in this section: "CPP" means the Canada Pension Plan. (« RPC ») "QPP" means the Quebec Pension Plan. (« RRQ ») "OAS" means the Old Age Security Act (Canada). (« SV ») 5.4(2) If a plan provides for a member's pension to be reduced when the member's CPP or QPP pension commences or becomes payable (a) the member's pension must not be reduced until the member reaches the age of 65 years, even if the CPP or QPP pension commences or becomes payable before he or she reaches that age; and (b) the member's pension benefit credit must not be reduced by reason only of the member being or having been entitled to, or having received, a CPP or QPP pension before the age of 65 years. 5.4(3) Under subsection 21(14) of the Act (integration with government plans), a plan may allow a member to elect to receive a pension, the amount of which is varied by reference to CPP, QPP or OAS benefits. If the plan so provides, and the member makes the election, (a) the actuarial value of the pension as varied must not be less than the actuarial value of the pension without the variation; (b) the administrator must not allow a member with a spouse or common-law partner to make the election unless the spouse or common-law partner (i) has received a copy of the retirement statement required under subsection 3.35(1) (statement on retirement), and (ii) has provided to the administrator, in a form approved by the superintendent, his or her written consent to the election; and (c) the reduction pursuant to such an election must occur no later than the first day of the month following the first month in which the member is entitled to unreduced CPP or QPP benefits, as the case may be. 5.4(4) Under subsection 21(16) of the Act (reduction for CPP or QPP), the maximum amount by which a member's pension under a defined benefit provision may be reduced by reason of the member's entitlement to CPP or QPP benefits must not exceed the amount determined by a prescribed formula. For this purpose, the prescribed formula is Maximum reduction = A × B/420 In this formula, A is the maximum unreduced monthly pension payable under the CPP or QPP, as the case may be, on the date as of which the member's defined benefit is determined; B is the lesser of 420 and the number of months of employment credited to the member under the defined benefit provision. M.R. 205/2011 Lump sum transferable to RRSP or RRIF 5.5 If an amount is payable to a person as a lump sum under a plan, the plan must allow it to be transferred, at the person's option, to an RRSP or RRIF to the extent permitted under the Income Tax Act (Canada). M.R. 63/2021 Commuted Values Requirements for determining commuted values 5.6 The commuted values under section 5.7 and 5.8 must be determined (a) in accordance with the standards of practice issued by the Canadian Institute of Actuaries, as amended from time to time; and (b) in accordance with any additional directions from the superintendent. Commuted value determination and adjustment 5.7(1) If the commuted value of benefits under a defined benefit provision is to be paid or transferred upon or as a result of the termination of active membership, commencement of the member's pension, death or separation or garnishment, the commuted value must be determined as at the date of that event. 5.7(2) Except as otherwise provided in this regulation, interest must be credited and paid on the commuted value determined under subsection (1) at a rate not less than the rate of interest used to determine the commuted value, for the period from the date of that event to a date not earlier than the end of the month immediately preceding the month in which the payment or transfer is made. 5.7(3) If the date of the payment or transfer is more than 120 days after the event date as of which the commuted value was determined, the administrator may redetermine the commuted value as of the date of payment or transfer rather than adjusting for interest under subsection (2). Determining commuted value and adjustment on termination of plan 5.8(1) If the commuted value of benefits under the defined benefit provision of a plan is to be paid or transferred because the entire plan is being terminated or wound up the commuted value is to be determined as of the termination date of the plan. 5.8(2) Interest must be credited and paid on the commuted value determined under subsection (1) for the period between the termination date of the plan and a date not earlier than the end of the month immediately preceding the month in which the payment or transfer is made at a rate equal to the rate of return that can reasonably be attributed to the operation of the pension fund for that period. Excess Member Contributions Interest on excess member contributions 5.9(1) If, upon the termination of a plan, a member is entitled to a refund or transfer of excess contributions under subsection 21(11) of the Act (fifty-percent rate for post-1984 benefits), the amount of the excess contributions must be determined as of the termination date of the plan. 5.9(2) Interest must be credited and paid on the amount of excess contributions for the period from the termination date of the plan to a date not earlier than the end of the month immediately preceding the month in which the refund or transfer is made at a rate equal to the rate of return that can reasonably be attributed to the operation of that part of the pension fund holding those contributions, for that period. Division of excess member contributions 5.10 For the purpose of the division of an active member's pension benefit credit under subsection 31(2) of the Act (division of pension on breakdown of relationship), the member's entitlement under subsection 21(11) of the Act to a refund or transfer of excess contributions (a) must be determined as of the date of separation as if the member ceased to be an active member on that date; and (b) must be included in the member's pension benefit credit as of the date of separation. Survivor's right to excess member contributions 5.11 If a plan with a defined benefit provision is required to include the provision described by subsection 21(11) of the Act, the plan must also ensure that the surviving spouse or common-law partner of a member entitled to benefits under that provision has the same rights that the member would have had under that provision if the member had not died but ceased to be an active member on the day that he or she died. ffect of DB-to-DC conversion on excess member contributions 5.12 If a plan is amended to convert benefits accrued under a defined benefit provision before the effective date of the amendment into benefits under a defined contribution provision, subsection 21(11) of the Act applies as if each active member under the defined benefit provision had ceased to be an active member at the time of the conversion. Optional Ancillary Contribution Locked in Optional ancillary contribution with locked-in money 5.13 A pension plan may permit a member to make an optional ancillary contribution with money that was locked-in immediately before the contribution was made. Despite subsection 21(3.2) of the Act (exception for voluntary contributions), such a contribution, and the interest earned on it, continue to be locked in under subsection 21(3) of the Act (locking in). Ancillary Benefits Ancillary benefits 5.14(1) Section 21.1 of the Act allows a pension plan to provide prescribed ancillary benefits. The following benefits are prescribed for this purpose: (a) disability benefits; (b) bridging benefits; (c) temporary supplementary benefits, other than bridging benefits; (d) any of the following benefits in excess of those required by the Act or this regulation: (i) pre-retirement death benefits, (ii) early retirement benefits, (iii) joint and survivor pensions, (iv) postponed retirement benefits; (e) cost-of-living adjustments, except to the extent those benefits are required to be paid under a plan. 5.14(2) Subsection 21.1(2) of the Act (entitlement to ancillary benefit) does not apply to an optional ancillary benefit. 5.14(3) A plan that allows for optional ancillary contributions must provide for them to be converted to ancillary benefits (a) on an actuarially equivalent basis consistent with an accepted actuarial practice established by the Canadian Institute of Actuaries; or (b) on any other basis considered reasonable by the superintendent and permitted by the Income Tax Act (Canada). M.R. 63/2021 Equivalent Benefits Wording re equivalent benefits 5.15 The following wording is prescribed for the purpose of clause 37(f) of the Act: "Where a person (a) ceases to be an active member of a pension plan with an employer who has established or is participating in a pension plan that has included the same or equivalent wording as this wording (hereinafter called a "reciprocating employer"), and becomes a member of this plan; or (b) ceases to be a member of this plan and becomes employed with a reciprocating employer; and the person does not elect to transfer the commuted value of his or her pension from the plan operating in respect of employees of the reciprocating employer or from this plan as applicable, to a prescribed retirement savings plan or prescribed retirement benefit plan, the period of employment or membership that applies in determining the person's eligibility for a pension under the plan operating in respect of employees of the reciprocating employer, must be added to the period of employment or membership that applies in determining the person's eligibility for a pension under this plan, but the amount of the pension under this plan must be based on the person's participation in this plan and must be determined as at the date the pension is to commence." Phased Retirement Benefits Plan provisions for phased retirement benefits 5.16(1) Under section 21.5 of the Act (phased retirement), a plan may provide for benefits, commonly known as "phased retirement benefits", to be paid to members before they are fully retired and while they are still accruing benefits. This section applies to a plan with such a provision. 5.16(2) Phased retirement benefits may be provided for only under a defined benefit provision of a plan. 5.16(3) A plan that provides for phased retirement benefits must comply with the provisions of the Income Tax Regulations (Canada) as they relate to (a) a member's eligibility for the payment of phased retirement benefits; (b) the commencement of a member's phased retirement benefits; (c) the maximum amounts payable as phased retirement benefits; (d) the redetermination of a member's retirement benefits when the member ceases to be an active member; and (e) the death of a member while he or she is still employed and receiving phased retirement benefits. Forfeiture of Minimal Benefit Under Specified Multi-employer Plan or Multi-unit Pension Plan Forfeiture of minimal benefit under specified multi-employer plan or multi-unit pension plan 5.16.1(1) Under subsection 26.1(9) of the Act, a pension benefit credit under a specified multi-employer plan or a multi-unit pension plan may be forfeited to the plan in accordance with the regulations if, among other things, the pension benefit credit is less than a prescribed amount. For this purpose, (a) the prescribed amount is (i) in the case of a pension provided under a defined benefit provision, the greater of (A) 20% of the YMPE for the year in which the member last contributed to the plan, and (B) the amount that would be the pension benefit credit if the annual pension payable to the member at normal retirement age was equal to 4% of the YMPE for the year in which the member last contributed to the plan, and (ii) in the case of a pension under a defined contribution provision, 20% of the YMPE for the year in which the member last contributed to the plan; and (b) in determining whether the pension benefit credit is less than the prescribed amount, the pension benefit credit is to be determined as at the date of the member's last contribution to the plan and in accordance with section 5.6. 5.16.1(2) No amount is to be forfeited under subsection 26.1(9) of the Act unless the plan provides for the forfeiture of the pension benefit credit in the manner permitted by that subsection. 5.16.1(3) When calculating a member's pension benefit credit for the purpose of subsection 26.1(9) of the Act, the following must be aggregated: (a) the member's pension benefit credits under all plans to which the employer is making or has made contributions in respect of the member; (b) if the member is a member of more than one plan as a result of a transaction described in subsection 8.2(1) (predecessor and successor employers), the member's pension benefit credit under all such plans; (c) if the member is entitled to benefits under both a defined benefit provision and a defined contribution provision, the member's pension benefit credits under both provisions. M.R. 205/2011 ; 63/2021 DIVISION 3 INTEREST Minimum rate of interest 5.16.2 Nothing in this Division restricts or prohibits the payment of interest at a rate greater than a rate of interest at which interest is required to be paid under this Division. M.R. 205/2011 Interest on contributions — defined benefit provision 5.17(1) Subsection 25(1) of the Act requires a plan with a defined benefit provision to provide for interest to be credited on member contributions at least once every 12 months at a rate prescribed by regulation. This section specifies that rate. 5.17(2) For required contributions, the rate of interest is either of the following rates: (a) the rate of return that can reasonably be attributed to the operation of the part of the pension fund holding those contributions for the most recently completed period for which interest is to be applied; (b) the average of the CANSIM Series V 80691336 rates published by the Bank of Canada on the last Wednesday of each month for the months for which interest is payable, using the most recently published rate for any month for which the rate has not yet been published. 5.17(3) For voluntary additional contributions and optional ancillary contributions made by members, the rate of interest is equal to the rate of return that can reasonably be attributed to the operation of that part of the pension fund holding those contributions for the most recently completed period for which interest is to be applied. 5.17(4) Interest to be credited under this section must be compounded at least annually. M.R. 63/2021 Interest on contributions — other pension plans 5.18(1) Subsection 25(3) of the Act requires a plan, other than a defined benefit plan, to provide for interest to be credited on member and employer contributions in accordance with the regulations. For this purpose, a plan must provide for interest to be credited at least once every 12 months, at a rate equal to the rate of return that can reasonably be attributed to the operation of that part of the plan's pension fund holding those contributions for the most recently completed period for which interest is to be applied. 5.18(2) Interest to be credited under subsection (1) must be compounded at least annually. Interest on refunds, transfers or withdrawals 5.19(1) This section applies when a person is entitled, (a) in respect of a defined benefit provision, (i) to a refund under subsection 22(1) of the Act (refund of contributions) of a member's voluntary additional contributions, optional ancillary contributions or excess contributions, or (ii) to a transfer under subsection 22(2) of the Act (transfer of benefits) of a member's voluntary additional contributions or optional ancillary contributions; or (b) in respect of a defined contribution provision, (i) to a refund under subsection 22(1) of the Act of the member contributions and the employer contributions allocated to the member, or (ii) to a transfer under subsection 22(2) of the Act of member contributions and of employer contributions allocated to the member. 5.19(2) Interest must be paid on a refund or transfer described in subsection (1) for the period from the beginning of the fiscal year in which the refund or transfer is made, to a date not earlier than the end of the month immediately preceding the month in which the refund or transfer is made. The rate of interest is that provided for in section 5.21. The interest must be compounded at least monthly. 5.19(3) This section also applies to a refund or withdrawal of funds or a payment or transfer from a pension plan under Divisions 3, 5, 6, 7, 8 and 10 of Part 10, with necessary changes. Interest on late pension payments 5.20 When a person is entitled to a series of payments under Division 7 of Part 10 (commutation or withdrawal on shortened life expectancy), or to periodic pension payments from a plan, and the administrator fails to make a payment within the time required under the terms of the plan, the administrator must make the payment with interest, for the period from the first day of the month following the date the payment was due to the date it is made. The rate of interest is that provided for in section 5.21. M.R. 205/2011 Rate of interest under sections 5.19 and 5.20 5.21(1) For the purposes of sections 5.19 and 5.20, interest is to be credited (a) in respect of a defined benefit provision, at either of the following rates: (i) the rate of return that can reasonably be attributed to the operation of that part of the pension fund holding those contributions for the most recently completed period for which interest is to be applied, (ii) the average of the CANSIM Series V 80691336 rates published by the Bank of Canada on the last Wednesday of each month for the months for which interest is payable, using the most recently published rate for any month for which the rate has not yet been published; and (b) in respect of a defined contribution provision, at a rate equal to the rate of return that can reasonably be attributed to the operation of that part of the pension fund holding those contributions, for the most recently completed period for which interest is to be applied. 5.21(2) When the rate applied to a refund of contributions referred to in subclause (1)⁠(a)⁠(i) would result in a negative interest rate, the interest rate is 0%. 5.21(3) An administrator who chooses a rate of interest under clause (1)⁠(a) must use that rate for all refunds, transfers, withdrawals or payments made within a fiscal year in respect of a defined benefit provision. M.R. 63/2021 Investment expenses and administration costs 5.22(1) Subject to subsection (2), in calculating a rate of return under this Part, the administrator must deduct investment expenses and administration costs that have been paid from the fund during the period for which interest is to be applied, if the plan provides that the plan's investment expenses and administration costs are payable from the plan's fund. 5.22(2) If a defined benefit provision allows the calculation of a rate of return without deduction of investment expenses or administration costs, subsection (1) does not apply to that calculation. M.R. 205/2011 DIVISION 4 TRANSITIONAL Transitional provision re pension under insured plan 5.23(1) Subsection 14(2) of the former regulation continues to apply to a plan insured by individual level premium contracts. 5.23(2) In this section, "former regulation" means the Pension Benefits Regulation , Manitoba Regulation 188/87 R, as it read immediately before it was repealed. PART 6 VARIABLE BENEFITS Overview 6.1 A pension plan with a defined contribution provision may provide for variable benefits mentioned in paragraph 8506(1)⁠(e.1) of the Income Tax Regulations (Canada). This Part sets out (a) requirements for the provisions of a pension plan that provides for variable benefits; (b) rules relating to transfers to and from the accounts established for variable benefits; and (c) rules respecting information to be provided to persons entitled to variable benefits. M.R. 63/2021 Definitions 6.2 The following definitions apply in this Part. "DC account" of a member means the portion of the member's pension benefit credits under a pension plan that is attributable to the plan's defined contribution provision and has not been transferred or credited to the member's VB account. (« compte CD ») "Manitoba locked-in money" has the same meaning as in Part 10 (transfers and withdrawals).

