The British Columbia government is planning to create a new defined contribution pension plan that could cover all workers in the province.

The province’s finance ministry announced Monday that amendments to the province’s pension legislation, the Pension Benefits Standards Act, will pave the way for the creation of a new private-sector pension plan that could cover all B.C. workers. The amendments come in response to the recommendations on an expert panel struck by the governments of B.C. and Alberta to study the issue last year.

Last October, B.C.’s government announced that it would spearhead the development of a privately financed, DC plan that would be available to all employers, employees and self-employed workers in B.C.. And, in November, the Joint Expert Panel on Pension Standards recommended that the governments of B.C. and Alberta examine the feasibility of establishing a multi-employer pension plan in the two provinces.

Following the panel’s recommendations, the proposed legislative amendments contain technical changes that will enable B.C.’s pension standards to apply to the new private sector pension plan. Once established, the plan will operate at arm’s length from government, and the amendments will come into force (expected in 2010).

Other amendments to the legislation broaden the provision that allows access to pension funds for medical reasons to cover any disability or terminal illness that is likely to considerably shorten the individual’s life, based on a doctor’s certification.

IE