Definitions and interpretation

1 (1)  In this regulation:

"Act" means the Pension Benefits Standards Act;

"actuarial gain" means an improvement in the financial position of a plan attributable to a difference between the actual plan experience and the plan experience anticipated based on the actuarial assumptions underlying the previous review of the plan;

"actuarial valuation report" means an actuarial valuation report referred to in section 9 (3) (b) of the Act;

"conforming letter of credit" means a letter of credit

(a) in respect of which all requirements of section 35.1 (3) (a) to (g) are met, and

(b) which, and the issuing of which, with reference to the circumstances set out in section 35.1, meets all of the requirements of the Income Tax Act (Canada);

"contribution holiday" means a period of time during which contributions to a plan, which would otherwise be required to be remitted in accordance with section 43 (3) of the Act, are not remitted as a result of the existence of surplus assets;

"file" or "filed" means to file with the superintendent under the Act or this regulation;

"fiscal year" means, in relation to a pension plan, the fiscal year of that plan;

"going concern assets" means the value of the assets of a plan, including accrued and receivable investment income but excluding amounts payable, as of the review date, determined on the basis of a going concern valuation;

"going concern liabilities" means the actuarial present value of the accrued benefits of a plan determined on the basis of a going concern valuation;

"going concern valuation" means a valuation, prepared on the basis of actuarial assumptions and methods that are adequate and appropriate and in accordance with accepted actuarial practice, of the assets and liabilities of a plan respecting which no decision has been made to terminate the plan or to wind it up;

"insured plan" means a plan under which all the benefits are insured by a contract with an insurance company that is obligated to pay those benefits;

"letter of credit"  means a letter of credit that is in accordance with the rules of International Standby Practices ISP98 (publication No. 590) of the International Chamber of Commerce, as those rules are amended from time to time, and, if applicable, includes any renewal, amendment, replacement or confirmation of such a letter of credit or the documents evidencing such a renewal, amendment, replacement or confirmation;

"life income fund" means a retirement income fund, within the meaning of the Income Tax Act (Canada), that is registered under that Act;

"normal actuarial cost" means an amount, estimated by a reviewer on the basis of a going concern valuation, to be the cost to a person required to contribute to a plan of the plan's benefits for a fiscal year, but excluding any special payments, determined using the same methods and assumptions that are used to determine the going concern liabilities;

"plan termination basis" means a basis for determining the value of a plan's liabilities that is predicated on the hypothesis of the plan terminating at the review date;

"review" means a review of a plan, as required by section 8 (4) of the Act, that contains one or more defined benefit provisions;

"review date" means the date as of which a review is or was required to be made;

"reviewer" means a person who does a review;

"solvency asset adjustment", in relation to an actuarial valuation report, means the sum of the following:

(a) the amount, positive or negative, by which the value of the solvency assets is adjusted by applying an averaging method that stabilizes short-term fluctuations in the market value of the plan assets calculated over a period of not more than 5 years;

(b) the present value of the special payments referred to in section 35 (3) (b) and (c) that are scheduled for payment over the longer of

(i)  a period of 5 years commencing on the latest review date, or

(ii)  a period commencing on the latest review date and ending on December 31, 2002;

(b.1) money committed under a conforming letter of credit;

(c) in the case of a defined benefit negotiated cost plan, the present value, determined using the actuarial assumptions used in preparing the report, of the excess, if any, in each future year of the amount of anticipated contributions in that year, based on the required contribution rate specified in the applicable collective agreement, over the contributions required in accordance with section 35 (3), as specified in the report, in respect of any years which fall within the longer of

(i)  a period of 5 years commencing on the latest review date, or

(ii)  a period commencing on the latest review date and ending on December 31, 2002;

"solvency assets" means the market value of investments held by a plan plus any cash balances of the plan and accrued or receivable income items of the plan, less any amounts payable by the plan, including actual and reasonable wind up expenses unless the plan provides that the employer pays the wind up expenses;

"solvency deficiency" means an amount, if any, by which the liabilities of a plan, determined on a plan termination basis as of the latest review date, exceed the sum of the solvency assets and the solvency asset adjustment, both determined as of the latest review date;

"solvency ratio" means the fraction obtained by dividing the solvency assets of a pension plan by the liabilities of that plan calculated on a plan termination basis as of the latest review date;

"special payments" means payments referred to in section 35 (3) (b) or (c) or (4);

"trade union" means a trade union as defined in the Labour Relations Code;

"unfunded liability" means an amount, if any, by which a plan's going concern liabilities exceed its going concern assets.

(2)  For the purposes of this regulation, money in a pension plan, an RRSP, a life annuity contract as defined in section 29 (1) or a retirement income fund as defined in section 27 (2) is "locked in" if its withdrawal, surrender or commutation is prohibited by any of the following:

(a) sections 30 (1) or 58 (4) of the Act;

(b) section 29 or 30 of this regulation;

(c) a contract as defined in section 29 or 30 of this regulation;

(d) any legislation of a designated province that is similar to any of those provisions of the Act or this regulation, as the case may be.

(3)  Repealed. [B.C. Reg. 455/99, s. 2.]

(4)  For the purposes of the definition of "transfer deficiency" in section 25 (1), the most recent actuarial valuation report is the most recent report prepared with an effective date within the 4 years before the date of the application for a transfer unless the superintendent, in writing, accepts an alternative report.

(5)  References in this regulation to confirmation, in the context of a letter of credit, mean the assumption, whether by force of law or of contract, of liability by a Canadian banking subsidiary of a foreign bank for any payments under the letter of credit for which that foreign parent bank is liable but does not pay.

[am. B.C. Regs. 455/99, ss. 1 and 2; 197/2008, s. 1; 199/2008, s. 1.]

Interpretation for purposes of the Act

2 (1)  For the purposes of the definition of "designated province" and "initial qualification date" in section 1 (1) of the Act, the designated provinces and their initial qualification dates are as follows:

(a) Ontario, January 1, 1965;

(b) Quebec, January 1, 1966;

(c) Alberta, January 1, 1967;

(d) the Northwest Territories, October 1, 1967;

(e) the Yukon Territory, October 1, 1967;

(f) Saskatchewan, January 1, 1969;

(g) Manitoba, July 1, 1976;

(h) Nova Scotia, January 1, 1977;

(i) Newfoundland, January 1, 1985;

(j) New Brunswick, December 31, 1991;

(k) Nunavut, April 1, 1999.

(2)  For the purposes of section 1 (1) of the Act, "pension plan" or "plan" does not include the following:

(a) an employees profit sharing plan or a deferred profit sharing plan as defined in the Income Tax Act (Canada);

(b) an arrangement to provide a retiring allowance as defined in the Income Tax Act (Canada);

(c) a defined benefit plan or defined contribution plan whose only members are "specified individuals" as defined in the regulations under the Income Tax Act (Canada), subject to the condition that sections 24 (2), 26 to 28, 30 and 33 to 40 of the Act apply;

(d) a supplemental pension plan under which the employer is, will be or, in the case of a terminated plan, was, required to make contributions on behalf of members if, under the supplemental pension plan, the members are entitled to benefits solely in excess of the maximum benefit or contribution limit under the Income Tax Act (Canada);

(e) benefits insured under a contract issued under the Government Annuities Act (Canada);

(f) a RRSP plan.

(3)  For the purposes of the definition of "surplus assets" in section 1 (1) of the Act, the prescribed assets and liabilities of a pension plan are as follows:

(a) in the case of a defined benefit plan that is being wound up, the assets and liabilities as stated in the actuarial valuation report as of the date of the termination of the plan or such other date that is accepted in writing by the superintendent;

(b) in the case of a plan that is not being wound up, its going concern assets and going concern liabilities as stated in the most recent actuarial valuation report filed.

