The Saskatchewan government is introducing amendments to its pension legislation that provide additional flexibility for plan sponsors and introduce new decumulation options for members of defined contribution plans.

The bill, which passed first reading in provincial parliament last week, includes provisions for DC plan sponsors to offer advanced life deferred annuities and variable payment lifetime annuities.

Read: Saskatchewan permitting electronic naming of beneficiaries for pensions, retirement plans

It also includes provisions for defined benefit plan sponsors to establish solvency reserve accounts and to use letters of credit in lieu of solvency deficiency contributions to a maximum of 15 per cent of the plan’s solvency liabilities. The bill also removes liability from DB plan administrators that enter into an annuity buyout contract with an insurance company.

And the new provisions update and clarify the powers of the province’s superintendent of pensions and enhance its ability to enforce compliance and to deter behaviours that could harm plan members.

“These changes to pension legislation add flexibility for plan sponsors, enhance pension safeguards and provide more tools to enforce compliance,” said Saskatchewan Justice Minister and Attorney General Bronwyn Eyre, in a press release. “These amendments will assist Saskatchewan employers in their efforts to help the hard-working residents of Saskatchewan prepare for retirement.”

Read: Q&A with the Saskatchewan Pension Plan’s Katherine Strutt