BILL C-78

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

INTERPRETATION

(a) the Canadian Forces Pension Fund or the Canadian Forces Superannuation Investment Fund within the meaning of the Canadian Forces Superannuation Act, or, if regulations are made under section 59.1 of that Act, a fund established under the regulations;

(b) the Public Service Pension Fund or the Public Service Superannuation Investment Fund, within the meaning of the Public Service Superannuation Act; or

(c) the Royal Canadian Mounted Police Pension Fund or the Royal Canadian Mounted Police Superannuation Investment Fund, within the meaning of the Royal Canadian Mounted Police Superannuation Act.

CONSTITUTION OF THE BOARD

OBJECTS AND POWERS

(a) to manage amounts that are transferred to it under subsections 54(2) and 55.2(5) and section 59.4 of the Canadian Forces Superannuation Act, subsections 43(2) and 44.2(5) of the Public Service Superannuation Act and subsections 28(2) and 29.2(5) of the Royal Canadian Mounted Police Superannuation Act in the best interests of the contributors and beneficiaries under those Acts; and

(b) to invest its assets with a view to achieving a maximum rate of return, without undue risk of loss, having regard to the funding, policies and requirements of the pension plans established under the Acts referred to in paragraph (a) and the ability of those plans to meet their financial obligations.

MANAGEMENT

Board of Directors

(a) a person who is less than 18 years of age;

(b) a person who is of unsound mind and has been so found by a court in Canada or elsewhere;

(c) a person who has the status of a bankrupt;

(d) a person who is not a natural person;

(e) a person who is an agent or employee of Her Majesty in right of Canada;

(f) a person who is a member of the Senate or House of Commons of Canada or a member of a provincial legislature;

(g) a person who

(i) is entitled to or has been granted a pension benefit under the Public Service Superannuation Act, the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act,

(ii) is entitled to or has been granted a superannuation or pension benefit of a prescribed kind that is payable out of the Consolidated Revenue Fund and is chargeable to a Superannuation Account or another account in the accounts of Canada or is payable out of a fund, or

(iii) is subject to a superannuation or pension fund or plan under which he or she may become entitled to a benefit referred to in subparagraph (i) or (ii);

(h) a person who is an agent or employee of the government of a foreign country or any political subdivision of a foreign country; and

(i) a person who is not a resident of Canada.

(a) on an annual basis, establish written investment policies, standards and procedures for each fund that the Board manages;

(b) monitor the officers and employees of the Board to ensure compliance with the investment policies, standards and procedures established under paragraph (a);

(c) prepare or have prepared financial statements for each fund on a quarterly and on an annual basis in accordance with this Act;

(d) establish procedures for the identification of real or potential conflicts of interest and procedures to resolve those conflicts;

(e) establish a code of conduct for officers and employees of the Board; and

(f) designate a committee of the board of directors to monitor application of the conflict of interest procedures and the code of conduct.

(a) adopt, amend or repeal by-laws;

(b) establish the Board's investment policies, standards and procedures;

(c) fill a vacancy in a committee of directors;

(d) appoint officers to the Board or fix their remuneration; or

(e) approve the annual financial statements of the Board and any other financial statements issued by the Board.

Directors

(a) an independent chairperson appointed by the Minister after consulting with the Minister of National Defence and the Solicitor General of Canada who, at the time of appointment,

(i) is not entitled to nor has been granted a pension benefit under the Public Service Superannuation Act, the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act,

(ii) is neither entitled to nor has been granted a superannuation or pension benefit of a prescribed kind that is payable out of the Consolidated Revenue Fund and is chargeable to a Superannuation Account or another account in the accounts of Canada or is payable out of a fund, and

(iii) is not subject to a superannuation or pension fund or plan under which he or she may become entitled to a benefit referred to in subparagraph (i) or (ii);

(b) two members appointed by the Minister, after the Minister has received recommendations from the advisory committee referred to in section 41 of the Public Service Superannuation Act, one of whom must represent persons employed in the Public Service within the meaning of that Act;

(c) one member appointed by the Minister who is in receipt of a pension under any of the Canadian Forces Superannuation Act, the Public Service Superannuation Act and the Royal Canadian Mounted Police Superannuation Act;

(d) two members appointed by the Minister of National Defence after that minister has received recommendations from the advisory committee referred to in section 49.1 of the Canadian Forces Superannuation Act; and

(e) two members appointed by the Solicitor General of Canada after that minister has received recommendations from the advisory committee referred to in section 25.1 of the Royal Canadian Mounted Police Superannuation Act.