(4)  and (5) Repealed. [B.C. Reg. 455/99, s. 3.]

[am. B.C. Regs. 31/98, s. 1; 455/99, s. 3.]

Exemptions

3 (1)  Forfeited employer contributions in a defined contribution plan and all earnings of the plan reasonably attributable thereto are exempt from the definition of "surplus assets" in section 1 (1) of the Act if the plan provides for

(a) the return of the contributions to the employer,

(b) the reallocation of the contributions to members of the plan, or

(c) the accounting of the contributions on a basis that is a combination of paragraphs (a) and (b).

(2)  If

(a) a plan provides a benefit or allocates surplus assets in respect of a person entitled to a benefit and the benefit, or the sum of the benefit and the surplus asset allocation, is in excess of the maximum benefit or contribution limit that could be applicable to the plan under the Income Tax Act (Canada), or

(b) the commuted value of a benefit or the commuted value of the pension payable to the surviving spouse is in excess of the maximum limit that can be transferred to another plan or to an RRSP under the Income Tax Act (Canada),

then the amount of that benefit, surplus asset allocation or commuted value that is in excess of that maximum limit is exempt from sections 30 (1) and 58 (4) of the Act and must not be treated as locked in for the purposes of this regulation.

(3)  If a member is temporarily employed by an employer which has a separate pension plan and the 2 pension plans have made reciprocal agreement to collect and remit pension contributions and the contributions have been remitted, the plan making the contributions is not in conflict with section 30 (1) of the Act.

(4)  If a member of a plan is on an approved leave of absence or is receiving disability benefits, including benefits provided under the Workers Compensation Act, the plan is exempt from applying section 30 (4), (5) and (6) of the Act to that member and the member's contributions continue to be locked in.

(5)  If a plan gives a member the right to elect to purchase a deferred pension under a defined contribution provision before his or her termination of membership, death, pension commencement or the termination of the plan, the commuted value of that deferred pension is exempt from sections 33 and 58 (4) of the Act unless the plan provides otherwise.

(6)  If an additional amount of pension is payable from pension commencement and the plan provides for that additional amount

(a) to cease at the date when a pension becomes available or when receipt of the pension occurs under the Canada Pension Plan (Canada) or the Quebec Pension Plan (Quebec), or

(b) to cease no later than the end of the month immediately following the month in which the member or former member attains age 65,

then that additional amount of pension is exempt from section 35 of the Act.

(7)  A defined benefit plan is exempt from section 32 of the Act if the defined benefit plan provides for annual indexation of a deferred pension benefit, up to the day when that deferred pension benefit commences to be paid, on the basis of

(a) increases of at least 75% of the annual increase in the consumer price index, minus one per cent, or

(b) any other formula that, in the superintendent's opinion, would provide protection that on the average would be comparable to that described in paragraph (a),

subject to the conditions that

(c) the actuarial value of the pension benefit, determined on a going concern actuarial valuation basis, must not be less than 100% of the member's own contributions with interest, and

(d) an amount calculated under paragraph (a) is not less than zero.

(8)  For the purposes of subsection (7) (a),

(a)  "consumer price index" means the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act (Canada),

(b) the annual increase of the consumer price index must be calculated by comparison between

(i)  2 consecutive and reasonably current 12 month periods, or

(ii)  the most recent month for which data is available and the same month one year earlier, and

(c) the method selected under paragraph (b) (i) or (ii) to calculate the annual increase of the index must remain the same.

(9)  A multi-employer plan is exempt from the requirement under section 69 of the Act to establish a pension advisory committee if

(a) the multi-employer plan is a plan established, or maintained by contributions required, under a collective agreement within the meaning of the Labour Relations Code, and

(b) at least one member or former member of the multi-employer plan is on the board of trustees constituted to administer the plan.

(10)  A pension plan to which an enactment in Column 1 of Schedule 1 applies is exempt from a provision of the Act or this regulation as set out opposite in Column 2.

(10.1)  A multi-employer plan to which Schedule 1.1 applies is exempt from the special payment requirements of section 35 (3) (c), to the extent and on the conditions, if applicable, specified in that Schedule.

(11)  The following pension plans are exempt from the definition of "multi-employer plan" in section 1 of the Act:

(a) University of British Columbia Staff Pension Plan;

(b) University of British Columbia Faculty Pension Plan;

(c) Council of Forest Industries Pension Plan;

(d) BC Gas Utility Ltd. Pension Plan for IBEW and OPEIU Members;

(e) Pension Plan for the Regular and Seasonal Employees of Canadian Fishing Company;

(f) British Columbia Packers Limited and Subsidiary Companies Employees Retirement Plan;

(g) the Pension Plan of the United Way of the Lower Mainland;

(h) Salzgitter Trade, Inc. Retirement Income Plan;

(i) West Kootenay Power Ltd. - IBEW Pension Plan - 1992.

(12)  The Vancouver Grizzlies Players' Pension Plan is exempt from the application of the Act and regulations.

(13)  If a pension plan provides payments of pension benefits similar to the method of payments available from a life income fund, those payments are exempt from the application of section 30 (1) of the Act provided the plan complies with the requirements of section 30.1 of this regulation.

(14)  The FortisBC IBEW Pension Plan is exempt from the application of section 29 (2) of the Act on condition that the Plan is amended to provide that

(a) subject to any regulations made with reference to section 45 (1) of the Act, the pension payable under section 28 of the Act, other than the portion accruing from additional voluntary contributions, must not be less than the pension payable under subsection 29 (1) of the Act, with the exception that it is not required to provide for annual indexation of the deferred or immediate pension benefit,

(b) the excess employee contributions determined in accordance with section 32 of the Act must be payable on termination of the plan,

(c) each future valuation must include an estimate of the expected rates of indexing that the plan would provide if the plan were terminated on the date of the valuation,

(d) immediate disclosure must be made to members and former members of the plan, and similar disclosures be made annually thereafter, concerning the change in benefits that will result from this exemption from the application of section 29 (2) of the Act in the event that the plan terminates including estimates of the extent that indexing would be provided on termination of the plan,

(e) copies of the disclosures described in paragraph (d) must be forwarded to the superintendent as soon as practicable, and

(f) an amendment to the plan can only be made with the prior approval of the superintendent if the solvency ratio of the plan will fall below 90% on the making of the amendment.

[am. B.C. Regs. 399/97; 30/98; 31/98, s. 2; 163/98; 455/99, s. 4; 131/2004, s. 1; 310/2005; 199/2008, s. 2.]

Attachment of conditions to consents and approvals

3.1 If a provision of this regulation empowers the superintendent to give a consent or approval, the superintendent may, if the consent or approval is given in writing, attach any conditions in and to that consent or approval that the superintendent considers appropriate in the circumstances.

[en. B.C. Reg. 199/2008, s. 3.]

Filing of returns

4 (1)  A return referred to in section 9 (3) (a) of the Act must

(a) be filed within 180 days after the end of each fiscal year, and, in addition, if a plan is being wound up under section 54 of the Act, be filed within 60 days after the commencement of the winding up of the plan in respect of that portion of the fiscal year up to the date of termination, and

(b) be accompanied by the fee required by section 75 of the Act.

(2)  Repealed. [B.C. Reg. 455/99, s. 5.]

(3)  For the purpose of section 9 (3) (a) of the Act, if a plan has been terminated with a solvency deficiency and the employer is not insolvent, annual information returns must continue to be filed within 180 days of successive fiscal year ends until the solvency deficiency has been eliminated.

(4)  For the purpose of section 9 (7) (a) of the Act,

(a) the prescribed amount of plan assets is $10 million using the market value method to value the assets as of the fiscal year end, and

(b) if a financial statement is required to be filed under that section it must be filed within 270 days after the end of the fiscal year for which it is required.

