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ARTICLE · 23 SEPTEMBER 2014

Proposed Changes To The Pension Investment Rules

The Minister of State (Finance) Kevin Sorenson today proposed new regulations which will amend the Pension Benefits Standards Regulations, 1985.

CanadaEmployment and HR

The Minister of State (Finance) Kevin Sorenson today proposed new regulations which will amend the Pension Benefits Standards Regulations, 1985 (the Regulations). Among other things the proposed regulations include amendments to the pension investment rules in Schedule III to the Regulations. The proposed amendments have been released for public comment, with a 30 day consultation period commencing on September 27, 2014.

The first significant change is to the test under the 10% rule. The 10% rule is a diversification requirement which limits the amount that can be invested in any one entity or group of entities to 10%. Under the current rules, the test is based on the book value of the pension fund. Under the proposed amendments, the test will be based on the market value of the fund.

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