Ontario Public Service Employees' Union Pension Act, 1994, S.O. 1994, c. 17, s. 143, Sched.

Ontario Public Service Employees’ Union Pension Act, 1994

S.O. 1994, CHAPTER 17
section 143, Schedule

Historical version for the period January 30, 1996 to December 14, 2009.

Last amendment: 1996, c. 1, Sched. L, s. 2.

Purpose

1. The purpose of this Act is to authorize the establishment of the Ontario Public Service Employees’ Union Pension Plan and to provide for a temporary reduction in certain payments made by employers and employees to the Public Service Pension Fund and the Ontario Public Service Employees’ Union Pension Fund. 1994, c. 17, s. 143, Sched.

Definitions

2. In this Act,

“actuarial gain”, “actuarial loss”, “going concern unfunded liability” and “going concern valuation” have the same meaning as in subsection 1 (2) of Revised Regulation 909; (“gain actuariel”, “perte actuarielle”, “passif à long terme non capitalisé”, “évaluation à long terme”)

“employer” means an employer as defined in the PSP Plan as it read immediately before the coming into force of this Act; (“employeur”)

“employer contributions” means payments an employer is required to make under a pension plan that are necessary to meet the normal costs of the pension plan; (“cotisation patronale”)

“OPSEU” means the Ontario Public Service Employees’ Union; (“SEFPO”)

“OPSEU Fund” means the pension fund of the OPSEU Plan and includes the pension fund of any successor pension plan; (“Caisse du SEFPO”)

“OPSEU Plan” means the pension plan established under section 4 and includes any successor pension plan; (“Régime du SEFPO”)

“pension plan” means a pension plan as defined in the Pension Benefits Act; (“régime de retraite”)

“PSP Fund” means the Public Service Pension Fund of the PSP Plan and includes the pension fund of any successor pension plan; (“Caisse de retraite des fonctionnaires”)

“PSP Plan” means the Public Service Pension Plan under the Public Service Pension Act and includes any successor pension plan; (“Régime de retraite des fonctionnaires”)

“Revised Regulation 909” means Regulation 909 of the Revised Regulations of Ontario, 1990; (“Règlement refondu 909”)

“special payment” means a special payment as defined in subsection 1 (1) of Revised Regulation 909 and includes a special payment referred to in subsection 10(3) of the Public Service Pension Act (“paiement spécial”)

“Sponsorship Agreement” means the Sponsorship Agreement referred to in subsection 4 (3), and includes any amendments to the Sponsorship Agreement. (“entente de promotion”) 1994, c. 17, s. 143, Sched.

Application of Act

3. (1) This Act applies despite any other Act, regulation, pension plan or agreement, including any sectoral framework, local agreement or non-bargaining unit plan under the Social Contract Act, 1993.

Pension Benefits Act

(2) For greater certainty, in the event of a conflict between this Act and the Pension Benefits Act, this Act prevails. 1994, c. 17, s. 143, Sched.

Establishment and Administration of OPSEU Plan

Establishment of OPSEU Plan

4. (1) A pension plan separate from the PSP Plan shall be established for members of the PSP Plan who are employees in a bargaining unit represented by OPSEU and such other persons who are named in the Sponsorship Agreement as being members of the OPSEU Plan.

Name of plan

(2) The pension plan shall be known in English as the Ontario Public Service Employees’ Union Pension Plan and in French as Régime de retraite du Syndicat des employés de la fonction publique de l’Ontario.

Sponsorship Agreement

(3) The OPSEU Plan shall be established in accordance with this Act and the Sponsorship Agreement between the Crown and OPSEU dated April 18, 1994 and tabled in the Legislative Assembly as a sessional document.

Amendment

(4) Any amendment to the Sponsorship Agreement shall comply with the Pension Benefits Act and the regulations made under that Act.

Board of Trustees

(5) The Board of Trustees of the OPSEU Plan is not a Crown agency.

Type of plan

(6) The OPSEU Plan is not a multi-employer pension plan as defined in the Pension Benefits Act. 1994, c. 17, s. 143, Sched.

