BILL 16 — 2013
POOLED REGISTERED PENSION PLANS ACT

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

Definitions

1   In this Act:

"applied Act" means the federal Act as it applies under this Act;

"applied regulations" means the federal regulations that are incorporated by reference by the regulations;

"designated province" means a province designated in the federal regulations, and includes Canada;

"federal Act" means the Pooled Registered Pension Plans Act, S.C. 2012, c. 16, except its consequential and related amendments, spent provisions and commencement provision;

"federal regulations" means the Pooled Registered Pension Plans Regulations, SOR/2012-222;

"pension legislation" means an Act or subordinate legislation, of Canada or a province, that deals with pension standards;

"pension plan", except in references to pooled registered pension plans, means a pension plan that is registered under the pension legislation of a province or Canada;

"provincial employment" means employment in British Columbia, other than

(a) employment on or in connection with the operation of any work, undertaking or business that is within the legislative authority of the Parliament of Canada, or

(b) employment excluded by regulation;

"spouse", in relation to another person, means

(a) a person who at the relevant time was married to that other person, and who, if living separate and apart from that other person at the relevant time, did not live separate and apart from that other person for longer than the 2-year period immediately preceding the relevant time, or

(b) if paragraph (a) does not apply, a person who was living with that other person in a marriage-like relationship and who had been living in that relationship for a period of at least 2 years immediately preceding the relevant time;

"superintendent" means the Superintendent of Pensions appointed under the Pension Benefits Standards Act;

"survivor", in relation to a deceased member, means the member's spouse at the time of the member's death.

Application of this Act

2  (1) This Act does not apply in respect of a member of a pooled registered pension plan unless the member is an individual who

(a) is employed in provincial employment, or

(b) is, in British Columbia,

(i) employed on or in connection with the operation of any work, undertaking or business that is within the legislative authority of the Parliament of Canada, but only if the person's employer has not entered into a contract, referred to in section 29 [contract between employer and administrator] of the federal Act, with an administrator, as defined in the federal Act, to provide a pooled registered pension plan to the class of employees of which the person is a member, or

(ii) self-employed.

(2) A person must not open an account, nor offer to open an account, in a pooled registered pension plan for an individual described in subsection (1) (a) or (b) unless the person holds a licence issued under section 11 [licensing of administrators] of the applied Act.

Application of federal Act

3  (1) Subject to this Act and the regulations, the provisions of the federal Act apply, with the changes the circumstances require, in respect of pooled registered pension plans as though those provisions had been enacted as provisions of this Act.

(2) For the purposes of applying, under subsection (1), a provision of the federal Act, unless a contrary intention appears in this Act or the regulations, a reference in the provision to a word or expression set out in Column 1 of the following table is to be read as a reference to the word or expression set out opposite it in Column 2:

Table

(3) Despite subsection (1), the following provisions of the federal Act do not apply:

(a) section 1 [short title];

(b) the definitions of "common law partner", "common-law partnership", "included employment", "spouse", "Superintendent" and "survivor" in section 2 (1) [interpretation];

(c) section 2 (2) [meaning of spouse or common-law partner];

(d) section 4 [application];

(e) section 6 (3) [tabling agreement];

(f) section 8 [review by Federal Court];

(g) section 38 [appeal to Federal Court];

(h) section 53 [divorce, annulment, separation or breakdown of common-law partnership];

(i) section 63 [designation of beneficiaries – provincial law];

(j) section 67 (2) [application to Federal Court];

(k) section 72 [agreement to transfer];

(l) section 73 [agreement to surrender];

(m) section 74 [non-application of Statutory Instruments Act];

(n) section 75 (9) [who can lay an information];

(o) section 76 (1) (b) [power to designate provinces];

(p) section 76 (2) [regulations respecting included employment];

(q) section 77 (1), (2) and (4) to (7) [incorporation by reference];

(r) section 78 [annual report].

(4) For the purposes of its application under this Act, section 6 (4) (c) [publication – Canada Gazette] of the federal Act must be read as if the reference to "Government of Canada's withdrawal" were a reference to "Government of British Columbia's withdrawal".

(5) For the purposes of its application under this Act, section 10 (1) [powers of the Superintendent] of the federal Act must be read without the reference to "under the direction of the Minister".

(6) For the purposes of their application under this Act, sections 49 [entitlement of survivor], 52 (1) [entitlement of survivor] and 57 (1) (c) [provisions respecting information] of the federal Act must be read without the references to "or common-law partner".

