The Pension Benefits Act, C.C.S.M. c. P32 bilingual version (HTML) Table of Contents Section 1 Definitions 2 Province of employment 3 Conflict with other Acts 3.1 Minimum benefits and entitlements may be exceeded 3.2 No waiver or contracting out 3.3 Crown bound PART I PENSION COMMISSION AND SUPERINTENDENT 4 Continuation of Commission and appointment of members 5 Chairman and vice-chairman 6 Quorum 7 Staff 8 Inspection and order of superintendent 8.1 Superintendent may file order in court 8.2 Reciprocal enforcement of orders 9 Liability of commission and staff 10 Duties of commission and delegation 11 Reciprocal agreements re administration of pension plans 12 Audit 13 Annual report 14 Actions for deducting amounts 15 Certain agreements void 16 Pension agency 17 Repealed PART II PENSION PLANS AND THEIR ADMINISTRATION 18 Registration of plans 19 Acceptance for registration 20 Procedure where refusal to register 21 Entitlement to a pension 21.1 Ancillary benefits 21.2 Optional ancillary benefits 21.2.1 Proving entitlement 21.3 "Non-resident" defined 21.3.1 Withdrawal or transfer from prescribed plan at or after age 65 21.3.2 Withdrawal from prescribed plan due to hardship 21.4 One-time transfer to RRIF 21.5 Phased retirement 22 Refund of contributions 23 Joint pension entitlement 24 No termination of survivor benefits 25 Rate of interest on plan 26 Funding, solvency, payments out of plan and winding up 26.0.1 Solvency reserve account 26.1 Multi-unit pension plan 27 Variable pension or employer contributions 28 Contributions held in trust 28.0.1 Corporate director's liability for unpaid contributions 28.1 Who may be administrator 29 Administrator to provide information 30 Administrator to make documents available 31 Protection of pension money, division on breakdown of relationship 31.1 Garnishment of pension benefit credits 32 Repealed 33 Declaration by commission re termination of plan 34 Regulations re successor employers or plans 35 Objection to refusal to register 36 Appeal to Court of Appeal PART III GENERAL PROVISIONS 37 Regulations 37.1 Administrative penalty 37.2 Appeal to commission 38 Offence and penalty 38.1 Compliance with other Acts 38.2 Review every five years 39-40 Repealed HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows: Definitions 1(1) In this Act "active member" of a pension plan means a member of the plan who is accruing a pension under the plan, or would be accruing a pension if it were not for a temporary interruption in employment; (« participant actif ») "administrator" means (a) in relation to a pension plan, the person or body of persons referred to in subsection 28.1(1) or (1.1) that is responsible for administering the plan, and (b) in relation to a prescribed plan or to a registered retirement income fund to which money has been transferred in accordance with section 21.4, the financial institution responsible for administering the plan or fund; (« administrateur ») "commission" means The Pension Commission of Manitoba; (« Commission ») "common-law partner" of a member or former member means (a) a person who, with the member or former member, registered a common-law relationship under section 13.1 of The Vital Statistics Act , or (b) a person who, not being married to the member or former member, cohabited with him or her in a conjugal relationship (i) for a period of at least three years, if either of them is married, or (ii) for a period of at least one year, if neither of them is married; (« conjoint de fait ») "common-law relationship" means the relationship between two persons who are common-law partners of each other; (« union de fait ») "defined benefit pension plan" means a pension plan under which a member's pension (a) is 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; (« régime de retraite à prestations déterminées ») "designated province" means another province or territory of Canada in which there is in force legislation substantially similar to this Act and that has been designated in the regulations as a designated province; (« province désignée ») "early retirement age" means the earliest age at which, under the terms of a pension plan, a member is eligible to require his or her pension to be commenced; (« âge de la retraite anticipée ») "employee" means an individual who is employed to do work or provide a service in Manitoba or a designated province, and is receiving or entitled to receive remuneration for the work or service; (« employé ») "employer" means a person or organization, whether incorporated or not, from whom an employee is receiving or entitled to receive, or has received, remuneration; (« employeur ») "member" of a pension plan means an employee or former employee who is accruing, entitled to or receiving a pension under the plan; (« participant ») "minister" means the member of the Executive Council charged by the Lieutenant Governor in Council with the administration of this Act; (« ministre ») "optional ancillary contributions" means the contributions that a member under a defined benefit pension plan elects to make — in addition to the contributions that the member must make to attain a pension — for later conversion in accordance with section 21.2 to optional ancillary benefits; (« cotisations accessoires facultatives ») "other beneficiary" of a pension plan means a person who is not a member but who is entitled to a pension or other benefit under the plan; (« autre bénéficiaire ») "pension" means a benefit in the form of a series of periodic payments that continues for the life of a member, whether or not it is continued to another person after the member's death, and includes a future entitlement to such payments but does not include ancillary benefits until they become part of the pension under subsection 21.1(2); (« pension ») "pension benefit credit" (a) of a person in relation to a pension plan means the value