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Pension Benefits Act
Loi sur les régimes de retraite

ONTARIO REGULATION 178/11

Solvency Funding Relief for Certain Public Sector Pension Plans

Consolidation Period:  From January 1, 2016 to the e-Laws currency date.

Last amendment: O. Reg. 344/15.

This Regulation is made in English only.

CONTENTS

Overview and Interpretation

1.

Overview of solvency funding relief

2.

Interpretation

Stage One Solvency Funding Relief

3.

Stage one valuation date

4.

Stage one solvency funding relief

5.

Stage one valuation report

6.

Modified rules, Retirement Plan of the University of St. Michael’s College

7.

Information for members about stage one solvency funding relief

Stage Two Solvency Funding Relief

8.

Stage two valuation date

9.

Stage two solvency relief

10.

Stage two valuation report

11.

Information for members about stage two solvency funding relief

12.

Subsequent solvency funding relief re stage two

13.

Subsequent valuation reports re stage two

14.

Information for members about termination of all stage two solvency funding relief

Alternative: Exiting the Scheme after Stage One

15.

Transitional valuation date

16.

Transitional solvency funding relief

17.

Transitional valuation report

18.

Information for members about termination of transitional solvency funding relief

General

19.

Status of valuation reports

20.

Termination of other solvency funding relief

Schedule 1

Public sector pension plans receiving stage one solvency funding relief

Schedule 2

Public sector pension plans receiving stage two solvency funding relief

 

Overview and Interpretation

Overview of solvency funding relief

1. (1) Every public sector pension plan listed in Schedule 1 is entitled to the solvency funding relief described in subsection 4 (1) (“stage one solvency funding relief”), beginning as of the pension plan’s stage one valuation date.  O. Reg. 178/11, s. 1 (1).

(2) Every public sector pension plan that receives stage one solvency funding relief and is listed in Schedule 2 is entitled to the solvency funding relief described in subsection 9 (1) (“stage two solvency funding relief”), beginning as of the pension plan’s stage two valuation date.  O. Reg. 178/11, s. 1 (2).

(3) Every public sector pension plan that receives stage one solvency funding relief but is not listed in Schedule 2 is entitled to the transitional solvency funding relief described in subsection 16 (1) (“transitional solvency funding relief”), beginning as of the pension plan’s transitional valuation date.  O. Reg. 178/11, s. 1 (3).

Interpretation

2. (1) In this Regulation,

“General Regulation” means Regulation 909 of the Revised Regulations of Ontario, 1990 (General) made under the Act.  O. Reg. 178/11, s. 2 (1).

(2) Expressions used in this Regulation have the same meaning as in the General Regulation, except where otherwise indicated.  O. Reg. 178/11, s. 2 (2).

Stage One Solvency Funding Relief

Stage one valuation date

3. The stage one valuation date for a public sector pension plan listed in Schedule 1 is the valuation date set out in the Schedule.  O. Reg. 178/11, s. 3.

Stage one solvency funding relief

4. (1) Stage one solvency funding relief for a public sector pension plan listed in Schedule 1 consists of the rules, conditions and restrictions set out in this section, which apply as of the stage one valuation date, and the requirements specified in sections 5 and 6.  O. Reg. 178/11, s. 4 (1).

(2) The following rules apply with respect to the pension plan as of its stage one valuation date:

1. Subsections 14 (2) and (3) of the General Regulation do not apply to the pension plan for three years after the stage one valuation date.

2. All contributions to be made under section 4 of the General Regulation in respect of a report filed under section 3, 4 or 14 of the General Regulation before the stage one valuation date must continue to be made until the stage one valuation report is filed.  However, for the Retirement Plan of the University of St. Michael’s College, the modified version of this rule set out in subsection 6 (2) of this Regulation applies.

3. If a going concern unfunded liability is determined in the stage one valuation report as of the stage one valuation date, the 15-year period  under clause 5 (1) (b) of the General Regulation for liquidating the liability may begin up to 12 months after the valuation date.  However, for the Pension Plan for Professional Staff of Lakehead University and for the Wilfrid Laurier University Pension Plan, the 15-year period must begin on June 1, 2011.

