Pension Benefits Amendment Act, 2010, S.O. 2010, c. 9 - Bill 236

EXPLANATORY NOTE

This Explanatory Note was written as a reader’s aid to Bill 236 and does not form part of the law. Bill 236 has been enacted as Chapter 9 of the Statutes of Ontario, 2010.

The Bill amends the Pension Benefits Act in connection with several matters, including: benefits for members and others who are entitled to payments out of pension plans; asset transfers between pension plans; partial wind ups of pension plans; surplus-sharing agreements; the administration of pension plans; the powers of the Superintendent; and certain terminology used in the Act. Here are some of the highlights of the amendments.

Benefits for members and others

Vesting: Currently, the Act provides for a two-year vesting period for members’ pension benefits. Amendments provide for immediate vesting of all of a member’s pension benefits. (See sections 36, 37, 63 and 64 of the Act.)

Small amounts: Currently, the Act authorizes the administrator of a pension plan to pay a lump sum, instead of a pension, to a former member if the pension would otherwise be smaller than a specified threshold. Amendments increase that threshold. (See subsections 44 (7) and 50 (1) of the Act.)

Grow-in benefits: The Act currently provides special early retirement rights (“grow-in” benefits) that are triggered upon the full or partial wind up of a pension plan if certain eligibility criteria are met. An amendment provides that the grow-in benefits will apply to eligible members whose employment is terminated by their employer otherwise than for cause. This change takes effect on July 1, 2012. An amendment allows multi-employer pension plans and jointly sponsored pension plans to elect not to provide grow-in benefits to their members. (See sections 74 and 74.1 of the Act.)

Phased retirement option: An amendment enables pension plans that provide defined benefits to provide a phased retirement option for members if certain eligibility criteria are met. This will allow members at their early retirement age to continue working while receiving a benefit from their pension plan and continuing to accrue pension benefits under the pension plan. Contributions to the pension plan must continue to be made as well. (See section 35.1 of the Act.)

Consolidation of benefits under a single pension plan: Provision is made for certain transferred employees to consolidate their pension benefits in a single pension plan in specified circumstances in connection with the past sale of a business. (See section 80.1 of the Act.)

Asset transfers between pension plans

Sale of a business: Amendments to the Act simplify the rules for the transfer of assets between pension plans on the sale of a business if the employers that sponsor the pension plans reach an agreement and if certain prescribed conditions are satisfied. The Superintendent’s consent to these transfers is required, as is currently the case. If the successor pension plan provides different benefits for transferred members than the original plan provided, the amendments will require that the commuted value of the benefits under the successor plan is at least equal to the commuted value of the benefits under the original pension plan, at the date of transfer, subject to limits in the Income Tax Act (Canada). The amendments require the value of the transferred assets to be determined in accordance with the regulations. The amendments require the transfer of a portion of surplus as prescribed. The amendments also require prescribed funding rules to be satisfied. (See section 80 of the Act.)

Pension plan mergers and splits: Amendments to the Act simplify mergers and splits of pension plans, and will require that the commuted value of the pension benefits is protected even if the specific benefits provided for transferred members of the pension plans differ after the merger or split. The Superintendent’s consent to the asset transfers between the pension plans in these circumstances is required, as is currently the case. The amendments require the value of the transferred assets to be determined in accordance with the regulations. The amendments require the transfer of a portion of surplus as prescribed. The amendments also require prescribed funding rules to be satisfied. (See section 81 of the Act.)

Past divestments: Where the sale of a business has occurred previously, amendments to the Act enable administrators of the pension plans to enter into agreements allowing plan members who are still actively employed by the successor employer to elect to consolidate their pension benefits in a single plan by transferring the related assets in accordance with the regulations. These amendments are repealed on July 1, 2015. (See section 80.1 of the Act.)

Partial wind ups of pension plans

Currently, the Act permits pension plans to be wound up in whole or in part. The authority for partial wind ups is to be repealed upon a date to be proclaimed. New transition provisions provide rules for partial wind ups with effective wind up dates before the repeal. These transition provisions are repealed at a later date, when any existing partial wind ups are completed. (See sections 69.1 and 77.1 to 77.10 of the Act.)

During the transitional period, on partial wind ups, administrators are not required to purchase annuities to provide pensions and deferred pensions for former members affected by the partial wind up. Provision is made for the distribution of surplus in connection with benefits which remain in the plan. (See subsections 73 (3) and (4), 77.7 (2) and (3) and 79 (4) of the Act.)

Surplus-sharing agreements

Currently, surplus cannot be paid out of a pension plan to an employer on the full or partial wind up of a pension plan unless the documents governing the pension plan permit the payment to the employer. The proposed amendments authorize the Superintendent to consent to the payment of surplus to the employer if the employer, the members, retired members and other beneficiaries have entered into a written surplus-sharing agreement that satisfies the prescribed requirements. (See subsections 79 (3) and (3.1) of the Act.)

Plan administration

Currently, the Act specifies that certain documents and information must be filed with the Superintendent in connection with an application to register a pension plan. Amendments provide for exceptions to these requirements. (See subsections 9 (2.1), 10 (1.1) and 12 (2.1) of the Act.) Currently, some provisions of the Act establish standards that have to be met by a pension plan before the plan is registered under the Act. The amendments specify that these standards must continue to be met while the plan is registered. (See sections 8, 11 and 14.1 and subsection 55 (1) of the Act.)

The Act currently requires advance notice of adverse plan amendments to be provided to members and others. An amendment expands this notice requirement: prior notice of all plan amendments must be given to members, retired members and others. In prescribed circumstances, an administrator may give notice of a plan amendment to members, former members and retired members after the amendment is filed. (See section 26 of the Act.)

An amendment provides authority to prescribe requirements for reciprocal transfer agreements. Currently, there is no such authority. (See subsection 21 (2) of the Act.)

Provision is made for the distribution of information by administrators to members and others in an electronic form in accordance with the Electronic Commerce Act, 2000. Exceptions may be prescribed. (See section 30.2 of the Act.)

The Superintendent’s powers

The Superintendent is authorized to approve agreements in restructuring proceedings under the Companies’ Creditors Arrangement Act (Canada) and under the Bankruptcy and Insolvency Act (Canada). (See section 81.1 of the Act.)

An amendment authorizes the Superintendent to order administrators and others to prepare specified reports in prescribed circumstances. These orders take effect immediately. Provision is made for a special appeal process for these orders. (See subsections 87 (6) to (9) and section 88 of the Act.)

Terminology changes

The Act is amended to introduce a new concept, the concept of a “retired member” of a pension plan. This affects the current use of the expression “former member” throughout the Act. (See section 1.1 of the Act, and complementary amendments throughout the Act.) Certain other terminology in the Act is modernized. For example, the term “documents” is replaced by “records”.

Français

chapter 9

An Act to amend the Pension Benefits Act

Assented to May 18, 2010

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

1. (1) The definition of “bridging benefit” in subsection 1 (1) of the Pension Benefits Act is repealed and the following substituted:

“bridging benefit” means a periodic payment provided under a pension plan to a retired member of the pension plan for a temporary period of time for the purpose of supplementing his or her pension benefit until he or she is eligible to receive benefits under the Old Age Security Act (Canada) or is either eligible for or begins to receive retirement benefits under the Canada Pension Plan or the Quebec Pension Plan; (“prestation de raccordement”)

(2) The definition of “employer” in subsection 1 (1) of the Act is repealed and the following substituted:

“employer” means, in relation to a member, former member or retired member of a pension plan, the person or persons from whom or the organization from which the member, former member or retired member receives or received remuneration to which the pension plan is related, and “employed” and “employment” have a corresponding meaning; (“employeur”, “employé”, “emploi”)

(3) The definition of “former member” in subsection 1 (1) of the Act is repealed and the following substituted:

“former member” means an individual who satisfies the criteria set out in section 1.1 to be a former member; (“ancien participant”)

(4) The definition of “partial wind up” in subsection 1 (1) of the Act is repealed.

(5) The definition of “pension benefit” in subsection 1 (1) of the Act is repealed and the following substituted:

“pension benefit” means the aggregate monthly, annual or other periodic amounts payable to a member or former member during his or her lifetime to which he or she will become entitled under the pension plan or to which, upon his or her death, any other person will become entitled; (“prestation de retraite”)

(6) Subsection 1 (1) of the Act is amended by adding the following definition:

“registered retirement savings arrangement” means a registered retirement savings plan established in accordance with the Income Tax Act (Canada) or a registered retirement income fund established in accordance with that Act; (“arrangement enregistré d’épargne-retraite”)

(7) Subsection 1 (1) of the Act is amended by adding the following definition:

“retired member” means an individual who satisfies the criteria set out in section 1.1 to be a retired member; (“participant retraité”)

2. The Act is amended by adding the following section:

Retired members and former members

Retired member

1.1 (1) For the purposes of this Act, an individual is a retired member of a pension plan if he or she has either terminated the employment that relates to the pension plan or has terminated membership in the pension plan and if one or more of the following criteria is also satisfied:

1. The individual is receiving a pension payable from the pension fund.

2. He or she is entitled to begin to receive a pension from the pension fund by virtue of having reached the normal retirement date under the pension plan, even though he or she has not yet elected to receive the pension.

3. He or she has elected, under subsection 41 (1), to receive an early retirement pension.

4. He or she has elected, under the terms of the pension plan, to begin payment of a pension payable from the pension fund, whether or not receipt of the first payment of the pension is deferred until a later date.

Former member

(2) For the purposes of this Act, an individual is a former member of a pension plan if he or she has either terminated the employment that relates to the pension plan or has terminated membership in the pension plan and if either of the following criteria is also satisfied:

1. The individual is entitled to a deferred pension payable from the pension fund.

2. He or she is entitled to receive any other payment from the pension fund.

Exception

(3) Despite subsection (2), if an individual is a retired member of a pension plan, the individual is not a former member of the pension plan.

Neither

(4) An individual who was a member of a pension plan and who has transferred an amount under subsection 42 (1) in connection with the pension plan is neither a former member nor a retired member of the pension plan.

3. (1) Section 8 of the Act is amended by adding the following subsections:

Administrator

Requirement

(0.1) A pension plan must be administered by a person or entity described in subsection (1).

Prohibition

(0.2) No person or entity other than a person or entity described in subsection (1) shall administer a pension plan.

(2) Subsection 8 (2) of the Act is repealed and the following substituted:

Additional representatives

(2) A pension committee, or a board of trustees, that is the administrator of a pension plan may include one or more representatives of retired members.

4. Section 9 of the Act is amended by adding the following subsection:

Exception

(2.1) The regulations may provide that the requirement to file a particular document listed in subsection (2) does not apply in specified circumstances or for prescribed classes of pension plans.

5. (1) Section 10 of the Act is amended by adding the following subsection:

Exception

(1.1) The regulations may provide that the requirement to include specified information described in subsection (1) in the documents that create and support a pension plan does not apply in specified circumstances or for prescribed classes of pension plans.

(2) Subsection 10 (2) of the Act is amended by striking out “shall set out” and substituting “shall also set out”.

6. Section 11 of the Act is repealed.

7. Section 12 of the Act is amended by adding the following subsection:

Exception

(2.1) The regulations may provide that the requirement to file a particular document or information described in subsection (2) does not apply in specified circumstances or for prescribed classes of pension plans.

8. (1) Clause 14 (1) (c) of the Act is repealed and the following substituted:

(c) the amount or the commuted value of an ancillary benefit for which a member, former member or retired member has met all eligibility requirements under the pension plan necessary to exercise the right to receive payment of the benefit.

(2) Section 14 of the Act is amended by adding the following subsection:

Same

(4) Subsection (1) does not apply with respect to an amendment that relates to a transfer of assets authorized by section 79.1, 80, 80.1, 80.2 or 81 and that affects the transferred members.

(3) Subsection 14 (4) of the Act, as enacted by subsection (2), is amended by striking out “80.1”.

9. The Act is amended by adding the following section:

Gradual and uniform accrual of pension benefits

14.1 (1) A pension plan must provide for the accrual of pension benefits in a gradual and uniform manner.

Variable contributions or pension benefits

(2) A pension plan must not provide that the formula for computation of the employer’s contributions under the pension plan or the pension benefit provided under the pension plan is variable at the discretion of the employer.

Variable deferred profit-sharing

(3) A deferred profit-sharing pension plan or a pension plan that provides defined contribution benefits must not provide that the formula governing allocation of contributions under the pension plan and profits among members of the plan is variable at the discretion of the employer.

Exception

(4) The Superintendent may register a pension plan that does not comply with subsection (1), (2) or (3), and the Superintendent may permit the continued registration of such a plan, if the Superintendent is of the opinion that registration is justified in the circumstances of the pension plan and the members.

10. (1) Section 21 of the Act is amended by adding the following subsection:

Requirements

(2) The reciprocal transfer agreement must satisfy such requirements as may be prescribed.

(2) Section 21 of the Act is amended by adding the following subsection:

Same

(3) The administrator shall not transfer money or credits for employment under a reciprocal transfer agreement unless it complies with subsection (2).

11. (1) Subsection 24 (1) of the Act is amended by striking out “The members and former members of a pension plan” at the beginning and substituting “The members and retired members of a pension plan”.

(2) Subsection 24 (1) of the Act is amended by adding at the end “in accordance with such conditions and subject to such restrictions as may be prescribed”.

(3) Subsections 24 (2) and (3) of the Act are repealed and the following substituted:

Same

(2) If members of the pension plan are represented by a trade union, the trade union may act on their behalf for the purpose of establishing an advisory committee.

Representation

(3) The following rules govern the composition of the advisory committee:

1. Each class of employees that is represented in the pension plan is entitled to appoint at least one representative to the advisory committee.

2. If there is only one class of employees that is represented in the pension plan, that class is entitled to appoint at least two representatives to the committee.

3. The retired members of the pension plan are entitled to appoint at least two representatives to the committee.

Same, former members

(3.1) One or more former members of the pension plan may be appointed as representatives on the advisory committee.

(4) Clause 24 (4) (c) of the Act is repealed and the following substituted:

(5) Section 24 of the Act is amended by adding the following subsections:

Duties of the administrator

(4.1) Upon receiving written notice from members, a trade union acting on their behalf, or retired members of their intent to establish an advisory committee, and if such conditions as may be prescribed are satisfied, the administrator shall do the following things to help them to establish the committee:

1. Distribute the notice and such other information as may be prescribed to the members and retired members.

2. Provide such other assistance as may be prescribed.

Same, to assist the committee

(4.2) Once the advisory committee has been established, the administrator has the following duties:

1. To meet with the committee as required by the regulations.

2. To provide such assistance to the committee as may be prescribed to help the committee carry out its purposes.

3. To give the committee or its representative such information as is under the administrator’s control and is required by the committee or the representative for the purposes of the committee.

(6) Subsection 24 (6) of the Act is amended by striking out “or” at the end of clause (a), by adding “or” at the end of clause (b) and by adding the following clause:

(7) Subsection 24 (7) of the Act is repealed and the following substituted:

Costs of the committee

(7) Such costs associated with the advisory committee as may be prescribed are payable out of the pension fund, subject to the prescribed restrictions.

12. The Act is amended by adding the following heading after section 24:

Record Keeping and Disclosure

13. The Act is amended by adding the following section:

Duty to retain records

24.1 The administrator of a pension plan shall retain the prescribed records about the pension plan and the pension fund for the prescribed period of time.

14. The heading before section 25 of the Act is repealed.

15. (1) Section 26 of the Act is repealed and the following substituted:

Pension plan amendments

Notice of proposed amendment

26. (1) Before the administrator of a pension plan applies for registration of an amendment to the pension plan, the administrator shall give a notice to the members, former members and retired members and the notice must contain the prescribed information.

Notice to trade union

(2) The administrator shall also give a notice to a trade union that represents members of the pension plan and the notice must contain the prescribed information.

Timing

(3) The notice must be given within the prescribed period.

Exception

(4) In such circumstances as may be prescribed and despite subsection (1), the administrator may give the notice required by subsection (1) to the members, former members and retired members after the amendment to the pension plan is filed.

(2) Section 26 of the Act, as re-enacted by subsection (1), is amended by adding the following subsection:

Exceptions

(5) This section does not apply with respect to an amendment that relates to a transfer of assets authorized by section 79.1, 80, 80.1, 80.2 or 81.

(3) Subsection 26 (5) of the Act, as enacted by subsection (2), is amended by striking out “80.1”.

16. Section 27 of the Act is amended by adding the following subsection:

Other statements to former members, retired members

(2) When required by the regulations, the administrator of a pension plan shall transmit to each former member and retired member a written statement containing the prescribed information about the pension plan or about his or her pension benefits and any ancillary benefits.

17. (1) Subsection 29 (1) of the Act is amended by striking out “the prescribed documents and information in respect of the pension plan and the pension fund” in the portion before clause (a) and substituting “the prescribed records about the pension plan and the pension fund”.

(2) Clauses 29 (1) (a), (b) and (c) of the Act are repealed and the following substituted:

(a) a member, former member or retired member;

(b) the spouse of a member, former member or retired member;

(3) Clause 29 (1) (c.1) of the Act is amended by striking out “of a member or former member” and substituting “of a member, former member or retired member”.

(4) Subsection 29 (2) of the Act is amended by striking out “the prescribed documents and information” in the portion before clause (a) and substituting “the prescribed records”.

(5) Subsection 29 (2) of the Act, as amended by subsection (4), is repealed and the following substituted:

Place of inspection

(2) The administrator shall make the prescribed records available,

(a) at the premises of the employer where the member is employed or where the former member or retired member was employed, as the case may be; or

(b) at a location that is agreed upon by the administrator and the person making the request.

(6) Subsections 29 (3), (4) and (5) of the Act are repealed and the following substituted:

Restriction on inspections

(3) A person described in clause (1) (a), (b), (d), (f) or (i) is entitled to make an inspection under subsection (1) not more than once in a calendar year.

Obtaining copies during inspection

(4) The administrator shall permit the person making the inspection to make extracts from, or to copy, the prescribed records and, upon request, the administrator shall give the person a copy of any of the prescribed records upon payment of the applicable fee to the administrator.

Same, by mail or electronically

(5) If the administrator receives a written request from a person described in subsection (1) and receives payment of the applicable fee, the administrator shall provide prescribed records by mail or electronically to the person in such circumstances as may be prescribed.

Restriction on copies

(6) A person described in clause (1) (a), (b), (d), (f) or (i) is entitled to make a request under subsection (5) for a particular prescribed record not more than once in a calendar year.

Restriction on fees

(7) The applicable fee referred to in subsection (4) or (5) cannot exceed such amount as may be prescribed.

18. (1) Subsection 30 (1) of the Act is amended by striking out “the following documents” in the portion before paragraph 1 and substituting “the following records”.

(2) Subsection 30 (2) of the Act is amended by striking out “any document” and substituting “any record”.

(3) Subsection 30 (2) of the Act, as amended by subsection (2), is repealed and the following substituted:

Obtaining copies during inspection

(2) Upon payment of the applicable fee, the Superintendent shall give the person making an inspection under subsection (1) a copy of any record that the person is entitled to inspect.

Same, by mail or electronically

(3) If the Superintendent receives a written request from the administrator or from a person described in subsection 29 (1) and receives payment of the applicable fee, the Superintendent shall provide prescribed records by mail or electronically to the administrator or other person in such circumstances as may be prescribed.

19. The Act is amended by adding the following section:

Authority to use electronic transmission

30.1 (1) The administrator of a pension plan may use electronic means that comply with the Electronic Commerce Act, 2000 to send notices, statements and other records to members, former members, retired members and other persons entitled to benefits under the pension plan if the administrator has the person’s permission to do so.

Exception

(2) Subsection (1) does not apply in such circumstances as may be prescribed.

20. The heading before section 35 of the Act is repealed and the following substituted:

Retirement

21. Subsection 35 (3) of the Act is repealed and the following substituted:

Right to pension

(3) If a member of a pension plan continues employment and membership in the pension plan after reaching the normal retirement date under the plan, he or she is entitled, on termination of employment, to payment of,

(a) the pension benefits to which he or she would have been entitled upon terminating employment at the normal retirement date; and

(b) any additional pension benefits accrued under the pension plan that result from his or her employment after the normal retirement date.

22. The Act is amended by adding the following section:

Phased retirement option

35.1 (1) A pension plan that provides defined benefits may provide a phased retirement option for eligible members in the circumstances described in this section, and the option provided under the pension plan must comply with this Act and the regulations.

Application by member

(2) A member whose pension benefit is a defined benefit may apply to the administrator to participate in the phased retirement option if all of the following circumstances exist:

1. The member is at least 60 years of age or is at least 55 years of age and entitled to an unreduced pension under the pension plan.

2. The member has not yet reached the normal retirement date.

3. The member and his or her employer have entered into a written agreement governing the employment arrangements relating to the phased retirement option for the member and governing payments under the phased retirement option.

4. The agreement provides for a reduction in the member’s regular hours of work when payments under the phased retirement option begin, and the reduction satisfies such requirements as may be prescribed.

5. The agreement complies with the requirements of the pension plan.

Approval

(3) The administrator shall approve an application that satisfies the requirements of this section and the regulations and shall do so within such period as may be prescribed.