(5)  The audited financial statements referred to in section 9 (7) of the Act must be prepared in accordance with the accounting standards contained in the Handbook of the Canadian Institute of Chartered Accountants, as amended from time to time, except that those audited financial statements need not include information respecting pension benefit obligations.

[am. B.C. Regs. 455/99, s. 5; 550/2004.]

Notice requirements

5 (1)  Any statement, information or notice required by section 11, 12, 13, 14, 15, 16, 17, 36 (3) or (5) or 42 (2) may, without limiting any other effective mode of service, be sent by ordinary mail to the last known postal address of the member, former member or other person.

(2)  If a statement, information or notice is returned because the member, former member or other person is not at his or her last known postal address, the requirement that an administrator provide the statement, information or notice required by section 11, 12, 13, 14, 15, 16, 17, 36 (3) or (5) or 42 (2) does not apply to that member, former member or other person unless a subsequent written request is received for the statement, information or notice.

Review of plan containing defined benefit provision

6 (1)  This section and section 7 apply only to pension plans that contain one or more defined benefit provisions.

(2)  Every administrator of a pension plan must have the plan reviewed as follows:

(a) in the case of a new plan, as of the effective date of the plan;

(b) if the superintendent sends a notice to the administrator requesting that a review be made of the plan, as of the date specified in the notice;

(c) subject to paragraphs (a) and (b) and subsection (4), at intervals not exceeding 3 fiscal years after the immediately preceding review date, with the subsequent review date being the fiscal year end;

(d) in the case of a pension plan which is terminated under the conditions referred to in section 51 (2) of the Act, as of the date of termination, and annually after that until the solvency deficiency is shown to have been retired.

(3)  The review of the plan

(a) must be made by a Fellow of the Canadian Institute of Actuaries, or

(b) in the case of an insured plan, may be made by a person who is authorized to prepare or sign an actuarial valuation report under section 7 (1).

(4)  If an amendment to a plan affects the cost of benefits provided by the plan, creates an unfunded liability or otherwise affects the solvency or funding of the plan, the administrator must have the plan reviewed or the latest review revised as of the date the amendment is made.

(5)  If the plan is reviewed under subsection (4), the review must be done as of the fiscal year end immediately preceding, or coincident with, the effective date of the amendment, and be updated to the effective date of the amendment.

(6)  Subsection (4) does not apply if a Fellow of the Canadian Institute of Actuaries certifies that no change in contributions to the plan is required before the next review date.

[am. B.C. Reg. 455/99, s. 6.]

Actuarial valuation report or cost certificate

7 (1)  For the purposes of section 9 (3) (b) of the Act, an actuarial valuation report respecting an insured plan may be prepared or signed, as the case may be, by any person so authorized by the insurance company.

(2)  An actuarial valuation report resulting from a review must be filed as follows:

(a) in the case of a new plan, not later than 120 days after the establishment of the plan;

(b) in the case of a review date occurring after the effective date of a plan, not later than 270 days after the review date;

(c) if a review of a plan is made under section 6 (4), not later than 180 days after the date the amendment is made.

(3)  An actuarial valuation report resulting from a review must be prepared in a manner that is consistent with the accepted standards of practice for the preparation of actuarial valuation reports in connection with pension plans issued by the Canadian Institute of Actuaries, and the reviewer must so certify and, subject to this section, must include the following as may be applicable:

(a) the estimated total dollar cost of benefits for all members, showing separately the employer contributions and the member contributions relating to the normal actuarial cost,

(i)  for the fiscal year following the review date if that date falls on the last day of a fiscal year, or

(ii)  for the fiscal year in which the review date falls if that date falls on any other day;

(b) the rules for computing normal actuarial cost and for allocating that cost between the employer and the members in respect of years of employment or years of membership credited under the plan in the period covered by the report or certificate;

(c) the date of establishment of any unfunded liability, the unamortized balance of any unfunded liability, the special payments to be made to amortize that liability and the date at which that liability will be amortized;

(d) either

(i)  a statement that in the opinion of the reviewer there is no solvency deficiency and the actuarial basis underlying the reviewer's opinion, or

(ii)  the date of establishment of any solvency deficiency, the unamortized balance of any solvency deficiency, the special payments to be made to amortize that solvency deficiency and the value of the assets and liabilities used to determine that solvency deficiency, together with the assumptions and valuation methods used to calculate the liabilities and the date at which the solvency deficiency will be amortized;

(e) either

(i)  a statement that, in the opinion of the reviewer, the solvency ratio is not less than 1 and the actuarial basis underlying the reviewer's opinion, or

(ii)  if the solvency ratio is less than 1, the solvency ratio;

(f) if the plan has an indexation provision, whether and to what extent

(i)  liability for the future cost of the indexation provision has been included in the determination of any going concern unfunded liability, or

(ii)  the cost for the indexation provision is included in the normal cost;

(g) the surplus assets of the plan and, if known to the reviewer, a description of how they will be utilized;

(h) the value of the assets of the plan on a market basis, the value of the going concern assets and a description of the valuation method used to determine the going concern assets;

(i) the value of the going concern liabilities, and a description of the assumptions and valuation methods used to determine those values, with respect to each of the following:

(i)  members;

(ii)  as a single grouping

(A)  former members who have not commenced to receive their pensions under the plan, and

(B)  other persons who have a future entitlement to receive payments from the plan;

(iii)  as a single grouping

(A)  former members receiving their pensions, and

(B)  other persons who are receiving payments from the plan;

(j) in the case of a review occurring after the effective date of the plan, a reconciliation of the results of the review and identification of the sources ofactuarial gains and losses due to plan experience since the immediately previous review date;

(k) in the case of a defined benefit negotiated cost plan where employer contributions are based on a fixed rate of dollars and portions of dollars per hour of employment

(i)  the respective average rate per hour per member that must be contributed by the employer and the member in order to provide the benefits under the plan,

(ii)  a breakdown of the rate specified under subparagraph (i), stating the rate per hour attributable to the plan's normal actuarial cost and the amortization of an unfunded liability or solvency deficiency and the rate per hour that is to be applied as part of a contingency reserve,

(iii)  the average number of hours of employment per member per fiscal year that has been assumed for the purposes of the review, and

(iv)  solvency liabilities as determined on the basis of the benefits structure set out in the plan at the date of the valuation, without taking into consideration any provision in the plan or in section 59 (3) of the Act which may require the reduction of the benefits structure;

(l) any other information that the superintendent requires to be able to determine whether the plan will meet the solvency and funding tests.

(4)  to (6) Repealed. [B.C. Reg. 455/99, s. 7.]

(7)  If a going concern valuation is made in respect of a plan that provides a pension based on a rate of salary during a period immediately before the date of pension commencement or on average rates of salary over a specified and limited period, a projection of the current salary of each member shall be used to estimate the salary on which the pension payable at pension commencement will be based.

(8)  If the actuarial method used in a review may not reveal an unfunded liability or solvency deficiency, the reviewer must perform supplementary calculations to show that the solvency and funding tests are being met and the reviewer must so certify.

(9)  If all the benefits under an insured plan established before the initial qualification date are funded by level premiums that do not extend beyond the pensionable age for each member or former member, an actuarial valuation report or cost certificate may confirm the adequacy of the premiums to provide for the payment of all benefits instead of providing the information required by subsection (3).

(10)  If a person who is authorized to prepare or sign an actuarial valuation report or cost certificates respecting an insured plan under subsection (1) certifies that

(a) all benefits relating to a defined benefit provision of the plan are insured by a contract with an insurance company under which that company is obligated to pay those benefits, and

(b) all future benefits will accrue under a defined contribution provision of the plan,

the administrator is not required to file any further actuarial valuation reports or cost certificates until the plan again provides for benefits to accrue under a defined benefit provision.