at a particular time of the pension and other benefits to which the person is then entitled, and (b) of an owner of a prescribed plan means the value at a particular time of the assets in the plan; (« crédit de prestations de pension ») "pension plan" means a superannuation or other plan, scheme or arrangement (a) that is organized and administered to provide a pension to employees and former employees, and (b) to which, except in the case of a supplemental pension plan, the employer is required to make contributions, but does not include a pooled registered pension plan within the meaning of The Pooled Registered Pension Plans (Manitoba) Act or a prescribed plan, scheme or arrangement; (« régime de retraite ») "period of continuous employment" includes, in the case of a temporary interruption in employment, the period of the interruption and the periods of employment immediately before and after that period; (« période d'emploi continu ») "prescribed" means prescribed by regulation under this Act; (Version anglaise seulement) "prescribed plan" means a prescribed retirement savings plan or prescribed retirement benefit plan to which an amount has been or may be transferred under (a) subsection 21(13) or (13.1) (transfer of member's pension), (b) subsection 21(26.2) (transfer of survivor's pension), or (c) subclause 31(4)⁠(b)⁠(iii) (transfer on division of pension benefit credit); (« régime réglementaire ») "qualification date" means (a) in respect of employment in Manitoba, July 1, 1976, and (b) in respect of employment in a designated province, the date upon which, under the law of that province, a pension plan is required to maintain its qualification for registration; (« date d'habilitation ») "registered pension plan" means a pension plan that is registered with and certified by the commission as a plan organized and administered in accordance with this Act; (« régime enregistré de retraite ») "registered retirement income fund" and "RRIF" mean a registered retirement income fund as defined in the Income Tax Act (Canada); (« fonds enregistré de revenu de retraite » et « FERR ») "registered retirement savings plan" and "RRSP" mean a registered retirement savings plan as defined in the Income Tax Act (Canada); (« régime enregistré d'épargne-retraite » et « REÉR ») "superintendent" means the Superintendent of Pensions; (« surintendant ») "supplemental pension plan" means a pension plan established for employees whose membership in another pension plan is a condition precedent to membership in the supplemental pension plan; (« régime complémentaire de retraite ») "surplus" of a pension plan means the excess of the value of the assets of its pension fund over the value of its liabilities, both determined in a prescribed manner; (« surplus ») "temporary interruption in employment" of a person means a period, not exceeding a prescribed length, (a) immediately before and after which the person was working or providing a service for the same employer, and (b) during which the person was not working or providing a service for that employer but there was a reasonable expectation that he or she would return to working or providing a service for the employer; (« interruption temporaire d'emploi ») "voluntary additional contribution" means a contribution that a member elects to make under a pension plan in addition to any contributions that he or she must make to attain a pension, but does not include (a) a contribution the payment of which, under the terms of the plan, imposes upon the employer an obligation to make a concurrent additional contribution, or (b) an optional ancillary contribution; (« cotisation volontaire ») "YMPE" means the Year's Maximum Pensionable Earnings as defined in the Canada Pension Plan . (« MGAP ») 1(2) [Repealed] S.M. 1992, c. 36, s. 2 . 1(3) [Repealed] S.M. 2005, c. 2, s. 2 . S.M. 1992, c. 36, s. 2 ; S.M. 1997, c. 15, s. 2 ; S.M. 2001, c. 37, s. 7 ; S.M. 2002, c. 48, s. 19 ; S.M. 2005, c. 2, s. 2 ; S.M. 2017, c. 3, s. 24 ; S.M. 2021, c. 14, s. 2 . Province of employment 2 For the purposes of this Act, a person shall be deemed to be employed in the province in which the establishment of his employer to which he reports for work is situated, and, where the employee is not required to report for work at any establishment of his employer, he shall be deemed to be employed in the province in which the establishment of his employer from which his remuneration is paid is situated. Conflict with other Acts 3 In the event of conflict between any provision of this Act and any provision of any other Act other than The Garnishment Act , the provision of this Act prevails. S.M. 1995, c. 3, s. 36 . Minimum benefits and entitlements may be exceeded 3.1(1) A pension plan may contain provisions that are more advantageous to its members or other beneficiaries than the provisions required by this Act or the regulations, as long as they are not contrary to an express prohibition or restriction in this Act or the regulations. Benefits not to be discretionary 3.1(2) A pension plan must not permit a pension or other benefits to be provided at the discretion of the employer or the administrator. S.M. 2005, c. 2, s. 3 . No waiver or contracting out 3.2 Except as expressly permitted by this Act or the regulations, no person may waive or contract out of any requirement of this Act or the regulations, and any attempt to do so is void. S.M. 2005, c. 2, s. 3 . Crown bound 3.3 This Act and the regulations bind the Crown and an agency of the Crown, except where the regulations provide otherwise. S.M. 2005, c. 2, s. 3 . PART I PENSION COMMISSION AND SUPERINTENDENT Commission continued 4(1) The Pension Commission of Manitoba, composed of not fewer than five and not more than nine members as the Lieutenant Governor in Council may determine, is continued. Appointment of members 4(2) The Lieutenant Governor in