(7) For the purposes of its application under this Act, section 56 [sex discrimination prohibited] of the federal Act must be read without the reference to "commonlaw partner or former common-law partner".

(8) A reference in a provision of the applied Act to "this Act" must be read as if it were a reference to this Act.

(9) A reference in a provision of this Act or the applied Act to "the regulations" must be read as if it were a reference to the regulations under this Act or to the applied regulations, as applicable.

Reference aids

4  In this Act and the regulations, if a reference to a provision of the federal Act or the federal regulations, whether or not the provision is incorporated under this Act, is followed by italicized text in square brackets that is or purports to be descriptive of the subject matter of the provision, the text in square brackets

(a) is not part of this Act or the regulations, and

(b) is to be considered to have been added editorially for convenience of reference only.

Acting superintendent

5  The superintendent may designate a person who, in the absence of the superintendent, may exercise the powers and perform the duties of the superintendent.

Personal liability protection

6  (1) In this section, "protected individual" means an individual who is or was any of the following:

(a) the superintendent;

(b) a person designated under section 5 [acting superintendent];

(c) an individual acting on behalf of or under the direction of the superintendent.

(2) Subject to subsection (3), no legal proceeding for damages lies or may be commenced or maintained against a protected individual because of anything done or omitted

(a) in the exercise or intended exercise of any power under this Act, or

(b) in the performance or intended performance of any duty under this Act.

(3) Subsection (2) does not apply to a protected individual in relation to anything done or omitted in bad faith.

(4) Subsection (2) does not absolve the government from vicarious liability arising out of anything done or omitted by a protected individual for which the government would be vicariously liable if this section were not in force.

Objections and appeals under multilateral agreements

7  (1) Subject to the terms of a multilateral agreement, for the purposes of a reconsideration, review or appeal of a decision of the supervisory authority of a designated province that

(a) is made under the authority of a multilateral agreement, and

(b) relates to the application of this Act,

the decision is deemed to be a decision of the superintendent and is subject to reconsideration, review or appeal in accordance with this Act.

(2) Subject to the terms of a multilateral agreement, for the purposes of a reconsideration, review or appeal of a decision of the superintendent that

(a) is made under a multilateral agreement, and

(b) relates to the application of the legislation of a designated province,

the decision is deemed to be a decision of the supervisory authority under the legislation of the designated province and is subject to reconsideration, review or appeal in accordance with that legislation.

Appeal to Financial Services Tribunal

8  (1) If an administrator has sent a notice of objection under section 37 (1) [notice of objection] of the applied Act, the administrator may appeal to the Financial Services Tribunal, continued under the Financial Institutions Act, for an order under subsection (4) of this section

(a) within 90 days after the superintendent has, under section 37 (2) [reconsideration by superintendent] of the applied Act, confirmed the action taken, or

(b) if the superintendent has not notified the administrator under section 37 (2) of the applied Act, not less than 90 days nor more than 180 days after the day the notice of objection was sent.

(2) Sections 242.1 (7), 242.2 and 242.3 of the Financial Institutions Act apply in relation to an appeal under subsection (1) of this section.

(3) An administrator that, under subsection (1), appeals a reconsideration decision must provide a copy of the notice of appeal to the superintendent at the same time that notice is provided to the Financial Services Tribunal.

(4) Despite subsection (2), on an appeal under this section, the Financial Services Tribunal may only

(a) dismiss the appeal and order the appellant to take any measures necessary to ensure that the pooled registered pension plan complies with the provisions of this Act and the regulations, or

(b) allow the appeal and order the superintendent to register the pooled registered pension plan or to reinstate the registration of the plan, as the circumstances require, and issue a certificate of registration.

(5) An order under subsection (4) (b) may include conditions imposed on the appellant that are conditions precedent to the registration or reinstatement of registration of the pooled registered pension plan.

Limitation on transfer, assignment, etc of pension money

9  (1) Subject to this Act and the regulations, the following must not be transferred, charged, assigned, given as security, alienated or anticipated and are exempt from execution, seizure or attachment:

(a) funds in a member's pooled registered pension plan account;

(b) variable payments from a member's pooled registered pension plan account;

(c) funds from a pooled registered pension plan account withdrawn under a provision, authorized by section 47 (2) of the applied Act, of a pooled registered pension plan;

(d) funds from a pooled registered pension plan account transferred or used under section 50 (1) [transfer or purchase of annuity] or (3) [transfer in case of death] of the applied Act or under section 54 (2) [transfer of funds] of the applied Act, and amounts earned by the transferred funds;

(e) funds from a pooled registered pension plan account withdrawn under the regulations.

(2) A transaction purporting to transfer, charge, assign, give as security, alienate or anticipate funds contrary to subsection (1) is void.

(3) Subsections (1) and (2) do not apply to an agreement or court order providing for a transfer between a member and a spouse or former spouse because of a breakdown of their relationship.

(4) Despite subsection (1) (b), (c) and (e),

(a) a variable payment,

(b) funds from a pooled registered pension plan account withdrawn under a provision, authorized by section 47 (2) of the applied Act, of a pooled registered pension plan, and

(c) funds from a pooled registered pension plan account withdrawn under the regulations

may be attached by a notice of attachment under section 15 [notice of attachment] of the Family Maintenance Enforcement Act, an order of garnishment under section 18 (2) [garnishment] of that Act or an attachment order under section 24 [attachment orders] of that Act.

(5) A transaction purporting to effect a withdrawal, contrary to the provisions of a pooled registered pension plan required by section 47 (1) (c) or (d) [locking in] of the applied Act, from a pooled registered pension plan account is void.

(6) If this Act requires an amount to be withheld, deducted, paid or credited, an agreement or arrangement, made by the person on whom the requirement is imposed, not to withhold, deduct, pay or credit the amount is void.

Offences

10   If a person is convicted of an offence under this Act, the court, in addition to any punishment it may impose, may order the person to comply with the provisions of this Act or the regulations.

Power to make regulations

11  (1) The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.

(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:

(a) modifying or adapting provisions of the applied Act for the purposes of their application under this Act, including, without limitation, by specifying circumstances in which provisions of the applied Act apply or setting conditions of or limitations on the application of the provisions;

(b) modifying or adapting provisions of the applied regulations for the purposes of their application under this Act, including, without limitation, by specifying circumstances in which provisions of the applied regulations apply or setting conditions of or limitations on the application of the provisions;

(c) respecting fees, including, without limitation,

(i) establishing and imposing fees that must be paid in respect of the application for a licence under section 11 [licensing of administrators] of the applied Act, for filing documents under section 12 (2) [duty of administrator to file documents] of the applied Act in respect of the registration of a plan or for filing an information return under section 58 [annual reporting requirements] of the applied Act, and

(ii) prescribing the manner in which and the period within which those fees must be paid;

(d) defining, for the purposes of this Act, a word or expression used but not defined in this Act;

(e) excluding employment from the definition of "provincial employment";

(f) for any purpose for which regulations are contemplated by this Act.

(3) Regulations under this Act may be made by incorporating by reference provisions of the federal regulations.

(4) Regulations under this Act may

(a) adopt a standard, code or rule

(i) set by a provincial, national, international or other code or standard making body, or

(ii) enacted as or under a law of another jurisdiction,

(b) adopt the standard, code or rule

(i) in whole, in part or with any changes the Lieutenant Governor in Council considers appropriate, or

(ii) as it stands at a particular date, as it stands at the date of adoption or as amended from time to time,

(c) be different for different classes of person, employee, employer, employment or circumstances, and

(d) delegate a matter to or confer discretion on the superintendent.

Consequential and Related Amendments

Family Law Act

12 Section 87 of the Family Law Act, S.B.C. 2011, c. 25, is amended by striking out "a benefit under a pension plan," and substituting "a division of family property under Part 6,".

13 Section 110 is amended

(a) in the definition of "administrator" by striking out "or" at the end of paragraph (a), by adding "or" at the end of paragraph (b) and by adding the following paragraph:

(c) as required by the Pooled Registered Pension Plans Act or equivalent legislation in another jurisdiction, ,

(b) in the definition of "extraprovincial plan" by striking out "Pension Benefits Standards Act," and substituting "Pension Benefits Standards Act or the Pooled Registered Pension Plans Act,",

(c) by repealing paragraph (b) of the definition of "local plan" and substituting the following:

(b) a plan that

(i) is registered under the Pension Benefits Standards Act, the Pooled Registered Pension Plans Act or legislation equivalent to either in another jurisdiction, and

(ii) has members who accrue, or have accrued, entitlement to benefits under the plan from employment, or in the case of a pooled registered pension plan, self-employment, in British Columbia; , and

(d) in paragraph (c) of the definition of "local plan" by striking out "or" at the end of subparagraph (ii), by adding ", or" at the end of subparagraph (iii) and by adding the following subparagraph:

(iv) by reason of the requirements of a reciprocal agreement between governments in respect of the Pooled Registered Pension Plans Act and equivalent legislation of the jurisdictions of the other governments; .

