Pension Benefits Act

R.R.O. 1990, REGULATION 909

GENERAL

Historical version for the period September 3, 2010 to September 15, 2010.

Last amendment:  O. Reg. 342/10.

This is the English version of a bilingual regulation.

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CONTENTS

PART I
INTERPRETATION

1. (1) In this Regulation,

“accountant” means a public accountant licensed under the Public Accountancy Act; (“comptable”)

“Canadian Institute of Actuaries Standards of Practice” means the Canadian Institute of Actuaries Standards of Practice (December 2008), developed and adopted by the Actuarial Standards Board and published by the Canadian Institute of Actuaries; (“Normes de pratique de l’Institut canadien des actuaires”)

“designated plan” means a pension plan that is a designated plan for the purposes of the Income Tax Act (Canada); (“régime désigné”)

“eligible contribution” means a payment made by an employer to a pension fund or an insurance company, as applicable, in respect of a pension plan, that qualifies as an eligible contribution for the purposes of the Income Tax Act (Canada); (“cotisation admissible”)

“government” means Her Majesty in right of Ontario, an agent of Her Majesty, a municipality as defined in the Municipal Affairs Act and a regional municipality as defined in the Ontario Unconditional Grants Act; (“gouvernement”)

“life income fund” means an RRIF that meets the requirements of either Schedule 1 or Schedule 1.1; (“fonds de revenu viager”)

“life income fund that is governed by this Schedule” means an RRIF that meets the requirements of Schedule 1 or Schedule 1.1, as the case may be; (“fonds de revenu viager régi par la présente annexe”)

“locked-in retirement account” means an RRSP that meets the requirements set out in subsection 21 (2); (“compte de retraite avec immobilisation des fonds”)

Note:  On January 1, 2011, the definition of “locked-in retirement account” is revoked and the following substituted:

“locked-in retirement account” means an RRSP that meets the requirements set out in Schedule 3; (“compte de retraite avec immobilisation des fonds”)

See:  O. Reg. 239/09, ss. 1 (1), 46 (2).

“locked-in retirement income fund” means an RRIF that meets the requirements set out in Schedule 2; (“fonds de revenu de retraite immobilisé”)

“maximum funding valuation” means a maximum funding valuation for the purposes of the Income Tax Act (Canada); (“évaluation du financement maximal”)

“normal cost” means the cost of pension benefits and ancillary benefits allocated to a fiscal year of a pension plan, determined on the basis of a going concern valuation; (“coût normal”)

“plan” means a pension plan; (“régime”)

“RRIF” means a registered retirement income fund established in accordance with the Income Tax Act (Canada); (“FERR”)

“RRSP” means a registered retirement savings plan established in accordance with the Income Tax Act (Canada); (“REÉR”)

“special payment” means a payment determined in accordance with section 5, 5.3, 31, 32 or 35. (“paiement spécial”)  R.R.O. 1990, Reg. 909, s. 1 (1); O. Reg. 712/92, s. 1 (1, 2); O. Reg. 558/94, s. 1; O. Reg. 73/95, s. 1; O. Reg. 144/00, s. 1 (1); O. Reg. 116/06, s. 1 (1); O. Reg. 416/07, s. 1; O. Reg. 116/09, s. 1.

(2) In this Part,

“actuarial cost certificate” means an actuarial cost certificate that satisfies the requirements of section 7.1; (“certificat actuariel”)

“actuarial gain” means the sum, if positive, of,

(a) the gain to the pension plan during the period since the valuation date of the immediately preceding going concern valuation resulting from the difference between actual experience and the experience expected by the actuarial assumptions on which that valuation was based,

(b) the amount by which the going concern liabilities decrease as a result of an amendment to the plan, and

(c) the amount by which the going concern liabilities decrease or the going concern assets increase as a result of a change in actuarial methods or assumptions upon which the current going concern valuation is based,

as of the valuation date for a going concern valuation provided that clause (a), (b) or (c) or any combination thereof shall be counted as a negative in the calculation of the sum where,

(d) the experience of the plan results in a loss rather than a gain,

(e) an amendment increases the going concern liabilities, or

(f) a change in actuarial methods or assumptions results in an increase in going concern liabilities or a decrease in going concern assets, as the case may be; (“gain actuariel”)

“actuarial loss” means the sum, if negative, of,

(a) the gain to the pension plan during the period since the valuation date of the immediately preceding going concern valuation resulting from the difference between actual experience and the experience expected by the actuarial assumptions on which that valuation was based,

(b) the amount by which the going concern liabilities decrease as a result of an amendment to the plan, and

(c) the amount by which the going concern liabilities decrease or the going concern assets increase as a result of a change in actuarial methods or assumptions upon which the current going concern valuation is based,

as of the valuation date for a going concern valuation provided that any of clause (a), (b) or (c) or any combination thereof shall be counted as a negative in the calculation of the sum where,

(d) the experience of the plan results in a loss rather than a gain,

(e) an amendment increases the going concern liabilities, or

(f) a change in actuarial methods or assumptions results in an increase in going concern liabilities or a decrease in going concern assets, as the case may be; (“perte actuarielle”)

“actuary” means a Fellow of the Canadian Institute of Actuaries; (“actuaire”)

“ancillary benefits” means the benefits referred to in subsection 40 (1) of the Act; (“prestation accessoire”)

“basic Ontario liabilities”, in relation to a plan, means the portion of the liabilities of the plan allocated under clause 30 (2) (d) to employment in Ontario; (“passif de base ontarien”)

“consent benefit” means an ancillary benefit, other than a plant closure benefit or a permanent layoff benefit, the eligibility requirements for which include the consent of an employer or, in the case of a jointly sponsored pension plan, the consent of the employer or the administrator; (“prestation assujettie à un consentement”)

“early retirement window benefit value” means the amount by which,

(a) the portion of the solvency liabilities of a plan that relates to all the pension and ancillary benefits to which a member is entitled if the member elects early retirement under a temporary program offered for a maximum period of twelve months,

exceeds,

(b) the portion of the solvency liabilities of a plan that relates to all the pension and ancillary benefits to which the member would be entitled in the absence of the temporary program; (“valeur des prestations pendant la période d’admissibilité à la retraite anticipée”)

“escalated adjustment” means an adjustment that is made to a pension or a deferred pension of a former member of a pension plan where,

(a) the adjustment is not capable of being determined with certainty at the time the plan or a relevant amendment to the plan is submitted for registration because the adjustment is related to the investment earnings of the pension fund or to future changes in a general wage or price index, or

(b) the adjustment is an increase in the pension or deferred pension at a fixed annual percentage rate specified in the plan; (“rajustement indexé”)

“excluded permanent layoff benefit” means a permanent layoff benefit provided under a pension plan in respect of which an election under subsection 5 (18) is in effect; (“prestation de mise à pied permanente exclue”)

“excluded plant closure benefit” means a plant closure benefit provided under a pension plan in respect of which an election under subsection 5 (18) is in effect; (“prestation de fermeture d’entreprise exclue”)

“funded consent benefit” means a consent benefit for which a member has met all eligibility requirements except the consent of an employer or, in the case of a jointly sponsored pension plan, the consent of the employer or the administrator; (“prestation financée assujettie à un consentement”)

“funded special allowance” means a special allowance for which a member has met all age and service eligibility requirements; (“allocation spéciale financée”)

“going concern assets” means, in respect of a report under this Regulation relating to a pension plan, the sum of,

(a) the value of the assets of the pension plan, including accrued and receivable income, determined on the basis of a going concern valuation, and

(b) the present value of any special payments in respect of a going concern unfunded liability disclosed in previously filed reports; (“actif à long terme”)

“going concern liabilities” means the present value of the accrued benefits of a pension plan determined on the basis of a going concern valuation; (“passif à long terme”)

“going concern unfunded liability” means the amount, if any, by which the sum of the going concern liabilities and the prior year credit balance exceeds the going concern assets; (“passif à long terme non capitalisé”)

“going concern valuation” means a valuation of the assets and liabilities of a pension plan using methods and actuarial assumptions that are consistent with accepted actuarial practice for the valuation of a continuing pension plan;  (“évaluation à long terme”)

“initial solvency balance” means,

(a) for a plan in respect of which an employer does not elect not to redetermine under subsection 5 (8), the difference, positive or negative, obtained by subtracting,

(i) the aggregate special payments, with respect to any solvency deficiency that arose before the Regulation date, that the employer would have been required to pay to the pension fund before the initial valuation date if the solvency deficiency and related special payments were calculated in accordance with clause 5 (1) (c), but where the employer has elected under subsection 5 (18) to exclude liability for plant closure benefits or for permanent layoff benefits, this calculation shall exclude any special payments with respect to liability for plant closure benefits or permanent layoff benefits,

from,

(ii) the aggregate special payments, with respect to any solvency deficiency that arose before the Regulation date, paid by an employer to the pension fund before the initial valuation date,

(b) for a plan in respect of which an employer elects not to redetermine under subsection 5 (8), the amount by which,

(i) the aggregate special payments, with respect to any solvency deficiency that arose before the Regulation date, paid by an employer to the pension fund before the beginning of the period referred to in clause 5 (11) (b),

exceeds,

(ii) the aggregate special payments, with respect to any solvency deficiency that arose before the Regulation date, that the employer would have been required to pay to the pension fund before the beginning of the period referred to in clause 5 (11) (b), if the special payments were calculated in accordance with clause 5 (1) (d); (“solde de solvabilité initial”)

“initial valuation date” means the valuation date of the first report filed or submitted under section 3, 4, 13 or 14 with a valuation date after the Regulation date; (“date d’évaluation initiale”)

“Ontario assets” means the portion of the market value of the plan assets allocated for employment in Ontario under clause 30 (2) (e); (“actif ontarien”)

“Ontario plan beneficiary” means,

(a) a member employed in Ontario,

(b) a former member who was employed in Ontario immediately before he or she ceased to be a member, other than a former member for whom all pension and ancillary benefits are secured under a guaranteed annuity contract or a contract issued under the Government Annuities Act (Canada), and

(c) the surviving spouse of, or a beneficiary of, a former member who was an Ontario plan beneficiary under clause (b), if the surviving spouse or the beneficiary is receiving a pension from the plan as a result of the death of the former member; (“bénéficiaire ontarien du régime”)

“Ontario wind up liability” of a plan means the sum of the liabilities of the plan on wind up in respect of each member or former member of the plan with benefits in respect of employment in Ontario, calculated in accordance with subsection 29 (10); (“passif ontarien de liquidation”)

“past service unfunded actuarial liability” means the amount of going concern unfunded actuarial liability that results from the provision of benefits with respect to employment prior to the effective date of the pension plan or from an amendment to a plan that provides benefits for employment prior to the date of the amendment where the employment had not previously been recognized for purposes of the provision of pension benefits; (“passif actuariel pour services antérieurs non capitalisé”)

“PBGF assessment base” means, as of a given valuation date, the amount by which,

(a) the PBGF liabilities,

exceed,

(b) the solvency assets multiplied by the PBGF liabilities and divided by the solvency liabilities; (“base de cotisation au Fonds de garantie”)

“PBGF liabilities” means the portion of the solvency liabilities of a plan that relates to the Ontario plan beneficiaries, determined in accordance with section 37; (“passif du Fonds de garantie”)

“pensionable earnings” means the earnings on which contributions are based by virtue of the documents that create and support the pension plan; (“gains ouvrant droit à pension”)

“permanent layoff benefit” means a pension benefit or ancillary benefit for which the eligibility requirements include permanent layoff, whether or not the benefit requires the consent of the employer or, in the case of a jointly sponsored pension plan, the consent of the employer or the administrator; (“prestation de mise à pied permanente”)

“plant closure benefit” means a pension benefit or ancillary benefit payable only if all or a significant portion of the business carried on by the employer at a specific location is discontinued, whether or not the pension plan is wound up in whole or in part; (“prestation de fermeture d’entreprise”)

“potential early retirement window benefit value” means the early retirement window benefit value for a member who is eligible to elect, but has not yet elected, to receive the benefit; (“valeur potentielle des prestations pendant la période d’admissibilité à la retraite anticipée”)

“prior year credit balance” means the amount determined in accordance with subsections 5 (13) to (16) or subsection 5.1 (5); (“solde créditeur de l’exercice antérieur”)

“prospective benefit increase” means an increase to a pension benefit or ancillary benefit set out in the pension plan or agreed to by the parties to a collective agreement, but not yet in effect; (“augmentation future des prestations”)

“qualifying annuity contract” means an annuity contract for the purpose of providing benefits under a plan, with the following characteristics:

1. The contract does not contain a provision allowing for the redistribution of benefits on a wind up or partial wind up of the pension plan.

2. The contract was entered into before the 1st day of January, 1988.

3. The contract was issued by an insurance company or under the Government Annuities Act (Canada).

4. The benefits provided under the contract consist only of pensions and pension benefits purchased before the 1st day of January, 1993; (“contrat de rente admissible”)

“qualifying plan” means qualifying plan under section 5.1; (“régime admissible”)

“Regulation date” means November 26, 1992; (“date du Règlement”)

“remaining liabilities” means the value of benefits determined as required under clause 30 (2) (b); (“passif restant”)

“significant shareholder” means an individual who alone or in combination with a parent, spouse or child, owns or has a beneficial interest, directly or indirectly, in shares that represent 10 per cent or more of the voting rights attached to the shares of the employer who contributes to the pension plan; (“actionnaire important”)

“solvency asset adjustment” means the amount calculated under section 1.2; (“rajustement de l’actif de solvabilité”)

“solvency assets” means the market value of investments held by a plan plus any cash balances of the plan and accrued or receivable income items of the plan, excluding the value of any qualifying annuity contract of the plan; (“actif de solvabilité”)

“solvency deficiency”, in relation to a report, means the amount by which the sum of the solvency liabilities, the solvency liability adjustment and the prior year credit balance exceeds the sum of the solvency assets and the solvency asset adjustment, all determined as of the valuation date of the report; (“déficit de solvabilité”)

“solvency liabilities”, in relation to a report, means the liabilities of a plan determined as if the plan had been wound up on the valuation date of the report, including liabilities for plant closure benefits or permanent layoff benefits that would be immediately payable if the employer’s business were discontinued on the valuation date of the report, but excluding liabilities set out under clause 14 (8) (c) in the report for,

(a) any escalated adjustment,

(b) excluded plant closure benefits,

(c) excluded permanent layoff benefits,

(d) special allowances other than funded special allowances,

(e) consent benefits other than funded consent benefits,

(f) prospective benefit increases,

(g) potential early retirement window benefit values, and

(h) pension benefits and ancillary benefits payable under a qualifying annuity contract; (“passif de solvabilité”)

“solvency liability adjustment” means the amount specified by section 1.3; (“rajustement du passif de solvabilité”)

“special allowance” means a bridging benefit that is adjusted according to the income of the former member resulting from employment of the former member subsequent to termination; (“allocation spéciale”)

“transfer deficiency” means the amount by which the commuted value of a benefit determined in accordance with subsection 19 (1) exceeds the transfer value of that benefit determined in accordance with subsection 19 (2); (“déficit de transfert”)

“transfer ratio”, in relation to a report, means the ratio of,

(a) the amount by which the solvency assets exceed the lesser of,

(i) the prior year credit balance, and

(ii) the sum of,

(A) the amount by which the sum of estimates of normal cost given under clauses 14 (7) (a) and (b) in the report exceeds the sum of the estimates given under clause 14 (7) (c) in the report for the periods in respect of which the estimates under clauses 14 (7) (a) and (b) are given, and

(B) the sum of the special payments required to be made under this Regulation during the periods in respect of which the estimates under clauses 14 (7) (a) and (b) are given,

to,

(b) the sum of,

(i) the solvency liabilities, and

(ii) the liabilities for benefits, other than pension benefits and ancillary benefits payable under qualifying annuity contracts, that were excluded in calculating the solvency liabilities; (“ratio de transfert”)

“valuation date” means the date as of which the assets and liabilities are valued for the purposes of the going concern and solvency valuations in a report under section 3, 4, 5.3, 13 or 14; (“date d’évaluation”)

“wind up funded ratio” means the ratio of the Ontario assets to the Ontario wind up liability. (“ratio de financement à la liquidation”)  R.R.O. 1990, Reg. 909, s. 1 (2); O. Reg. 712/92, s. 1 (3-22); O. Reg. 409/94, s. 1; O. Reg. 115/00, s. 1; O. Reg. 144/00, s. 1 (2, 3); O. Reg. 324/05, s. 1; O. Reg. 116/06, s. 1; O. Reg. 570/06, s. 1; O. Reg. 413/07, s. 1; O. Reg. 239/09, s. 1 (2).

(3) If the solvency liabilities in respect of a member include liabilities for a funded special allowance, the liabilities for the funded special allowance shall be calculated on the assumption that the member receives no income from employment.  O. Reg. 712/92, s. 1 (23).

(4) In calculating solvency assets or a transfer ratio, where there is no market value for an investment of a pension plan and the investment is issued or guaranteed by a government, the book value of the investment may be used instead of market value.  R.R.O. 1990, Reg. 909, s. 1 (4).

(5) For the purposes of this Regulation, a going concern unfunded liability, a past service unfunded liability, a solvency deficiency, a solvency liability, a transfer deficiency and a transfer ratio each arises on the valuation date of the report in which it is determined.  O. Reg. 712/92, s. 1 (24).

1.1 (1) For the purposes of this Regulation, a report submitted to the Superintendent under the Stelco Pension Plans Regulation is deemed to be a report prepared and filed under section 14 of this Regulation.  O. Reg. 100/06, s. 1.

(2) For the purposes of this Regulation, a contribution or special payment required under section 7 of the Stelco Pension Plans Regulation is deemed to be a contribution required under section 12 of this Regulation or special payment required under section 5 of this Regulation, as the case may be.  O. Reg. 100/06, s. 1.

(3) For the purposes of this Regulation, a special payment required under section 8 of the Stelco Pension Plans Regulation is deemed to be a special payment required under section 5 of this Regulation.  O. Reg. 100/06, s. 1.

(4) In this section,

“Stelco Pension Plans Regulation” means Ontario Regulation 99/06 (Stelco Inc. Pension Plans) made under the Act.  O. Reg. 100/06, s. 1.

1.2 (1) For the purposes of this Part, the solvency asset adjustment in relation to a report in respect of a pension plan for which a benefit allocation method is used to set contribution rates is the sum of,

(a) the amount, which may be positive or negative, by which the value of the solvency assets are adjusted as a result of applying an averaging method that stabilizes short-term fluctuations in the market value of the plan assets, calculated over a period of not more than five years;

(b) the present value of any special payments referred to in clause 5 (1) (a);

(c) the present value of any special payments required to liquidate any past service unfunded liability; and

(d) the present value of all special payments referred to in clause 5 (1) (b), (c), (d) or (e), other than special payments required to liquidate any past service unfunded liability or any solvency deficiency determined in the report, that are scheduled for payment within,

(i) the period of five years that begins on the valuation date of the report, in the case of a pension plan other than a jointly sponsored pension plan, or

(ii) a period that begins on the valuation date of the report and continues until the end of a five-year period that begins on a date not later than 12 months after the valuation date, in the case of a jointly sponsored pension plan.  O. Reg. 116/06, s. 2.

(2) Despite subsection (1), the solvency asset adjustment in relation to a report in respect of a pension plan that provides defined benefits and for which a benefit allocation method is not used to set contribution rates is the sum of “A” and “B” where,

  “A” is the amount, which may be positive or negative, by which the value of the solvency assets are adjusted as a result of applying an averaging method that stabilizes short-term fluctuations in the market value of the plan assets, calculated over a period of not more than five years, and

  “B” is the greater of zero and the amount calculated using the formula,

C + D – E

in which,

“C” is the present value of the required contributions, which are determined using the actuarial cost method adopted by the plan, for the five-year period that begins on the valuation date of the report, or in the case of a jointly sponsored pension plan, for a period that begins on the valuation date of the report and continues until the end of a five-year period that begins on a date not later than 12 months after the valuation date,

“D” is the present value of any special payments referred to in clause 5 (1) (e) that are scheduled for payment within the applicable period described in the definition of “C”, other than any special payments required to liquidate any solvency deficiency determined in the report, and

“E” is the present value of the normal cost, which is determined using a benefit allocation method, for the applicable period described in the definition of “C”.

O. Reg. 116/06, s. 2.

(3) For the purposes of subsections (1) and (2), the present value of special payments, required contributions and the normal cost must be calculated as of the valuation date of the report and must be calculated using,

(a) the interest rates used in the report to calculate the solvency liabilities, if the solvency liability adjustment is zero; or

(b) the average interest rates used in the report to calculate the solvency liability adjustment, if the solvency liability adjustment is not zero.  O. Reg. 116/06, s. 2.

(4) In the case of a jointly sponsored pension plan, the present values determined for the purposes of the definitions of “C”, “D” and “E” in subsection (2) shall be calculated based on the sum of the projected pensionable earnings for the applicable period described in the definition of “C” in subsection (2).  O. Reg. 116/06, s. 2.

1.3 (1) For the purposes of this Part, the solvency liability adjustment in relation to a report is zero unless either of the circumstances described in subsection (2) exist.  O. Reg. 413/07, s. 2.

(2) The solvency liability adjustment in relation to a report is the amount calculated under subsection (3) if either of the following circumstances exist:

1. The solvency valuation includes a determination of a solvency asset adjustment, and that solvency asset adjustment includes an amount described in clause 1.2 (1) (a).

2. The solvency valuation includes a determination of a solvency asset adjustment, and that solvency asset adjustment includes an amount defined as “A” in subsection 1.2 (2).  O. Reg. 413/07, s. 2.

(3) In the circumstances described in subsection (2), the solvency liability adjustment is the amount, positive or negative, by which the value of the solvency liabilities is adjusted as a result of using a solvency valuation interest rate that is the average of market interest rates calculated over the same period of time as the one used in the determination of the amount referred to in paragraph 1 or 2 of subsection (2), whichever applies.  O. Reg. 413/07, s. 2.