4. If special payments are required under clause 5 (1) (e) of the General Regulation to liquidate any solvency deficiency determined in a report filed under section 3, 4 or 14 of the General Regulation before the stage one valuation date, those special payments are no longer required after the stage one valuation report is filed.  However, for the Retirement Plan of the University of St. Michael’s College, the modified version of this rule set out in subsection 6 (2) of this Regulation applies.

5. Special payments in respect of any solvency deficiency determined in the stage one valuation report as of the stage one valuation date must be made in equal monthly instalments in each of the four years after that valuation date.  The minimum monthly special payment is the amount calculated under subsection (3).  However, for the Retirement Plan of the University of St. Michael’s College, the modified version of this rule set out in subsection 6 (3) applies.

6. If special payments described in paragraph 4 are made for the period from the stage one valuation date to the date on which the stage one valuation report is filed, and if the amount of those special payments is greater than the amount of the special payments described in paragraph 5 to be made for the same period, the excess amount may be used to reduce any contributions to the pension plan that must be made after the date on which the stage one valuation report is filed and until the next report is filed under this Regulation.  However, for the Retirement Plan of the University of St. Michael’s College, this rule does not apply.  O. Reg. 178/11, s. 4 (2).

(3) The minimum monthly amount of the special payments required with respect to the solvency deficiency determined in the stage one valuation report is determined in accordance with the following rules:

1. Determine the amount of the modified solvency liabilities of the pension plan as of the stage one valuation date by multiplying the amount of the solvency liabilities by 80 per cent.

2. Determine the amount of the modified solvency deficiency of the pension plan which is the amount by which the modified solvency liabilities exceeds the solvency assets.

3. Determine the amount of the modified solvency special payments for the pension plan which is the amount of the special payments required to liquidate 50 per cent of the modified solvency deficiency (together with interest at the same rates used in the stage one valuation report to determine the solvency liabilities) by equal monthly instalments over a period of four years beginning on the stage one valuation date.

4. Determine the amount that is the greater of “A” and “B” where,

“A” is the monthly amount of the modified solvency special payments, and

“B” is the amount of interest payable over the period of one month on the amount by which the solvency liabilities exceed the solvency assets, calculated using the same rates used in the stage one valuation report to determine the solvency liabilities.

5. Subtract from the amount calculated under paragraph 4 the monthly amount of the special payments, if any, required under clause 5 (1) (b) of the General Regulation for the year to liquidate any going concern unfunded liability.

6. The minimum monthly amount of the special payments required in respect of the solvency deficiency is the greater of the amount calculated under paragraph 5 and zero.  O. Reg. 178/11, s. 4 (3).

(4) If the administrator files an amendment to the pension plan to increase pension benefits or ancillary benefits, the following conditions and restrictions apply with respect to the pension plan until its stage two valuation date or its transitional valuation date, as the case may be:

1. If, after the amendment, the ratio of the market value of assets of the pension plan to the going concern liabilities is less than 0.9 or if, after the amendment, the transfer ratio of the pension plan is less than 0.9,

i. determine the amount of additional assets that would be needed to raise both ratios to a level that is not less than the corresponding ratio immediately before the amendment but not more than 0.9, and

ii. pay that amount, together with interest at the rate used to determine the going concern liabilities, to the pension plan as a lump sum within 60 days after the report required under subsection 3 (1) of the General Regulation is filed.

2. If, after the amendment, the ratio of the market value of assets of the pension plan to the going concern liabilities is less than 1.0,

i. determine the amount of additional assets that would be needed to raise the ratio to the level that existed immediately before the amendment or to 1.0, whichever is lower,

ii. determine whether the amount determined under subparagraph i is greater than the amount determined under subparagraph 1 i and, if it is greater, calculate the difference, and

iii. make equal monthly payments to liquidate the amount of the difference calculated under subparagraph ii, together with interest at the rate used to determine the going concern liabilities, over a period of five years beginning as of the valuation date of the report filed under subsection 3 (1) of the General Regulation.