Council shall appoint the members of the commission who shall hold office for such terms as the Lieutenant Governor in Council may prescribe and thereafter until their successors are appointed. Chairman and vice-chairman 5(1) The Lieutenant Governor in Council shall appoint one of the members of the commission to be chairman and one to be vice-chairman of the commission. Absence of chairman and vice-chairman 5(2) Where neither the chairman nor the vice-chairman are present at a meeting of the commission, the members of the commission present at the meeting shall designate a member present to preside over the meeting and the member so designated has, for the purposes of conducting the meeting, all the powers and duties of the chairman of the commission. Quorum 6 One-half of the members of the commission, or where there is an uneven number of members, that number of members that is closest to and more than one-half of the members, constitute a quorum. Staff 7(1) A Superintendent of Pensions and such other officers and employees as may be required for the purpose of the administration of this Act may be appointed under Part 3 of The Public Service Act . Chief administration officer 7(2) The Superintendent of Pensions is the chief administrative officer of the commission. S.M. 2021, c. 11, s. 117 . Inspection powers of superintendent 8(1) The superintendent or the superintendent's duly authorized representative may, at any reasonable time, (a) inspect the books, files, documents and other records relating to a pension plan kept by any person; (b) by notice in writing, require any person to furnish to the superintendent, in a form acceptable to the superintendent, such information as the person has and as the superintendent considers necessary for the purpose of ascertaining whether or not this Act and the regulations have been or are being complied with. Grounds for order 8(2) The superintendent may make an order in accordance with subsection (3) (a) where a notice is given under clause (1)⁠(b) and the recipient fails to respond within 10 days from the date of receipt of the notice; (b) where, in the opinion of the superintendent, a pension plan or the manner in which it is being administered is not in conformity with this Act or the regulations; (c) where, in the opinion of the superintendent, a person has committed a breach of a provision of this Act or the regulations; or (d) where the administrator of a pension plan, other than a pension committee, cannot be located or is insolvent and there is no other person to undertake the winding-up of the pension plan. Contents of order 8(3) The superintendent may, by an order made pursuant to subsection (2), (a) require any person in breach of a provision of this Act or the regulations to remedy the breach without delay or within a specified period of time; (b) require an employer, administrator or any other person charged with a duty in respect of the pension plan, to take or to refrain from taking a specified action or proposed action with respect to the pension plan; (b.1) require an employer to pay to a pension plan money referred to in subsections 28(1) and (3) (trust for contributions); (b.2) if the employer is a corporation, require a director of the corporation to pay any contributions to a pension plan for which the director is liable under section 28.0.1; (b.3) for the purpose of an agreement entered into under section 11, require that the assets and liabilities of a pension plan be split or allocated, or both, where the superintendent considers it appropriate; (c) appoint a person to act in place of and to perform the duties of the administrator of a pension plan; (d) assume the duties of the administrator of a pension plan; and the order shall state the reasons for the making thereof. Administration expenses 8(4) Where the superintendent appoints a person under clause (3)⁠(c) to act in place of the administrator, or assumes the duties of the administrator under clause (3)⁠(d), the reasonable administration expenses of the person or superintendent may be paid out of the pension fund. Service on affected person 8(5) A copy of an order made under this section must be given to every person required to comply with it (a) by personal service; or (b) by mailing or delivering it to the person at his or her last known address, using a mail or delivery service that provides the superintendent with an acknowledgment of receipt. Appeal to commission 8(6) A person affected by an order made under this section may appeal from the order to the commission, within a period of time prescribed in the order or such further period of time as the commission may allow. Statement of appeal 8(7) An appeal under this section shall be commenced by filing with the commission a copy of the order appealed from together with a written statement setting out the grounds of the appeal and the relief requested. 8(8) [Repealed] S.M. 2011, c. 23, s. 2 . Appellant may attend hearing 8(9) The appellant in an appeal before the commission under this section may attend the hearing of the appeal, either alone or with counsel, and present argument. Superintendent is party 8(9.1) The superintendent has standing to appear before the commission on any matter before it, and may be represented by counsel. Powers of commission on appeal 8(10) Upon hearing an appeal from an order under this section, the commission may (a) confirm the order as made; (b) direct the superintendent to vary the order; or (c) rescind the order. Appeal from commission's decision 8(11) A person who is a party to a decision of the commission may appeal the decision to the Court of Appeal, with leave of the court, on a question of law or jurisdiction. Section 36 applies to the appeal, with necessary changes. Commission and superintendent entitled to be heard on appeal 8(12) The commission and the superintendent are