Board of Trustees employees

5. Employees of the Board of Trustees of the OPSEU Plan may become members of the OPSEU Plan. 1994, c. 17, s. 143, Sched.

Transfer of assets

6. (1) Assets shall be segregated and transferred from the PSP Fund to the OPSEU Fund in accordance with the Sponsorship Agreement and shall include, to the extent possible, a proportionate share of investments in each class and category of investments held by the PSP Plan.

PSP Plan obligations

(2) Upon the transfer of assets from the PSP Fund to the OPSEU Fund, the PSP Plan is discharged of all obligations with respect to any benefits related to OPSEU Plan members and former members that are assumed by the OPSEU Plan.

Initial unfunded liability

(3) The initial unfunded liability of the PSP Plan described in sections 8 to 10 of the Public Service Pension Act shall be reduced by the portion of that initial unfunded liability assumed by the OPSEU Plan.

Liquidation of initial unfunded liability

(4) The portion of the initial unfunded liability assumed by the OPSEU Plan shall be liquidated in accordance with the Sponsorship Agreement.

Investments authorized

(5) The receipt and holding by the Board of Trustees of the OPSEU Plan 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 the regulations made under that Act, and the nature, amount and terms of the debentures may be taken into account by the administrator and trustees of the OPSEU Plan and OPSEU Fund and any committee of either of them in determining future investments of the assets of the OPSEU Plan.

Pension Benefits Act

(6) Subsections 81 (2) to (8) of the Pension Benefits Act and subsection 19 (7) of Revised Regulation 909 do not apply to the transfer from the PSP Fund to the OPSEU Fund. 1994, c. 17, s. 143, Sched.

Ontario Public Service Pension Board

7. (1) The Ontario Public Service Pension Board has by this Act the authority to comply and shall comply with the terms of the Sponsorship Agreement and shall perform the duties and may exercise the powers imposed or conferred on it by the Agreement.

Proceedings against Board

(2) The Ontario Public Service Pension Board does not contravene the Public Service Pension Act, the Pension Benefits Act or the regulations made under that Act by acting in accordance with subsection (1) and, except as permitted by the Sponsorship Agreement, no judicial or administrative proceeding shall be brought against the Ontario Public Service Pension Board by reason of the Board complying with the terms of the Sponsorship Agreement or performing the duties or exercising the powers imposed or conferred on it by the Agreement. 1994, c. 17, s. 143, Sched.

Payment of costs incurred by Crown and OPSEU

8. (1) All reasonable costs of the Crown and OPSEU incurred between March 28, 1994, and the date the Board of Trustees of the OPSEU Plan assumes all administrative and investment functions in respect of the OPSEU Plan and the OPSEU Fund, other than costs of salaries and benefits in respect of officers or employees of the Crown or OPSEU, shall be paid from the OPSEU Fund.

Payment of costs incurred by Trustees

(2) All reasonable costs incurred by the Board of Trustees of the OPSEU Plan shall be paid from the OPSEU Fund. 1994, c. 17, s. 143, Sched.

Participating employers

9. Every employer who employs a member of the OPSEU Plan shall participate in, and be bound by, the OPSEU Plan. 1994, c. 17, s. 143, Sched.

Reimbursement

10. (1) The Board of Trustees of the OPSEU Plan shall reimburse the Ontario Public Service Pension Board for all payments made by the Ontario Public Service Pension Board into a pension plan other than the OPSEU Plan, a retirement savings arrangement or life annuity that are required to be made in respect of the commuted value of pension benefits of a former member of the PSP Plan who falls within the definition of member in the OPSEU Plan and who ceases to be a member of the PSP Plan after December 31, 1992 and before the transfer of assets to the OPSEU Fund under subsection 6(1).

Same

(2) The Ontario Public Service Pension Board shall reimburse the Board of Trustees of the OPSEU Plan for payments received by the Ontario Public Service Pension Board from a pension plan other than the OPSEU Plan in respect of the commuted value of pension benefits under that plan of a member of the OPSEU Plan. 1994, c. 17, s. 143, Sched.