(« sommes immobilisées assujetties aux mesures législatives du Manitoba ») "member" of a pension plan includes a former member of the pension plan. (« participant ») "specified beneficiary" , in relation to a defined contribution provision of a pension plan as it relates to a member, means an individual who is a specified beneficiary under subsection 8506(8) of the Income Tax Regulations (Canada) in relation to that provision and that member. (« bénéficiaire déterminé ») "VB account" means an account under the defined contribution provision of a pension plan that is used, or is to be used, for providing a VB pension to the member for whom the account was established, or to a beneficiary of that member. (« compte PV ») "VB participant" , in relation to a VB account, means (a) the member of the pension plan for whom the account has been, or is to be, established; and (b) after the member's death, if the plan so permits, the specified beneficiary in whose name the VB account is, or is to be, continued. (« adhérent PV ») "VB pension" means a pension consisting of variable benefits mentioned in paragraph 8506(1)⁠(e.1) of the Income Tax Regulations (Canada). (« pension PV ») M.R. 63/2021 Prescribed arrangement 6.3 An arrangement under which a VB pension is, or is to be, provided is prescribed for the purpose of subsection 21(13.1) of the Act (transfer to retirement benefit plan) if the arrangement meets the requirements of this Part. Provision for VB pension 6.4(1) A pension plan with a defined contribution provision may provide for a VB pension in accordance with this section. 6.4(2) A pension plan that provides for a VB pension must provide that (a) all or any part of the pension benefit credits under a member's DC account may be transferred to his or her VB account, but only in accordance with this section and the provisions of the plan; (b) only a member who has reached the early retirement age under the defined contribution provision of the plan may elect to transfer pension benefit credits to a VB account; (c) no pension benefit credits shall be transferred to the VB account of a member with a spouse or common-law partner unless the member and the spouse or common-law partner have waived their right to a joint pension in accordance with subsection 23(4) of the Act (waiving joint pension); (d) a transfer of pension benefit credits to a member's VB account is not the commencement of the member's pension under his or her DC account; (e) the balance in the VB account will be administered as Manitoba locked-in money under the Act until paid out or transferred as permitted by this Part; (f) the VB pension payable to a member for a calendar year must be (i) not less than the minimum amount determined for that year under subsection 8506(5) of the Income Tax Regulations (Canada), and (ii) not more than the maximum amount determined for that year under the plan's provisions for determining that maximum amount; (g) the VB participant may notify the administrator in writing, within 60 days after receiving the annual statement required under section 6.10, (annual statement to VB participant) of the amounts to be paid as a VB pension, and the frequency and method of payment, (i) during the current year, or (ii) if the VB account rate of return is guaranteed by the plan for a period longer than one year, during any longer period ending not later than the end of the period for which the rate of return is guaranteed; (h) subject to the minimum and maximum referred to in clause (f), the VB participant may at any time, by written notice to the administrator, increase or decrease the amounts to be paid as a VB pension in the year; (i) if the VB participant does not notify the administrator of the amounts to be paid as a VB pension, the amounts to be paid will be as set out in the latest annual statement provided to the participant under section 6.10; (j) if a person receiving a VB pension from the plan is rehired by an employer under the plan, (i) the person may immediately become an active member if he or she belongs to the class of persons who are eligible to participate in the plan, (ii) at the person's option, the VB pension payments may continue or be suspended until the person's active membership in the plan is next terminated, and (iii) any additional pension benefit credits earned in respect of the further period of employment must not be credited to the person's VB account while he or she remains an active member in respect of that employment; (k) after the death of the member, the balance of the VB account must be paid, within 90 days after the delivery to the administrator of the relevant documents required by the administrator, (i) to the member's surviving spouse or common-law partner, unless the spouse or common-law partner (A) was living separate and apart from the member by reason of a breakdown of their relationship, or (B) has provided a death benefit waiver in relation to the balance in the VB account and has not revoked it, or (ii) in any other case, as a lump sum to the designated beneficiary or, in the absence of a designated beneficiary, to the deceased's estate; and (l) the surviving spouse or common-law partner entitled to the balance under subclause (k)⁠(i) may require it to be (i) paid as a lump sum, (ii) transferred to a registered retirement savings plan or registered retirement income fund under the Income Tax Act (Canada), to the extent permitted by or under that Act, or (iii) used to purchase a life insurance contract. 6.4(3) Despite clauses (2)⁠(k) and (l), a plan may provide for the deceased member's or former member's VB pension to continue to be paid, after his or her death, to his or her surviving spouse or common-law partner if that spouse or common-law partner (a) is a specified beneficiary in relation to the deceased member or former member; and (b) elects to continue receiving the VB pension instead of requiring it to be paid or transferred as provided for in the plan in accordance with clause (2)⁠(l). M.R. 205/2011 Waiver of death benefit 6.5(1) A person who is or might become entitled under subclause 6.4(2)⁠(k)⁠(i) to the balance of the VB account on the death of the member may waive that entitlement in accordance with this section after receiving the documents to be provided under subsection (2). 6.5(2) Upon receiving notice from a person that he or she wishes to waive his or her entitlement under subclause 6.4(2)⁠(k)⁠(i), the administrator must provide the following to the person: (a) the account balance as at the date of the notice; and (b) the form of waiver approved by the superintendent for this purpose. 6.5(3) To waive his or her entitlement, the person must (a) sign the waiver form in the presence of a witness and, if the waiver was given before the member's death, not in the presence of the member; and (b) provide the signed waiver to the administrator. 6.5(4) A waiver under this section may be revoked before the death of the member by filing with the administrator a written revocation signed by the member and the spouse or common-law partner who granted the waiver. Transfers to VB account 6.6(1) Subject to subsection (2), a pension plan that provides for a VB pension may provide that a member may transfer to his or her VB account, to the extent permitted by or under the Income Tax Act (Canada), his or her pension benefit credits from (a) a LIRA or LIF; or (b) another pension plan, if permitted by the terms of that other plan. 6.6(2) A pension plan must not allow a member who has a spouse or common-law partner to transfer pension benefit credits from a LIRA to a VB account unless the member and the spouse or common-law partner have waived their right to a joint pension in accordance with subsection 23(4) of the Act (waving joint pension). M.R. 205/2011 Transfers from VB account 6.7(1) Subject to subsections (2) and (3), subsection 6.8(2) and the Income Tax Act (Canada), a pension plan that provides for a VB pension must provide that the VB participant may transfer all or any part of the pension benefit credits in his or her VB account (a) to a LIF or LIRA; (b) to another pension plan, if permitted by the terms of that other plan; or (c) to purchase an annuity. 6.7(2) A pension plan that provides for a VB pension must provide that no amount may be transferred from a VB account if, because of the transfer, the transferred pension benefit credit or the remaining pension benefit credit may be commuted under subsection 21(4) of the Act (commutation of small pension) or Division 6 of Part 10 (commutation of small pension and withdrawals from small LIRAs and LIFs). 6.7(3) An administrator must not transfer pension benefit credits from a VB account unless (a) the administrator making the transfer has advised the administrator to whom the transfer is made that the amount to be transferred is a pension benefit credit and constitutes Manitoba locked-in money; (b) if the transfer is to a LIF or LIRA, the transfer is made in accordance with Part 10 (transfers and withdrawals); (c) if the transfer is to another pension plan or to purchase an annuity, the administrator of that other plan or the issuer of the annuity has acknowledged in writing that the amount transferred is, and will be administered as, Manitoba locked-in money; and (d) the transfer is made within 90 days after (i) the administrator received the transfer request and all other documents required to authorize the transfer, or (ii) if investments in the VB account are subject to a fixed term, the end of that term. 6.7(4) Within 60 days after receiving a written request from a VB participant to transfer an amount from a VB account, the administrator must provide to the participant a statement containing the following information, as of the date of receipt of the request (the "request date"): (a) the name of the pension plan and its Canada Revenue Agency number; (b) the participant's name; (c) the date the VB pension commenced; (d) the account balances as at the beginning of the year and at the request date; (e) the income and gains, net of losses, earned during the year up to the request date; (f) the total of the amounts paid as a VB pension to the participant in the year up to the request date; (g) the amounts transferred to the participant's VB account during the year up to the request date, and their source; (h) the amount and nature of the fees charged to the VB account during the year up to the request date; (i) the amount available to be transferred; (j) the minimum and maximum amounts that may be paid in the year, as set out in the latest annual statement provided under section 6.10; (k) a statement that the transferred pension benefit credits must be administered as Manitoba locked-in money in accordance with the Act and this regulation. 6.7(5) Within 30 days after making a transfer from a VB account, the administrator must provide the following to the administrator to whom the transfer is made: (a) a statement reconciling the VB account immediately after the transfer with the balance as at the end of the immediately previous year, showing the amounts deposited into, the investment income, gains and losses earned by, the payments made out of, and the fees charged against, the VB account during the intervening period; (b) a copy of any decision made by the member or former member respecting the amount to be withdrawn during the current year; (c) a copy of the most recent waiver of a joint pension provided by the member and the member's spouse or common law partner to the administrator; (d) a statement that the transferred pension benefit credits must be administered as Manitoba locked-in money in accordance with the Act and this regulation. M.R. 205/2011 Maximum income payable 6.8(1) The provisions in a pension plan for determining the maximum VB pension payable in a calendar year must provide that the maximum amount payable is the greatest of the following amounts: (a) the amount determined by the following formula: Maximum = F × B In this formula, F is the factor (from the table in Schedule 2 of Division 2 of Part 10) that corresponds to the reference rate for the year and the VB participant's age at the end of the immediately preceding year, B is the balance of the VB account at the beginning of the year plus the total of all amounts transferred to the VB account in the year, other than amounts transferred directly or indirectly from a LIF, PRPP account as defined in Part 10, or another VB account; (b) the minimum amount determined for the year under subsection 8506(5) of the Income Tax Regulations (Canada); (c) the total of (i) the income and gains earned by the VB account in the immediately preceding year, net of any losses realized by it in that preceding year, and (ii) 6% of all amounts transferred to the VB account during the current year, other than amounts transferred directly or indirectly from a LIF or another VB account. 6.8(2) When an amount is transferred in a calendar year from a VB account to a LIF or another VB account, the VB participant must be paid from the account to which the transfer was made all amounts that were to be paid to the VB participant from the VB account for that year. M.R. 205/2011 ; 80/2017 Commutation or surrender 6.9 In determining whether a VB account established for a member is capable of surrender or commutation at any time under subsection 21(4) of the Act, (a) the member is deemed to have retired at that time; and (b) the balance at that time, if any, in the member's DC account must be added to the balance in the VB account. Annual statement to VB participant 6.10 Within 60 days after the end of each year, the administrator must provide to each VB participant who received a VB pension in that year a statement containing the following information: (a) the name of the pension plan and its Canada Revenue Agency number; (b) the participant's name; (c) the date of birth used to determine the minimum VB pension payable for the year; (d) if the pension is being paid to the member, the name of the member's spouse or common-law partner or designated beneficiary, if any; (e) the date the VB pension commenced; (f) the account balances at the beginning and end of the year; (g) the income and gains, net of losses, earned by the VB account during the year; (h) the total of the amounts paid as a VB pension to the participant during the year; (i) the amounts transferred to the participant's VB account during the year and their source; (j) the amount and nature of the fees charged to the participant's VB account in the year; (k) information about the election that the participant may make regarding the amount to be paid, including information about (i) the minimum and maximum amounts payable, (ii) how the participant may make the election, and the deadline for making it, (iii) the amount that will be paid if the participant does not make the election, and (iv) how the participant may change his or her election. Statement after death of VB participant 6.11 Within 60 days after being properly notified of the death of a VB participant who died while in receipt of a VB pension, the administrator must provide to the person entitled to receive the balance of the VB account a statement containing the following information: (a) the name of the pension plan and its Canada Revenue Agency number; (b) the participant's name; (c) the date the VB pension commenced; (d) the account balances as at the beginning of the year and the date of death; (e) the income and gains, net of losses, earned during that year before the date of death; (f) the total of the amounts paid as a VB pension to the participant in that year; (g) the amounts transferred to the participant's VB account during the year and their source; (h) the amount and nature of the fees charged to the VB account during the year; (i) information about the payment and transfer options available to the recipient, including (i) how the recipient is to make an election, and the deadline for making it, and (ii) the balance in the account will be paid or transferred if the recipient does not make an election. PART 7 TERMINATION AND WINDING UP OF PLANS Overview 7.1 This Part supplements the provisions of the Act that apply when a pension plan, or part of a pension plan, is terminated or wound up. Interpretation 7.2 Unless otherwise specified, a reference to the termination or winding up of a plan in this Part, includes a reference to the termination or winding up of part of a plan. Termination of plan 7.3 For the purposes of this Part, a plan is terminated (a) when the commission refuses to register the plan; (b) when the commission cancels the plan's registration; (c) when the employer suspends or ceases making contributions to a plan or suspends or ceases crediting any benefits under the plan, if the suspension or cessation affects all members and other beneficiaries of the plan; (d) on the date set out in a notice of termination filed with the commission under subsection 26(4) of the Act (notification of termination of plan); (e) when the commission makes a declaration under subsection 33(1) of the Act (declaration by commission as to termination of plan) that the plan is terminated. M.R. 205/2011 Partial termination of plan 7.4(1) The following result in the partial termination of a plan: (a) the commission makes a declaration under subsection 33(1) of the Act that a part of the plan is terminated; (b) subject to subsection 26.1(12) of the Act (no partial termination), the employer suspends or ceases making contributions respecting a specific and identifiable class or group of members and other beneficiaries of the plan; (c) the employer suspends or ceases crediting any benefits under the plan respecting a specific and identifiable class or group of members. 7.4(2) In the circumstances set out in clause (1)⁠(b) or (c), the only part of the plan that is terminated is the part that relates to the specific and identifiable class or group of members and other beneficiaries affected by the actions of the employer. M.R. 205/2011 Exception 7.5 If contributions to a plan cease because a new plan has been adopted or the members have joined another plan (a) the termination provisions of this Part do not apply to the original plan; and (b) the benefits of the original plan are deemed to be benefits associated with the new plan for service prior to the establishment of the new plan, whether or not the assets and liabilities of the original plan have been consolidated into the new plan . Notice of termination 7.6(1) The administrator must give written notice of the termination of a plan or the partial termination of a plan to all members and other beneficiaries affected by the termination. Subject to subsection (2), the notice must be given within 60 days after the occurrence of an action set out in section 7.3 or 7.4 that resulted in the termination. 7.6(2) If an appeal is filed respecting an action set out in section 7.3 or 7.4, the notice of termination must be served within 60 days after a decision is made upholding the action in question. Termination report 7.7(1) Within six months after the termination of a plan, the administrator must file with the commission a termination report that sets out (a) the names of the members and other beneficiaries under the plan; (b) the assets and liabilities of the terminated plan; (c) in the case of a plan with a defined benefit provision, (i) where there is a solvency deficiency in the plan, information on the payments required under section 4.19 to amortize the deficiency and the date on which the deficiency will be fully amortized, (ii) where there is a surplus in the plan, a description of the manner in which the surplus is to be utilized, and (iii) if a solvency reserve account has been established in respect of the plan, a description of the manner in which any amount in the account is to be utilized; (d) the proposed benefits to be provided to members and other beneficiaries under the terminated plan; (e) where there is a solvency deficiency in a plan with a defined benefit provision, a description of the methods of allocation or priorities, in accordance with section 7.11, 7.13 or 7.15, as applicable, for determining the partial benefits payable; and (f) any other information that the superintendent requires to ensure that the termination and winding up of the plan will comply with the Act and this regulation. 7.7(2) A termination report must be prepared by the following: (a) a representative of the fund holder who is authorized by the fund holder, the administrator or a person approved by the superintendent, in the case of a plan that has only a defined contribution provision; (b) an actuary, in the case of a plan with a defined benefit provision; (c) a person authorized by the insurer, in the case of an insured plan. M.R. 142/2021 Payment on termination 7.8(1) Subject to subsection (3), the administrator must not apply the assets of a terminated plan toward the payment of pensions or pension benefit credits under the plan until the superintendent has approved the termination report. 7.8(2) Once the termination report has been approved, the administrator must apply the assets of the terminated plan first toward the payment of pensions and pension benefit credits as proposed in the termination report. 7.8(3) The administrator may continue to pay pensions to members and other beneficiaries whose pension commenced before the date of termination, and may make any other payments approved by the superintendent. Termination statement to members and beneficiaries 7.9 Subject to subsection 7.10(3), within 60 days after the termination report is approved by the superintendent, the administrator must provide each member and other beneficiary with a termination statement that complies with the applicable requirements of Schedule A (Statements). Winding up 7.10(1) Subject to subsection (2), the administrator of a terminated plan must wind up the plan as soon as possible after the termination report for the plan is approved by the superintendent. 7.10(2) The administrator may delay the winding up of a terminated plan with the written approval of the superintendent. The approval may be subject to terms and conditions. 7.10(3) When approving a delay in the winding up of a plan, the superintendent may exempt an administrator from the requirement to provide members and other beneficiaries with a termination statement as required under section 7.9. If an exemption is granted, the administrator must provide those persons with a termination statement within 60 days after the supplemental termination report under subsection (4) is approved by the superintendent. 7.10(4) If the winding up of a plan does not begin immediately after the plan is terminated, the administrator must file a supplemental termination report with the commission that sets out the information required under section 7.7, but that is updated in a manner acceptable to the superintendent. The supplemental termination report must be filed by a deadline specified by the superintendent. 7.10(5) If a plan does not provide for the payment of expenses incurred in the winding up of the plan, the superintendent may, by written authorization, allow reasonable expenses related to the winding up of the plan to be paid in priority to benefits payable under the plan. Initial benefit if there is a solvency deficiency in a terminated plan 7.11 Subject to section 7.13 and 7.15, if a terminated plan has a solvency deficiency, the administrator must pay or transfer, subject to the locking-in requirements of the Act and Part 10, an initial benefit to or for the benefit of each member or other beneficiary that is calculated by multiplying the commuted value of his or her benefit entitlement as of the termination date of the plan by the solvency ratio of the plan. Requirement to amortize solvency deficiency 7.12(1) A solvency deficiency in a terminated plan, other than a specified multi-employer plan or a multi-unit pension plan, must be amortized in accordance with section 4.19. 