Public Service Pension Act
R.S.O. 1990, CHAPTER P.48
Historical version for the period October 19, 2006 to July 24, 2007.
Amended by: 1994, c. 17, s. 145; 1996, c. 1, Sched. L, s. 1; 1996, c. 6, s. 6; 1999, c. 6, s. 57; 2005, c. 5, s. 61; 2006, c. 9, Sched. L; 2006, c. 21, Sched. F, s. 136 (1).
CONTENTS
Definitions | |
Application to employees | |
Plan continued | |
Plan documents | |
Fund continued | |
Future revision of Plan | |
Winding up | |
Investments authorized | |
Initial unfunded liability | |
Interim payments of unfunded liability | |
Initial valuation | |
Subsequent valuations | |
Payment of pensions under other Acts | |
Continued application | |
Post-retirement marriage | |
Information and Privacy Commissioner | |
Ombudsman |
Definitions
“actuary”, “Board”, “Crown”, “employer”, “Fund”, “member”, “Minister”, “pension”, “pension benefit”, “Plan”, “salary” and “Treasurer” have the same meaning as in section 1 of Schedule 1. (“actuaire”, “Commission”, “Couronne”, “employeur”, “Caisse”, “participant”, “ministre”, “pension”, “prestation de retraite”, “Régime”, “salaire”, “trésorier”)
Idem
(2) In this Act,
“Schedule 1” or “Schedule 2” means Schedule 1 or 2, as the case may be, to the Public Service Pension Act, 1989, being chapter 73, as amended from time to time. R.S.O. 1990, c. P.48, s. 1.
Application to employees
2. Subject to subsection 13 (2) of this Act and to section 24 of Schedule 1, this Act applies to every person employed after the 31st day of December, 1989 in the service of an employer. R.S.O. 1990, c. P.48, s. 2.
Plan continued
3. The pension plan known as the Public Service Pension Plan is continued under the name Public Service Pension Plan in English and Régime de retraite des fonctionnaires in French. R.S.O. 1990, c. P.48, s. 3.
Plan documents
4. The terms of the Plan are those set out in Schedule 1, in this Act and in such other documents concerning the Plan as are created under this Act or Schedule 1. R.S.O. 1990, c. P.48, s. 4.
Fund continued
5. (1) The Public Service Pension Fund is continued under the name Public Service Pension Fund in English and Caisse de retraite des fonctionnaires in French.
Board to administer
(2) The Plan and the Fund shall be administered by the Board in accordance with this Act and the Plan. R.S.O. 1990, c. P.48, s. 5.
Future revision of Plan
6. (1) The Lieutenant Governor in Council by order may amend the Plan and, without restricting the generality of the foregoing, may,
(a) determine the methods or assumptions to be used to calculate any pension benefit provided under the Plan;
(b) rescind the Plan and replace it with another pension plan;
(c) extend, modify or restrict the conditions upon which persons may become members of the Plan;
(d) establish a separate pension plan or plans for any class or classes of persons who are members of the Plan, and direct the transfer from the Fund to any fund related to such separately established pension plan or plans of any amount specified to represent the value, as determined by an actuarial valuation, of the pension benefits of persons who will be members of such separately established pension plan or plans;
(e) increase or prospectively reduce, eliminate or modify any pension benefit set out in the Plan or the rate or amount of contribution to be made under the Plan;
(f) regulate the administration of the Plan and the composition, duties and powers of the Board;
(g) exercise with respect to any plan established under this section the powers conferred by this section. R.S.O. 1990, c. P.48, s. 6 (1).
Limitation re amendment
(2) An amendment of the Plan made under subsection (1) is void to the extent that it conflicts with the Pension Benefits Act in a matter in which the conflict is not authorized by this Act or by Schedule 1 to the Public Service Pension Act, 1989, being chapter 73, as that Schedule read on the 31st day of December, 1989. R.S.O. 1990, c. P.48, s. 6 (2).