Registration of the OPSEU Plan and Amendments to the PSP Plan

Registration of the OPSEU Plan

11. (1) The Superintendent of Pensions, on the filing of the documents described in clauses 9 (2) (a) to (d) of the Pension Benefits Act, shall accept for registration the OPSEU Plan and shall issue a certificate of registration under section 16 of that Act.

Compliance with Pension Benefits Act

(2) The OPSEU Plan shall be deemed to comply with the Pension Benefits Act and the regulations made under that Act so long as it complies with this Act and the Sponsorship Agreement.

Wind up of the plan

(3) Nothing in this Act or the Sponsorship Agreement shall cause the OPSEU Plan to be wound up in whole or in part under the Pension Benefits Act.

Pension Benefits Act

(4) Clause 14 (7) (f) of Revised Regulation 909 does not apply to any going concern valuation of the OPSEU Plan for any period that includes all or part of the period from April 1, 1994 to March 31, 1997. 1994, c. 17, s. 143, Sched.

Registration of amendments to the PSP Plan

12. (1) The Superintendent of Pensions, on the filing of the document described in clause 12 (2) (a) of the Pension Benefits Act, shall accept for registration any amendments to the PSP Plan made by or under this Act or the Sponsorship Agreement and shall issue a notice of registration under section 17 of the Pension Benefits Act.

Compliance with Pension Benefits Act

(2) The PSP Plan shall be deemed to comply with the Public Service Pension Act and the Pension Benefits Act and the regulations made under that Act so long as it complies with this Act.

Amendment

(3) Any amendment made to the PSP Plan by or under this Act shall be deemed not to be an amendment described in section 26 of the Pension Benefits Act and the Superintendent of Pensions shall not require the administrator of the PSP Plan to transmit notice in accordance with that section.

Public Service Pension Act

(4) Subsection 6 (2) of the Public Service Pension Act does not apply to an amendment to the PSP Plan made by or under this Act.

Wind up of the plan

(5) Nothing in this Act shall cause the PSP Plan to be wound up in whole or in part under the Pension Benefits Act.

Pension Benefits Act

(6) Clause 14 (7) (f) of Revised Regulation 909 does not apply to any going concern valuation of the PSP Plan for any period that includes all or part of the period from April1, 1994 to March 31, 1997. 1994, c. 17, s. 143, Sched.

Reduction or discharge of payments

13. The Superintendent of Pensions shall not exercise any authority under the Pension Benefits Act in respect of the reduction or discharge of payments authorized by section 15 of this Act. 1994, c. 17, s. 143, Sched.

Transfers of members between plans

14. Subsection 19 (7) of Revised Regulation 909 does not apply where 50 or more persons at any one time,

(a) become members of the OPSEU Plan immediately after ceasing to be members of the PSP Plan; or

(b) become members of the PSP Plan immediately after ceasing to be members of the OPSEU Plan. 1994, c. 17, s. 143, Sched.

Winding up the Plan

Winding up

14.1 (1) No person or group of persons shall wind up the OPSEU Plan in whole or in part under subsection 68 (1) of the Pension Benefits Act or otherwise unless the person or group of persons 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 OPSEU 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 in whole or in part of the OPSEU Plan 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.

Prohibition

(4) 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 OPSEU 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 OPSEU Plan in whole or in part.

4. For damages for the breach of an agreement by virtue of the enactment of this section.

Transition

(5) A person who makes payments into the OPSEU Fund because of a wind up of the OPSEU Plan in whole or in part with an effective date before the day on which the Savings and Restructuring Act, 1996 receives Royal Assent is entitled to be reimbursed. 1996, c. 1, Sched. L, s. 2.

Special Funding

Obligation to make payments

15. (1) For the period beginning on April 1, 1994 and ending with March 31, 1997, no payment shall be made to the PSP Fund or to the OPSEU Fund with respect to any of the following disclosed by a going concern or a solvency valuation of the PSP Plan or the OPSEU Plan made at any time after December 31, 1992:

1. Any going concern unfunded liability, including the additional unfunded liability for the benefits referred to in subsection 20 (1), after taking account of the remaining initial unfunded liability.