Participation

(4) If the administrator approves the application, the member participates in the phased retirement option for the period specified by the agreement, and that period cannot begin before the date on which the administrator approves the agreement and it cannot end after the member’s normal retirement date.

Accruing pension benefits, etc.

(5) During that period, the member continues to accrue pension benefits under the pension plan in the prescribed manner and all contributions shall continue to be made as required under the pension plan.

Entitlement to payments

(6) During that period, the member is entitled to periodic payments under the pension plan that are equal to a portion of the pension payments to which he or she would be entitled as a retired member, and the portion is specified in the agreement and cannot exceed 60 per cent of the pension payments to which he or she would be entitled as a retired member.

Status of payments

(7) For the purposes of this Act, the periodic payments do not constitute a pension.

Restriction on other payments

(8) A member is not entitled to be paid any other amounts under the pension plan during that period.

Same

(9) Subsection (8) does not prevent the refund of additional voluntary contributions and interest thereon to the member.

Restriction on eligibility

(10) If the member ceases to be a member of the pension plan during that period, he or she ceases to participate in the phased retirement option and the period referred to in subsections (4), (5) and (6) is deemed to have ended.

Restrictions affecting the pension plan

(11) A pension plan cannot make payments under a phased retirement option if the pension plan is being wound up or while the pension plan does not satisfy prescribed funding requirements.

Information

(12) If a member asks the administrator for information concerning the phased retirement option, if any, provided under a pension plan, the administrator shall provide information to him or her within such period as may be prescribed.

23. (1) Subsections 36 (1) and (2) of the Act are repealed and the following substituted:

Deferred pension for service before 1987

(1) A member of a pension plan who terminates his or her employment with the employer on or after the day on which subsection 23 (1) of the Pension Benefits Amendment Act, 2010 comes into force and before reaching the normal retirement date under the pension plan is entitled to the benefit described in subsection (3) in connection with his or her employment, if any, before January 1, 1987.

(2) Subsection 36 (4) of the Act is amended by striking out “Subsections (1) to (3)” at the beginning and substituting “Subsections (1) and (3)”.

24. (1) Subsections 37 (1) and (2) of the Act are repealed and the following substituted:

Deferred pension for service after 1986

(1) A member of a pension plan who is a member on or after the day on which subsection 24 (1) of the Pension Benefits Amendment Act, 2010 comes into force and who terminates his or her employment with the employer before reaching the normal retirement date is entitled to the benefit described in subsection (3) in connection with his or her employment after December 31, 1986.

(2) Subsection 37 (4) of the Act is amended by striking out “Subsections (1) to (3)” at the beginning and substituting “Subsections (1) and (3)”.

25. (1) Section 38 of the Act is amended by adding the following subsection:

Election

(1.1) If the person elects to terminate his or her membership in the pension plan, the membership is terminated when the person delivers written notice of his or her election to the administrator of the pension plan or at the end of the period described in subsection (1), whichever is later.

(2) Subsection 38 (2) of the Act is repealed and the following substituted:

Effect of termination

(2) For the purpose of determining benefits under this Act, the person is deemed to have terminated his or her employment when his or her membership in the pension plan is terminated.

26. (1) Subsection 39 (1) of the Act is repealed and the following substituted:

Value of deferred pension, etc.

(1) If the commuted value of a deferred pension accrued by a former member or a pension accrued by a retired member, as the case may be, in respect of employment before January 1, 1987 is less than the value of the contributions that he or she was required, as a member, to make under the pension plan before that date, plus interest credited to the contributions, he or she is entitled to have the commuted value of the deferred pension or the pension increased so that the commuted value is equal to the value of the contributions plus interest.

(2) Subsections 39 (3) and (4) of the Act are repealed and the following substituted:

50 per cent rule

(3) Contributions made on or after January 1, 1987 by a member, and interest on the contributions, shall not be used to provide more than 50 per cent of the commuted value of a deferred pension or pension in respect of contributory benefits accrued after that date to which the member is entitled under the pension plan on termination of employment or membership.

Entitlement to excess amount

(4) A former member or retired member who is entitled to a deferred pension or a pension, as the case may be, on termination of employment or membership is entitled to a lump sum payment from the pension fund that is equal to the amount by which his or her contributions, as a member, made on or after January 1, 1987, and interest on the contributions, exceeds one-half of the commuted value of the deferred pension or pension in respect of contributory benefits accrued after that date.

(3) Section 39 of the Act is amended by adding the following subsections:

Right to transfer excess amount

(4.1) A person entitled to a lump sum payment under subsection (4) may require the administrator to pay the lump sum into a registered retirement savings arrangement by delivering a direction to the administrator within the prescribed period.

Same

(4.2) Section 50.1 applies with respect to the payment into the registered retirement savings arrangement.

27. Subsections 40 (3) and (4) of the Act are repealed and the following substituted:

Consent of employer

(3) For the purposes of subsection (2) and clause 14 (1) (c), if the consent of an employer is an eligibility requirement for entitlement to receive an ancillary benefit and a member, former member or retired member has met all other eligibility requirements, the employer is deemed to have consented.

Same, jointly sponsored pension plan

(4) For the purposes of subsection (2) and clause 14 (1) (c), if the consent of the administrator is an eligibility requirement for entitlement to receive an ancillary benefit under a jointly sponsored pension plan and a member, former member or retired member has met all other eligibility requirements, the administrator is deemed to have consented.

28. (1) Subsection 41 (1) of the Act is repealed and the following substituted:

Early retirement option

(1) A former member is entitled to elect to receive an early retirement pension under the pension plan if he or she has terminated employment and is within 10 years of reaching the normal retirement date.

(2) Subsection 41 (2) of the Act is amended by striking out “in whole or in part”.

29. (1) Subsection 42 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Transfer

(1) A former member of a pension plan is entitled to require the administrator to pay an amount equal to the commuted value of the former member’s deferred pension,

. . . . .

(2) Subsection 42 (3) of the Act is repealed and the following substituted:

Application

(3) Subsection (1) does not apply to a former member who is entitled to immediate payment of a pension under the pension plan or under section 41 unless the pension plan provides such an entitlement.

(3) Subsection 42 (4) of the Act is repealed and the following substituted:

Direction

(4) A former member may exercise his or her entitlement under subsection (1) by delivering a direction to the administrator within the prescribed period.

30. (1) Subsection 44 (1) of the Act is amended by striking out “to a former member” and substituting “to a retired member”.

(2) Subsection 44 (2) of the Act is amended by striking out “to the former member” at the end and substituting “to the retired member”.

(3) Subsection 44 (3) of the Act is repealed and the following substituted:

Amount of survivor benefit

(3) Upon the death of the retired member, the pension payable to his or her surviving spouse shall not be less than 60 per cent of the pension paid to the retired member during their joint lives.

(4) Clause 44 (4) (b) of the Act is amended by striking out “a former member” and substituting “a retired member”.

(5) Section 44 of the Act is amended by adding the following subsections:

Lump sum payment, small amounts

(7) A pension plan may provide for payment, upon the death of a retired member, of the commuted value of the joint and survivor benefit to a person who is entitled to the joint and survivor benefit if, at the date of death,

(a) the annual benefit payable is not more than 4 per cent of the Year’s Maximum Pensionable Earnings; or

(b) the commuted value of the benefit is less than 20 per cent of the Year’s Maximum Pensionable Earnings.

Right to transfer lump sum

(8) The person to whom the payment under subsection (7) is to be made may require the administrator to pay the commuted value into a registered retirement savings arrangement and the person may exercise this entitlement by delivering a direction to the administrator within the prescribed period.

Same

(9) Section 50.1 applies with respect to the payment into the registered retirement savings arrangement.

31. Subsection 46 (2) of the Act is repealed and the following substituted:

Time

(2) The waiver is not effective unless the following condition is satisfied:

1. For a written waiver in the form approved by the Superintendent, the form is dated and signed within the 12 months preceding commencement of payment of the pension benefit and is delivered to the administrator or insurance company within that 12-month period.

2. For a certified copy of a domestic contract, the certified copy is delivered to the administrator or insurance company within the 12 months preceding commencement of payment of the pension benefit.

32. Section 47 of the Act is repealed and the following substituted:

Remarriage, etc.

47. If the spouse of a deceased former member or retired member of a pension plan is receiving a pension under the pension plan, he or she is not disentitled to payment of the pension by reason only of becoming the spouse of another person after the death of the former member or retired member.

33. (1) Subsection 48 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Pre-retirement death benefit

(1) If a member who is entitled under the pension plan to a deferred pension described in section 37 dies before payment of the first instalment is due, or if a former member or retired member dies before payment of the first instalment of his or her deferred pension or pension is due, the person who is his or her spouse on the date of death is entitled,

. . . . .

(2) Clauses 48 (1) (a) and (b) of the Act are repealed and the following substituted:

(a) to receive a lump sum payment equal to the commuted value of the deferred pension;

(b) to require the administrator to pay an amount equal to the commuted value of the deferred pension into a registered retirement savings arrangement; or

(c) to receive an immediate or deferred pension, the commuted value of which is at least equal to the commuted value of the deferred pension.

(3) Subsection 48 (2) of the Act is repealed and the following substituted:

Same

(2) If a member of a pension plan continues in employment after the normal retirement date under the pension plan and dies before payment of pension benefits referred to in section 37 begins, the person who is the spouse of the member on the date of death is entitled,

(a) to receive a lump sum payment equal to the commuted value of the pension benefits;

(b) to require the administrator to pay an amount equal to the commuted value of the pension benefits into a registered retirement savings arrangement; or

(c) to receive an immediate or deferred pension, the commuted value of which is at least equal to the commuted value of the pension benefits.

(4) Subsection 48 (3) of the Act is repealed and the following substituted:

Application of subss. (1, 2)

(3) Subsections (1) and (2) do not apply where the member, former member or retired member and his or her spouse are living separate and apart on the date of death.

(5) Subsection 48 (4) of the Act is repealed and the following substituted:

Direction

(4) A spouse may exercise his or her entitlement under subsection (1) or (2) by delivering a direction to the administrator within the prescribed period and, if the spouse does not do so, the spouse is deemed to have elected to receive an immediate pension.

(6) Subsections 48 (6), (7) and (8) of the Act are repealed and the following substituted:

Designated beneficiary

(6) A member, former member or retired member described in subsection (1) may designate a beneficiary and the beneficiary is entitled to be paid an amount equal to the commuted value of the deferred pension mentioned in subsection (1) or (2),

(a) if the member, former member or retired member does not have a spouse on the date of death; or

(b) if the member, former member or retired member is living separate and apart from his or her spouse on the date of death.

