PEI Introduces Long-Awaited Pension Legislation
On December 2, 2010, the Prince Edward Island government introduced Bill 30 - Pension Benefits Act , the first step towards implementing provincial pension standards legislation that will establish minimum standards similar to that of other Canadian jurisdictions.
Interestingly, a previous version of the PEI Pension Benefits Act received Royal Assent on April 26, 1990 (the 1990 Act), but was never proclaimed in force. Bill 30 repeals the 1990 Act.
Many of the provisions of Bill 30 are similar to the Ontario Pension Benefits Act pre-pension reform. For example, Bill 30 includes provisions regarding:
- notice requirements for adverse amendments;
- partial wind-ups; and
- grow-in rights for members affected by a plan wind-up.
Commenting on the Bill, Minister Curry indicated that “[a]n extensive consultation with stakeholders will take place throughout the upcoming months. Once the formal consultation process is complete, the Bill may be brought forth for second reading in the spring 2011 sitting.”
The consultation paper is quite brief and focuses on the following topics: vesting, locking-in and a transition period for registration of already-existing plans. The paper indicates that comments are due by January 30, 2011.
While the introduction of Bill 30 is a step in the right direction, it clearly does not take into account the ongoing pension reform in Ontario and other Canadian jurisdictions. The consultation process may result in amendments to the Bill consistent with the pension reform taking place in other Canadian jurisdictions.
