O. Reg. 464/16: RESOLUTE FP CANADA INC. PENSION PLANS
filed December 16, 2016 under Pension Benefits Act, R.S.O. 1990, c. P.8
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made under the
Pension Benefits Act
Made: December 14, 2016
Filed: December 16, 2016
Published on e-Laws: December 16, 2016
Printed in The Ontario Gazette: December 31, 2016
Amending O. Reg. 196/11
(RESOLUTE FP CANADA INC. PENSION PLANS)
1. Paragraph 1 of subsection 5 (1) of Ontario Regulation 196/11 is amended by striking out “as described in section 7” at the end and substituting “as described in section 7 or 8, as the case may be”.
2. Section 7 of the Regulation is amended by adding the following subsections:
(1.1) This section does not apply with respect to a 12-month period that begins on or after July 1, 2017 if the employer has filed an election in accordance with section 8 to have that section apply.
. . . . .
(6.1) Despite subsection (6), the following rule applies if an election is filed in accordance with section 8 to have that section apply:
1. If a Quebec pension plan ceases to be a participating pension plan on or before December 31, 2016, the amount of the unpaid annual basic amortization contribution to be made for a month after December 2016 and before July 2017 to that pension plan shall not be reallocated among the remaining participating pension plans.
3. The Regulation is amended by adding the following section:
Annual basic amortization contributions if election filed
8. (1) The employer may file an election with the Superintendent to have this section apply.
(2) The election may only be filed if, under the Quebec Regulation, elections are made to have every participating Quebec pension plan cease to be a participating pension plan on or before December 31, 2016.
(3) The election must be filed before December 31, 2016 and it cannot be withdrawn.
(4) If the election is filed in accordance with this section, the employer (or a person or entity required to make contributions on behalf of the employer) shall make the annual contribution that is required by this section (the “annual basic amortization contribution”) to each of the participating Ontario pension plans for each 12-month period that begins on July 1, 2017 or on July 1 of a subsequent year.
(5) The amount of the annual basic amortization contribution for the 12-month period that begins on July 1 of a particular year is determined using the information in the annual combined report prepared with reference to the valuation date that falls on December 31 of the previous year.
(6) The annual basic amortization contribution is payable in equal monthly instalments, and the amount payable for each month is due on or before the last business day of the month.
(7) The amount of the annual basic amortization contribution that must be made to a particular participating Ontario pension plan under this section for a particular month during the 12-month period is calculated using the formula,
A × B/C
in which,
“A” is $750,000 per month,
“B” is the amount of the adjusted solvency deficiency of the plan as of the applicable valuation date, and
“C” is the sum of the adjusted solvency deficiencies for every participating Ontario pension plan as of the applicable valuation date.
(8) The obligation to make the annual basic amortization contribution to a particular Ontario pension plan is terminated when the pension plan ceases to be a participating pension plan.
(9) If an Ontario pension plan ceases to be a participating pension plan before its annual basic amortization contribution is made in whole or in part under this section to that pension plan, the amount of the unpaid annual basic amortization contribution to be made to that pension plan shall be reallocated among the remaining participating Ontario pension plans in accordance with the formula set out in subsection (7).
(10) The portion of the annual basic amortization contribution for a particular month reallocated to a particular participating Ontario pension plan is payable to the pension plan as a lump sum within 30 days after the end of the 12-month period described in subsection (4) as it would have been payable to the formerly-participating pension plan.
(11) Despite subsections (8), (9) and (10), if a particular Ontario pension plan ceases to be a participating pension plan because it is fully funded before December 31, 2020,
(a) the obligation to make the annual basic amortization contribution to the pension plan ends on June 30 after the valuation date of the final report filed under section 32; and
(b) the monthly contributions made from that valuation date to that June 30th are deemed to be special payments under clause 5 (1) (e) of the General Regulation for purposes of the calculation of present value referred to in clause 1.2 (1) (d) of the General Regulation.
4. The French version of subsection 9 (13) of the Regulation is amended by striking out “régime de retraite participant” in the portion before paragraph 1 and substituting “régime de retraite”.
5. Paragraph 6 of subsection 31 (3) of the Regulation is amended by striking out “under section 7” at the end of the portion before subparagraph i and substituting “under section 7 or 8, as the case may be”.
6. Paragraph 6 of subsection 35 (4) of the Regulation is amended by striking out “under section 7” and substituting “under section 7 or 8, as the case may be”.
Commencement
7. This Regulation comes into force on the day it is filed.