2. Any actuarial loss.

3. Any solvency deficiency.

Payment reduction schedule

(2) Employer contributions, special payments or any other payment required to be made by an employer to the PSP Fund and the OPSEU Fund by any Act or otherwise at law shall be reduced by the following amounts for the period specified:

1. For the period beginning on April 1, 1994 and ending with March 31, 1995, by $312 million.

2. For the period beginning on April 1, 1995 and ending with March 31, 1996, by $315 million.

3. For the period beginning on April 1, 1996 and ending with March 31, 1997, by $315 million.

Portion of payment reduction

(3) That portion of the reductions in payments set out in subsection (2) attributable to the OPSEU Fund shall be calculated in accordance with paragraph 52 of the Sponsorship Agreement.

Calculation of portion of payment reduction

(4) That portion of the reductions in payments set out in subsection (2) attributable to the PSP Fund shall be the difference between the amounts for each period set out in paragraph 1, 2 or 3 of subsection (2) and the amounts that are the reductions of payments to the OPSEU Fund for the corresponding period as determined under subsection (3).

Application of payment reductions

(5) The total amount of reductions set out in subsection (2) shall be applied,

(a) first, to eliminate the special payments otherwise payable for that period;

(b) second, to reduce the employer contributions otherwise payable for that period;

(c) third, to reduce any other payment by an employer to the PSP Fund or the OPSEU Fund otherwise payable for that period.

Further payment reduction

(6) For the period beginning on April 1, 1994 and ending with March 31, 1995, an employer shall reduce employer contributions it is required to pay to the OPSEU Fund by an amount equal to 1 per cent of the aggregate salaries of those members of the OPSEU Plan employed by the employer and to the PSP Fund by an amount equal to 1 per cent of the aggregate salaries of those members of the PSP Plan employed by the employer.

Same

(7) For the period beginning on April 1, 1994 and ending with March 31, 1997, employee contributions required to be made by or on behalf of a member of the OPSEU Plan or the PSP Plan to either the OPSEU Plan or the PSP Plan shall be reduced by an amount equal to 1 per cent of the member’s salary for that period.

Liability for making payments

(8) If, before the coming into force of this section, an employer or employee who is entitled to a reduction in payments under this section pays into the OPSEU Fund or the PSP Fund the amount otherwise payable less the reduction provided by this section, the employer or employee shall be deemed not to have contravened any Act or regulation in making the payment and shall not be held liable and no proceeding shall be brought against the employer or employee for making the payment. 1994, c. 17, s. 143, Sched.

Liquidation of liability re: April 1, 1997

16. (1) Any cumulative going concern unfunded liability or actuarial loss remaining as of April 1, 1997 shall be liquidated through special payments with respect to the OPSEU Plan in accordance with the Sponsorship Agreement, and with respect to the PSP Plan, by equal monthly amounts payable from April 1, 1997 to December 31, 2011.

Definition

(2) In this section,

“cumulative going concern unfunded liability” does not include the initial unfunded liability described in sections 8 to 10 of the Public Service Pension Act or the portion of the initial unfunded liability assumed by the OPSEU Plan. 1994, c. 17, s. 143, Sched.

Actuarial valuation reports

17. (1) An actuarial report prepared by an actuary for the purpose of the OPSEU Plan shall be prepared taking into account the provisions of this Act and using assumptions appropriate for the plan and methods consistent with sound principles established by precedent and common usage within the actuarial profession and otherwise in accordance with the Pension Benefits Act.

Same

(2) An actuarial report prepared by an actuary for the purpose of the PSP Plan shall be prepared taking into account the provisions of this Act and using assumptions appropriate for the plan and methods consistent with sound principles established by precedent and common usage within the actuarial profession and otherwise in accordance with the Pension Benefits Act and the Public Service Pension Act. 1994, c. 17, s. 143, Sched.

