Amendments to the Pension Benefits Standards Regulations, 1985 (PBSR), first announced by the Minister of Finance in October 2009 and released in draft form on September 19, 2014, were released in final form on March 25, 2015. The amendments to the PBSR involve changes to the pension investment rules, changes affecting the regulatory framework for federally regulated defined contribution (DC) plans, as well as other changes affecting member disclosure, electronic communications and improving protection for plan members and beneficiaries under federally regulated plans. The amendments are scheduled to come into force on April 1, 2015 and July 1, 2016.
Changes to the Pension Investment Rules
Significant changes to the PBSR have been made in order to modernize the pension fund investment rules found in Schedule III of the PBSR. The changes will apply to federally regulated plans and to pension plans registered in Canadian jurisdictions that have adopted the federal investment rules, namely, Ontario, Alberta, British Columbia, Manitoba, Newfoundland and Saskatchewan.
The new pension investment rules will come into force on July 1, 2016. All plan investments must comply with the new rules by this date. Any related party investments that do not comply with the new rules (e.g., investment in employer debt or equity securities) must be divested within five (5) years from this date.
To continue reading this article, please click here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