Note:  On October 1, 2010, the Regulation is amended by adding the following section:

Designated Jurisdictions

1.4 (1) For the purposes of the definition of “designated jurisdiction” in subsection 1 (1) of the Act, each of the following jurisdictions in Canada is prescribed as a jurisdiction in which there is in force legislation substantially similar to the Act:

1. Canada.

2. The provinces of Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Quebec and Saskatchewan.  O. Reg. 342/10, s. 1.

(2) The status of Canada as a designated jurisdiction applies in respect of “included employment” as defined in subsection 2 (1) of the Pension Benefits Standards Act, 1985 (Canada) but not in respect of any other employment in Canada.  O. Reg. 342/10, s. 1.

See:  O. Reg. 342/10, ss. 1, 5.

Registration and Amendments

2. An application under subsection 9 (1) of the Act for registration of a pension plan must be made within 90 days after the pension plan is established.  O. Reg. 144/00, s. 2.

3. (1) Where an amendment to a pension plan reduces or increases contributions or creates or changes a going concern unfunded liability or solvency deficiency, the administrator shall file a report containing any of the information required in a report under section 14 that might be affected by the amendment.  O. Reg. 712/92, s. 2.

(1.1) Subsection (1) does not apply with respect to a pension plan where all the pension benefits provided under the plan are defined contribution benefits.  O. Reg. 144/00, s. 3.

(2) The administrator shall file the report required under subsection (1) within six months following the date the amendment is required to be submitted for registration.  R.R.O. 1990, Reg. 909, s. 3 (2).

(3) An administrator who is required by the Superintendent to give notice of a proposed amendment under subsection 26 (1) of the Act shall certify in writing to the Superintendent, within thirty days after the date on which the last of the notices was transmitted, details as to the classes of persons who received notice, the date the last notice was distributed and that notice was provided as required.  R.R.O. 1990, Reg. 909, s. 3 (3).

(4) The administrator shall file the explanation required to be provided under subsection 26 (3) of the Act within six months after registration of the amendment.  R.R.O. 1990, Reg. 909, s. 3 (4).

Jointly Sponsored Pension Plans

3.1 (1) For the purposes of paragraph 4 of subsection 1 (2) of the Act, a pension plan must, by virtue of the documents that create and support the plan, satisfy the following additional criteria in order to be a jointly sponsored pension plan:

1. The total amount of contributions payable by members of the pension plan in respect of a year, excluding any additional voluntary contributions and voluntary contributions for past service as described in subsection 39 (5) of the Act, cannot exceed the total amount of contributions payable to the pension plan in respect of the year by the employer or by the person or entity required to make contributions on behalf of the employer, as the case may be.

2. The pension plan does not permit a reduction in the amount of or the commuted value of a pension benefit, a pension, a deferred pension or an ancillary benefit in the circumstances described in subsection 14 (2) or (3) of the Act, except in the circumstances of a wind up.

3. The employers or any persons or entities who make contributions on behalf of the employers or represent the employers and the members of the pension plan or any representatives of the members are jointly responsible for making all decisions about the terms and conditions of the pension plan and any amendments to the pension plan.

4. The employers or any persons or entities who make contributions on behalf of the employers or represent the employers and the members of the pension plan or any representatives of the members are jointly responsible for making all decisions regarding,

i. the appointment of the administrator of the plan, or

ii. the appointment or selection of persons as members of any body or entity referred to in clause 8 (1) (b), (c), (e), (f) or (h) of the Act that is the administrator of the plan.

5. The level of a member’s pension benefits, other than ancillary benefits, and the amount of a member’s contributions are directly related to the member’s pensionable earnings.  O. Reg. 116/06, s. 3.

(2) The documents that create and support a jointly sponsored pension plan must set out the methods by which the decisions referred to in paragraphs 3 and 4 of subsection (1) are to be made.  O. Reg. 116/06, s. 3.

3.2 Each of the following pension plans is prescribed as a jointly sponsored pension plan for the purposes of the Act:

1. OMERS Primary Pension Plan, registered under the Act as number 345983.

2. OMERS Supplemental Pension Plan for Police, Firefighters and Paramedics, registered under the Act as number 1175892.  O. Reg. 413/07, s. 3.

Funding of Pension Plans
Payments — General

4. (1) Every pension plan shall set out the obligation of the employer or any person or entity required to make contributions on behalf of the employer and, in the case of a jointly sponsored pension plan, the obligation of the members of the pension plan, if applicable, to contribute both in respect of the normal cost and any going concern unfunded liability and solvency deficiency under the plan.  O. Reg. 116/06, s. 4 (1).

(2) Subject to subsection (2.1), an employer who is required to make contributions under a pension plan or, if a person or entity is required to make contributions under the pension plan on behalf of the employer, that person or entity and, if applicable, the members of the pension plan or their representative shall make payments to the pension fund or to an insurance company, as applicable, that are not less than the sum of,

(a) all contributions, including contributions in respect of any going concern unfunded liability and solvency deficiency and money withheld by payroll deduction or otherwise from an employee, that are received from employees as the employees’ contributions to the pension plan;

(b) all contributions required to pay the normal cost;

(c) all special payments determined in accordance with section 5;

(c.1) all special payments determined in accordance with section 5.6; and

(d) all special payments determined in accordance with sections 31, 32 and 35 and all payments determined in accordance with section 31.1.  O. Reg. 712/92, s. 3 (2); O. Reg. 73/95, s. 2 (1); O. Reg. 116/06, s. 4 (2-4); O. Reg. 239/09, s. 2.

(2.1) Despite subsection (2), an employer required to make contributions under a designated plan shall not be required to make a payment to the pension fund or to an insurance company, as applicable, that is not an eligible contribution.  O. Reg. 73/95, s. 2 (2).

(2.2) Despite subsections (1) and (2), the amount of contributions required to be made to a pension plan that provides defined benefits may be determined by using an actuarial cost method other than a benefit allocation method if,

(a) the actuarial cost method that is used is consistent with accepted actuarial practice; and

(b) the rules set out in subsection (2.3) are satisfied.  O. Reg. 116/06, s. 4 (5).

(2.3) For the purposes of clause (2.2) (b), the rules are as follows:

1. If the valuation date of a report filed under section 3, 13 or 14 is before December 31, 2006 and, at the valuation date, the amount determined under clause (a) of the definition of “going concern assets” in subsection 1 (2) is not less than the going concern liabilities determined using a benefit allocation method, the present value of the required contributions for the three-year period referred to in paragraph 1.1 must not be less than the present value of the contributions for that period that would be made in respect of the normal cost for the plan if the benefit allocation method were used, after the application of any actuarial gains to reduce the normal cost in accordance with subsection 7 (3).

1.1 The three-year period referred to in paragraph 1 must begin,

i. in the case of a pension plan that is not a jointly sponsored pension plan, on the valuation date, or

ii. in the case of a jointly sponsored pension plan, on a date not later than 12 months after the valuation date or, in the case of an inter-valuation report described in section 5.5, not later than January 1, 2007.

1.2. If the valuation date of a report filed under section 3, 13 or 14 is on or after December 31, 2006 and, at the valuation date, the amount determined under clause (a) of the definition of “going concern assets” in subsection 1 (2) is not less than the going concern liabilities determined using a benefit allocation method, the present value of the required contributions for the five-year period referred to in paragraph 1.3 must not be less than the present value of the contributions for that period that would be made in respect of the normal cost for the plan if the benefit allocation method were used, after the application of any actuarial gains to reduce the normal cost in accordance with subsection 7 (3).

1.3 The five-year period referred to in paragraph 1.2 must begin,

i. in the case of a pension plan that is not a jointly sponsored pension plan, on the valuation date, or

ii. in the case of a jointly sponsored pension plan, on a date not later than 12 months after the valuation date.

2. If, at the valuation date of a report filed under section 3, 13 or 14, the amount determined under clause (a) of the definition of “going concern assets” in subsection 1 (2) is less than the going concern liabilities determined using a benefit allocation method, the present value of the required contributions, which are determined under the actuarial cost method used by the plan, must not be less than the sum of the present value of the normal cost and the present value of the special payments determined in accordance with section 5 that would be required to liquidate any going concern unfunded liability determined using the benefit allocation method.

2.1 The present values referred to in paragraphs 1, 1.2 and 2 shall be determined without reference to paragraphs 7 and 10 and without reference to subsections (2.7) and (2.7.1).

3. The rate or rates of interest to be used in calculating present values referred to in paragraphs 1, 1.2 and 2 shall be the rate or rates used in the report for the going concern valuation.

3.1 For the purposes of paragraphs 1, 1.2 and 2, the going concern valuation prepared using the benefit allocation method shall use the same rate or rates of interest as those used in the going concern valuation prepared using the actuarial cost method used by the plan.

4. In the case of a pension plan that is not a jointly sponsored pension plan, the present values referred to in paragraph 2 shall be calculated using whichever of the following periods is longer:

i. The period that begins on the valuation date and continues until the end of the remaining amortization period of the going concern unfunded liability that has the longest remaining amortization period.

ii. The period of five years that begins on the valuation date.

4.1 In the case of a jointly sponsored pension plan, the present values referred to in paragraph 2 shall be calculated using whichever of the following periods is longer:

i. The period that begins on a date not later than 12 months after the valuation date or, in the case of an inter-valuation report described in section 5.5, not later than January 1, 2007, and continues until the end of the remaining amortization period of the going concern unfunded liability that has the longest remaining amortization period.

ii. The period of five years that begins on a date not later than 12 months after the valuation date or, in the case of an inter-valuation report described in section 5.5, not later than January 1, 2007.

5. In the case of a jointly sponsored pension plan,

i. the present values referred to in paragraph 1 shall be calculated based on the sum of the projected pensionable earnings for each year in the three-year period referred to in that paragraph,

ii. the present values referred to in paragraph 1.2 shall be calculated based on the sum of the projected pensionable earnings for each year in the five-year period referred to in that paragraph,

iii. the present values referred to in paragraph 2 shall be calculated based on the period used for the purposes of paragraph 4.1 and the sum of the projected pensionable earnings for each year in that period, and

iv. the actuarial assumptions used to determine the sums referred to in subparagraphs i, ii and iii of the projected pensionable earnings shall be consistent with those used in the report for the going concern valuation based on the benefit allocation method.

6. Subject to paragraph 7, the required contribution rate for a jointly sponsored pension plan shall be determined as a level percentage of pensionable earnings for each class of members, subject to any variation that is necessary in order to take into account integration with the Canada Pension Plan or the Quebec Pension Plan.

7. If the required contribution rate set out in a report filed under section 3 or 14 in respect of a jointly sponsored pension plan is higher than the required contribution rate determined in the last report filed under section 3, 13 or 14, the required contribution rate may be increased each year for up to three years, commencing not later than 12 months after the valuation date, by at least one third of the difference between the two contribution rates, but only if,

i. the contribution rate after that period is a level percentage of pensionable earnings, subject to any variation that is necessary in order to take into account integration with the Canada Pension Plan or the Quebec Pension Plan, and

ii. the present value of the required contributions using the increased rates is not less than,

A. the present value of the contributions that would be made in respect of the normal cost for the plan if the benefit allocation method were used, after the application of any actuarial gains to reduce the normal cost in accordance with subsection 7 (3), if paragraph 1 or 1.2 applies, or

B. the sum of the present value of the normal cost and the present value of the special payments determined in accordance with section 5 that would be required to liquidate any going concern unfunded liability determined using the benefit allocation method, if paragraph 2 applies.

8. For the purposes of paragraph 7, the determination of whether the required contribution rate set out in the report is higher than the required contribution rate determined in the last filed report shall be made without taking into account the ability to increase required contribution rates each year for up to three years under that paragraph, and without taking into account the ability to carry forward amounts under paragraph 10 to reduce those increases.

9. The present values referred to in subparagraph 7 ii shall be calculated using the same period as was used to calculate the present values referred to in paragraph 1, 1.2 or 2, whichever is applicable.

10. If paragraph 7 permits the required contribution rate to be increased each year for up to three years and the amount of any increase in the first or second year exceeds one third of the difference between the required contribution rate set out in the report and the required contribution rate determined in the last filed report, the excess may be carried forward to the following year or years and used to reduce the increases in the following year or years, as long as the present value of the required contributions using the increased rates, as adjusted, is not less than the present value referred to in sub-subparagraph 7 ii A or B, whichever is applicable.  O. Reg. 116/06, s. 4 (5); O. Reg. 570/06, s. 2 (1-10).

(2.4) If, in accordance with subsection (2.2), the amount of contributions required to be made to a pension plan that provides defined benefits is determined by using an actuarial cost method other than a benefit allocation method, the payments to the pension fund or to an insurance company, as applicable, shall not be less than the sum of,

(a) the required contributions determined using the actuarial cost method; and

(b) all special payments determined in accordance with section 5 with respect to any solvency deficiency.  O. Reg. 116/06, s. 4 (5).

(2.5) If the amount of contributions required to be made to a pension plan that provides defined benefits is determined in accordance with subsection (2.2) using an actuarial cost method other than a benefit allocation method, the contributions shall be deemed to be the contributions required to be made under this Regulation and the definitions in section 1 shall apply with necessary modifications.  O. Reg. 116/06, s. 4 (5).

(2.6) If a report filed under section 3 or 14 discloses, in respect of a jointly sponsored pension plan for which a benefit allocation method is used to set contribution rates, that an increase in the normal cost is required or that an increase is required in the amount of contributions that were previously reduced under subsection 7 (3), payment of that increase shall commence on a date not later than 12 months after the valuation date.  O. Reg. 570/06, s. 2 (11).

(2.7) If a report filed under section 3 or 14 discloses that there is a going concern unfunded liability that is required to be liquidated in respect of a jointly sponsored pension plan for which a benefit allocation method is used to set the contribution rates, the special payments in respect of the going concern unfunded liability, as determined in accordance with subsection 5 (1.2), may be increased each year for up to three years, commencing not later than 12 months after the valuation date or, in the case of an inter-valuation report described in section 5.5, not later than January 1, 2007, by at least one third of the special payments, but only if,

(a) the special payments after that period are a level percentage of pensionable earnings for each class of members, subject to any variation that is necessary in order to take into account integration with the Canada Pension Plan or the Quebec Pension Plan; and

(b) the present value of the special payments, including the increased special payments, over the amortization period is not less than the amount of the going concern unfunded liability.  O. Reg. 570/06, s. 2 (12).

(2.7.1) If subsection (2.7) permits the special payments in respect of the going concern unfunded liability, as determined in accordance with subsection 5 (1.2), to be increased each year for up to three years, and the amount of any increase in the first or second year exceeds one third of the special payments, the excess may be carried forward to the following year or years and used to reduce the increases in the following year or years, as long as the present value of the special payments, including the increased special payments, as adjusted, over the amortization period is not less than the amount of the going concern unfunded liability.  O. Reg. 570/06, s. 2 (13).

(2.8) In the case of a jointly sponsored pension plan, contributions referred to in subsection 39 (3) of the Act include contributions made by a former member in respect of any going concern unfunded liability or solvency deficiency.  O. Reg. 116/06, s. 4 (5).

(3) Where there is a prior year credit balance, the employer may apply the prior year credit balance to reduce the payments required under clauses (2) (b), (c) and (d).  O. Reg. 712/92, s. 3 (1).

(3.1) Subsection (3) does not apply if the pension plan provides defined benefits and a benefit allocation method is not used to set contribution rates.  O. Reg. 116/06, s. 4 (6).

(4) The payments referred to in subsections (2) and (2.4) shall be made by the employer or, if a person or entity is required to make contributions on behalf of the employer, by that person or entity and, if applicable, by the members of the pension plan within the following time limits:

1. All sums received by the employer from an employee, including money withheld by payroll deduction or otherwise from the employee, as the employee’s contribution to the pension plan, within thirty days following the month in which the sum was received or deducted.

2. Revoked:  O. Reg. 116/06, s. 4 (8).

3. In the case of a pension plan that provides defined benefits, employer contributions in respect of the normal costs reported under clause 13 (1) (a) or 14 (7) (a) for each period covered by a report beginning on or after the 1st day of January, 1988, in monthly instalments within thirty days after the month for which contributions are payable, the amount of the instalments to be either a total fixed dollar amount, a fixed dollar amount for each employee or member of the plan or a fixed percentage either of the portion of the payroll related to members of the plan or of employee contributions.

3.1 Where all the pension benefits provided under the plan are defined contribution benefits, employer contributions for the plan’s fiscal year, in monthly instalments within 30 days after the month for which contributions are payable, the amount of the instalments to be either a total fixed dollar amount, a fixed dollar amount for each employee or member of the plan or a fixed percentage either of the portion of the payroll related to members of the plan or of employee contributions.

4. Revoked:  O. Reg. 116/06, s. 4 (8).

5. All special payments determined in accordance with section 5, subsection 31 (5) and subsection 35 (5), other than a payment made under paragraph 4, in equal monthly instalments in accordance with the times for payment set out in sections 5, 31 and 35.

6. All special payments determined in accordance with subsections 31 (1) and (2), section 32 and subsection 35 (3), by annual instalment in accordance with the times for payment set out in sections 31, 32 and 35.  O. Reg. 712/92, s. 3 (1); O. Reg. 386/04, s. 1; O. Reg. 116/06, s. 4 (7).

(5) Subject to subsections (10) and (11), if the period covered by a report filed under section 3, 5.3, 13 or 14 or submitted under this section has ended, and no report covering a subsequent period is filed under section 14 or submitted under this section, the employer or, if a person or entity is required to make contributions on behalf of the employer, that person or entity and, if applicable, the members of the pension plan shall continue to make payments in accordance with the report most recently filed or submitted under section 3, 5.3, 13 or 14 or this section.  O. Reg. 116/06, s. 4 (9).

(6) The Superintendent may cause a report on a plan to be prepared where,

(a) a report required under section 3, 13 or 14 on the plan has not been filed within one year after the time required by this Regulation; and

(b) the Superintendent is of the opinion that the preparation of a report in accordance with subsection (7) is necessary to ensure that the plan is sufficiently funded to provide the benefits under the plan.  O. Reg. 712/92, s. 3 (2); O. Reg. 307/98, s. 2 (1); O. Reg. 144/00, s. 4 (1).

(7) A report under subsection (6) must contain the information required by section 3, 13 or 14, whichever applies.  O. Reg. 144/00, s. 4 (2).

(7.1) A report under subsection (6) must be prepared by an actuary chosen by the Superintendent and must be submitted by the actuary to the Superintendent.  O. Reg. 144/00, s. 4 (2).

(8) If, during the preparation of a report on a plan, under this section, the Superintendent forms the opinion that the report is no longer necessary to ensure that the plan is sufficiently funded to provide the benefits under the plan, the Superintendent may cause work on the report to cease and the actuary need not submit the report to the Superintendent.  O. Reg. 712/92, s. 3 (2); O. Reg. 307/98, s. 2 (3).

(9) If a report is submitted to the Superintendent under subsection (7.1), the employer or, if another person or entity is required to make contributions on behalf of the employer, that person or entity and, if applicable, the members of the pension plan shall make payments in accordance with the report.  O. Reg. 116/06, s. 4 (10).

(10) Except as provided in subsection (11), if a payment requirement set out in a report submitted under subsection (7.1) concerning a plan differs from a payment requirement set out in a report filed by the administrator, the employer or, if another person or entity is required to make contributions on behalf of the employer, that person or entity and, if applicable, the members of the pension plan shall make payments in accordance with the higher requirement.  O. Reg. 116/06, s. 4 (10).

(11) If, in the opinion of the Superintendent, a payment in accordance with the higher requirement under subsection (10) is not necessary to ensure that the plan is sufficiently funded to provide benefits under the plan, the payments shall be made in accordance with the lower requirement.  O. Reg. 116/06, s. 4 (10).

(12) Revoked:  O. Reg. 144/00, s. 4 (3).

(13) This section does not apply to a pension plan described in subsection 6 (1) unless it is a jointly sponsored pension plan.  O. Reg. 116/06, s. 4 (11).

Funding of Pension Plans
Special Payments — General

5. (1) Except as otherwise provided in this section and in sections 4, 5.1 and 7, the special payments required to be made after the initial valuation date under clause 4 (2) (c) shall be not less than the sum of,

(a) any special payments remaining to be paid with respect to any initial unfunded liability or experience deficiency within the meaning of Regulation 746 of the Revised Regulations of Ontario, 1980 as it read on the 31st day of December, 1987, after reducing the sum of the initial unfunded liability and experience deficiency by the amount of any unused actuarial gains existing on the 31st day of December, 1987;

(b) with respect to any going concern unfunded liability not covered by clause (a), the special payments required to liquidate the liability, with interest at the going concern valuation interest rate, by equal monthly instalments over a period of fifteen years beginning on the valuation date of the report in which the going concern unfunded liability was determined;

(c) with respect to each solvency deficiency redetermined under subsection (3), the special payments required to liquidate the redetermined solvency deficiency, with interest at the rates used in calculating the solvency liabilities in the first report filed or submitted under section 3, 4 or 14 with a valuation date after the Regulation date, by equal monthly instalments over the period beginning on the valuation date of the report in which the solvency deficiency was determined and ending on the 31st day of December, 2002;

(d) with respect to each solvency deficiency arising before the Regulation date that is not redetermined under subsection (3), the special payments required to liquidate the solvency deficiency, with interest at the rates described in subsection (2), by equal monthly instalments over the period beginning on the valuation date of the report in which the solvency deficiency was determined and ending on the 31st day of December, 2002 or an earlier date; and

(e) with respect to any solvency deficiency arising on or after the Regulation date, the special payments required to liquidate the solvency deficiency, with interest at the rates described in subsection (2), by equal monthly instalments over the period beginning on the valuation date of the report in which the solvency deficiency was determined and ending on the 31st day of December, 2002, or five years, whichever is longer.  O. Reg. 712/92, s. 4.

(1.1) Despite clauses (1) (b) and (e), in the case of a jointly sponsored pension plan, the special payments may be determined in accordance with subsection (1.2) as of,

(a) the date the going concern unfunded liability arose, for special payments referred to in clause (1) (b); or

(b) the date the solvency deficiency arose, for special payments referred to in clause (1) (e).  O. Reg. 116/06, s. 5 (1).

(1.2) The special payments referred to in subsection (1.1) are determined under the following rules:

1. Each scheduled payment must be a level percentage of the sum of pensionable earnings of the members of the pension plan at the valuation date projected to the date when the scheduled payments commence and, after that date, projected annually until the end of the amortization period without reference to,

i. changes in the membership of the plan that may occur after the valuation date and that arise from termination of employment or membership, the retirement or death of members or the addition of new members to the plan, or

ii. any other changes in the membership of the plan that may occur after the valuation date.

