Home / UK and Canadian Pension Fund – Appendix G

UK and Canadian Pension Fund – Appendix G

Comparative Study of U.K.
and Canadian Pension Fund Transparency Practices 

Previous – Content – Next

Appendix G: Selected Sections
from the Pension Benefits Standards Regulations, 1985
(Canada)

Source:
http://laws.justice.gc.ca/en/P-7.01/SOR-87-19/164385.html#section-7.1

7.
[http://laws.justice.gc.ca/fr/P-7.01/DORS-87-19/108664.html#article-7]

The administrator of a plan shall maintain a current
record that clearly identifies every investment held
on behalf of the plan, the name in which the investment
is made and, where appropriate, the name in which the
investment is registered.

7.1
[http://laws.justice.gc.ca/fr/P-7.01/DORS-87-19/108664.html#article-7.1]

(1)
The administrator of a plan shall, before the later
of July 1, 1994 and the day on which the plan is registered,
establish, on behalf of the plan, a written statement
of investment policies and procedures in respect of
the plan’s portfolio of investments and loans, including

(a)
categories of investments and loans, including derivatives,
options and futures,

(b) diversification of the investment portfolio,

(c) asset mix and rate of return expectations,

(d) liquidity of investments,

(e) the lending of cash or securities,

(f) the retention or delegation of voting rights acquired
through plan investments,

(g) the method of, and basis for, the valuation of
investments that are not regularly traded at a public
exchange, and

(h) related party transactions permitted under section
17 of Schedule III and the criteria to be used to
establish whether a transaction is nominal or immaterial
to the plan,

having regard to all factors that may affect the funding
and solvency of the plan and the ability of the plan
to meet its financial obligations.

(2)
The statement of investment policies and procedures
referred to in subsection (1) shall include a description
of the factors referred to in that subsection and the
relationship of those factors to those policies and
procedures.

(3)
The administrator of a plan shall submit the statement
of investment policies and procedures referred to in
subsection (1)

(a)
to any pension council that has been established,
within 60 days after the later of

(i)
the day on which the statement is established, and

(ii) the day on which the pension council is established;
and

(b)
where a plan is a defined benefit plan, to the actuary
to the plan on or before the day that is the later
of

(i)
60 days after the day on which the statement is
established, and

(ii) the day on which the actuary is appointed.
SOR/93-299, s. 2; SOR/2002-78, s. 5.

7.2
[http://laws.justice.gc.ca/fr/P-7.01/DORS-87-19/108664.html#article-7.2]

(1)
The administrator of a plan shall review and confirm
or amend the statement of investment policies and procedures
referred to in subsection 7.1(1) at least once each
plan year.

(2)
A copy of all amendments to the statement of investment
policies and procedures shall be submitted, within 60
days after the statement is amended,

(a)
to any pension council that has been established;
and

(b) where the plan is a defined benefit plan, to the
actuary to the plan. SOR/93-299, s. 2; SOR/2002-78,
s. 6.

REPORTING

12.
[http://laws.justice.gc.ca/fr/P-7.01/DORS-87-19/108664.html#article-12]

(1)
An information return required under subsection 12(1)
of the Act to be filed annually shall contain information
in respect of a plan that is related to that plan year.

(2)
An information return required under subsection 12(1)
of the Act to be filed other than annually shall contain
all the information in respect of a plan relating to
that portion of a plan year up to and including the
date on which the information return is prepared.

13.
[http://laws.justice.gc.ca/fr/P-7.01/DORS-87-19/108664.html#article-13]

An
information return referred to in subsection 12(1) of
the Act shall contain the information set out in Form
2 of Schedule II.

14.
[http://laws.justice.gc.ca/fr/P-7.01/DORS-87-19/108664.html#article-14]

(1)
The Superintendent shall require an administrator to
file a cost certificate, prepared by an actuary, accountant
or other professional advisor as of the effective date
of an amendment to the plan that alters the cost of
benefits under the plan or alters the contributions
to the plan, in the case of

(a)
a defined contribution plan where the contributions
under the plan are allocated to individual plan members;
and

(b)
a defined benefit plan that is an insured plan.

(2)
A cost certificate referred to in subsection (1) shall
include

(a)
the estimated cost of benefits under the plan and
the contributions to the plan, showing separately
employer and plan member contributions

(i)
for the plan year following the effective date of
the amendment, where the effective date falls on
the last day of the plan year, or

(ii)
for the plan year in which the effective date of
the amendment falls, where the effective date falls
on any other day of the plan year; and

(b)
the formula for computing the cost of benefits, showing
the formula for allocating the cost between the employer
and the plan members for subsequent plan years.

15.
[http://laws.justice.gc.ca/fr/P-7.01/DORS-87-19/108664.html#article-15]

(1)
The Superintendent may require the administrator to
file, at such intervals or times as the Superintendent
directs,

(a)
subject to subsection (2), a list of assets held by
the plan on the date directed by the Superintendent,
showing

(i)
the book value of each asset,

(ii)
the market value of each asset, and

(iii)
such information as will permit the verification
of the market value attributed to an asset and the
determination of whether the requirements of section
6 have been met;

(b)
an appraisal that will permit the verification of
the market value attributed to an asset held by the
plan;

(c)
if the plan is not an insured plan,

(i)
a financial statement of the pension fund,

(ii)
any information that the Handbook of the Canadian
Institute of Chartered Accountants requires to be
set out in a financial statement of a pension plan,
and

(iii)
an auditor’s report of the pension fund;

(d)
information concerning the investments of the pension
fund, including the information set out in Form 2.1
of Schedule II;