entitled to be heard, by counsel or otherwise, on an application for leave to appeal and on an appeal. S.M. 1992, c. 36, s. 3 ; S.M. 2005, c. 2, s. 5 ; S.M. 2011, c. 23, s. 2 ; S.M. 2021, c. 14, s. 3 . Superintendent may file order in court 8.1(1) When an order made by the superintendent under section 8 — or by the commission on an appeal of a decision under that section — requires an employer or other person to pay money to a pension plan, the order may be filed in the Court of King's Bench. On being filed, the order becomes a judgment of the court in favour of the superintendent and may be enforced as a judgment. Collection by third party 8.1(2) If the superintendent hires a collection agent to collect the amount owing by a person under the order filed in the court, that person is liable to pay or reimburse the superintendent for the fees and disbursements of the agent. Those fees and disbursements may be collected as if they were payable under the order. Order includes requirement to pay collection costs 8.1(3) An order filed in the court is deemed to include a requirement to pay any collection costs payable under subsection (2) and interest on contributions required to be paid under the regulations under this Act. Other remedies unaffected 8.1(4) Nothing in this section limits the superintendent's ability to register and enforce a lien in respect of unpaid contributions and other amounts referred to in subsection 28(5) or 28.0.1(8) (lien on assets). S.M. 2011, c. 23, s. 3 . Reciprocal enforcement of orders 8.2(1) The Lieutenant Governor in Council may, by regulation, designate another province or territory of Canada or Canada as a reciprocating jurisdiction for the purpose of enforcing in Manitoba an order, certificate or judgment made under the law of the other jurisdiction that is the equivalent of an order referred to in subsection 8.1(1) of this Act. Application by other jurisdiction 8.2(2) An official designated by a reciprocating jurisdiction for the purpose may apply to the superintendent for the reciprocal enforcement under this Act of an order, certificate or judgment made or issued under the law of that jurisdiction. Filing of order or judgment 8.2(3) Upon receiving an application, if the superintendent is satisfied that the order, certificate or judgment of the reciprocating jurisdiction is the equivalent of an order made under subsection 8.1(1) of this Act, the superintendent must file a copy of the order, certificate or judgment in the Court of King's Bench. On being filed, the order, certificate or judgment is enforceable as a judgment of the court in favour of the superintendent. S.M. 2011, c. 23, s. 3 . Liability of commission and staff 9 No member of the commission and no person employed under the commission is personally liable for anything done by it or him in good faith under the authority of this Act or the regulations. Duties and functions of the commission 10(1) The commission shall (a) actively promote the establishment, extension and improvement of pension plans throughout Manitoba, the reciprocity between pension plans and the further protection of rights under pension plans; (b) administer and enforce this Act and the regulations; (c) accept for registration all pension plans that are filed for registration with the commission and that qualify for registration under this Act and the regulations, and refuse to register any pension plan that does not qualify for registration; (d) cancel the registration of any pension plan (i) that fails to meet the tests for solvency prescribed by the regulations, or (ii) in respect of which the employer or the administrator has failed to comply with this Act or the regulations, or (iii) that is not being administered according to a contractual provision required by this Act or the regulations; (e) conduct surveys and research programs and obtain statistics for the purposes of the commission; (f) assess and collect fees for the registration and annual supervision of pension plans; and (g) perform other functions and discharge other duties assigned to it from time to time by the Lieutenant Governor in Council. Delegation of powers and duties of commission 10(2) The commission may in writing delegate to the superintendent, subject to such terms and conditions as the commission may specify, any of the powers and duties conferred or imposed upon it by this Act except the power to hear and decide appeals under section 8. S.M. 1992, c. 36, s. 4 ; S.M. 2005, c. 2, s. 6 . Reciprocal agreements re administration of pension plans 11(1) The minister may enter into an agreement with the government or an authorized representative of the government of a designated province or of Canada, or with more than one of them, to do one or more of the following things: (a) provide for the reciprocal registration, audit and inspection of pension plans, and the reciprocal enforcement of specified laws affecting pension plans; (b) authorize the pension commission, superintendent or other authorized representative of the designated province or Canada to exercise any of the powers or perform any of the duties of the commission or the superintendent under this Act; (c) authorize the commission or the superintendent in Manitoba to exercise any of the powers or perform any of the duties of the pension commission, superintendent or other authorized representative of the designated province or Canada under the laws of that jurisdiction governing pensions; (d) establish an association of pension commissions in Canada and to authorize such an association to exercise such powers and perform such duties of the commission as the agreement may provide. Existing agreements 11(2) Any agreement of a type described under subsection (1) that is in force at the time that subsection (1) comes into force continues in effect as if entered into under subsection (1). Reciprocal agreements