ACPM suggests amendments related to process for transferring unclaimed balances of missing pension plan members
August 24, 2023
In response to the issued draft regulations around federal unclaimed property, the Association of Canadian Pension Management (“ACPM”) has submitted a letter setting out various suggested changes to the draft regulations for consideration.
Proposed amendments to section 10.3 of the Pension Benefits Standards Act (“PBSA”) were contained within the 2021 Budget legislation, which received Royal Assent June 29, 2021. The amendments the PBSA (which are not yet proclaimed into force, pending issuance of supporting regulations) relate to process for transferring the unclaimed balances of missing members to a designated entity in the case of a terminated federally regulated pension plan.
On June 24, 2023, the Department of Finance issued draft regulations to support the amendments to the PBSA. In response to those draft regulations, the ACPM has suggested the following:
- Add a condition that allows for the transfer of assets in the case of an ongoing plan;
- Issue guidance to clarify the steps to be taken before a member is officially declared “unable to be located”;
- Establish a period of time after this declaration to allow a plan administrator to transfer the assets to the designated entity for an ongoing pension plan; and
- Explicitly designate a federal entity to receive the asset transfers.
Click read more below to read the full letter:
