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The Pension Benefits Amendment Act

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If you need an official copy, contact Statutory Publications.

S.M. 1997, c. 15

THE PENSION BENEFITS AMENDMENT ACT


 

(Assented to June 28, 1997)

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

C.C.S.M. c. P32 amended

1         The Pension Benefits Act is amended by this Act.

2         Section 1 is amended by repealing the definition "deferred life annuity" and substituting the following:

"deferred life annuity" means a life annuity that commences at retirement age under a pension plan but in any event not later than at the maximum age at which benefits are required to be paid to a member of the plan under the Income Tax Act (Canada); (« rente viagère différée »)

3         Subsection 18(2.1) is amended

(a) by striking out the section heading and the part preceding clause (a) and substituting the following:

New plan established after June 24, 1992

18(2.1)   An employer who establishes a new defined benefit pension plan and submits it for registration after June 24, 1992 shall

(b) in clause (b), by striking out "contain or have attached" and substitute "include in the plan or attach".

4(1)      Subsection 21(4) is amended

(a) in the part preceding clause (a), by striking out "may provide for";

(b) in clause (a), by adding "may provide for" before "vesting";

(c) in clause (b),

(i) by adding "may provide for" before "locking", and

(ii) by striking out "and"; and

(d) by repealing clause (c) and substituting the following:

(c) may, in the case of a former member who retired, died or terminated employment before January 1, 1998 or in the case of a member who died before that date, provide for payment to the former member or the surviving spouse or surviving common-law spouse of the deceased member or deceased former member of an amount equal to the commuted value of the deferred life annuity or pension benefit credit to which the former member or spouse is entitled, if

(i) the annual amount that would be payable to the member or former member at normal retirement age is less than 4% of the YMPE for 1997, or

(ii) the pension benefit credit is less than 4% of the YMPE for 1997; and

(d) shall, in the case of a former member who retired, died or terminated employment on or after January 1, 1998 or a member who died on or after that date, provide for payment to the former member or the surviving spouse or surviving common-law spouse of the deceased member or deceased former member of an amount equal to the commuted value of the deferred life annuity or pension benefit credit to which the former member or spouse is entitled, if

(i) the annual amount that would be payable to the member or former member at normal retirement age is less than 4% of the YMPE in the year in which the member died or the former member died, retired or terminated employment, or

(ii) the pension benefit credit is less than 4% of the YMPE in the year in which the member died or the former member died, retired or terminated employment.

4(2)      The following is added after subsection 21(26):

Eligibility for benefits after resuming co-habitation

21(27)    If, after dividing pension benefit credits under subsection 31(2) or entering into an agreement under subsection 31(6), the spouses or parties resume co-habitation, the division or agreement does not affect any right the spouse or common-law spouse of the member or former member otherwise has to receive benefits under clause (26)(a).

5         Subsection 28(6) is repealed and the following is substituted:

Notice to be given of any late payment by employer

28(6)     Where an employer who is required under a pension plan to remit a sum fails to do so within 60 days after the date required under the plan, the person to whom the sum was to be remitted shall immediately notify the superintendent in writing.

Definitions

28(7)     For the purpose of subsection (6),

"fund holder" means

(a) an insurance company holding the pension funds pursuant to a contract of insurance,

(b) a trust corporation holding the pension funds under a trust agreement,

(c) a society established under the Pension Fund Societies Act (Canada), or

(d) a corporation that is permitted to act as a fund holder under the Income Tax Act (Canada); (« dépositaire des fonds »)

"person" means the administrator or a trustee or member of the board of trustees of the pension plan, the person charged with the investment of the funds of the plan, or the fund holder.  (« personne »)

6         The following is added after section 28:

Meaning of "administrator"

28.1(1)   In this section, "administrator" means any person involved in the administration of, or charged with a duty in respect of, a pension plan, and includes

(a) the employer who establishes the plan;

(b) a trustee of the plan;

(c) a member of a board of trustees of the plan; and

(d) a person appointed under clause 8(3)(c) to perform the duties of the administrator or trustee of the plan.

Care, diligence and skill

28.1(2)   The administrator of a pension plan shall exercise the care, diligence and skill in the administration of the plan and in the administration and investment of the pension fund that a person of ordinary prudence would exercise in dealing with the property of another person.

Special knowledge and skill

28.1(3)   The administrator of a pension plan shall use in the administration of the plan and in the administration and investment of the pension fund all relevant knowledge and skill that the administrator possesses or, by reason of the administrator's profession, business or calling, ought to possess.

Application of subsection (3)

28.1(4)   Subsection (3) applies with necessary modifications to a member of a board, agency or commission made responsible by an Act of the legislature for the administration of a pension plan.

Conflict of interest

28.1(5)   An administrator of a pension plan shall not knowingly permit the administrator's interest to conflict with the administrator's duties and powers in respect of the plan and the pension fund.

Employment of agent

28.1(6)   Where it is reasonable and prudent in the circumstances so to do, the administrator of a pension plan may employ or appoint one or more agents to carry out any act required to be done in the administration of the plan and in the administration and investment of the pension fund.

Responsibility for agent

28.1(7)   An administrator of a pension plan who employs or appoints an agent shall personally select the agent and be satisfied of the agent's suitability to perform the act for which the agent is employed or appointed, and the administrator shall carry out such supervision of the agent as is prudent and reasonable.

Employee or agent

28.1(8)   An employee or agent of an administrator is also subject to the standards that apply to the administrator under subsections (2), (3) and (5).

Benefit by administrator

28.1(9)   The administrator of a pension plan is not entitled to any benefit from the pension plan other than pension benefits, ancillary benefits, a refund of contributions, and fees and expenses related to the administration of the pension plan and permitted by the common law or provided for in the pension plan.

Member of pension committee

28.1(10)  Subsection (9) applies with necessary modifications to a member of a board, agency or commission made responsible by an Act of the Legislature for the administration of a pension plan.

Payment to agent

28.1(11)  An agent of the administrator of a pension plan is not entitled to payment from the pension fund other than the usual and reasonable fees and expenses for the services provided by the agent in respect of the pension plan.

7         Clause 37(g) is amended

(a) in the English version, by striking out "excepted" and substituting "exempt"; and

(b) by adding ", and respecting any terms or conditions to which an exemption is subject" after "or both".

8(1)      Subsection 38(1) is amended by striking out "$200. and not more than $10,000." and substituting "$2,000. and not more than $100,000."

8(2)      Subsection 38(2) is repealed and the following is substituted:

Court to order restitution

38(2)     In addition to the fine, a justice who convicts a person of an offence in respect of which a money in a pension plan or payable to a plan was lost shall order the person to make restitution by paying to the plan the amount of the loss, which may include any cost incurred by the plan in respect of the offence.

Order of restitution may be filed in Q.B.

38(2.1)   An order to make restitution may be filed in the Court of Queen's Bench and enforced as an order of that court.

Coming into force

9(1)      This Act, except section 3, comes into force on a day fixed by proclamation.

Coming into force: section 3

9(2)      Section 3 is retroactive and is deemed to have come into force on June 24, 1992.