O. Reg. 400/19: GENERAL

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ontario regulation 400/19

made under the

Pension Benefits Act

Made: November 28, 2019
Filed: December 2, 2019
Published on e-Laws: December 2, 2019
Printed in The Ontario Gazette: December 21, 2019

Amending Reg. 909 of R.R.O. 1990

(GENERAL)

1. (1) The French version of clause 6.0.1 (1) (a) of Regulation 909 of the Revised Regulations of Ontario, 1990 is amended by adding “de retraite” before “interentreprises”.

(2) Clause 6.0.1 (1) (b) of the Regulation is revoked and the following substituted:

(b) if the plan is eligible to be a specified Ontario multi-employer pension plan under either subsection 6.0.2 (1) or (1.1) when the election is filed.

(3) The French version of subsection 6.0.1 (2) of the Regulation is amended by adding “de retraite” before “interentreprises” in the portion before paragraph 1.

(4) Paragraph 3 of subsection 6.0.1 (2) of the Regulation is revoked and the following substituted:

3. The date, if any, on which the plan is amended so that,

i. in the case of a plan that was eligible under subsection 6.0.2 (1), one or more of the eligibility criteria described in paragraphs 4, 5, 6 or 7 of that subsection are no longer satisfied, or

ii. in the case of a plan that was eligible under subsection 6.0.2 (1.1), one or both of the eligibility criteria described in paragraph 6 or 7 of subsection 6.0.2 (1) are no longer satisfied or the circumstance described in clause 6.0.2 (1.1) (b) no longer applies with respect to the plan.

2. (1) Subsection 6.0.2 (1) of the Regulation is amended by striking out the portion before paragraph 1 and substituting the following:

(1) A multi-employer pension plan is eligible to become a specified Ontario multi-employer pension plan if it meets all of the following eligibility criteria:

. . . . .

(2) Section 6.0.2 of the Regulation is amended by adding the following subsection:

(1.1) A multi-employer pension plan that does not satisfy the eligibility criteria set out in any of paragraphs 3, 4 and 5 of subsection (1) is also eligible to become a specified Ontario multi-employer pension plan if,

(a) it satisfies the eligibility criteria set out in paragraphs 1, 2, 6 and 7 of that subsection; and

(b) the employers’ contributions to the plan are limited to a fixed amount set out in one or more documents that create and support the plan.

(3) Subsection 6.0.2 (2) of the Regulation is amended by adding “subsection 1 (4.1) of the Act or” after “within the meaning of”.

3. (1) Subsection 6.0.3 (1) of the Regulation is amended by striking out “satisfies the criteria described in section 6.0.2” and substituting “is eligible to become a specified Ontario multi-employer pension plan under subsection 6.0.2 (1) or (1.1)”.

(2) Subsection 6.0.3 (2) of the Regulation is amended by striking out “on or after September 1, 2007” and substituting “on or after, in the case of a plan that is eligible under subsection 6.0.2 (1), September 1, 2007 or, in the case of a plan that is eligible under subsection 6.0.2 (1.1), December 31, 2019”.

4. Subsection 6.0.4 (8) of the Regulation is amended by adding the following paragraph:

5. In the case of a specified Ontario multi-employer pension plan in respect of which section 6.0.5 applies, a statement that any adjustments to contributions or benefits to satisfy solvency funding or reduced solvency funding requirements determined in reports filed before December 31, 2019 will be deferred until January 1, 2024.

5. The Regulation is amended by adding the following section:

Reports on SOMEPPs, elections filed on or after December 31, 2019

6.0.5 (1) This section applies in respect of a specified Ontario multi-employer pension plan if the administrator filed the election under section 6.0.3 on or after December 31, 2019.

(2) In addition to the rules under section 6.0.4, the rules set out in subsection (4) apply to the plan and to the first report respecting the plan that is filed, under either section 3 or 14, after the election is filed (the “first report” for the purposes of this section).

(3) In this section, “specified consolidated prior solvency deficiency” refers to the present value, as of the valuation date of the first report, of all special payments that are required to liquidate any solvency deficiency or reduced solvency deficiency determined in a report filed or submitted under section 3, 13 or 14 before the filing of the first report.

(4) The following are the rules referred to in subsection (2):

1. If a solvency deficiency or reduced solvency deficiency was determined in a report filed or submitted under section 3, 13 or 14 before the filing of the first report and the deficiency has not yet been liquidated, the administrator shall establish a new five-year period during which the specified consolidated prior solvency deficiency is to be liquidated. The five-year period must begin no later than January 1, 2024.

2. Despite subsection 5 (1), clauses 5 (1.0.0.1) (f), (g), (h) and (i) and subsection 5 (1.0.1), the specified consolidated prior solvency deficiency determined in the first report must be liquidated, with interest at the rates described in subsection 5 (2), by equal monthly instalments over the period established under paragraph 1.

3. Monthly instalments to liquidate the specified consolidated prior solvency deficiency are deemed to be special payments under subsection 5 (1.0.0.1) made for the purpose of liquidating a solvency deficiency or reduced solvency deficiency.

6. (1) Subsection 14 (4.2) of the Regulation is revoked and the following substituted:

(4.2) Subsections (2) and (3) do not apply to a jointly sponsored pension plan listed in subsection 1.3.1 (3).

(5) Subject to subsection (6), subsections (2) and (3) do not apply to a multi-employer pension plan that is a specified Ontario multi-employer pension plan under section 6.0.1 that files a report required to be filed in respect of the plan under this section.

(6) Subsection (5) ceases to apply to a multi-employer pension plan referred to in that subsection as of the earlier of the following dates:

1. The first anniversary of the date on which section 81.0.2 of the Act comes into force.

2. January 1, 2024.

(2) Subsection 14 (4.2) of the Regulation, as re-made by subsection (1), is revoked.

(3) Subsection 14 (8.0.4) of the Regulation is amended by adding the following clause:

(c.1) in the case of a specified Ontario multi-employer pension plan in respect of which section 6.0.5 applies, the amount of the specified consolidated prior solvency deficiency, within the meaning of that section, and the special payments required to liquidate it in accordance with that section;

Ontario Regulation 177/11

7. Subsection 7 (4) of Ontario Regulation 177/11 is revoked.

Commencement

8. (1) Subject to subsections (2) and (3), this Regulation comes into force on December 31, 2019.

(2) Subsection 6 (1) and sections 7 and 8 come into force on the day this Regulation is filed.

(3) Subsection 6 (2) comes into force on January 1, 2024.

 

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