Bill C-513

1st Session, 41st Parliament,

60-61-62 Elizabeth II, 2011-2012-2013

house of commons of canada

BILL C-513

An Act to promote and strengthen the Canadian retirement income system

Whereas the Parliament of Canada recognizes that a strong retirement income system is essential to the well-being of citizens and permanent residents of Canada and the overall health of the Canadian economy and that the Canadian retirement income system is built on a combination of government programs, workplace plans and individual savings;

And whereas the Parliament of Canada affirms that Canadians have the right to a retirement income system that promotes the goals of adequacy, transparency, affordability, equity, flexibility, security and accessibility and wishes to enshrine these principles in a Bill of Rights which is to reflect the respect of Parliament for its constitutional authority and ensure the protection of these principles in Canada;

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

SHORT TITLE

1. This Act may be cited as the Retirement Income Bill of Rights.

INTERPRETATION

2. The following definitions apply in this Act.

“federal law” means the whole or any portion of an Act of Parliament or a regulation, order or other instrument issued, made or established in the exercise of a power conferred by or under an Act of Parliament.

“government program” means Old Age Secu- rity, the Guaranteed Income Supplement, the Canada Pension Plan, the Quebec Pension Plan or any similar programs or successors to these programs.

“individual” means a Canadian citizen or a permanent resident of Canada.

“pension income” means income paid or payable to an individual in retirement from a retirement income plan.

“person” includes a corporation, trust, partnership or fund, an unincorporated association or organization, or Her Majesty in right of Canada or of a province or an agency thereof.

“retirement” means the state of being retired and refers to the period following full or partial withdrawal from one’s occupation.

“retirement income plan” means a pension plan, a retirement savings plan, a plan of insurance or a savings vehicle, whether funded or not, of which an individual is a beneficiary and which provides or is intended to provide income replacement during retirement, other than a government program or a personal savings account that is not recognized as a retirement savings arrangement or plan of insurance under the Income Tax Act.

“workplace plan” means a retirement income plan sponsored by an individual’s employer.

APPLICATION

3. The provisions of this Act apply only to matters coming within the legislative authority of the Parliament of Canada.

RECOGNITION AND DECLARATION OF RIGHTS

4. (1) Every individual has the right to accumulate sufficient pension income in a retirement income plan to provide for a lifestyle in retirement that the individual considers adequate, subject to any reasonable restrictions imposed by a federal law.

(2) For the purpose of subsection (1), reasonable restrictions do not include a direct or indirect restriction of an individual’s right to accumulate pension income or to participate in a retirement income plan based on a personal characteristic such as age, sex, national origin or occupation.

5. Every individual must have the right to determine how and when to accumulate pension income, except that an individual who participates in a workplace plan may be required by that plan to save for retirement.

6. Every individual must have the same opportunity to accumulate pension income as any other individual, without regard to age, sex, national origin or occupation.

7. Every individual who participates in, contributes to or receives benefits from a retirement income plan should be entitled to receive full, accurate and timely disclosure of any material risks to the individual under the retirement income plan, including the risk of non-payment of or reduction of benefits, and to be informed of the options that may be available to that individual in the event of the non-payment or reduction of benefits.

8. Every individual is entitled to receive investment advice from an advisor who has no conflict of interest in terms of providing advice in connection with a retirement income plan in which the individual participates, contributes or receives benefits from, or, if the advisor does have a conflict of interest or if a reasonable person would believe that the advisor does have a conflict of interest, the individual is entitled to full disclosure of the conflict of interest and the risks the individual has or may have in connection with such conflict of interest.

9. Every individual who participates in, contributes to or receives benefits from a retirement income plan is entitled to receive, in clear and concise language, all the information the individual requires to understand his or her rights, obligations and choices under the retirement income plan, including

(a) the regular disclosure of all costs paid by or charged to the individual, directly or indirectly, in connection with the individual’s participation in the retirement income plan;

(b) the regular disclosure of contributions or premiums made to the retirement income plan, or benefits accrued under the retirement income plan, as applicable, in connection with the individual’s participation in the retirement income plan;

(c) the regular disclosure of investment gains or losses pertaining to the individual’s entitlement under the retirement income plan, if applicable;

(d) full, accurate and timely information regarding the investment options under a retirement income plan, if applicable; and

(e) full, accurate and timely disclosure of any options or elections available to the individ- ual under the retirement income plan.

10. Every person that administers a retirement income plan

(a) must exercise the standard of care a prudent professional would exercise in the administration of the retirement income plan;

(b) may retain one or more competent professionals to assist the person in the administration of the retirement income plan; and

(c) must appropriately supervise the work performed by such professionals in connection with the retirement income plan.

11. Every federal law that governs the establishment or operation of a retirement income plan must promote individuals’ access to training in financial literacy and retirement planning.

12. Every federal law that directly or indi- rectly applies to a retirement income plan must be interpreted, construed and applied so as to promote and give effect to the principles and rights set out in this Act and so as not to abrogate, abridge or infringe or to authorize the abrogation, abridgement or infringement of any of the principles and rights set out in this Act.

DUTY TO EXAMINE

13. (1) Subject to subsection (3), the Minister of Justice must, in accordance with such regulations as may be made by the Governor in Council, examine every regulation transmitted to the Clerk of the Privy Council for registration pursuant to the Statutory Instruments Act and every Bill introduced in or presented to the House of Commons by a Minister of the Crown, in order to ascertain whether any of the provisions thereof are inconsistent with the purposes and provisions of this Act.

(2) The Minister of Justice must report any inconsistency referred to in subsection (1) to the House of Commons at the earliest possible opportunity.

(3) A regulation need not be examined in accordance with subsection (1) if prior to being made it was examined as a proposed regulation in accordance with section 3 of the Statutory Instruments Act to ensure that it was not inconsistent with the purposes and provisions of this Act.

REGULATIONS

14. The Governor in Council may make such regulations as are necessary to give effect to the provisions of this Act.