[am. B.C. Reg. 455/99, s. 7.]

Collective agreement or arbitration award

8 For the purposes of section 9 (3) (c) of the Act, the provisions of a collective agreement or arbitration award must be filed within 30 days following the date of a written request made by the superintendent.

Time for disclosure of information respecting plans

9 (1)  For the purposes of section 10 (1) (a) of the Act, every administrator of a pension plan must provide an explanation or summary of the plan, and of the relevant entitlements and obligations under the plan, as follows:

(a) in the case of a new plan, to each member within 120 days after the establishment of the plan;

(b) in the case of an existing multi-employer plan or negotiated cost plan, to each member

(i)  at the same time as the first annual statement is provided to the member under section 11, or

(ii)  within 30 days after a request made by the member for the explanation or summary is received by the administrator,

whichever occurs first;

(c) in the case of any other existing plan, to each employee referred to in section 10 (1) (a) of the Act,

(i)  at least 30 days before the employee first becomes eligible or is required to be a member of that plan, or

(ii)  on or before the employee's date of employment if the employee becomes eligible or is required to be a member at or less than 30 days after the date of his or her employment.

(2)  The administrator must ensure that members are provided with an explanation or summary of a material amendment to the plan, and of the relevant entitlements and obligations under that amendment, as follows:

(a) in the case of a multi-employer plan or negotiated cost plan referred to in subsection (1) (b),

(i)  at the same time as the next annual statement is provided to the member under section 11, or

(ii)  within 30 days after a request made by the member for the explanation or summary is received by the administrator,

whichever occurs first;

(b) in any other case, within 90 days after the registration of the amendment.

Additional explanation or summary requirements

10 (1)  For the purposes of section 10 (1) (a) (ii) of the Act, every administrator must provide further information with the relevant explanation or summary referred to in section 9 (1) as follows:

(a) if the plan requires interest to be paid on member contributions or additional voluntary contributions under section 31 of the Act,

(i)  a description of the method used to determine the application of interest on member contributions or additional voluntary contributions, and

(ii)  if the method under subparagraph (i) results in a negative rate of interest, a statement of that fact;

(b) a statement setting out the treatment of any surplus assets during the continuation of the plan and on wind up of the plan;

(c) in the case of a pension plan that contains a defined benefit provision, a statement that if, on wind up of the plan, the assets of the plan are not sufficient to meet the liabilities of the plan, pension benefits may be reduced;

(d) if the plan provides for the conversion of optional ancillary contributions to optional ancillary benefits, a statement setting out

(i)  the various optional ancillary benefit choices available on conversion,

(ii)  a summary of the method used, as set out in the plan, to convert the optional ancillary contributions,

(iii)  the terms and conditions for making an election for conversion, and

(iv)  the risk of forfeiture if there are insufficient optional ancillary benefits available at the time of conversion to completely use all the optional ancillary contributions.

(2)  For the purposes of section 10 (1) (a) (ii) of the Act, every administrator must provide the following information annually;

(a) a brief description of the investment policy of the plan;

(b) the assets of the plan as of the most recent fiscal year end.

[am. B.C. Reg. 455/99, s. 8.]

Annual statement

11 For the purposes of section 10 (1) (b) of the Act, every administrator must provide to each member, within 180 days after the end of each fiscal year, an annual statement for the fiscal year just ended containing or accompanied by the following information so far as applicable to the member:

(a) the name of the pension plan and its Provincial registration number;

(b) the member's name and date of birth;

(c) the period covered by the statement;

(d) the date on which the member joined the plan and, except for multi-employer pension plans, the date on which the member commenced employment;

(e) the date or dates on which the member became fully vested or will become fully vested;

(f) the member's normal retirement date under the plan as required by section 38 (1) of the Act;

(g) the earliest date the member will be eligible to receive

(i)  an unreduced pension, and

(ii)  a reduced pension;

(h) the name of the person recorded as the member's spouse;

(i) if the member does not have a spouse or the spouse has waived the spousal entitlement, any person designated by the member as a beneficiary for purposes of the pre-retirement survivor benefit under section 34 (1) (b) (i) of the Act;

(j) in respect of contributions that have been transferred from another plan and applied under a defined benefit provision and where a period of employment has not been credited for the purposes of determining benefits, the amount of pension that will be provided by the plan by those contributions;

(k) the amount of required contributions, if any, made to the pension fund by a member during the period covered by the statement;

(l) the accumulated amount of required contributions, if any, made to the pension fund by the member including interest credited to those contributions to the end of the period covered by the statement;

(m) the amount of any additional voluntary contributions made by the member to the pension fund during the period covered by the statement;

(n) the accumulated amount of any additional voluntary contributions made by the member to the pension fund, including interest credited to such contributions, to the end of the period covered by the statement;

(o) in the case of a plan providing defined contribution benefits,

(i)  the amount of employer contributions allocated to the member during the period covered by the statement,

(ii)  the accumulated amount of employer contributions, including interest credited to those contributions, allocated to the member to the end of the period covered by the statement, and

(iii)  the rate of interest or capital appreciation applied to required contributions and additional voluntary contributions during the period covered by the statement or the manner in which interest was applied;

(p) in the case of a defined benefit plan,

(i)  the member's years of employment or years of membership for the purpose of the calculation of pension benefits determined as of the end of the period covered by the statement,

(ii)  the annual amount of pension benefit payable at normal retirement date accrued at the end of the period covered by the statement,

(iii)  information as to whether the pension referred to in subparagraph (ii) is reduced by an amount of pension payable under the Canada Pension Plan (Canada) or the Quebec Pension Plan (Quebec), and

(iv)  information as to whether the pension referred to in subparagraph (ii) is reduced by an amount of benefit payable under the Old Age Security Act (Canada) where this is an option provided for by the plan;

(q) if the solvency ratio as of the latest review date is less than 1,

(i)  the solvency ratio expressed as a percentage,

(ii)  a statement that the plan's assets are not sufficient to cover benefits, as determined on a plan termination basis, as of the latest review date,

(iii)  if applicable, confirmation that special payments are being made to make the plan solvent in accordance with the Act and this regulation, and

(iv)  if applicable, information to members of any exemption from solvency requirements or special payments, and any conditions attached to the exemption;

(r) a statement of the right under section 10 (4) and (5) of the Act of any person entitled to a benefit, or the spouse or designated beneficiary or agent of the person entitled to a benefit, to examine documents;

(s) if the plan provides for the conversion of optional ancillary contributions to optional ancillary benefits, a statement setting out

(i)  the amount of any optional ancillary contributions and additional voluntary contributions made by the member during the year, including accumulated interest on those contributions to date,

(ii)  the kind of benefit or benefits chosen by the member for any options already exercised,

(iii)  the amount of any optional ancillary contributions used during the period covered by the statement, the amount used to date as of the fiscal year end, and the balance remaining in the member's optional ancillary contributions account,

(iv)  an estimate of the maximum amount of optional ancillary contributions that can be made by the member in the following year, and

(v)  any limits under the Income Tax Act (Canada).

[am. B.C. Reg. 455/99, s. 9.]