Sponsorship Agreement

18. The Sponsorship Agreement prevails over the Pension Benefits Act and the regulations made under that Act and, except for this Act, every other Act and regulation governing the use of an actuarial gain or the liquidation of an actuarial loss. 1994, c. 17, s. 143, Sched.

Deemed discharge

19. (1) The amount by which an individual employer’s obligation to make employer contributions, special payments or any other payment required to be made by the employer to the PSP Fund and the OPSEU Fund under this Act or otherwise at law is reduced by or under subsection 15 (2), (3), (4) or (6) shall be deemed to be discharged in full and, except as provided by this section, no further charge or assessment may be made against the Crown or any employer participating in the PSP Plan or the OPSEU Plan in respect of the amount of the reduction in special payments, employer contributions or other payments.

Excess payments

(2) If the special payments, employer contributions or other payments by an employer for any period specified in subsection 15 (2) exceed the amounts required to be paid after the application of section 15, any obligation to make employer contributions, special payments or other payments after the applicable period may be reduced by the amount of the excess payments.

Order to pay Consolidated Revenue Fund

(3) Where the obligation of an employer is reduced under subsection 15 (2), (3), (4) or (6), the Lieutenant Governor in Council may by order require the employer to pay into the Consolidated Revenue Fund at such times and on such conditions as may be set out in the order, an amount not exceeding the amount of payments the employer would have made but for subsections 15 (2), (3), (4) and (6), and the amount set out in the order is a debt owing to the Crown.

Same

(4) The Lieutenant Governor in Council may by order require an employer to pay into the Consolidated Revenue Fund at such times and on such conditions as are set out in the order, an amount equal to the portion of the going concern unfunded liability disclosed in the initial valuation of the PSP Plan under section 10 of the Public Service Pension Act that was, at the time of the initial valuation, attributable to the participation of employees or former employees of the employer in the PSP Plan as continued by section 3 of the Public Service Pension Act, and the amount set out in the order is a debt owing to the Crown.

Power of employer to make payments

(5) An employer has the power to make payments for the purpose of complying with an order under this section.

Application of orders

(6) Without limiting the generality of subsection (5), an order made under this section applies to an employer who administers a fund on behalf of or in trust for others and who, but for section 15, would be obligated to make payments into the OPSEU Fund or the PSP Fund or both.

Proceedings respecting payment reduction

(7) Except for a proceeding to enforce an order made under this section, no judicial or administrative proceeding may be brought directly or indirectly based on the reduction or discharge of payments in section 15 or on an order made under this section. 1994, c. 17, s. 143, Sched.

Discharge of Factor 80 Payments

20. (1) If the PSP Plan or the OPSEU Plan provides for the payment of a pension benefit to a member who upon attaining credit in the pension plan to which he or she belongs that when added to the member’s age totals 80 years, the cost of the pension benefit shall be borne by the PSP Fund or the OPSEU Fund depending on which pension plan the member belongs to, in respect of the member, to and including March 31, 2000.

Same

(2) The provision in the PSP Plan or in the OPSEU Plan of pension benefits described in subsection (1), or any amendments to those pension plans to provide such a benefit, shall be deemed to be in accordance with the Pension Benefits Act and the regulations made under that Act and subsection 6 (1) of the Public Service Pension Act. 1994, c. 17, s. 143, Sched.

Miscellaneous

Regulations

21. (1) Subject to subsection (2), the Lieutenant Governor in Council may make regulations changing the name of the pension plan established under section 4 and may make such other regulations as the Lieutenant Governor in Council considers necessary or advisable for carrying out the intent and purposes of this Act and to give effect to this Act.

Recommendation

(2) A regulation in respect of the OPSEU Plan may be made only with the concurrence of the Crown and OPSEU. 1994, c. 17, s. 143, Sched.

Board continued

22. The Ontario Public Service Pension Board is continued under that name in English and in French shall be known as Commission du Régime de retraite des fonctionnaires de l’Ontario. 1994, c. 17, s. 143, Sched.

23. Omitted (enacts short title of this Act). 1994, c. 17, s. 143, Sched.

______________