7.12(2) Within 60 days after the last payment is made to amortize a solvency deficiency as required by section 4.19 (solvency deficiency on termination), the administrator must file with the commission an updated termination report under section 7.7 for the plan. 7.12(3) When a solvency deficiency in a terminated plan has been amortized and the updated termination report under subsection (2) has been approved by the superintendent, the administrator must, subject to the locking-in requirements of the Act and Part 10, pay or transfer to each member and other beneficiary the balance of the commuted value of the person's benefit that was not paid as an initial benefit under section 7.11, adjusted for interest for the period between the termination date of the plan and the time that the unpaid balance is paid at a rate equal to the rate of return that can reasonably be attributed to the operation of the pension fund for that period. 7.12(4) Section 5.22 applies to the calculation of a rate of return under subsection (3). M.R. 205/2011 ; 63/2021 Partial benefits if employer bankrupt 7.13(1) If a terminated plan with a defined benefit provision has a solvency deficiency and the sponsoring employer has declared bankruptcy the actuary who prepares the termination report for the plan must propose that the assets of the plan be allocated to provide, subject to the locking-in requirements of the Act and Part 10, partial benefits in accordance with subsection (2). 7.13(2) In the circumstances set out in subsection (1), the assets of the plan are to be allocated as set out below to provide the following to members and other beneficiaries: (a) assets must first be allocated to provide for benefits equal to the value of member voluntary and required contributions, with interest in accordance with section 5.17 (interest on contributions-defined benefit provision); (b) if assets remain after the allocation under clause (a), the assets must be allocated to provide for accrued benefits in respect of which no unfunded liability exists; (c) if assets remain after the allocation under clause (b), the assets must be allocated to provide for accrued benefits in respect of which an unfunded liability exists. 7.13(3) An unfunded liability in respect of any benefits at the date of termination has the effect of reducing those benefits in proportion to the extent to which those benefits remain unfunded. 7.13(4) Each unfunded liability is to be dealt with separately and applied only to the benefits in respect of which it was established. Partial benefits when amortization not completed 7.14(1) When there is a solvency deficiency in a terminated plan and the termination report for the plan is approved by the superintendent and (a) some, but not all, of the payments have been made to amortize the solvency deficiency as required by subsection 7.12(1); and (b) the assets of the plan are not sufficient to pay the outstanding benefits payable in accordance with subsection 7.12(3); the administrator must file with the commission an updated termination report under section 7.7 for the plan that provides for reduced final benefits as set out in subsection (2). 7.14(2) If the updated termination report is approved by the superintendent, the administrator must pay or transfer, subject to the locking-in requirements of the Act and Part 10, a reduced final benefit to each member and other beneficiary that is calculated by multiplying the balance of the commuted value of the person's benefit that was not paid as an initial benefit under section 7.11 by the solvency ratio of the plan in the updated termination report. Partial benefits when solvency deficiency in a specified multi-employer plan or multi-unit pension plan 7.15(1) Section 7.13 applies when there is a solvency deficiency in a specified multi-employer plan or a multi-unit pension plan that has been completely terminated. 7.15(2) If part of a specified multi-employer plan or a multi-unit pension plan relating to a specific employer is terminated, the administrator must pay or transfer, subject to the locking-in requirements of the Act and Part 10, a reduced benefit to each member and other beneficiary in the terminated part of the plan that is calculated by multiplying the commuted value of their benefit entitlement as of the termination date of that part of the plan by the solvency ratio of that part of the plan as at the termination date. M.R. 63/2021 Refunding residual solvency reserve 7.15.1 If when a plan is terminated or wound up there remains a residual amount in the plan's solvency reserve account after the plan has met its pension and other benefit obligations, the residual amount may be refunded to the employer if (a) the employer makes a written request to the superintendent, accompanied by such information supporting the request as the superintendent considers sufficient; and (b) the superintendent consents to the refund in writing. M.R. 142/2021 Annual information returns 7.16(1) If a plan is terminated within three months of the plan's last fiscal year, the annual information return required under subsection 3.26(1) does not have to be filed for the year of termination. 7.16(2) If a plan is terminated more than three months after the end of the plan's last fiscal year, the annual information return required under subsection 3.26(1) must be filed for the year of termination within 180 days after the plan is terminated. 7.16(3) Despite subsections (1) and (2), if a terminated plan has a solvency deficiency, the administrator must file an annual information return for the plan until the deficiency is amortized in accordance with section 4.19. 7.16(4) Subsection (3) does not apply to a specified multi-employer plan, a multi-unit pension plan or a plan referred to in section 7.13. M.R. 205/2011 ; 63/2021 Partial termination of plan 7.17(1) If only part of a plan is terminated, the entitlement of members and other beneficiaries affected by the partial termination must not be less than if the entire plan had been terminated on the date of the partial termination. 7.17(2) Subsection (1) does not apply to a specified multi-employer plan or a multi-unit pension plan. M.R. 63/2021 PART 8 PREDECESSOR AND SUCCESSOR PLANS AND EMPLOYERS Overview 8.1 This Part sets out the rules that apply when an employer who contributes to a pension plan sells or otherwise disposes of all or part of the employer's business and the employer's employees become employees of the person acquiring that business. Continuation of benefits under successor employer 8.2(1) When (a) an employer (in this Part called the "predecessor employer") who contributes to a plan sells, assigns or otherwise disposes of all or part of the employer's business or undertaking or all or part of the assets of the employer's business or undertaking; (b) in conjunction with the sale, assignment or disposition, an employee who is a member of the plan becomes an employee of the successor employer; and (c) the successor employer does not assume responsibility for the accrued benefits of the predecessor employers' plan; the employee continues to be entitled to the pension and other benefits provided under the predecessor employer's plan in respect of the period of membership in the predecessor plan, without further accrual. 8.2(2) When a transaction described in subsection (1) takes place, (a) the transaction does not in itself effect or result in a break in or cessation of employment or plan membership for the purpose of the Act and this regulation; and (b) an employee's employment is deemed to include both his or her employment with the predecessor employer and the successor employer, without interruption, for the purpose of determining (i) the length of employment with respect to any eligibility condition of the successor employer's plan, and (ii) whether the employee is entitled to a benefit under the predecessor employer's plan or the successor employer's plan. 8.2(3) When a transaction described in subsection (1) takes place and the successor employer assumes responsibility for the accrued benefits of a predecessor employer's pension plan, the superintendent's prior written consent is needed before any assets and liabilities respecting the affected members are transferred to the successor employer's existing or newly established plan. Notice to persons affected 8.3 When a transaction described in subsection 8.2(1) takes place, the administrator of the predecessor employer's plan must (a) give written notice to every person affected by the transaction in the manner and containing the information the superintendent requires; and (b) provide a copy of that notice to the superintendent within 60 days after giving it to the persons affected. Information filed with the commission 8.4 When a transaction described in subsection 8.2(1) takes place: 1. The administrator of the predecessor employer's plan must file with the commission a copy of the relevant provisions of an agreement respecting the disposition of the employer's business, undertaking or assets that relate to the pension plan or the provision of pension and other benefits to the affected employees. 2. If the successor employer assumes responsibility for the accrued benefits of the predecessor employer's plan and the assets and liabilities respecting the affected members are to be transferred to the successor employer's existing or newly established plan, the administrator of the predecessor employer's plan must file a report with the commission respecting the members, showing the following: (a) the value of the assets and liabilities; (b) the basis for valuing pensions and other benefits; (c) the names of affected members showing their respective accrued benefit; (d) a statement of the interest to be credited on benefits to the date of the transfer; (e) any surplus, and its intended allocation. The report must be prepared by a person authorized under section 4.10 (who may conduct review) and must be acceptable to the superintendent. 3. If the successor employer assumes responsibility for the accrued benefits of the predecessor employer's plan, the administrator of the successor employer's plan must file with the commission a resolution of the employer's board of directors or similar body (or other document acceptable to the commission), authorizing the assumption of responsibility. 4. The administrator of both the predecessor employer's plan and the successor employer's plan must provide any other information, or prepare and file reports about the plans or any part of the plans, in the manner and containing the information the superintendent requires. M.R. 205/2011 PART 9 SIMPLIFIED MONEY PURCHASE PENSION PLANS Overview 9.1 A simplified plan is a money purchase pension plan with a defined contribution provision. Unlike other plans, the administrator of a simplified plan is the financial institution that operates the plan. This Part sets out rules and requirements that apply to simplified plans. INTERPRETATION AND APPLICATION Definitions 9.2 The following definitions apply in this Part. "administrator" , in relation to a simplified plan, means the financial institution that administers the plan. (« administrateur ») "financial institution" means a bank or credit union, or a life insurance company or trust company authorized to carry on business in Manitoba. (« institution financière ») "participating employer" means an employer who contributes to a simplified plan for employees. (« employeur participant ») "simplified plan" means a simplified money purchase plan that meets the requirements of section 9.5 and that is accepted for registration under section 19 of the Act (acceptance for registration). (« régime simplifié ») Application of Act and regulations 9.3 Except as otherwise provided in this Part, the Act and this regulation apply to a simplified plan, with necessary changes. ESTABLISHING A SIMPLIFIED PLAN Contract to establish a simplified plan 9.4(1) An employer may enter into a contract with a financial institution to establish a simplified plan for its employees, subject to the 250-employee limit described in section 9.6, and to have the institution administer the plan on the employer's behalf. 9.4(2) A financial institution may administer a simplified plan for multiple employers. Content of plan document 9.5(1) A simplified plan must state or provide for the following: 1. The plan is to be administered by the financial institution that issues it. 2. The only individuals eligible to be members of the plan are employees of a participating employer who are deemed under section 2 of the Act (province of employment) to be employed in Manitoba. 3. An individual's active membership in the plan terminates when he or she (a) ceases to be an active member under subsection 21(1.1) of the Act; or (b) is no longer deemed under section 2 of the Act to be employed in Manitoba. 4. Where the plan is in effect for a class of employees of a participating employer, each employee of the class is eligible to be a member of the plan and must be subject to an eligibility period that is not greater than two years. 5. Where a member of the plan terminates active membership in the plan, (a) there vests in the member immediately on termination an entitlement to receive a pension in respect of the period of active membership; and (b) the member is not entitled to withdraw contributions to the plan, except as provided in Part 10 and any voluntary additional contributions that he or she made to the plan. 6. The plan must not contain a defined benefit provision. 7. The formula for contributions by the participating employer must provide for employer contributions in each fiscal year of at least 1% of the payroll of the members employed by the participating employer. 8. "Simplified Money Purchase Pension Plan" must appear on the cover or title page. 9. The day on which an employer's participation in the plan will cease if the employer fails to remit the required contributions to the administrator. 9.5(2) A simplified plan may provide, in respect of the part of the plan that relates to a participating employer and the employer's employees, that where a member of the plan who is entitled to make an election under subsections 21(13) or 21(13.1) of the Act (transfer to a retirement savings plan or retirement benefit plan) fails to do so within 90 days after (a) receiving the statement referred to in subsection 3.34(1) (statement on termination of active membership) or 3.35(1) (statement on retirement) , as applicable; or (b) waiving the entitlement to receive that statement under subsection 9.10(3); the commuted value of his or her accrued benefits must be applied under the terms of the plan to provide a pension that is not commutable and that commences at the retirement age determined under the plan, but in any event not later than when the payment of benefits to a member of a registered plan is required to commence under the Income Tax Act (Canada). 9.5(3) A simplified plan may provide that membership of a participating employer's employees is mandatory or voluntary. M.R. 205/2011 Maximum 250 employees 9.6(1) An employer who employs more than 250 employees in Manitoba, including persons deemed under section 2 of the Act to be employed in Manitoba, may not participate in a simplified plan. 9.6(2) If information returns filed under section 9.9 disclose that a participating employer has employed more than 250 employees in three consecutive fiscal years of a simplified plan, the participating employer must, not later than the end of the fourth fiscal year, (a) cease participation in the plan, in which case subsection 9.14(1) applies; or (b) adopt a new plan that is not a simplified plan, in which case section 7.5 (exception) applies, with necessary changes. ADMINISTERING A SIMPLIFIED PLAN Employer to give administrator information re contributions 9.7(1) Not later than three months after the end of each fiscal year of a simplified plan, a participating employer must provide the administrator with a statement (a) that sets out the contributions the employer has made to the simplified plan in the previous fiscal year of the plan; and (b) that confirms whether all the contributions required for the fiscal year have been made. 9.7(2) The statement under subsection (1) must be certified by the employer and be in a form acceptable to the superintendent. Administrator to give employer notice of proposed amendments 9.8 The administrator of a simplified plan must give each participating employer written notice of any proposed amendment to the plan at least 30 days before the effective date of the proposed amendment. 9.9(1) and (2) [Repealed] M.R. 205/2011 Annual information return 9.9(3) The administrator of a simplified plan must certify in the annual information return filed under subsection 18(4) of the Act and section 3.26 of this regulation (a) that the simplified plan has been administered in accordance with the Act and this regulation; and (b) that the funds of the plan have been invested and administered in accordance with sections 3.18 (investment and recording requirements) and 3.23 (statement of investment policies and procedures) of. 9.9(4) When filing the annual information return, the administrator of a simplified plan must also file with the commission a certified copy of the following: (a) the plan text that relates to an employer who became a participating employer during the fiscal year; (b) amendments made during the fiscal year to the plan text that relates to a participating employer. M.R. 205/2011 ; 35/2012 Information for members and others 9.10(1) The administrator of a simplified plan is not required to provide the documents referred to in subsection 3.31(2) (documents to be provided on request) to any person. However, the documents filed by the administrator under section 2.3 (application for registration), subsection 2.7(1) (notice and filing of amendments), section 3.26 (annual information return) and section 7.6 (notice of termination) must be available for inspection by the persons listed in subsection 3.31(1) at the office of the superintendent during regular business hours. 9.10(2) The superintendent may provide copies of the documents described in subsection (1) to a person referred to in subsection 3.31(1) on payment of a reasonable fee. 9.10(3) An active member of the plan who terminates membership in the plan before the commencement of payment of a pension to the member may, in writing, waive the entitlement to receive (a) the termination statement to be provided under subsection 3.34(1) (statement on termination of active membership); (b) the retirement statement to be provided under subsection 3.35(1) (statement on retirement). EFFECT OF ADOPTING A NEW PLAN If assets and liabilities of non-simplified plan are consolidated with simplified plan 9.11 When contributions to a plan that is not a simplified plan cease as a result of the adoption of a simplified plan, and the assets and liabilities of the original plan relating to the benefits of the plan members (other than the non-active members and other beneficiaries) are consolidated with the simplified plan, the following rules apply: 1. Notwithstanding section 7.5, the part of the original plan relating to benefits payable to a pensioner, dependent, beneficiary, estate or former member is terminated and wound up under Part 7 and subsection 21(21) of the Act (winding up plan). 2. Section 7.5 applies in respect of the benefits of the original plan for an individual who is an active member of the original plan at the time the new plan is adopted and who is a member of the new plan. Election when voluntary simplified plan replaces non-simplified plan 9.12(1) Where contributions to a plan that is not a simplified plan cease as a result of an employer's participation in a simplified plan, and the new plan provides for voluntary membership, an individual who was a member of the original plan may elect not to be a member of the simplified plan. 9.12(2) Where an individual elects not to be a member of the simplified plan under subsection (1), the commuted value of his or her accrued benefits under the original plan must be (a) transferred to a prescribed plan that is administered in accordance with Part 10; or (b) applied under the terms of the plan to provide a pension that is not commutable and that commences at the retirement age determined under the original plan but in any event not later than when the payment of benefits to a member of a registered plan is required to commence under the Income Tax Act (Canada). M.R. 205/2011 TERMINATION OF A SIMPLIFIED PLAN Termination if employer fails to remit 9.13 If a participating employer of a simplified plan fails to remit the contributions required by the plan within the period specified in the plan, the employer's participation in the plan ceases. Termination of participation 9.14(1) If an employer ceases participation in a simplified plan, the administrator must, (a) within 30 days after the effective date of the cessation, notify the members of the plan who are employees of the employer, in writing, of the cessation of that employer's participation in the plan and the effective date of the cessation; and (b) apply the assets of the plan that are attributable to the employer and the members of the plan who are employees of the employer, toward providing pensions and pension benefit credits to members and other beneficiaries. 9.14(2) If there is more than one participating employer in the plan, the cessation of participation by one or more employers does not constitute a termination, in whole or part, of the plan, as long as at least one employer remains. Termination of whole or part of plan 9.15(1) An administrator who intends to terminate a simplified plan in whole or in part must give written notice of the intention to each employer whose participation will cease at least 60 days before filing a notice of termination with the commission under subsection 26(4) of the Act (notification of termination of plan). 9.15(2) Within 30 days after receiving a notice under subsection (1), a participating employer must elect to do one of the following and advise the administrator: (a) adopt a new simplified plan, in which case section 7.5 applies; (b) adopt a new plan that is not a simplified plan, in which case section 7.5 applies; (c) decide not to adopt a new plan, in which case the employer's participation ceases as of the date of termination of the simplified plan and subsection 9.14(1) applies. 9.15(3) On the termination of a simplified plan, the administrator must file the report referred to in section 7.7 (termination report) with the commission, and include in the report the options chosen by the participating employers under subsection (2). MISCELLANEOUS 9.16 [Repealed] M.R. 205/2011 Specified multi-employer plan and multi-employer pension plan provisions do not apply 9.17 Section 26.1 of the Act (specified multi-employer plans and multi-unit pension plans) does not apply to a simplified plan. M.R. 63/2021 PART 10 TRANSFERS AND WITHDRAWALS Overview 10.1(1) Subsection 21(3) of the Act sets out the general rule for locking in a member's interest in a pension plan. It prohibits a member's interest in a pension plan from being surrendered or commuted during the member's lifetime, and prohibits money from being withdrawn or transferred from the plan before the pension commences. 10.1(2) The Act has some exceptions to the locking-in requirement.

This Part sets out rules for those exceptions, and provides some additional exceptions, and is organized according to the following divisions: (a) Division 1 sets out definitions and general rules applicable to this Part; (b) Division 2 governs transfers of locked-in money to and from LIRAs and LIFs (under which money remains locked in). The required addenda for LIRA and LIF contracts are included as schedules at the end of Division 2; (c) Division 3 governs the transfer of locked-in money from a pension plan to another pension plan, to a pooled registered pension plan, or to purchase an annuity; (d) Division 4 sets out rules for a one-time transfer of up to 50% of the locked-in money in a pension plan, LIRA or LIF to a prescribed RRIF; (e) Division 5 sets out rules for commuting a non-resident's interest in a pension plan, and for allowing a non-resident to withdraw the balance of his or her LIRA or LIF; (f) Division 6 sets out rules for commuting a small pension, and for withdrawing the balance of a small LIRA or LIF; (g) Division 7 provides exceptions to the locking-in requirement where the member of a pension plan or owner of a LIRA or LIF has become terminally ill and has a shortened life expectancy; (h) Division 8 sets out rules governing transfers of locked-in money that is payable to or for the benefit of the current or former spouse or common-law partner of a member; (i) Division 9 sets out rules relating to the garnishment of a pension benefit credit from a pension plan, LIRA, LIF or RRSP under provisions of The Garnishment Act that override the locking-in requirement in The Pension Benefits Act ; (j) Division 10 sets out the time frame for making a refund of the commuted value of a deceased member's pension to a designated beneficiary or to the member's estate; (k) Division 11 sets out the rules governing a withdrawal or transfer of locked-in money from a LIRA or LIF at or after age 65; (l) Division 12 sets out the rules governing hardship withdrawals from a LIRA or LIF, including prescribing eligible grounds of hardship and establishing the maximum amounts that may be withdrawn. M.R. 205/2011 ; 80/2017 ; 63/2021 DIVISION 1 DEFINITIONS AND GENERAL PROVISIONS Definitions and interpretation 10.2(1) The following definitions apply in this Part. "addendum" means a LIF addendum or a LIRA addendum. (« avenant ») "death benefit waiver" means (a) a waiver by a member's spouse or common-law partner of his or her right under a pension plan and clause 21(26)⁠(a) of the Act (survivor benefit on pre-retirement) to a pension if the member dies before the member's pension commences; (b) a waiver by a LIRA owner's spouse or common-law partner of his or her right under section 10.24 to the balance of the LIRA upon the owner's death; and (c) a waiver by a LIF owner's spouse or common-law partner of his or her right under section 10.40 to the balance of the LIF upon the owner's death. (« renonciation à la prestation de décès ») "former regulation" means the Pension Benefits Regulation , Manitoba Regulation 188/87 R, as it read immediately before being repealed by this regulation. (« règlement antérieur ») "joint pension waiver" means (a) a waiver under subsection 23(4) of the Act of an entitlement to a joint pension under a pension plan; or (b) a waiver under section 10.22 of an entitlement to (i) a joint pension under a pension plan, or (ii) a joint annuity. (« renonciation à la pension commune ») "LIF" means a life income fund described in section 10.28. (« FRV ») "LIF contract" means a contract for a RRIF that includes, as an addendum that forms part of the contract, the addendum set out in Schedule 2 to Division 2, completed in accordance with the instructions set out in that addendum. (« contrat de FRV ») "LIRA" means a locked-in retirement account described in section 10.12. (« CRI ») "LIRA contract" means a contract for an RRSP that includes, as an addendum that forms part of the contract, the addendum set out in Schedule 1 to Division 2, completed in accordance with the instructions set out in that addendum. (« contrat de CRI ») "Manitoba locked-in money" means (a) the pension benefit credit of a person under a pension plan that, because of subsection 21(3) of the Act, must not be surrendered, commuted, withdrawn or transferred except as permitted by the Act or this regulation; (b) the pension benefit credit of a person under a LIF or LIRA that, because of subsection 10.4(1), must not be withdrawn or transferred except as permitted by the Act or this regulation; and (c) funds accumulated in a PRPP account by a member of a pooled registered pension plan. (« sommes immobilisées assujetties aux mesures législatives du Manitoba ») "owner" in relation to a LIRA or LIF means the individual who is identified in the LIRA or LIF contract as the annuitant or owner. (« titulaire ») "pooled registered pension plan" means a pooled registered pension plan as defined in The Pooled Registered Pension Plans (Manitoba) Act . (« régime de pension agréé collectif » ou « RPAC ») "PRPP account" means a PRPP account as defined in The Pooled Registered Pension Plans (Manitoba) Act . (« compte d'un participant » ou « compte RPAC ») "PRPP administrator" means the administrator of a pooled registered pension plan. (« administrateur RPAC ») "VB account" means a VB account as defined in section 6.2 (variable benefits). (« compte PV ») "vehicle" means a pension plan, LIRA, LIF or annuity. (« instrument ») 10.2(2) For the purposes of this Part, the owner of a LIRA or LIF is a "member-owner" of the vehicle if an amount transferred or to be transferred to the vehicle is, or is directly or indirectly attributable to, (a) a pension benefit credit earned by the owner as a member of a pension plan; or (b) funds accumulated by the owner in a PRPP account as a member of a pooled registered pension plan. M.R. 205/2011 ; 80/2017 Application 10.3(1) The provisions of this Part that apply to LIRAs apply to (a) every LIRA established after this regulation comes into force; and (b) every retirement savings plan that, immediately before this regulation came into force, was a LIRA under the former regulation. 10.3(2) The provisions of this Part that apply to LIFs apply to (a) every LIF established after this regulation comes into force; and (b) every retirement income fund that, immediately before this regulation came into force, was a LIF under the former regulation. Locking in 10.4(1) No administrator of a vehicle shall pay or transfer, or allow any person to withdraw or transfer, money or investments from the vehicle except as permitted by the Act or this regulation. 10.4(2) An administrator who contravenes subsection (1) must ensure that the owner or other person entitled to money that was transferred in contravention is provided with a pension, retirement income or annuity in a manner and in the amounts that would have been provided if the contravention had not occurred. M.R. 205/2011 Timing requirements for transfer 10.5(1) If a member of a pension plan is entitled to any of the following, the pension plan must give the member at least 90 days to make the election after the member receives the statement that the administrator is required to provide under section 3.34 (statement on termination of active membership) or section 3.35 (statement on retirement): (a) the payment of the commuted value of the member's pension under subsection 21(4) of the Act (commutation of small pension); (b) the refund of excess contributions under subsection 21(11) of the Act (fifty-percent rule for post-1984 benefits); (c) the transfer of the commuted value of the member's pension under subsection 21(13) (transfer to retirement savings plan) or subsection 21(13.1) of the Act (transfer to retirement benefit plan). 10.5(2) An administrator must make a payment, refund or transfer referred to in subsection (1) within 90 days after all documents required to make the payment, refund or transfer are filed with the administrator. M.R. 63/2021 DIVISION 2 TRANSFERS TO AND FROM LIRAs AND LIFs Definitions 10.6 The following definitions apply in this Division: "registered" means registered under section 10.8, and "unregistered" means not registered under that section. (« inscrite » et « non inscrite ») "transfer" means a transfer of Manitoba locked-in money from one vehicle to another vehicle. (« transfert ») "transferee" means the issuer or administrator of the vehicle to which a transfer is made or is to be made. (« destinataire du transfert ») "transferor" means the issuer or administrator of the vehicle from which a transfer is made or is to be made. (« auteur du transfert ») Register of financial institutions 10.7 The superintendent must maintain a register containing (a) the names of the financial institutions that are authorized to issue and administer LIRAs or LIFs, or both; and (b) for each institution, which of those vehicles it is authorized to issue. Registration required 10.8 No financial institution shall issue a LIRA or a LIF, or become the administrator of one, unless the institution is registered in relation to that type of vehicle by the superintendent. Registration process 10.9(1) A financial institution wishing to be registered must apply to the superintendent for registration, using the form approved by the superintendent for that purpose. 10.9(2) Subject to subsection (3), upon receipt of the completed application and any additional information that the superintendent requires for the registration, the superintendent may register the institution. The registration must indicate whether the institution is registered in relation to LIFs, LIRAs, or both. 10.9(3) The superintendent may, by written notice to the institution, refuse to register the institution if its registration has been revoked under section 10.11 within the preceding year. Transitional — registration of institutions with approved forms of contracts under former regulation 10.10 A financial institution whose forms of contract for LIFs or LIRAs were approved under the former regulation, immediately before this regulation came into force is deemed to be registered under section 10.7 in relation to that type of vehicle until the end of 2010. Revocation of registration 10.11(1) If a registered financial institution fails to comply with any provision of the Act or this regulation, the superintendent may revoke its registration. If the institution is registered in relation to both LIRAs and LIFs, the registration may be revoked in relation to either of them or both of them. 10.11(2) Before taking any action under subsection (1), the superintendent must notify the institution of the proposed revocation and give the institution a reasonable opportunity to make a submission as to why the registration should not be revoked. 10.11(3) The superintendent must notify the institution in writing of the revocation. The notice must state the effective date of the revocation, which cannot be earlier than the date the notice is given to the institution. 10.11(4) Revoking a registration in relation to a type of vehicle does not affect any rights or obligations in relation to a vehicle of that type that is being administered by the institution at the time that the registration is revoked. LOCKED-IN RETIREMENT ACCOUNTS Locked-in retirement account described 10.12 A locked-in retirement account (LIRA) is an account that (a) is established by a financial institution under a LIRA contract between the institution and the individual identified in the contract as the owner (or annuitant); and (b) is to be used only for holding and investing Manitoba locked-in money until the money is (i) in accordance with this Division, transferred to another LIRA , LIF, pension plan or pooled registered pension plan, or used to purchase an annuity, to provide retirement income, or (ii) otherwise transferred or withdrawn as permitted by this Part. M.R. 205/2011 ; 80/2017 Administrator's general responsibilities 10.13 The administrator of a LIRA must ensure that (a) the LIRA is administered in accordance with the Act and this regulation; (b) the LIRA does not include any money that the administrator knows is not Manitoba locked-in money; (c) the LIRA is registered as an RRSP before any amount is transferred to it and, despite any other provision of this regulation or the LIRA contract, continues to qualify for registration as an RRSP; (d) the LIRA is not invested, directly or indirectly, in a mortgage in respect of which the mortgagor is (i) the owner, (ii) the owner's spouse, common-law partner, parent, brother, sister or child, or (iii) the spouse or common-law partner of a parent, brother, sister or child of the owner; and (e) no amount is transferred or withdrawn from the LIRA except as permitted by the Act and this regulation. Transfers to LIRAs Transfer to LIRA must comply with this Part 10.14 No amount shall be transferred to a LIRA except in accordance with the applicable provisions of the Act and this Part. LIRA is a prescribed retirement savings plan 10.15 Subsection 21(13) of the Act provides for a transfer from a pension plan to a prescribed retirement savings plan or other prescribed arrangement. A LIRA is a prescribed retirement savings plan for this purpose, and is therefore a prescribed plan as defined in subsection 1(1) of the Act. Permitted transfers to LIRA 10.16 Amounts may be transferred to a LIRA only from (a) a pension plan under one of the following provisions of the Act: (i) subsection 21(13) (transfer to LIRA after ceasing active membership), (ii) subsection 21(26.2) (transfer by surviving spouse or common-law partner on pre-retirement death), (iii) clause 31(4)⁠(b) (transfer by person entitled to division of pension benefit credit); (b) another LIRA or a LIF; (c) a VB account under subsection 6.7(1) (transfer from VB account); (d) an RRSP established before 1993 to which no amount has been transferred or contributed other than Manitoba locked-in money; or (e) a pooled registered pension plan. M.R. 205/2011 ; 80/2017 Transferor's duties 10.17(1) No administrator or PRPP administrator shall transfer an amount to a LIRA issued or administered by a financial institution that is not registered in relation to LIRAs. 10.17(2) If the administrator or PRPP administrator is not also the issuer of the LIRA to which an amount is to be transferred, the administrator or PRPP administrator making the transfer must advise the issuer in writing, before completing the transfer, that the amount being transferred is Manitoba locked-in money and must be administered as Manitoba locked-in money. 10.17(3) If (a) the amount to be transferred to a LIRA is, or is directly or indirectly attributable to, a pension benefit credit earned by the LIRA owner as a member of a pension plan; (b) the administrator making the transfer has received a waiver or consent provided by the LIRA owner's spouse or common-law partner, as required or permitted by the Act or this regulation, in relation to that Manitoba locked-in money; and (c) the administrator making the transfer is not the issuer of the LIRA; the administrator making the transfer must provide a copy of the waiver or consent to the transferee before completing the transfer. 10.17(4) The administrator making the transfer must advise the transferee in writing, before completing the transfer, as to whether the owner has previously transferred an amount under section 21.4 of the Act or Division 4 of this Part (one-time transfer to RRIF) (a) from the vehicle from which the transfer is to be made; or (b) to the knowledge of the transferor, from any other vehicle. M.R. 205/2011 ; 80/2017 Transferee's duties 10.18(1) Before accepting a transfer to a LIRA, the transferee must be satisfied that (a) the transfer is permitted by section 10.16; and (b) the amount to be transferred is Manitoba locked-in money of the owner. 10.18(2) When issuing the LIRA contract to which an amount is being transferred, the transferee must (a) attach to the contract a copy of the waiver or consent, if any, provided to the issuer under subsection 10.17(3); and (b) provide a copy of the contract, with all attachments, to the owner of the LIRA. Failure to comply with transferor's duties 10.19(1) If the transferee of an amount transferred to a LIRA is not registered in relation to LIRAs, the administrator making the transfer continues to be liable to ensure that the owner is provided with a pension equal in value to the pension that could or would have been provided if the transfer had not occurred. 10.19(2) If (a) the administrator or PRPP administrator making the transfer of an amount to be transferred to a LIRA fails to advise the transferee that the transferred amount is Manitoba locked-in money; and (b) because of that failure, the transferee does not credit the amount to a LIRA or pays an amount to the owner contrary to the restrictions applicable to Manitoba locked-in money; then the administrator or PRPP administrator making the transfer (c) must transfer, to the LIRA to which the original transfer was to have been made, another sum of money equal to the amount paid to the owner as described in clause (b); and (d) is entitled to recover from the owner the additional amount transferred to the LIRA under clause (c). 10.19(3) If (a) the administrator making the transfer of an amount transferred to a LIRA fails to provide to the transferee a copy of a death benefit waiver as required by subsection 10.17(3); and (b) because of that failure, a death benefit under a LIRA is paid to a spouse or common-law partner who had waived the benefit instead of to a designated beneficiary of the benefit or to the estate of the owner; then (c) the administrator making the transfer must pay an amount equal to that death benefit to the administrator of the LIRA that paid the death benefit to the spouse or common-law partner; (d) upon receipt of that amount, the administrator must pay it to the designated beneficiary or to the owner's estate, as the case may be; and (e) the administrator making the transfer is entitled to recover the amount of the death benefit from the spouse or common-law partner. 10.19(4) Subsections 18.1(11) to (13) (effect on employer not complying) (recipients liable for amount of credit received) (application to financial institution) of the former regulation continue to apply in relation to any failure to comply with 18.1(10) of that regulation before it was repealed. M.R. 80/2017 Transfers from LIRAs Permitted transfers 10.20 Subject to the provisions of this Part, money or investments held in a LIRA may be transferred, at the owner's request, to (a) a pension plan; (b) another LIRA; (c) a LIF; (d) purchase an annuity; (e) a VB account under subsection 6.6(1) (transfer to VB account); (e.1) a prescribed RRIF under subsection 10.54(2); or (f) a pooled registered pension plan. M.R. 205/2011 ; 80/2017 ; 63/2021 Conditions precedent to transfer 10.21(1) Before completing a transfer under section 10.20, the administrator of the LIRA must provide the owner with a statement for the LIRA that sets out the account balance as at the date of the owner's request for the transfer. 10.21(2) Before completing a transfer from a LIRA to a pension plan or pooled registered pension plan, the administrator of the LIRA must (a) be satisfied that the transfer is permitted under the terms of the pension plan or pooled registered pension plan; (b) advise the transferee in writing that the amount to be transferred is Manitoba locked-in money, and obtain written confirmation from the transferee that the transferred amount will be administered as Manitoba locked-in money; (c) provide the transferee with a copy of any waiver or consent provided to the transferor as permitted or required by the Act or this regulation in relation to the amount to be transferred; and (d) advise the transferee in writing as to whether, to the knowledge of the transferor, the owner has transferred money under section 21.4 of the Act (one-time transfer to RRIF) or Division 4 of this Part (one-time transfer). 10.21(3) If the owner requests a transfer to another LIRA, the administrator of the LIRA must also comply with section 10.17 (transferor's duties on transfer to LIRA). 10.21(4) If the owner requests a transfer to a LIF, the administrator of the LIRA must also comply with subsections 10.34(2) to (5) (transferor's duties on transfer to LIF). 10.21(5) In the case of a transfer from a LIRA to a prescribed RRIF under subsection 10.54(1), the administrator making the transfer must provide a copy of a waiver or consent, if any, provided to the administrator under the Act or this regulation in relation to the amount to be transferred. M.R. 80/2017 ; 63/2021 Joint pension entitlement 10.22(1) If (a) an amount transferred to a LIRA is, or is directly or indirectly attributable to, (i) a pension benefit credit earned by the LIRA owner as a member of a pension plan, or (ii) funds accumulated in a PRPP account by the LIRA owner as a member of a pooled registered pension plan; and (b) the owner has a spouse or common-law partner who (i) is not living separate and apart from the owner by reason of a breakdown of their relationship, and (ii) has not previously provided a joint pension waiver in respect of the LIRA or an amount transferred to the LIRA; the account balance may only be transferred to a pension plan that complies with section 23 of the Act (joint pension entitlement), transferred to a pooled registered pension plan, or used to purchase a joint annuity that would comply with the requirements of section 23 of the Act if the annuity were a pension plan to which that section applied. 10.22(2) Within the 90-day period before a permitted transfer takes place under clause 10.20(c), (d), (e) or (f), a spouse or common-law partner referred to in subsection (1) may waive his or her entitlement to a joint pension or joint annuity, but only after requesting and receiving from the LIRA administrator, (a) a statement for the LIRA setting out the account balance as at the date of the owner's request for the transfer; and (b) the form of waiver approved by the superintendent for this purpose. 10.22(3) To waive his or her entitlement, the person must (a) sign the waiver form in the presence of a witness and not in the presence of the LIRA member-owner; and (b) provide the signed waiver to the LIRA administrator. 10.22(4) If (a) an administrator makes a transfer that does not comply with subsection (1); and (b) as a result of such a transfer, the spouse or common-law partner is not provided with a joint pension or joint annuity that would comply with the requirements of section 23 of the Act or section 9 of The Pooled Registered Pension Plans (Manitoba) Act ; then (c) the administrator who made the transfer must provide the spouse or partner with a retirement income or annuity in a manner and in the amount that would have been provided if the non-compliance had not occurred; and (d) the administrator is entitled to recover the amount that was paid because of that failure from the estate of the member-owner. M.R. 205/2011 ; 80/2017 Revocation of joint pension waiver 10.23 A joint pension waiver provided under section 10.22 or under section 23 of the Act may be revoked by filing a written revocation, signed by the spouse or common-law partner who granted the waiver, with the following person: (a) the administrator of the LIRA to whom the waiver was provided; or (b) if the account balance has since been transferred and is now held in another LIRA, the administrator of that other LIRA. Death Benefit under LIRA Death benefit under LIRA 10.24(1) If a member-owner of a LIRA dies, the account balance as at the date of the death is payable in accordance with this section. 10.24(2) If the member-owner of a LIRA dies and is survived by a spouse or common-law partner who (a) was not living separate and apart from the owner by reason of a breakdown of their relationship; and (b) has not provided a death benefit waiver or, having provided one, has revoked it; the surviving spouse or common-law partner is entitled to the account balance. 10.24(3) Within 60 days after receiving a death certificate of a LIRA owner, the administrator of the LIRA must provide a statement for the LIRA setting out the account balance, as at the date of death, to (a) the spouse or common-law partner of the owner; or (b) the designated beneficiary or estate of the owner. 10.24(4) The spouse or common-law partner referred to in subsection (2) must transfer the account balance (a) to another LIRA; (b) to a LIF; (c) to a pension plan as Manitoba locked-in money, if the transfer is permitted under the terms of the plan; (d) to purchase an annuity; (e) to a VB account, to the extent permitted under the Income Tax Act (Canada); or (f) to a pooled registered pension plan, if the transfer is permitted under the terms of the plan. 10.24(4.1) Despite subsection (4), if the spouse or common-law partner referred to in subsection (2) is a non-resident of Canada for the purposes of the Income Tax Act (Canada), they may withdraw the account balance as a lump sum instead of transferring it, after providing the administrator with the following: (a) if the applicant was formerly a resident of Canada for purposes of the Income Tax Act (Canada), written confirmation from the Canada Revenue Agency that the applicant is not currently a resident; (b) if the applicant has never been a resident of Canada for purposes of the Income Tax Act (Canada), a statutory declaration by the applicant confirming they have never been a resident. 10.24(5) If no person is entitled to the account balance under subsection (2), the balance is payable as a lump sum (a) to the designated beneficiary under the LIRA; or (b) if there is no designated beneficiary, to the deceased owner's estate. 10.24(5.1) The administrator must give a person entitled to make an election under subsection (4) at least 90 days to make the election after the person receives the statement the administrator is required to provide under subsection (3). 10.24(6) The administrator must complete the transfer under subsection (4) or make the payment under subsection (5), as the case may be, within 90 days after receiving the documentation necessary to complete the transfer or make the payment. M.R. 205/2011 ; 80/2017 ; 63/2021 Waiver of death benefit 10.25(1) A person who is or might become entitled under subsection 10.24(2) to the account balance in respect of a LIRA on a member-owner's death may waive that entitlement in accordance with this section after receiving the documents to be provided under subsection (2). 10.25(2) Within 60 days after being notified that a person wishes to waive his or her entitlement under subsection 10.24(2), the administrator must provide the following to the person: (a) a statement for the LIRA setting out the account balance as at the date of the notice; and (b) the form of waiver approved by the superintendent for this purpose. 10.25(3) To waive his or her entitlement under subsection 10.24(2), the person must (a) sign the waiver form in the presence of a witness and, if the waiver is signed before the member-owner's death, not in the presence of the owner; and (b) provide the signed waiver to the LIRA administrator. 10.25(4) A waiver under this section may be revoked before the death of the member-owner by filing with the administrator of the LIRA a written revocation signed by both the member-owner and the spouse or common-law partner who granted the waiver. Statements Annual statement 10.26 The administrator of a LIRA must provide to the owner, within 60 days after the beginning of each year, a statement that includes (a) the account balances as at the beginning and the end of preceding year; (b) the income and gains, net of losses, earned in the account during that preceding year; and (c) the amount and nature of the fees charged to the account debited since the last annual statement. Statement after transfer 10.27 The administrator of a LIRA from which a transfer under section 10.20 has been made must provide to the owner or former owner, within 60 days after the transfer, a statement that sets out (a) the account balance immediately before the transfer; (b) the amount transferred; and (c) the balance, if any, remaining in the account immediately after the transfer. LIFE INCOME FUNDS Life income fund described 10.28 A life income fund (LIF) is a retirement income fund that (a) is established by a financial institution under a LIF contract between the institution and the individual identified in the contract as the annuitant or owner; and (b) subject to the provisions of this regulation that allow money to be transferred or withdrawn from the LIF otherwise than as retirement income, may be used only for (i) holding and investing Manitoba locked-in money, and (ii) providing retirement income to the owner in accordance with this regulation. Fiscal period 10.29 The fiscal period for a LIF is the calendar year. Administrator's general responsibilities 10.30 The administrator of a LIF must ensure that (a) the LIF is administered in accordance with the Act and this regulation; (b) the LIF does not include any money that the administrator knows is not Manitoba locked-in money; (c) the LIF is registered as a RRIF before any amount is transferred to it and, despite any other provision of this regulation or the LIF contract, continues to qualify for registration as an RRIF; (d) the LIF is not invested, directly or indirectly, in a mortgage in respect of which the mortgagor is (i) the owner, (ii) the owner's spouse, common-law partner, parent, brother, sister or child, or (iii) the spouse or common-law partner of a parent, brother, sister or child of the owner; and (e) no amount is paid or transferred from the LIF except as permitted by the Act and this regulation. Transfers to LIFs Transfer to LIF must comply with this Part 10.31 No amount shall be transferred to a LIF except in accordance with the applicable provisions of the Act and this Part. LIF is a prescribed retirement benefit plan 10.32 Subsection 21(13.1) of the Act provides for a transfer from a pension plan to a prescribed retirement benefit plan or other prescribed arrangement. A LIF is a prescribed retirement benefit plan for this purpose, and is therefore a prescribed plan as defined in section 1 of the Act. Permitted transfers to LIF 10.33 Amounts may be transferred to a LIF only from (a) a pension plan under one of the following provisions of the Act: (i) subsection 21(13.1) (transfer on or after reaching early retirement age), (ii) subsection 21(26.2) (transfer by surviving spouse or common-law partner on pre-retirement death), (iii) clause 31(4)⁠(b) (transfer by person entitled to division of pension benefit credit); (b) another LIF or a LIRA; (c) a VB account under section 6.7(1) (transfer from VB account); (d) an RRSP established before 1993 to which no amount has been transferred other than Manitoba locked-in money; or (e) a pooled registered pension plan. M.R. 80/2017 Transferor's duties 10.34(1) No administrator or PRPP administrator shall transfer an amount to a LIF issued or administered by a financial institution that is not registered in relation to LIFs. 10.34(2) If the administrator or PRPP administrator making a transfer to a LIF is not also the issuer of the LIF, the administrator or PRPP administrator must advise the issuer in writing, before completing the transfer, that the amount being transferred is Manitoba locked-in money and must be administered as Manitoba locked-in money. 10.34(3) The administrator making a transfer to a LIF must not complete the transfer if (a) the amount to be transferred is attributable to a pension benefit credit earned by the LIF owner as a member of a pension plan; and (b) the LIF owner has a spouse or common-law partner who (i) is not living separate and apart from the owner by reason of a breakdown in their relationship, and (ii) has not provided a joint pension waiver in respect of the amount to be transferred or, having provided one, has since revoked it. 10.34(4) If (a) the amount to be transferred to a LIF is attributable to a pension benefit credit earned by the LIF owner as a member of a pension plan; (b) the administrator making the transfer has received a waiver or consent provided by the LIF owner's spouse or common-law partner, as required or permitted by the Act or this regulation, in relation to the pension benefit credit; and (c) the administrator making the transfer is not the issuer of the LIF; the administrator making the transfer must provide a copy of the waiver or consent to the transferee before completing the transfer. 10.34(5) The administrator making a transfer to a LIF must advise the transferee in writing, before completing the transfer, as to whether the owner has previously transferred an amount under section 21.4 of the Act or Division 4 of this Part (one-time transfer to RRIF) (a) from the vehicle from which the transfer is to be made; or (b) to the knowledge of the transferor, from any other vehicle. M.R. 205/2011 ; 80/2017 Transferee's duties on transfer to a LIF 10.35(1) The issuer of a LIF to which an amount is to be transferred must not accept the transfer (a) from a transferor who has not advised the issuer that the amount is Manitoba locked-in money of the owner; or (b) if the issuer is not satisfied that the transfer is permitted by section 10.31. 10.35(2) The issuer of a LIF contract must (a) attach to the contract a copy of the waiver or consent, if any, provided to the issuer under subsection 10.34(4); and (b) provide a copy of the contract, with all attachments, to the owner of the LIF. Failure to comply with transferor's duties 10.36(1) If the transferee of an amount transferred to a LIF is not registered in relation to LIFs, the administrator making the transfer continues to be liable to ensure that the owner is provided with a pension or annuity equal in value to the pension or annuity that could have been provided if the transfer had not occurred. 10.36(2) If (a) the administrator or PRPP administrator of an amount to be transferred to a LIF fails to advise the transferee that the transferred amount is Manitoba locked-in money; and (b) because of that failure, the transferee does not credit the amount to a LIF or pays an amount to the owner contrary to the restrictions applicable to Manitoba locked-in money; then the administrator or PRPP administrator (c) must transfer, to the LIF to which the original transfer was to have been made, another sum of money equal to the amount paid to the owner as described in clause (b); and (d) is entitled to recover from the owner the additional amount transferred to the LIF under clause (c). 10.36(3) An administrator who, contrary to subsection 10.34(3), transfers an amount to a LIF without the joint pension waiver required for such a transfer is liable to the LIF owner's spouse or common-law partner for the joint pension or annuity to which he or she would have been entitled if the transfer had not occurred. 10.36(4) If (a) the administrator of an amount transferred to a LIF fails to provide to the transferee a copy of a death benefit waiver as required by subsection 10.34(4); and (b) because of that failure, a death benefit under a LIF is paid to a spouse or common-law partner who had waived the benefit instead of to a designated beneficiary of the benefit or to the estate of the owner; then (c) the administrator must pay an amount equal to that death benefit to the administrator of the LIF that paid the death benefit to the spouse or common-law partner; (d) upon receipt of that amount, the administrator must pay it to the designated beneficiary or to the owner's estate, as the case may be; and (e) the administrator is entitled to recover the amount of the death benefit from the spouse or common-law partner. 10.36(5) Subsections 18.1(11) to (13) of the former regulation continue to apply in relation to any failure to comply with 18.1(10) of that regulation before it was repealed. M.R. 80/2017 Transfers from LIFs Transfer from LIF must comply with this Part 10.37 No amount shall be transferred from a LIF except in accordance with the applicable provisions of the Act and this Part. Permitted transfers 10.38 Subject to the provisions of this Part, money or investments held in a LIF may be transferred, at the owner's request, to (a) a pension plan for the benefit of the owner; (b) a LIRA of the owner; (c) another LIF of the owner; (d) purchase an annuity for the benefit of the owner; (e) a VB account under section 6.6(1) (transfer to VB account); (f) a prescribed RRIF under subsection 10.54(2); or (g) a pooled registered pension plan. M.R. 205/2011 ; 80/2017 Conditions precedent to transfer 10.39(1) Before completing a transfer under section 10.38, the administrator of the LIF from which the transfer is made must provide the owner with a statement for the LIF that sets out the account balance as at the date of the owner's request for the transfer. 10.39(2) Before completing a transfer from a LIF to a pension plan or pooled registered pension plan, the administrator of the LIF must (a) be satisfied that the transfer is permitted under the terms of the pension plan or pooled registered pension plan; (b) if the transfer is to a VB account, advise the transferee in writing of the amount that the owner chose to receive as retirement income from the LIF in that year, and the amount received to the date of the transfer; (c) advise the transferee in writing that the amount to be transferred is Manitoba locked-in money, and obtain written confirmation from the transferee that the transferred amount will be administered as Manitoba locked-in money; (d) provide the transferee with a copy of any waiver or consent provided to the transferor as permitted or required by the Act or this regulation in relation to the amount to be transferred; and (e) advise the transferee in writing as to whether, to the knowledge of the transferor, the owner has ever transferred money under section 21.4 of the Act (one-time transfer to RRIF) or Division 4 of this Part (one-time transfer). 10.39(3) In the case of a transfer from a LIF to a LIRA, the administrator of the LIF must also comply with section 10.17 (transferor's duties on transfer to LIRA). 10.39(4) In the case of a transfer from a LIF to another LIF, the administrator of the LIF from which the transfer is made must also (a) comply with section 10.34 (transferor's duties on transfer to LIF); and (b) notify the transferee in writing of the amount that the owner chose to receive as retirement income from the LIF in that year, and the amount paid to the owner to the date of the transfer. 10.39(5) In the case of a transfer from a LIF to a prescribed RRIF under subsection 10.54(1), the administrator making the transfer must provide a copy of a waiver or consent, if any, provided to the administrator under the Act or this regulation in relation to the amount to be transferred. M.R. 80/2017 Death Benefit under LIF Death benefit under LIF 10.40(1) If the member-owner of a LIF dies, a death benefit equal to the account balance as at the date of the death is payable in accordance with this section. 10.40(2) If the member-owner of a LIF dies and is survived by a spouse or common-law partner who (a) was not living separate and apart from the owner by reason of a breakdown of their relationship; and (b) has not provided a death benefit waiver in relation to the amount held in the LIF or, having provided one, has revoked it; the account balance is payable as a lump sum to the surviving spouse or common-law partner. 10.40(3) Within 60 days after receiving a death certificate of a LIF owner, the administrator of the LIF must provide a statement for the LIF setting out the account balance, as at the date of death, to (a) the spouse or common-law partner of the owner; or (b) the designated beneficiary or estate of the owner. 10.40(4) If no person is entitled to the account balance under subsection (2), the balance is payable as a lump sum (a) to the designated beneficiary of the LIF; or (b) if there is no designated beneficiary, to the deceased owner's estate. 10.40(4.1) The administrator must give a person entitled to a death benefit at least 90 days after the person receives the statement the administrator is required to provide under subsection (3) to direct how the payment is to be made. 10.40(5) The death benefit payable to a person under this section must be paid to the person within 90 days after the administrator receives the documentation necessary to complete the transfer or make the payment. If it is payable to the surviving spouse or common-law partner, he or she may direct it to be paid to his or her RRSP or RRIF, to the extent permitted by the Income Tax Act (Canada). M.R. 63/2021 Waiver of death benefit 10.41(1) A person who is or might become entitled under subsection 10.40(2) to the account balance in respect of a LIF on the owner's death may waive that entitlement in accordance with this section after receiving the documents to be provided under subsection (2). 10.41(2) Within 60 days after receiving notice from a person that he or she wishes to waive his or her entitlement under subsection 10.40(2), the administrator must provide the following to the person: (a) a statement for the LIF setting out the account balance as at the date of the notice; and (b) the form of waiver approved by the superintendent for this purpose. 10.41(3) To waive his or her entitlement under subsection 10.40(2), the person must (a) sign the waiver form in the presence of a witness and, if the waiver was given before the LIF owner's death, not in the presence of the owner; and (b) provide the signed waiver to the LIF administrator. 10.41(4) A waiver under this section may be revoked before the death of the LIF owner by filing with the administrator a written revocation signed by the owner and the spouse or common-law partner who granted the waiver. Statements Annual statement 10.42 The administrator of a LIF must provide to its owner, within 60 days after the beginning of each year, a LIF statement that sets out (a) the account balances as at the beginning and the end of preceding year; (b) the income and gains, net of losses, earned in the LIF during that preceding year; (c) the amount and nature of the fees charged to the LIF since the last annual statement; (d) the amounts transferred to the LIF during the preceding year, and the source of each transfer; (e) the amounts transferred from the LIF during the preceding year (otherwise than as a payment to the owner); (f) the total of the amounts paid to the owner in the preceding year to the owner; (g) the minimum that must be paid to the owner in the current year, as determined under the LIF contract; (h) the maximum that may be paid to the owner in the current year, as determined under the LIF contract, and in the case of a LIF contract under which the rate of return is guaranteed for a multi-year period, the maximum that may be paid to the owner in each subsequent year of the multi-year period; (i) the deadline for the owner to select the amounts to be paid in the current year, and the frequency of those payments; (j) the amount that will be paid to the owner if the owner does not select the amounts to be paid, and the date of that payment; and (k) the process for the owner to change his or her selection. Other statements 10.43 The administrator of a LIF from which a transfer has been made must provide to the owner or former owner, within 60 days after the transfer under section 10.38, a statement that sets out (a) the account balances at the beginning of the year and immediately before the transfer; (b) for the period from the beginning of the year to the date of the transfer, (i) the income and gains, net of losses, earned in the LIF, (ii) the amount and nature of the fees charged to the LIF, (iii) the amounts transferred to the LIF, if any, and their source, (iv) the amounts transferred from the LIF (otherwise than as a payment to the owner), if any, and (v) the amounts paid to the owner; (c) the amount transferred; and (d) the balance, if any, remaining in the account immediately after the transfer. Retirement Income Payment of retirement income to owner 10.44 The administrator of a LIF must pay amounts to the LIF owner in accordance with the LIF contract. CHANGES TO LIRA AND LIF ADDENDA Changes to LIRA addendum 10.44.1(1) A LIRA administrator is not required to amend or replace an existing LIRA contract to reflect a change to the LIRA addendum made in the course of an amendment to this regulation. 10.44.1(2) Despite subsection (1), any existing LIRA contract must be interpreted and administered as if the LIRA addendum forming part of the contract were identical to the LIRA addendum set out in the current version of this regulation. M.R. 80/2017 ; 63/2021 Changes to LIF addendum 10.44.2(1) A LIF administrator is not required to amend or replace an existing LIF contract to reflect a change to the LIF addendum made in the course of an amendment to this regulation. 10.44.2(2) Despite subsection (1), any existing LIF contract must be interpreted and administered as if the LIF addendum forming part of the contract were identical to the LIF addendum set out in the current version of this regulation. M.R. 80/2017 ; 63/2021 10.45 [Repealed] M.R. 35/2012 ; 80/2017 10.46 [Repealed] M.R. 80/2017 10.47 [Repealed] M.R. 205/2011 ; 35/2012 ; 80/2017 10.48 and 10.49 [Repealed] M.R. 80/2017 Schedule 1 to Division 2 Locked-in Retirement Account (LIRA) Addendum To RRSP Contract Schedule 2 to Division 2 Life Income Fund (LIF) Addendum To RRIF Contract DIVISION 3 TRANSFERS FROM A PENSION PLAN TO ANOTHER PLAN OR TO PURCHASE AN ANNUITY Definitions 10.49.1 In this Division, " transfer ", " transferee ", and " transferor " have the same meaning as in Division 2 (transfers to and from LIRAs and LIFs). M.R. 205/2011 Transfers from a pension plan to another plan or to purchase an annuity 10.50(1) Subsection 21(13) of the Act provides for a transfer from a pension plan to a prescribed retirement savings plan or other prescribed arrangement. Another pension plan, a pooled registered pension plan or an annuity is a prescribed arrangement for this purpose. 10.50(2) Subsection 21(13.1) of the Act provides for a transfer from a pension plan to a prescribed retirement benefit plan or other prescribed arrangement. Another pension plan, a pooled registered pension plan or an annuity is a prescribed arrangement for this purpose. 10.50(3) Interest is payable on a transfer described in this section in accordance with section 5.19 (interest on refunds, transfers or withdrawals). M.R. 205/2011 ; 80/2017 Transfer requirements 10.51(1) A transfer described in section 10.50 may be made only where the issuer of the annuity or the administrator of the pension plan or pooled registered pension plan to which the transfer is made agrees to administer the transferred amount as Manitoba locked-in money. 10.51(2) Before completing a transfer from a pension plan to another pension plan or a pooled registered pension plan, the transferor must (a) be satisfied that the transfer is permitted under the terms of the other pension plan or the pooled registered pension plan; (b) provide the transferee with a copy of any waiver or consent provided to the transferor as permitted or required by the Act or this regulation in relation to the amount to be transferred;