Statement on termination of membership

12 (1)  For the purposes of section 10 (1) (c) of the Act, every administrator must provide to a former member, within 90 days after the termination of membership, a statement containing the following information so far as applicable to the former member:

(a) the name of the pension plan and its Provincial registration number;

(b) the member's name and date of birth;

(c) the date on which the member joined the pension plan;

(d) the date the member ceased membership in the plan;

(e) whether the member was vested or not vested;

(f) in respect of contributions that have been transferred from another plan and applied under a defined benefit provision and where a period of employment has not been credited for the purposes of determining benefits, the amount of pension that will be provided by the plan by those contributions;

(g) the amount of required contributions, if any, made to the pension fund by the member from the end of the period covered by the preceding annual statement to the date of termination of membership;

(h) the accumulated amount of required contributions, if any, made to the pension fund by the member including, in the case of a plan providing defined benefits, interest credited to those contributions to the date of termination of membership;

(i) the amount of any additional voluntary contributions made by the member to the pension fund from the end of the period covered by the preceding annual statement to the date of termination of membership;

(j) the accumulated amount of any additional voluntary contributions made by the member to the pension fund, including interest credited to such contributions, to the date of termination of membership;

(k) the member's normal retirement date under the plan as required by section 38 (1) of the Act;

(l) the name of the person recorded as the member's spouse;

(m) if the member does not have a spouse or the spouse has waived the spousal entitlement, any person designated by the member as a beneficiary for purposes of the pre-retirement survivor benefit under section 34 (1) (b) (i) of the Act;

(n) in the case of a defined contribution provision,

(i)  the amount of employer contributions allocated to the member from the end of the period covered by the preceding annual statement to the date of termination of membership,

(ii)  the accumulated amount of employer contributions, including interest credited to those contributions, allocated to the member to the date of termination of membership, and

(iii)  the rate of interest or capital appreciation applied to required contributions and additional voluntary contributions to the date of termination of membership or the manner in which interest was applied;

(o) in the case of a defined benefit provision,

(i)  the member's years of employment or years of membership credited under the plan for the purpose of the calculation of pension benefits determined as of the date of termination of membership,

(ii)  if an entitlement to a pension has vested in the member, the annual amount of pension benefit payable at normal retirement date accrued at the date of termination of membership,

(iii)  information as to whether the pension referred to in subparagraph (ii) is reduced by an amount of pension payable under the Canada Pension Plan (Canada) or the Quebec Pension Plan (Quebec), and

(iv)  information as to whether the pension referred to in subparagraph (ii) is reduced by an amount of benefit payable under the Old Age Security Act (Canada) where this is an option provided for by the plan;

(p) the commuted value of the pension referred to in paragraph (f) and, if applicable, paragraph (o) (ii), to members or former members under 55 years of age or the amount of a lump sum benefit on termination of employment if this amount exceeds the commuted value of the pension;

(q) the amount of the member's excess contributions referred to in section 32 (2) of the Act;

(r) an explanation of

(i)  the options available and the deadlines for choosing any option available, and

(ii)  the consequences, if any, of not meeting the deadlines;

(s) if the member is eligible to choose a deferred pension,

(i)  the benefit payable on death before and after pension commencement, including an explanation of the joint pension form and the spouse's waiver option under section 35 (4) of the Act,

(ii)  optional early, disability and postponed pension commencement dates available, and an explanation of any adjustments to the amount of pension in each case,

(iii)  any indexation provisions applicable to the deferred pension, and

(iv)  the name and address of the person to whom application must be made to start receiving the pension and when the application must be made;

(t) if the member is vested and there is a transfer deficiency, as defined in section 25 (1),

(i)  a statement that a transfer deficiency exists and that it may not be transferred until it has been funded in accordance with the solvency tests,

(ii)  the amount of the transfer deficiency,

(iii)  the latest date at which it will be transferred,

(iv)  a statement that interest will be payable on the untransferred portion up to the date it is transferred, and

(v)  the rate of interest that is to be applied to the transfer deficiency until transferred;

(u) a statement of the right under section 10 (4) and (5) of the Act of any person entitled to a benefit, or the spouse or any designated beneficiary or agent of the person entitled to a benefit, to examine documents;

(v) if the plan provides for the conversion of optional ancillary contributions to optional ancillary benefits, a statement setting out

(i)  the amount of any balance in the member's optional ancillary contributions account,

(ii)  the current cost to the member of the various options available,

(iii)  the maximum amount of any optional ancillary contributions that can be converted to the various options available, and

(iv)  any limits under the Income Tax Act (Canada) on the use of the various options available.

(2)  Subsection (1) does not apply to a former member if a statement has been provided to the former member under section 14 (1) in respect of his or her termination of membership.

[am. B.C. Reg. 455/99, s. 10.]

Retirement statement

13 (1)  For the purposes of section 10 (1) (d) of the Act, every administrator must, within the one year period before the commencement of a pension and within 30 days after receiving a completed application in the form required by the administrator for commencement of the pension, provide to a member or former member who is about to commence receiving a pension a statement containing the following information as applicable to the member or former member:

(a) the name of the pension plan and its Provincial registration number;

(b) the name and date of birth of the member;

(c) the date on which the member joined the plan and the years of employment or years of membership credited under the plan for purposes of calculating the pension benefit;

(d) the date when pension payments are to commence;

(e) in the case of a defined contribution provision,

(i)  current information referred to in section 11 (k) to (o), and

(ii)  the amount of pension that will be provided by the contributions referred to in section 11 (k) to (o);

(f) in the case of a defined benefit provision,

(i)  current information referred to in section 11 (j) to (p), and

(ii)  the amount of the member's excess contributions referred to in section 32 (2) of the Act;

(g) an explanation of the normal and optional forms of pension available, the procedure for choosing and the amounts of the normal and optional forms;

(h) if the member or former member has a spouse,

(i)  the spouse's name and date of birth,

(ii)  an explanation of the joint pension form and the spouse's waiver option under section 35 of the Act, and

(iii)  the amount of pension payable

(A)  while both are alive, and

(B)  to each on the death of the other;

(i) if the member or former member has additional voluntary contributions, the options available, including the amount of pension that will be provided if the contributions are left in the plan;

(j) if the member or former member has excess contributions referred to in section 32 (2) of the Act, the options available under that section;

(k) the basis, if any, for future indexation;

(l) the deadline for choosing any option available and the consequences, if any, of not meeting the deadline;

(m) a statement of the right under section 10 (4) and (5) of the Act of any person entitled to a benefit, or the spouse or any designated beneficiary or agent of the person entitled to a benefit, to examine documents.

(2)  In subsection (1) "current information" means, to the extent applicable, information in respect of the most recently completed fiscal year and further extending to cover the period between then and pension commencement.

Transfer statement for multi-employer plans

14 (1)  For the purposes of section 10 (1) (e) of the Act, every administrator of a multi-employer plan must provide to a member who wishes to make a transfer under section 33 (3) or (4) of the Act, within 90 days after receiving a completed application in the form required by the administrator for the transfer, a statement containing the following information as applicable to the member:

(a) the name of the pension plan and its Provincial registration number;

(b) the member's name and date of birth;

(c) the date on which the member joined the pension plan;

(d) current information referred to in section 11 (j) to (p);

(e) to the extent that section 11 (j) and (p) apply, the commuted values of the respective pensions and excess contributions, if any, referred to in section 32 (2) of the Act;

(f) an explanation of

(i)  the options available for excess contributions under section 32 (2) of the Act and for additional voluntary contributions,

(ii)  the deadlines for choosing any option available, and

(iii)  the consequences, if any, of not meeting the deadlines;

(g) an explanation of

(i)  the options available for the accrued pension under section 33 (1) and (2) of the Act,

(ii)  the deadlines for choosing any option available, and

(iii)  the consequences, if any, of not meeting the deadlines;

(h) the information required by section 12 (1) (s) and (t);

(i) a statement of the right under section 10 (4) and (5) of the Act of any person entitled to a benefit, or the spouse or any designated beneficiary or agent of the person entitled to a benefit, to examine documents.

