Bank of Canada pension plan amendment

Summary#

The Bank of Canada updated By‑law 15 (the Bank of Canada Pension Plan) to clarify how pension rights are handled for employees who moved to EDS Canada Inc. or its successors after an outsourcing. The changes were approved by the Bank’s board on April 22, 2020, certified on April 24, 2020, and take effect retroactively from January 1, 2020 (publication in the Canada Gazette followed).

What it does#

• Clarifies that pension benefits for these workers will be treated under section 30 of the Pension Benefits Standards Act (PBSA), and that EDS Canada Inc. or any later buyer counts as a “successor employer.”
• Says an “affected member” (someone who accepted an employment offer with EDS Canada Inc. under the outsourcing agreement) remains an active Plan member until a defined “determination date.”
• Changes the wording that previously named “EDS” so it instead refers to “the successor employer.”
• Redefines “affected member” to specifically mean those who accepted the EDS Canada Inc. offer under the outsourcing agreement.
• Redefines “determination date” as the date the affected member first of: retires from the successor employer, leaves that employer, or dies — and allows an affected member who has reached pensionable age to elect to start an unreduced immediate pension even if still employed by the successor employer (but the pension start date cannot be earlier than January 1, 2020 if employment has not ended).
• Redefines “successor employer” to mean EDS Canada Inc. and any entity that later acquired all or part of its business, and updates a French term in the by‑law to match the change.

Who's affected#

• Employees who accepted an offer to work for EDS Canada Inc. under the outsourcing agreement (these are called “affected members” in the by‑law).
• The Bank of Canada pension administrators and payroll staff who apply the plan rules.
• EDS Canada Inc. and any later company that acquires its business (the “successor employer”).
• It is unclear from this notice whether any other groups are affected; the changes focus on the specific outsourcing cohort.

Why it matters#

• The changes protect people who moved to EDS Canada Inc. by making clear their service with a successor employer counts toward Bank of Canada pension entitlement.
• They let pensionable affected members choose to start an unreduced pension even if they remain employed by the successor employer, subject to the plan’s timing rules.
• The clearer definitions reduce the risk of disagreement about who is a “successor employer” and who remains an active plan member after outsourcing.