On April 24, 2026, the BC Ministry of Finance announced amendments to the BC Pension Benefits Standards Regulations would come into force on April 30, 2026. Among these amendments is the exemption from registration under the BC Pension Benefits Standards Act for pension plans exclusively for specified individuals, which was first announced in Bill 33-2023.

Prior to the amendment, the exemption from registration applied only to connected persons (individuals who own at least 10% of any class of shares of the capital stock of the employer), that is, most IPPs for business owners are already exempted. The amendment expands the exemption to include all specified individuals, which comprises connected persons as well as highly compensated individuals. An individual is considered “highly compensated” if their remuneration exceeds at least 2.5 times the Year’s Maximum Pensionable Earnings (YMPE). The YMPE for 2026 is $74,600 and a highly compensated individual is an employee whose remuneration exceeds $186,500 in 2026. Pension plans that are exclusively for non-owner employees who are highly compensated will now experience the same reduction in regulation as plans for BC business owners.

The expanded exemption offers employers more flexibility in how they structure and fund IPPs for their executives or key employees. Deregulating these plans removes some of the barriers the employers have faced in the administration of non-exempt plans. Employers who are reviewing their executive compensation strategy should consider an IPP as part of their compensation package.

Please contact NewIPP@westcoast-actuaries.com for more information on IPPs.

Links:
BC Gov News
OIC 153/2026 (BC Reg 62/2026)
Bill 33-2023, the Pension Benefits Standards Amendment Act, 2023.