How do agreements regarding multi-jurisdictional pension plans work?
The first Memorandum of Reciprocal Agreement was signed between representatives of the provinces in 1968 and sets out rules for how multi-jurisdictional pension plans in Canada are to be regulated between provincial pension regulators. Similar federal-provincial bilateral agreements have also been signed between the federal government and provinces other than Quebec and Newfoundland and Labrador since 1968.
The bilateral agreements require that a multi-jurisdictional plan be registered with only one jurisdiction's pension regulator, which is the pension regulator for the jurisdiction that has the most active plan members. In the absence of such an agreement, multi-jurisdictional plans would need to register in each jurisdiction in which they have members. The bilateral agreements also require the pension regulator with which the plan is registered (called the "major authority") to apply the legislation of the "minor authorities" and exercise their regulatory powers.
These bilateral agreements remain in effect until July 1, 2020 when most will be replaced by the recently announced 2020 Agreement Respecting Multi-jurisdictional Pension Plans (the 2020 Agreement). The bilateral agreement with Manitoba will remain in effect as they are not a signatory to the 2020 Agreement. There is no bilateral agreement between the federal government and Newfoundland and Labrador and they are also not a signatory to the 2020 Agreement.
The 2020 Agreement provides that certain provisions of the major authority's legislation are to apply to the multi-jurisdictional pension plan, instead of the requirements of the minor authorities' legislation. Please refer to question 3 for more details.