Pension Plans

Complete List of PBSA Sections Affected by Bill 58

Following is a list of the sections the Pension Benefits Standards Act amended by Bill 58 and a brief description of each amendment. These are only very brief descriptions of the general effect of the amendments, and are not to be considered a substitute for the actual provisions of Bill 58.

A bulletin further describing the amendments contained in Bill 58 is also provided on this web site.

Section of PBSA - Brief Description of Nature of Amendment

  • 1 (1) An amended definition for "additional voluntary contributions".
  • 1 (1) An amended definition for "commuted value".
  • 1 (1) An amended definition for "employment".
  • 1 (1) An amended definition for "spouse" now includes a person of the same gender.
  • 1 (1) An amended definition for "termination of membership".
  • 1 (1) An amended definition for "years of continuous employment".
  • 1 (1) A new definition added for "collective agreement", same meaning as Labour Relations Code.
  • 1 (1) A new definition added for "early retirement pension".
  • 1 (1) A new definition added for "optional ancillary benefits".
  • 1 (1) A new definition added for "optional ancillary contributions".
  • 1 (1) A new definition added for "optional defined benefit contributions".
  • 1 (1) A new definition added for "years of continuous plan membership", treats members uniformly.
  • 7 (2) The term "collective agreement" defined to have same meaning as in Labour Relations Code.
  • 8 (5) A clarified standard of care owed by an administrator.
  • 8 (7) An administrator is responsible to properly select and supervise agents.
  • 8 (8) An agent is subject to same standard of care as that of an administrator.
  • 8 (9) An administrator must not be in a conflict of interest.
  • 8 (10) Entitlement to a benefit does not constitute a conflict of interest.
  • 9 (3) Revised wording according to Canadian Institute of Actuaries terminology.
  • 9 (7) Audited financial statements are required for a plan with assets over a prescribed amount.
  • 10 (4) A member has an increased right of access to particular plan documents.
  • 11 The period of time for which an administrator must retain plan documents is specified. 15 (2) A new plan document is treated the same as an amended document.
  • 15 (3) Amendments to peripheral documents still need to be filed but need not be registered.
  • 15 (4) A non-compliant portion of a plan amendment can be severed enabling registration of the rest.
  • 15 (5) The plan administrator must ensure that a plan amendment complies with PBSA.
  • 16 (2) A housekeeping change consequential to amendment to s. 15 (3).
  • 16 (3) A housekeeping change consequential to amendment to s. 15 (4).
  • 19 (1) A housekeeping change consequential to amendment to s. 71.
  • 20 (1) A housekeeping change consequential to amendment to s. 71.
  • 20 (3) A housekeeping change consequential to amendment to s. 71.
  • 20 (4) A right of appeal is provided for a direction issued under s. 71.
  • 20 (5) A housekeeping change consequential to amendment to s. 20 (4).
  • 23 (3) Selected new provisions are exempt from the requirement to be contained in the plan text.
  • 24 (1) A change to enable flex plans.
  • 25 (3) A housekeeping change consequential to repeal of s. 26 (2).
  • 26 (2) Repealed as a consequence to change in vesting provisions January 1, 1998. 27 A clarified vesting rule that applies at pensionable age.
  • 28 A clarified vesting rule that applies upon a plan termination.
  • 29 (1) A clarified extent of a vested pension.
  • 29 (2) A clarified extent of a vested pension upon a plan termination.
  • 29.1 (1) Conversion of optional contributions to optional ancillary benefits must be on actuarial basis.
  • 29.1 (2) Excess optional ancillary contributions can be subject to forfeiture.
  • 30 (2.1) A change to enable flex plans.
  • 30 (2.2) A clarified requirement that a separated spouse is locked-in to the same extent as the member.
  • 30 (10) A clarified that relief from locking-in for early vesting does not apply upon plan termination.
  • 30 (11) A person age 65 is able to commute if total of all entitlements less than a prescribed amount.
  • 30 (12) A non resident of Canada is permitted to transfer pension money out of the country.
  • 31 (1) A change to enable flex plans.
  • 31 (3) A change to enable flex plans.
  • 32 (2.1) The 50% funding rule is extended to past service benefit improvements.
  • 32 (3.1) The 50% funding rule must be applied to a plan conversion as of the date of conversion.
  • 32 (7) A change to enable flex plans.
  • 33 (1) Portability must be provided to a terminating defined contribution member regardless of age.
  • 33 (1.1) A defined benefit plan can restrict transfers at or after age 55.
  • 33 (2.1) A clarified provision that pre-1993 contributions are not locked-in.
  • 33 (3) Housekeeping change.
  • 33 (3.1) A multi-employer plan can restrict portability if member has subsequently returned to work.
  • 33 (4) A housekeeping change consequential to the addition of subsection 2.1.
  • 33 (5) A housekeeping change.