Agreement for joint responsibility
(3) If the Crown enters into an agreement for an indefinite term with representatives of a majority of the members with respect to,
(a) the joint management of the Plan and the Fund by the Crown and representatives of the members;
(b) the sharing between the Crown and the members of surpluses and deficiencies in the Fund;
(c) prior consultation between the Crown and the representatives to determine if agreement can be reached between them concerning any change in benefits under the Plan or in the rate or amount of contributions to the Fund from the Crown or the members; and
(d) mediation procedures following a failure to agree on a change in benefits under the Plan or in the rate or amount of contributions to the Fund,
the powers mentioned in subsection (1) shall, while the agreement remains in force, be exercised only in accordance with the agreement. R.S.O. 1990, c. P.48, s. 6 (3).
Idem
(4) An agreement mentioned in subsection (3) may also provide that, to the extent specified in the agreement, subsections 11 (2) and (5) cease to apply while the agreement is in force. R.S.O. 1990, c. P.48, s. 6 (4).
Agreement for member responsibility
(5) If it is agreed between the Crown and representatives of a majority of members that the management of the Plan, the entitlement to surpluses in the Fund and the liability for deficiencies in the Fund will be permanently assumed by the members from time to time of the Plan and that the liability of the Crown to contribute to the Fund will be limited to a specified amount or to a specified percentage of members’ contributions or salaries, the Lieutenant Governor in Council may provide by order that the powers mentioned in subsection (1) shall be exercised thereafter only in accordance with the agreement and by the person, persons or entity specified in the agreement. R.S.O. 1990, c. P.48, s. 6 (5).
Application of Regulations Act
(6) The Regulations Act does not apply with respect to an order amending the Plan. R.S.O. 1990, c. P.48, s. 6 (6).
Note: Effective October 19, 2007 or on an earlier day to be named by proclamation of the Lieutenant Governor, subsection (6) is amended by the Statutes of Ontario, 2006, chapter 21, Schedule F, subsection 136 (1) striking out “The Regulations Act” and substituting “Part III (Regulations) of the Legislation Act, 2006”. See: 2006, c. 21, Sched. F, ss. 136 (1), 143 (1).
Winding up
6.1 (1) The Board shall not wind up the Plan in whole or in part under subsection 68 (1) of the Pension Benefits Act or otherwise unless the Board obtains the consent of the Lieutenant Governor in Council to do so.
Same
(2) The Superintendent of Pensions shall not require the wind up of the Plan in whole or in part under subsection 69 (1) of the Pension Benefits Act. He or she shall not wind up or directly or indirectly cause the wind up of the Plan in whole or in part under any other authority.
Effective date
(3) The Superintendent of Pensions shall not change the effective date of a wind up under subsection 68 (6) of the Pension Benefits Act unless he or she obtains the consent of the Lieutenant Governor in Council to do so.
Conflict
(4) This section prevails over the Pension Benefits Act.
Prohibition
(5) No proceeding shall be commenced against a person for any of the following:
1. For an action taken, or not taken, as required or authorized by subsection (1), (2) or (3).
2. For the breach of a fiduciary or other duty in connection with a wind up or a failure to wind up the Plan in whole or in part.
3. For damages for the breach of an agreement in connection with a wind up or a failure to wind up the Plan in whole or in part.
Transition
(6) A person who makes payments into the Fund because of a wind up of the Plan in whole or in part with an effective date on or after January 1, 1993 and before the day on which the Savings and Restructuring Act, 1995 receives Royal Assent is entitled to be reimbursed. 1996, c. 1, Sched. L, s. 1.
Investments authorized
7. (1) Despite the Pension Benefits Act and regulations thereunder, the receipt and holding by the Board of debentures issued under section 7 of the Public Service Pension Act, 1989, being chapter 73, shall not be considered imprudent or unreasonable or contrary to the Pension Benefits Act and regulations thereunder, and the nature, amount and terms of the debentures may be taken into account by the Board and any committee of the Board in determining future investments of the assets of the Plan.
Transfers
(2) Section 81 of the Pension Benefits Act does not apply to the transfers described in section 7 of the Public Service Pension Act, 1989, being chapter 73. R.S.O. 1990, c. P.48, s. 7.
