ALBERTA, BRITISH COLUMBIA TO REVIEW PENSION STANDARDS

VANCOUVER – Alberta and British Columbia will collaborate on a comprehensive review of pension standards to ensure pension plans continue to benefit workers, employers and investors.

British Columbia Finance Minister Carole Taylor and Alberta Finance Minister Lyle Oberg have appointed a six-member expert panel to conduct a review of Alberta’s Employment Pension Plans Act (EPPA) and British Columbia’s Pension Benefits Standards Act (PBSA). These acts set minimum standards for benefits, funding, investments and disclosure in private-sector pension plans. Public sector pension plans are not included in the review.

The joint review is the first of its kind since the respective acts came into force 20 years ago in Alberta and more than 15 years ago in British Columbia.

“Like our co-operation on the Trade, Investment and Labour Mobility Agreement or our work to modernize insurance legislation, the pension review is another opportunity for Alberta and British Columbia to create stronger economies that benefit residents in both provinces,” said Taylor. “It is our hope that the outcome of this review will serve as a model for the modernization of pension legislation across Canada.”

“To attract and retain workers, as well as business, we must ensure that Albertans and British Columbians are confident about their pension plans,” said Oberg. “Both employees and employers must be treated fairly, and we need to be competitive with other jurisdictions. We can achieve this by working together on an objective and thorough review of pension standards in both provinces.”

The Joint Expert Panel on Pension Standards will consult with stakeholders and present their findings and recommendations to both provinces’ finance ministers by Sept. 30, 2008. The panel will examine key issues that include:

· the role of pensions in attracting and retaining the future work force while ensuring fairness for both employees and employers, balancing risks and rewards;

· encouraging the establishment and maintenance of employee pension plans;

· changes that will continue making both provinces attractive jurisdictions for investment; and

· removing barriers to the creation and maintenance of pension plans in the two jurisdictions.

As more members reach retirement and pension plans mature, funding and sustainability have become important issues. At the same time, the proportion of workers enrolled in pension plans is on the decline, raising concerns about the future of retirement incomes for today’s younger workers. The panel will take these trends into account as part of their review and effort to create greater harmonization of pension standards between the two provinces.

The expert panel will be co-chaired by Christopher Brown, a partner with Osler, Hoskin & Harcourt LLP Pensions and Benefits Department in Alberta, specializing in pension plan governance, administration, compliance and investment; and Scott Sweatman, senior legal counsel with Blake, Cassels & Graydon LLP in British Columbia, specializing in pension, tax, trust, and benefit matters.

British Columbia will also introduce temporary measures to address pension plan funding concerns. While further details will be announced in the near future, the measures will be similar to those recently adopted or proposed by Alberta and include:

· a three-year moratorium on solvency payments for qualifying multi-employer negotiated cost pension plans; and

· the ability to use letters of credit to fund solvency deficiencies in certain circumstances.

Alberta first introduced pension legislation (the Pension Benefits Act) in 1967. The current act came into force in 1987. Alberta is responsible for regulating approximately 770 pension plans with assets of more than $25.5 billion, not including Alberta public sector plans. These plans provide benefits for more than 323,000 active and former employees. Approximately 150 of these plans have members from both Alberta and British Columbia.

British Columbia regulates approximately 800 registered pension plans under the Pension Benefits Standards Act with assets of $27 billion, not including public sector plans. These plans provide benefits for more than 500,000 active and former employees. Approximately 130 of these pension plans have members from both Alberta and British Columbia. The legislation was brought into force in 1993.

Those interested in participating in the review can get more information online at
www.ab-bc-pensionreview.ca .

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Minister Taylor and Minister Oberg will be available for media enquiries between 2 p.m. and 2:20 p.m. (British Columbia time) on Friday, Oct. 19, 2007. Interviews can be arranged through the contact numbers listed below.

1 backgrounder(s) attached.
Media contact:	Robert Pauliszyn B.C. Ministry of Finance 250 356-2821	Jay O’Neill Alberta Finance 780 427-5364

For more information on government services or to subscribe to the Province’s news feeds using RSS, visit the Province’s website at www.gov.bc.ca.