3. If, after the amendment, the transfer ratio of the pension plan is less than 1.0,

i. determine the amount of additional assets that would be needed to raise the transfer ratio to the level that existed immediately before the amendment or to 1.0, whichever is lower,

ii. determine whether the amount determined under subparagraph i is greater than the sum of the amount determined under subparagraph 1 i and the amount of the difference calculated under subparagraph 2 ii and, if it is greater, calculate the difference, and

iii. make equal monthly payments to liquidate the amount of the difference calculated under subparagraph ii, together with interest at the rate used to determine the solvency liabilities, over a period of five years beginning as of the valuation date of the report filed under subsection 3 (1) of the General Regulation.  O. Reg. 178/11, s. 4 (4).

(4.1) Subsection (4) does not apply with respect to an amendment to the pension plan to confer a benefit improvement that is required by law.  O. Reg. 179/12, s. 1.

(5) The payments required by subparagraphs 1 ii, 2 iii and 3 iii of subsection (4) are deemed to be special payments required under subsection 5 (1) of the General Regulation.  O. Reg. 178/11, s. 4 (5).

Stage one valuation report

5. (1) The administrator of a public sector pension plan listed in Schedule 1 shall prepare a valuation report for the pension plan as of its stage one valuation date.  O. Reg. 178/11, s. 5 (1).

(2) The stage one valuation report for the pension plan must be filed on or before the date required by subsection 14 (10) or 47.7 (3) of the General Regulation, as applicable.  O. Reg. 178/11, s. 5 (2); O. Reg. 12/12, s. 1; O. Reg. 181/13, s. 1.

(3) The stage one valuation report must satisfy the following requirements and contain the following information:

1. Except as otherwise indicated in this section and section 4, the report must satisfy the requirements for a report filed under section 14 of the General Regulation.

2. The prior year credit balance to be used in the report is deemed to be zero.

3. The special payments required by paragraph 5 of subsection 4 (2) in respect of the solvency deficiency as of the stage one valuation date are deemed to be special payments required under clause 5 (1) (e) of the General Regulation for the purposes of the report.  However, for the Retirement Plan of the University of St. Michael’s College, the modified version of this requirement set out in subsection 6 (4) applies.

4. A payment schedule must be established in accordance with clause 5 (1) (e) of the General Regulation to indicate the special payments that would have been required — but for this Regulation — to liquidate the solvency deficiency as of the stage one valuation date over a period of five years beginning on the stage one valuation date.  O. Reg. 178/11, s. 5 (3).

Modified rules, Retirement Plan of the University of St. Michael’s College

6. (1) This section sets out the modified rules for the Retirement Plan of the University of St. Michael’s College that are referred to in paragraphs 2, 4 and 5 of subsection 4 (2) and the modified requirements referred to in paragraph 3 of subsection 5 (3).  O. Reg. 178/11, s. 6 (1).

(2) Despite paragraphs 2 and 4 of subsection 4 (2), all contributions to be made under section 4 of the General Regulation in respect of a report filed under section 3, 4 or 14 of the General Regulation with a valuation date of December 31, 2009 must be made with respect to the period from December 31, 2009 to May 31, 2011.  O. Reg. 178/11, s. 6 (2).

(3) Despite paragraph 5 of subsection 4 (2), the special payments required to be made with respect to any solvency deficiency determined in the stage one valuation report as of the stage one valuation date must be made in equal monthly instalments from June 1, 2011 until the next report is filed under this Regulation.  The minimum monthly special payment is the amount calculated under subsection 4 (3).  O. Reg. 178/11, s. 6 (3).

(4) For the purposes of paragraph 3 of subsection 5 (3),

(a) the stage one valuation report must set out any special payments required under clause 5 (1) (e) of the General Regulation determined as of the report filed under section 3, 4 or 14 of the General Regulation with a valuation date of December 31, 2009 for the period that begins on the stage one valuation date and ends on May 31, 2011; and

(b) the minimum monthly amount of special payments determined in accordance with subsection 4 (3) that are required to be made for the period that begins on June 1, 2011 and ends on the date the next report is filed under this Regulation are deemed to be special payments required under clause 5 (1) (e) of the General Regulation for the purposes of the stage one valuation report for the same period.  O. Reg. 178/11, s. 6 (4).

