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TeachersPension Act

R.S.O. 1990, Chapter T.1

Historical version for the period December 15, 2005 to April 29, 2006.

Disclaimer: This consolidation is not an official copy of the law because it is affected by one or more retroactive provisions which have not been incorporated into it. For information about the retroactive provisions, see S.O. 2005, chapter 31, Schedule 21, subsection 8 (3) and S.O. 2006, chapter 33, Schedule Z.8, subsection 2 (2).

Amended by:  1991, c. 52, ss. 1-8; 1993, c. 39, ss. 1-7; 1998, c. 34, ss. 98-102; 2005, c. 31, Sched. 21.

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CONTENTS

1.

Definitions

2.

Pension plan continued

3.

Administrator

4.

Pension fund

5.

Contributions by the Crown

6.

Board continued

7.

Composition of the Board

8.

Powers, etc., of the Board

10.

Joint management

11.

Agreement for member responsibility

12.

Investments authorized

12.1

Going concern valuation

12.2

Special payments

13.

Continued application

14.

Payment of pensions, predecessor Acts

Definitions

1. (1) In this Act,

“active plan member”, of the pension plan, means a person who is making the contributions required of an active member of the plan or a person on whose behalf contributions required of an active member of the plan are being made; (“participant actif”)

“Board” means the Ontario TeachersPension Plan Board; (“Conseil”)

pension fund” means the pension fund maintained to provide benefits in respect of the Ontario TeachersPension Plan; (“caisse de retraite”)

pension plan” means the Ontario TeachersPension Plan; (“régime de retraite”)

“Schedule 1” means Schedule 1 to the TeachersPension Act, 1989 as amended from time to time. (“annexe 1”)  R.S.O. 1990, c. T.1, s. 1; 1991, c. 52, s. 1; 1993, c. 39, s. 1; 1998, c. 34, s. 98 (1).

Interpretation

(2) Expressions in this Act have the same meaning as under the Pension Benefits Act unless the context requires otherwise.  1998, c. 34, s. 98 (2).

Pension plan continued

2. (1) A pension plan known as the Ontario TeachersPension Plan is continued under the name Ontario TeachersPension Plan in English and Régime de retraite des enseignantes et des enseignants de l’Ontario in French.  R.S.O. 1990, c. T.1, s. 2 (1).

Defined benefits plan

(2) The pension plan is a defined benefit plan within the meaning of the Pension Benefits Act.  R.S.O. 1990, c. T.1, s. 2 (2).

Plan documents

(3) The terms of the pension plan are as set out in Schedule 1 and in such other governing documents as may be created or adopted under this Act or that Schedule.  R.S.O. 1990, c. T.1, s. 2 (3).

Sufficiency of assets

(4) The assets of the pension fund, including the present value of additional contributions to be made by the Minister of Education, shall be maintained at a level that, at the time of a valuation of the pension plan prepared by the plan actuary for filing with the Superintendent of Financial Services, is reasonably sufficient in the opinion of the actuary to meet the liabilities of the pension plan on a continuing basis.  1991, c. 52, s. 2; 1993, c. 39, s. 2; 1998, c. 34, s. 99; 2005, c. 31, Sched. 21, s. 1.

Administrator

3. The Board shall administer the pension plan and manage the pension fund in accordance with this Act, the Pension Benefits Act and the Income Tax Act (Canada).  R.S.O. 1990, c. T.1, s. 3.

Pension fund

4. The pension fund is continued.  R.S.O. 1990, c. T.1, s. 4.

Contributions by the Crown

5. (1) The Minister of Finance shall pay from the Consolidated Revenue Fund an amount equal to contributions under the pension plan payable by the Minister of Education.  R.S.O. 1990, c. T.1, s. 5 (1); 1993, c. 39, s. 3 (1); 2005, c. 31, Sched. 21, s. 2 (1).

Matching contributions

(1.1) The total amount of the contributions payable by the Minister of Education and the employers who contribute under the pension plan in respect of any year shall not exceed the amount of contributions payable by or on behalf of active plan members in respect of credited service for that year.  1991, c. 52, s. 3; 1993, c. 39, s. 3 (1); 2005, c. 31, Sched. 21, s. 2 (2).

Idem

(1.2) For the purpose of subsection (1.1), payments made under subsections (3), (4) and (7) shall not be included in determining the total amount of contributions payable by the Minister of Education and the employers who contribute under the plan.  1991, c. 52, s. 3; 1993, c. 39, s. 3 (1); 1998, c. 34, s. 100 (1); 2005, c. 31, Sched. 21, s. 2 (3).

