Retirement Services - Saskatchewan Pension Legislation
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The Pension Benefits Act, 1992
Original: January 1, 1969
Reform: January 1, 1993
Year last amended: 2001
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Index
Benefit Splitting
Cash Availability at Termination of Employment
Definition of Spouse
Early Retirement
Eligibility
Employee Excess Contributions
Flexible Pension Plan
Indexing of Pensions
Integration with Governmental Plans
Minimum Employer Eontribution – 50% Rule
Minimum Interest Rate on Employee Contributions
Normal Retirement
Options Available on Pre-Retirement Death
Portability at Termination of Employment for a Member Entitled to a Deferred Annuity
Post-Retirement Death Benefits
Postponed Retirement
Pre-Retirement Death Benefits
Sex Discrimination
Vesting and Locking-In
Vesting at Normal Retirement Date
Disclaimer
Benefit Splitting
(Breakdown of marriage or of conjugal relationship)
- Benefits may be split in accordance with a court order or with an interspousal agreement pursuant to the Matrimonial Property Act on assignment of pension benefit entitlement (maximum 50%)
- Rules of evaluation and devolution in accordance with The Pension Benefits Act, 1992 and the Regulation
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Cash Availability at Termination of Employment
Plan may provide for refund of:
- 50% of pre-1994 employee required contributions, plus accrued interest, and
- commuted value of pension if annual pension* is less than 2% OF YMPE or if commuted value of pension* is less than 4% of YMPE
- Pension Plan assets as well as LIRA, LIF, and LRIF assets may be commuted to cash if the member or former member has a condition that is likely to considerably shorten that person’s life expectancy.
- Excess member contributions and excess transfer value (above CCRA limits) may paid in cash, as they are not subject to locking-in
*Excluding the refund made in 1. above
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Definition of Spouse
On the date of the member’s retirement or on the day of the member’s death, if earlier:
The person who is married to the member; or
If the member is not married, the person who has been continuously cohabitating with the member as his spouse for a least 1 year before the relevant time and who was still cohabitating with the member at the relevant time.
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Early Retirement
Within 10 years of normal retirement date.
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Eligibility
Full-time employees: 2 years of continuous service.
Part-time employees: 2 years of continuous service and annual earnings of at least 35% of YMPE, or 700 hours worked, in each of 2 consecutive calendar years immediately preceding membership.
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Employee Excess Contributions
- Reimbursed.
- Used to increase pension or to purchase a deferred life annuity
- Transferred to: another pension plan, an RRSP or a RRIF
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Flexible Pension Plan
No requirement.
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Indexing of Pensions
(Defined Benefit Plans)
No requirement.
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Integration with Governmental Plans
(Defined Benefit Plans)
Reduction on account of the OAS: prohibited except if pension after adjustment is greater than “small pensions” (see “Cash Availability at Termination of Employment”)
Reduction on account of the CPP/QPP: pro-rata formula required (35 years)
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Minimum Employer Contribution-50% Rule
(Defined Benefit Plans)
- At least 50% of commuted value of pension benefits accrued from January 1, 1969.
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Minimum Interest Rate on Employee Contributions
Defined Contribution Plan: fund rate of return based on market value of investments.
Defined Benefit Plan: fund rate of return or the average yield on personal 5-year term deposits with chartered banks over a recent period not exceeding 12 months.
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Normal Retirement
At the age determined by pension plan provisions.
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Options Available on Pre-Retirement Death
Spouse: RRP, LIRA, LIF, LRIF, annuity.
Dependent child/grandchild: cash, fixed term annuity to age 18.
Other beneficiary: cash.
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Portability at Termination of Employment for a Member Entitled to a Deferred Annuity
More than 10 years before normal retirement date.
Options:
- Transfer to another pension plan, a LIRA
- Purchase of a life annuity contract if the plan so provides.
- If has reached at the earliest age 55 or the early retirement age under the plan text, transfer to: a LIF, an LRIF
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Post-Retirement Death Benefits
Joint pension continues at 60% after death of member. Possibility to waive joint pension by spouse within 90 days of pension commencement.
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Postponed Retirement
(At the latest December 31 of the year in which the member reaches 69)
Membership may continue except if the member is receiving a pension.
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Pre-Retirement Death Benefits
Pre-1994 benefits: if surviving spouse, commuted value of vested pension, not less than member’s contributions with interest (locked-in).
Pre-1993 benefits: if surviving spouse, value equal to the greater of member’s contributions with interest, and 100% of commuted value of the vested benefits (locked-in).
If death after being eligible to early retirement, surviving spouse entitled to a life annuity equal to not less than 60% of the annuity the member would have received (locked-in).
If no surviving spouse, commuted value of vested benefits to the designated beneficiary, or failing that, to the estate (not locked-in).
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Sex Discrimination
Sex discrimination required = annuity rate based on sex
Sex discrimination prohibited = unisex annuity rate
Sex discrimination allowed = annuity rate based on sex or unisex annuity rate
Years of service before 1993: discrimination prohibited.
Years of service after 1992: discrimination prohibited.
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Vesting and Locking-In
(Excluding voluntary contributions and optional ancillary contributions)
Benefits accrued from 1969 to 1993: age plus service/plan membership = 45 (Minimum: 1 year of continuous service or plan membership).
Post-1993 benefits: 2 years of continuous service.
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Vesting at Normal Retirement Date
Entitlement to a pension vests at normal retirement date with respect to years of membership, regardless of whether the minimum vesting and locking-in requirements are met.
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Disclaimer
The information contained in this summary applies only to single employer Registered Pension Plans (RPPs). In addition, this information states the minimum rules provided under the pension legislation that governs RPPs. However, it does not state the maximum rules under the Income Tax Act (Canada) and its Regulations that also apply to RPPs.
The legislation and the regulations of this jurisidiction prevails over this summary. While every effort has been made to ensure the accuracy of the information, no warranty is expressed or implied as to the accuracy, adequacy or completeness of the information, and the CUMIS Life Insurance Company is not responsible for any errors, omissions, or from the results from the use of such information.
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