re application of laws 11(3) The minister may enter into an agreement with the government or an authorized representative of a designated province or of Canada, or with more than one of them, concerning the pension benefits legislation that governs a pension plan that is subject to both this Act and the law of the other jurisdiction. Contents 11(3.1) An agreement under subsection (3) may provide for any or all of the following: (a) that this Act or part of it is not to apply to the pension plan, and that the law or part of the law of the other jurisdiction is to apply instead, subject to any specified conditions; (b) that this Act or part of it is to apply to the pension plan, and the law or part of the law of the other jurisdiction is not to apply, subject to any specified conditions; (c) that a requirement of this Act or a regulation is deemed to be satisfied in respect of the pension plan if a corresponding requirement of the law of the other jurisdiction is satisfied in specified circumstances; (d) for the allocation or splitting of the assets and liabilities of the pension plan between Manitoba and the other jurisdiction at the times and in the manner specified; (e) additional requirements to apply with respect to the pension plan in specified circumstances. Superintendent authorized to administer for persons outside Manitoba 11(3.2) The superintendent is authorized to administer this Act in respect of persons outside Manitoba who are members of a pension plan that is subject to this Act in accordance with an agreement referred to in subsection (3), but only if the government of the designated province or of Canada enacts legislation that adopts this Act into its substantially similar pension standards legislation and authorizes the superintendent to administer the adopted legislation. Effective date of laws 11(4) An agreement entered into under subsection (1) or (3) shall specify the date on which it comes into force and the agreement acquires the force of law in Manitoba as of that date. Public notice of reciprocal agreements re laws 11(5) As soon as practicable after entering an agreement or any amendment to an agreement under subsection (3), the minister shall cause the text of the agreement or the amendment to be published in the gazette. S.M. 1992, c. 36, s. 5 ; S.M. 1996, c. 45, s. 2 ; S.M. 2011, c. 23, s. 4 . Audit 12 The Auditor General shall, at least once a year, and at such other times as the minister may request, make an audit of the books and accounts of the commission, and report the result thereof to the minister. S.M. 2001, c. 39, s. 31 . Annual report 13(1) The commission shall make an annual report of the affairs of the commission to the minister. Tabling report 13(2) The minister shall forthwith lay the report before the Legislature if it is then in session and if it is not in session, within 15 days of the beginning of the next ensuing session. Actions for deducting amounts 14 No action lies against any person for withholding, deducting, paying or crediting any sum of money in compliance or intended compliance with this Act unless the amount withheld, deducted, paid or credited is more than required or was wrongfully withheld, deducted, paid or credited. Certain agreements void 15 Where this Act requires an amount to be deducted, withheld, paid or credited, an agreement by the person on whom that obligation is imposed not to deduct, withhold, pay or credit such amount is void. Pension agency 16 The Lieutenant Governor in Council may designate the commission or may establish or designate an agency for the purposes, among others, of receiving, holding and disbursing pension benefit credits under this Act. 17 [Repealed] S.M. 2005, c. 2, s. 7 . PART II PENSION PLANS AND THEIR ADMINISTRATION 18(1) [Repealed] S.M. 2005, c. 2, s. 9 . Registration of plans 18(2) Subject to the regulations, the administrator of a pension plan to which an employer makes or is required to make contributions for the benefit of employees in Manitoba must (a) file a copy of the pension plan with the commission for registration within 60 days after the establishment of the plan; and (b) while the plan is in force, maintain its qualification for registration as required by this Act. Surplus provisions in plans 18(2.1) When a new defined benefit pension plan is filed for registration, it must (a) specify the entitlement to any surplus under the plan; and (b) provide a mechanism satisfactory to the superintendent for the resolution of disputes regarding the circumstances under which, or the extent to which, any surplus may be withdrawn from the plan and to whom it may be paid. When filing the plan for registration, the administrator must provide evidence satisfactory to the superintendent that a majority of the members have agreed in writing to the provision specifying the entitlement to surplus under the plan. Administrator to file supplemental plan 18(3) The administrator of a supplemental pension plan that is associated with a pension plan required to be filed for registration must (a) file a copy of the supplemental plan with the commission for registration within 60 days after it is established, whether or not the employer is required to contribute to it; and (b) while the supplemental plan remains in force, maintain its qualifications for registration. Annual return 18(4) The administrator of a pension plan must file with the commission each year an information return as prescribed. 