(2) Repealed:  1998, c. 34, s. 100 (2).

Deficiency

(3) If in a year the amount of cash and assets capable of sale in the pension fund is insufficient to meet the payments out of the fund in the year after the sale of the assets capable of sale, the Minister of Finance shall pay from the Consolidated Revenue Fund an amount sufficient to make up the deficiency.  R.S.O. 1990, c. T.1, s. 5 (3); 1993, c. 39, s. 3 (1).

Limitation

(4) Subsection (3) ceases to apply if an agreement mentioned in subsection 11 (1) is in force.  R.S.O. 1990, c. T.1, s. 5 (4).

(5), (6) Repealed:  1993, c. 39, s. 3 (2).

Solvency deficiency

(7) If a solvency deficiency is disclosed by a solvency valuation under the Pension Benefits Act, the Minister of Education may, during the five years following the date of the valuation, make additional contributions to the pension plan.  1991, c. 52, s. 3; 1993, c. 39, s. 3 (1); 2005, c. 31, Sched. 21, s. 2 (4).

5.1 Repealed:  1998, c. 34, s. 101.

Board continued

6. (1) The Ontario TeachersPension Plan Board is continued as a corporation without share capital under the name Ontario TeachersPension Plan Board in English and Conseil du régime de retraite des enseignantes et des enseignants de l’Ontario in French.  R.S.O. 1990, c. T.1, s. 6 (1).

Application of Corporations Act

(2) The Corporations Act does not apply with respect to the Board.  R.S.O. 1990, c. T.1, s. 6 (2).

Composition of the Board

7. The composition of the Board shall be as is set out in the pension plan.  R.S.O. 1990, c. T.1, s. 7.

Powers, etc., of the Board

8. (1) The powers and duties of the Board shall be those set out in the pension plan.  R.S.O. 1990, c. T.1, s. 8.

Protection from liability

(2) No action or other proceeding for damages shall be commenced or continued against a member of the Board or against a member of a committee of the Board for an act done in good faith in the execution or intended execution of a power or duty under this Act, the pension plan or an agreement between the Minister of Education and the executive of The Ontario Teachers’ Federation in respect of the plan.  1991, c. 52, s. 4; 2005, c. 31, Sched. 21, s. 3.

9. Repealed:  1991, c. 52, s. 5.

Joint management

10. (1) The Minister of Education and the executive of The Ontario Teachers’ Federation may enter into an agreement that provides for the following matters:

1. The joint management of the pension plan by the Minister and the executive of the Federation.

2. The composition of the Board, the appointment of the members of the Board and the delineation of the powers and duties of the Board.

3. The sharing of entitlement to gains or surplus under the plan and of liability for deficiencies in the pension fund by the Minister, the employers who contribute under the plan and the active plan members.

4. The amendment of the plan, including the amendment of Schedule 1, by agreement between the Minister and the executive of the Federation.

5. The resolution of disputes between the Minister and the executive of the Federation with respect to amendments to the plan.

6. Any other matter to which the Minister and the executive of the Federation agree.  1991, c. 52, s. 6; 1993, c. 39, s. 5; 2005, c. 31, Sched. 21, s. 4 (1).

Filing of amendment

(2) An agreement amending the pension plan under paragraph 4 of subsection (1) shall be filed with the Superintendent of Financial Services and the amendment to the plan comes into force on the date of filing or on such later date as may be set out in the agreement.  1991, c. 52, s. 6; 2005, c. 31, Sched. 21, s. 4 (2).

Conflict with Pension Benefits Act

(3) To the extent that an amendment to the pension plan conflicts with the Pension Benefits Act in a matter in which the conflict is not authorized by this Act or Schedule 1, the amendment is void.  1991, c. 52, s. 6.

Agreement for member responsibility

11. (1) The Minister of Education and the executive of The Ontario Teachers’ Federation may enter into an agreement that provides,

(a) that the pension plan will continue;

(b) that the entitlement to gains or surplus and the liability for deficiencies in the pension fund are permanently assumed by the active plan members;

(c) that the liability of the Crown to contribute under the plan is limited to a specified amount or to a specified percentage of member contributions under the plan;

(d) that the members may amend the plan, subject to the restrictions described in clauses (b) and (c).  1991, c. 52, s. 7; 1993, c. 39, s. 6; 2005, c. 31, Sched. 21, s. 5 (1).

