British Columbia Pension Benefits Act – Default Fund reminder
The British Columbia Pension Benefits Standard Act and Regulation has been effective since September 30, 2015. It now prescribes the default fund options that are acceptable for a pension plan. The options include either a balanced fund or a portfolio of investments that take a member’s age into account (such as an Avenue Portfolio or a Target Date Fund). Plan administrators need to ensure that their default fund complies with the new legislation on or before June 28, 2016.
Manulife has completed its review of the default funds in effect for the clients who have a pension plan registered in British Columbia. If it has been determined that a plans current default fund does not comply with these new requirements a choice will need to be made to select one of the three options below as the new default fund for the plan:
- An Avenue Portfolio or,
- A Target Date Fund or,
- A balanced investment fund
If your primary default fund is already an Avenue Portfolio or a Target Date Fund and your secondary default fund is not compliant, for any member who has not provided his or her date of birth, funds will be invested in a new secondary default fund.
Letters were sent to former Standard Life plan sponsors on May 13th with a response due date of May 27th and letter were sent to Manulife plan sponsors on May 18th with a response due date of June 3rd.
If you have any questions please contact Ask_GRS_Compliance@manulife.com.