The final report of the Alberta/British Columbia Joint Expert Panel on Pension Standards, titled Getting our Acts Together – Pension Reform in Alberta and British Columbia, was released to the public on November 28, 2008. The Report recommends a "fundamental reform of pension legislation" to achieve a balance between encouraging the establishment and maintenance of pension plans, and providing confidence in benefit security. If ultimately adopted by the governments and turned into legislation, many of the recommendations would have significant legal (and other) implications for pension plan sponsors and members. This Update highlights a number of the more significant recommendations and comments on several of these recommendations from a legal perspective.
The Alberta/British Columbia Joint Expert Panel (Panel) was originally appointed on October 19, 2007 with a mandate to conduct a full and independent public review of the Employment Pension Plans Act (Alberta) and the Pension Benefits Standards Act (British Columbia). Osler Calgary partner, Christopher Brown, served as Alberta co-chair of the Panel along with five other pension experts from the two provinces.
The recommendations in the Panel's final report Panel's final report are organized under six principal headings: (i) Objectives and Regulatory Framework; (ii) Governance and Investment; (iii) Funding and Benefit Security; (iv) Specific Pension Standards; (v) Related Legal and Other Frameworks; and (vi) The "ABC Plan."
The Panel states that its conclusions are an attempt "to balance the disparate views and interests of plan beneficiaries and employers, and the potentially contradictory goals of improved benefit security and higher participation." The Report also states that the Panel has constructed its recommendations as a package, intended to be taken as a whole, and encourages the governments and other readers to view the recommendations in that light.
A summary of the Panel's key recommendations is contained in the addendum to this Update. A complete list of the recommendations can be found in Appendix D to the Report. The Alberta and British Columbia governments are seeking written feedback on the Panel's recommendations by March 2, 2009.
To read the full Update on this Report, click here.
Michael Wolpert is a partner in the Calgary office of Osler's Pensions and Benefits Department. Kristin Smith is an associate in the Pensions and Benefits Department of the firm's Calgary office. Cheryl Rea is an associate in the Pensions and Benefits Department in the firm's Calgary office.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
