The Government of Canada remains committed to supporting the retirement income security of Canadians, and is working with provinces to harmonize the regulation of multi-jurisdictional pension plans in Canada and help ensure equitable benefit protection for all members and retirees.
Today, Minister of Finance Bill Morneau announced that the Government of Canada, together with the governments of British Columbia, Alberta, Saskatchewan, Ontario, Quebec, New Brunswick and Nova Scotia, has signed the 2020 Agreement Respecting Multi-Jurisdictional Pension Plans.
Some pension plans have members in more than one jurisdiction, which makes the plan subject to the pension benefits standards legislation of multiple jurisdictions. This agreement, a cooperative effort between the federal government and the provinces, serves to simplify and clarify the supervision of pension plans in Canada with members in more than one jurisdiction.
This agreement was developed by the Canadian Association of Pension Supervisory Authorities (CAPSA) in order to coordinate and harmonize pension regulation across Canada and establish a clear framework for the administration and regulation of these plans. It will come into effect on July 1, 2020, and will apply to the vast majority of multi-jurisdictional plans in Canada.
“I am very pleased to announce the signing of this agreement with provinces that will reduce the regulatory burden for multi-jurisdictional pension plans in Canada. The signing of the 2020 Agreement supports the government’s commitment to a secure and dignified retirement for Canadians by contributing to a regulatory landscape that supports private workplace pensions.”
– Bill Morneau, Minister of Finance
Multi-jurisdictional pension plans are employment-based pension plans with members in more than one Canadian jurisdiction, either federal or provincial.
According to Statistics Canada, as of January 1, 2018, there were approximately 2,500 multi-jurisdictional pension plans operating in Canada, which account for approximately 15 percent of all pension plans registered across the country.
The 2020 Agreement replaces a 2016 agreement between five provinces. It is the first such agreement involving the Government of Canada.