18(5) [Repealed] S.M. 2005, c. 2, s. 9 . S.M. 1992, c. 36, s. 6 ; S.M. 1997, c. 15, s. 3 ; S.M. 2005, c. 2, s. 9 . Acceptance for registration 19 The commission shall accept for registration and issue its certificate in respect of each pension plan filed for registration under section 18 that in the opinion of the commission is a pension plan organized and administered in accordance with this Act. Procedure on refusal to register 20 After a pension plan is filed with the commission for registration, the superintendent shall advise the commission in writing of his or her opinion as to whether the plan is organized and administered in accordance with the Act, and no penalty shall be imposed upon an administrator under this Act for failure to register a pension plan until the written opinion of the superintendent has been received by the commission and the commission has notified the administrator of its decision concerning registration of the plan by registered mail and 60 days have elapsed thereafter. S.M. 2005, c. 2, s. 10 . Entitlement to a pension 21(1) A member of a pension plan becomes entitled to a pension under the plan upon ceasing to be an active member of the plan while employed in Manitoba. Ceasing to be an active member 21(1.1) A member of a pension plan ceases to be an active member when (a) the member's period of continuous employment ends; (b) the member, having become eligible under the terms of the plan to commence receipt of a pension — otherwise than under section 21.5 — while remaining employed, elects to do so; (b.1) the member, after having reached the normal retirement age under the plan, while remaining employed, elects to cease being an active member and to cease making contributions, if permitted to do so under the terms of the plan; (c) the member ceases to be eligible for active membership under the terms of the plan; (d) the plan is terminated or wound up, or the part of the plan in which the member is participating is terminated or wound up; (e) the member dies; or (f) a prescribed event or circumstance occurs; whichever occurs first. Amount and terms of pension 21(2) The pension to which a member becomes entitled under subsection (1) in respect of employment in Manitoba or a designated province, other than the portion attributable to voluntary additional contributions, must not be less than (a) for employment on or after July 1,1976, the pension provided for that employment under the terms of the plan as at the date the member became entitled to the pension; and (b) for employment before July 1, 1976, any pension granted or accrued to the member in respect of that employment by way of an amendment made to the plan on or after that date. 21(2.1) and (2.2) [Repealed] S.M. 2005, c. 2, s. 11 . Exemption from subsection (3) 21(2.3) Where (a) a pension plan provides a benefit or allocates surplus in respect of a person entitled to a benefit and the benefit or surplus allocation is in excess of the maximum benefit or contribution limit applicable to the pension plan under the Income Tax Act (Canada); or (b) the commuted value of the benefits under a pension plan is in excess of the maximum limit that can be transferred to another pension plan or to a registered retirement savings plan under the Income Tax Act (Canada); the amount of the benefit, surplus allocation or commuted value that is in excess of the maximum limit is exempt from subsection (3). Locking in 21(3) No pension plan or administrator of a pension plan shall permit (a) all or any part of a pension in respect of membership in the plan on and after July 1, 1976, or any interest in such a pension, to be surrendered or commuted during the lifetime of the person entitled to it; or (b) a member or other beneficiary of the plan to withdraw or transfer money in respect of such a pension before the pension commences; except as permitted by this Act or the regulations. Plan must provide for entitlement and locking in 21(3.1) A pension plan must provide for entitlement to a pension in accordance with subsections (1) and (2) and for restrictions in accordance with subsection (3). Exception for voluntary contributions 21(3.2) Subsection (3) does not apply to a member's voluntary additional contributions or optional ancillary contributions, or to interest on those contributions. Commutation of small pension 21(4) When a member or other beneficiary, including a person entitled to a division under subsection 31(2), is entitled to a small pension, as defined by regulation, the pension plan must provide for the payment of, and must pay, the commuted value of the pension to the member or other beneficiary in accordance with the regulations, unless (a) the pension has commenced; or (b) the member or other beneficiary became entitled to the pension before 1998. If the member or other beneficiary became entitled to such a pension before 1998, and has not commenced receipt of the pension, the pension plan may permit the member or other beneficiary to withdraw the commuted value of the pension in accordance with the regulations. Partial commutation of pre-1985 benefits 21(5) Subject to subsection (5.1), a member of a pension plan may withdraw, as a lump sum in partial payment of the pension, an amount up to 25% of the portion of the commuted value of the pension in respect of his or her membership in the plan during the period beginning July 1, 1976, and ending December 31, 1984. Conditions for commutation of pre-1985 benefits 21(5.1) Subsection (5) does not apply unless the pension plan provides for the withdrawal and the member (a) is at least 45 years old but has not reached the normal retirement age under the plan; (b) has ceased to be an active member; and (c) has completed a period of continuous employment under the plan of at least 10 years, or was an active member of the plan for a continuous period of 10 years. Payments by reason of shortened life expectancy 21(6) Subject to the regulations, a pension plan may permit a member with a terminal illness or disability resulting in a shortened life expectancy to elect, after being given prescribed information in accordance with the regulations, to receive a payment or series of payments, unless (a) the pension has already commenced; or (b) the member's pension is required by section 23 to be a joint pension and that requirement has not been waived in accordance with subsection 23(4). Normal retirement age 21(7) Every pension plan must specify a normal retirement age, or a date with reference to a specified age, which must be no later than the first day of the month following the month in which unreduced benefits are payable to a member under the Canada Pension Plan . No age discrimination 21(7.1) No pension plan shall compel retirement at normal retirement age or any other age. The provision for a normal retirement age in a pension plan, or any age requirement relating to early or late retirement, is not discrimination because of age within the meaning of The Human Rights Code . 