British Columbia’s pension reform is another step closer to reality. The province’s bill 38, the Pension Benefits Standards Act (PBSA), was introduced on April 30, 2012, and received Royal Assent last week, on May 31. The legislation and accompanying regulations are expected to come into force some time after Jan. 1, 2013.
The bill repeals and replaces the current PBSA, and is the result of a 2008 report from the Joint Expert Panel on Pension Standards (JEPPS)—an independent expert panel established by the finance ministers of Alberta and British Columbia. JEPPS’ mandate was to review pension legislation in the two provinces and make recommendations for reform.
B.C. says the legislation will help to reduce administrative costs and enhance the rights of pension plan members and retirees.
Two amendments were made to the bill during the committee stage in the Legislative Assembly, as follows:
- section 58 was amended to include the deemed trust provisions found in subsection 43.1(3) of the current PBSA; and
- section 79 was amended to clarify the rights and obligations of surviving spouses relating to death benefits.
For a summary of Bill 38, read: A review of B.C.’s new pension legislation