1.1 Despite paragraph 1, if there is reason to believe that there will be a material decline in the number of members before the end of the amortization period, the sum in paragraph 1 of the projected pensionable earnings must reflect the expected decline in the sum of projected pensionable earnings.

2. The sum in paragraph 1 of the projected pensionable earnings must be determined based on actuarial assumptions that are consistent with those used to project pensionable earnings in the going concern valuation based on the benefit allocation method.

3. The present value of the scheduled payments at the date described in subsection (1.1) must be equal to the amount of the going concern unfunded liability or solvency deficiency being liquidated.

4. The amortization periods for each series of scheduled payments must be the same as the respective periods under clauses (1) (b) and (e), beginning not later than 12 months after the valuation date.

5. The present value of the scheduled payments must be determined,

i. with respect to any going concern unfunded liability, using the interest rate or rates used in the report to determine the going concern unfunded liability, and

ii. with respect to any solvency deficiency, using the interest rates used in the report to determine the solvency deficiency.  O. Reg. 116/06, s. 5 (1); O. Reg. 570/06, s. 3.

(2) The rates of interest to be used in calculating the special payments under clauses (1) (d) and (e) with respect to a solvency deficiency are the rates used in the report under section 14 in which the solvency deficiency was determined for the applicable portions of the amortization period for the special payments.  O. Reg. 712/92, s. 4.

(3) Except where the employer elects not to redetermine under subsection (8), every solvency deficiency determined in a report with a valuation date before the Regulation date shall be redetermined in accordance with this Regulation and the amount of the redetermined solvency deficiency shall be reported in a report filed in accordance with subsection (5).  O. Reg. 712/92, s. 4.

(4) A determination under subsection 13 (1.1) or clause 14 (8) (a) that a solvency deficiency is zero is a determination of a solvency deficiency for the purposes of subsection (3).  O. Reg. 712/92, s. 4.

(5) Except where the employer elects not to redetermine under subsection (8), the administrator shall file a report in accordance with subsections (6) and (7).  O. Reg. 712/92, s. 4.

(6) The valuation date of the report referred to in subsection (5) shall be not later than the last day of the fiscal year of the plan in which the Regulation date falls and the report shall be filed within nine months of the valuation date.  O. Reg. 712/92, s. 4.

(7) The report referred to subsection (5) shall set out,

(a) the information described in subsections 14 (7), (8) and (9);

(b) the amount of each redetermined solvency deficiency;

(c) the special payments, determined in accordance with clause 5 (1) (c), with respect to each redetermined solvency deficiency;

(d) the amount of the initial solvency balance; and

(e) the amount of the prior year credit balance.  O. Reg. 712/92, s. 4.

(8) The employer for a plan may elect not to redetermine the solvency deficiencies arising before the Regulation date if the conditions of subsection (9) are met in relation to each of the following reports:

1. Reports in respect of the plan filed under sections 3, 13 and 14 with valuation dates on or after the lst day of January, 1988 but nine months before the Regulation date.

2. Reports required to be filed in respect of the plan under section 3 on or after the 1st day of July, 1988 but before the Regulation date.

3. Reports required to be filed in respect of the plan under section 13 on or after the lst day of March, 1988 but before the Regulation date.

4. Reports required to be filed in respect of the plan under section 14 on or after the lst day of October, 1988 but before the Regulation date.  O. Reg. 712/92, s. 4.

(9) The following are the conditions that must be met in relation to the reports described in subsection (8):

1. The reports have all been filed.

2. The reports have all been prepared in accordance with the requirements of the Act and this Regulation in effect on the valuation date of the report.

3. All payments required by the reports to be made before the Regulation date have been made.

4. An actuary has signed a statement that the requirements of paragraph 2 have been met.

5. The administrator has signed a statement that the requirements of paragraphs 1 and 3 have been met.  O. Reg. 712/92, s. 4.

(10) An employer who elects not to redetermine under subsection (8) may not rescind the election.  O. Reg. 712/92, s. 4.

(11) Where an employer for a plan has elected not to redetermine under subsection (8), the administrator for the plan shall file, within nine months after the last day of the fiscal year of the plan in which the Regulation date falls, a report including,

(a) the statements described in paragraphs 4 and 5 of subsection (9);

(b) with respect to the special payments required under clause 5 (1) (d), the amount of the monthly instalments and the period over which they are to be paid;

(c) the amount of initial solvency balance at the Regulation date; and

(d) the amount of the prior year credit balance at the Regulation date.  O. Reg. 712/92, s. 4.

(12) In this section,

“prepayments”, in relation to a plan, means that part of the special payments that exceeded the special payments required under this Regulation as it read before the Regulation date and that were paid by the employer before the Regulation date with respect to the going concern unfunded liability but that were not applied by the employer before the Regulation date under subsection 12 (1) of this Regulation as it read before the Regulation date, but no special payments by the employer that were included in the calculation of the initial solvency balance of the plan shall be included in prepayments.  O. Reg. 712/92, s. 4.

(13) For a plan established on or after the Regulation date, the prior year credit balance to be used in the report on the plan filed under section 13 shall be zero.  O. Reg. 712/92, s. 4.

(14) For a plan in respect of which an administrator files a report under subsection (11), the prior year credit balance to be used in the subsection (11) report shall be an amount equal to the sum of any positive initial solvency balance for the plan and an amount equal to the prepayments for the plan.  O. Reg. 712/92, s. 4.

(15) For a plan not referred to in subsection (13) or (14), the prior year credit balance to be used in the first report filed or submitted under any one of sections 3, 4 and 14 after the Regulation date shall be an amount equal to the sum of any positive initial solvency balance for the plan and an amount equal to the prepayments for the plan or, in the case of a plan with no positive initial solvency balance, an amount equal to the prepayments for the plan.  O. Reg. 712/92, s. 4.

(16) Subject to subsections (13), (14), (15), (16.1) and 5.1 (5), the prior year credit balance to be used in any report or actuarial cost certificate required under this Regulation in respect of a plan is the amount calculated using the formula,

A + B – C

in which,

  “A” is the prior year credit balance stated in the last report or actuarial cost certificate filed or submitted in respect of the plan under this Regulation,

  “B” is the total amount of contributions made to the plan by an employer or by a person or entity required to make contributions under the plan on behalf of an employer,

(a) after the valuation date of the last report or actuarial cost certificate filed or submitted in respect of the plan under this Regulation, and

(b) before the valuation date for the report or actuarial cost certificate being prepared, and

  “C” is the total amount of contributions that, under section 4, would be required to have been made during the period described in the definition of “B” by an employer or by a person or entity required to make contributions under the plan on behalf of an employer if the contributions had been calculated without reference to any prior year credit balance.

O. Reg. 239/09, s. 3.

(16.1) For a report filed under section 3 or 14 or submitted under section 4 that has a valuation date of December 31, 1998 or later, the prior year credit balance may be reduced to an amount that is,

(a) less than the amount otherwise determined in accordance with subsection (16); and

(b) not less than zero.  O. Reg. 144/00, s. 5 (2).

(16.2) Despite subsections (13), (14), (15), (16) and (16.1), if a pension plan provides defined benefits and a benefit allocation method is not used to set the contribution rates, the prior year credit balance to be used in any report filed or submitted in respect of the pension plan shall be zero.  O. Reg. 116/06, s. 5 (2).

(17) If, on any valuation date after the initial valuation date the sum of the solvency assets and the solvency asset adjustment exceeds the sum of the solvency liabilities, the solvency liability adjustment and the prior year credit balance (such excess being referred to in this subsection as the “solvency excess”), the special payments under clauses (1) (c), (d) and (e) with respect to solvency deficiencies arising before the valuation date that are scheduled for payment after the valuation date shall be adjusted in accordance with the following rules:

1. Where the solvency excess is greater than or equal to the present value of the special payments under clauses (1) (c), (d) and (e), the special payments shall be reduced to zero.

2. Where the solvency excess is less than the present value of the special payments under clauses (1) (c), (d) and (e), the monthly rate of the special payments shall not be changed but the amortization period or periods for the special payments shall be reduced so as to reduce the solvency excess to zero.  O. Reg. 712/92, s. 4; O. Reg. 116/06, s. 5 (3).

(18) If on the Regulation date a plan provides plant closure benefits or permanent layoff benefits, the employer may elect, by filing written notice with the Superintendent within the time set out in subsection (19), to exclude all plant closure benefits and permanent layoff benefits in calculating the solvency liabilities of the plan.  O. Reg. 712/92, s. 4.

(19) An election under subsection (18) shall be made within the time set out in this Regulation for the filing of the first report on the plan after the Regulation date under section 3 or 14.  O. Reg. 712/92, s. 4.

(20) At any time after an election is made under subsection (18), the employer may rescind the election by filing written notice.  O. Reg. 712/92, s. 4.

(21) A rescission under subsection (20) is effective from the date on which the written notice is filed.  O. Reg. 712/92, s. 4.

(22) An employer who has rescinded an election under subsection (18) shall not make any further election under subsection (18) in respect of the plan.  O. Reg. 712/92, s. 4.

(23) Except where an employer elects not to redetermine under subsection (8) or files an initial special report under subsection 5.3 (1), the special payments required in the period beginning on the Regulation date and ending on the initial valuation date to amortize a going concern unfunded liability or solvency deficiency shall be not less than the special payments required under this Regulation as it read immediately before the Regulation date.  O. Reg. 712/92, s. 4.

(24) Where an employer has elected not to redetermine under subsection (8), the special payments required in the period beginning on the Regulation date and ending on the initial valuation date with respect to each solvency deficiency determined in a report with a valuation date before the Regulation date shall be not less than the special payments required under clause 5 (1) (d).  O. Reg. 712/92, s. 4.

(25) Nothing in this section relieves any person from making any payments required under this Regulation in respect of a negative initial solvency balance of a plan.  O. Reg. 712/92, s. 4.

5.1 (1) Where an employer has a plan that has more than $500,000,000 of assets, calculated at market value, as shown in the financial statements filed under section 76 for the fiscal year immediately preceding the date of election, and the plan is registered under the Act and is not a plan described in subsection 6 (1), the employer may file a written notice electing to have the plan treated as a qualifying plan for the purposes of this section.  O. Reg. 712/92, s. 4.

(2) Where an employer has two or more plans that together have more than $500,000,000 of assets, calculated at market value, as shown in the financial statements filed under section 76 for the fiscal year immediately preceding the date of election, each of the plans is registered under the Act and none of the plans is a plan described in subsection 6 (1), the employer may file a written notice electing to have all of the plans treated as qualifying plans for the purposes of this section.  O. Reg. 712/92, s. 4.

(2.1) Employers are not entitled to file a written notice under subsection (1) or (2) on or after June 28, 2002.  O. Reg. 203/02, s. 1.

(3) A plan in respect of which an election has been made under subsection (1) or (2) becomes a qualifying plan at the time of filing the notice of the election and remains a qualifying plan until the election has been rescinded in accordance with this section.  O. Reg. 712/92, s. 4.

(4) Subject to subsections (6), (7) and (8) and despite clause 4 (2) (c), an employer for a qualifying plan need not make special payments under clauses 5 (1) (c), (d) and (e) with respect to any solvency deficiency for the plan.  O. Reg. 712/92, s. 4.

(5) The prior year credit balance to be used in any report under this Regulation in respect of a qualifying plan shall be an amount equal to the prepayments, within the meaning of subsection 5 (12), for the plan.  O. Reg. 712/92, s. 4.

(6) Subsection (8) applies to a plan in respect of which an election was made under subsection (1) as of the earlier of,

(a) the valuation date of any report filed or submitted under this Regulation in respect of the plan after the filing of the notice of election that shows that the plan has assets equal to or less than $500,000,000, calculated at market value; and

(b) nine months before the first date on which a report required to be filed under section 14 in respect of the plan is not filed.  O. Reg. 712/92, s. 4.

(7) Subsection (8) applies to plans in respect of which an election was made under subsection (2) as of the earlier of,

(a) the valuation date of the first report filed or submitted under this Regulation in respect of one of the plans after the filing of the notice of election that shows that the plans together have assets equal to or less than $500,000,000, calculated at market value; and

(b) nine months before the first date on which a report required to be filed under section 14 in respect of any of the plans is not filed.  O. Reg. 712/92, s. 4.

(8) Where this subsection applies to a plan or plans by virtue of subsection (6) or (7), the following rules apply:

1. Subsection (4) ceases to apply in respect of the plan or plans.

2. The employer shall make special payments in accordance with clauses 5 (1) (c), (d) and (e) in respect of the plan or plans.

3. The employer shall continue to pay assessments to the Guarantee Fund in accordance with subsection 37 (6).  O. Reg. 712/92, s. 4.

(9) Subsection (8) ceases to apply to a plan in respect of which an election was made under subsection (1) on the earlier of,

(a) the date of rescission with respect to the plan under subsection (12); and

(b) the valuation date of the first report filed or submitted under this Regulation in respect of the plan after the date on which subsection (8) began to apply to the plan that shows that the plan has more than $500,000,000 of assets, calculated at market value.  O. Reg. 712/92, s. 4.

(10) Subsection (8) ceases to apply to plans in respect of which an election was made under subsection (2) on the earlier of,

(a) the date of rescission with respect to the plans under subsection (12); and

(b) the valuation date of the first report filed or submitted under this Regulation in respect of one of the plans after the date on which subsection (8) began to apply to the plan that shows that the plans together have more than $500,000,000 of assets, calculated at market value, where at the time that the report is filed or submitted there are no reports required to be filed under section 14 in respect of any of the plans that have not been filed.  O. Reg. 712/92, s. 4.

(11) For the purposes of subsection (7) and clause (10) (b), a report in respect of one of the plans shows that the plans together have assets equal to, less than or more than $500,000,000, as the case may be, if the assets it shows, added to the assets shown in each of the most recent reports filed or submitted in respect of each of the other plans, are equal to, less than or more than $500,000,000, as the case may be.  O. Reg. 712/92, s. 4.

(12) An employer may at any time file a written notice of rescission of an election filed under subsection (1) or (2) and the rescission is effective on the day the written notice is filed.  O. Reg. 322/09, s. 1.

(13) No employer may elect under subsection (1) or (2) or rescind under subsection (12) in respect of a pension plan more than once.  O. Reg. 712/92, s. 4.

5.2 In this section and sections 5.3 and 5.4, with respect to a plan for which the employer has filed an initial special report under subsection 5.3 (1),

“deemed annual Guarantee Fund assessment” means, for any fiscal year, the sum of,

(a) $1 per member employed in Ontario on the last day of the fiscal year, and

(b) two-tenths of 1 per cent of the special PBGF assessment base on the last day of the fiscal year; (“cotisation annuelle réputée versée au Fonds de garantie”)

“initial going concern contribution deficit” means the amount by which,

(a) the aggregate normal costs described in clause 5.3 (3) (a) and special payments described in clause 5.3 (3) (d), with interest at the going concern valuation rate for the periods beginning on their respective due dates and ending on the valuation date of the initial special report,

exceeds,

(b) the aggregate normal costs and special payments paid by the employer to a pension fund in respect of the periods covered by the initial special report, with interest at the going concern valuation rate for the periods beginning on their respective actual dates of payment and ending on the valuation date of the initial special report; (“déficit initial à long terme au titre des cotisations”)

“initial PBGF assessment deficit” means the amount by which the aggregate of the deemed annual Guarantee Fund assessments for all fiscal years covered by the initial special report exceeds the aggregate of the amounts paid by the employer to the Guarantee Fund in respect of the fiscal years covered by the initial special report; (“déficit initial au titre des cotisations au Fonds de garantie”)

“special PBGF assessment base” means the amount by which,

(a) the special PBGF liabilities,

exceed,

(b) the solvency assets multiplied by the special PBGF liabilities and divided by the special solvency liabilities; (“base spéciale de cotisation au Fonds de garantie”)

“special PBGF liabilities” means the special solvency liabilities of a pension plan that relate to the Ontario plan beneficiaries; (“passif spécial du Fonds de garantie”)

“special solvency liabilities” means the solvency liabilities of a pension plan determined in accordance with the provisions of the plan and the requirements of this Regulation as it read before the Regulation date, as if the plan had been wound up and the employer’s business completely discontinued, including,

(a) liabilities for plant closure benefits and consent benefits, and

(b) liabilities for special allowances, calculated as if the plan members and former members would receive no income from employment on and after the commencement date of the special allowance,

but excluding,

(c) liabilities for any escalated adjustment, and

(d) liabilities for prospective benefit increases. (“passif spécial de solvabilité”)  O. Reg. 712/92, s. 4.

5.3 (1) Within six months following the Regulation date, an employer with a pension plan that is a qualifying plan under section 5.1 may file an initial special report on the plan in accordance with this section instead of filing reports that were due under sections 3, 13 and 14 on or before the Regulation date and that were not filed by the Regulation date.  O. Reg. 712/92, s. 4.

(2) The initial special report shall,

(a) be prepared by an actuary;

(b) be prepared with a valuation date that precedes the Regulation date;

(c) be prepared with a valuation date that precedes the Regulation date by less than one year; and

(d) cover,

(i) the fiscal years that would have been covered by reports that were due under sections 3, 13 and 14 on or before the Regulation date and that were not filed by the Regulation date, if the requirements of this Regulation had been met, and

(ii) the fiscal year beginning with the valuation date of the initial special report.  O. Reg. 712/92, s. 4.

(3) The initial special report shall set out, on the basis of a going concern valuation,

(a) the normal cost for each year preceding the valuation date of the initial special report in respect of which a report was required under section 14 but not filed;

(b) the normal cost in the year immediately following the valuation date of the initial special report;

(c) the estimated aggregate employee contributions to the pension plan for each year preceding the valuation date of the initial special report in respect of which a report was required under section 14 but not filed and for the year immediately following the valuation date of the initial special report;

(d) the special payments in respect of going concern unfunded liabilities for each year preceding the valuation date of the initial special report in respect of which a report was required under section 14 but not filed;

(e) the present value as of the valuation date of the initial special report of special payments that are scheduled for payment after that date;

(f) where the plan provides for an escalated adjustment, whether and to what extent,

(i) the liability for the future cost of the adjustment has been included in the determination of any going concern unfunded liability, or

(ii) the cost of the escalated adjustment has been included in the normal cost;

(g) the actuarial gain or actuarial loss in the pension plan;

(h) where there is an actuarial loss, the special payments that will liquidate any increase in a going concern unfunded liability resulting from the loss over a term not exceeding fifteen years;

(i) where there is an actuarial gain, any intended application of the gain in accordance with section 7; and

(j) the initial going concern contribution deficit.  O. Reg. 712/92, s. 4; O. Reg. 116/06, s. 6.

(4) The initial special report shall also set out, on the basis of a solvency valuation,

(a) for the date at the end of each year preceding the valuation date of the initial special report for which a report under section 14 was not filed, the solvency assets, special solvency liabilities, special PBGF liabilities and special PBGF assessment base;

(b) the initial PBGF assessment deficit;

(c) the amount of the Guarantee Fund assessment referred to in subsection 37 (6);

(d) whether the transfer ratio is less than one; and

(e) if the transfer ratio is less than one, the transfer ratio.  O. Reg. 712/92, s. 4.

5.4 Where an employer has filed a report under section 5.3, the employer shall, within twelve months following the Regulation date, pay the initial going concern contribution deficit to the pension fund and the initial PBGF assessment deficit to the Guarantee Fund.  O. Reg. 712/92, s. 4.

Funding of Pension Plans
Funding Jointly Sponsored Pension Plans

5.5 (1) Despite subsection 14 (10), an inter-valuation report for a jointly sponsored pension plan with a valuation date on or after December 31, 2004 and before September 30, 2005 may be filed after September 30, 2005, but not later than June 30, 2006.  O. Reg. 116/06, s. 7.

(2) Despite clauses 5 (1) (b) and (e), with respect to any going concern unfunded liability or solvency deficiency of a jointly sponsored pension plan, as determined in an inter-valuation report referred to in this section, the special payments required to liquidate the going concern unfunded liability or solvency deficiency may be paid in equal monthly payments or in accordance with subsections 5 (1.1) and (1.2), commencing not later than January 1, 2007 and ending not later than 15 years or five years later, as applicable.  O. Reg. 116/06, s. 7.

(3) In this section,

“inter-valuation report” means a report filed under section 14 in the interim period before a report with a valuation date that is three years after the last valuation date is required to be filed.  O. Reg. 116/06, s. 7.

Solvency Funding Relief

5.6 (1) In this section and section 5.7,

“certificate of consent” means a certificate filed with the Superintendent by the administrator of a plan that is not a jointly governed plan,

(a) that specifies,

(i) the total number of persons who were eligible members or eligible former members on the valuation date of the plan’s solvency relief report and on the day the information statement under subsection 5.7 (2) was sent by the administrator, and

(ii) the number of persons described in subclause (i) who either submitted notices of objection to the election of Option 3 by the administrator or were represented by a collective bargaining agent that submitted a notice of objection on their behalf, and

(b) that confirms that the number of objections to the election that were received by the administrator represents objections from not more than one-third of the total number of persons described in subclause (a) (i); (“certificat de consentement”)

“consolidated prior solvency deficiency” means, in respect of a plan, the present value as of the valuation date of the solvency relief report of all special payments, other than payments required only by reason of section 75 of the Act,

(a) that are required with respect to any solvency deficiency determined in a report under section 3, 13 or 14 that was filed before the solvency relief report is filed, and

(b) that are scheduled to be paid after the valuation date of the solvency relief report; (“déficit de solvabilité antérieur consolidé”)

“eligible former member” means, with respect to a plan, a former member whose pension or pension benefit includes a defined benefit, other than,

(a) a former member who no longer has an entitlement to any payments from the plan, and

(b) a former member for whom a notice of death has been received by the administrator; (“ancien participant admissible”)

“eligible member” means, with respect to a plan, a member whose pension benefit includes a defined benefit, other than,

(a) a member who no longer has an entitlement to any payments from the plan, and

(b) a member for whom a notice of death has been received by the administrator; (“participant admissible”)

“excluded plan” means,

(a) a plan that does not provide defined benefits,

(b) a plan that is not registered before September 30, 2008 under the Act or the legislation of a province or territory designated under section 23 unless,

Note:  On October 1, 2010, clause (b) is amended by striking out the portion before subclause (i) and substituting the following:

(b) a plan that is not registered before September 30, 2008 under the Act or the legislation of a designated jurisdiction unless,

See:  O. Reg. 342/10, ss. 2, 5.

