Schedule 2

1 Section 11 (2) (c) of the Pension Benefits Standards Regulation, B.C. Reg. 71/2015, is amended by striking out "37 (5) (d) (vi), (e) and (g)" and substituting "37 (5) (e) and (g)".

2 Section 13 is amended by adding the following subsection:

(1.1) For the purposes of section 8 (1) (f) of the Act, the plan text document of a pension plan must provide that if a person is entitled to make an election under section 57 (4) or (6) (a) of the Act, is entitled to exercise an option under section 79 (2) of the Act or may make an election resulting from a transfer under section 79 (1) (a) (i) (B), 85 or 89 of the Act or under section 74 (9) (b) of this regulation,

(a) the person must make the election or exercise the option within 90 days after the receipt of the information required by section 33, 34, 37, 38 or 39 of this regulation, as the case may be, and

(b) if the election is not made or the option is not exercised within the 90-day period referred to in paragraph (a), the person is limited to the options, if any, provided by the plan text document.

3 Section 25 is amended

(a) in subsection (1) (b) by adding ", as part of the terms and conditions of the employee's employment," after "the employee will" and by striking out "and" at the end,

(b) in subsection (1) by adding the following paragraphs:

(b.1) if the plan text document requires contributions to be made by members, explain how the amount of member-required contributions is determined,

(b.2) if the plan text document provides that a member must provide direction regarding investments,

(i) specify which of the default investment options under section 68 (4) (b) applies if a member fails to provide direction regarding the investment options, and

(ii) explain that the plan summary must contain or be accompanied by information on how to provide direction regarding the available investment options as required by section 29 (3) (c), and ,

(c) in subsection (2) (e) by striking out "participating employer" and substituting "administrator", and

(d) by adding the following subsections:

(3) Notice under section 29 (2.1) (a) of the Act in relation to an increase in member contributions must

(a) be provided, in writing, by the administrator,

(b) state that contributions will, as part of the terms and conditions of the employee's employment, increase in accordance with the method for determining increases that is set out in the plan text document if the employee does not make an election in accordance with subsection (4),

(c) describe the method referred to in paragraph (b) and how that method will apply to the employee if the employee does not make an election in accordance with subsection (4), and

(d) be provided

(i) at the same time as notice is provided under subsection (1), if the employee is not a member of the plan, or

(ii) at the time specified in the plan text document, if the employee is a member of the plan.

(4) For the purposes of section 29 (2.1) (b) of the Act, if an employee elects not to be subject to an increase in member contributions described in the notice provided by the administrator, the employee's election must

(a) be in writing,

(b) state the employee's name,

(c) state that the employee elects not to be subject to the increase in member contributions described in the notice provided by the administrator under section 29 (2.1) (a) of the Act,

(d) be signed and dated by the employee, and

(e) be received by the administrator within the longer of

(i) the period specified in the plan text document for the provision of the election, and

(ii) the 60-day period immediately following the employee's receipt of the notice referred to in subsection (3).

4 Section 29 (1) (c) is amended by striking out "within 30 days after the provision of that notice" and substituting "at the time that any such notice is provided".

5 Section 37 is amended

(a) by repealing subsection (5) (b) (iv),

(b) in subsection (5) (b) (v) by adding "if the plan is not a jointly sponsored plan," before "the amount of",

(c) by repealing subsection (5) (c) and substituting the following:

(c) if the deceased member had a spouse at the time of death and that spouse's interest in the deceased member's benefits has not terminated within the meaning of subsection (6), and if either the spouse is entitled under Division 7 of Part 8 of the Act to transfer the commuted value of the deceased member's benefits from the plan, or the spouse is required by the plan text document of the plan to make the election described in section 89 (1) or (2) of the Act, as applicable, the following information:

(i) the commuted value of the benefits that the surviving spouse is entitled to receive;

(ii) if the surviving spouse is entitled to receive benefits from a benefit formula component of a plan, other than a jointly sponsored plan, the amount of the deceased member's excess contributions, if any; ,

(d) in subsection (5) (d) by striking out "member's benefits has not terminated within the meaning of subsection (6) and the plan text document of the plan does not provide that the spouse must transfer the commuted value of the deceased member's benefits from the plan" and substituting "deceased member's benefits has not terminated within the meaning of subsection (6), and if the spouse is not required by the plan text document of the plan to make the election described in section 89 (1) or (2) of the Act, as applicable,", and

(e) in subsection (5) (d) by adding "and" at the end of subparagraph (iv), by striking out "and" at the end of subparagraph (v) and by repealing subparagraph (vi).

6 Section 38 (5) (b) (i) is repealed.

7 Section 40 is amended by adding the following subsection:

(1.1) Despite subsection (1), the administrator is not required to provide notice under that subsection if the plan text document of a pension plan is amended solely for the purpose of setting out a method for determining increases in member contributions as described in section 29 (2.1) of the Act.

8 Section 83 is amended

(a) in subsection (1) by striking out everything after "section 56 (1) of the Act," and substituting "sufficient contributions to ensure that the solvency ratio of the component after the purchase of the annuity is the greater of 0.85 and the solvency ratio of the component as determined in the current actuarial valuation report.",

(b) in subsection (2) by adding "and" at the end of paragraph (a) and by repealing paragraph (b),

(c) in subsection (3) by striking out "deferred member who is entitled to a benefit from the component" and substituting "member described in subsection (1) (a) or (c) of that section",

(d) by adding the following subsection:

(3.1) The administrator must not transfer assets from the defined benefit component of a pension plan to purchase an annuity under section 89.1 of the Act in respect of a person described in subsection (1) (b) of that section unless the annuity provides that, if the annuitant dies before payments begin, the insurance company must pay, as a lump-sum payment, the value of the deceased annuitant's entitlement, within 60 days after receipt by the insurance company of all records that are necessary to allow the insurance company to make the payment, to the annuitant's designated beneficiary, or, if there is no living designated beneficiary, to the personal representative of the annuitant's estate. ,

(e) by repealing subsection (5) (b) and substituting the following:

(b) the value of the member's member-required contributions made on and after the initial legislation date, with interest, exceeds 1/2 of the purchase price of the annuity, , and

(f) by adding the following subsections:

(6) The administrator must not transfer assets from the defined benefit component of a pension plan to purchase an annuity under section 89.1 of the Act in respect of a member described in subsection (1) (c) of that section if

(a) the member may become eligible to elect a transfer under Division 7 of Part 8 of the Act, other than a transfer in respect of which an election may be made under section 105 of the Act, and

(b) the member has not consented in writing to the purchase of the annuity.

(7) The administrator must not transfer assets from the defined benefit component of a pension plan to purchase an annuity under section 89.1 of the Act in respect of a member described in subsection (1) (c) of that section if the value of the member's member-required contributions made on and after the initial legislation date, with interest, exceeds 1/2 of the purchase price of the annuity, unless, before making the transfer, the administrator first allocates and distributes the excess contributions in the manner elected by the member under section 57 (4) of the Act.

9 Section 84 is repealed.

10 Table 2 in Schedule 4 is amended by adding the following item as indicated:

Copyright © King's Printer, Victoria, British Columbia, Canada