LEGISLATION
FEDERAL UNCLAIMED PENSION BALANCES FRAMEWORK, EFFECTIVE JANUARY 1, 2027
Amendments to the Pension Benefits Standards Act, 1985 passed in 2021, and supporting amendments under the Pension Benefits Standards Regulations, 1985, will take effect on January 1, 2027.
The Act amendments will permit the administrator of a terminated federally regulated pension plan to transfer to the Bank of Canada assets (including a portion of any plan surplus) relating to the pension benefit credit of unlocated members. The Bank of Canada will then administer the pension assets of those members as the designated entity under the Act.
The Regulation amendments set out:
- Information plan administrators must provide to the Bank of Canada regarding unclaimed pension balances of unlocatable beneficiaries
- Information the Bank of Canada can publish on a public database to facilitate the search for unclaimed pension assets
- Who qualifies as an eligible claimant of unclaimed pension assets – i.e., the owner of the balance, their agent or mandatory, and survivors or designated beneficiaries
- Prescription periods – i.e., that the Bank of Canada will administer unclaimed pension assets for 30 years (balances under $1,000) or 100 years (balances over $1,000) before they are transferred to the Crown