(i) the plan is deemed under section 80 of the Act to be a continuation of another plan that was registered before that day,

(ii) the plan is a successor plan described in section 81 of the Act and the original plan was registered before that day, or

(iii) the plan was formed by the merger of two or more plans and at least one of the original plans was registered before that day,

(c) a multi-employer pension plan that is a specified Ontario multi-employer pension plan under section 6.0.1,

(d) a plan that is a participating pension plan under Ontario Regulation 99/06 (Stelco Inc. Pension Plans) made under the Act,

(e) a qualifying plan, or

(f) a plan to which not all of the contributions set out in reports filed under section 3, 13 or 14 that were required to be made before the valuation date of the plan’s solvency relief report have been made in accordance with the Act and the regulations; (“régime exclu”)

“jointly governed plan” means a plan other than an excluded plan that is,

(a) a jointly sponsored pension plan,

(b) a multi-employer pension plan established pursuant to a collective agreement or a trust agreement,

(c) a plan whose administrator is a pension committee all of whose members are representatives of members of the plan, or

(d) a plan whose administrator is a pension committee described in clause 8 (1) (b) of the Act if at least one-half of the members of the pension committee represent members of the plan or persons receiving pensions under the plan; (“régime à gestion paritaire”)

“new going concern unfunded liability” means, with respect to a plan, a going concern unfunded liability determined in the plan’s solvency relief report; (“nouveau passif à long terme non capitalisé”)

“new solvency deficiency” means, with respect to a plan, a solvency deficiency determined in the plan’s solvency relief report; (“nouveau déficit de solvabilité”)

“Option 1” means the type of solvency relief described in paragraph 1 of subsection (3); (“option 1”)

“Option 2” means the type of solvency relief described in paragraph 2 of subsection (3); (“option 2”)

“Option 3” means the type of solvency relief described in paragraph 3 of subsection (3); (“option 3”)

“solvency relief report” means, with respect to a plan, the first report filed by the administrator under section 13 or 14 for which the valuation date is on or after September 30, 2008 and before September 30, 2011. (“rapport sur l’allègement de la capitalisation du déficit de solvabilité”)  O. Reg. 239/09, s. 4.

(2) This section applies despite any other provision of this Regulation.  O. Reg. 239/09, s. 4.

(3) The administrator of a plan that is not an excluded plan, may, subject to this section, elect to use one or more of the following types of solvency relief:

1. If there is a new going concern unfunded liability or a new solvency deficiency, the deferral for up to 12 months of the start of the period during which special payments are required to be made to liquidate them.

2. If a solvency deficiency was determined in a report filed under section 3, 13 or 14 before the solvency relief report is filed and has not been liquidated, the establishment of a new five-year period during which the plan’s consolidated prior solvency deficiency is to be liquidated.

3. If there is a new solvency deficiency, the extension of the five-year period during which the new solvency deficiency would otherwise be required to be liquidated for up to an additional five years.  O. Reg. 239/09, s. 4.

(4) The following exceptions apply for the purposes of this section:

1. The administrator of a jointly sponsored pension plan may not elect Option 1.

2. The administrator of a plan that is one of the new pension plans for the purposes of Ontario Regulation 202/02 (Algoma Steel Inc. Pension Plans) made under the Act, may not elect Option 2.

3. The administrator of a plan that is not a jointly governed plan may not elect Option 3,

i. if the administrator does not comply with section 5.7,

ii. if the administrator receives notices of objection representing objections to the election from more than one-third of the persons who are eligible members or eligible former members described in section 5.7, or

iii. if the administrator fails to file with the Superintendent, not more than 60 days after filing the solvency relief report, a certificate of consent.  O. Reg. 239/09, s. 4.

(5) An election under this section must be in writing, may be made only once, cannot be rescinded and must be filed with the Superintendent no later than the day on which the solvency relief report is filed with the Superintendent.  O. Reg. 239/09, s. 4.

(6) If the administrator of a plan makes an election under this section, the following rules apply in the circumstances described in the following paragraphs:

1. If there was a new solvency deficiency or the administrator elected Option 2 and, on a valuation date after the valuation date of the solvency relief report, the sum of the solvency assets and the solvency asset adjustment exceeds the sum of the solvency liabilities, the solvency liability adjustment and the prior year credit balance (such excess being referred to in this paragraph as the “solvency excess”), the special payments or amortization periods under subsection 5 (1) with respect to the new solvency deficiency and the consolidated prior solvency deficiency or the amortization period with respect to any solvency deficiency arising after the valuation date of the solvency relief report may be adjusted in accordance with the following rules:

i. The special payments are reduced to zero if the solvency excess is greater than or equal to the sum of,

A. the present value of the special payments with respect to the new solvency deficiency, if applicable,

B. the present value of the special payments with respect to the consolidated prior solvency deficiency, if applicable, and

C. the present value of the special payments with respect to any solvency deficiency arising after the valuation date of the solvency relief report.

ii. If the solvency excess is less than the sum of the present value of the special payments described in sub-subparagraphs i A, B and C, the solvency excess may be applied to reduce any of the following in order to reduce the solvency excess to zero:

A. The special payments with respect to the new solvency deficiency over the amortization period set out in the solvency relief report.

B. The special payments with respect to the consolidated prior solvency deficiency over the amortization period set out in the solvency relief report.

C. The amortization period for the special payments with respect to the new solvency deficiency.

D. The amortization period for the special payments with respect to the consolidated prior solvency deficiency.

E. The amortization period for the special payments with respect to any solvency deficiency arising after the valuation date of the solvency relief report.

2. If the administrator elects Option 1 and there is a new going concern unfunded liability, the beginning of the 15-year amortization period under subsection 5 (1) for the new going concern unfunded liability may be deferred to a day that is not later than 12 months after the valuation date.

3. If the administrator elects Option 1 and there is a new solvency deficiency,

i. the beginning of the five-year amortization period under subsection 5 (1) for the new solvency deficiency may be deferred to a day that is not later than 12 months after the valuation date, and

ii. the solvency asset adjustment for the new solvency deficiency must be adjusted as follows:

A. If a benefit allocation method is used to set contribution rates for the plan, the solvency asset adjustment under clause 1.2 (1) (d) for the new solvency deficiency must include the present value of all special payments required to be made in respect of any going concern unfunded liability that are scheduled for payment within the period that begins on the valuation date of the solvency relief report and ends at the end of the five-year amortization period chosen by the administrator in accordance with subparagraph i.

B. If a benefit allocation method is not used to set contribution rates for the plan, the solvency asset adjustment under subsection 1.2 (2) for the new solvency deficiency must be determined as if “C” in the definition of “B” in that subsection were the present value of the required contributions, which are determined using the actuarial cost method adopted by the plan, for the period that begins on the valuation date of the solvency relief report and ends at the end of the five-year amortization period chosen by the administrator in accordance with subparagraph i.

4. The period during which special payments are deferred when Option 1 is elected is deemed for the purposes of subsections 7 (3) and (4) to still be a period for which special payments are required to be made under section 5.

5. If the plan is not a jointly sponsored pension plan and the administrator elects Option 2,

i. the consolidated prior solvency deficiency must be liquidated, with interest at the rates described in subsection 5 (2), by equal monthly instalments over a period of five years beginning on the valuation date of the solvency relief report, instead of over the remaining portion of the amortization period or periods that would otherwise apply,

ii. the monthly instalments required to liquidate the consolidated prior solvency deficiency are deemed to be special payments under subsection 5 (1) for the purposes of liquidating a solvency deficiency,

iii. the solvency asset adjustment under clause 1.2 (1) (d) for a new solvency deficiency must include the present value of all special payments required to liquidate the consolidated prior solvency deficiency, and

iv. the amount by which “A” exceeds “B” may be applied to reduce the amount of any contributions to be made in accordance with the solvency relief report until the next report under section 3, 13 or 14 is filed and, for the purposes of subsection 37 (12), is deemed not to be an excess special payment, where,

“A” is the amount of the special payments in respect of any solvency deficiency determined in a report filed previously under section 3, 13 or 14 that are made between the valuation date of the solvency relief report and the day the solvency relief report is filed, and

“B” is the amount of the special payments required to be made in respect of the consolidated prior solvency deficiency between the valuation date of the solvency relief report and the day the solvency relief report is filed.

6. Subject to paragraph 7, if the plan is not a jointly sponsored pension plan, if the administrator elects Option 2 or 3 or both options and if, after the later of the day on which the solvency relief report is required to be filed and any certificate of consent is required to be filed in respect of the election, the administrator files an amendment to the plan to increase pension benefits or ancillary benefits, any increase in the going concern unfunded liability that results from the amendment must be liquidated, with interest at the going concern valuation interest rate or rates, by special payments determined under section 5 over a period of five years, beginning on the valuation date of the report under section 3 or 14 in which the increase in the going concern unfunded liability is determined.

7. Paragraph 6 does not apply with respect to an increase in a going concern unfunded liability that results from an amendment or a part of an amendment that does not take effect until after the later of,

i. the day on which the consolidated prior solvency deficiency is liquidated, if the administrator elected Option 2 or both Options 2 and 3, and

ii. the day on which the remaining period during which the new solvency deficiency must be liquidated is equal to five years, if the administrator elected Option 3 or both Options 2 and 3.

8. If the plan is not a jointly sponsored pension plan, a benefit allocation method is used to set contribution rates for the plan and the administrator elects Option 3,

i. the period under subsection 5 (1) in which the new solvency deficiency must be liquidated begins on the valuation date of the solvency relief report and ends on a day not more than 10 years after that day,

ii. the solvency asset adjustment under clause 1.2 (1) (d) for the new solvency deficiency must include the present value of all special payments required to be made in respect of any going concern unfunded liability that are scheduled for payment during the period that begins on the valuation date of the solvency relief report and ends at the end of the period referred to in subparagraph i, and

iii. the solvency asset adjustment under clause 1.2 (1) (d) for a solvency deficiency determined in a report under section 3 or 14 (called the “subsequent report” in this subparagraph and subparagraph 10 iii) for a valuation date after the valuation date of the solvency relief report but before the day on which the new solvency deficiency is liquidated, must include,

A. the present value of special payments referred to in subsection 5 (1) with respect to any going concern unfunded liability arising on or before the valuation date of the solvency relief report that are scheduled for payment within the period that begins on the valuation date of the subsequent report and ends at the end of five years or at the end of the period in which the new solvency deficiency is liquidated, whichever period is longer, and

B. the present value of special payments with respect to the new solvency deficiency that are scheduled for payment within the period that begins on the valuation date of the subsequent report and ends at the end of the period in which the new solvency deficiency is liquidated.

8.1 If the plan is not a jointly sponsored pension plan, a benefit allocation method is not used to set contribution rates for the plan and the administrator elects Option 3,

i. the period under subsection 5 (1) in which the new solvency deficiency must be liquidated begins on the valuation date of the solvency relief report and ends on a day not more than 10 years after that day,

ii. the solvency asset adjustment under subsection 1.2 (2) for the new solvency deficiency must be determined as if “C” in the definition of “B” in that subsection were the present value of the required contributions, which are determined using the actuarial cost method adopted by the plan, for the period that begins on the valuation date of the solvency relief report and ends at the end of the period referred to in subparagraph i, and

iii. the solvency asset adjustment under subsection 1.2 (2) for a solvency deficiency determined in a report under section 3 or 14 (called the “subsequent report” in this subparagraph and subparagraph 10 iv) for a valuation date that is after the valuation date of the solvency relief report but before the new solvency deficiency is liquidated must be determined as if “B” in that subsection is the greater of zero and the amount calculated using the formula,

A + B – C + D

in which,

“A” is the present value of required contributions, determined using the actuarial cost method adopted by the plan, for the five-year period that begins on the valuation date of the subsequent report,

“B” is the present value of any special payments described in clause 5 (1) (e), other than special payments required to liquidate a solvency deficiency determined in the subsequent report,

“C” is the present value of the normal cost, which is determined using a benefit allocation method, for the period described in the definition of “A”, and

“D” is zero, if the period defined as “E” ends not later than the end of the period described in the definition of “A” or, if the period defined as “E” ends after the end of the period described in the definition of “A”, “D” is the lesser of “F” and “G”, where,

“E” is the period that begins on the valuation date of the subsequent report and ends at the end of the period in which the new solvency deficiency is liquidated,

“F” is the amount by which the difference between the present value of required contributions, determined using the actuarial cost method adopted by the plan, for the period defined as “E” and the amount of “A” exceeds the difference between the present value of the normal cost, determined using a benefit allocation method, for the period defined as “E” and the amount of “C”, and

“G” is the amount by which the present value of the imputed going concern special payments for the period defined as “E” exceeds the present value of the imputed going concern special payments for the period described in the definition of “A”.

9. If the plan is not a jointly sponsored pension plan and the administrator elects both Options 1 and 3, paragraphs 8 and 8.1 apply with the following modifications:

i. The period described in subparagraphs 8 i and 8.1 i is deemed for the purposes of this paragraph to be the period beginning on a day that is not more than 12 months after the valuation date of the solvency relief report and ending on a day not more than 10 years after that day.

ii. References in subparagraphs 8 ii and 8.1 ii to the period referred to in subparagraph 8 i or 8.1 i are deemed to be references to the period described in subparagraph i of this paragraph.

10. If the plan is a jointly sponsored pension plan and the administrator elects Option 3, paragraphs 8 and 8.1 apply with the following modifications:

i. The period described in subparagraphs 8 i and 8.1 i is deemed for the purposes of this paragraph to be the period beginning on a day that is not more than 12 months after the valuation date of the solvency relief report and ending on a day not more than 10 years after that day.

ii. References in subparagraphs 8 ii and 8.1 ii to the period referred to in subparagraph 8 i or 8.1 i are deemed to be references to the period described in subparagraph i of this paragraph.

iii. The period described in sub-subparagraph 8 iii A is deemed to end at the end of the period in which the new solvency deficiency is liquidated or at the end of a five-year period that begins on a day not more than 12 months after the valuation date of the subsequent report, whichever is later.

iv. The five-year period described in the definition of “A” in subparagraph 8.1 iii is deemed to be the period that begins on the valuation date of the subsequent report and ends at the end of a five-year period that begins on a day not more than 12 months after the valuation date of the subsequent report.

v. References to the period described in the definition of “A” contained in the definitions of “C” and “D” in subparagraph 8.1 iii and in the definition of “G” in the definition of “D” in subparagraph 8.1 iii are deemed to be references to the period that would be determined when subparagraph iv applies.

vi. References to the amount of “A” and to the amount of “C” in the definition of “F” in the definition of “D” in subparagraph 8.1 iii are deemed to be references to the amounts of “A” and “C” that would be determined when subparagraph iv applies.

11. Subject to paragraph 12, if the plan is a jointly sponsored pension plan, if the administrator elects Option 3 and if, after the day the solvency relief report is required to be filed, the administrator files an amendment to the plan to increase pension benefits or ancillary benefits, any increase in the going concern unfunded liability that results from the amendment must be liquidated, with interest at the going concern valuation interest rate or rates, by special payments determined under section 5 over a period of five years, beginning not later than 12 months after the valuation date of the report under section 3 or 14 in which the increase in the going concern unfunded liability is determined.

12. Paragraph 11 does not apply with respect to an increase in a going concern unfunded liability that results from an amendment or part of an amendment that does not take effect until after the day on which the remaining period during which the new solvency deficiency must be liquidated is equal to five years.  O. Reg. 239/09, s. 4; O. Reg. 322/09, s. 2 (1-4).

(6.1) The following applies for the purposes of the definition of “G” in the definition of “D” in subparagraph 8.1 iii:

1. For the purposes of paragraphs 2 and 3, an imputed going concern unfunded liability in respect of a solvency relief report for a plan for which a benefit allocation method is not used to set contribution rates for the plan is the amount by which “H” exceeds “J” where,

“H” is the present value, as of the valuation date of the plan’s solvency relief report, of the monthly contributions determined using the actuarial cost method adopted by the plan for a period of 15 years beginning on the valuation date of the plan’s solvency relief report, and

“J” is the present value of the normal cost determined using a benefit allocation method over the period described in the definition of “H”.

2. The imputed going concern special payments in respect of a plan that is not a jointly sponsored pension plan are the monthly contributions that would be required to amortize the imputed going concern unfunded liability over a period of 15 years, calculated using the going concern valuation interest rate or rates.

3. In the case of a plan that is a jointly sponsored pension plan,

i. the amount required to amortize the imputed going concern unfunded liability determined in the solvency relief report is determined as a level percentage of pensionable earnings, and

ii. the amount of the imputed going concern unfunded liability in the plan’s solvency relief report is determined under paragraph 1 as if the amounts of “H” and “J” were calculated based on the total projected pensionable earnings for the period of 15 years that begins on the valuation date of the solvency relief report.  O. Reg. 322/09, s. 2 (5).

(7) An administrator who makes an election must send a notice containing the following information to every person who is an eligible member or an eligible former member on the day the notice is sent and to every collective bargaining agent that represents eligible members on that day:

1. The name and provincial registration number of the plan.

2. The name of and the contact information for the administrator.

3. The valuation date of the solvency relief report.

4. A description of the option or options elected.

5. The transfer ratio of the plan as of the valuation date.

6. The estimated annual contributions that would have been required to fund the normal cost of the plan and all special payments if no election had been made and the estimated annual contributions that are required after the election.

7. An explanation of how the security of the pension benefits and ancillary benefits for eligible members and eligible former members might be affected as a result of the election.

8. If the administrator has elected Option 3 and the plan is not a jointly governed plan,

i. confirmation that the collective bargaining agent, if any, objected or chose not to object on behalf of eligible members represented by the collective bargaining agent on the valuation date of the solvency relief report, and

ii. confirmation that any objections to the election received by the administrator represented objections to the election from not more than one-third of the eligible members and eligible former members.  O. Reg. 239/09, s. 4; O. Reg. 322/09, s. 2 (6).

(7.1) The notice required under subsection (7) must be sent on or before the later of,

(a) the 60th day after the first day a special payment is required to be made in respect of the new solvency deficiency or the new going concern unfunded liability; and

(b) the 60th day after the solvency relief report is required to be filed.  O. Reg. 322/09, s. 2 (7).

(8) If an administrator of a plan elects Option 3, the administrator shall send a progress report containing the following information, not more than six months after the end of each fiscal year of the plan in which a report under section 3 or 14 is filed until the new solvency deficiency has been liquidated, to every person who is an eligible member or eligible former member on the day the progress report is sent and to every collective bargaining agent that represents eligible members on that day:

1. The name and provincial registration number of the plan.

2. The name of and the contact information for the administrator.

3. The valuation date of the solvency relief report and of the most recently filed report under section 3 or 14.

4. A description of the option or options elected.

5. The transfer ratio of the plan as of the valuation date of the solvency relief report.

6. The transfer ratio of the plan as of the valuation date of the most recently filed report under section 3 or 14 in which the transfer ratio was determined.

7. The estimated annual contributions required to fund the normal cost of the plan and all special payments set out in the report referred to in paragraph 6.

8. An explanation of how the security of the pension benefits and ancillary benefits for eligible members and eligible former members might be affected as a result of the election.  O. Reg. 239/09, s. 4.

(9) A progress report required under subsection (8) may be included in the written statement for the same fiscal year that is required to be sent to members under section 27 of the Act.  O. Reg. 239/09, s. 4.

5.7 (1) This section applies if an administrator elects or proposes to elect Option 3 under section 5.6 in respect of a plan that is not a jointly governed plan.  O. Reg. 239/09, s. 4.

(2) The administrator shall,

(a) send an information statement and a notice of objection form to every person,

(i) who is,

(A) an eligible member on the valuation date of the solvency relief report, and

(B) an eligible member or eligible former member on the day the information statement and notice of objection form are sent, and

(ii) who is not represented by a collective bargaining agent on the valuation date of the solvency relief report;

(b) send an information statement and a notice of objection form to every person who is an eligible former member on the valuation date of the solvency relief report and on the day the information statement and notice of objection form are sent;

(c) send an information statement to every person,

(i) who is,

(A) an eligible member on the valuation date of the solvency relief report, and

(B) an eligible member or eligible former member on the day the information statement is sent, and

(ii) who is represented by a collective bargaining agent on the valuation date of the solvency relief report;

(d) send an information statement and a notice of objection form to each collective bargaining agent that represented eligible members on the valuation date of the solvency relief report; and

(e) provide to the Superintendent a copy of the information statement and the notice of objection form at the time the administrator sends the statements and forms in accordance with clauses (a), (b), (c) or (d) and advise the Superintendent of when the last notice of objection form was sent.  O. Reg. 239/09, s. 4.

(3) An information statement sent to a person who is an eligible member or eligible former member must be sent to the person’s last known address and inform the recipient of the following:

1. The name and provincial registration number of the plan.

2. The name and status of the recipient as an eligible member or eligible former member on the valuation date of the solvency relief report.

3. The name of and the contact information for the administrator.

4. If the recipient is an eligible member on the valuation date of the solvency relief report, whether he or she was represented by a collective bargaining agent on that day.

5. That the administrator of the plan is seeking the consent of eligible members and eligible former members to extend the period of time during which the new solvency deficiency must be liquidated from five years to a period not exceeding 10 years.

6. The amount of the solvency deficiency for which the amortization period would be extended.

7. The transfer ratio of the plan as of the valuation date.

8. The estimated annual contributions that would be required to fund the normal cost of the plan and all special payments if the five-year period is not extended and the estimated annual contributions if the payment period is extended.

9. An explanation of how the security of the pension benefits and ancillary benefits for eligible members and eligible former members might be affected as a result of the election.

10. If the recipient was an eligible member on the valuation date of the solvency relief report and was represented by a collective bargaining agent on that day, a statement that the collective bargaining agent will consent or object to the extension on behalf of the eligible members represented by the collective bargaining agent on that day.

11. If the recipient was an eligible member on the valuation date of the solvency relief report and was not represented by a collective bargaining agent on that day, or was an eligible former member on that day,

i. that the person may object to the extension by completing and submitting a notice of objection, in the form provided, and

ii. the last day on which the administrator will accept receipt of notices of objection.