(2)  In subsection (1) "current information" means, to the extent applicable, information in respect of the most recently completed fiscal year and further extending to cover the period between then and the date of the receipt of the application for the transfer.

Statement on death before pension commencement

15 (1)  For the purposes of section 10 (1) (f) of the Act, every administrator must provide to the surviving spouse, designated beneficiary or personal representative of the estate of a deceased member or former member who died before pension commencement, within 30 days after proof of the death is provided to the administrator, a statement containing the following information so far as applicable to the deceased member or former member:

(a) the name of the pension plan and its Provincial registration number;

(b) the name of the deceased person;

(b.1) the date on which the deceased joined the plan and, except for multi-employer pension plans, the date on which the deceased commenced employment;

(c) current information referred to in section 11 (h) to (q);

(d) if the deceased had no spouse or a pension had not vested in the deceased at the time of death, the total lump sum available for refund and an explanation of any other benefits or options available under the plan;

(e) if the deceased was a member who had a spouse at the time of death and a pension had vested in the member,

(i)  Repealed. [B.C. Reg. 455/99, s. 11.]

(ii)  an explanation of the benefits and options available under section 34 of the Act and any others provided by the plan, and

(iii)  the deadline for choosing any option available and the consequences, if any, of not meeting the deadline;

(f) if applicable, the information required by section 12 (1) (q);

(f.1) if a pension had vested in the deceased, the information required by section 12 (1) (t);

(g) a statement of the right, under section 10 (4) and (5) of the Act, of any person entitled to a benefit, or the spouse or any designated beneficiary or agent of the person entitled to a benefit, to examine documents.

(2)  In subsection (1), "current information" means, to the extent applicable, information in respect of the most recently completed fiscal year and further extending to cover the period between then and the date of the administrator's receiving notice of the death.

[am. B.C. Reg. 455/99, s. 11.]

Calculation data

16 An administrator must provide the data referred to in section 10 (1) (g) of the Act within 30 days after receiving a request for it.

Termination or winding up statement

17 For the purposes of section 10 (1) (h) of the Act, every administrator must provide to each member and former member, within 30 days after the approval by the superintendent of the report filed under section 54 (3) or (4) of the Act, the following information as applicable to the member or former member:

(a) the information referred to in section 12 or 13;

(b) if benefits are to be reduced, the reasons for the reduction and a description of the method of reduction;

(c) if there are surplus assets, how the surplus assets will be utilized.

Examination and provision of copies

18 For the purposes of section 10 (4) (g) of the Act, every administrator must provide, to a person entitled, access to the following documents:

(a) the most recent explanation or summary provided under section 10 (1) (a) of the Act;

(b) the report under section 54 (3) of the Act, except any portions of the report stating the benefits of individual members or former members.

Copy of plan and certification requirements

19 (1)  If there are amendments to a pension plan or any other document referred to in section 14 (2) (a) of the Act, the superintendent may, in writing, require that an administrator provide, within 180 days of the superintendent's request, a certified consolidated copy of the plan or document incorporating all amendments to date, and the administrator must comply with that requirement.

(2)  For the purposes of sections 14 (2) (c) and 15 (1) of the Act, every administrator must complete the prescribed form of certification set out in Form 1 of Schedule 2.

[am. B.C. Reg. 31/98, s. 3.]

Benefit and contribution formulas

20 (1)  For the purposes of section 24 (1) (h) of the Act, the formulas used to determine benefits, member and employer contributions, and the allocation of contributions under a pension plan, must comply with this section.

(2)  The formulas used to determine benefits under defined benefit provisions, and member contributions relating to defined benefit provisions of a plan, must be uniform for

(a) each year of future employment, and

(b) each member in a class prescribed in section 23(1),

except to the extent that the superintendent approves variations in the formula that the superintendent considers reasonable.

(3)  The formula used to determine the pension under a defined benefit provision may not be based on a member's age on joining the plan.

(4)  The formula used to determine contributions under a defined contribution plan, or under a defined contribution provision of a plan, must be uniform unless the superintendent approves variations in the formula based on age or length of service, or both age and length of service, or based on some other criteria that the superintendent considers reasonable.

(5)  If a formula relating to a defined contribution provision in subsection (4) provides for contributions on a basis other than

(a) a percentage of a member's remuneration, or

(b) a fixed dollar amount in respect of each member,

the formula for allocating those contributions must be designed to provide reasonably uniform benefits for each year of plan membership.

(6)  Despite subsection (2) and if the plan so provides or is amended to provide, a temporary program offering enhanced benefits as an incentive for early retirement may be offered if an appropriate funding arrangement is made.

[am. B.C. Reg. 455/99, s. 12.]

Commuted value

21 (1)  The commuted value of a benefit determined under a defined benefit provision must

(a) be determined in accordance with the recommendations for the computation of transfer values of pensions issued by the Canadian Institute of Actuaries, as amended from time to time, and

(b) be adjusted, in respect of the period between the date determined under paragraph (a) and a date not earlier than the end of the month immediately preceding the payment or transfer of the commuted value out of the plan, for interest at a rate not less than the rate of interest that was assumed in determining the commuted value over the same period of time.

(2)  The period between the date as of which the commuted value was determined under subsection (1) and the date of the payment or transfer of the commuted value out of the plan must not exceed 180 days.

(3)  If at the date of computation the former member has an unconditional entitlement to optional forms of pension or to optional commencement dates, the option that has the greatest value must be used to determine the commuted value.

Pensioner recommencing employment

22 (1)  A pension plan may provide, in respect of a former member who has commenced receiving a pension and who recommences work or service in employment covered by that plan, one of the following:

(a) payment of the pension is to continue and the former member is not eligible to become a member;

(b) payment of the pension is to be suspended and the former member is to become a member with effect from the date of commencement of the subsequent employment;

(c) the former member may make an election that paragraph (a) or (b) applies.

(2)  The plan may make the provisions referred to in subsection (1) applicable under differing circumstances.

(3)  If the plan provides for the suspension of payment of the pension, the pension payable at the commencement of the member's subsequent pension must be an amount not less than the sum of the amount of the pension payable in respect of the member's subsequent employment and

(a) the amount of the pension that would have been payable had the initial pension commencement occurred at pensionable age, reduced in accordance with the terms of the plan as they were at the initial pension commencement, if the initial pension commencement occurred before pensionable age, or

(b) the amount of pension payable at the initial pension commencement if the initial pension commencement occurred at or after pensionable age.

(4)  The calculation of a reduction under subsection (3) (a) must be based on an assumed age calculated as follows:

where

AAFC = assumed age for calculation,

ASPC = age at subsequent pension commencement,

D1 = date of initial pension commencement, and

ED = effective date of pension suspension.

(5)  The ages and periods used under subsection (4) are for years and any portion of a year.

(6)  Notwithstanding subsections (3) and (4), the plan may provide that the amount of pension that was payable at the initial pension commencement and that becomes payable at the subsequent pension commencement be increased in an alternative manner that the superintendent considers reasonable.

Repealed

22.1 Repealed. [B.C. Reg. 206/2001, s. 1.]

Reinstatement of suspended or reduced benefits

22.2 (1)  In this section a reference to section 22.1 means section 22.1 of this regulation as it read on December 17, 1999.

(2)  For the purpose of section 74.1 of the Act, a pension plan that suspended or reduced the benefits of a former member under the authority of section 22.1 must resume the payment of full benefits, effective on the coming into force of this section, in accordance with the schedule of periodic payments that existed immediately before the suspension or reduction.

(3)  The actual payment of full benefits under subsection (2) must be made not later than 90 days after the date this section comes into force.

