Amendments To The Pension Benefits Standards Act: Three Changes To Take Action On Now

On November 8, 2023, Bill 33, Pension Benefits Standards Amendment Act, 2023, received Royal Assent. This Bill makes a number of amendments to the Pension Benefits Standards Act (PBSA), including the introduction of variable life benefits for defined contribution pension plans and greater flexibility in the eligibility rules for collectively bargained multi-employer plans.

While the majority of these changes will come into force at future dates, there are three upcoming changes that plan administrators can take action on right now:

1. RRIF Option. The PBSA currently provides that plan texts must provide that where a lump sum is payable, that lump sum may be transferred to a registered retirement savings plan (RRSP), to the extent that the Income Tax Act (Canada) allows, at the election of the person to whom the lump sum is payable. The PBSA will now require plan texts to provide the option to transfer to a registered retirement income fund (RRIF), as well as an