Initial unfunded liability
8. (1) In this section and in sections 9 and 10 and subsection 11 (3),
“actuarial gain” and “actuarial loss” mean, respectively, the sum, if positive, or the sum, if negative, of,
(a) the gain to the Plan during the period since the review date of the immediately preceding going concern valuation resulting from the difference between actual experience and the experience expected by the actuarial assumptions on which that valuation was based,
(b) the amount by which the going concern liabilities decrease as a result of an amendment to the Plan, and
(c) the amount by which the going concern liabilities decrease or the going concern assets increase as a result of a change in actuarial methods or assumptions upon which the current going concern valuation is based, as of the review date for a going concern valuation,
but clause (a), (b) or (c) or any combination thereof shall be counted as a negative in the calculation of the sum if,
(d) the experience of the Plan results in a loss rather than a gain,
(e) an amendment increases the going concern liabilities, or
(f) a change in actuarial methods or assumptions results in an increase in going concern liabilities or a decrease in going concern assets, as the case may be; (“gain actuariel”, “perte actuarielle”)
“going concern assets” means the value of the assets of the Plan, including accrued and receivable income and the present value of future contributions and investment income, determined on the basis of a going concern valuation; (“actif à long terme”)
“going concern liabilities” means the present value of the expenses of the Plan and the accrued and unaccrued benefits of the Plan determined on the basis of a going concern valuation; (“passif à long terme”)
“going concern unfunded actuarial liability” means the excess of going concern liabilities over going concern assets; (“passif actuariel à long terme non capitalisé”)
“going concern valuation” means a valuation of assets and liabilities of the Plan using methods and actuarial assumptions considered by the actuary who valued the Plan to be in accordance with generally accepted actuarial principles and practices for the valuation of a continuing pension plan; (“évaluation à long terme”)
“initial valuation” means the going concern valuation of the Plan as at the 1st day of January, 1990 required by section 10; (“évaluation initiale”)
“past service unfunded actuarial liability” means the amount of going concern unfunded actuarial liability that results from the provision of benefits with respect to prior employment for which no benefit was provided at the time of the employment or from an amendment to the Plan that provides benefits for employment prior to the date of the amendment if the employment had not previously been recognized for purposes of the provision of pension benefits; (“passif actuariel pour services antérieurs non capitalisé”)
“review date” means the last date of the period under review in a report required under the Pension Benefits Act or regulations thereunder; (“date de révision”)
“solvency assets” means the sum determined in accordance with subsections (2) and (3) of,
(a) the market value of investments held by the Plan or a value related to the market value by means of an averaging method that stabilizes short-term fluctuations of the market values over a period of not more than five years, plus any cash balances and accrued or receivable income items,
(b) the present value of any special payments required to liquidate any past service unfunded actuarial liability established on or after the 1st day of January, 1988,
(c) the present value of any special payments other than those referred to in clause (b) established on or after the 1st day of January, 1988 that are scheduled for payment within five years after the review date, and
(d) the present value of future special payments resulting from the initial valuation; (“actif de solvabilité”)
“solvency deficiency” means the excess of the solvency liabilities over the solvency assets; (“déficit de solvabilité”)
“solvency gain” means the sum, if positive, of,
(a) the gain to the Plan during the period since the review date of the immediately preceding valuation of solvency assets and solvency liabilities resulting from the difference between actual experience and the experience expected by the actuarial assumptions on which that valuation was based, and
(b) the amount by which the solvency liabilities decrease or the solvency assets increase during the period since the review date of the immediately preceding valuation of solvency assets and solvency liabilities as a result of a change in the actuarial methods or assumptions upon which the current valuation of solvency assets and solvency liabilities is based,
but either of clause (a) or (b) shall be counted as a negative in the calculation of the sum if the experience of the Plan results in a loss rather than a gain or if a change in actuarial methods or assumptions results in an increase in solvency liabilities or a decrease in solvency assets, as the case may be; (“gain de solvabilité”)
“solvency liabilities” means an amount that is not less than the liabilities of the Plan determined as if the Plan had been wound up, taking into account liabilities for the adjustment for inflation under the Plan and the requirements of section 74 of the Pension Benefits Act. (“passif de solvabilité”)
Present values re solvency assets
(2) The present values referred to in clauses (b), (c) and (d) of the definition of “solvency assets” shall be determined on the basis of the assumed interest rate used in determining whether there is a solvency deficiency.
If no market value
(3) In calculating the solvency assets, if there is no market value for an investment of the Plan and the investment is issued or guaranteed by a government, the book value of the investment may be used instead of market value.
Conflicting provisions
(4) This section and sections 9, 10 and 11 prevail over any conflicting provisions of the Pension Benefits Act or of a regulation made under that Act. R.S.O. 1990, c. P.48, s. 8.
