VANCOUVER, British Columbia--Alberta and British Columbia will conduct a joint review of pension legislation to harmonize their pension standards, while British Columbia will also temporarily give employers more flexibility in funding their pension plans, the provinces announced Friday.

A six-member panel will review Alberta's Employment Pension Plans Act and British Columbia's Pension Benefits Standards Act, which set minimum standards for benefits, funding, investments and disclosure in private-sector plans. Public-sector plans are not included in the review.

The Joint Expert Panel on Pension Standards will consult with stakeholders and present findings and recommendations to both provincial finance ministers by Sept. 30, 2008. The panel will examine the role of pensions in attracting and retaining employees and ways to encourage the establishment and maintenance of employee pension plans, among other things.

The joint review is the first of its kind since pension legislation became effective 20 years ago in Alberta and more than 15 years ago in British Columbia. Ontario is currently in the midst of conducting a review of its own pension legislation, with public hearings taking place in October and November.

In a statement, the Assn. of Canadian Pension Management, which represents plan sponsors in Canada, praised the decision to conduct the joint review. "It is a clear indication that these governments recognize the importance of occupational pension plans and the importance of having clear legislation that will allow pension plans to remain viable and sustainable," said Scott Perkin, president of the Toronto-based organization.

British Columbia also will introduce temporary measures to address pension plan funding concerns, including a three-year moratorium on solvency payments for qualifying multiemployer negotiated-cost pension plans--plans where an employer's financial contribution is limited to the amount the employer is contractually required to contribute, normally under a collective bargaining agreement. The province also will allow the use of letters of credit to fund solvency deficiencies in certain circumstances. Further details will be announced in the near future.

Alberta and other provinces have recently adopted or proposed similar funding relief measures.

Alberta regulators are responsible for regulating about 770 pension plans, with assets of more than $25.5 billion Canadian ($24.65 billion) in the private sector. British Columbia officials regulate about 800 registered pension plans in the private sector, with assets of $27 billion Canadian ($26.09 billion).