The Government of Saskatchewan has introduced The Pension Benefits Amendment Act, 2022 to give Saskatchewan employers and Saskatchewan people more options to fund and access retirement savings.

“These changes to pension legislation add flexibility for plan sponsors, enhance pension safeguards, and provide more tools to enforce compliance,” Minister of Justice and Attorney General Bronwyn Eyre said. “These amendments will assist Saskatchewan employers in their efforts to help the hard-working residents of Saskatchewan prepare for retirement.”

Several of the changes introduced in The Pension Benefits Amendment Act, 2022 align provincial legislation with recent amendments to the federal Income Tax Act. These changes will support Saskatchewan residents who are members of defined contribution plans by giving employers the ability to offer new solutions that lessen the risk of retirees outliving their retirement income.

The amended legislation also provides increased flexibility for Saskatchewan employers. This includes the ability to establish solvency reserve accounts and to use letters of credit in lieu of solvency deficiency contributions (up to a capped maximum). The new provisions also remove liability of plan administrators that enter into an annuity buyout contract with an insurance company, provided certain conditions are met.

Further, the new provisions update and clarify the powers of the Superintendent of Pensions and enhance the Superintendent’s ability to enforce compliance and to deter behaviours that could harm plan members.