(e)
any information relating to the determination of the
solvency and funding status of a pension plan;

(f)
the location of any books, records or other documents
relating to a pension plan or to any securities, obligations
or other investments in which pension fund money is
invested;

(g)
the name of the collective bargaining agent, if any,
who represents the pension plan members;

(h)
the information necessary to identify the employers
who participate in or who have ceased participation
in the plan;

(i)
a certificate of the administrator or any person preparing,
compiling or filing any information on behalf of the
administrator that certifies that the information
submitted to the Superintendent is accurate;

(j)
a record of, or any other document evidencing, any
operating expenses paid from the plan fund or that
are due or accrued from the plan fund, including the
names of any payees, the purpose and amounts of any
payments made or to be made to each payee, including
the aggregate amounts; and

(k)
a record of, or any other document evidencing, all
direct and indirect compensation that a person received
or that is due or accrued in relation to any service
provided by the person in respect of the plan.

(2)
A list of assets is not required in respect of a plan
under which benefits are provided through

(a)
a contract issued by a person authorized to carry
on a life insurance business in Canada, other than
a contract in respect of which separate and distinct
funds are maintained by the person; or

(b)
a contract issued by the Government of Canada. SOR/93-299,
s. 4; SOR/95-171, s. 6; SOR/2002-78, s. 11.

INFORMATION
TO BE PROVIDED

22.
[http://laws.justice.gc.ca/fr/P-7.01/DORS-87-19/108813.html#article-22]

The
written explanation, information and written statement
to be provided pursuant to paragraphs 28(1)(a) and (b)
of the Act shall be addressed to the plan member or
the employee and that person’s spouse or common-law
partner as shown on the records of the administrator
and shall be

(a)
given to the plan member or the employee at the place
of employment; or

(b)
mailed to the residence of the plan member or employee.
SOR/95-171, s. 6(F); SOR/2001-194, s. 5.

23.
[http://laws.justice.gc.ca/fr/P-7.01/DORS-87-19/108813.html#article-23]

(1)
The written statement to be provided in accordance with
paragraph 28(1)(b) of the Act shall include

(a)
the name of the plan member;

(b)
the period to which the statement applies;

(c)
the date of birth of the plan member;

(d)
the period that has been credited to the plan member
for the purpose of calculating the pension benefit
of the plan member;

(e)
the date on which the plan member attains pensionable
age;

(f)
the date on which the plan member is first entitled
to an immediate pension benefit pursuant to subsection
16(2) of the Act;

(g)
the name of the spouse or common-law partner of the
plan member listed on the records of the administrator;

(h)
the name of any person on the records of the administrator
designated as the beneficiary of the pension benefit
of the member;

(i)
the additional voluntary contributions of the plan
member made for the plan year and the accumulated
additional voluntary contributions of the plan member
as of the end of the plan year;

(j)
the required contributions of the plan member made
for the plan year and the accumulated required contributions
of the plan member as of the end of the plan year;

(k)
in the case of a plan with a defined contribution
provision, the contributions of the employer in respect
of the plan member made for the plan year and the
accumulated contributions of the employer in respect
of the plan member as of the end of the plan year;

(l)
the amount of any funds transferred to the plan in
respect of the plan member and the benefit under the
plan attributable to that amount or the length of
service credited to the plan member in respect of
that amount;

(m)
in the case of a plan other than a defined contribution
plan, the annual amount of the pension benefit accrued
in respect of the plan member as of the end of the
plan year and payable at pensionable age;

(n)
if applicable, the interest rates credited to the
contributions of the plan member for the plan year;

(o)
the benefit payable on the death of the plan member
and the extent to which that benefit would be reduced
by a payment under a group life insurance plan;

(p)
a statement setting out the right to access the documents
described in paragraph 28(1)(c) of the Act;

(q)
in respect of the defined benefit provisions of an
uninsured defined benefit plan,

(i)
if the ratio as calculated in accordance with paragraph
(b) of the definition “solvency ratio” in subsection
2(1) is less than one,

(A)
the value and description of the ratio,

(B)
a description of the measures the administrator
has implemented or will implement to bring that
ratio to one, and

(C)
the extent to which the member’s benefit would
be reduced if the plan were terminated and wound
up with that solvency ratio; and

(ii)
in any other case, a statement that the plan is
fully funded based on the most recent solvency ratio
of the plan.

(2)
A written statement referred to in paragraph 28(1)(d)
of the Act, in the case of a member who has retired
from a plan, shall be in the form set out in Form
1 of Schedule IV.

(3)
A written statement referred to in paragraph 28(1)(d)
of the Act, in the case of a plan member who has ceased
to be a member of the plan or where the whole or part
of the plan has terminated and that member is entitled
to a deferred pension benefit, shall be in the form
set out in Form 2 of Schedule IV.

(4)
A written statement referred to in paragraph 28(1)(d)
of the Act, in the case of a plan member who has ceased
to be a member of the plan and who is not entitled
to a deferred pension benefit, shall be in the form
set out in Form 3 of Schedule IV.

(5)
A written statement referred to in paragraph 28(1)(d)
of the Act, in the case of a plan member who has died,
shall be in the form set out in Form 4 of Schedule
IV. SOR/2001-194, s. 5; SOR/2002-78, s. 14.

23.1
[http://laws.justice.gc.ca/fr/P-7.01/DORS-87-19/108813.html#article-23.1]

For
the purposes of paragraph 28(1)(c) of the Act, each
person referred to in that paragraph may examine the
written statement of investment policies and procedures
in respect of the plan’s portfolio of investments and
loans as described in subsection 7.1(1). SOR/2002-78,
s. 15.