On March 25, the Minister of Finance released the latest series
of amendments to the Pension Benefits Standards
Regulations. Among other things, key amendments to the pension
investment rules modernize the rules by replacing outdated
definitions and clarifying certain aspects. These amendments come
into force on July 1, 2016.
Deeming Provision Broadened
Investments held through an investment fund (whether established
by a corporation, limited partnership or trust), a segregated fund
or a trust fund in which the moneys of the plan have been invested,
are now deemed to be indirect investments made by the pension plan
administrator.
10% Rule
The "10% Rule," which prohibits plan administrators
from investing or lending more than 10% of the total value of the
plan's assets in or to a single entity, has been amended to
base the 10% limit on the "market value" (i.e.,
current value), rather than the "book value"
(i.e., original purchase price) of a plan's
assets.
