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ARTICLE · 13 MAY 2011

Changes To Federal Pension Legislation Effective July 1, 2011

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More amendments to the Pension Benefits Standards Act, 1985 (PBSA) contained in Bill C-9 will come into force. These amendments apply to federally-regulated pension plans.

CanadaEmployment and HR
Sonia Mak
Sonia Mak
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More amendments to the Pension Benefits Standards Act, 1985 (PBSA) contained in Bill C-9 will come into force. These amendments apply to federally-regulated pension plans.

More amendments to the federal pension legislation will come into force on July 1, 2011. These amendments include provisions that:

  • provide for immediate vesting, and
  • extend the 50% rule to pre-1987 member contributions.

IMMEDIATE VESTING

The statutory maximum vesting period of 2 years of continuous membership is removed. A pension plan must provide for immediate vesting, for both pre-reform and post-reform benefits. The pre-reform vesting rules are also removed.

In addition, a member who has been a member for a continuous period of at least 2 years is not permitted to withdraw any part of his/her contributions to the plan in respect of plan membership on and after October 1, 1967 (except additional voluntary contributions) if the member is or would be entitled to a deferred benefit.

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