Pension asset rules for missing members

Summary#

The federal government published a proposal called the Regulations Amending the Pension Benefits Standards Regulations, 1985 (Persons who Cannot be Located). It sets rules for what pension plans must do with pension money when a member can’t be found, and for how long the money is held. The notice was published on June 24, 2023 and the public can comment for 30 days.

What it does#

• Adds new rules to the Pension Benefits Standards Regulations, 1985 about transfers of pension assets when a plan member cannot be located.
• Defines who counts as the relevant person for a missing-member case (the member themselves, or if deceased their survivor, designated beneficiary, or estate representative).
• Lists the exact information a plan administrator must give to a "designated entity" when assets are transferred. That includes:
  • the person’s name, spouse/common-law partner and designated beneficiary (if recorded),
  • postal and email addresses on file,
  • date of birth and social insurance number,
  • dates when they joined and stopped accruing benefits,
  • the transfer date and the amount transferred,
  • the pension plan’s name and registration number,
  • the names of employers that contributed, and
  • the name and address of the plan administrator or approved trustee/custodian at the date of transfer.
• Specifies what the designated entity may publish to try to locate the person. That list is similar but does not include the social insurance number or date of birth for publication.
• Sets how long the designated entity must keep money after transfer:
  • 30 years if the amount is under $1,000, and
  • 100 years for any larger amount.
• Notes this is a proposed measure. It will come into force when section 142 of the Budget Implementation Act, 2021, No. 1 comes into force (or on the day the regulations are registered if that is later).

Who's affected#

• Plan members who cannot be contacted or located, and their survivors or beneficiaries.
• Employers that sponsor defined-benefit or defined-contribution pension plans.
• Plan administrators, trustees and custodians who must provide the listed information and transfer assets.
• The unnamed "designated entity" that will receive, hold, and publish limited information to try to find missing members.
• Department of Finance (sponsor of the proposal) and anyone who wants to comment on the rules during the consultation period.

If it is unclear who the designated entity will be or exactly how publications will be made, the notice does not name that entity or give detailed publication mechanics.

Why it matters#

• These rules affect what happens to unclaimed pension money. They aim to make it clearer how plans hand off assets when members can’t be found.
• The regulations require more detailed information to be passed to whoever is searching for missing members. That could improve chances of reuniting people with their pensions.
• There are privacy implications: plan administrators must provide sensitive details (like social insurance numbers) to the designated entity, though those particular items are not listed for public publication.
• The very long holding periods (30 years or 100 years) mean money may be tied up for decades before being dealt with under these rules.
• Because this is a proposal (Part I), the public and interested organizations can comment during the 30-day consultation window before any final rule is made.