2020 Agreement Respecting Multi-Jurisdictional Pension Plans
The 2020 agreement changes the rules on legal pension relief. These changes are a response to the growing number of plan sponsors who apply risk reduction strategies such as buyback assets and differences in discharge rules between jurisdictions. The 2020 agreement provides: However, the fact that the rules of the subsidiary authority generally apply to the granting of legal relief when purchasing pensions, notes that the rules of the main authority with regard to: the general structure of the 2020 agreement remain unchanged from the 2016 agreement, insofar as it defines the areas in which the rules of the pension regulator (the pension regulator with which the plan is registered) unchanged from the 2016 agreement. whose right to the pension is applicable as a result of affiliation with the plan). The 2020 agreement contains issues that are governed by the provisions of the main authority`s pension law, including (but not only) the registration, financing and provision of certain information. Canada`s Department of Finance has announced the signing of the 2020 Agreement on Compliance with Multi-Judicial Pension Plans (Agreement 2020). The federal government, in collaboration with the governments of British Columbia, Alberta, Saskatchewan, Ontario, Quebec, New Brunswick and Nova Scotia, has signed the 2020 agreement to simplify and clarify the oversight of retirement plans in Canada with members in more than one jurisdiction. The agreement on compliance with multi-judicial pension plans (2020) between the aforementioned governments for 2020 came into force on 1 July 2020. It regulates the management and regulation of retirement plans with several jurisdictions, which are plans whose members have more than one jurisdiction. The 2020 agreement applies to pension plans under one of the Quebec, Alberta, Colombian, Colombian, New Brunswick, Nova Scotia, Ontario, Saskatchewan and Canadian pension authorities that have members subject to the legislation of several of these jurisdictions. The 2020 agreement replaces (i) the 2016 Multi-Legal Pension Plan Compliance Agreement (2016) signed in 2016 by the governments of British Columbia, Nova Scotia, Ontario, Quebec and Saskatchewan; (ii) the old 1968 agreement, signed by all provinces except Prince Edward Island; and (iii) similar bilateral agreements between the federal government and the provinces, to the extent that these previous agreements between the governments that signed the 2020 agreement apply. The 1968 mutual agreement and all applicable bilateral agreements between the federal government and the provinces remain in force for Manitoba and Newfoundland and Labrador. The aim of the 2020 agreement is to rationalize to a large extent the application of various provisions under the pension laws of the legal systems that are parties to the 2020 agreement, to plans of several jurisdictions.
The 2020 agreement defines how to determine which pension supervisory authority should be considered the most important competent authority in a jurisdiction (i.e. the jurisdiction that houses the large number of active members of the pension scheme).