Estate entitlement

(7) The personal representative of a member, former member or retired member described in subsection (1) is entitled to receive payment of the commuted value mentioned in subsection (1) or (2) as the property of the member, former member or retired member if he or she has not designated a beneficiary under subsection (6) and,

(a) does not have a spouse on the date of death; or

(b) is living separate and apart from his or her spouse on the date of death.

Dependent children

(8) If the pension plan provides for payment of pension benefits to or for a dependent child or dependent children of the member, former member or retired member upon his or her death, the commuted value of the payments may be deducted from the entitlement of a beneficiary designated under subsection (6) or of a personal representative under subsection (7).

(7) Section 48 of the Act is amended by adding the following subsections:

Additional entitlement

(8.1) A spouse who has an entitlement under subsection (1) or (2), a designated beneficiary who has an entitlement under subsection (6) or a personal representative who has an entitlement under subsection (7) is entitled to a lump sum payment from the pension fund equal to the amount of any contributions that the member or former member was required to make under the pension plan in respect of employment before January 1, 1987, plus interest credited to the contributions.

Spouse’s right to transfer additional entitlement

(8.2) A spouse entitled to a lump sum payment under subsection (8.1) may require the administrator to pay the lump sum into a registered retirement savings arrangement and may exercise this entitlement by delivering a direction to the administrator within the prescribed period.

Payments into registered retirement savings arrangements

(8.3) Section 50.1 applies with respect to any payment into a registered retirement savings arrangement.

Limitation on all payments

(8.4) The entitlements under this section are subject to the prescribed limitations in respect of the transfer of funds from pension funds.

(8) Subsection 48 (12) of the Act is amended by striking out “of a member or former member” and substituting “of a member, former member or retired member”.

34. Subsection 49 (1) of the Act is repealed and the following substituted:

Variation of payment to disabled person

(1) A pension plan may permit variation in the terms of payment of a pension benefit, deferred pension or pension by reason of the mental or physical disability of a member, former member or retired member that is likely to considerably shorten his or her life expectancy.

35. (1) Subsection 50 (1) of the Act is repealed and the following substituted:

Unlocking for small amounts

(1) A pension plan may provide for payment of the commuted value of a benefit to a former member,

(a) if the annual benefit payable at the normal retirement date is not more than 4 per cent of the Year’s Maximum Pensionable Earnings in the year that he or she terminated employment; or

(b) if the commuted value of the benefit is less than 20 per cent of the Year’s Maximum Pensionable Earnings in the year that he or she terminated employment.

(2) Subsection 50 (1) of the Act, as re-enacted by subsection (1), is amended by striking out “to a former member” in the portion before clause (a) and substituting “to a former member or retired member”.

(3) Section 50 of the Act is amended by adding the following subsections:

Right to transfer amount

(3) A person entitled to a payment described in subsection (1) or (2) may require the administrator to pay the applicable amount into a registered retirement savings arrangement and may exercise this entitlement by delivering a direction to the administrator within the prescribed period.

Same

(4) Section 50.1 applies with respect to the payment into the registered retirement savings arrangement.

36. The Act is amended by adding the following section:

Payments into registered retirement savings arrangements

Administrator’s duty

50.1 (1) When a person delivers a direction to the administrator of a pension plan in accordance with subsection 39 (4.1), 44 (8), 48 (4) or (8.2), 50 (3) or 63 (9) to pay an amount into a registered retirement savings arrangement, the administrator shall make the payment in accordance with the direction and shall do so within the prescribed period.

Lump sum payment

(2) If the amount to be paid into the registered retirement savings arrangement is greater than the amount prescribed under the Income Tax Act (Canada) for such a transfer, the administrator shall pay the portion that exceeds the prescribed amount as a lump sum to the person who gave the administrator the direction.

Discharge of administrator

(3) The administrator is discharged on making the payment in accordance with the person’s direction if the payment complies with this Act and the regulations.

37. (1) Subsection 52 (1) of the Act is amended by striking out “of a member, former member” in the portion before clause (a) and substituting “of a member, former member, retired member”.

(2) Clause 52 (1) (b) of the Act is repealed and the following substituted:

(b) determining the pension benefits, deferred pension or pension or the commuted value of pension benefits, deferred pension or pension to which the member, former member, retired member or other beneficiary may become entitled;

38. (1) Subsection 54 (2) of the Act is repealed and the following substituted:

Restriction

(2) The amount of the reduction that is required by the pension plan in relation to those payments shall not be increased by reason of an increase in those payments after the date on which the member’s employment or membership in the plan is terminated.

(2) Subsection 54 (6) of the Act is repealed and the following substituted:

Bridging benefit

(6) If a pension plan provides for the reduction of a bridging benefit because a person receives or is eligible to receive retirement benefits under the Canada Pension Plan or the Quebec Pension Plan before he or she reaches 65 years of age, the reduction may only be made in the prescribed circumstances.

39. (1) Subsection 55 (1) of the Act is amended by striking out “A pension plan is not eligible for registration unless it provides for funding” at the beginning and substituting “A pension plan must provide for funding”.

(2) The French version of subsection 55 (2) of the Act is amended by striking out “aux exigences prescrites pour le financement” in the portion before clause (a) and substituting “aux exigences de capitalisation prescrites”.

(3) The French version of subsection 55 (4) of the Act is amended by striking out “aux exigences prescrites pour le financement” and substituting “aux exigences de capitalisation prescrites”.

40. Subsection 57 (4) of the Act is amended by striking out “in whole or in part”.

41. (1) Subsection 63 (1) of the Act is amended by striking out “No member or former member” at the beginning and substituting “No member, former member or retired member”.

(2) Subsection 63 (2) of the Act is amended by striking out “to a member or former member or a payment under subsection 39 (4) (entitlement to excess amount)” at the end and substituting “to a member, former member or retired member or a payment under subsection 39 (4) (entitlement to excess amount)”.

(3) Subsections 63 (3) and (4) of the Act are repealed.

(4) Subsection 63 (6) of the Act is repealed.

(5) Subsection 63 (7) of the Act is amended by striking out “to a member or a former member” and substituting “to a member, former member or retired member”.

(6) The French version of subsection 63 (8) of the Act is amended by striking out “financer” and substituting “capitaliser”.

(7) Section 63 of the Act is amended by adding the following subsections:

Right to transfer amount

(9) A person entitled to a payment under subsection (2) or (7) may require the administrator to pay the applicable amount into a registered retirement savings arrangement and may exercise this entitlement by delivering a direction to the administrator within the prescribed period.

Same

(10) Section 50.1 applies with respect to the payment into the registered retirement savings arrangement.

42. Section 64 of the Act is repealed.

43. (1) The definition of “family law valuation date” in subsection 67.1 (1) of the Act is amended by striking out “a member or former member” in the portion before clause (a) and substituting “a member, former member or retired member”.

(2) Subsection 67.1 (2) of the Act is repealed and the following substituted:

Former spouse

(2) A reference in this section and in sections 67.2 to 67.6 to the spouse of a member, former member or retired member of a pension plan is, where circumstances require, a reference to him or her as the former spouse of the member, former member or retired member.

44. (1) Subsection 67.2 (1) of the Act is repealed and the following substituted:

Valuation for family law purposes

Preliminary valuation, member, former member or retired member

(1) The preliminary value of a member’s pension benefits, a former member’s deferred pension or a retired member’s pension under a pension plan, before apportionment for family law purposes, is determined by the administrator in accordance with the regulations and as of the family law valuation date of the member, former member or retired member and his or her spouse.

(2) Subsection 67.2 (2) of the Act is repealed and the following substituted:

Same, spouse

(2) The preliminary value of the pension of the spouse of a retired member under a pension plan, before apportionment for family law purposes, is determined by the administrator in accordance with the regulations and as of the family law valuation date of the spouse and the retired member.

(3) Paragraph 2 of subsection 67.2 (6) of the Act is amended by striking out “the member or former member” at the end and substituting “the member, former member or retired member”.

45. Subsection 67.3 (1) of the Act is amended by striking out “A spouse of a member or former member” in the portion before paragraph 1 and substituting “A spouse of a member, former member or retired member”.

46. (1) Subsection 67.4 (1) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

Division of a pension for certain family law purposes

Eligibility

(1) A spouse of a retired member of a pension plan is eligible to apply under this section for the division of the retired member’s pension if all of the following circumstances exist:

. . . . .

(2) Paragraph 2 of subsection 67.4 (1) of the Act is amended by striking out “the former member’s pension” and substituting “the retired member’s pension”.

(3) Paragraph 3 of subsection 67.4 (1) of the Act is amended by striking out “the former member’s pension” and substituting “the retired member’s pension”.

(4) Subparagraph 5 ii of subsection 67.4 (1) of the Act is amended by striking out “to the former member” at the end and substituting “to the retired member”.

(5) Subsection 67.4 (2) of the Act is amended by striking out “the former member’s pension” and substituting “the retired member’s pension”.

(6) Subsection 67.4 (4) of the Act is amended by striking out “the former member’s pension” and substituting “the retired member’s pension”.

(7) Subsection 67.4 (6) of the Act is amended by striking out “the former member’s pension” and substituting “the retired member’s pension”.

(8) Subsection 67.4 (8) of the Act is amended by striking out “the former member’s pension” and substituting “the retired member’s pension”.

(9) Subsection 67.4 (10) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

Special case, combining payments

(10) The following rules apply if the eligible spouse is entitled to a joint and survivor pension in respect of the retired member in addition to being entitled to payment of a share of the retired member’s pension in accordance with this section:

. . . . .

(10) Paragraph 1 of subsection 67.4 (10) of the Act is amended by striking out “former member’s pension” and substituting “retired member’s pension”.

(11) Paragraph 3 of subsection 67.4 (10) of the Act is repealed and the following substituted:

3. When the eligible spouse begins to receive the single pension, he or she ceases to be entitled to payment of the share of the retired member’s pension and to payment of the joint and survivor pension in respect of the retired member.

47. (1) Subsection 67.5 (1) of the Act is amended by striking out “of a member or former member” and substituting “of a member, former member or retired member”.

(2) Subsection 67.5 (2) of the Act is amended by striking out “for the member or former member” and substituting “for the member, former member or retired member”.

48. (1) Subsection 67.6 (4) of the Act is amended by striking out “by the member or former member” and substituting “by the member, former member or retired member”.

(2) Subsection 67.6 (7) of the Act is repealed and the following substituted:

Entitlement to options

(7) The spouse has the same entitlement, on termination of employment by the member, former member or retired member, to any option available in respect of the spouse’s interest in the pension benefits as the member, former member or retired member has in respect of his or her pension benefits.

49. (1) Subsection 68 (1) of the Act is amended by striking out “in whole or in part” at the end.