Interim payments of unfunded liability
9. (1) For each month in the period commencing with the 1st day of January, 1990 and ending with the last day of the month in which the initial valuation is approved by the Pension Commission of Ontario, the Treasurer shall pay to the Fund from the Consolidated Revenue Fund the amount shown for that month in Schedule 2.
Prepayment
(2) The Treasurer may, with the appropriate adjustment for interest, at any time prepay one or more of the outstanding payments shown in Schedule 2.
Application of estimated payments
(3) Payments made under subsection (1) or (2) shall be credited against any special payments that are to be made in the same period to liquidate a going concern unfunded actuarial liability disclosed by the initial valuation, and any amount by which the payments made under those subsections are less than the special payments for that period as a result of the initial valuation shall be paid by the Treasurer to the Fund from the Consolidated Revenue Fund within fifteen months following the month when the initial valuation is approved by the Pension Commission of Ontario. R.S.O. 1990, c. P.48, s. 9.
Initial valuation
10. (1) As soon as practicable after the 31st day of December, 1989, the Board shall cause to be prepared a going concern valuation of the Plan as at the 1st day of January, 1990, and the valuation shall include the adjustment of pensions for inflation under the Plan.
Idem
(2) The initial valuation shall,
(a) comply with this section and section 11;
(b) be delivered by the actuary to the Board and to the Minister and the Treasurer, and shall be filed with the Pension Commission of Ontario by the Board only after the Minister and the Treasurer have advised the Board in writing that they agree that the initial valuation delivered to them be filed; and
(c) for all purposes of the Plan determine the going concern unfunded actuarial liability or surplus of the Plan as at the 1st day of January, 1990.
Liability liquidated
(3) Any going concern unfunded actuarial liability disclosed by the initial valuation shall be liquidated by a series of special payments from the Consolidated Revenue Fund to be made over the forty years commencing on the 1st day of January, 1990.
Calculation of special payments
(4) Each special payment mentioned in subsection (3) shall be calculated as a constant percentage of the projected future earnings from employment used to calculate pension benefits during the forty years commencing on the 1st day of January, 1990 of all persons who are members of the Plan on that date and of those who are expected to join the Plan during those forty years.
Present value of special payments
(5) The present value, as at the 1st day of January, 1990, of the full series of special payments shall equal the amount of the going concern unfunded actuarial liability to be liquidated.
Schedule of payments
(6) The actuary shall prepare and submit with the initial valuation a schedule showing the dollar amount of each special payment in the first six years of the series and the formula by which the dollar amount of the remaining special payments in the series is determined.
Prepayments and additional payments
(7) The Treasurer may, at any time, prepay a part or all of any outstanding special payments or may make additional payments to the Fund to be applied, with appropriate adjustments for interest, as the Treasurer shall direct to reduce the going concern unfunded actuarial liability disclosed by the initial valuation, and every such payment may be paid out of the Consolidated Revenue Fund. R.S.O. 1990, c. P.48, s. 10 (1-7).
(8) Repealed: 1994, c. 17, s. 145.
Subsequent valuations
11. (1) A going concern valuation of the Plan made after the initial valuation shall include the present value of the outstanding special payments calculated under section 10 that remain to be made to liquidate the going concern unfunded actuarial liability disclosed by the initial valuation, and the actuary shall prepare and submit with the valuation a schedule showing the amount, determined from the formula mentioned in subsection 10 (6), of each remaining special payment for the next six years or for the period of time for which special payments remain to be made, whichever is shorter. R.S.O. 1990, c. P.48, s. 11 (1).
Application of actuarial gain
(2) Any actuarial gain disclosed by a going concern valuation made after the initial valuation shall be applied in the following order and manner:
1. The amount of the gain shall first be applied to reduce, and to eliminate if possible, the payments required to liquidate any unamortized balance of a solvency deficiency disclosed by the initial valuation or a subsequent valuation.
2. When no solvency deficiency remains, the amount of the gain shall be applied to reduce, and to eliminate if possible, a going concern unfunded actuarial liability disclosed by a valuation after the initial valuation.
3. When no other going concern unfunded actuarial liability remains, the amount of the gain shall be applied to reduce, and to eliminate if possible, the unliquidated amount of the going concern unfunded actuarial liability disclosed by the initial valuation. R.S.O. 1990, c. P.48, s. 11 (2).