21(8) [Repealed] S.M. 2005, c. 2, s. 11 . Continuing employment after normal retirement age 21(9) No pension plan shall prevent a member who continues to be employed after reaching the normal retirement age under the plan from continuing as an active member and accruing a pension in the same manner as an active member who has not reached the normal retirement age. Suspending pension after normal retirement age 21(9.0.1) A defined benefit pension plan may permit a member who continues to be employed after reaching the normal retirement age under the plan to cease being an active member and to cease making contributions to the plan. Value of pension after suspension 21(9.0.2) If a member ceases to be an active member as permitted in accordance with subsection (9.0.1), the actual value of the member's pension must not be less than the actuarial equivalent, as at the day they ceased to be an active member, of the pension that would have been payable if the member had retired at the normal retirement age. Value of pension after late retirement 21(9.1) If a member of a defined benefit pension plan ceases to be an active member after reaching the normal retirement age under the plan, the member's pension must not be less than the greater of (a) the pension otherwise determined, taking into account the additional benefits accrued after the member reached the normal retirement age; and (b) the actuarial equivalent, as at the date he or she ceased to be an active member, of the pension that would have been payable if the member had retired at the normal retirement age. Early retirement 21(10) A pension plan must provide that a member who ceases to be an active member before reaching the normal retirement age under the plan may require the pension to be commenced at any time within 10 years before he or she reaches the normal retirement age. Value of pension on early retirement 21(10.1) The actuarial present value of the early retirement pension under subsection (10) must not be less than the actuarial present value of the pension that would be payable if commencement of the pension were deferred until the member reached the normal retirement age under the plan. Fifty-percent rule for post-1984 benefits 21(11) A defined benefit pension plan must provide that if, at the time a member ceases to be an active member, his or her contributions in respect of membership in the plan after 1984, plus interest on those contributions, is greater than 50% of the commuted value of his or her pension for that period of membership, the member has the following options: (a) to receive a refund of the excess; (b) if permitted under the terms of the plan, to require the excess to be used to increase the amount of the pension; (c) to require the excess to be transferred to a registered retirement savings plan or registered retirement income fund, to the extent permitted under the Income Tax Act (Canada). Matters to be ignored under fifty-percent rule 21(11.1) For the purpose of subsection (11), the following must be ignored: (a) any portion of the pension for which a member is not required to make contributions; (b) the following contributions, the interest credited on them, and the pension and other benefits derived from them: (i) voluntary additional contributions, (ii) optional ancillary contributions, (iii) contributions made voluntarily by the member to purchase past service. 21(12) [Repealed] S.M. 2005, c. 2, s. 11 . Transfer to retirement savings plan 21(13) Subject to the regulations, (a) a pension plan other than a defined benefit pension plan must permit a member, after he or she ceases to be an active member, to transfer the commuted value of the pension to a prescribed retirement savings plan or other prescribed arrangement, unless the pension has commenced; and (b) a defined benefit pension plan (i) must permit a member, upon ceasing to be an active member before reaching early retirement age under the plan, and (ii) may permit a member, upon ceasing to be an active member on or after reaching the early retirement age under the plan, to transfer the commuted value of the pension to a prescribed retirement savings plan or other prescribed arrangement, unless the pension has commenced. Transfer to retirement benefit plan 21(13.1) Subject to the regulations, a defined benefit pension plan may permit a member, and any other type of pension plan must permit a member, (a) upon ceasing to be an active member on or after reaching early retirement age; or (b) upon reaching early retirement age, if the member ceased to be an active member before then; to transfer the commuted value of the pension to a prescribed retirement benefit plan or other prescribed arrangement, unless the pension has commenced or is required by section 23 to be a joint pension and that requirement has not been waived in accordance with subsection 23(4). Integration with government plan 21(14) If a pension plan so provides, an employee may, on or before attaining normal retirement age as defined by the plan, elect to receive a pension the amount of which is varied by reference to benefits payable under the Old Age Security Act (Canada) or under any other