Introduction

An employer is not required to establish a pension plan for its employees, but once it does so, the employer is required to comply with federal tax law and applicable provincial pension legislation. Pension plan members who work in Saskatchewan are covered by The Pension Benefits Act, 1992, unless they work in federally regulated industries, such as banking or transportation. Employees in these industries are subject to federal pension legislation that is administered by the Office of the Superintendent of Financial Institutions in Ottawa. In addition, certain employees who work for the federal government and the Government of Saskatchewan also are not covered by the legislation.

The Pension Benefits Act, 1992 came into force in Saskatchewan on January 1, 1993, although several provisions in the new legislation were effective from January 1, 1994. The Act replaced The Pension Benefits Act. This is relevant if you were a member of a pension plan prior to January 1, 1993, because different legislation will apply before and after that date and this may affect your pension entitlements.

Employer sponsored plans can vary greatly in the benefits offered to employees. Some pension plans are more generous than the minimum standards required by Saskatchewan's pension legislation. This booklet is an attempt to describe the principles and terms that are common to all plans so that members can gain a better understanding of how pension plans operate. It should not be taken as a guide to the entitlements offered by a particular pension plan. Plan members are encouraged to consult their plan administrator for details relating to your plan. You also are encouraged to consult other knowledgeable sources for more complete information on financial planning for retirement.

In a publication of this sort, it is difficult to avoid technical terms entirely. For your reference, a glossary appears at the end.