Information for members about stage one solvency funding relief

7. In the annual statement under section 27 of the Act to be given to members after the stage one valuation report is filed for a public sector pension plan listed in Schedule 1, the administrator must include the following information:

1. A statement indicating that the administrator has filed the stage one valuation report for the pension plan.

2. A description of the stage one solvency funding relief received by the pension plan.

3. An explanation of how the stage one solvency funding relief might affect the security of the pension benefits and ancillary benefits of members, former members and retired members.

4. The transfer ratio of the pension plan as of its stage one valuation date.

5. Estimates of the following amounts:

i. The annual amount of the contributions to be made by the employer (or a person or entity required to make contributions on behalf of the employer) and, if applicable, by the members to fund the normal cost of the pension plan for the fiscal year.

ii. The schedule of special payments that would be payable — but for the stage one solvency funding relief — during the four-year period that begins on the stage one valuation date.

iii. The schedule of special payments that are payable — with the stage one solvency funding relief — during the four-year period that begins on the stage one valuation date.

6. If the member is represented by a trade union on the stage one valuation date, a statement indicating that the trade union has been notified that the pension plan is receiving stage one solvency relief.  O. Reg. 178/11, s. 7; O. Reg. 179/12, s. 2.

Stage Two Solvency Funding Relief

Stage two valuation date

8. The stage two valuation date for a pension plan listed in Schedule 2 is the first valuation date that follows its stage one valuation date, and it must not be more than three years after the stage one valuation date.  O. Reg. 178/11, s. 8.

Stage two solvency relief

9. (1) Stage two solvency funding relief for a public sector pension plan listed in Schedule 2 consists of the rules, conditions and restrictions set out in this section, which apply as of the stage two valuation date, and the requirements specified in sections 10 to 13.  O. Reg. 178/11, s. 9 (1).

(2) The following rules apply with respect to the pension plan as of its stage two valuation date:

1. If there is a going concern unfunded liability determined in the stage two valuation report as of the stage two valuation date, the 15-year period under clause 5 (1) (b) of the General Regulation for liquidating the liability may begin on a day that is not later than 12 months after the valuation date.

2. Special payments to liquidate any solvency deficiency determined in the stage two valuation report as of the stage two valuation date must be made in equal monthly instalments over a period of not more than 10 years, beginning on a day that is not later than 12 months after the valuation date. However, the amount of the special payments may be determined in accordance with the modified version of this rule set out in subsection (4).

3. The solvency asset adjustment in relation to the stage two valuation report is determined in accordance with section 1.2 of the General Regulation, with the following changes:

i. If a benefit allocation method is used to set contribution rates, the reference to a five-year period in subclause 1.2 (1) (d) (i) of the General Regulation is deemed to be a reference to a period that begins on the stage two valuation date and ends on the last day of the 10-year period described in paragraph 2 of this subsection or paragraph 2 of subsection (4), as applicable.

ii. If a benefit allocation method is not used to set contribution rates, the reference to a five-year period in the definition of “C” in subsection 1.2 (2) of the General Regulation is deemed to be a reference to a period that begins on the stage two valuation date and ends on the last day of the 10-year period described in paragraph 2 of this subsection or paragraph 2 of subsection (4), as applicable.  O. Reg. 178/11, s. 9 (2); O. Reg. 307/13, s. 1 (1-3); O. Reg. 344/15, s. 1 (1).

(3) The following conditions and restrictions apply with respect to the pension plan for three years after its stage two valuation date.

1. The conditions and restrictions described in subsection 4 (4).

2. Any actuarial gain must not be applied to reduce the contributions to be made by the employer (or by a person or entity required to make contributions on behalf of the employer) or members for a fiscal year for normal costs unless both of the following requirements are satisfied:

i. The administrator files an actuarial cost certificate for the fiscal year within the first 90 days of the fiscal year.

ii. The amount applied to reduce the contributions for the fiscal year does not reduce the transfer ratio of the pension plan to less than 1.1 immediately after the application of the actuarial gain.  O. Reg. 178/11, s. 9 (3).

