Manitoba and Newfoundland and Labrador have officially ratified an agreement on multi-jurisdictional pension plans, which will come into effect on July 1.
In March, the two provinces announced their intention to sign the agreement, which had previously been adopted by every other province except Prince Edward Island. The agreement’s adoption was contingent on an amended version drafted by the Canadian Association of Pension Authorities and approved by its existing signatories.
Read: Manitoba, NL to sign onto agreement for multi-jurisdictional pension plans
“CAPSA is pleased to welcome Manitoba and Newfoundland and Labrador into the 2020 agreement respecting multi–jurisdictional pension plans,” said Angela Mazerolle, chair of the CAPSA and vice-president of regulatory operations and superintendent of pensions for New Brunswick, in a press release. “The agreement will continue to protect member entitlements and ease the regulatory burden for all multi-jurisdictional pension plans in Canada.”
The agreement aims to create a clear legal framework for the administration and regulation of pension plans operating in multiple Canadian jurisdictions. Once the amended version of the agreement comes into force, MJPPs won’t be subject to conflicting regulations from different provincial authorities, except if they’re operating in Prince Edward Island or any of Canada’s three territories.
Efforts to create a cross-jurisdictional agreement for the regulation of pension plans began in 1968, though little progress was made over the next four decades. In 2008, the CAPSA attempted to create a national version and, in 2011, it produced an agreement that was ratified by Ontario and Quebec. In 2016, B.C., Saskatchewan and Nova Scotia joined the agreement as well.
The agreement, which was introduced in June 2020 and replaced the 2016 version, was initially signed by the federal government and the provincial governments of British Columbia, Alberta, Saskatchewan, Ontario, Quebec, New Brunswick and Nova Scotia.
Read: A look at the 2020 agreement for multi-jurisdictional pension plans