(2) Paragraph 1 of subsection 68 (1.1) of the Act is repealed and the following substituted:

1. If a jointly sponsored pension plan is also a multi-employer pension plan, the administrator may wind up the plan unless the documents that create and support the plan authorize another person or entity to do so. In that case, the authorized person or entity may wind up the plan.

(3) Paragraph 2 of subsection 68 (1.1) of the Act is amended by striking out “in whole or in part”.

(4) Subsection 68 (2) of the Act is repealed and the following substituted:

Notice

(2) The administrator shall give written notice of the proposal to wind up the pension plan to,

(a) the Superintendent;

(b) each member, former member and retired member of the pension plan;

(c) each trade union that represents members of the pension plan or that, on the date of the wind up, represented the members, former members or retired members of the pension plan;

(d) the advisory committee of the pension plan; and

(e) any other person entitled to a payment from the pension fund.

(5) Subsection 68 (3) of the Act is amended by striking out “to members, former members” and substituting “to members, former members, retired members”.

(6) Subsection 68 (3) of the Act, as amended by subsection (5), is repealed.

50. (1) Subsection 69 (1) of the Act is amended by striking out “in whole or in part” in the portion before clause (a).

(2) Clauses 69 (1) (d) and (e) of the Act are repealed and the following substituted:

(d) all or substantially all of the members of the pension plan cease to be employed by the employer;

(3) Clause 69 (1) (f) of the Act is repealed and the following substituted:

(f) all or substantially all of the employer’s business or all or substantially all of the assets of the business are sold, assigned or otherwise disposed of and the person or entity who acquires the business or assets does not provide a pension plan for the members of the employer’s pension plan who become employees of the person or entity;

(4) Clause 69 (1) (g) of the Act is amended by striking out “in whole or in part” at the end.

(5) Subsection 69 (2) of the Act is repealed and the following substituted:

Effective date

(2) The order must specify the effective date of the wind up.

Notice of the order

(3) The administrator of the pension plan shall give notice of the order to the persons and entities listed in clauses 68 (2) (b) to (e) and shall include in the notice such information about the wind up as the order may specify.

Duty to file notice

(4) The administrator shall file with the Superintendent a copy of the notice given under subsection (3).

51. The Act is amended by adding the following section:

Partial wind up not permitted

69.1 A pension plan cannot be wound up in part if the effective date of the wind up would fall on or after the date on which this section comes into force.

52. (1) Subsection 70 (1) of the Act is amended by striking out “in whole or in part” in the portion before clause (a).

(2) Clause 70 (1) (b) of the Act is amended by striking out “to members, former members” and substituting “to members, former members, retired members”.

(3) Subsection 70 (5) of the Act is amended by striking out “the interests of the members and former members of the pension plan” at the end and substituting “the interests of the members, former members, retired members and other persons entitled to benefits under the pension plan”.

(4) Subsection 70 (6) of the Act is amended by striking out “members, former members” and substituting “members, former members, retired members”.

(5) Subsection 70 (6) of the Act, as amended by subsection (4), is repealed.

53. Subsection 71 (1) of the Act is amended by striking out “in whole or in part”.

54. (1) Subsection 72 (1) of the Act is amended by striking out “in whole or in part”.

(2) The French version of subsection 72 (2) of the Act is amended by striking out “à la plus antérieure des dates” and substituting “à la première à survenir des dates”.

(3) Subsection 72 (2) of the Act is amended by striking out “clause 74 (1) (b)” at the end and substituting “clause 74 (1.3) (b)”.

(4) Section 72 of the Act is amended by adding the following subsection:

Same, certain pension plans

(2.1) If the notice under subsection (1) is given in respect of a pension plan for which an election under section 74.1 is in effect and if the person to whom the notice is given does not make an election within the prescribed period of time,

(a) he or she is deemed to have elected to receive immediate payment of a pension benefit, if he or she is eligible to receive the immediate payment; and

(b) in any other case, he or she is deemed to have elected to receive a pension beginning at the earliest date on which the person would be entitled to an unreduced pension under the pension plan as of the effective date of the wind up.

55. (1) Subsection 73 (1) of the Act is amended by striking out “in whole or in part” in the portion before clause (a).

(2) Clause 73 (1) (a) of the Act is amended by striking out “each member of the pension plan affected by the winding up” and substituting “each member of the pension plan”.

(3) Clause 73 (1) (c) of the Act is repealed and the following substituted:

(4) Section 73 of the Act is amended by adding the following subsections:

Purchase of annuities on partial wind up

(3) Except as provided under subsection (2), the administrator is not required to purchase life annuities for members, former members, retired members or other persons entitled to benefits under the pension plan in order to distribute the assets of the pension fund in connection with a partial wind up.

Distribution of assets

(4) If the administrator does not purchase life annuities in the circumstances described in subsection (3), the administrator shall comply with such requirements as may be prescribed in connection with the distribution of the assets of the pension fund in connection with a partial wind up.

Repeal

(5) Subsections (3) and (4) are repealed on a day to be named by proclamation of the Lieutenant Governor.

(5) Section 73 of the Act is amended by adding the following subsection:

Application

(6) This section applies if the effective date of the wind up is on or after April 1, 1987.

56. (1) Subsection 74 (1) of the Act is repealed and the following substituted:

Grow-in benefits for members

Activating events

(1) This section applies if a person ceases to be a member of a pension plan on the effective date of one of the following activating events:

1. The wind up of a pension plan, if the effective date of the wind up is on or after April 1, 1987.

2. The employer’s termination of the member’s employment, if the effective date of the termination is on or after July 1, 2012. However, this paragraph does not apply if the termination occurs in any of the circumstances described in subsection (1.1).

Same, termination of employment

(1.1) Termination of employment is not an activating event if the termination is a result of wilful misconduct, disobedience or wilful neglect of duty by the member that is not trivial and has not been condoned by the employer or if the termination occurs in such other circumstances as may be prescribed.

Exceptions, election by certain pension plans

(1.2) This section does not apply with respect to a jointly sponsored pension plan or a multi-employer pension plan while an election made under section 74.1 for the plan and its members is in effect.

Benefit

(1.3) A member in Ontario of a pension plan whose combination of age plus years of continuous employment or membership in the pension plan equals at least 55 on the effective date of the activating event has the right to receive,

(a) a pension in accordance with the terms of the pension plan, if, under the pension plan, the member is eligible for immediate payment of the pension benefit;

(b) a pension in accordance with the terms of the pension plan, beginning at the earlier of,

(i) the normal retirement date under the pension plan, or

(ii) the date on which the member would be entitled to an unreduced pension under the pension plan if the activating event had not occurred and if the member’s membership continued to that date; or

(c) a reduced pension in the amount payable under the terms of the pension plan beginning on the date on which the member would be entitled to the reduced pension under the pension plan if the activating event had not occurred and if the member’s membership continued to that date.

(2) Subsection 74 (2) of the Act is amended by striking out “at the effective date of the wind up” at the end and substituting “on the effective date of the activating event”.

(3) Subsection 74 (3) of the Act is repealed and the following substituted:

Member for 10 years

(3) Bridging benefits offered under the pension plan to which a member would be entitled if the activating event had not occurred and if his or her membership were continued shall be included in calculating the pension benefit under subsection (1.3) of a person who has at least 10 years of continuous employment with the employer or has been a member of the pension plan for at least 10 years.

(4) Subsection 74 (4) of the Act is amended by striking out “if the pension plan were not wound up” at the end and substituting “if the activating event had not occurred”.

(5) Subsection 74 (5) of the Act is amended by striking out “in whole or in part”.

(6) Subsection 74 (8) of the Act is repealed and the following substituted:

Use in calculating pension benefit

(8) A benefit described in clause (1.3) (a), (b) or (c) for which a member has met all eligibility requirements under this section shall be included in calculating the member’s pension benefit or the commuted value of the pension benefit.

(7) Subsection 74 (9) of the Act is repealed.

57. The Act is amended by adding the following section:

Election re grow-in benefits, certain pension plans

Jointly sponsored pension plans

74.1 (1) The employers (or any persons or entities who make contributions on behalf of the employers or who represent the employers) and the members (or the representatives of the members) of a jointly sponsored pension plan may elect, in accordance with this section, to exclude the plan and its members from the operation of section 74.

Multi-employer pension plans

(2) The administrator of a multi-employer pension plan may elect, in accordance with this section, to exclude the plan and its members from the operation of section 74.

Restrictions

(3) An election may only be made within the prescribed period and the persons or entities making the election must satisfy such requirements as may be prescribed in connection with the election.

Same

(4) Only one election may be made in respect of a pension plan.

Notice of election

(5) An election to exclude a pension plan and its members from the operation of section 74 takes effect when notice of the election is filed with the Superintendent or on a later date specified in the notice.

Rescission

(6) An election may be rescinded by the persons and entities described in subsection (1) or (2), as the case may be, and the rescission takes effect when notice of the rescission is filed with the Superintendent or on a later date specified in the notice.

58. Subsection 75 (1) of the Act is amended by striking out “in whole or in part” in the portion before clause (a).

59. (1) Subsection 75.1 (1) of the Act is amended by striking out “in whole or in part” in the portion before clause (a).

(2) Subsection 75.1 (2) of the Act is amended by striking out “in whole or in part” in the portion before clause (a).

60. Section 77 of the Act is amended by striking out “in whole or in part”.

61. The Act is amended by adding the following sections:

Transition – Partial Wind Up

Authority for partial wind up

77.1 (1) A pension plan may be wound up in part if the effective date of the partial wind up precedes the date on which this section comes into force.

Restriction

(2) A pension plan cannot be wound up in part if the effective date of the partial wind up would fall on or after the date on which this section comes into force.

Effective date

(3) The effective date of the partial wind up may be determined after the date on which this section comes into force.

Same

(4) The Superintendent by order may change the effective date of the partial wind up if the Superintendent is of the opinion that there are reasonable grounds for the change.

Definition

(5) In this section and in sections 77.2 to 77.9,

“partial wind up” means the termination of part of a pension plan and the distribution of the assets of the pension fund related to that part of the pension plan.

Partial wind up by employer, administrator

77.2 Section 68 applies, with necessary modifications, with respect to a partial wind up of a pension plan.

Order by Superintendent for partial wind up

77.3 (1) The Superintendent by order may require the partial wind up of a pension plan,

(a) if a significant number of members of the pension plan cease to be employed by the employer as a result of the discontinuance of all or part of the business of the employer or as a result of the reorganization of the business of the employer;

(b) if all or a significant portion of the business carried on by the employer at a specific location is discontinued;

(c) if part of the employer’s business or part of the assets of the business are sold, assigned or otherwise disposed of and the person or entity who acquires the business or assets does not provide a pension plan for the members of the employer’s pension plan who become employees of the person or entity;

(d) if the liability of the Guarantee Fund is likely to be substantially increased unless the pension plan is wound up in part;

(e) if any of the circumstances described in clauses 69 (1) (a), (b), (c) or (h) exists; or

(f) if any other prescribed event or prescribed circumstance occurs.

