An asset transfer occurs when all or any part of the assets of a pension plan are transferred to another pension plan. This can occur between pension plans with different employers and between pension plans established for the same employer. Administrator’s must obtain the Superintendent’s permission prior to the transfer of any part of the assets of a pension plan that relate to defined benefit provisions to another pension plan. Transfers made as a result of a portability option under section 26 of the PBSA do not require the Superintendent’s permission.
An asset transfer from a pension plan can occur for a number of reasons including a sale or other transfer of business, a merger or amalgamation as part of a business rearrangement of pension plans or as a result of a transfer of individual members between plans.