Filing of agreement

(2) An agreement under subsection (1) shall be filed with the Superintendent of Financial Services and comes into force on the date of filing or on such later date as may be set out in the agreement.  1991, c. 52, s. 7; 2005, c. 31, Sched. 21, s. 5 (2).

Repeal of Schedule 1

(3) Schedule 1 is repealed on the day the agreement under subsection (1) comes into force.  1991, c. 52, s. 7.

Investments authorized

12. (1) Despite the Pension Benefits Act and the regulations thereunder, the receipt and holding by the Board of debentures issued or transferred under section 12 of the TeachersPension Act, 1989, being chapter 92, shall not be considered imprudent or unreasonable or contrary to the Pension Benefits Act and the 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 pension plan.  R.S.O. 1990, c. T.1, s. 12 (1).

Transfer TeachersPensions

(2) Section 81 of the Pension Benefits Act does not apply to the transfers described in section 12 of the TeachersPension Act, 1989, being chapter 92.  R.S.O. 1990, c. T.1, s. 12 (2).

Going concern valuation

12.1 (1) A going concern valuation of the pension plan must be calculated in accordance with the documents that create and support the plan and with the following requirements:

1. The going concern assets of the plan, within the meaning of Regulation 909 (“General”) made under the Pension Benefits Act, must also include,

i. the present value of the basic contributions described in paragraph 2 that will be made in respect of service after the valuation date by the persons who were members of the plan on the valuation date, and

ii. the present value of any remaining special payments resulting from the initial valuation referred to in Schedule 2 as it read on January 1, 1998.

2. The basic contributions are the contributions required by sections 19, 21 and 23a of Schedule 1 calculated at the rate specified on January 1, 1998 and the contributions required by sections 25 and 26 of Schedule 1 as those sections read on January 1, 1998.

3. The going concern liabilities of the plan, within the meaning of Regulation 909, must also include,

i. the present value of the pension benefits and escalated adjustments that will accrue after the valuation date to the persons who were members of the plan on the valuation date, and

ii. the present value of the ancillary benefits for which the eligibility requirements will be satisfied after the valuation date by the persons who were members or former members of the plan on the valuation date.  1998, c. 34, s. 102.

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (1) is repealed by the Statutes of Ontario, 2005, chapter 31, Sched. 21, subsection 6 (1). Upon being proclaimed into force, this provision shall be deemed to have come into force on December 31, 2004.  See: 2005, c. 31, Sched. 21, ss. 6 (1), 8 (3).

Same, filed with the Superintendent

(2) A going concern valuation of the pension plan which is filed with the Superintendent of Financial Services must include the following information, determined in accordance with subsection (1) and section 12.2:

1. The present value of the future basic contributions.

2. The amount of any going concern unfunded liability.

3. The present value of any future unfunded liability contribution surcharge effective before the valuation date.

4. The amount of any actuarial gain or actuarial loss since the previous going concern valuation filed with the Superintendent.

5. The present value of any unfunded liability contribution surcharge that is required after taking into account any actuarial gain or actuarial loss since the previous going concern valuation filed with the Superintendent.

6. The unfunded liability contribution surcharge rate.  1998, c. 34, s. 102.

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (2) is repealed by the Statutes of Ontario, 2005, chapter 31, Sched. 21, subsection 6 (2). Upon being proclaimed into force, this provision shall be deemed to have come into force on December 31, 2004.  See: 2005, c. 31, Sched. 21, ss. 6 (2), 8 (3).

Solvency valuation

(3) A solvency valuation of the pension plan must be calculated in accordance with the documents that create and support the plan and with the following requirements:

1. The solvency assets of the plan, within the meaning of Regulation 909, must also include the present value of any remaining special payments resulting from the initial valuation referred to in Schedule 2 to the Act as it read on January 1, 1998.

2. The solvency liabilities of the plan, within the meaning of Regulation 909, must also include the present value of all of the liabilities relating to future escalated adjustments in respect of pension benefits accrued before the valuation date.  1998, c. 34, s. 102.

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (3) is repealed by the Statutes of Ontario, 2005, chapter 31, Sched. 21, subsection 6 (3). Upon being proclaimed into force, this provision shall be deemed to have come into force on December 31, 2004.  See: 2005, c. 31, Sched. 21, ss. 6 (3), 8 (3).