12. That if the number of notices of objection received by the administrator confirms that not more than one-third of the persons who were eligible members or eligible former members on the valuation date of the solvency relief report, and when the information statement was sent, object to the extension, the extension of the five-year period will proceed.  O. Reg. 239/09, s. 4.

(4) An information statement sent to a collective bargaining agent must contain:

1. The information listed in paragraphs 1, 3, 5, 6, 7, 8, 9 and 12 of subsection (3).

2. A statement that the collective bargaining agent may object to the extension on behalf of the persons who are currently eligible members or eligible former members, were eligible members on the valuation date of the solvency relief report and were represented by the collective bargaining agent on that day, by submitting a notice of objection in the form provided.

3. The number of persons who,

i. were eligible members on the valuation date of the solvency relief report and represented by the collective bargaining agent on the valuation date, and

ii. were still eligible members or were eligible former members when the administrator sent the information statement to them.

4. The last day on which the administrator will accept receipt of notices of objection.  O. Reg. 239/09, s. 4.

(5) A notice of objection must include the following:

1. The name and provincial registration number of the plan.

2. The name of the administrator.

3. The address to which the notice of objection form is to be sent.

4. If the notice of objection is for use by a collective bargaining agent, the number of persons represented by the collective bargaining agent in submitting the objection who were eligible members on the valuation date of the solvency relief report and were either eligible members or eligible former members when the information statement was sent to them by the administrator.

5. A statement objecting to the extension of the five-year period during which the new solvency deficiency must be liquidated to a period not exceeding 10 years.

6. The date not earlier than 45 days after the information statement is mailed by the administrator that is the final day the administrator will accept receipt of notices of objection.  O. Reg. 239/09, s. 4.

(6) Nothing related to the notice of objection or the process for objecting shall enable the administrator to identify an eligible member or eligible former member who submits a notice of objection.  O. Reg. 239/09, s. 4.

(7) The administrator shall retain all notices of objection it receives until the new solvency deficiency is liquidated and shall provide copies of the notices to the Superintendent upon request.  O. Reg. 239/09, s. 4.

Payments — Multi-Employer Plans and Defined Benefit/Defined Contribution Plans

6. (1) A multi-employer pension plan established pursuant to a collective agreement or trust agreement or a pension plan that provides defined benefits where the obligation of an employer to contribute to the pension plan is limited to a fixed amount set out in a collective agreement shall include a provision for the funding of pension benefits and any other benefits provided under the plan that sets out the obligation of an employer or any person required to make contributions on behalf of the employer to contribute in respect of the plan.  R.R.O. 1990, Reg. 909, s. 6 (1).

(2) An employer or any person required to make contributions on behalf of an employer with respect to a pension plan referred to in subsection (1) shall make payments to the pension fund or the insurance company, as applicable, that are not less than,

(a) any contributions received from employees including money withheld from an employee, whether by payroll deduction or otherwise as the employee’s contribution to the pension plan; and

(b) such amounts set out in the applicable collective agreement as are required to be paid by the employer or the person required to make contributions on behalf of the employer.  R.R.O. 1990, Reg. 909, s. 6 (2).

(3) The payments referred to in subsection (2) shall be made within the following time limits:

1. All sums received by the employer from an employee or deducted from an employee’s pay as the employee’s contribution to the pension plan, within thirty days after the month in which the sum was received or deducted.

2. All amounts, other than those referred to in paragraph 1, within the time limit specified by the applicable collective agreement but, in any event, within thirty days after the month in which the period of employment giving rise to such payments occurred.  R.R.O. 1990, Reg. 909, s. 6 (3).

(4) In the case of a pension plan referred to in subsection (1), the actuary shall, as part of the report required under subsection 3 (1) or section 13 or 14,

(a) perform such tests as will demonstrate the sufficiency of the contributions required by the collective agreement or agreements to provide for the benefits set out in the plan without consideration of any provision for reduction of benefits set out in the plan; or

(b) where the contributions are not sufficient to provide the benefits under the plan, propose options available to the administrator of the plan that will have the result that the required contributions will be sufficient to provide the benefits under the plan.  R.R.O. 1990, Reg. 909, s. 6 (4).

(4.1) For the purposes of clause (4) (a), the sufficiency of the required contributions is to be determined on the basis of a going concern valuation and a solvency valuation.  O. Reg. 489/07, s. 1 (1).

(4.2) For the purposes of clause (4) (a), the required contributions are sufficient if, for each year of the period covered by the report, they are not less than the sum of the following amounts, determined using a benefit allocation method:

1. The normal cost of the plan.

2. The special payments set out in a previous report that remain to be paid with respect to any going concern unfunded liability.

3. The special payments set out in a previous report that remain to be paid with respect to any solvency deficiency.

4. The special payments to be paid with respect to any going concern unfunded liability that is determined in the report.

5. The special payments to be paid with respect to any solvency deficiency that is determined in the report.  O. Reg. 489/07, s. 1 (1).

(5) Where an actuary proposes options in accordance with clause (4) (b),

(a) the actuary shall submit a copy of the report containing the proposed options to the administrator;

(b) the actuary shall file a copy of the report within thirty days after submitting the report to the administrator and within the time period referred to in subsection 14 (10);

(c) the administrator shall take such action as will result in the plan meeting the funding requirements of this section within ninety days after the date on which the actuary submitted the report to the administrator; and

(d) the administrator shall advise the Superintendent of the action taken in order for the plan to meet the funding requirements of this section within 120 days after the date the actuary submitted the report to the administrator and shall file all documents relevant to the action taken.  R.R.O. 1990, Reg. 909, s. 6 (5); O. Reg. 712/92, s. 5; O. Reg. 307/98, s. 3; O. Reg. 489/07, s. 1 (2).

(6) Subsections (1) to (5) do not apply to a multi-employer pension plan that is a jointly sponsored pension plan.  O. Reg. 116/06, s. 8.

Payments — Specified Ontario Multi-Employer Pension Plans

6.0.1 (1) A multi-employer pension plan is a specified Ontario multi-employer pension plan,

(a) if the administrator files an election with the Superintendent in accordance with section 6.0.3 declaring the plan to be a specified Ontario multi-employer pension plan; and

(b) if all of the eligibility criteria described in section 6.0.2 are satisfied when the election is filed.  O. Reg. 489/07, s. 2.

(2) A plan ceases to be a specified Ontario multi-employer pension plan on the earliest of the following dates:

1. The date on which the first report is filed under section 3 or 14 in respect of the plan for a valuation date after August 31, 2012.

2. The date, if any, on which the first report is filed under section 3 or 14 in respect of the plan for a valuation date after the administrator rescinds the election in accordance with section 6.0.3.

3. The date, if any, on which the plan is amended so that one or more of the eligibility criteria described in paragraph 4, 5, 6 or 7 of subsection 6.0.2 (1) are no longer satisfied.  O. Reg. 489/07, s. 2; O. Reg. 447/09, s. 1.

6.0.2 (1) The following are the eligibility criteria for a multi-employer pension plan to become a specified Ontario multi-employer pension plan:

1. At the end of the previous year, no more than 95 per cent of the members of the plan were employed by one employer.

2. During the previous year at least 15 employers made contributions to the plan or at least 10 per cent of the members of the plan were employed by two or more employers.

3. All or substantially all of the employers who make contributions to the plan are persons who are not exempt from tax under Part I of the Income Tax Act (Canada).

4. All employers make contributions to the plan pursuant to one or more collective agreements.

5. The employers’ contributions to the plan are limited to a fixed amount set out in one or more collective agreements.

6. Under the plan, the administrator is authorized to determine the benefits that are to be provided under the plan, whether or not a collective agreement imposes restrictions on the exercise of that authority.

7. Nothing in the documents that create and support the plan prevents the administrator from reducing the amount of or the commuted value of a pension benefit, a pension, a deferred pension or an ancillary benefit in the circumstances described in subsection 14 (2) of the Act.  O. Reg. 489/07, s. 2.

(2) For the purposes of this section, a group of employers that are affiliates within the meaning of the Business Corporations Act is deemed to be one employer.  O. Reg. 489/07, s. 2.

(3) In this section,

“previous year” means, in relation to a pension plan, the fiscal year of the plan before the year in which the election is filed declaring the plan to be specified Ontario multi-employer pension plan.  O. Reg. 489/07, s. 2.

6.0.3 (1) The administrator of a multi-employer pension plan that satisfies the criteria described in section 6.0.2 may file an election with the Superintendent declaring the plan to be a specified Ontario multi-employer pension plan.  O. Reg. 489/07, s. 2.

(2) The election may be filed at any time on or after September 1, 2007 and before September 1, 2012.  O. Reg. 489/07, s. 2; O. Reg. 447/09, s. 2.

(3) The election must be made in writing and only one election may be made in respect of a plan.  O. Reg. 489/07, s. 2.

(4) The administrator may rescind the election and must do so by filing written notice of the rescission with the Superintendent.  O. Reg. 489/07, s. 2.

(5) A rescission cannot be withdrawn once it has been filed.  O. Reg. 489/07, s. 2.

6.0.4 (1) This section applies to each report filed under section 3, 13 or 14 for a specified Ontario multi-employer pension plan,

(a) if the report is filed on or after the day on which the administrator files the election under section 6.0.3; and

(b) if the valuation date of the report falls before September 1, 2012.  O. Reg. 489/07, s. 2; O. Reg. 447/09, s. 3.

(2) Subsections 6 (4.1) and (4.2) do not apply with respect to a report to which this section applies.  O. Reg. 489/07, s. 2.

(3) For the purposes of clause 6 (4) (a), the required contributions to the plan are sufficient if, for each year of the period covered by the report, they are not less than the sum of the following amounts determined using a benefit allocation method:

1. The normal cost of the plan.

2. The special payments set out in a previous report that remain to be paid with respect to any going concern unfunded liability.

3. The special payments to be paid with respect to any going concern unfunded liability that is determined in the report.  O. Reg. 489/07, s. 2.

(4) If a report filed under section 3, 13 or 14 in respect of the plan discloses that there is a going concern unfunded liability, the liability shall be liquidated, with interest at the going concern valuation interest rate, by equal monthly instalments over a period of 12 years beginning on the valuation date of the report.  O. Reg. 489/07, s. 2.

(5) Subsection (6) applies if, after a plan amendment referred to in that subsection, the transfer ratio of the plan is less than 0.8 or the ratio of the market value of the plan assets to the going concern liabilities is less than 0.9.  O. Reg. 489/07, s. 2.

(6) If the plan is amended to increase pension benefits or ancillary benefits and if either of the conditions described in subsection (5) exist, any increase in the going concern unfunded liability as a result of the amendment shall be liquidated, with interest at the going concern valuation interest rate, by equal monthly instalments over a period of eight years beginning on the valuation date of the report in which the increase in the going concern unfunded liability was determined.  O. Reg. 489/07, s. 2.

(7) Within 60 days after filing a report to which this section applies, the administrator shall give written notice to each member and former member of the plan that an election has been made under section 6.0.3.  O. Reg. 489/07, s. 2.

(8) The written notice shall contain the following information:

1. The name and provincial registration number of the plan.

2. The name and contact information for the administrator.

3. The transfer ratio of the plan; and if the plan is amended to increase pension benefits or ancillary benefits, the transfer ratio both before and after the amendment, effective on the valuation date of the report.

4. An explanation of how the security of pension benefits and ancillary benefits for members and former members might be affected as a result of the election filed under section 6.0.3.  O. Reg. 489/07, s. 2.

(9) Within 60 days after filing a report to which this section applies, the administrator shall file a copy of the notice required by subsection (7) with the Superintendent and shall give a copy to every employer who makes contributions to the plan and to every bargaining agent who represents members of the plan.  O. Reg. 489/07, s. 2.

(10) The administrator shall also give a copy of the notice required by subsection (7) to each person who will be eligible or is required to become a member of the plan after the filing of a report to which this section applies and before the plan ceases to be a specified Ontario multi-employer pension plan, and the notice must be given to him or her together with the information described in subsection 25 (1) of the Act.  O. Reg. 489/07, s. 2.

Notices and Summaries re Contributions

6.1 Notice under subsection 56 (2) of the Act that a contribution was not paid when it became due must be given to the Superintendent within 60 days after the day on which the required contribution became due.  O. Reg. 144/00, s. 6.

6.2 (1) A summary under subsection 56.1 (1) of the Act of the contributions required to be made in respect of a pension plan for a fiscal year must be given to the persons specified by that subsection,

(a) within 90 days after the plan is established, for the first fiscal year; and

(b) within 60 days after the beginning of the second fiscal year and of each subsequent fiscal year of the plan.  O. Reg. 144/00, s. 6.

(2) If there is a change in the summary of contributions, the administrator shall give the persons specified by subsection 56.1 (1) of the Act a revised summary within 60 days after the administrator becomes aware of the change.  O. Reg. 144/00, s. 6.

(3) The summary or revised summary must be in a form approved by the Superintendent.  O. Reg. 144/00, s. 6.

(4) Notice under subsection 56.1 (2) of the Act that a person was not given the summary of contributions in accordance with subsection 56.1 (1) of the Act must be given to the Superintendent within 30 days after the day on which the summary was required to be given.  O. Reg. 144/00, s. 6.

(5) Notice under subsection 56.1 (3) of the Act that a contribution was not paid when it became due must be given to the Superintendent within 60 days after the day on which the contribution became due.  O. Reg. 144/00, s. 6.

(6) Spent:  O. Reg. 144/00, s. 6.

Utilization of Actuarial Gain

7. (1) If a report discloses an actuarial gain under the plan, the actuarial gain shall be applied firstly to reduce any going concern unfunded liability.  O. Reg. 116/06, s. 9 (1).

(2) The going concern unfunded liability that is reduced under subsection (1) may be reamortized over the remainder of the original amortization period for the liability or over a shorter period.  O. Reg. 712/92, s. 6.

(3) In any year for which no special payments are required to be made for a pension plan under section 5, an actuarial gain may be applied to reduce contributions for normal costs required to be made by the employer, by a person or entity required to make contributions on behalf of the employer, by the members of the pension plan or by any of them.  O. Reg. 116/06, s. 9 (2).

(3.1) Subsection (3) does not apply to plans that provide defined benefits, other than designated plans, for a fiscal year of the plan ending after June 29, 2010 and before January 1, 2013 to reduce contributions for the normal cost required to be made by an employer, by a person or entity required to make contributions on behalf of the employer, by members or by any of them for the year unless,

(a) the administrator files with the Superintendent within the first 90 days of the fiscal year an actuarial cost certificate for the fiscal year; and

(b) the amount applied to reduce the contributions for the year does not exceed the maximum amount determined under subsection (3.2).  O. Reg. 239/09, s. 5.

(3.2) For the purposes of clause (3.1) (b), the maximum amount of any actuarial gain identified in the last report filed under section 3 or 14 that may be applied to reduce contributions for the normal cost for a fiscal year of the plan ending after June 29, 2010 and before January 1, 2013 is the lesser of,

(a) the amount, if any, by which the going concern assets reported in the actuarial cost certificate filed for the fiscal year exceed the sum of the estimated going concern liabilities and the prior year credit balance as reported in the certificate; and

(b) the amount, if any, by which the solvency assets reported in the certificate exceed the sum of the estimated solvency liabilities and the prior year credit balance as reported in the certificate.  O. Reg. 239/09, s. 5.

(4) In any year for which no special payments are required to be made for a pension plan under section 5, any actuarial gain not applied under subsection (1) or (3) may be applied to pay the annual assessment to the Guarantee Fund otherwise required by subsection 37 (1) to be paid by the employer.  O. Reg. 712/92, s. 6.

7.1 (1) An actuarial cost certificate must be prepared by an actuary using methods and actuarial assumptions that are consistent with accepted actuarial practice and with the requirements of the Act and this Regulation, based on a valuation date of the first day of the fiscal year of the plan to which the certificate relates.  O. Reg. 239/09, s. 6.

(2) An actuarial cost certificate must contain the following:

1. An estimate of the normal cost of the plan for the fiscal year of the plan commencing on the valuation date of the certificate.

2. An estimate of the total employee contributions to the plan to be made during that fiscal year.

3. The going concern assets, estimated going concern liabilities, solvency assets and estimated solvency liabilities, each determined as of the valuation date of the certificate.

4. The prior year credit balance.

5. The estimated transfer ratio, calculated using the solvency assets and estimated solvency liabilities determined in the certificate.  O. Reg. 239/09, s. 6.

8. (1) No payment may be made from surplus out of a pension plan that is being wound up in whole or in part unless,

(a) the payment is to be made to or for the benefit of members, former members and other persons, other than an employer, who are entitled to payments under the pension plan on the date of wind up; or

(b) the payment is to be made to an employer with the written agreement of,

(i) the employer,

(ii) the collective bargaining agent of the members of the plan or, if there is no collective bargaining agent, at least two-thirds of the members of the plan, and

(iii) such number of former members and other persons who are entitled to payments under the pension plan on the date of the wind up as the Superintendent considers appropriate in the circumstances.  O. Reg. 743/91, s. 1; O. Reg. 307/98, s. 4 (1).

(2) Despite subsection (1), a payment may be made from surplus out of a pension plan that is being wound up in whole or in part if,

(a) the payment would have been permitted by this section as it read immediately before the 18th day of December, 1991; and

(b) notice of proposal to wind up the pension plan was given to the Superintendent of Pensions before December 18, 1991.  O. Reg. 743/91, s. 1; O. Reg. 307/98, s. 4 (2).

(3) Subsections (1) and (2) do not apply after December 31, 2011.  O. Reg. 509/06, s. 1; O. Reg. 447/09, s. 4.

9. If an amendment to a pension plan with defined benefits converts the defined benefits to defined contribution benefits, the employer may offset the employer’s contributions for normal costs against the amount of surplus, if any, in the pension fund after the conversion.  O. Reg. 665/94, s. 1.

10. (1) The criteria described in this section must be met before the Superintendent may consent to the payment of money that is surplus out of a continuing pension plan to the employer.  R.R.O. 1990, Reg. 909, s. 10 (1); O. Reg. 307/98, s. 5 (1).

(2) All persons who are entitled to receive benefits under the pension plan and all members must consent to the terms upon which the surplus is to be paid out of the plan.  R.R.O. 1990, Reg. 909, s. 10 (2).

(3) All persons in respect of whom the administrator has purchased a pension, deferred pension or ancillary benefit, other than those persons who requested that the administrator do so, must consent to the terms upon which the surplus is to be paid out of the pension plan.  R.R.O. 1990, Reg. 909, s. 10 (3).

(4) The pension plan must provide that a former member’s contributions to the plan and the interest on the contributions shall not be used to provide more than 50 per cent of the commuted value of a pension or deferred pension in respect of contributory benefits to which the member is entitled under the plan on termination of membership or employment.  R.R.O. 1990, Reg. 909, s. 10 (4).

(5) The pension plan must provide that a former member who is entitled to a pension or deferred pension on termination of employment or membership is entitled to payment from the pension fund of a lump sum payment equal to the amount by which the former member’s contributions under the plan and the interest on the contributions exceed one-half of the commuted value of the former member’s pension or deferred pension in respect of the contributory benefits.  R.R.O. 1990, Reg. 909, s. 10 (5).

(6), (7) Revoked:  O. Reg. 665/94, s. 2.

(8) If surplus is allocated to a person to increase the person’s benefits, the person must be offered the choice of receiving the surplus in the form of inflation adjustments to the existing benefits.  R.R.O. 1990, Reg. 909, s. 10 (8).

(9) The inflation adjustments that are provided must be made,

(a) by indexing the benefits in accordance with a formula based upon increases in the annual Consumer Price Index;

(b) by providing an annual percentage increase in the amount of the benefits or an annual increase of a specified dollar amount; or

(c) by a combination of the methods described in clauses (a) and (b).  R.R.O. 1990, Reg. 909, s. 10 (9).

(10) For the purpose of subsection (9), the employer may select the method for providing the inflation adjustments.  R.R.O. 1990, Reg. 909, s. 10 (10).

(11) The pension plan must state who is entitled, or must provide a mechanism for determining who is entitled, to any surplus in the plan after the payment of surplus to which the Superintendent is being asked to consent.  R.R.O. 1990, Reg. 909, s. 10 (11); O. Reg. 307/98, s. 5 (2).

(12) Subsection (11) applies with respect to applications under section 78 of the Act made after the 31st day of October, 1990.  R.R.O. 1990, Reg. 909, s. 10 (12).

10.1 (1) This section applies with respect to a payment from surplus out of a pension plan to the employer,

(a) if a court has appointed an individual to represent persons described in subclause 8 (1) (b) (iii), persons described in subsection 10 (2) (but not members) or persons described in subsection 10 (3); and

(b) if the Superintendent is satisfied, on the basis of such information and evidence as he or she may require from the employer or administrator, that,

(i) in the case of a proposed payment to the employer from surplus out of a pension plan that is being wound up in whole or in part, the employer has obtained the written agreement referred to in clause 8 (1) (b) of 90 per cent of the former members who are in receipt of a pension payable from the pension fund on the date of the wind up, or

(ii) in the case of a proposed payment of money that is surplus out of a continuing pension plan to the employer, the employer has obtained the consent of 90 per cent of the former members who are in receipt of a pension payable from the pension fund, whose consent is required by subsection 10 (2).  O. Reg. 286/97, s. 1; O. Reg. 307/98, s. 6.

(2) The court-appointed representative is authorized to give the written agreement referred to in clause 8 (1) (b) on behalf of the former members in receipt of a pension payable from the pension fund, who he or she represents.  However, the representative is not authorized to give written agreement on behalf of former members who have agreed or have objected to the payment from surplus.  O. Reg. 286/97, s. 1.

(3) The court-appointed representative is authorized to give the consent required by subsection 10 (2) on behalf of the former members in receipt of a pension payable from the pension fund, who he or she represents.  However, the representative is not authorized to consent on behalf of former members who have consented or have objected to the terms upon which the surplus is to be paid out of the plan.  O. Reg. 286/97, s. 1.

Funding of Escalated Adjustments

11. (1) The estimated future costs of the escalated adjustments of a pension plan that provides for escalated adjustments may be excluded from the funding requirements set out in sections 4, 5 and 6.  R.R.O. 1990, Reg. 909, s. 11 (1).