Date

(2) The order must specify the effective date of the partial wind up.

Notice of the order

Duty to file notice

(4) The administrator shall file with the Superintendent a copy of the notice given under subsection (3).

Wind up report for partial wind up

77.4 (1) Section 70 applies, with necessary modifications, with respect to a partial wind up of a pension plan.

Rights and benefits

(2) On a partial wind up, the members, former members, retired members and other persons entitled to benefits under the pension plan shall have rights and benefits that are not less than the rights and benefits they would have on a full wind up of the pension plan on the effective date of the partial wind up.

Appointment of administrator for partial wind up

77.5 Section 71 applies, with necessary modifications, with respect to a partial wind up of a pension plan.

Notice of entitlement upon partial wind up

77.6 (1) Within the prescribed period of time, the administrator of a pension plan that is to be wound up in part shall give to each person who is affected by the wind up and who is entitled to a pension, deferred pension or other benefit or to a refund in respect of the pension plan a statement setting out his or her entitlement under the plan, the options available to the person and such other information as may be prescribed.

Same

(2) Subsections 72 (2) and (3) apply, with necessary modifications, with respect to the partial wind up of a pension plan.

Determination of entitlements on partial wind up

77.7 (1) Section 73 applies, with necessary modifications, with respect to members’ entitlements on a partial wind up of a pension plan.

Purchase of annuities on partial wind up

(2) Except as provided under subsection 73 (2), the administrator is not required to purchase life annuities for members, former members, retired members or other persons entitled to benefits under the pension plan in order to distribute the assets of the plan in connection with the partial wind up.

Distribution of assets

(3) If the administrator does not purchase life annuities in the circumstances described in subsection (2), the administrator shall comply with such requirements as may be prescribed in connection with the distribution of the assets of the pension fund in connection with the partial wind up.

Grow-in on partial wind up

(4) Section 74 applies, with necessary modifications, with respect to members’ entitlements on a partial wind up of a pension plan.

Liability on partial wind up

77.8 Sections 75 and 75.1 apply, with necessary modifications, with respect to a partial wind up of a pension plan.

Administration of partial wind up

77.9 Sections 76 and 77 apply, with necessary modifications, with respect to a partial wind up of a pension plan.

Repeal of transitional provisions

77.10 Sections 77.1 to 77.9 are repealed on a day to be named by proclamation of the Lieutenant Governor.

62. (1) Clauses 78 (2) (a) and (b) of the Act are repealed and the following substituted:

(a) each member, former member and retired member of the pension plan to which the pension fund relates;

(b) each trade union that represents members of the pension plan;

(b.1) each trade union that represents the members, former members or retired members of the pension plan on the date of the wind up, if the pension plan is being wound up;

(2) Clause 78 (2) (d) of the Act is repealed and the following substituted:

(d) the advisory committee of the pension plan.

(3) Subsection 78 (4) of the Act is repealed and the following substituted:

Return of excess amount

(4) Subject to section 89, the Superintendent may consent to payment of the following amounts to an employer out of a pension fund:

1. An amount that does not exceed the amount of an overpayment by the employer into the pension fund.

2. An amount paid by the employer that should have been paid out of the pension fund.

Same

(5) However, the Superintendent cannot consent to a payment under subsection (4) unless application for the payment is made before the later of the following:

1. Twenty-four months after the date of the overpayment or payment.

2. Six months after the date on which the administrator, acting reasonably, becomes aware of the overpayment or payment.

63. (1) Subsection 79 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Payment of surplus

Continuing pension plan, payment to employer

(1) Subject to section 89, the Superintendent shall not consent to payment of surplus to an employer out of a continuing pension plan unless,

. . . . .

(2) Clause 79 (1) (a) of the Act is repealed and the following substituted:

(a) the Superintendent is satisfied, based on reports provided with the employer’s application for payment of the surplus, that the pension plan has a surplus;

(3) Subsection 79 (3) of the Act is repealed and the following substituted:

Wind up, payment to employer

(3) Subject to section 89, the Superintendent shall not consent to payment of surplus to an employer out of a pension plan that is being wound up in whole unless all of the criteria set out in subsection (3.2) are satisfied and,

(a) the pension plan provides for payment of surplus to the employer on the wind up of the pension plan; or

(b) a written agreement of the employer and the members, former members and other persons entitled to payments on the date of the wind up is made in accordance with such conditions as may be prescribed and authorizes payment of surplus to the employer.

Same, partial wind up

(3.1) Subject to section 89, the Superintendent shall not consent to payment of surplus to an employer out of a pension plan that is being wound up in part unless all of the criteria set out in subsection (3.2) are satisfied and,

(a) the pension plan provides for payment of surplus to the employer on the partial wind up of the pension plan; or

(b) a written agreement of the employer and the members, former members and other persons entitled to payments on the date of the partial wind up is made in accordance with such conditions as may be prescribed and authorizes payment of surplus to the employer.

Criteria for payment to employer

(3.2) The following are the criteria referred to in subsections (3) and (3.1) that must be satisfied for the payment of surplus to an employer:

1. The Superintendent is satisfied, based on reports provided with the employer’s application for payment of the surplus, that the pension plan has a surplus.

2. Provision has been made for the payment of all liabilities of the pension plan as calculated for purposes of the termination of the pension plan.

3. The applicant and the pension plan comply with all other requirements prescribed under other sections of this Act in respect of the payment of surplus.

(4) Clause 79 (3) (b) of the Act, as re-enacted by subsection (3), is amended by striking out “members, former members” and substituting “members, former members, retired members”.

(5) Subsection 79 (3) of the Act, as re-enacted by subsection (3) and amended by subsection (4), is amended by striking out “wound up in whole” in the portion before clause (a) and substituting “wound up”.

(6) Clause 79 (3.1) (b) of the Act, as enacted by subsection (3), is amended by striking out “the members, former members” and substituting “the members, former members, retired members”.

(7) Subsection 79 (3.1) of the Act, as amended by subsection (6), is repealed.

(8) Subsection 79 (3.2) of the Act, as enacted by subsection (3), is amended by striking out “subsections (3) and (3.1)” in the portion before paragraph 1 and substituting “subsection (3)”.

(9) Subsection 79 (4) of the Act is repealed and the following substituted:

Same, payment to members, etc.

(4) If the pension plan does not provide for payment of surplus to the employer on the wind up of the pension plan and if there is no agreement as described in clause (3) (b) authorizing the payment of surplus to the employer, the pension plan shall be construed to require that surplus accrued after December 31, 1986 shall be distributed proportionately on the wind up of the pension plan among members, former members and other persons entitled to payments under the pension plan on the date of the wind up.

(10) Subsection 79 (4) of the Act, as re-enacted by subsection (9), is amended by striking out “members, former members” and substituting “members, former members, retired members”.

64. The Act is amended by adding the following heading after section 79:

Asset Transfers Between Pension Plans

65. (1) The Act is amended by adding the following section:

Prohibition on asset transfers

Transfers re defined benefits

79.1 (1) No person shall transfer assets between pension plans if the transferred assets relate to the provision of defined benefits unless,

(a) the transfer is authorized under section 21, 42, 80, 80.1, 80.2 or 81; or

(b) the transfer satisfies the prescribed requirements and the Superintendent has consented in advance to the transfer.

Transfers re defined contributions

(2) No person shall transfer assets between pension plans that provide only defined contribution benefits unless the transfer satisfies the prescribed requirements and the Superintendent consents to the transfer.

(2) Clause 79.1 (1) (a) of the Act, as enacted by subsection (1), is amended by striking out “80.1”.

66. (1) The Act is amended by adding the following section:

Requirements, etc., for all asset transfers

79.2 (1) In this section,

“original pension plan” means the pension plan from which assets are transferred, and includes the pension fund for that pension plan; (“premier régime de retraite”)

“successor pension plan” means the pension plan to which assets are transferred, and includes the pension fund for that pension plan. (“régime de retraite subséquent”)

Application

(2) This section applies to every transfer of assets between pension plans that is authorized under section 79.1, 80, 80.1, 80.2 or 81.

Effective date

(3) The effective date of the transfer of assets is determined in accordance with the regulations.

Conditions re defined benefits

(4) If any of the assets to be transferred relate to the provision of defined benefits in the original pension plan, the transferred assets must be used to provide defined benefits in the successor pension plan at the effective date, in accordance with such requirements as may be prescribed.

Conditions re funding

(5) Every transfer of assets must satisfy such funding requirements as may be prescribed.

Same

(6) If either pension plan has going concern unfunded liabilities or solvency deficiencies determined as of the effective date of the transfer, the transfer of assets must satisfy such additional requirements as may be prescribed.

Duty of administrator

(7) The administrator of each pension plan shall comply with such requirements as may be prescribed with respect to the transfer of assets between the pension plans.

Transfer to prescribed retirement savings arrangement

(8) If the value of the assets to be transferred in relation to an individual’s pension benefits and other benefits under the original pension plan is greater than the amount prescribed under the Income Tax Act (Canada) for such a transfer, the administrator of the original pension plan shall pay the portion that exceeds the prescribed amount into a prescribed retirement savings arrangement on behalf of the individual.

Exception

(9) If the amount to be paid under subsection (8) into a prescribed retirement savings arrangement is greater than the amount prescribed under the Income Tax Act (Canada) for such a transfer, the administrator shall pay the portion that exceeds the prescribed amount as a lump sum to the individual.

Effect of transfer of assets

(10) When the assets are transferred in accordance with this Act and the regulations, the transferred assets become part of the assets of the pension fund for the successor pension plan and they cease to be identified as assets of the original pension plan.

Same, status of transferred members, etc.

(11) When the assets are transferred in accordance with this Act and the regulations, the employer who is the sponsor of the successor pension plan assumes responsibility for providing pension benefits and other benefits under the original pension plan to the transferred members, former members, retired members and other persons entitled to payments under that plan, and they have no further claim against the original pension plan.

Pension benefits, etc., under successor pension plan

(12) Subsection (11) does not require the successor pension plan to provide the same pension benefits and other benefits for the transferred members that were provided for them under the original pension plan.

Claims of transferred members, etc.

(13) Subsection (12) does not affect any claims of the transferred members, former members, retired members or other persons under the successor pension plan.

Discharge of administrator

(14) If the transfer of assets is made with the consent of the transferred member, former member, retired member or other person, the administrator of the original pension plan is discharged on transferring the assets in accordance with this Act and the regulations.

