Pension Benefits Act in Nova Scotia
The Pension Benefits Act applies to every pension plan that is provided for people employed in Nova Scotia. The Minister of Environment and Labor has general supervision and management of the act and its regulations. The act does not apply to employees engaged in work subject to federal jurisdiction, pension plans established for provincial public servants, teachers, judges or members of the legislature.
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Objective
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Nova Scotia's Pension Review Panel states that the act's objective is to safeguard employee entitlements to benefits promised under pension plans. It seeks to ensure that benefits will not be lost; employees have appropriate access to benefit information; employees are protected in the event of discontinuation of employment or retirement; spouses or beneficiaries receive benefits in the event of an employee's death or marriage breakdown; and pension promises are sustainable.
Administration and Registration
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According to the act, a pension plan is not eligible for registration unless it is administered by the employer; a pension committee composed of one or more representatives of the employer or members; the insurance company that provides the pension benefits; or a board, agency or commission made responsible by an enactment for administration of the pension plan. Other stipulations apply.
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Membership
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The act states that every employee of a prescribed class of employees for whom a pension plan is established is eligible to be a member. Any employee in a prescribed class of employees can apply to become a member after 24 months, or less if specified in the plan, of continuous full-time employment.
Separating Spouses
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When couples split up, they must divide their assets. According to Nova Scotia's government, if one of them earned a pension benefit during their marriage, registered domestic partnership, or common-law partnership, then the other person may be entitled to a share. The act outlines various scenarios for when a pension or particular pension benefit may be divided.
Legislative Changes
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In 2008, the act was amended. The Pension Review Panel states that changes were made to early retirement benefits; solvency funding requirements for municipalities, universities and multiple-employer pension plans; and to terminal funding for defined benefit plans. A defined benefit plan is one in which sponsors promise members a given pension upon retirement.
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References
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