(2) The amount of a payment of an escalated adjustment that is made from the pension fund, to the extent that it has not been prefunded, shall be deemed to be part of the normal cost.  R.R.O. 1990, Reg. 909, s. 11 (2).

(3) For the purposes of a report required by section 13 or 14, factors attributable to an escalated adjustment may be excluded in determining the existence or amount of any going concern unfunded liability.  R.R.O. 1990, Reg. 909, s. 11 (3); O. Reg. 712/92, s. 7.

(4) Revoked:  O. Reg. 116/06, s. 10.

Contribution Requirements in Year of Report

12. (1) This section applies in respect of a pension fund for a pension plan other than a jointly sponsored pension plan when a report required under section 3 or 14 is filed with the Superintendent or a report prepared under section 4 or 13 is submitted to the Superintendent.  O. Reg. 116/06, s. 11.

(2) Within 60 days after the report is filed or submitted, the employer shall pay into the pension fund,

(a) all amounts due under the report on the date the report is filed or submitted; and

(b) interest on those amounts calculated at the going concern interest rate or the solvency valuation interest rate, whichever applies in the circumstances.  O. Reg. 144/00, s. 7.

(3) The actuary who prepares the report shall calculate the amount of interest that is payable under clause (2) (b).  O. Reg. 144/00, s. 7.

Reports

13. (1) Within 90 days after the date of establishment of a plan, the administrator shall submit a report on the basis of a going concern valuation that sets out,

(a) the normal cost, in the first year during which the plan is registered and the rule for computing the normal cost in subsequent years up to the date of the next report;

(b) an estimate of the normal cost, in the subsequent years up to the date of the next report;

(c) where applicable, the estimated aggregate employee contributions to the pension plan during each year up to the date of the succeeding report;

(d) the past service unfunded actuarial liability, if any, under the pension plan as at the date on which the plan qualified for registration;

(e) the special payments required to liquidate the past service unfunded actuarial liability in accordance with section 5;

(f) any other going concern unfunded liability;

(g) the special payments required to liquidate any going concern unfunded liability referred to in clause (f);

(h), (i) Revoked:  O. Reg. 712/92, s. 9 (3).

(j) where the plan provides for an escalated adjustment, whether and to what extent,

(i) liability for the future cost of the adjustment has been included in the determination of any going concern unfunded actuarial liability, or

(ii) the cost for the escalated adjustment is included in the normal cost.  R.R.O. 1990, Reg. 909, s. 13 (1); O. Reg. 712/92, s. 9 (1-3); O. Reg. 386/04, s. 3.

(1.1) The report shall also set out, on the basis of a solvency valuation,

(a) whether there is a solvency deficiency;

(b) if there is a solvency deficiency, the amount of the solvency deficiency and the special payments required to liquidate it in accordance with section 5;

(c) whether the transfer ratio is less than one; and

(d) if the transfer ratio is less than one, the transfer ratio.  O. Reg. 712/92, s. 9 (4); O. Reg. 144/00, s. 8 (1).

(1.2) The report for a designated plan shall also contain a maximum funding valuation.  O. Reg. 73/95, s. 3.

(2) The report referred to in subsection (1) shall be certified by a person authorized by section 15.  R.R.O. 1990, Reg. 909, s. 13 (2).

(2.1) A report prepared under subsection (1) in which a benefit allocation method was not used to set contribution rates must,

(a) set out the contribution rate or rates that are required under the pension plan;

(b) identify the normal cost or the equivalent of normal cost determined using the actuarial cost method adopted by the pension plan; and

(c) include the information required under subsection (1) determined using a benefit allocation method and the information required under subsection (1.1).  O. Reg. 116/06, s. 12.

(3) A report referred to in subsection (1) may certify the adequacy of the premiums necessary to provide for the payment of all benefits under an insured pension plan that is funded by level premiums extending not beyond the retirement age for each individual member, in lieu of the matters required to be certified under that subsection.  R.R.O. 1990, Reg. 909, s. 13 (3).

(4) This section does not apply with respect to a pension plan where all the pension benefits provided under the plan are defined contribution benefits.  O. Reg. 144/00, s. 8 (2).

14. (0.1) This section does not apply with respect to a pension plan where all the pension benefits provided under the plan are defined contribution benefits.  O. Reg. 144/00, s. 9 (1).

(1) Subject to subsections (2) to (6.1), the administrator of a pension plan shall cause the plan to be reviewed and a report prepared and certified by a person authorized under section 15 at regular intervals, with the first valuation date not more than three years after the date of the establishment of the plan and with valuation dates at intervals of not more than three years thereafter.  O. Reg. 712/92, s. 10; O. Reg. 73/95, s. 4 (1).

(2) For the purposes of subsection (3), a report indicates solvency concerns where,

(a) the ratio of the solvency assets to the solvency liabilities is less than 0.8;

(b) the solvency liabilities exceed the solvency assets by more than $5,000,000 and the ratio of the solvency assets to the solvency liabilities is less than 0.9; or

(c) the employer has elected under subsection 5 (18) to exclude plant closure benefits or permanent layoff benefits and this election has not been rescinded.  O. Reg. 712/92, s. 10.

(3) Where a report filed under this section or submitted under section 4 indicates solvency concerns, the next report under this section in respect of the plan shall be prepared and certified with a valuation date within one year rather than the three year interval set out in subsection (1).  O. Reg. 712/92, s. 10.

(4) Subsections (2) and (3) do not apply to a plan established for less than three years except where the plan is a successor plan as described in subsection 80 (2) or section 81 of the Act.  O. Reg. 712/92, s. 10.

(4.1) Subsections (2) and (3) do not apply to a pension plan that is a designated plan.  O. Reg. 73/95, s. 4 (2).

(5) Where an election has been made under subsection 5.1 (1) or (2) with respect to a plan and the employer files an initial special report within the time set out in subsection 5.3 (1), the administrator of the plan shall cause the plan to be reviewed and a report prepared and certified by an actuary with a valuation date not more than one year after the valuation date of the initial special report and thereafter with valuation dates at intervals of not more than one year.  O. Reg. 712/92, s. 10.

(6) Where an election has been made under subsection 5.1 (1) or (2) with respect to a plan and the employer does not file an initial special report within the time set out in subsection 5.3 (1), the administrator of the plan shall cause the plan to be reviewed and a report prepared and certified by an actuary with a valuation date not more than one year after the date on which the election is made under subsection 5.1 (1) or (2) and with valuation dates at intervals of not more than one year thereafter.  O. Reg. 712/92, s. 10.

(6.1) Where a pension plan ceases to be a designated plan, the administrator of the plan shall cause the plan to be reviewed and a report prepared and certified by an actuary with a valuation date no later than the end of the fiscal year of the plan in which the plan ceased to be a designated plan.  O. Reg. 73/95, s. 4 (2).

(7) Each report under this section shall set out, on the basis of a going concern valuation,

(a) the normal cost in the year following the valuation date of the report and the rule for computing the cost in subsequent years up to the valuation date of the next report;

(b) an estimate of the normal cost in the subsequent years up to the valuation date of the next report;

(c) the estimated aggregate employee contributions to the pension plan during the year following the valuation date of the report and the subsequent years up to the valuation date of the next report;

(c.1) the special payments remaining to be paid after the valuation date with respect to the going concern unfunded liability determined in any of the previously filed reports;

(c.2) if there is a going concern unfunded liability in the report, the amount of the going concern unfunded liability and the special payments required to liquidate it in accordance with section 5;

(c.3) despite clause (c.2), in the case of a specified Ontario multi-employer pension plan, if there is a going concern unfunded liability in the report, the amount of the going concern unfunded liability and the special payments required to liquidate it in accordance with section 6.0.4;

(d) the present value of future special payments remaining to be paid after the valuation date and established in certificates appended to previous reports;

(e) where the plan provides for an escalated adjustment, whether and to what extent,

(i) liability for the future cost of the adjustment has been included in the determination of any going concern unfunded liability, or

(ii) the cost for the escalated adjustment is included in the normal cost; and

(f) the actuarial gain or actuarial loss in the plan and,

(i) where there is an actuarial loss, the special payments that will liquidate any increase in a going concern unfunded liability resulting from the loss over a term not exceeding fifteen years, and

(ii) where there is an actuarial gain, any intended application of the gain in accordance with section 7.  O. Reg. 712/92, s. 10; O. Reg. 570/06, s. 4 (1); O. Reg. 489/07, s. 3.

(8) Each report under this section shall also set out, on the basis of a solvency valuation,

(a) whether there is a solvency deficiency;

(b) the special payments remaining to be paid after the valuation date with respect to the solvency deficiency determined in any of the previously filed reports;

(b.1) if there is a solvency deficiency in the report, the amount of the solvency deficiency and the special payments required to liquidate it in accordance with section 5;

(c) the liabilities referred to in clauses (a) to (h) of the definition of “solvency liabilities” that are being excluded from the calculation of the solvency liabilities;

(d) whether there is a Guarantee Fund assessment required to be paid under section 37;

(e) if a Guarantee Fund assessment is required to be paid, the PBGF assessment base;

(e.1) if a Guarantee Fund assessment is required to be paid and if the PBGF assessment base is greater than zero, the PBGF liabilities and, if applicable, the amount described in subclause 37 (4) (a) (ii);

(f) whether the transfer ratio is less than one; and

(g) if the transfer ratio is less than one, the transfer ratio.  O. Reg. 712/92, s. 10; O. Reg. 144/00, s. 9 (2, 3); O. Reg. 489/07, s. 4.

(8.1) A report prepared under subsection (1) in which a benefit allocation method was not used to set contribution rates must,

(a) if the plan is not a jointly sponsored pension plan, set out the contribution rate or rates that are required under the pension plan;

(a.1) if the plan is a jointly sponsored pension plan, set out the required contribution rate or rates that are determined in accordance with paragraph 6 of subsection 4 (2.3) and, if applicable, the required contribution rates that are determined in accordance with paragraph 7 or 10 of that subsection;

(b) identify the normal cost or the equivalent of normal cost determined using the actuarial cost method adopted by the pension plan; and

(c) include the information required under subsection (7) determined using a benefit allocation method and the information required under subsection (8).  O. Reg. 116/06, s. 13; O. Reg. 570/06, s. 4 (2).

(9) Each report under this section shall also set out the prior year credit balance on the valuation date of the report.  O. Reg. 712/92, s. 10.

(9.1) Each report under this section for a designated plan shall contain a maximum funding valuation.  O. Reg. 73/95, s. 4 (2).

(10) The administrator shall file each report required under this section within nine months of the valuation date.  O. Reg. 712/92, s. 10.

(11) Despite subsection (10), the administrator may file the first report for which the valuation date is on or after September 30, 2008 and before November 1, 2008 up to 10 months after the valuation date.  O. Reg. 239/09, s. 7.

14.1 The administrator of a pension plan that is a designated plan on February 23, 1995 shall, no later than July 1, 1995, file a copy of the most recent report containing a maximum funding valuation filed with the Minister of National Revenue for the plan.  O. Reg. 73/95, s. 5.

15. (1) The reports and certificates required under section 70 of the Act and under subsection 3 (1) and sections 13 and 14 must be prepared by an actuary.  O. Reg. 144/00, s. 10 (1).

(2) Despite subsection (1), reports and certificates in respect of,

(a) a pension plan where all pension benefits are defined contribution benefits;

(b) a fully insured pension plan, established prior to the 1st day of January, 1987 underwritten by a contract or contracts with an insurance company and that does not require any contributions to be made by employees; or

(c) a pension plan underwritten by a contract or contracts issued under the Government Annuities Act (Canada),

may be made by an accountant or a person authorized by an insurance company, a trust corporation or by the Annuities Branch of the Department of Labour of the Government of Canada, responsible for administering the pension plan or pension fund.  R.R.O. 1990, Reg. 909, s. 15 (2); O. Reg. 144/00, s. 10 (2).

16. (1) An actuary preparing a report under section 70 of the Act or under section 3, 5.3, 13 or 14 shall use methods and actuarial assumptions that are consistent with accepted actuarial practice and with the requirements of the Act and this Regulation.  O. Reg. 144/00, s. 11.

(2) An actuary preparing a report under section 4 shall use his or her best effort to meet the standards set out in subsection (1).  O. Reg. 712/92, s. 11.

(3) The person preparing a report referred to in subsection (1) or (2) shall certify that it meets the requirements of subsection (1) or (2), as the case may be.  O. Reg. 712/92, s. 11.

(4) The person preparing a report referred to in subsection (2) shall disclose in the report any respect in which the report does not meet the standards set out in subsection (1).  O. Reg. 712/92, s. 11.

(4.1) A person preparing a report under subsection (1) or (2) shall use actuarial cost methods and assumptions,

(a) that include a benefit allocation method or a cost allocation method; and

(b) that are consistent with section 3000 of the Canadian Institute of Actuaries Standards of Practice, available to the public from the Canadian Institute of Actuaries at Suite 800, 150 Metcalfe Street, Ottawa, Ontario K2P 1P1 or electronically on its website.  O. Reg. 116/09, s. 2.

(5) A person preparing a report under section 3, 13 or 14 that has a valuation date after December 11, 2008 and before April 1, 2009 may calculate the solvency liability for a member, who is assumed to exercise his or her entitlement under subsection 73 (2) of the Act on the wind-up of the plan, using methods and assumptions consistent with section 3800 of the Canadian Institute of Actuaries Standards of Practice, effective April 1, 2009, which is available to the public from the Canadian Institute of Actuaries at Suite 800, 150 Metcalfe Street, Ottawa, Ontario K2P 1P1 or electronically on its website.  O. Reg. 239/09, s. 8.

16.1 (1) Beginning on July 1, 2000, a report filed under section 3 or 14 or submitted under section 4 or 13 must be accompanied by an actuarial information summary.  O. Reg. 144/00, s. 12.

(2) The actuarial information summary must be signed by the actuary who signs the report.  O. Reg. 144/00, s. 12.

(3) The actuarial information summary must be prepared in a form approved by the Superintendent.  O. Reg. 144/00, s. 12.

16.2 If an agent of the administrator of a pension plan is responsible for receiving contributions under the plan, the administrator shall give the agent a copy of every report submitted under section 13 or filed under section 14.  O. Reg. 144/00, s. 12.

Valuation

17. (1) To determine the existence of a solvency deficiency for the purposes of a report under section 3, 4, 13 or 14, a valuation shall be performed by the person preparing the report to determine the solvency liabilities of the plan and the solvency assets of the plan.  R.R.O. 1990, Reg. 909, s. 17 (1); O. Reg. 712/92, s. 12.

(2) In determining the solvency liabilities for a multi-employer pension plan established pursuant to one or more collective agreements or a trust agreement or a pension plan that provides defined benefits where the obligation of an employer to contribute to the pension fund is limited to a fixed amount set out in a collective agreement, the solvency liabilities shall be determined on the basis of the benefits structure set out in the plan at the date of the valuation without consideration of any provision for the possible reduction of such benefits.  R.R.O. 1990, Reg. 909, s. 17 (2).

Annual Information Return

18. (1) Subject to subsection 29 (4), the administrator of a pension plan shall file the annual information return required under section 20 of the Act not later than six months after the end of the fiscal year of the plan, in the case of a plan that provides only defined contribution benefits, and not later than nine months after the end of the fiscal year of the plan, in the case of any other plan.  O. Reg. 712/92, s. 13 (1).

(2)-(5) Revoked:  O. Reg. 307/98, s. 8 (1).

(6) Subsection (7) applies to a pension plan providing defined benefits, other than a plan described in subsection 6 (1), a designated plan or a plan for which an election under subsection 5.1 (1) or (2) is in effect on the assessment date, if the fiscal year end of the plan falls on or after March 31, 1995.  O. Reg. 73/95, s. 6.

(7) The administrator of a pension plan to which this subsection applies shall file, as an attachment to the annual information return, a Pension Benefits Guarantee Fund assessment certificate.  O. Reg. 73/95, s. 6.

(8) The administrator of a pension plan providing defined benefits for which an election under subsection 5.1 (1) or (2) is in effect on the assessment date, other than a plan described in subsection 6 (1), shall file, as an attachment to the annual information return, a qualifying plan Guarantee Fund certificate stating,

(a) the PBGF liabilities of the plan;

(b) the PBGF assessment base for the plan; and

(c) a calculation of the amount of the assessment under subsection 37 (6).  O. Reg. 73/95, s. 6.

(8.1) A certificate referred to in subsection (7) or (8) must be in a form approved by the Superintendent.  O. Reg. 307/98, s. 8 (2).

(9) An actuary shall certify the accuracy of the information required in clauses (8) (a) and (b) and the plan administrator shall certify the accuracy of the information required in clause (8) (c) and of all other information provided in the qualifying plan Guarantee Fund certificate.  O. Reg. 73/95, s. 6.

Commuted Value and Portability of Pension Benefits

18.1 For the purposes of paragraph 2.1 of subsection 39 (5) of the Act (exclusions from entitlement to excess amount),

“benefits that result from voluntary contributions for past service” means, with respect to a member of a pension plan, pension benefits credited to the member as a result of his or her election on or after March 3, 2000 under the plan to make voluntary contributions in order to purchase pension benefits relating to a period of employment before the date on which the member made the election.  O. Reg. 144/00, s. 13.

19. (1) For the purposes of subsection 42 (1) of the Act, the commuted value of a pension, deferred pension or ancillary benefit shall not be less than the value determined in accordance with section 3800 of the Canadian Institute of Actuaries Standards of Practice, effective April 1, 2009, which is available to the public from the Canadian Institute of Actuaries at Suite 800, 150 Metcalfe Street, Ottawa, Ontario K2P 1P1 or electronically on its website.  O. Reg. 116/09, s. 3.

(1.1) Subsection (1) does not apply if a pension plan is being wound up in whole or in part.  O. Reg. 629/92, s. 1 (1).

(1.2) For purposes other than those of subsection 42 (1) of the Act and subsection 29 (2), the commuted value of a pension, deferred pension or ancillary benefit shall be calculated using methods and actuarial assumptions that are consistent with accepted actuarial practice.  O. Reg. 144/00, s. 14.

(2) That portion of the commuted value of a pension, deferred pension or ancillary benefit that can be transferred from a pension plan as of a given date shall be determined by multiplying the commuted value, as determined in accordance with subsection (1), by the lesser of,

(a) the most recently determined transfer ratio;

(b) one.  R.R.O. 1990, Reg. 909, s. 19 (2).

(3) Subject to subsection (4), where the transfer ratio of a pension plan is equal to or greater than one, the administrator may transfer the commuted value of a pension, deferred pension or ancillary benefit in accordance with section 42, 43, 48 or 51 of the Act.  R.R.O. 1990, Reg. 909, s. 19 (3).

(4) Where the administrator of a plan knows or ought to know that, since the valuation date of the report most recently filed or submitted in respect of the plan under section 3, 4, 5.3, 13 or 14, events have taken place that may result in the reduction of the transfer ratio of the plan to a value less than 0.9, the administrator shall not undertake the transfer described in subsection (3) without the prior approval of the Superintendent under subsection 42 (8) of the Act.  O. Reg. 712/92, s. 14 (1).

(5) If the transfer ratio of a plan is less than one and the administrator of the plan knows or ought to know that, since the valuation date of the report most recently filed or submitted in respect of the plan under section 3, 4, 13 or 14, events have taken place that may result in the reduction of the transfer ratio by 10 per cent or more of the most recently determined transfer ratio, the administrator shall not undertake a transfer of any part of the commuted value without the prior approval of the Superintendent under subsection 42 (8) of the Act.  O. Reg. 239/09, s. 9 (1).

(5.1) If the commuted value of the pension, deferred pension or ancillary benefit is calculated on a basis that produces a commuted value higher than the value calculated on the basis prescribed under subsection (1), the administrator shall not make any transfer calculated on the higher basis until the administrator files a statement describing in detail the basis for calculating the commuted value.  O. Reg. 712/92, s. 14 (1); O. Reg. 787/93, s. 1 (2); O. Reg. 307/98, s. 9.

(6) Subject to subsections (4) and (5), the administrator may transfer 100 per cent of the commuted value of a pension, deferred pension or an ancillary benefit from a pension plan that has a transfer ratio that is less than one where,

(a) the administrator of the plan is satisfied that an amount equal to the transfer deficiency has been remitted to the pension fund; or

(b) the aggregate of transfer deficiencies for all transfers made since the last review date does not exceed 5 per cent of the assets of the plan at that time.  R.R.O. 1990, Reg. 909, s. 19 (6); O. Reg. 116/06, s. 15 (1); O. Reg. 239/09, s. 9 (2).

(7) If less than 100 per cent of the commuted value of a pension, deferred pension or ancillary benefit is transferred, the balance shall be transferred by the administrator within five years after the date of the initial transfer.  O. Reg. 629/92, s. 1 (2).

(7.1) Interest shall accumulate, at the same rate used to calculate the commuted value of the pension, deferred pension or ancillary benefit, on the balance to be transferred under subsection (7).  O. Reg. 629/92, s. 1 (2).

(7.2) A transfer under subsection (7) after the initial transfer shall be made in accordance with subsection (6).  O. Reg. 629/92, s. 1 (2).

(8) Subsections (2) to (7) do not apply to any amounts transferred pursuant to a reciprocal transfer agreement that is filed.  R.R.O. 1990, Reg. 909, s. 19 (8).

(9) Revoked:  O. Reg. 116/06, s. 15 (2).

(10) Revoked:  O. Reg. 570/06, s. 5.

20. (1) A member of a pension plan who makes an election under section 42 of the Act or a person who is entitled to make an election under subsection 51 (5) of the Act shall deliver a completed direction to the administrator within sixty days after termination of employment or, in the case of a person entitled to make an election under subsection 51 (5) of the Act, within sixty days after receipt of notice of termination.  R.R.O. 1990, Reg. 909, s. 20 (1).

(2) The administrator shall comply with an election made under subsection (1) within sixty days after the receipt of all information required by the administrator to comply with the direction.  R.R.O. 1990, Reg. 909, s. 20 (2).

(3) The administrator shall not transfer the commuted value of a pension or deferred pension except where the transferee agrees to administer the amount transferred as a pension or deferred pension in accordance with the Act and this Regulation.  R.R.O. 1990, Reg. 909, s. 20 (3).

21. (1) This section governs the transfer of an amount equal to the commuted value of a deferred pension under clause 42 (1) (b) of the Act into a prescribed retirement savings arrangement.  O. Reg. 409/94, s. 3 (1).