Order to return assets

(15) The Superintendent by order may require the administrator of the successor pension plan to return to the original pension plan, with interest calculated in the prescribed manner, assets transferred in contravention of this Act or the regulations.

Enforcement

(16) Subject to section 89, an order under subsection (15), exclusive of the reasons therefor, may be filed in the Superior Court of Justice and is thereupon enforceable as an order of that court.

(2) Subsection 79.2 (2) of the Act, as enacted by subsection (1), is amended by striking out “80.1”.

67. The heading before section 80 of the Act is repealed.

68. Section 80 of the Act is repealed and the following substituted:

Transfers upon the sale of a business

Definitions

80. (1) In this section,

“employers’ agreement” means the agreement described in subsection (6); (“accord des employeurs”)

“original employer” means the employer who sells, assigns or otherwise disposes of all or part of the employer’s business or all or part of the assets of the employer’s business; (“premier employeur”)

“original pension plan” means the original employer’s pension plan; (“premier régime de retraite”)

“sale of the business” means the sale, assignment or other disposal referred to in subsection (2) of all or part of a business or all or part of the assets of the business; (“vente de l’entreprise”)

“successor employer” means the person who acquires the business or the assets of the original employer; (“employeur subséquent”)

“successor pension plan” means the successor employer’s pension plan; (“régime de retraite subséquent”)

“transferred member” means the original employer’s employee who is a member of the original pension plan who becomes the successor employer’s employee and a member of the successor pension plan in connection with the sale of the business. (“participant transféré”)

Application

(2) This section applies if an employer who contributes under a pension plan (or on whose behalf another person or entity makes contributions under a pension plan) sells, assigns or otherwise disposes of all or part of the employer’s business or all or part of the assets of the employer’s business to another person or entity.

Transfer of employment

(3) If, in conjunction with the sale of the business, an employee of the original employer who is a member of the original pension plan becomes an employee of the successor employer and a member of the successor pension plan, his or her employment is deemed, for the purposes of this Act, not to have been terminated by the change of employer.

Transferred employees’ entitlements

(4) If the original employer’s employee who is a member of the original pension plan becomes the successor employer’s employee and a member of the successor pension plan,

(a) he or she continues to be entitled to the benefits provided under the original pension plan in respect of employment in Ontario or in a designated province to the effective date of the sale of the business without further accrual;

(b) he or she is entitled to credit in the successor pension plan for the period of his or her membership in the original pension plan, for the purpose of determining eligibility for membership in or entitlement to benefits under the successor pension plan; and

(c) he or she is entitled to credit in the original pension plan for the period of employment with the successor employer for the purpose of determining entitlement to benefits under the original pension plan.

Exception

(5) If the successor employer assumes responsibility for the accrued pension benefits of the transferred member under the original pension plan, clause (4) (a) does not apply with respect to him or her and the successor pension plan is deemed to be a continuation of the original pension plan with respect to any benefits or assets transferred.

Employers’ agreement to transfer assets, etc.

(6) The original employer and the successor employer may enter into an agreement,

(a) to transfer to the successor employer the responsibility for providing pension benefits and other benefits under the original pension plan for transferred members, former members, retired members and other persons entitled to benefits or for classes of them; and

(b) to transfer assets from the original pension plan to the successor pension plan in connection with this transfer of responsibility.

Same

(7) A person or entity required to make contributions on behalf of the original employer or the successor employer, as the case may be, under the employer’s pension plan may enter into the employers’ agreement on behalf of that employer.

Same

(8) Clause (6) (a) does not require the successor pension plan to provide the same pension benefits and other benefits for the transferred members that were provided for them under the original pension plan.

Consent of member, etc.

(9) The employers’ agreement may require the prior consent of a member, former member, retired member or other person to the transfer of assets in respect of his or her pension benefits and ancillary benefits for which any eligibility requirements have been met and, if consent is required, the consent must be obtained in accordance with such requirements as may be prescribed.

Requirement for Superintendent’s consent

(10) The Superintendent’s prior consent is required to authorize the transfer of assets from the original pension plan to the successor pension plan.

Application for consent

(11) The administrator of either pension plan or such other person as may be prescribed may apply for the Superintendent’s consent to the transfer of assets from the original pension plan to the successor pension plan.

Notice of application

(12) If the employers’ agreement to transfer assets requires the consent of transferred members, former members, retired members or other persons, the applicant shall ensure that notice of the application for the Superintendent’s consent is given in accordance with such requirements as may be prescribed.

Statutory criteria for Superintendent’s consent

(13) The Superintendent shall consent to the transfer of assets in accordance with the application and in accordance with the employers’ agreement if all of the following criteria, and such other criteria as may be prescribed, are satisfied:

1. The original employer and the successor employer must have entered into an agreement to transfer the assets, and the applicant must give the Superintendent notice of their agreement.

2. If the agreement requires the consent of the transferred members, former members and retired members of the original pension plan, their consent must have been given for the transfer, and the applicant must give the Superintendent notice of their consent.

3. The administrators of the two pension plans must have agreed upon the valuation of the assets to be transferred, and the applicant must give the Superintendent notice of their agreement.

4. If the pension benefits and other benefits to be provided under the successor pension plan for the transferred members are not the same as the pension benefits and other benefits provided for them under the original pension plan, the commuted value of the benefits provided for the transferred members under the successor pension plan must not be less than the commuted value of the benefits provided for them under the original pension plan, as adjusted for any payments made from the original pension plan to a prescribed retirement savings arrangement or directly to the transferred members in connection with the transfer of the assets.

5. The commuted value of the benefits referred to in paragraph 4 is determined as of the effective date of the transfer of the assets.

6. If the original pension plan has a surplus as of the effective date of the transfer of assets, the value of the assets to be transferred must include a portion of the surplus determined in accordance with the regulations.

Notices

(14) The notices required by subsection (13) must comply with such requirements as may be prescribed.

Waiver of conditions

(15) The Superintendent may waive one or more of the conditions referred to in subsections 79.2 (5) and (6) in the prescribed circumstances.

Transition, transfers upon the sale of a business

Interpretation

80.1 (1) In this section,

“original pension plan” means the original employer’s pension plan; (“premier régime de retraite”)

“successor employer” means the person who acquires the business or the assets of the original employer; (“employeur subséquent”)

“successor pension plan” means the successor employer’s pension plan; (“régime de retraite subséquent”)

“transfer agreement” means the agreement described in subsection (4). (“accord de transfert”)

Application

(2) This section applies if, before the day on which this section comes into force, an employer who contributes under a pension plan (or on whose behalf another person or entity makes contributions under a pension plan) sells, assigns or otherwise disposes of all or part of the employer’s business or all or part of the assets of the employer’s business to another person or entity.

Eligible employees

(3) This section applies with respect to employees of the original employer who were members of the original pension plan and who, in connection with the sale of the business, become the successor employer’s employees and members of the successor pension plan.

Transfer agreement

(4) The administrator of the original pension plan and the administrator of the successor pension plan or such other persons as may be prescribed may enter into an agreement,

(a) authorizing eligible employees to elect to transfer the value of their accrued pension benefits under the original pension plan to the successor pension plan;

(b) transferring to the successor employer the responsibility for providing pension benefits and other benefits under the original pension plan for all or any of the transferred members;

(c) authorizing the transfer of assets from the original pension plan to the successor pension plan in connection with this transfer; and

(d) establishing how the value of the assets to be transferred is determined.

Same, employers

(5) A person or entity required to make contributions on behalf of the original employer or the successor employer, as the case may be, under the employer’s pension plan may enter into the transfer agreement on behalf of that employer.

Same, eligible employees

(6) The transfer agreement cannot authorize individuals to elect to make the transfer described in clause (4) (a) if, at the time the election is to be made, they are retired members of the original pension plan or former members of both pension plans.

Same, benefits

(7) Clause (4) (b) does not require the successor pension plan to provide the same pension benefits and other benefits for the transferred members that were provided for them under the original pension plan.

Same, prescribed requirements

(8) The transfer agreement must satisfy such requirements as may be prescribed.

Duty to transfer assets

(9) The administrator of the original pension plan shall transfer assets to the successor pension plan in accordance with the transfer agreement if all of the following criteria, and such other criteria as may be prescribed, are satisfied:

1. The transfer agreement must be filed with the Superintendent before the assets are transferred.

2. The transfer agreement must establish the way in which the value of the assets to be transferred is determined.

3. Eligible employees must have been given notice of their right, under the transfer agreement, to elect to transfer the value of their accrued pension benefits and the ancillary benefits for which they have met the eligibility requirements to the successor pension plan, and the notice must satisfy such requirements as may be prescribed.

4. The eligible employees who elected to make this transfer must have made their election in accordance with the transfer agreement and in accordance with such other requirements as may be prescribed.

Repeal

(10) This section is repealed on July 1, 2015.

69. The Act is amended by adding the following section:

Transfers upon a change of trade unions, MEPPs

80.2 (1) This section applies if a group of members of a multi-employer pension plan (the “original pension plan”) are represented by a trade union and, in accordance with section 62 of the Labour Relations Act, 1995, the trade union ceases to represent the members and they become represented by a different trade union certified as their bargaining agent and become members of a different pension plan (the “successor pension plan”).

Transfer, election by members

(2) The administrator of the original pension plan shall transfer to the successor pension plan all the assets and liabilities respecting those members who have elected under section 42 to transfer their entitlement to the successor pension plan and the administrator of the successor pension plan shall accept them as assets and liabilities of the successor pension plan.

Transfer, other circumstances

(3) If the members of the original pension plan are not entitled to make an election under section 42, the administrator shall transfer to the successor pension plan all assets and liabilities of the pension plan attributable to such members determined as prescribed and the administrator of the successor pension plan shall accept them as assets and liabilities, determined as prescribed, of the successor pension plan.

Exception

(4) This section does not apply where there is a reciprocal transfer agreement respecting the pension plans.

70. (1) Subsection 81 (1) of the Act is amended by striking out “the new pension plan” and substituting “the successor pension plan”.

(2) Subsection 81 (2) of the Act is repealed and the following substituted:

Continuation of benefits

(2) The benefits under the original pension plan in respect of employment before the establishment of the successor pension plan are deemed to be benefits under the successor pension plan.

Same

(2.1) Subsection (2) does not require the successor pension plan to provide the same pension benefits and other benefits for the transferred members that were provided for them under the original pension plan.

(3) Subsection 81 (3) of the Act is amended by striking out “the new pension plan” at the end and substituting “the successor pension plan”.

(4) Subsections 81 (4), (5), (6) and (7) of the Act are repealed and the following substituted:

Requirement for Superintendent’s consent

(4) The Superintendent’s prior consent is required to authorize the transfer of assets from the original pension plan to the successor pension plan.

