B.C. Regulatory Statements Provide Further Guidance on PBSA Amendments

The BC Financial Services Authority (“BCFSA”) recently published Regulatory Statements providing further guidance on amendments to the Pension Benefits Standards Act (“PBSA”) and Pension Benefits Standards Regulation (“PBSR”).

The key points of the two Regulatory Statements are as follows:

Further Details on Annuity Discharge and Other Changes to Pension Benefits Standards Legislation, effective October 30, 2026:

• Annuity discharge:
  • Ongoing plans can now obtain a statutory discharge when buying annuities for surviving spouses who have not started a pension and for active members whose benefits are frozen.
  •  Consent is required for any active member who may become eligible to elect a commuted value transfer in the future.
  • A top-up contribution may be needed to protect the plan’s solvency ratio.
  • The Superintendent expects to be notified within 30 days of each purchase.
• Options for pre-retirement survivor benefit:
  • Surviving spouses must be offered a pension option on a member’s pre-retirement death except where entitlements are only under a defined contribution provision or it is a small pension.

For more information on these changes, see the Bill 33 Regulatory Statement: Bill 33 Regulatory Statement 

Defined Benefit Plan Terminal Funding Obligations, effective September 21, 2026:

• Employers must fully fund an underfunded plan on termination, not just make five years of payments.
• Negotiated cost and jointly sponsored plans are exempt.
• Insolvent employers pay in one lump sum as soon as possible. Solvent employers pay monthly, with any final payment due by the fifth anniversary of termination.

• Annual actuarial reports are required from the second anniversary of termination, followed by a final report once the deficiency is eliminated.
• Leftover assets from the employer's payments are an over-contribution, not surplus, and can be returned with the Superintendent's consent. 

Click on ‘More information’ below to read the regulatory statement: