Reforms to Manitoba’s Pension Benefits Act and accompanying regulations (Bill 8 and Regulation 63/2021) with a proclamation date of 1 Oct 2021, modernize the law, create a framework that protects individuals in times of financial hardship, and provide greater and easier access to locked-in funds.
Plan participation after normal retirement. Pension plans may permit an active member who has reached the plan’s normal retirement age to stop contributing to the plan and accruing benefits. At actual retirement, for defined benefit pension plans, the member will be entitled to receive at least the actuarial equivalent value of the defined benefit pension that would have been paid if the member had retired at the normal retirement age.
Division of pension assets in event of relationship breakdown. Parties will be able to divide pension assets up to 50%, rather than choosing between the currently mandated 50-50 split or no division.
Other changes. The legislation also addresses the filling of a nonactive voting representative on a pension committee, allows for specified multiemployer plans, clarifies the application of specific provisions, and includes other housekeeping changes.
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