Federal government publishes draft amendments to the Pension Benefits Standards Regulations, 1985
July 25, 2023
On June 24, the federal government published draft amendments to the Pension Benefits Standards Regulations, 1985.
The draft amendments introduce new guidelines applicable to negotiated contribution plans. Notably, the proposed amendments would exempt negotiated contribution plans from making special payments in instances of solvency deficiency. Instead, negotiated contribution plans will be required to include a “funding buffer” for normal costs and going concern liabilities.
The amendments also address unclaimed pension balances for beneficiaries who can’t be located. The amendments propose prescribing information that must be provided to and may be published by the entity designated to hold unclaimed pension balances. The proposed regulations also identify who is eligible to claim unclaimed pension balances, and how long the unclaimed assets may be administered before they are transferred to the Crown.
Comments on the draft amendments are due by July 24, 2023.
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