and (c) advise the transferee in writing as to whether, to the knowledge of the transferor, the owner has ever transferred money under section 21.4 of the Act (one-time transfer to RRIF) or Division 4 of this Part (one-time transfer). 10.51(3) Subsection 10.19(3) applies with necessary changes in the event an administrator fails to comply with clause (2)⁠(b). M.R. 205/2011 ; 80/2017 DIVISION 4 ONE-TIME 50% TRANSFER FROM PENSION PLAN, LIRA OR LIF Overview 10.52 Section 21.4 of the Act and this Division allow a person, only once during their lifetime, to unlock up to 50% of the value of his or her pension plan, LIRA or LIF by transferring money from those plans to a prescribed RRIF. This Division sets out the conditions and the application process for such a transfer. M.R. 63/2021 Definitions 10.53 The following definitions apply in this Division and for the purpose of section 21.4 of the Act. "one-time transfer" means a transfer (a) under section 21.4 of the Act from one or more prescribed plans to a prescribed RRIF; or (b) under section 10.55 from a pension plan to a prescribed RRIF. (« transfert unique ») "prescribed RRIF" means a RRIF contract that (a) restricts transfers to the RRIF to amounts that are transferred from (i) a prescribed plan under section 21.4 of the Act, (ii) a pension plan as permitted by this Division, or (iii) another prescribed RRIF; (b) permits the owner to transfer all or any part of the balance of the RRIF (i) to another prescribed RRIF, (ii) to purchase an annuity, or (iii) to a pension plan, if it is permitted under the terms of the plan; (c) provides that if all or any part of the balance of the RRIF is paid out contrary to the Act or this Division, the administrator of the RRIF will provide, or ensure the provision of, an amount equal to the amount of the balance paid out; (d) in the case of a RRIF any part of the balance of which is derived, directly or indirectly, from the owner's previous entitlement, as a member of a pension plan, to pension benefits under that plan, provides that upon the owner's death the balance of the prescribed RRIF shall be paid (i) to the owner's surviving spouse or common-law partner, unless her or she (A) has received or is entitled to receive all or any part of the balance under an agreement or order under The Family Property Act , or (B) has waived his or her entitlement to receive the balance and has not revoked that waiver, and (ii) in any other case, to the designated beneficiary or the estate of the owner; and (e) includes the statement that, subject to an agreement or order under The Family Property Act or enforcement proceedings taken by a designated officer, as defined in section 52 of The Family Maintenance Act , under Part VI of that Act, the balance of the RRIF (i) may not be assigned, charged, anticipated or given as security, and any transaction purporting to do so is void, and (ii) is exempt from execution, seizure or attachment. (« FERR réglementaire ») "transfer consent" in relation to a one-time transfer means the written consent of the transferor's spouse or common-law partner (a) as required by clause 10.55(1)⁠(e), in the case of a transfer from a pension plan; or (b) as required by subsection 21.4(5) of the Act and provided in accordance with clause 10.56(4)⁠(g), in the case of a transfer under section 21.4 of the Act. (« consentement au transfert ») M.R. 205/2011 ; 63/2021 Waiver of entitlement to balance under prescribed RRIF 10.53.1(1) Within 60 days after being notified that a member-owner's spouse or common-law partner wishes to waive his or her entitlement to the balance of a prescribed RRIF, the administrator must provide to the spouse or common-law partner a statement for the RRIF setting out the account balance as at the date of the notice. 10.53.1(2) To waive his or her entitlement, the spouse or common-law partner must (a) sign the waiver form in the presence of a witness and, if the waiver is given before the owner's death, not in the presence of the owner; and (b) provide the signed waiver to the administrator. M.R. 205/2011 Prescribed RRIF deemed to allow waiver 10.53.2 A RRIF which was a prescribed RRIF before January 1, 2012 is deemed to contain the provision described in clause (d) of the definition "prescribed RRIF" in section 10.53. M.R. 205/2011 One-time transfer under section 21.4 10.54(1) Section 21.4 of the Act permits a person, subject to the regulations, to transfer an amount from a prescribed plan to a RRIF. For this purpose, a LIRA or LIF is a prescribed plan. 10.54(2) A transfer under section 21.4 of the Act may be made only to a prescribed RRIF. 10.54(3) A transfer under section 21.4 of the Act may be made only if the transferor has not previously made a one-time transfer. M.R. 205/2011 ; 63/2021 One-time transfer from pension plan 10.55(1) Subject to subsections (2) and (3), a person who is at least 55 years old may transfer part of their locked-in pension benefit credit under a pension plan to a prescribed RRIF if (a) the person is entitled, at the time of applying for the transfer, (i) as a member of the pension plan, to transfer money to a VB account or out of the plan to a LIF or to purchase an annuity, (ii) as the surviving spouse or common-law partner of a member, to transfer money out of the plan to a LIF or to purchase an annuity, or (iii) as a member's current or former spouse or common-law partner who is entitled to a division of assets under subsection 31(2) of the Act (division of pension on breakdown of relationship), to transfer money out of the plan to a LIF or to purchase an annuity; (b) the administrator is satisfied that the person has not previously made a one-time transfer; (c) the transfer is permitted under the terms of the plan; (d) the person has applied for the transfer in accordance with section 10.56; and (e) where the applicant is a member who (i) has a spouse or common-law partner, and (ii) is not living separate and apart from the spouse or common-law partner by reason of a breakdown of their relationship, the administrator is satisfied that the spouse or common-law partner has consented to the transfer in accordance with clause 10.56(4)⁠(g). 10.55(2) The maximum amount that may be transferred under subsection (1) is 50% of the amount by which (a) the pension benefit credit to which the person is entitled under the plan; exceeds the total of (b) all amounts, if any, required to be paid out of the plan on or after the date of the application pursuant to an order under section 14.1 of The Garnishment Act that is served before the transfer is made; and (c) in the case of a transferor referred to in subclause (1)⁠(a)⁠(i), the amount, if any, that is or may become payable under subsection 31(2) of the Act from the plan to a person who is living separate and apart from the transferor at the time that he or she applies for the transfer. 10.55(3) A person's right to transfer money under subsection (1) is subject to an order under The Garnishment Act to enforce a maintenance order and to an order under section 59.3 of The Family Maintenance Act to preserve assets. 10.55(4) In this section, " pension benefit credit " means the portion of a pension benefit credit to which subsection 21(3) of the Act applies. M.R. 205/2011 ; 63/2021 Application process 10.56(1) A person who wishes to make a one-time transfer (referred to in this section as the "applicant") must submit to the administrator a written transfer request that (a) provides the name, address and date of birth of the applicant and, if a transfer consent is required, the name of the spouse or common-law partner whose consent is required; (b) identifies the plan or plans administered by the administrator from which the transfer is to be made; (c) confirms that the transferor has not previously made a one-time transfer; and (d) includes any other information required by the administrator to begin the transfer process. 10.56(1.1) If the applicant wishes to make a one-time transfer from two or more plans, not all of which are administered by the same administrator, the applicant must submit to each administrator a written transfer request. 10.56(1.2) An applicant who has made a one-time transfer request under subsection (1) may not make a subsequent one-time transfer request to a different administrator unless (a) the subsequent request is made within no more than 30 days after the first request; and (b) the subsequent request does not relate to a plan into which funds have been transferred, directly or indirectly, from a pension plan or prescribed plan in respect of which the applicant has previously made a one-time transfer request. 10.56(1.3) For the purpose of subsection (1.2), a transfer request is deemed to be made on the day it is received by the administrator. 10.56(2) On receipt of the transfer request, and on being satisfied that (a) the applicant is at least 55 years old; (b) the administrator has not facilitated, and is not aware of, a previous one-time transfer by the applicant, including a transfer that is pending; (b.1) the plan does not contain any money other than Manitoba locked-in money; and (c) no part of the amount to be transferred is the subject of an order (i) under The Garnishment Act to enforce a maintenance order, or (ii) under section 59.3 of The Family Maintenance Act to preserve assets; the administrator must provide the applicant with an application form that meets the requirements of subsection (4). 10.56(3) When providing the application form to the applicant, the administrator must also provide the following information to the applicant and, if a transfer consent is required, to the spouse or common-law partner whose consent is required: (a) the applicant's pension benefit credit, and the maximum amount available for transfer as determined under (i) subsection 10.55(2), in the case of a transfer from a pension plan, or (ii) subsection 21.4(4) of the Act, in the case of a transfer from a prescribed plan; (b) in the case of a transfer from a prescribed plan under section 21.4 of the Act, or from a pension plan by a member referred to in subclause 10.55(1)⁠(a)⁠(i), a statement as to the effect the transfer will have on (i) the amount available after the applicant's death to his or her surviving spouse or common-law partner, and (ii) the amount available to be divided between the applicant and his or her spouse or common-law partner under subsection 31(2) of the Act. 10.56(4) The application form for the proposed transfer must include the following: (a) a statement of the amount calculated by the administrator as the maximum amount that may be transferred from the plan; (b) a statement of the amount that the applicant wishes to transfer; (c) the date that the information was provided under subsection (3); (d) the name and address of the financial institution that will manage the prescribed RRIF to which the transfer is to be made; (e) a statement, signed by the applicant, confirming that they have (i) not previously made a one-time transfer, and (ii) not made another one-time transfer request more than 30 days ago; (f) a statement, signed by the applicant, confirming that they understand that this is a request for a one-time transfer and, unless the applicant makes a one-time transfer request to all plans within no more than 30 days after the first request, they will not be able to make such a request in the future; (g) a statement by the applicant that no transfer consent is required or, if it is required, a statement by the spouse or common-law partner whose consent is required, in a form approved by the superintendent and signed by the spouse or common-law partner in the presence of a witness and not in the presence of the applicant, that the spouse or common-law partner (i) is aware of their entitlements in respect of the plan or plans from which the transfer is to be made, (ii) has reviewed the completed application and the information provided under subsection (3) and is aware of the consequences of the proposed transfer, and (iii) consents to the proposed transfer. 10.56(5) After receiving the application, the administrator may require the applicant to provide any additional information that the administrator reasonably requires to facilitate the transfer. 10.56(6) Within 30 days after receiving the application form and the information to be provided under subsection (3), the applicant must provide the completed application to the administrator, together with the completed transfer consent if it is required. 10.56(7) to (11) [Repealed] M.R. 63/2021 M.R. 63/2021 Time for completing transfer 10.57(1) Subject to subsections (2) and (3) and to section 10.58, if the applicant for a transfer is eligible for the transfer, the administrator must complete the transfer within 90 days after providing the information to be provided to the applicant under subsection 10.56(3). 10.57(2) If the transfer can be made only with the proceeds of an investment whose term has not expired, the transfer may be delayed until that term expires, unless the transfer can be made by transferring a transferable investment and the applicant consents to such a transfer. 10.57(3) Upon the written application of an administrator, the superintendent may extend the time for completing a one-time transfer. Garnishing order before transfer completed 10.58(1) If, before completing a transfer, an administrator is served with an order under section 14.1 of The Garnishment Act that affects the information given to the applicant under subsection 10.56(3), the administrator must provide revised information under that subsection to the applicant and, if a transfer consent is required, to the spouse or common-law partner whose consent is required. 10.58(2) Upon receiving the revised information, the applicant may withdraw the application or submit a revised application form and, if a transfer consent is required, a new transfer consent given in accordance with clause 10.56(4)⁠(g). 10.58(3) If the applicant wishes to proceed with the transfer, the revised application form must be submitted within 30 days after the revised information was provided to the applicant and, if required, to his or her spouse or common-law partner. 10.58(4) [Repealed] M.R. 63/2021 M.R. 63/2021 Failure to comply with administrator's duties 10.58.1 An administrator who allows a transfer to be made in contravention of this Division must ensure that a person entitled to all or part of the amount transferred is provided with a pension, retirement income, annuity or lump sum in the manner and in the amount that would have been provided if the contravention had not occurred. M.R. 63/2021 DIVISION 5 LUMP SUM WITHDRAWAL BY NON-RESIDENT Overview 10.59 This Division sets out the requirements that apply to a lump sum withdrawal by a non-resident person under section 21.3 of the Act, of (a) the commuted value of his or her pension under a pension plan; or (b) the balance owing to him or her under a LIF or LIRA. Definitions 10.60 The following definitions apply in this Division. "applicant" means the person applying for a lump sum withdrawal under section 21.3 of the Act. (« auteur de la demande ») "withdrawal" means a lump sum withdrawal as permitted by section 21.3 of the Act. (« retrait ») "withdrawal consent" in relation to a withdrawal means the written consent of the spouse or common-law partner of the applicant as required by subsection 21.3(4) of the Act. (« consentement au retrait ») Application for withdrawal 10.61(1) To apply for a withdrawal, the applicant must first submit a withdrawal request to the administrator. 10.61(2) Within 60 days after receiving a withdrawal request, the administrator must provide the following information to the applicant and, if a withdrawal consent is required, to the spouse or common-law partner whose consent is required: (a) in the case of a withdrawal from a pension plan, a statement setting out the information required in a statement under section 3.34 (statement on termination of active membership) that has been updated to reflect the value of the applicant's benefit on the date of the withdrawal request; (b) in the case of a withdrawal from a LIF or LIRA, a statement from the administrator that sets out the account balance as of the date of the withdrawal request. 10.61(3) Within 90 days after receiving the information to be provided under subsection (2), the applicant must provide to the administrator (a) if the applicant was formerly a resident of Canada for purposes of the Income Tax Act (Canada), written confirmation from the Canada Revenue Agency that the applicant is not currently a resident; (a.1) if the applicant has never been a resident of Canada for purposes of the Income Tax Act (Canada), a statutory declaration by the applicant confirming they have never been a resident; (b) a withdrawal consent, if one is required, in the form and manner approved by the superintendent; and (c) any additional information the administrator reasonably requires to facilitate the withdrawal. 10.61(4) Upon receiving the documents and information required under subsection (3), the administrator must determine if the amount to be withdrawn (a) is or may become payable under subsection 31(2) of the Act (division of pension on breakdown of relationship) from the plan to a person who is living separate and apart from the applicant at the time the withdrawal request was submitted; and (b) is the subject of an order (i) under The Garnishment Act to enforce a maintenance order, or (ii) under section 59.3 of The Family Maintenance Act to preserve assets. M.R. 205/2011 ; 63/2021 Administrator to complete withdrawal 10.62(1) The administrator must complete the withdrawal within 90 days after receiving the documents and any information required under subsection 10.61(3). The amount of the withdrawal is to be reduced by (a) the amount, if any, that is or may become payable under subsection 31(2) from the plan to a person who is living separate and apart from the transferor at the time that the applicant applies for the withdrawal; and (b) the amount, if any, required to be paid out of the plan pursuant to an order under section 14.1 of The Garnishment Act that is served before the withdrawal. 10.62(2) If the withdrawal is made from a pension plan, interest is payable in accordance with section 5.19 (interest on refunds, transfers or withdrawals). DIVISION 6 COMMUTATION OF SMALL PENSIONS AND WITHDRAWALS FROM SMALL LIRAs AND LIFs Overview 10.63 A small pension under a pension plan is commutable under subsection 21(4) of the Act. Section 10.64 sets out rules for determining whether a pension is a small pension for this purpose. Sections 10.65 to 10.67 set out rules under which the owner of a small LIRA or LIF may similarly withdraw the entire balance. M.R. 205/2011 COMMUTED VALUE OF SMALL PENSION Commutation of small pension 10.64(1) The commuted value of a small pension must be paid as required under subsection 21(4) of the Act after the following has occurred (referred to in this section as a "commutation event"): (a) in the case of a payment to the member, the person has ceased to be an active member of the plan and any entitlement by any other person to a division of the pension under subsection 31(2) of the Act has been satisfied; (b) in the case of a payment to a person entitled to the pension as a result of a division under subsection 31(2) of the Act, the person has become entitled to receive the pension benefit credit in respect of the pension. 10.64(2) For the purpose of subsection (1) and subsection 21(4) of the Act, a pension is a small pension if (a) in the case of a pension provided under a defined benefit provision, (i) the annual pension to be provided at normal retirement age, or, if the member has already reached the normal retirement age, to be provided at the commencement date, is not more than 4% of the YMPE for the year in which the commutation event occurs, or (ii) the pension has a commuted value of less than 20% of the YMPE for the year in which the commutation event occurs; or (b) in the case of a pension under a defined contribution provision, the pension has a commuted value of less than 20% of the YMPE for the year in which the commutation event occurs. 10.64(3) For the purpose of a calculation required under subsection (2), the benefits must be aggregated in the following circumstances: (a) a person is a member of two plans to which the same employer is making or has made contributions in respect of the person; (b) a person is a member of two plans as a result of a transaction described in subsection 8.2(1) (predecessor and successor employers); (c) a member is entitled under the same plan to a benefit under a defined benefit provision and a benefit under a defined contribution provision. 10.64(4) When payment of the commuted value of a small pension is made under this section, interest is payable in accordance with section 5.19. M.R. 205/2011 ; 63/2021 SMALL LIRA OR LIF Small LIRA or LIF 10.65 For the purpose of this Division, an owner's LIRA or LIF is small if the total of (a) the balances of all of the owner's LIRAs and LIFs; and (b) if the owner is less than 65 years old, interest on those balances, calculated and compounded annually at the rate of 6% per annum from December 31 of the year in which the application is filed to the end of the year in which the owner turns 65 years of age; is less than 40% of the YMPE for the year in which the owner applied for the withdrawal. M.R. 205/2011 ; 35/2012 Statement 10.66 Within 60 days after receiving a request from the owner of a LIRA or LIF wishing to make a withdrawal under this Division, the administrator of it must give the owner a statement that sets out, for each LIRA or LIF administered by that administrator, the balances as at the date of the request. M.R. 205/2011 Application process and payment 10.67(1) Within 90 days after the owner has received the statements mentioned in section 10.66 for all of his or her LIRAs and LIFs, the owner may apply to the administrator of one or more of them for a withdrawal of the balance. 10.67(2) If not all of the owner's LIRAs and LIFs are administered by the same administrator, the application must include a copy of each statement provided under section 10.66 by any other administrator. 10.67(3) Within 90 days after receiving the application and any other documentation the administrator requires to complete the withdrawal, the administrator, if satisfied that the LIRA or LIF is a small one, must pay the balance of it to the owner. M.R. 205/2011 ; 35/2012 DIVISION 7 COMMUTATION OR WITHDRAWAL ON SHORTENED LIFE EXPECTANCY Overview 10.68 A member's pension under a pension plan is commutable under subsection 21(6) of the Act when the member has a shortened life expectancy. Section 10.70 sets out rules for such a commutation. Section 10.71 sets out rules under which the owner of a LIRA or LIF with a shortened life expectancy may similarly withdraw all or part of the balance of it. M.R. 205/2011 "Shortened life expectancy" defined 10.69 For the purposes of subsection 21(6) of the Act and this Division, "shortened life expectancy" means a life expectancy that has been shortened by reason of a terminal illness or disability to less than two years. COMMUTATION OF PENSION Commutation of pension 10.70(1) The commutation of a member's pension under a defined benefit plan under subsection 21(6) of the Act must be done using actuarial assumptions that do not take the member's shortened life expectancy into account. 