The Province has introduced legislation to modernize the Pension Benefits Standards Act and allow the private sector to offer a wider choice of pension-plan options so that more British Columbians can have access to pension income during their retirement years.

Bill 38 brings improvements to pension legislation by reducing administrative costs and will enhance the rights of pension plan members, including immediate entitlement to employer-paid contributions and more information about how a plan is operating. The bill will extend the same right to receive plan information to retired members.

In addition, it establishes a framework that will give former pension plan members the option of withdrawing "locked-in" funds in a Registered Retirement Savings Plan or life income fund in cases of financial hardship.

The changes permit innovative alternatives to existing plans, such as jointly sponsored cost-sharing pension plans and target benefit plans. Under the jointly sponsored cost-sharing plan model, similar to what currently exists in public-sector pension plans, employers and employees would contribute equally to all elements of the pension plan.

Other key amendments include requiring governance and funding policies for defined benefit and target benefit plans.

This bill provides the superintendent of pensions, the Province's pension regulator, with new tools, including the power to levy administrative penalties and appoint replacement administrators or actuaries.

Other key amendments include requiring governance and funding policies for defined benefit and target benefit plans.

The changes will also ensure that legislative support exists for the regulation of pension plans that have members located in more than one province.

Quotes:

Minister of Finance Kevin Falcon -

"Pensions are the cornerstone of a family's retirement savings. The new plan design options such as target benefit plans, and improved pension plan disclosure requirements, will help to ensure British Columbian's retirement savings options are maximized."

"Employers have said they need streamlined regulation so that they can focus on their business and not on red tape. Modernizing the legislation gives employers more flexibility to offer a wider choice of pension plan options, so that more British Columbians can have access to pension income during their retirement years."

Contact:

Jamie Edwardson
Director of Communications
Ministry of Finance
250 356-2821