New Brunswick Regulation 2024-3, established under the Pension Plan Sustainability and Transfer Act (O.C. 2024-16), was filed on January 25, 2024. This regulation outlines provisions related to the transfer and sustainability of specific pension plans within New Brunswick. Its primary objective is to ensure proper management and transfer of pension plans while maintaining their sustainability in compliance with the Act. Officially titled the “Transfer of Prescribed Pension Plans Regulation – Pension Plan Sustainability and Transfer Act,” the regulation includes definitions for key terms such as “Act,” referring to the Pension Plan Sustainability and Transfer Act, “CUPE” (Canadian Union of Public Employees), and “NBU” (New Brunswick Union of Public and Private Employees), which are crucial for clarity and legal consistency throughout the regulation.

The regulation prescribes specific pension plans under section 3 of the Act, including the Pension Plan for General Labour, Trades and Services Employees of New Brunswick School Districts (established March 1, 1974), the Pension Plan for Full-Time CUPE 2745 Employees of New Brunswick School Districts (established March 1, 1974), the Pension Plan for General and Service Employees of New Brunswick Nursing Homes (established April 1, 1982), the Pension Plan for Nursing and Paramedical Employees of New Brunswick Nursing Homes (established April 1, 1982), and the Pension Plan for Management Employees of New Brunswick Nursing Homes (established April 1, 1982). These plans are highlighted for their significance and the need for regulation concerning pension transfers and sustainability.

Section 4 of the regulation specifies the parties involved in negotiating memoranda of understanding concerning the pension plans. For instance, the negotiation for the pension plan in paragraph 3(a) involves the Crown, represented by the Treasury Board, and CUPE Local 1253, with similar arrangements for the other pension plans, indicating a structured approach to stakeholder engagement. The regulation aims to facilitate smooth transfers of pension plans and ensure their ongoing sustainability, which is particularly important for plans that serve a large number of employees, safeguarding their retirement benefits.

The regulation sets clear time limits for negotiations; according to subsection 6(1) of the Act, the involved parties must negotiate and finalize a memorandum of understanding regarding the pension plans (paragraphs 3(a) to (d)) within 90 days of the regulation’s commencement. For the pension plan referenced in paragraph 3(e), the time frame extends to 120 days post-commencement. This timeline emphasizes the regulation’s intent to expedite the negotiation process, ensuring timely resolutions. The regulation is set to come into force on February 1, 2024, allowing stakeholders to prepare for the new regulations and facilitating a smoother transition and compliance with the outlined provisions.

By establishing clear protocols for negotiation and transfer of pension plans, the regulation aims to protect the interests of pension beneficiaries while providing a structured framework for the involved stakeholders.

New Brunswick (2024-3) January 25, 2024