If you’re a plan administrator of a group retirement plan registered in Manitoba, Bill 8 The Pension Benefits Amendment Act, and the Amended Pension Benefits Regulation will affect your responsibilities. Here are key highlights and where you can find more information:
Filing of Statement of Investment Policies and Procedures (SIPP) with the Superintendent
- Within 180 days after the end of each fiscal year of a plan, the plan administrator must file a copy of the plan's latest SIPP with the Superintendent (See section 9 of the Amended Regulation).
Financial statements information
- The financial statements must disclose each investment of the pension fund that has a market value greater than 2% of the market value of all the investments of the pension fund, itemized into specific categories (section 11 of the Amended Regulation).
Plan amendment submissions
- The certified copy of the amendment must be filed with a new prescribed submission form.
Pension benefit division on relationship breakdown
- The mandatory 50-50 credit split is replaced by not more than 50%. (sections 61(1) through (4) of the Amended Regulation)
- The statement for division of pension to be provided by the administrator must include additional information (section 64 of the Amended Regulation).
- The Regulation provides for the split formula to be used for pension plans, Locked-In Retirement Accounts (LIRA) and Life Income Funds (LIF). You can find more information on these rules in Policy Bulletin #5.
Rules for the pension committee
- What to do if a pension committee doesn’t have a voting member elected or appointed by the plan's non-active members and other beneficiaries for the election is set out in section 3.13(4) of the Regulation (section 8(2) of the Amended Regulation)
Small pension commutation clarification
- The Act and the Regulation have been amended to clarify that the small pension commutation rule applies to a pension division on relationship breakdown (section 54(1) of the Amended Regulation).
- A separated spouse or common-law partner may now be named as a beneficiary for the purpose of survivor benefits.
Extension of deadline
- On the request of an administrator, the superintendent may extend a deadline – other than a deadline by which an employer must fund or pay into the plan — if the superintendent is satisfied that the extension is justified by exceptional circumstances.
Changes to unlocking provisions for LIRAs and LIFs also come into force on October 1, 2021. These include:
- Full unlocking (100%) of LIRAs and LIFs on or after reaching age 65
- Unlocking all or part of the amount for financial hardship (at any age)
- Making a one-time 50% transfer from a LIRA to a prescribed registered retirement income fund after reaching age 55.