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Pension Benefits Standards Act, 1985 (R.S.C., 1985, c. 32 (2nd Supp.))

Act current to 2020-07-28 and last amended on 2019-06-21. Previous Versions

AMENDMENTS NOT IN FORCE

  • — 2019, c. 29, ss. 145(2), (3)

      • 2010, c. 12, s. 1786(5)(F)

        145 (2) Paragraph (b) of the definition former member in subsection 2(1) of the French version of the Act is replaced by the following:

        • (b) à l’article 9.2 et à l’alinéa 28(1)b.1), du participant dont la participation a pris fin ou qui a pris sa retraite, à l’exception de celui qui, avant la cessation totale du régime, s’est vu acheter une prestation viagère qui satisfait, en application de l’article 17.2, à l’ensemble des obligations prévues par le régime relativement à ses prestations ou relativement à toute autre prestation ou toute option visées à l’alinéa 17b), a, au titre de l’article 26, transféré ses droits à pension ou utilisé ceux-ci pour acheter une prestation viagère, ou a vu ses prestations de pension transférées à un autre régime de pension;

      • 2010, c. 12, s. 1786(3)(E)

        (3) Subparagraph (b)(i) of the definition former member in subsection 2(1) of the English version of the Act is replaced by the following:

        • (i) had a life annuity purchased for them that, under section 17.‍2, satisfies all of the plan’s obligations with respect to their pension benefits or any other benefit or option referred to in paragraph 17(b),

        • (i.1) transferred their pension benefit credit under section 26,

  • — 2019, c. 29, s. 147

    • 147 The Act is amended by adding the following after section 17.1:

      Life Annuities

      • Life annuity in lieu of pension benefit
        • 17.2 (1) The purchase of an immediate or deferred life annuity by the administrator of a pension plan for a former member or survivor satisfies an obligation under the plan to provide a pension benefit arising from a defined benefit provision — as well as, in the case of a deferred life annuity, an obligation under the pension plan to provide any other benefit or option described in paragraph 17(b) that relates to that pension benefit — to the former member or survivor if

          • (a) the plan authorizes the purchase of the life annuity in satisfaction of that obligation;

          • (b) the life annuity is of the prescribed kind;

          • (c) the life annuity provides the former member or survivor with payments that

            • (i) in the case of an immediate life annuity, are in the same amount and form as the pension benefit to which the former member or survivor would otherwise be entitled under the terms of the pension plan that are in place on the day of the purchase, or

            • (ii) in the case of a deferred life annuity, are in the same amount as the pension benefit, and the related benefit or option described in paragraph 17(b), to which the former member or survivor would otherwise be entitled under the terms of the pension plan that are in place on the day of the purchase; and

          • (d) the administrator complies with the prescribed notice requirements.

        • Partial satisfaction of the obligation

          (2) Despite paragraph (1)‍(c), the administrator may purchase a life annuity that provides the former member or survivor with payments that are in an amount that is the same as a part of the pension benefit or, in the case of a deferred life annuity, as a part of the pension benefit and related benefit or option. However, that purchase satisfies the obligation under the plan only with respect to that part.

        • Superintendent’s approval

          (3) The administrator shall obtain the Superintendent’s approval of the person from whom the administrator proposes to purchase the life annuity if that person is not a life company as defined in subsection 2(1) of the Insurance Companies Act.

        • Application of section 26.‍1

          (4) For greater certainty, section 26.‍1 applies to the purchase of a life annuity under this section.

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