Special payments a solvency asset
(3) In determining any solvency gain or solvency deficiency of the Plan, solvency assets shall include the present value of future special payments resulting from the initial valuation. R.S.O. 1990, c. P.48, s. 11 (3).
Solvency valuation, valuation date on or after December 31, 2005
(3.1) Despite the definition of “solvency liabilities” in subsection 8 (1), a solvency valuation in a report filed with the Superintendent under the Pension Benefits Act with a valuation date on or after December 31, 2005 may exclude liabilities for adjustments for inflation under the Plan from the solvency liabilities of the Plan in determining whether the Plan has a solvency deficiency. 2006, c. 9, Sched. L, s. 1.
When special payments cease
(4) When the special payments made as a result of the initial valuation, the prepayments and additional payments made under subsection 10 (7), and the actuarial gains applied under paragraph 3 of subsection (2) have liquidated the going concern unfunded actuarial liability disclosed by the initial valuation, no further special payments shall be made, even if the period of forty years used in the initial valuation has not then expired. R.S.O. 1990, c. P.48, s. 11 (4).
Minister to approve valuation
(5) No valuation of the Plan after the initial valuation shall be filed by the Board with the Pension Commission of Ontario until the Minister has advised the Board in writing that he or she agrees that the valuation be filed. R.S.O. 1990, c. P.48, s. 11 (5).
Payment of pensions under other Acts
12. Every allowance, annuity, deferred annuity or other payment under the Public Service Superannuation Act, being chapter 419 of the Revised Statutes of Ontario, 1980, or a predecessor Act or under the Superannuation Adjustment Benefits Act, being chapter 490 of the Revised Statutes of Ontario, 1980, or a predecessor Act, including any payment authorized to be made from the Consolidated Revenue Fund, that, before the 1st day of January, 1990, a person was receiving, was entitled to receive, or was entitled to receive with the payment thereof deferred until the year 1990 or later, shall be paid out of the Fund in accordance with the Act under which entitlement to the payment arose. R.S.O. 1990, c. P.48, s. 12.
Continued application
13. (1) The Public Service Superannuation Act, being chapter 419 of the Revised Statutes of Ontario, 1980, as it read on the 31st day of December, 1989, continues to apply to the computation or payment of every allowance, annuity, deferred annuity or payment to the payment of which a person has become entitled under that Act prior to that date, and continues to apply in respect of every person who, within the meaning of that Act, has ceased to be a contributor before that date and is entitled to a deferred annuity under that Act.
Exception for re-employment
(2) A person mentioned in subsection (1) who is re-employed in the service of the Crown or who becomes a member of the Plan, on or after the 1st day of January, 1990, for a prescribed period of time and in prescribed circumstances, terms or conditions, and who is required by, or entitled under, the Plan to contribute to the Fund in respect of such re-employment, may participate in the Plan to the extent prescribed with respect to the computation or payment of a pension or other payment and subsection (1) does not apply in the circumstances.
Regulations
(3) The Lieutenant Governor in Council may make regulations prescribing a period or periods of time and prescribing circumstances, terms or conditions and the extent of participation in the Plan for the purpose of subsection (2). R.S.O. 1990, c. P.48, s. 13.
Post-retirement marriage
14. (1) A contributor as defined in the Public Service Superannuation Act, being chapter 419 of the Revised Statutes of Ontario, 1980,
(a) who is being paid an allowance or annuity under that Act;
(b) who has no spouse entitled to a survivor allowance under section 20 of that Act; and
(c) who becomes the spouse of a person who would not be entitled on the death of the contributor to a survivor allowance under section 20 of that Act,
may in writing direct the Board to pay to the person, if he or she survives the death of the contributor, a survivor allowance under section 20 of that Act for life of 50 per cent, 55 per cent, 60 per cent, 65 per cent, 70 per cent or 75 per cent of the allowance or annuity received by the contributor immediately before his or her death. R.S.O. 1990, c. P.48, s. 14 (1); 1999, c. 6, s. 57 (1); 2005, c. 5, s. 61 (1).
