On November 3, 2021, New Brunswick introduced Bill 71, An Act to Amend the Pension Benefits Act (Bill 71). Bill 71 introduces several changes of interest to plan administrators, employers and plan members. If you have pension plans registered in New Brunswick or if you have members employed in this province, you’ll have new or changed plan sponsor accountabilities. The changes are summarized below.

What are the changes?

  • Shortened qualification periods for pension entitlements.
    Before the change, a plan could have plan sponsor contributions plus interest locked-in before or at the minimum prescribed under the Pension Benefits Act (the Act). That prescribed minimum is 5 years of service or 2 years of membership (whichever is earlier). However, member contributions with interest could never be locked-in sooner than this minimum prescribed period. The change means a plan can now have member contributions locked-in sooner than the minimum prescribed under the Act, for the members employed in New Brunswick. Additional voluntary contributions continue not to be subject to locking-in. 
  • Remedies for administrative errors by employer.
    When employer contributions deposited are causing an over-contribution, the plan administrator is now required to obtain approval from the Superintendent of Pensions before the money can be refunded. This must be done within a prescribed timeline. Previously this approval wasn't required. When employee contributions have been deposited into the pension plan due to an administrative error or to avoid revocation of the plan’s registration, the employee contributions can continue to be refunded without requesting prior approval. 
  • Member statements and communication.
    Bill 71 now allows, but does not require, plan administrators to disclose member information by electronic means if a member consents. This information includes, for example, statements, copies of non-confidential documents and information relating to the plan. Sun Life isn't making any changes to its method of communication.
  • Right to refrain from membership.
    The change allows all employees employed in New Brunswick (even those who're already participating under the pension plan) the right to refuse membership in a pension plan on religious grounds. If an employee doesn’t wish to join the pension plan based on their article of faith, they’ll need to complete a prescribed form.
  • Eligibility for membership in a pension plan
    An employee employed in New Brunswick can become a plan member sooner than after 2 years of full-time employment if set out in plan text.

When did these changes come in force?

On December 17, 2021.

Sun Life will be making the necessary changes to comply with Bill 71.

Questions?

Please contact your Sun Life Group Retirement Services representative.