pension plan administered by the Government of Canada or by the government of a province of Canada. Prohibition against reductions in pension 21(15) After a person has begun to receive payments of a pension from a pension plan, the amount of pension being paid to the person shall not, after July 1, 1976, be reduced by reason of any change in benefits paid to the person under the Old Age Security Act (Canada) or under the Canada Pension Plan (Canada) or under The Quebec Pension Plan or any or all of them. Reduction for CPP or QPP 21(16) If a pension plan provides for a member's pension to be reduced by reason of the member's entitlement to a pension under the Canada Pension Plan , the Quebec Pension Plan, or both, the reduction must not exceed an amount determined by a prescribed formula. Reduction for OAS prohibited 21(17) Subject to subsection (14), no pension plan shall provide that the pension which a person is eligible to receive from the pension plan in respect of employment after December 31, 1983, will be reduced by any amount by reason of the person receiving a benefit under the Old Age Security Act (Canada). Discrimination based on sex prohibited 21(18) No pension plan shall provide for or permit (a) different rates or amounts of contributions by the members based on differences in sex; or (b) different pensions, annuities or benefits based on differences in sex; or (c) different options as to pensions, annuities or benefits based on differences in sex; or (d) the inclusion in or exclusion from membership in the pension plan of employees on the basis of the sex of the employees. Plan to provide membership for prescribed class 21(18.1) A pension plan must identify one or more prescribed classes of employees who are eligible for membership in the plan. Compulsory membership — full-time employees 21(19) When a pension plan is in effect for a class of employees, the plan must require each full-time employee in that class to become a member on a date specified by the plan, which cannot be more than 30 days after the employee has completed the minimum period of continuous employment specified by the plan for that class, which cannot exceed two years. Compulsory membership — other employees 21(19.1) When a pension plan is in effect for a class of employees, the plan must require each non-full-time employee in that class, or who would come within that class if he or she were working full time, to become a member on a date specified by the plan, which cannot be more than 30 days after the employee, while so employed, has (a) completed the minimum period of continuous employment specified by the plan for that class, which cannot exceed two years; and (b) satisfied a further condition specified by the plan, which must be one of the following: 1. The employee has completed, in each of two consecutive calendar years, not less than the number of hours of work for the employer specified by the plan, which cannot exceed 700. 2. The employee has earned from the employer, in each of two consecutive calendar years, not less than the percentage of the YMPE specified by the plan, which cannot exceed 35%. 3. The employee has (i) completed, in each of two consecutive calendar years, not less than the number of hours of work for the employer specified by the plan, which cannot exceed 700, or (ii) earned from the employer, in each of two consecutive calendar years, not less than the percentage of the YMPE specified by the plan, which cannot exceed 35%. Entitlement to join plan 21(19.2) When a pension plan is in effect for a class of employees, the plan must permit (a) every employee of that class; and (b) every non-full-time employee who would come within that class if he or she were working full time; to become a member on a date specified by the plan, which cannot be more than 30 days after the employee has completed the minimum period of continuous employment specified by the plan for that class, which cannot exceed two years. No separate plan for non-full-time employees 21(19.3) When a pension plan is in effect for a class of employees, the employer cannot provide a separate pension plan for non-full-time employees who are in that class or would come within that class if they were working full time. Exemption 21(20) The provisions of a pension plan for employees of an employer required under subsections (19) and (19.1) do not require (a) a person who is an employee of the employer and who is a student on a substantially full-time basis; or (b) a person who is an employee of the employer and who is a member of a religious group which has as one of its articles of faith the belief that members of the group are precluded from being members of the pension plan; or (c) a person who is a full-time employee of the employer and was so employed as a full-time employee before January 1, 1984 or the commencement date of the pension plan, whichever is the later, and who before that date was not a member of the pension plan; or (d) a person who is a non-full-time employee of the employer, was so employed as a non-full-time employee before January 1, 1984, or the commencement date of the pension plan, whichever is the later, and whose employment after that date is broken only by temporary interruptions in employment; or (e) a person who retires from the employment of the employer and is in receipt of a pension, but subsequently returns to work for the same employer or another employer covered by the same pension plan; to become a member of the pension plan. Termination or winding up of plan 21(21) Notwithstanding any provision of a pension plan, upon termination or winding up of the pension plan all contributions made after the qualification date in respect of the pension to which any person is entitled shall be applied, subject to subsection (23) and to the extent not already applied, towards the provision of the pension.
