Pooled Registered Pension Plans Act

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Short Title

Interpretation

Purpose of Act

Application

Agreements

Powers of Superintendent

Registration

Administration of Pooled Registered Pension Plans

Directions of Compliance

Objections and Appeals

General Requirements

Termination and Winding-Up

General

Offences and Punishment

Regulations

Annual Report

Related Amendments

Coordinating Amendment

Coming into Force

Amendments not in force

— 2023, c. 26, s. 159The definition member in subsection 2(1) of the Pooled Registered Pension Plans Act is replaced by the following:member means a person who holds an account with, or who is entitled to receive a variable life payment under, a pooled registered pension plan. (participant)Subsection 2(1) of the Act is amended by adding the following in alphabetical order:variable life payment means a periodic amount that a member is entitled to receive under a pooled registered pension plan and that varies as a function of factors that includethe amount or rate of return attributable to the investment of the assets of the fund from which the payment is made; andthe rate of mortality of the pool of persons who are entitled to receive payments from that fund. (paiement viager variable)variable life payment credit, in relation to a member, means the aggregate value at a particular time of the variable life payments that the member is entitled to receive under a pooled registered pension plan, calculated in the prescribed manner. (somme des paiements viagers variables) — 2023, c. 26, s. 160Section 3 of the Act is replaced by the following:The purpose of this Act is to provide a legal framework for the establishment and administration of a type of pension plan that is accessible to employees and self-employed persons and that pools funds to achieve lower costs in relation to investment management and plan administration. — 2023, c. 26, s. 161Section 4 of the Act is replaced by the following:This Act applies in respect of a member of a pooled registered pension plan whois employed, other than in one of the territories, in included employment by an employer that participates in the plan;is employed in included employment in a territory or is a self-employed person in a territory; oris part of a prescribed class of members. — 2023, c. 26, s. 162Section 17 of the Act is replaced by the following:An administrator of a pooled registered pension plan must keep records that are sufficient to allow a member’s share of the assets of the plan, as well as a member’s variable life payments and variable life payment credit, to be determined. — 2023, c. 26, s. 163Subsections 22(4) and (5) of the Act are replaced by the following:The administrator must invest the funds in members’ accounts and in a variable life payment fund, and must do so in a manner that a reasonable and prudent person would apply in respect of a portfolio of investments appropriate for retirement savings.The administrator is entitled to engage the services of any investment manager it chooses for the purposes of investing the funds in members’ accounts or in a variable life payment fund. — 2023, c. 26, s. 164Subsection 23(1) of the Act is replaced by the following:A pooled registered pension plan may permit a member to make investment choices with respect to funds in their account from among the investment options offered by the administrator. — 2023, c. 26, s. 165Section 25 of the Act is replaced by the following:The administrator must not change an investment choice made by a member under section 23 except on the request of the member or in the circumstances specified in the regulations. — 2023, c. 26, s. 166Subsection 43(1) of the Act is replaced by the following:An employer that provides a pooled registered pension plan to a class of employees and enters into a contract with an administrator to provide a new pooled registered pension plan to that class must cause the assets of the former plan, other than any assets in a variable life payment fund, to be transferred to the new plan and must provide the notification referred to in subsection 41(2) to the employees in that class.Subsection 43(3) of the Act is replaced by the following:The employer is responsible for all of the costs in relation to the transfer of assets under subsection (1) from one pooled registered pension plan to another. — 2023, c. 26, s. 167Section 44 of the Act is replaced by the following:A member of a pooled registered pension plan, other than one who has become a member under section 39 or 40 or who is entitled to receive variable life payments under the plan, may terminate their membership in the plan by notifying the administrator. — 2023, c. 26, s. 168Paragraph 47(1)(a) of the Act is replaced by the following:the funds in a member’s account with the plan and a member’s variable life payments, as well as any interest or right in those funds or payments, are not capable of being transferred, charged, attached, anticipated or given as security and that any transaction appearing to do so is void or, in Quebec, null;Paragraphs 47(1)(c) and (d) of the Act are replaced by the following:a member is not permitted to withdraw the funds in their account or in a variable life payment fund;an administrator is not permitted to withdraw the funds from a member’s account or from a variable life payment fund; anda member’s variable life payments, as well as an interest or right in those payments, are not capable of being surrendered or, subject to section 51.6 and subsection 62(12), commuted. — 2023, c. 26, s. 169The Act is amended by adding the following after section 51:Variable Life PaymentsSubject to the regulations, a pooled registered pension plan mayprovide for the establishment, as part of the plan, of a variable life payment fund from which variable life payments are to be paid; andprovide that a member who has reached the prescribed age fixed for the purposes of this paragraph may, in order to receive variable life payments, elect to transfer any funds in their account to the variable life payment fund.A member referred to in paragraph 51.1(b) may elect to transfer funds to the variable life payment fund only if the prescribed conditions are met.A variable life payment fund does not contain individual accounts for members and, for greater certainty, a reference in this Act to a member’s account is