(1.1) The following are the prescribed retirement savings arrangements:

1. A life income fund.

1.1 A locked-in retirement income fund.

2. A locked-in retirement account.

3. An RRIF.

4. An RRSP.  O. Reg. 409/94, s. 3 (1); O. Reg. 144/00, s. 15 (1).

(1.2) If the amount to be transferred does not exceed the amount prescribed for such a transfer under the Income Tax Act (Canada), it must be transferred into a life income fund or a locked-in retirement account.  O. Reg. 144/00, s. 15 (2); O. Reg. 239/09, s. 10 (1).

(1.3) Section 22.2 applies if the amount to be transferred is greater than the amount prescribed for such a transfer under the Income Tax Act (Canada).  In that circumstance, the amount prescribed must be transferred into a life income fund or a locked-in retirement account.  O. Reg. 144/00, s. 15 (2); O. Reg. 239/09, s. 10 (2).

(1.4), (1.5) Revoked:  O. Reg. 144/00, s. 15 (2).

(2) A contract to establish a locked-in retirement account shall provide that,

(a) money in the account will not be withdrawn in whole or in part except,

(i) to transfer it to the pension fund of a registered pension plan,

(ii) to transfer it to another locked-in retirement account,

(iii) to purchase an immediate or deferred life annuity described in subsection (2.1) that is provided by a person authorized under the laws of Canada or a province to sell annuities as defined in section 248 of the Income Tax Act (Canada) under an insurance contract that meets the requirements of section 22,

(iv) to transfer it to a life income fund or a locked-in retirement income fund, or

(v) to pay it in accordance with section 49 or 67 of the Act or sections 22.2 to 22.5;

(b) money in the account will not be assigned, charged, anticipated or given as security except as permitted by subsection 65 (3) of the Act;

(c) any transaction purporting to assign, charge, anticipate or give as security money in the account, except as permitted by subsection 65 (3) of the Act, is void;

(d) except as permitted in section 49 or 67 of the Act or in sections 22.2 to 22.5, money in the account will not be commuted, withdrawn or surrendered, in whole or in part, during the lifetime of the member or former member;

(e) any transaction that contravenes clause (d) is void;

(f) the transferee will not permit any subsequent transfer except,

(i) where the transfer is permitted under the Act and the regulations, and

(ii) the subsequent transferee agrees to administer the amount transferred as a pension or deferred pension in accordance with this Act and the regulations;

(g) the transferee will advise in writing any subsequent transferee that the amount transferred must be administered as a pension or deferred pension under the Act and this Regulation; and

(h) upon the death of the owner of the account, the owner’s spouse or, if there is none or if the spouse is otherwise disentitled, the owner’s named beneficiary or, if there is none, the owner’s estate is entitled to receive a benefit equal to the value of the assets in the account.  R.R.O. 1990, Reg. 909, s. 21 (2); O. Reg. 564/92, s. 1 (2, 3); O. Reg. 409/94, s. 3 (2-4); O. Reg. 558/94, s. 2 (1); O. Reg. 144/00, s. 15 (3, 4); O. Reg. 416/07, s. 2 (1-3).

Note:  On January 1, 2011, subsection (2) is revoked.  See:  O. Reg. 239/09, ss. 10 (3), 46 (2).

(2.1) The annuity must not begin before the earlier of,

(a) the earliest date on which the former member is entitled to receive pension benefits under the Act as a result of termination of employment or termination of membership in any pension plan from which money was transferred into the locked-in retirement account; or

(b) the earliest date on which the former member is entitled to receive pension benefits under any pension plan described in clause (a) as a result of termination of employment or termination of membership in the plan.  O. Reg. 409/94, s. 3 (5).

Note:  On January 1, 2011, subsection (2.1) is revoked.  See:  O. Reg. 239/09, ss. 10 (3), 46 (2).

(2.2) The benefit described in clause (2) (h) may be transferred to an RRSP or an RRIF in accordance with the Income Tax Act (Canada).  O. Reg. 416/07, s. 2 (4).

Note:  On January 1, 2011, subsection (2.2) is revoked.  See:  O. Reg. 239/09, ss. 10 (3), 46 (2).

(2.3) A spouse of the owner of a locked-in retirement account is not entitled under clause (2) (h) to receive the value of the assets in the account unless the owner was a member or former member of a pension plan from which assets were transferred directly or indirectly to purchase the account.  O. Reg. 416/07, s. 2 (4).

Note:  On January 1, 2011, subsection (2.3) is revoked.  See:  O. Reg. 239/09, ss. 10 (3), 46 (2).

(2.4) A spouse living separate and apart from the owner of a locked-in retirement account on the date of the owner’s death is not entitled under clause (2) (h) to receive the value of the assets in the account.  O. Reg. 416/07, s. 2 (4).

Note:  On January 1, 2011, subsection (2.4) is revoked.  See:  O. Reg. 239/09, ss. 10 (3), 46 (2).

(2.5) A spouse of the owner of a locked-in retirement account may waive his or her entitlement to receive the survivor’s benefit described in clause (2) (h) from the account by delivering to the financial institution a written waiver in a form approved by the Superintendent.  O. Reg. 416/07, s. 2 (4).

Note:  On January 1, 2011, subsection (2.5) is revoked.  See:  O. Reg. 239/09, ss. 10 (3), 46 (2).

(2.6) A spouse who has delivered a waiver under subsection (2.5) may cancel it by delivering a written and signed notice of cancellation to the financial institution before the date of the death of the owner of the account.  O. Reg. 416/07, s. 2 (4).

Note:  On January 1, 2011, subsection (2.6) is revoked.  See:  O. Reg. 239/09, ss. 10 (3), 46 (2).

(2.7) For the purposes of clause (2) (h), a determination as to whether the owner of the account has a spouse is to be made on the date of the owner’s death.  O. Reg. 416/07, s. 2 (4).

Note:  On January 1, 2011, subsection (2.7) is revoked.  See:  O. Reg. 239/09, ss. 10 (3), 46 (2).

(2.8) For the purposes of clause (2) (h), the value of the assets in the account includes all accumulated investment earnings, including any unrealized capital gains and losses, of the account from the date of death until the date of payment.  O. Reg. 416/07, s. 2 (4).

Note:  On January 1, 2011, subsection (2.8) is revoked.  See:  O. Reg. 239/09, ss. 10 (3), 46 (2).

(3) An immediate or deferred life annuity that is purchased with funds from a life income fund, a locked-in retirement income fund or a locked-in retirement account shall not differentiate on the basis of the sex of the beneficiary if the commuted value of the pension benefit that was transferred into the life income fund, locked-in retirement income fund or locked-in retirement account was determined in a manner that did not differentiate on the basis of sex.  O. Reg. 144/00, s. 15 (5).

Note:  On January 1, 2011, subsection (3) is revoked.  See:  O. Reg. 239/09, ss. 10 (3), 46 (2).

(4) A life income fund, locked-in retirement income fund or locked-in retirement account shall contain a statement as to whether the commuted value of the pension benefit that was transferred into it was determined in a manner that differentiated on the basis of sex.  O. Reg. 144/00, s. 15 (5).

Note:  On January 1, 2011, subsection (4) is revoked.  See:  O. Reg. 239/09, ss. 10 (3), 46 (2).

(5) Revoked:  O. Reg. 558/94, s. 2 (4).

21.1 (1) This section applies if an amendment to a pension plan with defined benefits converts them to defined contribution benefits.  O. Reg. 409/94, s. 4; O. Reg. 144/00, s. 16 (1).

(2) A member with defined benefits who elects to convert them in accordance with the amendment to the pension plan is entitled to require the administrator to pay to the member that portion of the amount of the commuted value of the defined benefits that exceeds the amount prescribed under the Income Tax Act (Canada) for the conversion of defined benefits under the plan to defined contribution benefits.  O. Reg. 144/00, s. 16 (2).

(3)-(5) Revoked:  O. Reg. 144/00, s. 16 (2).

22. (1) An insurance contract under which a deferred or immediate life annuity will be provided resulting from the transfer of the commuted value of a pension benefit or as the result of a purchase from a life income fund, a locked-in retirement income fund or a locked-in retirement account shall set out that,

(a) no money transferred, including interest, will be assigned, charged, anticipated or given as security except as permitted by subsection 65 (3) of the Act;

(b) any transaction purporting to assign, charge, anticipate or give the money transferred as security except as permitted by subsection 65 (3) of the Act is void;

(c) in the case of the unexpired period of a guaranteed annuity, the annuitant may commute a benefit provided under the annuity only for the purpose of purchasing a life income fund;

(c.1) in the case of the unexpired period of a guaranteed annuity where the annuitant is deceased, the former member’s spouse, if any, may surrender or commute the benefit provided under the annuity during the spouse’s lifetime;

(d) a transaction that contravenes clause (c) or (c.1) is void;

(e) where the annuitant has a spouse at the time payments commence, the annuity shall be in the form of a joint and survivor annuity as required by section 44 of the Act unless the annuitant and the spouse provide a waiver as set out in section 46 of the Act;

(f) the amount of the life annuity will be determined on a basis that does not take into account the sex of the annuitant, except,

(i) in the case of a contract that is based entirely upon an amount or amounts transferred from a defined contribution pension plan administered in accordance with clause 52 (2) (b) of the Act, or

(ii) in the case of a contract that is purchased with funds from a life income fund, a locked-in retirement income fund or a locked-in retirement account, the purchase is in accordance with subsection 21 (3); and

Note:  On January 1, 2011, subclause (ii) is revoked and the following substituted:

(ii) in the case of a contract that is purchased with funds from a life income fund, a locked-in retirement income fund or a locked-in retirement account, the purchase is in accordance with Schedule 1, 1.1, 2 or 3 to this Regulation; and

See:  O. Reg. 239/09, ss. 11 (2), 46 (2).

(g) on the death of the annuitant before payment of the annuity, the financial institution referred to in section 21 will administer the annuity in accordance with section 48 of the Act.  R.R.O. 1990, Reg. 909, s. 22; O. Reg. 564/92, s. 2 (1-3); O. Reg. 558/94, s. 4; O. Reg. 115/00, s. 2; O. Reg. 144/00, s. 17 (1-4); O. Reg. 324/05, s. 2; O. Reg. 239/09, s. 11 (1).

Note:  On January 1, 2011, clause (g) is revoked and the following substituted:

(g) on the death of the annuitant before payment of the annuity, the annuity shall be administered in accordance with section 48 of the Act. 

See:  O. Reg. 239/09, ss. 11 (3), 46 (2).

(2) The insurance contract must provide that, if a life income fund is being purchased as authorized by clause (1) (c), the financial institution disclose to the annuitant the difference between the commuted value of the annuity and the amount that will be transferred to the life income fund.  O. Reg. 239/09, s. 11 (4).

Transfers into and Withdrawals from Prescribed Retirement Savings Arrangements

22.1 (1) For the purposes of sections 22.2 to 22.5, a locked-in retirement account includes a contract made before June 24, 1994 to establish an RRSP for the purposes of a transfer under clause 42 (1) (b) of the Act.  O. Reg. 144/00, s. 18; O. Reg. 416/07, s. 3 (1).

(2) Any of the following documents constitutes a declaration about a spouse for the purposes of a withdrawal or transfer under section 22.3, 22.4 or 22.5 from a locked-in retirement account:

1. A statement signed by the spouse, if any, of the owner of the account that the spouse consents to the withdrawal or transfer.

2. A statement signed by the owner of the account attesting to the fact that the owner does not have a spouse.

3. A statement signed by the owner of the account attesting to the fact that the owner is living separate and apart from his or her spouse on the date the owner signs the application to make the withdrawal or transfer.  O. Reg. 416/07, s. 3 (2).

(3) If the owner of a locked-in retirement account is required by section 22.3, 22.4 or 22.5 to give a document to a financial institution, and if the document is one that must be signed by the owner or by the owner’s spouse, the document is a nullity if it is signed by either of them more than 60 days before the financial institution receives it.  O. Reg. 324/05, s. 3 (2); O. Reg. 416/07, s. 3 (3).

(4) When the financial institution receives a document required by section 22.3, 22.4 or 22.5, the financial institution shall give the owner of the locked-in retirement account a receipt for the document stating the date on which it was received.  O. Reg. 144/00, s. 18; O. Reg. 416/07, s. 3 (4).

Note:  On January 1, 2011, section 22.1 is revoked.  See:  O. Reg. 239/09, ss. 12, 46 (2).

22.2 (1) This section applies if the amount to be transferred under clause 42 (1) (b) of the Act into a prescribed retirement savings arrangement is greater than the amount prescribed for such a transfer under the Income Tax Act (Canada).  O. Reg. 144/00, s. 18.

(2) The portion of the amount to be transferred that does not exceed the amount prescribed for such a transfer under the Income Tax Act (Canada) must be transferred into a life income fund or a locked-in retirement account.  O. Reg. 144/00, s. 18; O. Reg. 239/09, s. 13.

(3) If the excess amount has been transferred directly or indirectly into a life income fund, a locked-in retirement income fund or a locked-in retirement account, the owner of the fund or account may, upon application in accordance with this section, withdraw money from the fund or account in an amount not greater than the sum of,

(a) the excess amount; and

(b) any subsequent investment earnings, including any unrealized capital gains or losses, attributable to the excess amount as calculated by the financial institution that administers the fund or account.  O. Reg. 144/00, s. 18.

(4) The amount that may be withdrawn under subsection (3) is calculated as of the date on which the financial institution pays the money to the owner from the fund or account in accordance with this section.  O. Reg. 144/00, s. 18.

(5) An application to withdraw money from a fund or account must be given to the financial institution that administers the fund or account.  O. Reg. 144/00, s. 18.

(6) The application must be made on a form approved by the Superintendent.  O. Reg. 144/00, s. 18.

(7) The application form must be signed by the owner and accompanied by one of the following documents:

1. A written statement from the administrator of the pension plan from which money was transferred into the fund or account setting out the excess amount that was transferred into the fund or account.

2. A written statement from the Canada Revenue Agency setting out the excess amount that was transferred into the fund or account.  O. Reg. 144/00, s. 18; O. Reg. 242/00, s. 1; O. Reg. 386/04, s. 5.

(8) The contract governing the fund or account must include the following terms and, if it does not, the contract shall be deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment from the fund or account, as the case may be, in accordance with this section.

3. The financial institution is required to make the payment to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying document.  O. Reg. 144/00, s. 18; O. Reg. 416/07, s. 4.

(9) In this section,

“excess amount” means the portion of the amount transferable under clause 42 (1) (b) of the Act into a prescribed retirement savings arrangement that is greater than the amount prescribed for such a transfer under the Income Tax Act (Canada).  O. Reg. 144/00, s. 18.

22.3 (1) The owner of a locked-in retirement account may, upon application in accordance with this section, withdraw all the money in the account or transfer the assets to an RRSP or RRIF if, when the owner signs the application,

(a) he or she is at least 55 years of age; and

(b) the value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by him or her is less than 40 per cent of the Year’s Maximum Pensionable Earnings for that calendar year.  O. Reg. 416/07, s. 5 (1).

(2) An application for the withdrawal or transfer from the account must be given to the financial institution that administers the account.  O. Reg. 416/07, s. 5 (1).

(3) The application must be made on a form approved by the Superintendent.  O Reg. 144/00, s. 18.

(4) The application form must be signed by the owner and accompanied by,

(a) a declaration described in subsection 22.1 (2) about a spouse; or

(b) a statement signed by the owner attesting to the fact that none of the money in the account is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.  O. Reg. 144/00, s. 18; O. Reg. 324/05, s. 4.

(5) If assets in the account consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.  O. Reg. 416/07, s. 5 (2).

(6) The contract governing the account must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment or transfer from the account in accordance with this section.

3. The value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by the owner when he or she signs the application under this section is to be determined using the most recent statement about each fund or account given to the owner.  Each such statement must be dated within one year before the owner signs the application.

4. The financial institution is required to make the payment or transfer to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.  O. Reg. 416/07, s. 5 (2).

Note:  On January 1, 2011, section 22.3 is revoked.  See:  O. Reg. 239/09, ss. 14, 46 (2).

22.4 (1) The owner of a locked-in retirement account may, upon application in accordance with this section, withdraw all or part of the money in the account if, when the owner signs the application, he or she has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years.  O. Reg. 144/00, s. 18.

(2) An application to withdraw money from the account must be given to the financial institution that administers the account.  O. Reg. 144/00, s. 18.

(3) The application must be made on a form approved by the Superintendent.  O. Reg. 144/00, s. 18.

(4) The application form must be signed by the owner and be accompanied by the following documents:

1. A statement signed by a physician who is licensed to practise medicine in a jurisdiction in Canada that, in the opinion of the physician, the owner has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years.

2. A declaration described in subsection 22.1 (2) about a spouse or a statement signed by the owner of the account attesting to the fact that none of the money in the account is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.  O. Reg. 144/00, s. 18; O. Reg. 324/05, s. 5.

(5) The contract governing the account must include the following terms and, if it does not, the contract shall be deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment from the account in accordance with this section.

3. The financial institution is required to make the payment to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.  O. Reg. 144/00, s. 18; O. Reg. 416/07, s. 6.

Note:  On January 1, 2011, section 22.4 is revoked.  See:  O. Reg. 239/09, ss. 14, 46 (2).

22.5 (1) The owner of a locked-in retirement account may, upon application in accordance with this section, withdraw all the money in the account,

(a) if, when the owner signs the application, he or she is a non-resident of Canada as determined by the Canada Revenue Agency for the purposes of the Income Tax Act (Canada); and

(b) if the application is made at least 24 months after his or her date of departure from Canada.  O. Reg. 416/07, s. 7.

(2) An application to withdraw the money from the account must be given to the financial institution that administers the account.  O. Reg. 416/07, s. 7.

(3) The application must be made on a form approved by the Superintendent.  O. Reg. 416/07, s. 7.

(4) The application form must be signed by the owner and accompanied by the following documents:

1. A written determination from the Canada Revenue Agency that the person is a non-resident for the purposes of the Income Tax Act (Canada).

2. Either a declaration described in subsection 22.1 (2) about a spouse or a statement signed by the owner attesting to the fact that none of the money in the account is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.  O. Reg. 416/07, s. 7.

(5) The contract governing the account must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment from the account in accordance with this section.

3. The financial institution is required to make the payment to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.  O. Reg. 416/07, s. 7.

Note:  On January 1, 2011, section 22.5 is revoked.  See:  O. Reg. 239/09, ss. 14, 46 (2).

Designated Provinces

23. (1) The following provinces and territories of Canada are designated as provinces or territories in which there is in force legislation substantially similar to the Act:

1. The Province of Alberta.

2. The Province of Manitoba.

3. The Province of Newfoundland.

4. The Province of Nova Scotia.

5. The Province of Quebec.

6. The Province of Saskatchewan.

7. The Northwest Territories.

8. The Yukon Territory.

8.1 The Territory of Nunavut.

9. The Province of New Brunswick.

10. The Province of British Columbia.  R.R.O. 1990, Reg. 909, s. 23 (1); O. Reg. 787/93, s. 2; O. Reg. 144/00, s. 19.

(2) A pension plan, the plurality of members of which are employed in a designated province, may be exempted from registration or audit under the Act, where there is an agreement to that effect with the designated province.  R.R.O. 1990, Reg. 909, s. 23 (2).

(3) For the purpose of ascertaining where the plurality of the members are employed, only members employed in Ontario or in a designated province shall be counted.  R.R.O. 1990, Reg. 909, s. 23 (3).

Note:  On October 1, 2010, section 23 is revoked and the following substituted:

Reciprocal Agreements

23. (1) This section applies if there is an agreement under section 95 of the Act between the Commission and authorized representatives of one or more designated jurisdictions.  O. Reg. 342/10, s. 3.

(2) If the agreement so provides, a pension plan with the plurality of members employed in a designated jurisdiction is exempted from registration or audit under the Act.  O. Reg. 342/10, s. 3.

(3) In order to determine, for the purposes of subsection (2), where the plurality of the members of a pension plan are employed, only those members who are employed in Ontario or in any of the designated jurisdictions shall be counted.  O. Reg. 342/10, s. 3.

See:  O. Reg. 342/10, ss. 3, 5.

Interest

24. (1) Contributions made by or on behalf of members and former members of a pension plan that provide defined contribution benefits shall be credited, commencing with the 1st day of January, 1988, not less frequently than annually with such rate of return as can reasonably be attributed to the operation of the pension fund or that part of the pension fund to which the contributions are made.  R.R.O. 1990, Reg. 909, s. 24 (1).

(2) Contributions to a pension fund may be credited under subsection (1) with a greater rate of return than is described in the subsection.  R.R.O. 1990, Reg. 909, s. 24 (2); O. Reg. 144/00, s. 20.

(3) Contributions, other than additional voluntary contributions, of members and former members of a pension plan that provides defined benefits shall be credited not less frequently than annually with interest calculated at a rate that is not less than the rate calculated on the basis of the average of the yields of five-year personal fixed-term chartered bank deposit rates as determined from the Canadian Socio-Economic Information Management System (CANSIM) series V122515 compiled by Statistics Canada, and available on the website maintained by the Bank of Canada, over a reasonably recent period such that the averaging period does not exceed twelve months.  O. Reg. 116/06, s. 16 (1).

(3.1) Despite subsection (3), a pension plan may provide that the contributions described in that subsection shall be credited not less frequently than annually with interest calculated at a rate that is not less than such rate of return as can reasonably be attributed to the pension fund or to that part of the pension fund to which the contributions are made.  O. Reg. 629/92, s. 2 (1); O. Reg. 409/94, s. 5.

(4) Additional voluntary contributions of members and former members of a pension plan that provide defined benefits shall be credited, commencing with the 1st day of January, 1988, with such rate of return as can reasonably be attributed to the operation of the pension fund or that part of the pension fund to which contributions are made.  R.R.O. 1990, Reg. 909, s. 24 (4).

(5) Contributions of members and former members of a pension plan that provide both defined benefits and defined contribution benefits shall be credited with interest, commencing with the 1st day of January, 1988, in accordance with subsection (1), (3) or (4), as the case requires.  R.R.O. 1990, Reg. 909, s. 24 (5).