(4)  If the period of suspension or reduction of benefits has lasted for 6 months or longer, including any period in respect of which there was an offset applied under section 22.1 (13), the pension payable as of the resumption of benefits under subsection (2) must be an amount not less than the amount of the pension that would have been payable had the initial pension commencement occurred at pensionable age, reduced in accordance with the terms of the plan as they were at the initial pension commencement.

(5)  The calculation of a reduction under subsection (4) must be based on an assumed age for the former member, and spouse if applicable, calculated in accordance with the method described in section 22 (4) or as provided for in section 22 (6).

(6)  A pension plan that suspended or reduced the benefits of a former member under section 22.1 must continue to contain an appeal procedure, including a right of appeal within a reasonable period of time by the former member to the board of trustees of the plan, regarding

(a) a decision by the plan to suspend or reduce the former member's benefits, and

(b) a recalculation of the pension under section 22.1 (13),

until all appeals that have been filed, or could be filed, under this provision have been resolved, and until all persons who qualify for reinstatement of benefits have had those benefits reinstated.

(7)  For the purpose of section 74.1 (1) of the Act, the appeal provisions referred to in subsection (6) are deemed not to be inconsistent with the Act or these regulations.

(8)  If a former member died while benefits were suspended or reduced, the survivor benefit must be calculated in the same manner as the survivor benefit that would have applied if the former member had still been receiving unreduced benefits at the date of death.

(9)  For the purpose of subsection (8), if the suspension or reduction has lasted for 6 months or longer, before calculating the amount of the survivor benefit the former member's pension must be recalculated under subsections (4) and (5) as if the former member had qualified for a resumption of benefit payments starting on the date on which he or she died.

[en. B.C. Reg. 206/2001, s. 2.]

Entitlement of employees to join plan

23 (1)  For the purposes of section 25 (1) of the Act, the classes of employees entitled, on application, to become members of a pension plan are any one or more of the following:

(a) employees who are paid a salary;

(b) employees who are paid on an hourly basis;

(c) employees who are members of a trade union;

(d) employees who are not members of a trade union;

(e) supervisory employees;

(f) management employees;

(g) executive employees;

(h) employees who are officers of the employer;

(i) employees who are connected with the employer for the purposes of section 8500 (3) of the regulations under the Income Tax Act (Canada);

(j) employees belonging to some other identifiable group of employees acceptable to the superintendent.

(2)  If there is a dispute as to whether or not an employee is a member of a class of employees for whom a pension plan is established or maintained and the superintendent is of the opinion that, on the basis of the nature of the employment or of the terms of employment of the employee, the employee is a member of that class, the superintendent may require the administrator to accept the employee as a member.

(3)  For the purposes of section 25 (1) of the Act, different employers in a multi- employer plan may have different classes of employees covered by the plan.

(4)  A pension plan in which the only member is a single employee who, but for this subsection, falls within a class of employees described in subsection (1) (g), (h) or (i), is exempt from section 25 of the Act and that employee must be treated for the purposes of the Act and this regulation as not falling within that class of employees.

Exceptions to locking in the commuted value of a pension

23.1 (1)  Section 30 (11) of the Act applies to a plan member or former member age 65 or older, and despite sections 29 (7) and 30 (8) of this regulation to the owner of a locked-in RRSP or life income fund who is age 65 or older,

(a) if that person

(i)  has, in the aggregate, in each plan, RRSP and fund referred to in that section, not more than an amount equivalent to 40% of the Year's Maximum Pensionable Earnings, and

(ii)  completes a declaration of commutable amount using Form 5 of Schedule 2 and files a copy of the completed form with each relevant pension plan and financial institution, and

(b) if the person has a spouse, obtains the spouse's waiver of entitlements using Form 2 of Schedule 2 and files a copy of the completed form with each relevant pension plan and financial institution.

(2)  Section 30 (12) of the Act applies to a member, former member, spouse, surviving spouse or former spouse entitled to a benefit

(a) if that person

(i)  completes a certificate of non-residency using Form 6 in Schedule 2,

(ii)  attaches to the completed Form 6 written evidence that the Canada Customs and Revenue Agency has determined the person to be a non-resident of Canada for the purposes of the Income Tax Act (Canada), and

(iii)  files a copy of the completed Form 6 with each relevant pension plan and financial institution, and

(b) if that person has a spouse, obtains the spouse's waiver of entitlements using Form 2 of Schedule 2 and files a copy of the completed form with each relevant pension plan and financial institution.

[en. B.C. Reg. 455/99, s. 13.]

Interest on contributions

24 (1)  Subject to this section, the rate of interest to be applied for the purposes of section 31 (4) of the Act is

(a) the rate specified in subsection (3), or

(b) the rate of interest calculated on the basis of the average of the yields of 5-year personal fixed term chartered bank deposit rates, published in the Bank of Canada Banking and Financial Statistics as CANSIM Series B 14045, over a reasonably recent period, such that the averaging period does not exceed 12 months.

(2)  The method first selected under subsection (1) to calculate the rate of interest may not be changed without the prior written consent of the superintendent.

(3)  Subject to this section, the rate of interest to be applied to contributions for the purposes of section 31 (2) and (3) of the Act is the amount determined under the plan as the gross rate of interest earned by the pension fund that holds those contributions, for the most recently completed period for which interest is to be applied, less the rate attributable to any expenses of administering the plan relating to that period that are not required to be paid by the employer.

(4)  Interest must be calculated at least annually, promptly after the end of each fiscal year.

(5)  Interest must be applied at least annually as follows:

(a) to member contributions, additional voluntary contributions and, if applicable, employer contributions made to the end of the fiscal year immediately preceding the most recently completed fiscal year, together with prior interest credited on those contributions, at the applicable interest rate prescribed by subsection (1) or (3);

(b) to member contributions, additional voluntary contributions and, if applicable, employer contributions made during the most recently completed fiscal year at one half of the applicable interest rate prescribed by subsection (1) or (3).

(6)  If a person becomes entitled to have a refund of contributions, interest must be applied, with respect to all member contributions, additional voluntary contributions and, if applicable, employer contributions, to the end of the month immediately preceding

(a) the date of payment or return of contributions, or

(b) the first payment in a series of payments,

at whichever of the following rates is provided for in the plan:

(c) the rate calculated by dividing 365 into the product of the number of days in the uncompleted fiscal year with respect to which interest is to be paid and the applicable rate provided for by subsection (1) at the end of the immediately preceding fiscal year;

(d) the actual net rate of interest earned by the plan during that portion of the uncompleted fiscal year as determined under subsection (3);

(e) an estimate of the actual net rate of interest determined solely on the basis of information regarding the performance of the investments of the assets of the plan during that portion of the uncompleted fiscal year, as reported to the administrator by the fund holder or the person making the plan investments.

(7)  If, in a defined benefit plan, the rate determined under subsection (6) would result in a negative interest rate, the interest rate to be applied under that subsection is zero.

(8)  Once the method of calculating the rate under subsection (6) has been chosen in respect of a fiscal year, that method must be used with respect to all benefit payments from the plan to be made during that fiscal year.

(9)  Notwithstanding subsections (5) and (6), the plan may provide for interest on contributions referred to in those subsections to be calculated in another manner and at other rates as the superintendent considers reasonable.

(10)  For the purposes of section 31 (1) of the Act, "contributions" does not include contributions returned to a member of a plan or to an employer who participated in a plan if the contributions are returned to avoid revocation of the plan's registration under the Income Tax Act (Canada).

[am. B.C. Reg. 455/99, s. 14.]

Manner and extent of transfers

25 (1)  In this section

"transfer" means a transfer of the assets of a pension plan under section 33 (2), (2.1), (3), (4) or (5.2), 34 (5), (6) or (10) or 58 (4) or (6) of the Act or a transfer permitted by operation of section 30 (12);

"transfer deficiency" means, in a case where the solvency ratio is less than 1 as calculated in the most recent actuarial valuation report under section 9 (3) of the Act, the amount by which the commuted value of a benefit exceeds the product of that commuted value and the solvency ratio.

