Pension benefits standards legislation

A buyer meets this legislation when the target sponsors a registered pension plan and the sale changes who employs the plan’s members. Which Act governs depends on the work the members do and where they do it, so the first question is which regulator supervises the plan. This entry covers the federal Act and Ontario’s Act; check the rules where you are.

What the two Acts say

The federal Act defines included employment as employment, other than excepted employment, on or in connection with the operation of any work, undertaking or business within the legislative authority of Parliament. Under the direction of the Minister, the Superintendent of Financial Institutions has control and supervision of its administration. Ontario’s Act applies to every pension plan provided for persons employed in Ontario, and s.4 deems where a person is employed. It also names a designated multi-jurisdictional pension plan: one to which the Act applies and to which the pension benefits legislation of one or more designated jurisdictions also applies.

What to ask

• Which Act and regulator govern the plan, and where its members work.
• Whether the plan has been wound up in whole or in part, or whether that is being considered.
• What the sale agreement says about the plan’s members and assets.

See what happens to the pension or benefits plan and the entry on a partial wind-up.