The New Regs
On July 22, 2014, the Alberta Government passed the new Employment Pension Plans Regulation (the New Regs.). The New Regs. support the new Employment Pension Plans Act, (the New Act) which was passed in the fall of 2012.
The effective date of the Act and Regulations is September 1, 2014.
The new legislation reflects the changes recommended by the Joint Expert Panel on Pension Standards in their 2008 report. It has been drafted to be highly “harmonized” with the province of British Columbia. Significant differences between the BC and Alberta Acts are only with respect to effective dates and with respect to differences required by differences in the provincial Family Law legislation.
In the sense that the legislation was passed over 3 years ago, there are no great surprises. The following are details of the main provisions of the new Act and Regulations:
Individual Pension Plans
Plans for Connected Individuals (PCIs) (more than 10% shareholders or related)
Plans for Connected Individuals are still exempt from registration with Alberta Finance. A significant change is that PCIs no longer need to meet any minimum funding requirements.
Plans for “specified Individuals” (PSIs)
Specified Individuals are defined as individuals who earn more than 2.5 times the YMPE (Year’s Maximum Pensionable Earnings as defined in the CPP). Under the New Regs., PSIs will still need to be registered with Alberta Finance and are subject to provisions such as the minimum funding rules.
Registered Pension Plans (“RPPs”) in General
New provisions for all RPPs are:
This content is for general information only. As it is impossible to include all situations, circumstances and exceptions in a commentary such as this, a further review or study should be undertaken to the reader’s own situations and circumstances due to the application of the Budget 2015 proposals. Every effort has been made to ensure the accuracy of the information contained in this commentary. However, because of the nature of the subject, no person or firm involved in the preparation or distribution of this commentary accepts any liability for its contents or use.