not to be construed as referring to funds held within a variable life payment fund.Subject to section 51.6 and subsection 62(12), the administrator may transfer or permit the transfer of any part of the assets of a variable life payment fund to any other pension plan, including another pooled registered pension plan or a pension plan not under federal legislative authority, only with the Superintendent’s permission.This section applies with respect to the termination of a variable life payment fund in the case where the pooled registered pension plan is not being terminated.In the prescribed circumstances, the Superintendent may declare a variable life payment fund to be terminated as of the date that the Superintendent considers appropriate.An administrator must, not less than 60 and not more than 180 days before the day on which it terminates a variable life payment fund, provide written notification of the termination to each employer that participates in the plan, each member of the plan and the spouse or common-law partner of each member. The notice must specify the date of the termination.Subsection (3) does not apply with respect to a spouse or common-law partner of a person who is entitled to receive variable life paymentsas a result of the person being a survivor of a deceased member; orunder section 53 as the result of divorce, annulment, separation or breakdown of a common-law partnership.An administrator must, not less than 60 and not more than 180 days before the day on which it terminates a variable life payment fund, notify the Superintendent of the termination. The notice must specify the date of the termination and be in the form and manner directed by the Superintendent.On the termination of a variable life payment fund, the administrator must file with the Superintendent, in the form and manner that the Superintendent may direct, a termination report that contains the prescribed information and that is prepared by a person having the prescribed qualifications.Assets of the variable life payment fund must not be used or transferred for any purpose until the Superintendent has approved the termination report, except that the administrator of the plan may make variable life payments, as they fall due, to the members entitled to receive them.On the termination of a variable life payment fund under section 51.5, a member who was receiving variable life payments from the fund is entitled totransfer, for the purpose of making an election to receive variable payments under section 48, their variable life payment credit to an account with the pooled registered pension plan, if the plan provides for such an election;transfer their variable life payment credit to another pooled registered pension plan or another pension plan, if that other plan permits;transfer their variable life payment credit to a retirement savings plan of the prescribed kind for the member; oruse their variable life payment credit to purchase an immediate or deferred life annuity of the prescribed kind for the member.If a variable life payment fund has been terminated under section 51.5 and the Superintendent is of the opinion that no action or insufficient action has been taken to wind up the fund, the Superintendent may direct the administrator to distribute the assets of the fund, and may direct that any expenses incurred in connection with that distribution be paid out of the fund, and the administrator must comply with any such direction without delay. — 2023, c. 26, s. 170Subsection 53(2) of the Act is replaced by the following:Subject to subsection (3), the funds in the account of a member of a pooled registered pension plan — and, subject to subsection (4.1) and the regulations, a member’s variable life payments and variable life payment credit — are, on divorce, annulment, separation or breakdown of common-law partnership, subject to provincial law relating to the distribution of property.A member’s variable life payments and variable life payment credit that are subject to provincial law relating to the distribution of property under this section are not subject to the provisions of this Act relating to the valuation or distribution of variable life payments and variable life payment credits, as the case may be.Section 53 of the Act is amended by adding the following after subsection (4):A member of a pooled registered pension plan may assign all or part of their variable life payments or variable life payment credit to their spouse, former spouse, common-law partner or former common-law partner, effective as of divorce, annulment, separation or breakdown of the common-law partnership, as the case may be. However, a subsequent spouse or common-law partner of the assignee is not entitled to any variable life payments or variable life payment credit under the plan in respect of that assigned portion.The portion of subsection 53(5) of the Act before paragraph (b) is replaced by the following:On divorce, annulment, separation or breakdown of a common-law partnership, if a court order or an agreement between the parties provides for the distribution of property between a member and their spouse, former spouse or former common-law partner, the administrator must determine and administer the member’s account, their variable life payments and their variable life payment credit in the prescribed manner and in accordance with the court order or the agreement, on receipt ofa written request from either the member or their spouse, former spouse or former common-law partner that all or part of the funds in the member’s account, of their variable life payments or of their variable life payment credit be distributed or administered in accordance with the court order or the agreement; andThe portion of subsection 53(5) of the English version of the Act after paragraph (b) is replaced by the following:However, in the case of a court order, the administrator must not administer the member’s account, their variable life payments or their variable life payment credit in accordance with the court order until all appeals from that order have been finally determined or the time for appealing has expired. — 2023, c. 26, s. 171Subsection 54(1) of the Act is amended by adding the following after paragraph (b):a member who, while receiving variable life payments under the plan, retains an account with the plan and who notifies the administrator of