14 Section 113 (3) (c) is amended by striking out "under the Pension Benefits Standards Act;" and substituting "under the Pension Benefits Standards Act or Pooled Registered Pension Plans Act, as applicable;".

15 Section 139 (a) and (b) is amended by striking out "under the Pension Benefits Standards Act" and substituting "under the Pension Benefits Standards Act, in the case of a plan to which that Act applies, or the Pooled Registered Pension Plans Act, in the case of a plan to which that Act applies".

16 Section 145 (1) is amended

(a) in paragraph (a) by striking out "the Pension Benefits Standards Act," and substituting "the Pension Benefits Standards Act or the Pooled Registered Pension Plans Act,", and

(b) in paragraph (b) by striking out "in the Pension Benefits Standards Act or" and substituting "in the Pension Benefits Standards Act, the Pooled Registered Pension Plans Act or".

Family Maintenance Enforcement Act

17 Section 15 (9) of the Family Maintenance Enforcement Act, R.S.B.C. 1996, c. 127, is amended by repealing the definition of "benefit" and substituting the following:

"applied Act" has the same meaning as in the Pooled Registered Pension Plans Act;

"benefit" means

(a) a benefit as defined in the Pension Benefits Standards Act,

(b) a variable payment under the Pooled Registered Pension Plans Act, or

(c) funds from a pooled registered pension plan account withdrawn under

(i) a provision, authorized by section 47 (2) of the applied Act, of a pooled registered pension plan, or

(ii) the regulations under the Pooled Registered Pension Plans Act; .

18 Section 16 (10) is repealed and the following substituted:

(10) In this section:

"applied Act" has the same meaning as in the Pooled Registered Pension Plans Act;

"benefit" means

(a) a benefit as defined in the Pension Benefits Standards Act,

(b) a variable payment under the Pooled Registered Pension Plans Act, or

(c) funds from a pooled registered pension plan account withdrawn under

(i) a provision, authorized by section 47 (2) of the applied Act, of a pooled registered pension plan, or

(ii) the regulations under the Pooled Registered Pension Plans Act.

19 Section 24 (10) is repealed and the following substituted:

(10) In this section:

"applied Act" has the same meaning as in the Pooled Registered Pension Plans Act;

"benefit" means

(a) a benefit as defined in the Pension Benefits Standards Act,

(b) a variable payment under the Pooled Registered Pension Plans Act, or

(c) funds from a pooled registered pension plan account withdrawn under

(i) a provision, authorized by section 47 (2) of the applied Act, of a pooled registered pension plan, or

(ii) the regulations under the Pooled Registered Pension Plans Act.

20 Section 25 (1) is amended

(a) by adding the following definition:

"applied Act" has the same meaning as in the Pooled Registered Pension Plans Act; , and

(b) in the definition of "money" by striking out "or" at the end of paragraph (a.1) and by adding the following paragraphs:

(a.2) a variable payment under the Pooled Registered Pension Plans Act,

(a.3) funds from a pooled registered pension plan account withdrawn under

(i) a provision, authorized by section 47 (2) of the applied Act, of a pooled registered pension plan, or

(ii) the regulations under the Pooled Registered Pension Plans Act, or .

21 Section 25 (2) is amended by striking out "may" and substituting "may," and by repealing paragraph (b) and substituting the following:

(b) for the purpose of attaching any wages, salary or other remuneration, any benefit as defined in the Pension Benefits Standards Act or any variable payment or withdrawal of funds under the Pooled Registered Pension Plans Act, be named as the person directed to pay under an attachment order.