Time limit
(2) A direction mentioned in subsection (1) must be delivered to the Board,
(a) within ninety days after the date on which the contributor became the spouse of the person to whom the survivor allowance is directed to be paid; or
(b) if immediately before the person becomes the spouse of the contributor there is a child of the contributor who would be entitled on the contributor’s death to receive an allowance under the Public Service Superannuation Act, within ninety days after the date the child ceases to be entitled to receive the allowance. R.S.O. 1990, c. P.48, s. 14 (2); 1999, c. 6, s. 57 (2); 2005, c. 5, s. 61 (2).
Exception
(3) The Board may accept a direction delivered after the time mentioned in subsection (2) if the Board is satisfied that the contributor is in good health having regard to his or her age. R.S.O. 1990, c. P.48, s. 14 (3).
Actuarial reduction of allowance
(4) The annuity or allowance payable to a contributor who has given a direction in accordance with this section shall be actuarially reduced in a manner approved by the Board to reflect the survivor allowance directed to be paid and, subject to subsection (5), and to section 20 of the Public Service Superannuation Act, the survivor allowance shall be paid in the percentage specified in the direction to the spouse if he or she survives the death of the contributor. R.S.O. 1990, c. P.48, s. 14 (4); 1999, c. 6, s. 57 (3); 2005, c. 5, s. 61 (3).
Prior interest of child
(5) A survivor allowance under this section shall not be paid while there is a child of the deceased contributor entitled to receive an allowance as a result of the death of the contributor. R.S.O. 1990, c. P.48, s. 14 (5).
Refund when no survivor allowance payable
(6) If a contributor who is in receipt of an allowance or annuity dies survived by a child or children under eighteen years of age or by a spouse from whom the contributor is not living separate and apart, and if none of them is entitled to a survivor allowance under section 20 of the Public Service Superannuation Act, this section or that Act as a result of the death of the contributor, the amount, if any, by which twice the total of contributions made under the Public Service Superannuation Act to the Public Service Superannuation Fund by or on behalf of the contributor and of the interest credited in that Fund to the contributor exceeds the total payments made from the Fund and the Public Service Superannuation Fund to the contributor shall be paid from the Fund to the surviving spouse, or if there is no surviving spouse, to the child or children, if any, of the contributor under eighteen years of age at the contributor’s death. R.S.O. 1990, c. P.48, s. 14 (6); 1999, c. 6, s. 57 (4); 2005, c. 5, s. 61 (4).
Definition
(7) Subject to subsection (8), in this section,
“spouse” has the same meaning as in the Pension Benefits Act. 2005, c. 5, s. 61 (5).
Same
(8) In clause (1) (b),
“spouse” means a person who, if predeceased by the contributor, would be a widow or widower within the meaning of the Public Service Superannuation Act. 1999, c. 6, s. 57 (5).
Information and Privacy Commissioner
15. (1) The Information and Privacy Commissioner may purchase credit in the Plan under clause 11 (1) (b) of the Plan for service during the period beginning on June 8, 1995 and ending on the day before the MPPs Pension and Compensation Reform Act, 1996 receives Royal Assent.
Restriction
(2) Despite subsection (1), the Commissioner is not entitled to purchase the credit unless the service is approved in accordance with the past service certification procedure under subsections 8307 (1) and (2) of the Income Tax Regulations (Canada).
Payment by Minister
(3) If the Commissioner applies to the Board to purchase the credit within four months after the MPPs Pension and Compensation Reform Act, 1996 receives Royal Assent, the Minister shall pay from the Consolidated Revenue Fund to the Board an amount equal to the amount determined by the Board to be payable by the Commissioner to purchase the credit.
Entitlement for service before June 8, 1995
(4) The following rules apply for the purpose of determining the Commissioner’s entitlements under the Plan relating to his or her service in that capacity before June 8, 1995:
1. The Commissioner is not entitled to receive a pension under the Plan for service before June 8, 1995.
2. The Commissioner is not entitled to make contributions under the Plan for service before June 8, 1995.
3. Service by the Commissioner (including service in the capacity of acting Commissioner) shall be taken into account in any determination of whether he or she is entitled to a pension for which a person’s eligibility is determined with reference to the number of years of his or her service or a combination of the person’s age and number of years of service. 1996, c. 6, s. 6.
Ombudsman
16. Section 15 applies, with necessary modifications, with respect to the Ombudsman. 1996, c. 6, s. 6.
______________