  • 33 (5.1) A defined contribution plan can require transfer if member not eligible for immediate pension.
  • 33 (5.2) A terminating plan can require transfer if member not eligible for immediate pension.
  • 33 (8) The administrator must transfer the commuted value within 60 days of member's direction.
  • 34 (2) A clarified minimum level of survivor benefit.
  • 34 (4.1) A spouse is not forced to commute if vested only because the plan gives early vesting.
  • 34 (5) Housekeeping change consequential to the addition of s. 33 (1.1) and (2.1). 34 (12) A clarified provision that once a separated spouse receives a share that ends entitlements.
  • 35 (4) A clarified requirement that option of a single life pension is a mandatory option for plans.
  • 35 (6) No requirement for a joint and survivor pension if the pension has already been divided.
  • 35 (7) Renumbering of old subsection (6).
  • 37 (3.1) Enables a minimum survivor benefit to be prescribed for level income options.
  • 37 (5) Enables an Old Age Security offset option.
  • 38 (9) Age 71 changed to age 69 for consistency with Income Tax Act (Canada).
  • 40 (1) Option of commutation of small amounts is now mandatory for plans rather than optional.
  • 40 (2) Mental disability is no longer grounds for getting pension unlocked.
  • 41 (1.1) Section 43 (1), (2) moved to 41 (1.1), (1.2).
  • 41 (1.2) Section 43 (1), (2) moved to 41 (1.1), (1.2).
  • 42 (1) Clarified eligibility to act as a fund holder.
  • 43 (1) Section 43 (1), (2) moved to 41 (1.1), (1.2).
  • 43 (2) Section 43 (1), (2) moved to 41 (1.1), (1.2).
  • 43 (3) A housekeeping change.
  • 43 (5) A clarified obligation to notify within 30 days if contributions overdue for 60 days.
  • 43 (6) Exemption from subsection (5) for a plan administered by a board of trustees.
  • 43.1 (1) Employer is required to keep contributions separate and apart.
  • 43.1 (2) Contributions deemed to be held in trust until remitted to the fund holder.
  • 43.1 (3) Deemed trust amounts deemed to be separate and apart from employer's funds.
  • 44 (1) Pension plan investments must be in best interest of plan members.
  • 44 (2) Pension plan assets must be invested prudently.
  • 44 (3) Pension plan assets must be held in the name of the plan.
  • 44 (4) A defined contribution plan member is permitted to make investment decisions.
  • 44 (5) A flex plan must specify how flex contributions will be invested.
  • 45 (1) A housekeeping change consequential to movement of s. 43 (1) to s. 41.
  • 48 (6) A housekeeping change.
  • 50 (1) Notice of intended plan termination must be given to surviving spouse and estate beneficiary.
  • 51 (2) A plan terminated with a solvency deficiency must still be funded until deficiency eliminated.
  • 53 (2) Clarified provision that partial termination does not automatically give entitlement to surplus.
  • 56 (1) An administrator may be appointed for windup if in the best interests of plan members.
  • 57 (3) A multi-employer or negotiated cost plan is not required to pay wind-up expenses.
  • 58 (1) A housekeeping change.
  • 58 (2) A housekeeping change consequential to changes to vesting provisions.
  • 58 (4) A housekeeping change consequential to the addition of s. 33 (2.1).
  • 58 (6) A member is entitled to portability if predecessor employer does not wind up the plan.
  • 59 (4) Benefits may be reduced in order to comply with Income Tax Act(Canada).
  • 60 (1) A housekeeping change consequential to the addition of s. 58 (6).
  • 61 (2) Employer is entitled to present a proposal for withdrawal of surplus for a vote by plan members.
  • 61 (3) The categories of people entitled to vote on a proposal for withdrawal of surplus are outlined.
  • 61 (4) The process for a withdrawal of surplus proposal is outlined.
  • 61 (5) Clarified requirements to be met before there is a withdrawal of surplus
  • 61 (6) A clarified requirement that rules for transfer of surplus apply also to terminated plans.
  • 61 (7) A clarified provision that surplus proposals not subject to Trust and Settlement Variation Act.
  • 61.1 (1) Contributions may be withdrawn in order to comply with Income Tax Act (Canada).
  • 61.1 (1) Contributions may be withdrawn if made in error.
  • 61.1 (2) Superintendent's approval required for withdrawal of contributions.
  • 62 (1) A housekeeping, consequential amendments.
  • 62 (6) An arbitrator is now required to apply legal principles to settlement of a dispute.
  • 63 (1) Prohibition on assignment of pension benefits is limited to locked-in transfers.
  • 71 (2) A direction for compliance can be issued, or action taken on behalf of plan members.
  • 71 (3) A direction can be backed up by court order.
  • 71 (4) A court can order compliance with act.
  • 74 (2) A multi-employer plan will be able to suspend the pension of a person on a subsidized early retirement who has returned to work in the same trade with a non participating employer.
  • 74 (2) A late filing penalty will apply to late filing of an annual information return.
  • 74 (2) A fee can be charged for approval and listing of a locked-in RRSP, LIF and LRIF contract.
  • 74 (2) Regulations may be developed governing plan conversions, splits and mergers.