Pension Benefits Regulations Amendments

HRinfodesk---Canadian Payroll and Employment Law, March 2005

On March 11, 2005, the Pension Benefits Amendment Regulations 2005 were published in the Saskatchewan Gazette, Part II, Vol. 101, No. 10, March 11, 2005 following approval by Order in Council 135/2005, dated March 2, 2005. The revised regulations will allow the Pension Benefits Amendment Act, 2004 to come into force, which received Royal Assent on June 17, 2004. The Pension Benefits Amendment Act, 2004 is awaiting a final Order in Council to set the proclamation date (date the Act comes into force) which is June 1, 2005; this proclamation date will be confirmed around March 23, 2005. Many pension plans will require amendments to reflect the new provisions.

The new provisions will enable employers and unions to develop a flexible pension plan, which is a defined benefit plan with added features that allow members to make optional additional contributions to be used to purchase enhanced pension benefits at retirement. The flexible pension plan will also offer a number of optional ancillary benefits that typically include reducing the age at which an unreduced pension can be paid, improving survivor benefits, providing bridging benefits, cost of living adjustments among other things,.

One of the things the Regulation will provide is a threshold for unlocking small benefits held in a pension plan. The amendments will allow these limits to be established by regulation, which will enable them to be increased to be more consistent with the limits provided by other jurisdictions in a timelier manner.

Pension Benefits Amendment Act 2004

By Yosie Saint-Cyr, Editor at HRinfodesk

Published on HRinfodesk---Canadian Payroll and Employment Law

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