The new 2020 Agreement Respecting Multi-Jurisdictional Pension Plans (MJPPA) came into effect on July 1, 2020. Three new jurisdictions have signed the MJPPA: Federal, Alberta and New Brunswick. These jurisdictions join British Columbia, Saskatchewan, Ontario, Quebec and Nova Scotia as MJPPA members.

The new MJPPA replaces the 2016 MJPPA.

Manitoba and Newfoundland and Labrador have not signed the MJPPA. They follow the 1968 reciprocal agreement.

What is the MJPPA?

The MJPPA is a contract between the governments that sign it. It sets out how those jurisdictions’ pension laws will apply to a multi-jurisdictional pension plan. A multi-jurisdictional pension plan is one that provides benefits for plan members in two or more Canadian pension jurisdictions.

When does the MJPPA apply?

The MJPPA applies when the plan:

  • Is a multi-jurisdictional pension plan, and
  • Is registered with one of the participating jurisdictions, and
  • Has members in two or more participating jurisdictions.
Key changes under the 2020 MJPPA

The 2020 MJPPA and a summary of the changes from the 2016 agreement are on the Canadian Association of Pension Supervisory Authorities (CAPSA) website. We have summarized some key points below.

New pension authorities affected

MJPPA Schedule B now applies to three more pension jurisdictions, where those jurisdictions are either a major or a minor authority, and to pension plans registered in the applicable pension jurisdiction. A major authority is the jurisdiction with a higher number of members than any of the other MJPPA pension jurisdictions.

You can find Schedule B matters listed starting at page 35 of the MJPPA.

Plan registration by major authority

Plan registration lies with the major authority. This eliminates dual registration. This applies to Federal and Quebec pension plans, for example:

  • Where Quebec is a major authority and there are Federal employed members (outside of Northwest Territories, Yukon and Nunavut), or
  • When a Federal registered plan (outside of Northwest Territories, Yukon and Nunavut) is a major authority and has Quebec employed members.
Plan amendments follow major authority rules

Major authority rules govern the filing, the form and content of filing documents, deadlines and rules for notifying members. However, Schedule B doesn’t include advance notice prior to the amendment. 

Member booklets and plan summaries follow major authority rules

The major authority rules apply to disclosure requirements for member booklets and plan summaries, as well as disclosure deadlines. Any unique disclosure requirements for the three jurisdictions that have recently joined will apply.

Annual and biennial statements follow major authority rules

The major authority rules apply to disclosure requirements for annual and biennial statements, as well as disclosure deadlines. Any unique disclosure requirements in any of the three jurisdictions that have recently joined will be disclosed.

Federal spousal statements extend to minor authority members

Where a Federal plan is the major authority, minor authority members must also get a spousal statement. However, the obligation to send spousal statements is eliminated if the major authority has Federal members.

Federal investment disclosure extends to minor authority members

Where a Federal plan is the major authority, investment disclosure requirements extends to minor authority members. Conversely, the obligation to disclose the same investment information is not required if the major authority has Federal members.

What does this mean to you?

There may be changes to processes and plans. We are reviewing the 2020 MJPPA to identify any action needed. If there are impacts to plans or processes, we’ll send further communications with next steps. 

Questions?

Please contact your Sun Life Group Retirement Services representative.