P.E.I. introduces Pension Benefits Act

The government of Prince Edward Island has introduced a new Pension Benefits Act that sets rules and standards for employers with pension plans.

The proposed act obligates employers with pension plans to register those plans and to make financial disclosure on a regular basis. It also establishes the circumstances in which employees may access their retirement funds.

“The Pension Benefits Act will bring this province into a harmonized Canadian pension regulatory system and give Islanders with pension assets similar minimum rules and standards that Canadians in other jurisdictions already have,” said Justice and Public Safety Minister Doug Currie.

The act has been introduced for first reading. An extensive consultation with stakeholders will take place throughout the upcoming months. Once the formal consultation process is complete, the bill may be brought forth for second reading in spring 2011.

So far, more than 35 interested parties have identified themselves as stakeholders including employers, pension plan administrators, pension plan consultants, individual plan members and investment advisors.