Application

(5) The administrator of either pension plan or such other persons as may be prescribed may apply for the Superintendent’s consent to the transfer of assets from the original pension plan to the successor pension plan.

Statutory criteria for Superintendent’s consent

(6) The Superintendent shall consent to the transfer of assets in accordance with the application if all of the following criteria, and such other criteria as may be prescribed, are satisfied:

1. The administrators of the two pension plans must have agreed upon the valuation of the assets to be transferred, and the applicant must give the Superintendent notice of their agreement.

2. If the pension benefits and other benefits to be provided under the successor pension plan for the transferred members are not the same as the pension benefits and other benefits provided for them under the original pension plan, the commuted value of the benefits provided for the transferred members under the successor pension plan must not be less than the commuted value of the benefits provided for them under the original pension plan, as adjusted for any payments made from the original pension plan to a prescribed retirement savings arrangement or directly to the transferred members in connection with the transfer of the assets.

3. The commuted value of the benefits referred to in paragraph 2 is determined as of the effective date of the transfer of the assets.

4. If the original pension plan has a surplus as of the effective date of the transfer of assets, the value of the assets to be transferred must include a portion of the surplus determined in accordance with the regulations.

Waiver of conditions

(7) The Superintendent may waive one or more of the conditions referred to in subsections 79.2 (5) and (6) in the prescribed circumstances.

(5) Subsection 81 (8) of the Act is repealed.

71. The Act is amended by adding the following section:

Insolvency and Bankruptcy

Authority to approve agreements re insolvency, etc.

Companies’ Creditors Arrangement Act (Canada)

81.1 (1) For the purposes of subsection 6 (7) of the Companies’ Creditors Arrangement Act (Canada), the Superintendent may approve an agreement by the relevant parties referred to in that subsection respecting the payment to a pension fund of certain amounts referred to in subsection 6 (6) of that Act in connection with a compromise or arrangement under that Act.

Bankruptcy and Insolvency Act (Canada)

(2) For the purposes of subsection 60 (1.6) of the Bankruptcy and Insolvency Act (Canada), the Superintendent may approve an agreement by the relevant parties referred to in that subsection respecting the payment to a pension fund of certain amounts referred to in subsection 60 (1.5) of that Act in connection with a proposal under that Act.

Prerequisites

(3) The Superintendent shall not approve an agreement under this section unless it satisfies such requirements as may be prescribed.

Decision

(4) A decision by the Superintendent under this section to approve or not to approve an agreement is final and is not subject to a hearing or an appeal.

72. (1) Clause 83 (2) (c) of the Act is amended by striking out “in whole or in part”.

(2) The French version of clause 83 (2) (d) of the Act is amended by striking out “exigences de financement” and substituting “exigences de capitalisation”.

73. (1) Paragraph 3 of subsection 84 (1) of the Act is amended,

(a) by striking out “if the member’s or former member’s employment or membership was terminated” and substituting “if his or her employment or membership was terminated”;

(b) by striking out “the combination of the member’s or former member’s age” and substituting “the combination of his or her age”.

(2) Paragraph 4 of subsection 84 (1) of the Act is amended by striking out “made by members or former members” and substituting “made by members, former members or retired members”.

(3) Paragraph 5 of subsection 84 (1) of the Act is amended by striking out “by a member or former member” and substituting “by a member, former member or retired member”.

(4) Paragraph 6 of subsection 84 (1) of the Act is repealed and the following substituted:

6. That part of a pension or deferred pension guaranteed under this subsection to which a former spouse of a member, former member or retired member is entitled under an order under the Family Law Act, a family arbitration award or a domestic contract.

(5) Paragraph 7 of subsection 84 (1) of the Act is amended by striking out “of a former member” and substituting “of a former member or retired member”.

(6) Subsection 84 (2) of the Act is amended by striking out “where a member or former member” and substituting “if a member, former member or retired member”.

(7) Section 84 of the Act is amended by adding the following subsection:

Application

(3.1) This section applies if the effective date of the wind up of the pension plan is on or after April 1, 1987.

(8) Subsection 84 (4) of the Act is repealed.

74. Subsection 86 (1) of the Act is amended by striking out “in whole or in part”.

75. Sections 87 and 88 of the Act are repealed and the following substituted:

Superintendent’s Orders

Superintendent’s orders

Order re administration in contravention of Act

87. (1) Subject to section 89, the Superintendent may make an order requiring an administrator or any other person to take or refrain from taking any action in respect of a pension plan or a pension fund if the Superintendent is of the opinion, upon reasonable and probable grounds,

(a) that the pension plan or pension fund is not being administered in accordance with this Act, the regulations or the pension plan;

(b) that the pension plan does not comply with this Act and the regulations; or

(c) that the administrator of the pension plan, the employer or the other person is contravening a requirement of this Act or the regulations.

Same

(2) An order under subsection (1) may specify one or more deadlines or periods for complying with the order.

Same

(3) An order under subsection (1) is not effective unless the reasons for the order are set out in it.

Order re preparation of report

(4) Subject to section 89, the Superintendent may make an order requiring an administrator to take an action specified in subsection (5) if the Superintendent is of the opinion,

(a) that the assumptions or methods used in the preparation of a report required under this Act or the regulations in respect of a pension plan are inappropriate for a pension plan;

(b) that the assumptions or methods used in the preparation of a report required under this Act or the regulations in respect of a pension plan are not consistent with accepted actuarial practice; or

(c) that a report submitted in respect of a pension plan does not meet the requirements and qualifications of this Act, the regulations or the pension plan.

Same

(5) An order under subsection (4) may include, but is not limited to, requiring the preparation of a new report and specifying the assumptions or methods or both to be used in the preparation of the new report.

Special order re preparation of report

(6) In such circumstances as may be prescribed, the Superintendent may make an order requiring an administrator, an employer or any other person to prepare and file a new report or another prescribed type of report in respect of a pension plan if the Superintendent is of the opinion that there are reasonable and probable grounds to believe,

(a) that there is a substantial risk to the security of the benefits payable under the pension plan to members, former members, retired members or other persons entitled to payments under the pension plan; or

(b) that there has been a significant change in the circumstances of the pension plan.

Same

(7) An order under subsection (6) may,

(a) specify the assumptions or methods or both to be used in the preparation of the report;

(b) require an employer or other person to give the administrator any information necessary to prepare the report;

(d) specify one or more deadlines or periods for complying with the order.

Same

(8) The order takes effect immediately upon its making.

Notice of special order

(9) The Superintendent shall serve a copy of the order under subsection (6), together with written reasons, upon the administrator, the employer and every other person who is required to comply with it.

Appeal or judicial review of special orders

88. (1) A person who is required to comply with an order made under subsection 87 (6) may appeal the order to the Tribunal by filing a notice of appeal with the Tribunal, and serving it on the Superintendent, within 15 days after the person receives the order.

Effect of appeal

(2) The appeal does not stay the order but the Tribunal may grant a stay until it disposes of the appeal.

Parties

(3) The parties to the appeal are the appellant, the Superintendent and such other persons as the Tribunal may specify.

Power of the Tribunal

(4) The Tribunal may, by order, confirm, vary or revoke the order or substitute another order.

Effect of judicial review

(5) An application for judicial review of an order made under subsection 87 (6) or under subsection (4), and any appeal from an order of the court on the application for judicial review, does not stay the order made under subsection 87 (6) or under subsection (4), as the case may be.

Same

(6) Despite subsection (5), a judge of the court to which the application is made or a subsequent appeal is taken may grant a stay until the matter is finally determined.

76. The heading before section 89 of the Act is repealed and the following substituted:

Notices of, and Appeals From, Proposed Decisions and Orders

77. (1) Subsection 89 (2) of the Act is repealed and the following substituted:

Notice of proposal re Superintendent’s orders

(2) If the Superintendent proposes to make or refuse to make any of the following orders, the Superintendent shall serve notice of the proposal, together with the reasons for the proposal, on the administrator of the pension plan and on any other person to whom the Superintendent proposes to direct the order:

1. An order under subsection 42 (9) or 43 (5) (repayment of money).

2. An order under subsection 80 (6) or 81 (6) (return of transferred assets).

3. An order under section 83 (application of the Guarantee Fund).

4. An order under section 87 (administration of pension plan).

5. An order under section 88 (preparation of a report).

(2) Paragraph 2 of subsection 89 (2) of the Act, as enacted by subsection (1), is repealed and the following substituted:

2. An order under subsection 79.2 (15) (return of transferred assets).

(3) Paragraphs 4 and 5 of subsection 89 (2) of the Act, as enacted by subsection (1), are repealed and the following substituted:

4. An order under subsection 87 (1) (administration of pension plan).

5. An order under subsection 87 (4) (preparation of a report).

78. Subsection 91 (1) of the Act is amended by striking out “section 89” and substituting “section 88 or 89”.

79. (1) Clause 115 (1) (m) of the Act is amended by striking out “between members” and substituting “between members, former members and retired members”.

(2) The French version of subsection 115 (6) of the Act is amended by striking out “du financement” and substituting “de la capitalisation”.

Commencement

80. (1) Subject to subsections (2), (3) and (4), this Act comes into force on the day it receives Royal Assent.

Same

(2) The following provisions come into force on a day to be named by proclamation of the Lieutenant Governor:

1. Subsections 1 (1) to (5) and (7).

2. Section 2.

3. Subsections 3 (2) and 8 (1) and (2).

4. Sections 10, 11 and 13.

5. Subsections 15 (1) and (2).

6. Section 16.

7. Subsections 17 (2), (3), (5) and (6) and 18 (3).

8. Sections 19, 20, 22, 23 and 24.

9. Subsections 26 (1), (2) and (3).

10. Sections 27 and 28.

11. Subsections 29 (1) and (2).

12. Sections 30 and 32.

13. Subsections 33 (1) to (4) and (6) to (8).

14. Sections 34 to 37 and 40.

15. Subsections 41 (1) to (5) and (7).

16. Sections 42 to 53.

17. Subsections 54 (1), (3) and (4) and 55 (1) to (4).

18. Sections 56 and 58 to 61.

19. Subsections 62 (1), 63 (4) to (8) and (10), 65 (1) and 66 (1).

20. Sections 68 to 71.

21. Subsections 72 (1) and 73 (1) to (6) and (8).

22. Sections 74 to 76.

23. Subsections 77 (2) and (3).

24. Section 78.

25. Subsection 79 (1).

Same

(3) Section 57 comes into force on July 1, 2012.

Same

(4) Subsections 8 (3), 15 (3), 65 (2) and 66 (2) come into force on July 1, 2015.

Short title

81. The short title of this Act is the Pension Benefits Amendment Act, 2010.

Français

Pension Benefits Amendment Act, 2010, S.O. 2010, c. 9 - Bill 236

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