(4) If the administrator of the pension plan makes an election to do so, the special payments to liquidate any solvency deficiency determined in the stage two valuation report as of the stage two valuation date may be made in accordance with the following rules:

1. Notice of the election must be filed with the Superintendent no later than the day on which the stage two valuation report is filed.

2. During the first three years of a period of 10 years, beginning on a day that is not later than 12 months after the stage two valuation date, special payments to liquidate the solvency deficiency must be made every month.

3. The minimum amount of the special payment to be made every month during that three-year period is the greater of zero and the amount calculated using the formula,

C − D

in which,

“C” is the amount of interest payable over the period of one month on the amount by which the solvency liabilities exceed the solvency assets, calculated using the same rates used in the stage two valuation report to determine the solvency liabilities, and

“D” is the monthly amount of the special payments, if any, required under clause 5 (1) (b) of the General Regulation for the year to liquidate any going concern unfunded liability.

4. During the remaining seven years of the 10-year period, the special payments to liquidate the solvency deficiency must be made in equal monthly instalments. O. Reg. 307/13, s. 1 (4); O. Reg. 344/15, s. 1 (2).

(5) If the administrator of a public sector pension plan makes the election described in subsection (4), subsections 14 (2) and (3) of the General Regulation do not apply to the pension plan for three years after the stage two valuation date. O. Reg. 307/13, s. 1 (4).

Stage two valuation report

10. (1) The administrator of a public sector pension plan listed in Schedule 2 shall prepare a valuation report for the pension plan as of its stage two valuation date and shall file the report no later than 12 months after that valuation date.  O. Reg. 178/11, s. 10 (1).

(2) The stage two valuation report must satisfy the requirements for a report filed under section 14 of the General Regulation, except as otherwise indicated in section 9 of this Regulation.  O. Reg. 178/11, s. 10 (2).

Information for members about stage two solvency funding relief

11. In the annual statement under section 27 of the Act to be given to members after the stage two valuation report is filed for a public sector pension plan listed in Schedule 2, the administrator must include the following information:

1. A statement indicating that the administrator has filed the stage two valuation report for the pension plan.

2. A description of the stage two solvency funding relief received by the pension plan.

3. An explanation of how the stage two solvency funding relief might affect the security of the pension benefits and ancillary benefits of members, former members and retired members.

4. The transfer ratio of the pension plan as of its stage two valuation date.

5. Estimates of the following amounts:

i. The annual amount of the contributions to be made by the employer (or a person or entity required to make contributions on behalf of the employer) and, if applicable, by the members to fund the normal cost of the pension plan for the fiscal year.

ii. The schedule of special payments that would be payable — but for the stage two solvency funding relief — until the valuation date of the next report required to be filed under section 14 of the General Regulation.

iii. The schedule of special payments that are payable — with the stage two solvency funding relief — until the valuation date of the next report required to be filed under section 14 of the General Regulation.

6. If the member is represented by a trade union on the stage two valuation date, a statement indicating that the trade union has been notified that the pension plan is receiving stage two solvency relief.  O. Reg. 178/11, s. 11; O. Reg. 179/12, s. 3.

Subsequent solvency funding relief re stage two

12. (1) This section applies with respect to a public sector pension plan listed in Schedule 2 during the period that begins no more than three years after its stage two valuation date and ends on the day the 10-year period described in paragraph 2 of subsection 9 (2) or paragraph 2 of subsection 9 (4), as applicable, ends.  O. Reg. 178/11, s. 12 (1); O. Reg. 307/13, s. 2 (1).

(2) The following rules apply with respect to the pension plan as of a particular valuation date during the period described in subsection (1):

1. Special payments to liquidate any solvency deficiency determined as of the particular valuation date must be made in equal monthly instalments beginning on a day that is not later than 12 months after that valuation date and ending on the later of the following dates:

i. The day on which the 10-year period described in paragraph 2 of subsection 9 (2) or paragraph 2 of subsection 9 (4), as applicable, ends.

ii. Five years after the day on which the equal monthly instalments begin.

