Office of the Superintendent - Pension Commission

OSPC - FAQS - Overview of Manitoba Pension Laws

Benefit Security

1. Can my pension plan have different requirements for plan membership, contributions, or plan options for men and women?

   No. Sex discrimination by plans is prohibited under the act. This also applies if your pension is purchased from an insurance company.

2. If my employer goes bankrupt, what happens to my pension?

   If you belong to a defined benefit plan, which is fully funded, your benefits are not affected. If the plan is not fully funded, your benefits may be reduced.

   If you belong to a defined contribution plan, your benefits are not likely to be affected by a bankruptcy, unless your employer has not been making the required contributions. Also, benefits may have to be reduced slightly to cover the costs associated with closing down the pension plan.

3. What can I do if my pension plan closes down or goes bankrupt and my pension is reduced?

   If you are part of a pension plan that goes bankrupt, you may not have any recourse or options.

4. Is my pension fully guaranteed?

   Pensions are not guaranteed by this legislation. The act requires employers to adequately fund all benefits earned by members, and to make special payments to replace any shortfall in funds.

   The act states that plan administrator must establish investment guidelines for the prudent investment of pension funds. It also states that pension funds must be held by a recognized fund holder, such as trust company, group of trustees, or life insurance company.

5. Are my pension funds protected from creditors?

   Funds in a pension plan, LIRA, LIF or LRIF are protected against assignment or seizure. As a result, funds can not be used as collateral for a loan, or used to pay off debts of any kind.

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