Transfer ratio

(4) The transfer ratio for the pension plan must be calculated in accordance with the following rules, despite the definition of “transfer ratio” in subsection 1 (2) of Regulation 909 made under the Pension Benefits Act and section 19 of that Regulation:

1. The solvency assets and solvency liabilities may be adjusted in the following manner:

i. The amount of the solvency assets (excluding the present value of any remaining special payments resulting from the initial valuation referred to in Schedule 2 as it read on January 1, 1998) is adjusted using an averaging method calculated over a period of not more than five years that stabilizes fluctuations in the market value of the assets of the plan.

ii. The solvency liabilities are adjusted using a solvency valuation interest rate that is the average of market interest rates calculated over the same period as is used for the averaging method referred to in subparagraph i.

2. The adjustments authorized by paragraph 1 must be made to both the solvency assets and the solvency liabilities.

3. The present value of any remaining special payments in respect of a solvency deficiency must be included in the solvency assets.  1998, c. 34, s. 102.

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (4) is repealed by the Statutes of Ontario, 2005, chapter 31, Sched. 21, subsection 6 (4).  See: 2005, c. 31, Sched. 21, ss. 6 (4), 8 (2).

Special payments

12.2 (1) This section applies if, in the absence of subsection (2), special payments would be required under the Pension Benefits Act as a result of a going concern valuation of the pension plan calculated in accordance with this section.  1998, c. 34, s. 102.

Plan amendments

(2) The pension plan must be amended so that the actuarial value of the changes made by the amendment results in the elimination of the going concern unfunded liability in respect of which the special payments would otherwise be required under the Pension Benefits Act.  1998, c. 34, s. 102.

Same

(3) The amendment required by subsection (2) must take effect no later than the first January 1 after the valuation date, despite section 12 of Regulation 909 made under the Pension Benefits Act.  1998, c. 34, s. 102.

Going concern valuation

(4) A going concern valuation of the pension plan must be calculated in accordance with subsection 12.1 (1) and with the following requirements:

1. Any actuarial gain described in paragraph 2 must first be used to eliminate or reduce the present value of any unfunded liability contribution surcharge described in paragraph 3. The present value of any remaining unfunded liability contribution surcharge must be amortized over the remainder of the existing amortization period or over a shorter period. Subsection 7 (1) of Regulation 909 does not apply with respect to the actuarial gain.

2. For the purposes of paragraph 1, the actuarial gain must be determined before taking into account any amendment to the plan since the previous valuation date which results in an increase in going concern liabilities or a decrease in going concern assets.

3. The unfunded liability contribution surcharge is the amount of the contribution that employers and members will be required to make in any year following the valuation date that exceeds the amount of their basic contributions.

4. The unfunded liability contribution surcharge for a year is calculated by multiplying the pensionable salaries in that year of all members of the plan by the unfunded liability contribution surcharge rate described in paragraph 5.

5. The unfunded liability contribution surcharge rate for a year is calculated using the formula,

[A/B]/2

in which,

“A” is the going concern unfunded liability, determined before taking into account any amendment to the plan since the previous valuation date which results in an increase in going concern liabilities or a decrease in going concern assets, and

“B” is the present value of the future pensionable salaries earned after the valuation date by the persons who were members of the plan on the valuation date.  1998, c. 34, s. 102.

Note: On a day to be named by proclamation of the Lieutenant Governor, section 12.2 is repealed by the Statutes of Ontario, 2005, chapter 31, Sched. 21, section 7. Upon being proclaimed into force, this provision shall be deemed to have come into force on December 31, 2004.  See: 2005, c. 31, Sched. 21, ss. 7, 8 (3).

Continued application

13. (1) The Teachers’ Superannuation Act, 1983, being chapter 84, as it read on the 31st day of December, 1989, continues to apply to the computation or payment of every allowance, annuity, pension or deferred pension or payment to the payment of which a person became entitled under that Act before that date, and continues to apply in respect of every person who, within the meaning of that Act, ceased to be a contributor on or before that date and is entitled to a deferred allowance under that Act.  R.S.O. 1990, c. T.1, s. 13 (1).

Idem

(2) The Teachers’ Superannuation Act, 1983, being chapter 84, as it read on the 31st day of December, 1989, continues to apply in respect of every person who is entitled to a survivor benefit, death benefit, right or allowance with respect to contributions made by a person referred to in subsection (1).  R.S.O. 1990, c. T.1, s. 13 (2).

Payment of pensions, predecessor Acts

14. Every allowance, pension or deferred pension or other payment under the Teachers’ Superannuation Act, 1983, being chapter 84, 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 pension fund in accordance with the Act under which entitlement to the payment arose.  R.S.O. 1990, c. T.1, s. 14.

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