British Columbia Pension Legislation Update – Order in Council No. 153 (2026)

In a prior post, we discussed upcoming reforms in British Columbia pension legislation resulting from Bill 33: Pension Benefits Standards Amendment Act, 2023 (“Bill 33”), and what plan administrators and sponsors could expect (see: “Changes to BC Pension Legislation on the Horizon".

The province has now implemented most of these reforms through Order in Council No. 153 ("OIC 153"), which introduces amendments to the regulatory framework under the Pension Benefits Standards Act (British Columbia) and its regulation. OIC 153 also includes additional regulatory changes beyond those previously announced.

The summary below highlights the key changes in OIC 153, followed by select discussion points and key takeaways.

Summary of Changes Coming into Force -
Effective Dates and Key Impacts

Plans with Defined Benefit (DB) or Target Benefit (TB) Provisions

Apr. 30, 2026 - Plan Wind-Up

Changes the filing requirements for solvency deficiencies following plan wind-up, with actuarial valuations required each year (for the most part) until deficiencies are eliminated within five years; introduces administrative penalties for non-compliance. Additional information about this update is provided below.

Apr. 30, 2026 - Target benefit ratio (TB plans only)

Requires the target benefit funded ratio to be applied consistently to all transfers and payments to members, including unlocked amounts.

Oct. 30, 2026 - Commuted value transfer rules

Requires plans to offer both:

a transfer to a personal retirement income arrangement; and
a transfer to an insurer to purchase an annuity.

Oct. 30, 2026 - Surviving spouse option

Requires plans to provide a surviving spouse the option to elect a pension where a member dies before pension commencement. Therefore, if a plan member passes away before starting their pension, their spouse can choose to receive ongoing pension payments rather than being forced to accept a one-time lump-sum payout.

Oct. 30, 2026 - Discharge for annuities

Expands the legal discharge for annuities purchased by ongoing defined benefit plans to active members who are no longer accruing benefits and surviving spouses entitled to a benefit. The rules for calculating top-up payments for solvency funding whenannuities are purchased have also been corrected and updated.

Plans with Defined Contribution (DC) Provisions

Oct. 30, 2026 - Auto-escalation features

Permits automatic escalation of contributions for members enrolled by default, while preserving the option to opt out, and clarifies related communication requirements (with penalties for non-compliance).

Miscellaneous

Apr. 30, 2026 - Individual Pension Plans

Clarifies and expands the exemption. Plans that meet the updated criteria (including plans where all members earn more than 2.5 times the Year’s Maximum Pensionable Earnings (YMPE) and/or are connected persons) are no longer required to:

make minimum funding contributions; or
fund solvency deficiencies on wind-up.

This change will reduce the administrative burden and funding costs for affected plans.

Oct. 30, 2026 - Public Sector Plans

Expands exemptions for public sector pension plans relating to disclosure of information and records.

Expanded Discussion: New Funding Requirements on Plan Wind-Up

The regulation has been amended to clarify how solvency deficiencies are managed following plan wind-up, and increase reporting.

Previously, the Pension Benefits Standards Regulation did not explicitly address whether solvency deficiencies (and their associated contribution requirements) needed to be revisited after the initial wind-up valuation report was filed. In fact, some might argue that the contribution obligation of participating employers was unclear.

Under the updated provisions in Section 132 of the Pension Benefits Standards Regulation:

Solvency deficiencies amortized over the five-year period following wind-up must now be reviewed annually, beginning on and after the second anniversary of the wind-up date;
Each review must be supported by an actuarial valuation report, which must be filed within 120 days of the review date; and
Annual updates may cease once a valuation report confirms that the plan no longer has a solvency deficiency.

The requirement to eliminate these deficiencies by the fifth anniversary of the wind-up date remains unchanged, but is now clarified.

The revised provisions provide clarity on how these deficiencies will be eliminated over the five-year period from the wind-up date and align British Columbia more closely with legislation in other jurisdictions (such as Ontario).

Consequently, wind-ups for plans with solvency deficiencies will now be more involved and will incur additional expenses related to the actuarial valuation reports that must be filed, particularly if the wind-up process extends beyond two years.

In addition to adding these requirements, administrative penalties will now be enforceable for plans that do not adhere to the requirements for filing actuarial reports under Section 132.

Still to Come

While OIC 153 brings a significant portion of Bill 33 into force, several provisions remain outstanding.

Most notably, these include:

Provisions related to variable life benefits for DC plans; and
Provisions relating to pooled registered pension plans and their interaction with the federal pension framework.

Further regulatory developments are expected in these areas.

Key Takeaways for Plan Sponsors and Administrators

Plan amendments and compliance: Sponsors should consult with their advisors to confirm whether plan documents and/or administration practices need updates.
Auto-escalation features in DC plans: Sponsors of DC plans that currently have auto-escalation features for members in other provinces should assess whether to implement this provision for members in British Columbia and, if so, ensure all communications align with updated regulatory requirements. Those who have not implemented auto-enrollment and/or auto-escalation are encouraged to consider whether adopting these features may enhance retirement outcomes for employees.
Defined Benefit Plan Wind-Up: Plan sponsors considering wind-ups, particularly for plans with solvency deficits, should prepare for enhanced reporting, costs, and possible changes to funding strategies.
Opportunity for Individual Pension Plans: With expanded exemptions for pension plans with members who are exclusively high earning individuals (including those not connected with the employer), employers may wish to revisit the possibility of establishing individual pension plans covering these individuals.

BCFSA has indicated that it will release further regulatory statements at a later date to reflect its interpretation of certain amendments. Please contact your plan advisor and/or administrator to obtain further information regarding these changes and to begin the implementation process.