The government of Nova Scotia has introduced a new Pension Benefits Act, which would enable private sector pension plan members and retirees to know more about their employer-sponsored plans and employers to have more plan design options.
Under the proposed legislation, all plan members would have access to increased information about the solvency of their pension plan, what benefits are available and any proposed changes to it. As well, since employers would have more plan design options, they may be more encouraged to offer pension plans.
The previous act recognized two categories of pension plan participants, members and former members. The new act would add retirees as a third category and allow at least two retirees to sit on an advisory committee that makes recommendations to the plan administrator.
Most pension plans in Nova Scotia are either a DB or DC plan. New options would include jointly sponsored pension plans co-sponsored and co-managed by the employer and employees, with both sharing in the plan’s benefits and liabilities.
Target benefit plans would combine the qualities of DB and DC plans. They would give employers flexibility in liability and employees a better pension than in a strict DC plan.
The act would also give people in common-law relationships greater access to their partner’s pension benefits. One partner could receive the other’s pension if their common-law relationship existed for at least one year and there was no spouse from a previous relationship. If there is a living spouse, the common-law relationship must exist for three or more years, similar to the CPP.
There would also be better protections for people whose partner dies before retiring. The survivor would be eligible to receive all of what the plan member was eligible to receive at the time of his or her death, up from the current 60%.
The department consulted broadly before introducing the legislation. The Pension Review Panel, chaired by former Maritime Life CEO Bill Black, delivered its final report in early 2009. A follow-up discussion paper was released in 2010 and key parties were consulted in 2011.
The Pension Benefits Act does not apply to employees who work under federal jurisdiction or pension plans established for provincial public servants, teachers, judges, members of the legislative assembly or Sydney Steel Corporation employees.