Vol. 149, No. 6 — March 25, 2015

Registration

SI/2015-19 March 25, 2015

JOBS AND ECONOMIC GROWTH ACT
SUSTAINING CANADA’S ECONOMIC RECOVERY ACT

Order Fixing April 1, 2015 as the Day on which Certain Provisions of the Acts Come in Force

P.C. 2015-302 March 12, 2015

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance,

a) pursuant to section 1827 of the Jobs and Economic Growth Act, chapter 12 of the Statutes of Canada, 2010, fixes April 1, 2015 as the day on which section 1804 and subsection 1820(6) of that Act come into force; and

b) pursuant to section 199 of the Sustaining Canada’s Economic Recovery Act, chapter 25 of the Statutes of Canada, 2010, fixes April 1, 2015 as the day on which section 183, subsection 192(1), section 195 and subsection 196(3) of that Act come into force.

EXPLANATORY NOTE

(This note is not part of the Order.)

Proposal

To fix April 1, 2015, as the date on which certain sections of the Jobs and Economic Growth Act and the Sustaining Canada’s Economic Recovery Act (the Acts) come into force.

Objective

These amendments seek to improve the federal private pension framework.

Background

The Jobs and Economic Growth Act received royal assent on July 12, 2010, and the Sustaining Canada’s Economic Recovery Act received royal assent on December 15, 2010. The majority of the provisions of both Acts came into force with royal assent of the Acts. This Order in Council brings into force most of the remaining amendments needed to support the implementation of the Regulations Amending Certain Regulations Relating to Pensions.

Implications

The amendments to the Pension Benefits Standards Act, 1985 brought into force with this Order in Council allow retiring members of a defined contribution (DC) plan to receive variable annual payments directly from the plan throughout their retirement years, allow pension plans with DC components to offer investment choices to members or former members and other beneficiaries, and allow plan administrators to provide annual pension statements and other required information to members, former members and beneficiaries in electronic form. The amendments also require spousal consent for the transfer, after a member becomes eligible to retire, of the member’s pension benefit credit to a prescribed retirement savings plan.

Consultation

The implementation of the amendments to the Pension Benefits Standards Act, 1985 made through the Act are the result of a wide consultation conducted in 2009 by the Department of Finance. The amendments incorporate, in a balanced fashion, comments and suggestions that were made by various stakeholders.

Departmental contact

Lisa Pezzack
Director
Financial Sector Division
Department of Finance Canada
90 Elgin Street, 13th Floor
Ottawa, Ontario
K1A 0G5
Email: Lisa.Pezzack@fin.gc.ca