10.70(2) A member of a pension plan who wishes to have his or her pension commuted under subsection 21(6) of the Act must submit a written notice to the plan administrator. The notice must indicate whether the member has a spouse or common-law partner, and must be accompanied by a written statement by a physician licensed to practise medicine in Canada certifying that the member has a shortened life expectancy. 10.70(3) Within 60 days after receiving the notice, the administrator must provide a copy of the most recent annual statement or a termination statement, as applicable, as of the date of the request to the member, and to the member's spouse or common-law partner, if any. 10.70(4) After receiving the statements to be provided by the administrator, the member may apply to the administrator for the commutation of his or her pension. The application (a) must be in writing; (b) must be made within 90 days after receiving the statements provided under subsection (3); and (c) if the member has a spouse or common-law partner, must include a waiver by the spouse or common-law partner of his or rights to a joint pension under section 23 of the Act (joint pension entitlement). 10.70(5) If the member qualifies for the commutation of his or her pension, the administrator must pay the commuted value of the pension to the member within 90 days after receiving the completed application under subsection (4) and any other information the administrator requires to facilitate the payment. 10.70(6) When an active member submits a written notice to the administrator to have his or her pension commuted under subsection 21(6) of the Act, submission of that notice is a prescribed event under clause 21(1.1)⁠(f) of the Act that results in the member ceasing to be an active member. 10.70(7) When payment of the commuted value of a pension is made under this section, interest is payable in accordance with section 5.19 (interest on refunds, transfers or withdrawals). WITHDRAWAL FROM LIRA OR LIF Withdrawal from LIRA or LIF 10.71(1) The owner of a LIRA or LIF who wishes to withdraw all or any part of the balance in the LIRA or LIF because of shortened life expectancy must submit a written request to the administrator. In the case of a LIRA or LIF owned by a member-owner, the request must indicate whether the owner has a spouse or common-law partner. 10.71(2) The request must be accompanied by a written statement by a physician licensed to practise medicine in Canada certifying that the owner has a shortened life expectancy. 10.71(3) If the person applying for a withdrawal is a member-owner who (a) has a spouse or common-law-partner; and (b) at the time of applying for the withdrawal, is not living separate and apart from the spouse or common-law partner by reason of a breakdown of their relationship; the administrator must not permit the withdrawal unless the spouse or common-law partner consents in writing to the withdrawal, in the form and manner approved by the superintendent. 10.71(4) Within 60 days after receiving the request, the administrator must provide to the owner and, in the case of a member-owner with a spouse or common-law partner, to that spouse or common-law partner, a statement that sets out the balance of the LIRA or LIF as at the date of the request. 10.71(5) After receiving the statement to be provided under subsection (4), the owner may apply to the administrator for the withdrawal. The application (a) must be in writing; (b) must be made within 90 days after receiving the statement; (c) in the case of LIRA owned by a member-owner with a spouse or common-law partner, must include a joint pension waiver by the spouse or common-law partner under section 10.22; and (d) if the consent of the spouse or common-law partner is required under subsection (3), must include a copy of that consent. 10.71(6) If the owner qualifies for the withdrawal, the administrator must pay the balance to the owner within 90 days after receiving the completed application under subsection (5) and any other information the administrator requires to facilitate the payment. M.R. 205/2011 ; 63/2021 DIVISION 8 TRANSFER BY SPOUSE OR COMMON-LAW PARTNER Overview 10.72 This Division prescribes plans or arrangements to which (a) the surviving spouse or common-law partner of a deceased member of a pension plan may transfer, under subsection 21(26.2) of the Act, the commuted value of his or her survivor's pension entitlement under clause 21(26)⁠(a) of the Act; or (b) a member's current or former spouse or common-law partner who is entitled to a division under subsection 31(2) of the Act (division of pension on breakdown of relationship) may transfer his or her portion of the member's pension benefit credit under subsection 31(4) of the Act. M.R. 63/2021 Transfer by surviving spouse or common-law partner 10.73 For the purpose of subsection 21(26.2) of the Act: (a) LIRAs and LIFs are prescribed plans; (b) pension plans and annuities are prescribed arrangements. M.R. 205/2011 Transfer of pension benefit credit on division 10.74 For the purpose of subsection 31(4) of the Act, (a) a LIRA is a prescribed retirement savings plan; and (b) a LIF is a prescribed retirement benefit plan. Making an election 10.75 When a surviving spouse or common-law partner is entitled to transfer the commuted value of his or her survivor's pension entitlement under clause 21(26)⁠(a) of the Act, the administrator must give the person at least 90 days to make the election after they receive the statement the administrator is required to provide under section 3.36 (statement after pre-retirement death). M.R. 205/2011 Transfer to be made 10.76(1) The administrator must make the transfer within 90 days after all documents required to make the transfer have been filed with the administrator. 10.76(2) If a transfer is to be made from a pension plan, interest is payable in accordance with section 5.19 (interest on refunds, transfers or withdrawals). Transfer to another pension plan 10.77 Clause 31(4)⁠(a) of the Act provides for the transfer of a portion of a pension benefit credit from a member's pension plan to another pension plan in which the member's spouse or partner is a member. Such a transfer may be made only where the administrator of the plan to which the transfer is made agrees to administer the transferred amount as Manitoba locked-in money. DIVISION 9 GARNISHMENT Overview 10.78 Sections 14.1 to 14.3 of The Garnishment Act provide for the enforcement of certain maintenance orders by way of garnishment of a pension benefit credit under a pension plan or under a retirement benefit plan to which a pension benefit credit has been transferred. This Division sets out additional rules for such a garnishment. Prescribed retirement benefit plans 10.79 Under subsection 14.1(1) of The Garnishment Act , "garnishee" includes the institution that issues, underwrites or is a depository of a prescribed plan as defined in The Pension Benefits Act , and "pension plan" includes such a plan. For this purpose, the following vehicles are prescribed plans if an amount that is attributable to a pension benefit credit of the owner under a pension plan was transferred directly or indirectly to the vehicle, whether before or after the coming into force of this regulation: (a) an RRSP; (b) a LIRA; (c) a LIF; (d) [repealed] M.R. 205/2011 . M.R. 205/2011 Amounts subject to garnishment 10.80(1) The pension benefit credit referred to in subsection 14.1(4) (entitlement to pension benefit credit) of The Garnishment Act , (a) in the case of a pension plan, must be calculated on the basis that the member's active membership terminates on the day the garnishing order is served on the garnishee; and (b) in the case of a prescribed plan, is the balance in the plan on the day the garnishing order is served on the garnishee. 10.80(2) For the purpose of the definition "net pension benefit credit" in section 14.1 of The Garnishment Act , the net pension benefit credit of a member is the pension benefit credit determined under subsection (1) less the following: (a) any portion of the pension benefit credit of the member to which another person is entitled on a division of the credit under subsection 31(2) (division of pension on breakdown of relationship) of the Act, and that is exempted under subsection 14.2(1) of The Garnishment Act ; (b) any tax required to be deducted or withheld in respect of the money remitted by the garnishee in satisfaction of the garnishing order; (c) any costs awarded to the garnishee against the member by a court in respect of a determination by the court under subsection 14.2(5) (hearing to determine right to pension benefit credit) of The Garnishment Act ; (d) costs allowed to the garnishee under clause (3)⁠(c). 10.80(3) The garnishee may recover from the pension benefit credit of a member (a) any tax required to be deducted or withheld in respect of the money remitted by the garnishee in satisfaction of the garnishing order; (b) any costs awarded to the garnishee against the member by a court in respect of a determination by the court under subsection 14.2(5) (hearing to determine right to pension benefit credit) of The Garnishment Act ; and (c) costs that are incurred by the garnishee to comply with section 14.1 of The Garnishment Act , which may not exceed (i) in the case of a defined benefit plan, $500, (ii) in the case of a pension plan with a defined contribution provision or a retirement benefit plan, $250, and (iii) in the case of a plan in which some benefits, other than any based on voluntary additional contributions, are determined as if the plan were a pension plan with a defined contribution provision and some benefits are determined on the basis of a defined benefit provision, $650. M.R. 63/2021 DIVISION 10 REFUND TO DESIGNATED BENEFICIARY OR ESTATE Overview 10.81 This Division prescribes the time frame for making a payment ("refund") of the entitlement of a designated beneficiary or estate under clause 21(26)⁠(b) or (c) (survivor benefit on pre-retirement death) of the Act. M.R. 63/2021 Making an election 10.82 A designated beneficiary or an estate that is entitled to a refund of the commuted value of the member's pension under clause 21(26)⁠(b) or (c) of the Act must make an election within 90 days after receiving the statement the administrator is required to provide under section 3.36 (statement after pre-retirement death). M.R. 63/2021 Refund to be made 10.83(1) The administrator must make a refund under this Division within 90 days after all documents required to make the refund have been filed with the administrator. 10.83(2) If a refund under this Division is to be made from a pension plan, interest is payable in accordance with section 5.19. DIVISION 11 WITHDRAWAL OR TRANSFER FROM PRESCRIBED PLAN AT OR AFTER AGE 65 Overview 10.84 This Division sets out the requirements that apply to a lump sum withdrawal or transfer from a LIRA or LIF under section 21.3.1 of the Act by a person who has reached the age of 65 years. M.R. 63/2021 Definitions 10.85 The following definitions apply in this Division. "applicant" means the person applying for a lump sum withdrawal or transfer under section 21.3.1 of the Act. (Version anglaise seulement) "consent" , in relation to a withdrawal or transfer, means the written consent of the spouse or common-law partner of the applicant as required by subsection 21.3.1(3) of the Act. (« consentement ») "withdrawal or transfer" means a lump sum withdrawal or transfer as permitted by section 21.3.1 of the Act. (« retrait ou transfert ») M.R. 63/2021 Application for withdrawal or transfer 10.86(1) An applicant who wishes to make a withdrawal or transfer from a LIRA or LIF must provide the administrator of the LIRA or LIF with (a) a written application in the form required by the administrator; (b) the name of the applicant's spouse or common-law partner, if any; and (c) any other information required by the administrator. 10.86(2) Within 30 days after receiving the information required under subsection (1), the administrator must (a) be satisfied that, (i) as at the date on which the withdrawal or transfer is to be made, the applicant has reached the age of 65 years, and (ii) the money requested to be withdrawn or transferred is Manitoba locked-in money; and (b) if the requirements of clause (a) are met, (i) provide to the applicant a statement that sets out the account balance in the LIRA or LIF as of the date of the application, and (ii) if the applicant has a spouse or common-law partner whose consent is required, provide the spouse or common-law partner with (A) a copy of the statement provided to the applicant in accordance with subclause (i), (B) a statement that sets out the effect the withdrawal or transfer would have on the spouse or common-law partner's entitlement on the death of the applicant, or on a division of the LIRA or LIF in accordance with subsection 31(2) of the Act, and (C) a copy of the withdrawal or transfer consent required to be signed by the spouse or common-law partner. 10.86(3) Subject to subsections (4) and (5), the administrator must complete the withdrawal or transfer within 90 days after receiving the application or, if the administrator does not receive a required withdrawal or transfer consent within that time, within 30 days after receiving the consent. 10.86(4) The amount of the withdrawal or transfer must be reduced by (a) the amount that is or may become payable to any person under subsection 31(2) of the Act (division of pension on breakdown of relationship) at the time of the withdrawal or transfer; (b) the amount bound by any garnishment order served on the administrator under section 14.1 of The Garnishment Act before the date of the withdrawal or transfer; and (c) the amount bound by an order under section 59.3 of The Family Maintenance Act to preserve assets. 10.86(5) If the withdrawal or transfer can be made only with the proceeds of an investment whose term has not expired, the withdrawal or transfer may be delayed until that term expires. But in the case of a transfer, with the permission of the applicant a transferrable investment whose term has not expired may be transferred in kind. M.R. 63/2021 Failure to comply with administrator's duties 10.87 An administrator who allows a withdrawal or transfer to be made in contravention of this Division must ensure that a person entitled to all or part of the amount withdrawn or transferred receives a lump sum in the amount that would have been provided if the contravention had not occurred. M.R. 63/2021 DIVISION 12 WITHDRAWALS FROM A LIRA OR LIF DUE TO FINANCIAL HARDSHIP Overview 10.88 This Division sets out the circumstances under which a person can withdraw an amount from their LIRA or LIF due to financial hardship, as permitted under section 21.3.2 of the Act. M.R. 63/2021 Definitions 10.89 The following definitions apply in this Division and for the purpose of section 21.3.2 of the Act. "applicant" means the person applying for a withdrawal under section 21.3.2 of the Act. (Version anglaise seulement) "application" means an application for a withdrawal under section 21.3.2 of the Act. (« demande ») "cohabiting spouse or common-law partner" means a spouse or common-law partner of the applicant who, at the time of an application for a withdrawal, is not living separate and apart from the applicant by reason of a breakdown of their relationship. (« conjoint ou conjoint de fait visé ») "consent" , in relation to a withdrawal, means the written consent of the spouse or common-law partner of the applicant as required by subsection 21.3.2(4) of the Act. (« consentement ») "dentist" means an individual licensed to practise dentistry in Manitoba or another Canadian jurisdiction. (« dentiste ») "dependant" means a person who is dependent on the applicant or the applicant's cohabiting spouse or common-law partner on the day the applicant applies for the withdrawal. (« personne à charge ») "physician" means an individual licensed to practise medicine in Manitoba or another Canadian jurisdiction. (« médecin ») "principal residence" means a residential dwelling unit ordinarily occupied by the applicant and, if the applicant has a cohabiting spouse or common-law partner, by that cohabiting spouse or common-law partner. (« résidence principale ») "withdrawal" means a withdrawal of an amount as permitted by section 21.3.2 of the Act. (« retrait ») M.R. 63/2021 Low expected income 10.90(1) Low expected income is a prescribed ground of financial hardship for the purpose of section 21.3.2 of the Act. An applicant is considered to have low expected income if their total expected income from all sources, before taxes, for the one-year period after the date the application is signed is equal to or less than 2/3 of the YMPE for the year in which the application is signed, not including the amount of the withdrawal. 10.90(2) The maximum withdrawal based on an application in respect of low expected income is the amount determined based on the following formula: A = 0.75 × (2/3 × B − C) + D In this formula, A is the maximum amount that may be withdrawn; B is the YMPE for the year in which the application is signed; C is the applicant's expected total income from all sources, before taxes, for the one-year period after the date the application is signed, not including the amount of the withdrawal; D is the amount of tax payable on the withdrawal. M.R. 63/2021 Medical expenses 10.91(1) Medical expenses are a prescribed ground of financial hardship for the purpose of section 21.3.2 of the Act if the expenses (a) have been incurred or will be incurred by the applicant, the applicant's cohabiting spouse or common-law partner or a dependant; (b) relate to goods or services of a medical or dental nature; (c) are certified by a physician or dentist as being necessary to treat a medical condition or disability; and (d) are not covered by an insurance policy or benefit plan of the applicant, the applicant's cohabiting spouse or common-law partner or the dependant. 10.91(2) The maximum withdrawal based on an application in respect of medical expenses is the total of (a) the medical expenses that have been incurred; (b) the medical expenses that will be incurred during the one-year period after the date the application is signed; and (c) the amount of tax payable on the withdrawal. M.R. 63/2021 Rental arrears 10.92(1) Rental arrears are a prescribed ground of financial hardship for the purpose of section 21.3.2 of the Act if the applicant or the applicant's cohabiting spouse or common-law partner has received a written demand in respect of arrears in the payment of rent on the applicant's principal residence and could face eviction if the arrears remain unpaid. 10.92(2) The maximum withdrawal based on an application in respect of rental arrears is the total of (a) the arrears on the date the application is signed; and (b) the amount of tax payable on the withdrawal. M.R. 63/2021 Mortgage arrears 10.93(1) Mortgage arrears with respect to a mortgage secured against the applicant's principal residence are a prescribed ground of financial hardship for the purpose of section 21.3.2 of the Act if the applicant or the applicant's cohabiting spouse or common-law partner has received a written demand in respect of the arrears and could face foreclosure if the arrears remain unpaid. 10.93(2) The maximum withdrawal based on an application in respect of mortgage arrears is the total of (a) the arrears on the date the application is signed; and (b) the amount of tax payable on the withdrawal. M.R. 63/2021 Application for a hardship withdrawal 10.94 To apply for a hardship withdrawal, the applicant must first submit a hardship withdrawal application to the administrator. The application must (a) be in the form required by the superintendent; (b) be signed by the applicant no more than 30 days before it is filed with the administrator; (c) include the following supporting documentation to establish eligibility for the withdrawal: (i) in the case of an application in respect of low expected income, a statement signed by the applicant that sets out the applicant's total expected income from all sources, before taxes, for the one-year period after the date the application is signed, not including the amount of the withdrawal, (ii) in the case of an application in respect of medical expenses, for each medical expense, (A) a certification by a physician or dentist that the expense is necessary to treat a medical condition or disability, and (B) a copy of the receipt for the expense or, for an expense that has not yet been incurred, a quote for or estimate of the expense, and (iii) in the case of an application in respect of rental or mortgage arrears, a copy of the written demand the applicant or the applicant's cohabiting spouse or common-law partner received in respect of the arrears; (d) include a statement by the applicant that no withdrawal consent is required or, if it is required, a statement by the applicant's cohabiting spouse or common-law partner, in a form approved by the superintendent and signed by the cohabiting spouse or common-law partner in the presence of a witness and not in the presence of the applicant, that the cohabiting spouse or common-law partner (i) is aware of their entitlements in respect of the plan or plans from which the withdrawal is to be made, and (ii) consents to the proposed withdrawal. M.R. 63/2021 Administrator's duties 10.95(1) Within 30 days after receiving an application under this Division, the administrator must (a) be satisfied that the application is complete and meets the requirements of this Division and section 21.3.2 of the Act; and (b) if the administrator is satisfied that the requirements of clause (a) are met, pay the amount of the withdrawal, subject to any adjustment of the amount in accordance with subsection (2). 10.95(2) The amount of the withdrawal must be reduced by (a) the amount that is or may become payable to any person under subsection 31(2) of the Act (division of pension on breakdown of relationship) at the time of withdrawal; (b) the amount bound by any garnishment order served on the administrator under section 14.1 of The Garnishment Act before the date of withdrawal; and (c) the amount bound by any order under section 59.3 of The Family Maintenance Act to preserve assets. M.R. 63/2021 PART 11 DIVISION OF PENSION OR PENSION BENEFIT CREDIT ON RELATIONSHIP BREAKDOWN Overview 11.1 This Part sets out rules that apply to the division of a pension or pension benefit credit under subsection 31(2) of the Act. It applies to pension plans and to a LIRA or LIF to which an amount attributable to the owner's pension benefit credit under a pension plan has been transferred, directly or indirectly. M.R. 205/2011 Definitions 11.2 The following definitions apply in this Part. "common-law partner" of an owner includes a former common-law partner of the owner. (« conjoint de fait ») "member-owner" has the same meaning as in Part 10 (transfers and withdrawals). (« participant-titulaire ») "owner" means (a) in the case of the division of a pension or pension benefit credit under a pension plan, the member whose pension or pension benefit credit is to be divided; or (b) in the case of the division of the pension benefit credit of a member-owner under a prescribed plan, the owner of that plan. (« titulaire ») "separation date" in relation to a division of an owner's pension or pension benefit credit means the date that the owner and the person entitled to the division of it began living separate and apart because of a breakdown of their relationship. (« date de séparation ») "spouse" of an owner includes a former spouse of the owner. (« conjoint ») M.R.

