O. Reg. 312/15: GENERAL, Filed October 22, 2015 under Pension Benefits Act, R.S.O. 1990, c. P.8
ontario regulation 312/15
made under the
Pension Benefits Act
Made: October 21, 2015
Filed: October 22, 2015
Published on e-Laws: October 22, 2015
Printed in The Ontario Gazette: November 7, 2015
Amending Reg. 909 of R.R.O. 1990
(GENERAL)
1. Section 3 of Regulation 909 of the Revised Regulations of Ontario, 1990 is amended by adding the following subsection:
(1.1.1) Subsection (1) does not apply with respect to an amendment that relates to a conversion and transfer of assets under section 80.4 of the Act or to a conversion under section 81.0.1 of the Act.
2. The Regulation is amended by adding the following section:
29.2 (1) This section applies if either of the following circumstances exist:
1. An employer has transferred assets under section 80.4 of the Act from a single employer pension plan to a jointly sponsored pension plan that is subsequently wound up and the assets of the jointly sponsored pension plan are not sufficient to pay all pensions, deferred pensions or ancillary benefits under the pension plan to any individual who was, on the effective date of the transfer of assets, a member, former member, retired member or other person entitled to benefits under the single employer pension plan.
2. An employer has converted a single employer pension plan under section 81.0.1 of the Act into a jointly sponsored pension plan that is subsequently wound up and the assets of the jointly sponsored pension plan are not sufficient to pay all pensions, deferred pensions or ancillary benefits under the pension plan to any individual who was, on the effective date of the conversion, a member, former member, retired member or other person entitled to benefits under the single employer pension plan.
(2) The employer of the single employer pension plan shall pay an amount into the jointly sponsored pension plan in respect of each individual described in subsection (1) equal to the amount calculated using the formula,
A × (1 – B)
in which,
“A” is the amount calculated as of the date of the jointly sponsored pension plan’s wind up that is equal to the Ontario wind up liability of the pension benefits, pensions, deferred pensions and ancillary benefits of the individual that accrued under the jointly sponsored pension plan as a result of the transfer of assets under section 80.4 of the Act or of the conversion under section 81.0.1 of the Act and as of the effective date of the transfer of assets or of the conversion.
“B” is the wind up funded ratio of the jointly sponsored pension plan as of the date of its wind up.
(3) Any amount paid into the jointly sponsored pension plan by an employer under subsection (2) in respect of an individual shall be applied by the administrator of the jointly sponsored pension plan to offset the reduction in the individual’s pension, deferred pension or ancillary benefits under subsection 29 (9).
(4) If an employer does not pay all of the amounts required under subsection (2) because the employer became bankrupt within the meaning of the Bankruptcy and Insolvency Act (Canada), any amounts paid by the employer under that subsection shall be applied by the administrator of the pension plan to offset the reduction in the pensions, deferred pensions and ancillary benefits of all of the individuals described in subsection (1) on a basis proportionate to the amounts that would have been paid by the employer into the pension plan for each individual if the employer had not become bankrupt.
3. Subsection 40 (1) of the Regulation is amended by adding the following clause:
(u.1) for a pension plan that is a jointly sponsored pension plan that received a transfer of assets under section 80.4 of the Act during the period covered by the statement, a description of any changes in the governance structure of the jointly sponsored pension plan, including the methods by which the decisions regarding the appointment of the administrator of the pension plan or the appointment or selection of persons as members of any body or entity referred to in clause 8 (1) (b), (c), (e), (f) or (h) of the Act that is the administrator of the pension plan, are made after the conversion and transfer of assets under section 80.4 of the Act.
4. Subsection 40.1 (1) of the Regulation is amended by adding the following clause:
(r.1) for a pension plan that is a jointly sponsored pension plan that received a transfer of assets under section 80.4 of the Act during the period covered by the statement, a description of any changes in the governance structure of the jointly sponsored pension plan, including the methods by which the decisions regarding the appointment of the administrator of the pension plan or the appointment or selection of persons as members of any body or entity referred to in clause 8 (1) (b), (c), (e), (f) or (h) of the Act that is the administrator of the pension plan, are made after the conversion and transfer of assets under section 80.4 of the Act.
5. Subsection 40.2 (1) of the Regulation is amended by adding the following clause:
(q.1) for a pension plan that is a jointly sponsored pension plan that received a transfer of assets under section 80.4 of the Act during the period covered by the statement, a description of any changes in the governance structure of the jointly sponsored pension plan, including the methods by which the decisions regarding the appointment of the administrator of the pension plan or the appointment or selection of persons as members of any body or entity referred to in clause 8 (1) (b), (c), (e), (f) or (h) of the Act that is the administrator of the pension plan, are made after the conversion and transfer of assets under section 80.4 of the Act.
Commencement
6. This Regulation comes into force on the later of the day section 12 of Schedule 26 to the Building Opportunity and Securing Our Future Act (Budget Measures), 2014 comes into force and the day this Regulation is filed.