(2)  Every transfer must be made in accordance with this section.

(3)  If a plan has a solvency ratio of 1 or more, a transfer shall not be deemed to impair the solvency of the plan for the purposes of section 60 (3) of the Act but the superintendent may, on the written request of an administrator, permit the administrator to refuse the transfer if the superintendent agrees with the administrator's assessment that the transfer would in fact materially impair the solvency of the plan.

(4)  If the commuted value under a plan is higher than the amount that would result if the definition of "commuted value" in section 1 (1) of the Act were applied, the administrator must ensure that supplementary calculations are made to ensure that the solvency of the plan will not be materially impaired by the transfer.

(5)  If a plan has a solvency ratio of less than 1, a transfer shall be deemed to impair the solvency of the plan but the administrator may make the transfer if

(a) the employer has remitted sufficient money to the plan to eliminate any transfer deficiency relating to the transfer, or

(b) the transfer deficiency for any person is less than 5% of the Year's Maximum Pensionable Earnings for the year in which the transfer is made and the total of all transfer deficiencies since the last review date does not exceed 5% of the market value of the assets of the plan at the time of transfer.

(6)  Notwithstanding subsection (5), the transfer of the amount equal to the commuted value of a benefit less the transfer deficiency related to that benefit shall not be deemed to materially impair the solvency of the plan.

(7)  Subject to section 60 (3) of the Act, a transfer deficiency that remains untransferred must be transferred within 5 years of the initial transfer and must include interest, at a rate that is not less than the rate of interest that was assumed in determining the commuted value of the benefit, up to the end of the month immediately preceding the date when the last or only transfer is made.

(8)  If the administrator is unable to make the transfer under subsection (7) following the expiry of the 5 year period because the person has not provided a forwarding address, the person entitled to the transfer must notify the administrator as to where the transfer is to be made.

(9)  Notwithstanding subsection (7), if a person who is entitled to the transfer dies during the 5 year period, the transfer deficiency becomes immediately payable.

(10)  and (11) Repealed. [B.C. Reg. 455/99, s. 15.]

[am. B.C. Reg. 455/99, s. 15.]

Exercise of options

26 (1)  If a person is entitled to exercise an option under section 32 (2), 33 (1), (2) or (2.1), 34 (5) or (6) or 58 (6) of the Act, the person must exercise the option within 90 days of the receipt of the information required by section 12, 13, 14, 15 or 17, as the case may be.

(2)  If the option is not exercised within the 90 day period, the person is then limited to the options, if any, provided by the plan.

[am. B.C. Reg. 455/99, s. 16.]

Savings institutions and retirement income fund

27 (1)  For the purposes of sections 32 (3) (d), 33 (2) (c), 60 (3), 68 (2) (a) (ii) and 74 (2) (c.1) of the Act, "savings institution" has the same meaning as in section 29 of the Interpretation Act.

(2)  For the purposes of sections 30 (11), 32 (3) (d), 33 (2) (c), 68 (2) (a) (ii) and 74 (2) (c.1) and (d) of the Act, "retirement income fund" means a life income fund that is issued to hold money that is the subject of a transfer referred to in section 30 (2).

[en. B.C. Reg. 455/99, s. 17.]

Maximum amount for compulsory transfer

28 For the purposes of section 33 (5) of the Act, the amount is 20% of the Year's Maximum Pensionable Earnings for the calendar year in which the termination of membership or termination of the plan first occurs.

[am. B.C. Reg. 455/99, s. 18.]

Locked-in RRSP

29 (1)  In this section

"contract" means an RRSP which is issued to hold money that is the subject of a transfer;

"life annuity contract" means an arrangement made to purchase through an insurance company a deferred or immediate pension that is not commutable, that will commence before the end of the calendar year in which the person who is to receive the pension attains the age of 69 years and that will not commence before the person who is to receive the pension attains

(a) the age of 55 years, or

(b) an age of less than 55 years if that person provides evidence to the satisfaction of the underwriter that the plan, or any of the plans from which the money was transferred, provided for payment of the pension at that earlier age;

"owner" means a member or former member who has made a transfer under section 33, 34 (5) or 58 of the Act to a contract and includes the spouse or former spouse of a member who is entitled to a pension benefit as a result of

(a) the death of the member or former member, or

(b) a marriage breakdown;

"transfer" means a transfer referred to in subsection (2);

"underwriter" means the underwriter, depositary or issuer of a contract, or of a life income fund governed by section 30.

(2)  Subject to subsection (2.1), every transfer of locked-in money to an RRSP under section 33, 34 (5), or 58 of the Act, Part 6 of the Family Relations Act or from a life income fund governed by section 30 of this regulation, and any subsequent transfer to an underwriter of money so transferred, must be made in accordance with this section.

(2.1)  Every transfer of locked-in money from a contract to a life income fund must be made in accordance with section 30.

(3)  The superintendent must, for the purposes of this section, establish and maintain a list that has entered in it

(a) the name of every savings institution and insurance company that has received approval of a specimen contract, and

(b) a description of each approved specimen contract.

(4)  A savings institution or insurance company must not transfer or accept a transfer unless

(a) the contract used for the transfer is in the form of a specimen contract, as amended where applicable, that has been approved by the superintendent for transfers, and

(b) the savings institution or insurance company

(i)  has been notified in writing by the superintendent that its name and specimen contract are on the list, and

(ii)  has not been notified in writing by the superintendent that either its name or its specimen contract has been removed from the list.

(5)  For the purposes of this section, a specimen contract, or an amendment to a specimen contract, is approved if the superintendent has provided written notice of approval to the savings institution or insurance company that filed it.

(6)  The superintendent may, without affecting the duties or liability of a savings institution or insurance company in relation to any transfer or contract, remove the savings institution or insurance company, or any specimen contract in its name, from the list established under subsection (3) if

(a) the savings institution or insurance company is using a contract, or an amendment to a contract, that is not in the form of the approved specimen contract, or

(b) the savings institution or insurance company has acted in breach of any of its obligations under this section.

(7)  Every contract must incorporate in it the appropriate definitions in section 1 of the Act and in subsection (1) of this section, and must include the following contractual obligations:

(a) subject to paragraph (b), all money, including all investment earnings, subject to any transfer is to be used to provide or secure a pension as required by the Act and this regulation;

(b) subject to subsection (9), no withdrawal, commutation or surrender of money is permitted, and no transfer of money is permitted except to

(i)  transfer the money to another underwriter's contract on the relevant conditions specified in this section,

(ii)  purchase a life annuity contract,

(iii)  transfer the money to a pension plan on the conditions referred to in section 33 (2) (a) of the Act, or

(iv)  transfer the money to an approved life income fund on the relevant conditions specified in section 30;

(c) except as provided for in the Act or this regulation, the benefits in the plan may not be assigned, charged, alienated or anticipated and are exempt from execution, seizure or attachment, and any transaction purporting to assign, alienate or anticipate the benefits is void;

(d) in the case of an RRSP, the money will be invested in a manner that complies with the rules for the investment of RRSP money contained in the Income Tax Act (Canada) and the regulations under the Income Tax Act (Canada) and will not be invested, directly or indirectly, in any mortgage in respect of which the mortgagor is the owner of the RRSP or the parent, brother, sister or child of the owner of the RRSP or the spouse of any of those persons;

(e) if money is paid out contrary to the Act or this section, the underwriter will provide or ensure the provision of a pension equal in value to the pension that would have been provided had the money not been paid out;

(f) the underwriter, before transferring the mone