New B.C. rules make pensions more secure, offer key for locked-in funds

VICTORIA – The British Columbia government is announcing new standards for workplace pension plans, creating options that could be activated even before an employee retires.

The province says modernized standards will improve security and options for more than 900,000 residents covered by employer-sponsored pension plans.

The changes govern all employment pension plans registered in B.C., as well as those registered elsewhere that have members employed in the province.

They include greater access to locked-in retirement accounts such as locked-in RRSPs or life income funds.

The cash can now be accessed for specific reasons of financial hardship, including the inability to pay medical expenses and threat of eviction or mortgage default.

Revisions also harmonize pension standards between Alberta and B.C., reducing the complexity and cost of administering pensions that have members in both provinces.