2. The solvency asset adjustment for the pension plan is determined in accordance with section 1.2 of the General Regulation, with the following changes:

i. If a benefit allocation method is used to set contribution rates, the reference to a five-year period in subclause 1.2 (1) (d) (i) of the General Regulation is deemed to be a reference to a period that begins on the particular valuation date and ends on the last day of the period described in paragraph 1 of this subsection.

ii. If a benefit allocation method is not used to set contribution rates, the reference to a five-year period in the definition of “C” in subsection 1.2 (2) of the General Regulation is deemed to be  a reference to a period that begins on the particular valuation date and ends on the last day of the period described in paragraph 1 of this subsection.  O. Reg. 178/11, s. 12 (2); O. Reg. 307/13, s. 2 (2).

(2.1) The special payments required by paragraph 1 of subsection (2) are deemed to be special payments required under clause 5 (1) (e) of the General Regulation. O. Reg. 118/14, s. 1.

(2.2) In subsection (2.3),

“previously-scheduled special payments” means, in relation to a particular valuation date,

(a) the special payments required by paragraph 1 of subsection (2) with respect to solvency deficiencies arising before the valuation date that are scheduled for payment after the valuation date, and

(b) the special payments required by paragraph 2 of subsection 9 (2) or paragraphs 2 and 4 of subsection 9 (4), as applicable, with respect to solvency deficiencies arising before the valuation date that are scheduled for payment after the valuation date;

“solvency excess” means, in relation to a particular valuation date, the amount, if any, by which the sum of the solvency assets and the solvency asset adjustment exceeds the sum of the solvency liabilities, the solvency liability adjustment and the prior year credit balance. O. Reg. 118/14, s. 1.

(2.3) If there is a solvency excess on a particular valuation date, the previously-scheduled special payments must be adjusted in accordance with the following rules:

1. If the solvency excess is greater than or equal to the sum of the present value of the previously-scheduled special payments, those special payments must be reduced to zero.

2. If the solvency excess is less than the sum of the present value of the previously-scheduled special payments, the solvency excess may be applied to reduce any of the following in order to reduce the solvency excess to zero:

i. The amount of the previously-scheduled special payments required by paragraph 2 of subsection 9 (2) or paragraphs 2 and 4 of subsection 9 (4), as applicable.

ii. The amortization period of the previously-scheduled special payments referred to in subparagraph i.

iii. The amortization period of the previously-scheduled special payments required by paragraph 1 of subsection (2). O. Reg. 118/14, s. 1.

(3) The conditions and restrictions described in 9 (3) continue to apply during the period that begins three years after the stage two valuation date and ends on the earlier of,

(a) 19 years after the stage one valuation date; and

(b) the date on which the second of two consecutive reports are filed under this Regulation or under section 3 or 14 of the General Regulation indicating that the transfer ratio of the pension plan is at least 1.0.  O. Reg. 178/11, s. 12 (3).

Subsequent valuation reports re stage two

13. (1) The administrator of a public sector pension plan to which section 12 applies for a particular valuation date shall prepare a report for the pension plan as of that valuation date.  O. Reg. 178/11, s. 13 (1).

(2) The report must satisfy the requirements for a report filed under section 14 of the General Regulation, except as otherwise indicated in section 12 of this Regulation.  O. Reg. 178/11, s. 13 (2).

Information for members about termination of all stage two solvency funding relief

14. In the annual statement under section 27 of the Act given to members after the first report is filed for a public sector pension plan under the General Regulation following the expiry of the 10-year period described in paragraph 2 of subsection 9 (2) or paragraph 2 of subsection 9 (4) of this Regulation, as applicable, the administrator must include a statement indicating that the pension plan is no longer receiving stage two solvency funding relief.  O. Reg. 178/11, s. 14; O. Reg. 307/13, s. 3.

Alternative: Exiting the Scheme after Stage One

Transitional valuation date

15. The transitional valuation date for a public sector pension plan listed in Schedule 1 but not in Schedule 2 is the first valuation date that follows its stage one valuation date, and it must not be more than three years after the stage one valuation date.  O. Reg. 178/11, s. 15.

