BRITISH COLUMBIA MINISTRY OF LABOUR ANNUAL REPORT 1996/1997

Labour Programs Division

Pension Standards Branch

Legislative Authority:

• Pension Benefits Standards Act

Mandate:

The Superintendent of Pensions and the Pension Standards Branch are responsible for the administration of the Pension Benefits Standards Act. The Act is designed to protect the interests of British Columbia pension plan members by setting minimum standards for British Columbia pension plans in areas such as eligibility, vesting, portability, funding, disclosure to members, and approving locked-in Registered Retirement Savings Plan (RRSP), and Life Income Fund (LIF) contracts.

The Act has been in force since January 1, 1993, and the Pension Benefits Standards Regulations came in to force on February 1, 1994. The Regulations required that existing British Columbia pension plans apply to the Superintendent for registration by April 5, 1994.

Major Responsibilities:

• To review all plans registered by the Superintendent of Pensions;
• To ensure amendments are made to plans not in compliance with the Act;
• To provide advice and information to pension plan members and plan administrators;
• To administer the Pension Benefits Standards Act and Regulations that protect the interests of B.C. pension plan members;
• To monitor B.C. pension plans, and respond to inquiries from pension plan sponsors, members and their representatives and other interested parties;
• To enhance the retirement income security of British Columbians; and
• To provide advice to the Minister and Superintendent on the administration of the Act, and legislative changes, and to promote awareness of pensions and retirement income planning among employers and employees, through the Pension Benefits Advisory Council (as established under section 3 of the Act).

Major Clients Served:

• Pension plan members
• Pension administrators

Revenue

1996/97 Highlights

• In the 1996/97 fiscal year: 474 pension plans were registered; 51 plans were reviewed and deficiencies identified; 19 plans were terminated and wound up; and 25 plans were pending review at the fiscal year end. The plans pending review were mostly transfers that were previously regulated in.
• A total of 917 plans were registered with the branch at the year end. Plans are monitored through annual information returns.
• The branch responded to over 3,000 written inquiries and requests for interpretation of the Act.
• A few pension plans required close scrutiny during the year, with the branch actively participating in the resolution of funding problems and other issues.
• The branch received and reviewed 69 new registered retirement savings (RRSP) contracts and 32 new life-income fund (LIF) contracts. The Superintendent’s list of approved locked-in registered retirement savings and life income funds has a total of 387 RRSP contracts and 156 LIF contracts.
• In December 1996, the branch changed location from Burnaby to Vancouver, where it now shares facilities with the Labour Relations Board.
• A new pension management information system and database were created and implemented.

The branch set up a website on the internet, at http://www.labour.gov.bc.ca/psb.

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