205/2011 Portion subject to division 11.3 The portion of a pension benefit credit or pension to be divided under subsection 31(2) of the Act (division of pension on breakdown of relationship) between an owner and his or her spouse or common-law partner is the pension benefit credit or pension that accrued (a) in the case of a common-law relationship, from the first day of the period in which the parties cohabited with each other in a conjugal relationship and that continued until they became common-law partners; (b) in the case of a marriage, from the date of the marriage or, if there was a period in which the parties cohabited in with each other in a conjugal relationship and which continued until they were married, from the first day of that period; or (c) in the case of spouses who began living separate and apart before June 30, 2004 the date of marriage; to their separation date. M.R. 205/2011 Division options and valuation 11.4(1) The percentage of a member's pension benefit credit or pension to be paid to the member's spouse or common-law partner on a division under subsection 31(2) of the Act must be specified in a written agreement or by an order of the court made under The Family Property Act . 11.4(1.1) The percentage specified for the purpose of subsection (1) must not be more than 50% and an administrator must not divide a pension or pension benefit credit under an agreement or order that requires or purports to require a higher percentage. 11.4(1.2) An agreement or order of the court may specify that the member's spouse or common-law partner is not entitled to any portion of the member's pension benefit credit or pension. 11.4(2) For the purpose of a division of an active member's pension benefit credit under a pension plan, its value is to be calculated as if the member had ceased to be an active member on the separation date to which that division relates. 11.4(3) If the pension benefit credit or pension of a member of a plan with a defined benefit provision is to be divided, the spouse or common-law partner's share must be calculated according to the following formula: A = B/100% × C × D/E In this formula, A is the spouse or common-law partner's share of the total pension benefit credit or pension; B is the percentage specified in an agreement or order that complies with subsection (1.1) as being payable to the spouse or common-law partner entitled to the division; C is the total pension benefit credit or pension accrued to the member as of the separation date; D is the accrual period determined under section 11.3; E is the period during which the total benefit in B accrued. 11.4(4) The value of the pension benefit credit shall be calculated in accordance with section 5.6 (requirements for determining commuted values) and 5.7(1) (commuted value determination and adjustment). 11.4(5) If the pension benefit credit of a member of a plan with a defined contribution provision is to be divided, the spouse or common-law partner's share must be calculated according to the following formula: A = B/100% × (C − D) In this formula, A is the spouse or common-law partner's share of the total pension benefit credit; B is the percentage specified in an agreement or order that complies with subsection (1.1) as being payable to the spouse or common-law partner entitled to the division; C is the total contributions to the plan to the credit of the member, with interest in accordance with section 5.18 (interest on contributions — other pension plans), as of the separation date; D is the total contributions to the plan to the credit of the member, with interest in accordance with section 5.18, as of the date the relationship began as set out in section 11.3. 11.4(6) To the extent that the owner's pension benefit credit is attributable to voluntary additional contributions, or to optional ancillary contributions that have not been converted into optional ancillary benefits, the portion to be divided is to be determined in accordance with subsection (5). 11.4(7) Section 5.10 (division of excess member contributions) applies when a member is entitled to a refund of excess contributions under subsection 21(11) (fifty-percent rule for post-1984 benefits) of the Act. 11.4(8) A person entitled to voluntary additional contributions, optional ancillary contributions and excess member contributions, if any, has the same rights in relation to those contributions as the owner would have had if the owner had ceased to be an active member on the separation date. 11.4(9) If a pension benefit credit of an owner of a prescribed plan is to be divided, the spouse or common-law partner's share must be calculated according to the following formula: A = B/100% × C × D/E In this formula, A is the spouse or common-law partner's share of the total pension benefit credit; B is the percentage specified in an agreement or order that complies with subsection (1.1) as being payable to the spouse or common-law partner entitled to the division; C is the total pension benefit credit as of the date of the calculation; D is (a) the portion of the pension benefit credit transferred to the prescribed plan that accrued during the accrual period determined under section 11.3, or (b)  if that portion cannot be determined, the pension benefit credit transferred to the prescribed plan; E is the pension benefit credit transferred to the prescribed plan. M.R. 205/2011 ; 63/2021 Interest 11.5(1) On the division of a pension benefit credit under subsection 31(2) of the Act, the pension benefit credit is to be credited with interest at a rate specified in this section. 11.5(2) If the pension benefit credit is in respect of a defined benefit provision, (a) for the commuted value of the pension and other benefits, the rate of interest is equal to the rate of return that can reasonably be attributed to the operation of the pension fund, from the separation date to a date no earlier than the end of the month preceding the month in which the transfer of the pension benefit credit is made; (b) for any optional ancillary contributions and excess member contributions, the rate of interest is either of the following rates: (i) a rate equal to the rate of return that can reasonably be attributed to the operation of that part of the pension fund holding those contributions for the plan for that period, (ii) the average of the CANSIM Series V 80691336 rates published by the Bank of Canada on the last Wednesday of each month for the months for which interest is payable, using the most recently published rate for any month for which the rate has not yet been published, from the later of the separation date or the date that interest was last credited, to a date no earlier than the end of the month preceding the month in which the transfer is made; (c) for any voluntary additional contributions, the rate of interest is equal to the rate of return that can reasonably be attributed to the operation of that part of the pension fund holding those contributions for the plan for that period. 11.5(3) If the pension benefit credit is in respect of a defined contribution provision, the pension benefit credit is to be credited with interest at a rate equal to the rate of return that can reasonably be attributed to the operation of the pension fund, from the later of the separation date or the date interest was last credited, to a date no earlier than the end of the month preceding the month in which the transfer is made. 11.5(4) Section 5.22 applies to the credit of interest under this section. 11.5(5) An administrator who chooses a rate of interest under clause (2)⁠(b) must use that rate for all divisions of pension benefit credits made within a fiscal year in respect of optional ancillary contributions and excess member contributions. M.R. 205/2011 ; 63/2021 11.6 [Repealed] M.R. 63/2021 Owner's share after division 11.7 The administrator must ensure that the owner's pension under a defined benefit provision after a division is adjusted in a manner that (a) does not result in a gain or loss to the plan; and (b) follows generally accepted actuarial principles. Pension payable after division as two separate pensions 11.8(1) If a portion of a member's pension becomes payable to the member's spouse or common-law partner under a division as of a separation date that occurred after the pension commenced, (a) in the case of a joint and survivor pension, it may, if the pension plan so provides and the parties agree in writing, be paid as two separate pensions without joint and survivor benefits: one to the member, and the other to the spouse or common-law partner; and (b) in any other case, the form of pension must not be changed, but the pension may, if the pension plan so provides and the parties agree in writing, be adjusted so that it becomes payable as two separate pensions: one to the member and one to the spouse or common-law partner. The total of the actuarial present values of the two pensions as of the separation date must be equal to the actuarial present value of the pension as of that date. 11.8(2) Subsection (1) does not apply to an annuity payable under an insurance contract that prohibits the annuity from being commuted. M.R. 205/2011 11.9 [Repealed] M.R. 205/2011 ; 63/2021 Waiver after death of member 11.10 A waiver under subsection 31(9) of the Act (waiver after death of member) by a person of his or her entitlement to the division of an owner's pension or pension benefit credit must acknowledge that he or she (a) is entering into the agreement voluntarily and without duress, coercion or compulsion of any kind; (b) has received independent legal advice with respect to the effect of the agreement; and (c) has received a statement from the administrator, in accordance with section 11.11 or 11.12. M.R. 205/2011 Statement for division of pension 11.11(1) If a member of a pension plan and his or her spouse or common law partner are living separate and apart in a circumstance described in subsection 31(3) of the Act, the administrator must provide a statement to the member and the spouse or common-law partner within 60 days after receiving a written request from either of them. 11.11(1.1) The request must set out the dates on which the accrual period under section 11.3 began and ended. 11.11(2) The statement must set out (a) the dates set out in the request in accordance with subsection (1.1); (b) the value of the spouse or common-law partner's total entitlement under subsection 31(2) of the Act (determined as if the pension or pension benefit credit were required to be divided as provided for in that subsection), as calculated under this Part, including interest to the date of the statement; (c) an explanation of the options, and for each option, a summary of the benefits to which the member and the spouse or common-law partner would be entitled on exercising the option; (d) the date on which the member became a member; (e) if the member is no longer an active member, the date on which he or she ceased to be an active member; (f) if the member's pension has not yet commenced, the value of any voluntary additional contributions and optional ancillary contributions as at the statement date; and (g) that before agreeing to receive a percentage of less than 50% on a division, the member's spouse or common-law partner should seek (i) legal advice with respect to their family law entitlements, and (ii) financial advice as to the implication of agreeing to receive less than 50%. 11.11(3) The administrator is not required to comply with subsection (1) if the request was received within 12 months after providing a statement under that subsection in respect of the same division of a member's pension or pension benefit credit unless, after the statement was provided, the spouse or common-law partner became entitled under subsection 31(2) of the Act to a division of the pension benefit credit. M.R. 205/2011 ; 63/2021 Statement for division of prescribed plan 11.12(1) If an owner of a prescribed plan and his or her spouse or common law partner are living separate and apart in a circumstance described in subsection 31(3) of the Act, the administrator must provide a statement to the owner and the spouse or common-law partner within 60 days after receiving a written request from either of them. 11.12(1.1) The request must set out the dates on which the accrual period under section 11.3 began and ended. 11.12(2) The statement must set out (a) the dates set out in the request in accordance with subsection (1.1); (b) the value of the spouse or common-law partner's total entitlement under subsection 31(2) of the Act (determined as if the pension benefit credit were required to be divided as provided for in that subsection), as calculated under this Part, including interest to the date of the statement; (c) an explanation of the options and, for each option, a summary of the benefits to which the member and the spouse or common-law partner would be entitled on exercising the option; and (d) that before agreeing to receive a percentage of less than 50% on a division, the member's spouse or common-law partner should seek (i) legal advice with respect to their family law entitlements, and (ii) financial advice as to the implication of agreeing to receive less than 50%. 11.12(3) The administrator is not required to comply with subsection (1) if the request was received within 12 months after providing a statement under that subsection in respect of the same division of an owner's pension benefit credit, unless, after the statement was provided, the spouse or common-law partner became entitled under subsection 31(2) of the Act to a division of the pension benefit credit. M.R. 205/2011 ; 63/2021 Statements to be provided without charge 11.13 The statements to be provided under sections 11.11 and 11.12 must be provided at no charge to the person entitled to receive the statement or to the member or former member whose pension or pension benefit credit is the subject of the division. Agreement or order 11.14(1) The agreement or order specifying the percentage of the member's pension benefit credit or pension payable to the member's spouse or common-law partner must (a) specify the applicable dates for the purpose of section 11.3; and (b) be filed with the administrator of the plan that is subject to the division before the division is made. 11.14(2) Unless the agreement or order is filed jointly by the member and the member's spouse or common-law partner, the administrator must, within 30 days after receiving the agreement or order, provide written notice to the member and the member's spouse or common-law partner indicating (a) that the administrator received the agreement or order and the date on which it was received; (b) the percentage of the member's pension benefit credit or pension to be paid to the member's spouse or common-law partner in accordance with the agreement or order; and (c) that unless the member objects to the division based on a ground set out in subsection (3) within 30 days after the notice is provided, the administrator will divide the pension benefit credit or pension in accordance with the agreement or order. 11.14(3) Within the deadline set out in clause (2)⁠(c), the member may provide the administrator with a written notice of objection to the division on any of the following grounds: (a) that the agreement or order has been varied or rescinded; (b) that the terms of the agreement or order are being satisfied by other means; (c) that proceedings have been commenced in a court of competent jurisdiction to challenge or vary the terms of the agreement or order. 11.14(4) A member objecting to the division on a ground set out in subsection (3) must provide the administrator with evidence to support the objection. 11.14(5) If the administrator is of the opinion that the agreement or order cannot be complied with, or if the administrator receives a notice of objection under subsection (3), the administrator may delay the division of the member's pension benefit credit or pension until the administrator receives (a) a new or revised agreement or court order; or (b) directions from the court on how the division is to be made. M.R. 63/2021 PART 11A ADMINISTRATIVE PENALTIES Administrative penalties 11A.1(1) For the purpose of section 37.1 of the Act, the penalties and the contraventions for which they may be imposed are as set out in Schedule B. 11A.1(2) A notice of administrative penalty must be in the form set out in Schedule C. M.R. 205/2011 PART 12 REPEAL AND COMING INTO FORCE Repeal 12.1 The Pension Benefits Regulation , Manitoba Regulation 188/87 R, is repealed. Coming into force 12.2 This regulation comes into force on May 31, 2010. SCHEDULE A (Sections 3.33 to 3.36 and 7.9) STATEMENTS SCHEDULE B (Section 11A.1) ADMINISTRATIVE PENALTIES Provision Description of contravention Number of Contraventions Administrative Penalty (to a maximum of $10,000) Contravention of The Pension Benefits Act (the "Act") and the Pension Benefits Regulation (the "Regulation") 2.7(1) of the Regulation Fails to file an amendment First contravention 10% of the fee for the most recent annual information return filed with the commission, for each 30 days the filing is late, up to a maximum of 100% of that fee Second and subsequent contravention 15% of the fee for the most recent annual information return filed with the commission, for each 30 days the filing is late, up to a maximum of 100% of that fee 18(4) of the Act and 3.26(1), 7.16(2) and 7.16(3) of the Regulation Fails to file an annual information return First contravention 10% of the fee for the most recent annual information return filed with the commission, for each 30 days the filing is late, up to a maximum of 100% of that fee Second and subsequent contravention 15% of the fee for the most recent annual information return filed with the commission, for each 30 days the filing is late, up to a maximum of 100% of that fee 3.28(1) of the Regulation Fails to file audited financial statements First contravention 10% of the fee for the most recent annual information return filed with the commission, for each 30 days the filing is late, up to a maximum of 100% of that fee Second and subsequent contravention 15% of the fee for the most recent annual information return filed with the commission, for each 30 days the filing is late, up to a maximum of 100% of that fee 4.15 of the Regulation Fails to file an actuarial valuation report or cost certificate First and subsequent contravention 20% of the fee for the most recent annual information return filed with the commission, for each 30 days the filing is late, up to a maximum of 100% of that fee 7.7(1) and 7.7(2)⁠(a) or 7.7(2)⁠(c) of the Regulation Fails to file a termination report Any contravention 10% of the fee for the most recent annual information return filed with the commission, for each 30 days the filing is late, up to a maximum of 100% of that fee 7.7(1) and 7.7(2)⁠(b) of the Regulation Fails to file a termination report Any contravention 15% of the fee for the most recent annual information return filed with the commission, for each 30 days the filing is late, up to a maximum of 100% of that fee SCHEDULE C Notice of Administrative Penalty