Transitional solvency funding relief

16. (1) Transitional solvency funding relief for a public sector pension plan listed in Schedule 1 but not in Schedule 2 consists of the rules, conditions and restrictions set out in this section, which apply as of the transitional valuation date, and the requirements specified in section 17.  O. Reg. 178/11, s. 16 (1).

(2) The following rules apply with respect to the pension plan as of its transitional valuation date:

1. If a going concern unfunded liability is determined in the transitional valuation report as of the transitional valuation date, the 15-year period under clause 5 (1) (b) of the General Regulation for liquidating the liability may begin on a day that is not later than 12 months after the valuation date.

2. If a solvency deficiency is determined in the transitional valuation report as of the transitional valuation date, the five-year period under clause 5 (1) (e) of the General Regulation for liquidating the solvency deficiency may begin on a day that is not later than 12 months after the valuation date.

3. The solvency asset adjustment in relation to the transitional valuation report is determined in accordance with section 1.2 of the General Regulation, with the following changes:

i. If a benefit allocation method is used to set contribution rates, the reference to a five-year period in subclause 1.2 (1) (d) (i) of the General Regulation is deemed to be a reference to period that begins on the transitional valuation date and ends on the last day of the five-year period described in paragraph 2 of this subsection.

ii. If a benefit allocation method is not used to set contribution rates, the reference to a five-year period in the definition of “C” in subsection 1.2 (2) of the General Regulation is deemed to be a reference to a period that begins on the transitional valuation date and ends on the last day of the five-year period described in paragraph 2 of this subsection.  O. Reg. 178/11, s. 16 (2).

(3) The conditions and restrictions described in subsection 4 (4) continue to apply with respect to the pension plan from its transitional valuation date until the earlier of,

(a) 14 years after the stage one valuation date; and

(b) the date on which the second of two consecutive reports are filed under this Regulation or under section 3 or 14 of the General Regulation indicating that the transfer ratio of the pension plan is at least 1.0.  O. Reg. 178/11, s. 16 (3).

(4) The following conditions and restrictions apply with respect to the pension plan during the period described in subsection (3):

1. Any actuarial gain must not be applied to reduce the contributions to be made by the employer (or by a person or entity required to make contributions on behalf of the employer) or members for a fiscal year for normal costs unless both of the following requirements are satisfied:

i. The administrator files an actuarial cost certificate for the fiscal year within the first 90 days of the fiscal year.

ii. The amount applied to reduce the contributions for the fiscal year does not reduce the transfer ratio of the pension plan to less than 1.1 immediately after the application of the actuarial gain.  O. Reg. 178/11, s. 16 (4).

Transitional valuation report

17. (1) The administrator of a pension plan listed in Schedule 1 but not in Schedule 2 shall prepare a valuation report for the pension plan as of its transitional valuation date and shall file the report no later than 12 months after that valuation date.  O. Reg. 178/11, s. 17 (1).

(2) The transitional valuation report must satisfy the requirements for a report filed under section 14 of the General Regulation, except as otherwise indicated in section 16 of this Regulation.  O. Reg. 178/11, s. 17 (2).

Information for members about termination of transitional solvency funding relief

18. In the annual statement under section 27 of the Act to be given to members after the transitional valuation report is filed under section 17 of this Regulation for a public sector pension plan, the administrator must include a statement indicating that the pension plan is no longer receiving stage one solvency funding relief.  O. Reg. 178/11, s. 18.

General

Status of valuation reports

19. For the purposes of the General Regulation, the reports filed under this Regulation are deemed to have been filed under section 14 of that regulation.  O. Reg. 178/11, s. 19.

Termination of other solvency funding relief

20. Any election made under subsection 5.6 (3) of the General Regulation with respect to a public sector pension plan listed in Schedule 1 ceases to have effect on the day this Regulation comes into force, despite subsections 5.6 (2) and (5) of the General Regulation.  O. Reg. 178/11, s. 20.

21. Omitted (provides for coming into force of provisions of this Regulation).  O. Reg. 178/11, s. 21.

schedule 1
public sector pension plans receiving stage one solvency funding relief

Item

Column 1

Name of the pension plan

Column 2

Registration number

Column 3

Stage one valuation date

1.