their intention to transfer or use the funds in their account; — 2023, c. 26, s. 172The portion of paragraph 57(1)(b) of the Act before subparagraph (i) is replaced by the following:that, other than with respect to variable life payments, each member of the plan will be given, in the prescribed circumstances and manner, and within 45 days after the end of each year or any longer period specified by the Superintendent, a written statement showingParagraphs 57(1)(d) and (e) of the Act are replaced by the following:that, if a member has provided notice under section 44 or paragraph 54(1)(b.1) or is no longer employed by an employer that is participating in the plan, the administrator must give to the member a statement in the prescribed form within 30 days after the day on which the notice was provided or the employee’s employment with the employer ceased, or any longer period permitted by the Superintendent;that, if the plan is terminated under section 62, the administrator must give to the member a statement in the prescribed form within 30 days after the plan’s date of termination — or, if the member was receiving variable life payments under the plan, within 120 days after that date — or any longer period permitted by the Superintendent; andthat, in the case of a member’s death, the administrator must give — to the survivor, if there is one, to the member’s designated beneficiary, if the administrator has been notified of the designation and there is no survivor, or, in every other case, to the executor or administrator of the member’s estate or to the liquidator of the member’s succession — a statement in the prescribed form within 30 days after the day on which the administrator received notice of the death or any longer period permitted by the Superintendent. — 2023, c. 26, s. 173The Act is amended by adding the following after section 57:A pooled registered pension plan with a variable life payment fund must provide that each person who is receiving variable life payments from the fund will be given the prescribed information in the prescribed circumstances and manner, within the prescribed period or any longer period permitted by the Superintendent.A pooled registered pension plan with a variable life payment fund must provide that, if the fund is terminated under section 51.5, the administrator must, within 120 days after the termination or any longer period permitted by the Superintendent, give to each person who is receiving variable life payments from the fund a statement in the prescribed form that contains the prescribed information. — 2023, c. 26, s. 174Subsections 62(10) and (11) of the Act are replaced by the following:Assets of the pooled registered pension plan must not be used or transferred for any purpose until the Superintendent has approved the termination report. However, the administrator of the plan may make variable payments and variable life payments, as they fall due, to any persons entitled to receive them.If a pooled registered pension plan has been terminated and the Superintendent is of the opinion that no action or insufficient action has been taken to wind up the plan, the Superintendent may direct the administrator to distribute the funds in the members’ accounts and in any variable life payment fund and may direct that any expenses incurred in connection with that distribution be paid out of the members’ accounts or the variable life payment fund, as the case may be, and the administrator must comply with that direction without delay.On the termination of a pooled registered pension plan, a member who was receiving a variable life payment under the plan is entitled totransfer their variable life payment credit to another pooled registered pension plan or another pension plan, if that other plan permits;transfer their variable life payment credit to a retirement savings plan of the prescribed kind for the member; oruse their variable life payment credit to purchase an immediate or deferred life annuity of the prescribed kind for the member. — 2023, c. 26, s. 175Paragraphs 72(a) and (b) of the Act are replaced by the following:any funds in an account with a pooled registered pension plan, any variable life payments or a right or interest in those funds or payments; orany funds withdrawn under section 50, 51.6 or 54 or subsection 62(12), or a right or interest in those funds. — 2023, c. 26, s. 176Subsection 73(1) of the Act is amended by striking out “or” at the end of paragraph (a) and by replacing paragraph (b) with the following:a right or interest in a variable life payment; ora right or interest in any funds withdrawn under section 50, 51.6 or 54 or subsection 62(12). — 2023, c. 26, s. 177Paragraphs 76(1)(e) to (h) of the Act are replaced by the following:respecting the management and investment of funds in members’ accounts and in a variable life payment fund, including the way in which the funds are to be held;respecting the process by which investment options are offered by an administrator under section 23 and choices among those options are made;respecting investment options offered by an administrator under section 23;specifying the circumstances in which an administrator may change an investment choice made by a member under section 23;Paragraphs 76(1)(q) and (r) of the Act are replaced by the following:respecting variable life payments and variable life payment funds;prescribing the manner in which variable life payment credits are to be determined and fixing the time as of which the determination is to be made;respecting the transfer of funds by the administrator from a pooled registered pension plan;respecting the distribution of the funds from a pooled registered pension plan that is being wound up; — 2024, c. 17, s. 185The Pooled Registered Pension Plans Act is amended by adding the following after section 43:An administrator of a pooled registered pension plan must provide each person who becomes a member of the plan, other than under section 39 or 40, with a written notice thatinforms the member of their right to terminate their membership in the plan by notifying the administrator; andincludes the prescribed information.The administrator must provide the noticein the case of a survivor of a deceased member, as soon as feasible after the day on which the survivor becomes a member; andin any other case, no later than the day on which the person becomes a member.