N.S. Reg. 232/2024 amends the Pension Benefits Regulations under the Pension Benefits Act (Chapter 41 of the Acts of 2011). The amendment introduces changes to life income funds (LIFs), pension statements, and various technical provisions, set to take effect on April 1, 2025.

Key provisions include updates to definitions, such as the revised definition of LIF, which now incorporates both the original “Schedule 4: Nova Scotia LIF Addendum” and a new “Schedule 4A: Nova Scotia LIF Addendum,” providing governing rules for LIFs. The definition of “owner” has been expanded to include former members who have purchased an immediate life annuity, and “physician” now includes current and retired members of a pension plan, in addition to former members.

The amendment also introduces new requirements for biennial pension statements to be provided to both former and retired members. Administrators must now issue statements every two years to former members, detailing essential information such as the pension plan’s registration number, the member’s name and birthdate, pre-retirement death benefits, and retirement eligibility dates, along with the plan’s funding status and transfer ratio for defined benefit plans. Retired members will receive similar statements, covering their pension form, indexing or bridging benefits, integration with federal programs (e.g., CPP, QPP, OAS), and updates on funding status, including solvency deficiencies and surplus treatment.

Further revisions affect the withdrawal and transfer of pension funds, including a new provision allowing LIF owners aged 55 or older to withdraw up to 50% of the market value of their LIF assets, provided the transfer is from specific types of pension funds. However, assets transferred from a variable benefits account cannot be withdrawn. The withdrawal process must include an application within 60 days, along with documentation verifying the source of the funds. Additionally, the amendments specify that contracts establishing LIFs must comply with existing regulations before April 1, 2025, while contracts purchased after this date must include provisions from the new “Schedule 4A: Nova Scotia LIF Addendum,” and financial institutions must comply with the amended rules.

Specific provisions are introduced for the Public Service Superannuation Plan and the Teachers’ Pension Plan, detailing transfer rights for members and their spouses under these plans. New reporting requirements also mandate that administrators provide clear information on the funding status of multi-employer or defined benefit pension plans, including the treatment of solvency deficiencies, surpluses, and the risk of benefit reductions if assets are insufficient to cover liabilities on wind-up.

These amendments to the Pension Benefits Regulations aim to improve the transparency and management of pension funds, with significant improvements in communication with former and retired members, greater withdrawal options for LIF owners over 55, and updated contract and funding requirements for pension plans.

Nova Scotia (232/2024) November 15, 2024