Carleton University Retirement Plan

0526616

July 1, 2010

2.

Contributory Pension Plan of the Ontario Northland Transportation Commission

0355164

January 1, 2011

3.

The Contributory Pension Plan for Employees of Trent University Represented by OPSEU Local 365 and Exempt Administrative Staff of Trent University

0310409

July 1, 2011

4.

Contributory Pension Plan for Hourly-Rated Employees of McMaster University Including McMaster Divinity College

0215418

July 1, 2010

5.

Contributory Pension Plan for Salaried Employees of McMaster University Including McMaster Divinity College 2000

1079920

July 1, 2011

6.

The Contributory Pension Plan for TUFA Employees of Trent University

1048826

July 1, 2010

7.

The Ontario Educational Communications Authority Retirement Plan

0367532

January 1, 2014

8.

Pension Plan for Professional Staff of Lakehead University

0246058

December 31, 2009

9.

Pension Plan for Professional Staff of University of Guelph

0324616

August 1, 2010

10.

Public Service Pension Plan

0208777

January 1, 2014

11.

Retirement Plan of Laurentian University of Sudbury and Its Federated and Affiliated Universities

0267013

July 1, 2014

12.

Retirement Plan of the University of St. Michael’s College

0211441

January 1, 2010

13.

Retirement Plan of University of Guelph

0324624

August 1, 2010

14.

Revised Pension Plan of Queen’s University

0344929

August 31, 2011

15.

The Royal Ontario Museum Pension Plan

0469866

January 1, 2011

16.

St. Joseph’s Health Centre Pension Plan

1016617

April 1, 2012

17.

The University of Ottawa Retirement Pension Plan

0310839

January 1, 2013

18.

University of Toronto (OISE) Pension Plan

0353854

July 1, 2011

19.

University of Toronto Pension Plan

0312827

July 1, 2011

20.

University of Waterloo Pension Plan for Faculty and Staff

0310565

January 1, 2014

21.

University of Windsor Employees’ Retirement Plan

0310573

July 1, 2014

22.

Victoria University General Pension Plan

0315820

June 30, 2011

23.

Wilfrid Laurier University Pension Plan

0314492

December 31, 2009

24.

Workplace Safety and Insurance Board Employees’ Pension Plan

0579839

December 31, 2012

25.

York University Pension Plan

0329763

December 31, 2010

O. Reg. 181/13, s. 2; O. Reg. 118/14, s. 2.

schedule 2
public sector pension plans receiving stage two solvency funding relief

Item

Name of the pension plan

Registration number

1.

Carleton University Retirement Plan

0526616

1.1

Contributory Pension Plan of the Ontario Northland Transportation Commission

0355164

1.2

The Contributory Pension Plan for Employees of Trent University Represented by OPSEU Local 365 and Exempt Administrative Staff of Trent University

0310409

2.

Contributory Pension Plan for Hourly-Rated Employees of McMaster University Including McMaster Divinity College

0215418

2.1

Contributory Pension Plan for Salaried Employees of McMaster University Including McMaster Divinity College 2000

1079920

3.

The Contributory Pension Plan for TUFA Employees of Trent University

1048826

4.

Pension Plan for Professional Staff of Lakehead University

0246058

5.

Pension Plan for Professional Staff of University of Guelph

0324616

6

Retirement Plan of the University of St. Michael’s College

0211441

7.

Retirement Plan of University of Guelph

0324624

7.1

Revised Pension Plan of Queen’s University

0344929

8.

The Royal Ontario Museum Pension Plan

0469866

8.1

St. Joseph’s Health Centre Pension Plan

1016617

9.

Wilfrid Laurier University Pension Plan

0314492

9.1

University of Toronto Pension Plan

0312827

9.2

University of Toronto (OISE) Pension Plan

0353854

9.3

Victoria University General Pension Plan

0315820

10.

York University Pension Plan

0329763

O. Reg. 118/14, s. 3; O. Reg. 233/14, s. 1; O. Reg. 38/15, s. 1; O. Reg. 313/15, s. 1.