Law and Equity Act

22 Section 51 of the Law and Equity Act, R.S.B.C. 1996, c. 253, is amended

(a) in subsection (1) by adding the following definition:

"member" means a member as defined in section 147.5 (1) of the Income Tax Act (Canada); ,

(b) in subsection (1) by repealing the definition of "registered plan" and substituting the following:

"registered plan" means

(a) a retirement income fund that

(i) was created before, or is created after, this section comes into force, and

(ii) is registered under the Income Tax Act (Canada), or

(b) a pooled registered pension plan that

(i) was created before, or is created after, this paragraph comes into force, and

(ii) is registered under the Income Tax Act (Canada). ,

(c) in subsection (2) by striking out "an annuitant designates a person to receive a benefit payable under the registered plan in the event of the annuitant's death," and substituting "an annuitant or a member, as applicable, designates a person to receive a benefit payable under the registered plan in the event of the annuitant's or member's death,",

(d) in subsection (2) (a) and (c) by striking out "the annuitant," and substituting "the annuitant or member, as applicable,", and

(e) in subsection (3) by striking out "An annuitant" and substituting "An annuitant or a member".

Pension Benefits Standards Act, R.S.B.C. 1996, c. 352

23 Section 1 (1) of the Pension Benefits Standards Act, R.S.B.C. 1996, c. 352, is amended in the definition of ' "pension plan" or "plan" ' by striking out "but does not include a prescribed plan, scheme or arrangement;" and substituting the following:

but does not include

(a) a pooled registered pension plan, as defined in the Pooled Registered Pension Plans Act, or

(b) a prescribed plan, scheme or arrangement; .

Pension Benefits Standards Act, S.B.C. 2012, c. 30

24 Section 1 (1) of the Pension Benefits Standards Act, S.B.C. 2012, c. 30, is amended in the definition of "pension plan" by striking out "but does not include a prescribed plan, scheme or arrangement;" and substituting the following:

but does not include

(a) a pooled registered pension plan, as defined in the Pooled Registered Pension Plans Act, or

(b) a prescribed plan, scheme or arrangement; .

25 Section 155, as it enacts section 145 (2) of the Family Law Act, S.B.C. 2011, c. 25, is amended by striking out "under the Pension Benefits Standards Act," and substituting "under the Pension Benefits Standards Act or the Pooled Registered Pension Plans Act, as applicable,".

26 Section 155, as it enacts section 145 (5) of the Family Law Act, S.B.C. 2011, c. 25, is repealed and the following substituted:

(5) In this section, "benefit" includes

(a) a benefit that has been transferred to a locked-in retirement account or a retirement income arrangement, as those terms are defined in the Pension Benefits Standards Act, or

(b) funds that have been transferred under the Pooled Registered Pension Plans Act to a retirement savings plan of the kind prescribed for the purposes of section 50 (1) (b), 50 (3) (b) or 54 (2) (b) of the applied Act, as that term is defined in the Pooled Registered Pension Plans Act, or to a life annuity of the kind prescribed for the purposes of section 50 (1) (c), 50 (3) (c) or 54 (2) (c) of that applied Act.

27 The following section is added:

Repeal

176.1  Section 136 is repealed.

Wills, Estates and Succession Act

28 Section 1 (1) of the Wills, Estates and Succession Act, S.B.C. 2009, c. 13, is amended in the definition of "benefit plan" by striking out "or" at the end of paragraph (d), by adding "or" at the end of paragraph (e) and by adding the following paragraph:

(f) a pooled registered pension plan as defined in section 147.5 (1) of the Income Tax Act (Canada), .

Amendments to this Act

29 Section 1 is amended

(a) by renumbering the section as section 1 (1),

(b) in subsection (1) by repealing the definition of "spouse" and substituting the following:

"spouse" means a spouse within the meaning of subsection (2); , and

(c) by adding the following subsection:

(2) Persons are spouses for the purposes of this Act on any date on which one of the following applies:

(a) they

(i) are married to each other, and

(ii) have not been living separate and apart from each other for a continuous period longer than 2 years;

(b) they have been living with each other in a marriage-like relationship for a period of at least 2 years immediately preceding the date.

Repeals

30  (1) Section 12 is repealed.

(2) Section 13 (b) is repealed.

Commencement

31  This Act comes into force by regulation of the Lieutenant Governor in Council.

Explanatory Note

This Bill authorizes pooled registered pension plans that can be provided by administrators licensed under the Act to employees and self-employed persons who are within the legislative jurisdiction of British Columbia. It provides for these plans, in part, by incorporating by reference provisions of a federal Act that is for the same purpose in relation to employees and self-employed persons within federal legislative jurisdiction. The Bill also makes consequential amendments to other Acts.