Vol. 145, No. 8 — April 13, 2011
SI/2011-21 April 13, 2011
JOBS AND ECONOMIC GROWTH ACT
ARCHIVED — Order Fixing April 1, 2011 and July 1, 2011 as the Dates on which Certain Sections of the Act Come into Force
P.C. 2011-447 March 25, 2011
His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 1827 of the Jobs and Economic Growth Act, chapter 12 of the Statutes of Canada, 2010, hereby fixes
- (a) April 1, 2011 as the day on which sections 1786 and 1790, subsections 1791(1) to (4), sections 1795 and 1812, subsections 1815(2) and (3) and subsections 1816(4) to (7), section 1817 and subsections 1820(1), (9) and (11) of that Act come into force; and
- (b) July 1, 2011 as the day on which section 1787, subsection 1791(5), sections 1800, 1802 and 1805 to 1809, subsections 1813(1) and 1815(1) and sections 1818, 1822 and 1823 of that Act come into force.
(This note is not part of the Order.)
To fix April 1, 2011, and July 1, 2011, as the dates on which certain sections of the Jobs and Economic Growth Act (the Act) come into force.
These amendments seek to improve the federal private pension framework.
On July 12, 2010, the Act received Royal Assent. It included a number of amendments to the Pensions Benefits Standards Act, 1985. The majority of these amendments came into force with Royal Assent of the Act. However, some enabling provisions of the Act require that regulations be brought into force. This Order in Council brings into force a number of the remaining amendments needed to support the implementation of the Regulations Amending Certain Regulations Made Under the Pension Benefits Standards Act, 1985. This Order in Council also brings into force amendments related to the calculation of benefits, notably related to immediate vesting of benefits.
The amendments to the Pension Benefits Standards Act, 1985, brought into force on April 1, 2011, with this Order in Council permit plan sponsors to secure properly structured letters of credit in lieu of making solvency payments to the pension plan, require plan sponsors to fully fund pension benefits on plan termination and permit plan members and retirees of a distressed pension plan to negotiate their own funding arrangements to facilitate a plan restructuring. The amendments that will be brought into force on July 1, 2011, will affect the way that benefits are calculated, notably the amendments make vesting immediate upon membership in a pension plan.
The implementation of the amendments to the Pension Benefits Standards Act, 1985 made through the Act is the result of a wide consultation conducted in 2009 by the Department of Finance. The amendments incorporate, in a balanced fashion, comments and suggestions that were made by various stakeholders.
Financial Sector Division