(6) Despite subsections (1) to (5), contributions of members and former members of a pension plan that provide for pension benefits that are guaranteed by an insurance company shall be credited, commencing with the 1st day of January, 1988, not less frequently than annually with interest to be calculated on the basis of the average of the yields of five-year personal fixed term chartered bank deposit rates as determined from the Canadian Socio-Economic Information Management System (CANSIM) series V122515 compiled by Statistics Canada and available on the website maintained by the Bank of Canada, over a reasonably recent period, such that the averaging period does not exceed twelve months.  R.R.O. 1990, Reg. 909, s. 24 (6); O. Reg. 116/06, s. 16 (2).

(7) Interest shall commence to accrue to contributions made by a member on or after the 1st day of January, 1988, no later than the first of the month following the month in which the contributions were required to be paid into the pension fund.  R.R.O. 1990, Reg. 909, s. 24 (7).

(8) As an alternative to subsection (7), the Administrator may credit contributions made by a member to a pension plan during a fiscal year of the plan with an average rate of interest for that fiscal year determined in accordance with subsection (1), (3), (4), (5) or (6), as the case requires.  R.R.O. 1990, Reg. 909, s. 24 (8).

(9) The rate of interest to be credited to the member’s contributions during the fiscal year of the plan of a member who ceases to be a member, retires or dies during a fiscal year of a pension plan, shall be the most recently calculated rate determined in accordance with subsection (1), (3), (4), (5), (6), (7) or (8), as the case requires, and shall be credited at least to the month of termination.  R.R.O. 1990, Reg. 909, s. 24 (9).

(10) An order made by the Superintendent for repayment of money under subsection 42 (10) or 43 (5) of the Act or for a return of assets under subsection 80 (6) or 81 (6) of the Act shall include interest at the “postjudgment interest rate” as defined in section 127 of the Courts of Justice Act calculated from the date of the transfer to which the order relates.  R.R.O. 1990, Reg. 909, s. 24 (10).

(11) If a person is entitled to be paid a lump sum from a pension plan, the amount owing to him or her shall accumulate interest, to be calculated at the same rate used to calculate interest on contributions of members and former members under the plan. The interest shall accumulate from the date of termination to the beginning of the month of payment.  O. Reg. 629/92, s. 2 (2).

(11.1) If a person makes an election under section 42 of the Act (transfer of deferred pension), the commuted value of the deferred pension shall accumulate interest, to be calculated at the same rate used to calculate the commuted value. The interest shall accumulate from the date of termination to the beginning of the month of payment.  O. Reg. 629/92, s. 2 (2).

(12) If a person makes an election under subsection 73 (2) of the Act (transfer of pension benefit on wind up), the commuted value of the deferred pension shall accumulate interest, to be calculated at the same rate used to calculate the commuted value of the pension benefit in the wind up report. The interest shall accumulate from the effective date of the wind up to the beginning of the month of payment.  O. Reg. 629/92, s. 2 (2).

(13) This section applies to the accumulated contributions made by the members or former members as at the 1st day of January, 1988, and all contributions made by a member or former member subsequent to that date.  R.R.O. 1990, Reg. 909, s. 24 (13).

Surplus Withdrawal Application — Continuing Plan

25. (1) The following information is prescribed for the purposes of a notice respecting an application under subsection 78 (2) of the Act:

1. The name of the pension plan and its provincial registration number.

2. The valuation date of the report provided with the application and the amount of surplus in the pension plan.

3. The surplus attributable to employee and employer contributions.

4. The amount of surplus withdrawal requested.

5. A statement that submissions in respect of the application may be made in writing to the Superintendent within thirty days after receipt of the notice.

6. The contractual authority for surplus withdrawals.

7. Notice that copies of the report and certificates filed with the Superintendent in support of the surplus request are available for review at the offices of the employer and information on how copies of the report may be obtained.  R.R.O. 1990, Reg. 909, s. 25 (1); O. Reg. 712/92, s. 15; O. Reg. 307/98, s. 10 (1, 2).

(2) The employer shall file a copy of the notice required by subsection 78 (2) of the Act before transmitting it to the persons required by that subsection.  O. Reg. 307/98, s. 10 (3).

(3) Revoked:  O. Reg. 629/92, s. 3.

(4) An application by an employer for the consent of the Superintendent to a payment from a continuing pension plan under subsection 78 (1) of the Act shall be accompanied by a certified copy of the notice referred to in subsection (1), a statement that subsection 78 (2) of the Act has been complied with, details as to the classes of persons who received notice and the date the last notice was distributed.  R.R.O. 1990, Reg. 909, s. 25 (4); O. Reg. 307/98, s. 10 (4).

(5) An application referred to in subsection (1) shall be accompanied by a current report prepared on the basis of a going concern valuation demonstrating that a surplus as determined in accordance with section 26 exists and that there are no special payments required to be made to the pension fund.  R.R.O. 1990, Reg. 909, s. 25 (5).

26. (1) For purposes of determining surplus in a continuing pension plan,

(a) the value of the assets of the pension plan shall be calculated on the basis of the market value of the investments held by the pension fund plus any cash balances and accrued or receivable items; and

(b) the value of the liabilities of the pension plan shall be the greater of the calculation of,

(i) the going concern liabilities, or

(ii) the solvency liabilities.  R.R.O. 1990, Reg. 909, s. 26 (1).

(2) For purposes of subclauses 79 (1) (d) (ii) and (e) (ii) of the Act, the liabilities of the pension plan shall be calculated as the solvency liabilities.  R.R.O. 1990, Reg. 909, s. 26 (2).

27. Revoked:  O. Reg. 307/98, s. 11.

Wind up Notices

28. (1) A notice of proposal to wind up a pension plan required under section 68 of the Act shall include,

(a) the name of the plan and its provincial registration number;

(b) the proposed date of wind up;

(c) notice that each member, former member or any other person entitled to a pension, deferred pension, any other benefit or a refund will be provided with an individual statement setting out entitlements and options under the plan; and

(d) where a plan provides contributory benefits, notice of the member’s right to make contributions in respect of the period of notice of termination of employment required under Part XV of the Employment Standards Act, 2000.  R.R.O. 1990, Reg. 909, s. 28 (1); O. Reg. 386/04, s. 6 (1).

(2) In addition to setting out the applicable person’s entitlement under the plan and the options available to the person, the statement required by subsection 72 (1) of the Act must include,

(a) the name of the pension plan and its provincial registration number;

(b) the member’s name and date of birth;

(c) the date of plan wind up;

(d) the date on which the member joined the plan, and, except in the case of multi-employer pension plans, the date the member was employed by the employer;

(e) the member’s spouse as indicated on the records of the administrator;

(f) the amount of required contributions made to the pension fund by a member since the date of the last annual statement provided under section 27 of the Act;

(g) the accumulated amount of required contributions made to the pension fund by the member, including interest credited to such contributions, to the date of plan wind up;

(h) the amount of additional voluntary contributions made by the member to the pension fund since the date of the last annual statement provided under section 27 of the Act;

(i) the accumulated amount of additional voluntary contributions made by the member to the pension fund, including interest credited to such contributions, to the date of wind up;

(j) any amount transferred since the date of the last annual statement provided under section 27 of the Act from another pension plan on behalf of the member and the pension benefit under the plan attributable to that amount;

(k) in the case of a plan providing defined contribution benefits,

(i) the amount of employer contributions allocated to the member since the date of the last annual statement provided under section 27 of the Act, and

(ii) the accumulated amount of employer contributions, including interest credited to such contributions, allocated to the member on the plan records, to the date of wind up;

(l) in the case of a defined benefit plan,

(i) the member’s years of employment for the purpose of the calculation of pension benefits including any period credited under subsection 74 (5) of the Act, and

(ii) where salary is a factor in determining a pension benefit, the salary level utilized for the purpose of determining the benefit;

(m) the rate of interest credited to contributions required to be made by the member since the date of the last annual statement required under section 27 of the Act;

(n) an explanation of any amendments made to the pension plan during the period covered by the statement for which an explanation has not previously been provided under section 41;

(o) the time period in which any option must be exercised;

(p) if there are insufficient assets to pay all pension benefits, a description of any reductions made to the person’s benefits;

(q) Revoked:  O. Reg. 144/00, s. 21 (2).

(r) notice where copies of the wind up report are available and information on how copies of the report may be obtained;

(s) notice of the person the recipient of the statement may contact with respect to any questions arising out of the statement; and

(t) notice that the entitlements and options are subject to the approval of the Superintendent and of the Canada Revenue Agency, and may be adjusted accordingly.  R.R.O. 1990, Reg. 909, s. 28 (2); O. Reg. 629/92, s. 4 (1); O. Reg. 307/98, s. 12 (1); O. Reg. 115/00, s. 3; O. Reg. 144/00, s. 21 (1-3); O. Reg. 242/00, s. 2; O. Reg. 386/04, s. 6 (2); O. Reg. 324/05, s. 6.

(2.1) Subject to subsection (2.2), the statement required by subsection 72 (1) of the Act must be given to the specified persons within 60 days after the administrator receives notice that the Superintendent has approved the wind up report.  O. Reg. 144/00, s. 21 (4).

(2.2) If the Superintendent approves the payment of benefits under subsection 70 (3) of the Act, the statement required by subsection 72 (1) of the Act must be given to the persons affected by the approval within 60 days after the administrator receives notice of it.  O. Reg. 144/00, s. 21 (4).

(3) A recipient of a statement referred to in subsection (2) who is entitled to elect an option shall forward the election to the administrator within ninety days after receipt of the statement.  R.R.O. 1990, Reg. 909, s. 28 (3).

(4) Subject to subsection (4.1), the payment required by subsection 72 (3) of the Act must be made within 60 days after the later of,

(a) the day on which the administrator receives the applicable person’s election under subsection (3) or, if no election is made, the day on which the person is deemed to have made the election; and

(b) the day on which the administrator receives notice that the Superintendent has approved the wind up report.  O. Reg. 144/00, s. 21 (5).

(4.1) If the Superintendent approves the payment of benefits under subsection 70 (3) of the Act, the payment required by subsection 72 (3) of the Act must be made within 60 days after the later of,

(a) the day on which the administrator receives the election under subsection (3) by the person affected by the approval or, if no election is made, the day on which the person is deemed to have made the election; and

(b) the day on which the administrator receives notice of the approval.  O. Reg. 144/00, s. 21 (5).

(5) A notice required under subsection 78 (2) of the Act for a plan that is being wound up shall contain,

(a) the name of the pension plan and its provincial registration number;

(b) the valuation date of the report provided with the application and amount of surplus in the pension plan;

(c) the surplus attributable to employee and employer contributions;

(d) the amount of surplus withdrawal requested;

(e) a statement that submissions may be made in writing to the Superintendent within thirty days of receipt of the notice;

(f) the contractual authority for surplus reversion; and

(g) notice that copies of the wind up report filed with the Superintendent in support of the surplus request are available for review at the offices of the employer and information on how copies of the report may be obtained.  R.R.O. 1990, Reg. 909, s. 28 (5); O. Reg. 712/92, s. 16; O. Reg. 307/98, s. 12 (2, 3).

(5.1) The employer shall file a copy of the notice required by subsection 78 (2) of the Act before transmitting it to the persons required by that subsection.  O. Reg. 307/98, s. 12 (4).

(6) An application by an employer for the consent of the Superintendent to a payment from a pension plan that is being wound up shall be accompanied by a certified copy of the notice referred to in subsection (5), a statement that subsection 78 (2) of the Act has been complied with, the date the last notice was distributed and details as to the classes of persons who received notice.  R.R.O. 1990, Reg. 909, s. 28 (6); O. Reg. 307/98, s. 12 (5).

28.1 (1) This section applies if there is a surplus on the wind up of a pension plan in whole or in part.  O. Reg. 144/00, s. 22.

(2) The administrator of the pension plan shall give to each person entitled to a pension, deferred pension or other benefit or to a refund in respect of the pension plan a statement setting out the following information:

1. The name of the pension plan and its provincial registration number.

2. The member’s name and date of birth.

3. The method of distributing the surplus assets.

4. The formula for allocating the surplus among the plan beneficiaries.

5. An estimate of the amount allocated to the person.

6. The options available to the person concerning the method for distributing the amount allocated to the person and the period within which any election respecting the options must be made.

7. The method of distribution that will be used, if an election is not made within the specified period.

8. The name and details of the person to be contacted with respect to any questions arising out of the statement.

9. Notice that the allocation of surplus and the options available for distributing it are subject to the approval of the Superintendent and of the Canada Revenue Agency, and may be adjusted accordingly.  O. Reg. 144/00, s. 22; O. Reg. 242/00, s. 3; O. Reg. 386/04, s. 7.

(3) The statement must be given to the specified persons within 60 days after the administrator receives notice that the Superintendent has approved the wind up report.  O. Reg. 144/00, s. 22.

(4) A person who is entitled to elect an option described in the statement shall give the administrator his or her election within 90 days after the person receives the statement.  If the person does not do so, he or she shall be deemed to have elected the method of distribution specified in the statement.  O. Reg. 144/00, s. 22.

(5) The administrator shall make payment in accordance with the election or deemed election within 60 days after the later of,

(a) the day on which the administrator receives the applicable person’s election or, if no election is made, the day on which the person is deemed to have made the election; and

(b) the day on which the administrator receives notice that the Superintendent has approved the wind up report.  O. Reg. 144/00, s. 22.

Plan Wind ups — General

29. (1) A wind up report required to be filed under subsection 70 (1) of the Act shall be prepared by a person authorized to prepare a report for the plan under section 15.  R.R.O. 1990, Reg. 909, s. 29 (1).

(2) If a pension plan is being wound up in whole or in part, the minimum commuted value of a pension, deferred pension or ancillary benefit in respect of a person who exercises his or her entitlement under subsection 73 (2) of the Act is the amount determined as of the effective date of the wind up in accordance with section 3800 of the Canadian Institute of Actuaries Standards of Practice, effective April 1, 2009, which is available to the public from the Canadian Institute of Actuaries at Suite 800, 150 Metcalfe Street, Ottawa, Ontario K2P 1P1 or electronically on its website.  O. Reg. 116/09, s. 4.

(3) The administrator shall file the wind up report within six months following the effective date of the wind up of the plan in whole or in part.  R.R.O. 1990, Reg. 909, s. 29 (3).

(4) In addition to the wind up report required under subsection 70 (1) of the Act, the administrator of the plan shall file all outstanding annual information returns required to be filed up to the effective date of the wind up of the pension plan within six months after the effective date.  R.R.O. 1990, Reg. 909, s. 29 (4); O. Reg. 629/92, s. 5 (2).

(5) In addition to the wind up report required under subsection 70 (1) of the Act, the administrator of a pension plan that is wound up and that provides a defined benefit shall provide the Superintendent with such information as the Superintendent requires to determine the persons whose pension benefits are guaranteed under section 84 of the Act, the amounts of such guaranteed benefits, the amounts to be contributed to the plan under section 75 of the Act and such other information as the Superintendent requires.  R.R.O. 1990, Reg. 909, s. 29 (5).

(6) Payments of refunds of employee contributions with interest to persons not entitled to a pension, deferred pension or ancillary benefit are prescribed for purposes of subsection 70 (3) of the Act.  R.R.O. 1990, Reg. 909, s. 29 (6).

(7) Subject to the requirements of subsection (8), the administrator of a pension plan,

(a) that is terminated;

(b) that provides defined benefits; and

(c) with respect to which no order has been made under subsection 83 (1) of the Act,

may, after the wind up report required under subsection (1) has been approved by the Superintendent, pay prior to the completion of any additional funding required under section 75 of the Act,

(d) the accumulated value of any additional voluntary contributions;

(e) the accumulated value of required contributions made by a member or former member; and

(f) the value of any pension, deferred pension or ancillary benefits accrued as of the effective date of the wind up with respect to employment and remuneration until that date in accordance with the plan provisions, to the extent that such benefits have been funded and after appropriate adjustments for any payment made in accordance with clause (e).  R.R.O. 1990, Reg. 909, s. 29 (7); O. Reg. 307/98, s. 13 (1).

(8) Where an employer is required to make payments into a pension plan under section 75 of the Act and all pensions and other benefits being funded under section 75 of the Act would not be guaranteed under section 84 of the Act,

(a) no funds of the pension plan shall be used to purchase a life annuity for any person entitled thereto; and

(b) where an election is made under clause 42 (1) (a) or (b) of the Act, the maximum portion of the commuted value of the deferred pension that may be transferred is the amount, if any, of the contributions the employee was required to make under the plan plus any additional voluntary contributions made by the employee,

until a report is filed under section 32 certifying that there is no further amount to be funded or an order is made under subsection 83 (1) of the Act with respect to the plan.  R.R.O. 1990, Reg. 909, s. 29 (8); O. Reg. 629/92, s. 5 (3); O. Reg. 307/98, s. 13 (2).

(9) Where a pension plan is wound up in whole or in part and the assets of the pension plan are not sufficient to pay all pensions, deferred pensions or ancillary benefits,

(a) where the employer is making payments in accordance with section 75 of the Act, pension benefits to which a person may be entitled but that had not vested under the terms of the plan shall be reduced to an amount proportionate to the extent that the benefits had been funded;

(b) in all cases, other than that referred to in clause (a), the pension, deferred pension or ancillary benefit to which a person would otherwise be entitled shall be reduced to an amount proportionate to the extent that the benefits had been funded; and

(c) where an order has been made under subsection 83 (1) of the Act, benefits attributable to the application of subsection 74 (7) of the Act shall not be included in the determination of a pension, deferred pension or ancillary benefit referred to in clause (a) or (b).  R.R.O. 1990, Reg. 909, s. 29 (9); O. Reg. 307/98, s. 13 (3).

(10) For the purpose of calculating the Ontario wind up liability of a plan, the liability of the plan in respect of each member or former member who has benefits relating to employment in Ontario is the sum of the following liabilities of the plan:

1. The liability for each benefit and other amount guaranteed for the benefit of the member or former member by the Guarantee Fund, excluding the amount by which the contributions in respect of the member or former member for the benefits and other amounts, plus interest, exceed the liability of the plan for the benefits and other amounts.

2. The liability for each benefit that relates to employment in Ontario to which the member or former member is entitled under section 74 of the Act but that is not guaranteed by the Guarantee Fund.

3. The liability for each benefit that relates to the member’s or former member’s employment in Ontario that is vested on the effective date of the wind up under the terms of the plan, other than,

i. a benefit described in paragraph 1 or 2,

ii. a benefit that relates to employment in Ontario that is vested by virtue only of a provision of the Act or this Regulation respecting the termination or wind up of the plan, and

iii. a benefit that relates to employment in Ontario that is vested by virtue only of a provision of the plan respecting the termination or wind up of the plan.

4. The liability arising from subsection 39 (1), (2), (3) or (4) of the Act for each benefit that relates to the member’s or former member’s employment in Ontario, to the extent that the liability is not described in paragraph 1, 2 or 3.

5. If the employer is making payments under section 75 of the Act with respect to the plan, the liability for each benefit described in subparagraph 3 ii or iii, to the extent that the liability is not described in paragraph 1, 2 or 4.  O. Reg. 144/00, s. 23 (2).

(11) For the purposes of subsection (10), the liability of the plan in respect of each member or former member does not include the liability for a benefit to him or her under a qualifying annuity contract.  O. Reg. 144/00, s. 23 (2).

29.1 (1) The administrator shall file the following documents within six months after the effective date of the wind up for the period from the most recent fiscal year end to the effective date:

1. An annual information return under section 18.

2. Financial statements under section 76 for the pension fund or plan.  O. Reg. 629/92, s. 6.

(2), (3) Revoked:  O. Reg. 144/00, s. 24.

(4) Within thirty days after final distribution of the assets of a pension plan under section 70 of the Act, the administrator shall give the Superintendent written notice that all the assets of the plan have been so distributed.  O. Reg. 629/92, s. 6.

Defined Benefit Plan Wind ups

30. (1) This section applies to a pension plan that provides defined benefits guaranteed in whole or in part by the Guarantee Fund.  O. Reg. 570/06, s. 6 (2).

(2) A wind up report for a pension plan shall be prepared by,

(a) determining the value of any additional voluntary contributions, including interest on such contributions, and providing for the immediate payment from the pension fund to each member of the additional voluntary contributions made by the member plus interest;

(b) determining the liabilities for the commuted value of all benefits in respect of each member and former member under the plan including,

(i) accrued benefits for members not yet vested under the terms of the plan,

(ii) escalated adjustments that have been made before the effective date of the wind up,

(iii) plant closure benefits payable on plan wind up,

(iv) permanent layoff benefits payable on plan wind up,

(v) funded consent benefits,

(v.1) benefit enhancements resulting from the application of section 74 of the Act, and

(vi) funded special allowances,

but not including the value of,

(vii) amounts determined under clause (a),

(viii) escalated adjustments that have not been made as of the effective date of the wind up,

(ix) Revoked:  O. Reg. 570/06, s. 6 (4).

(x) prospective benefit increases, and

(xi) benefits provided under a guaranteed annuity contract or a contract issued under the Government Annuities Act (Canada) if the contract was issued before the 1st day of January, 1988;

(c) increasing the liabilities determined under clause (b) in respect of each member or former member so that the liabilities in respect of the member or former member are not less than the minimum value of the required contributions made by the member or former member to the plan;

(d) allocating the liabilities determined under clauses (b) and (c) among,

(i) employment in Ontario,

(ii) employment in each designated province, and employment for which pension benefits are provided in a plan registered under the Pension Benefits Standards Act, 1985 (Canada), and

Note:  On October 1, 2010, subclause (ii) is revoked and the following substituted:

(ii) employment in each designated jurisdiction, and

See:  O. Reg. 342/10, ss. 4 (1), 5.

(iii) employment other than employment referred to in subclauses (i) and (ii);

(e) determining the difference between the solvency assets and the value of any additional voluntary contributions determined under clause (a), and allocating the difference among the categories of employment set out in clause (d) in proportion to the liabilities allocated under clause (d) to each of the categories;

(f) determining the Ontario wind up liability;

(g) if the Ontario assets exceed the Ontario wind up liability, first applying the Ontario assets to provide for the Ontario wind up liability and then applying any remaining Ontario assets to provide, on an equitable basis determined by the person preparing the report and acceptable to the Superintendent, for those benefits included in calculating the basic Ontario liabilities but not included in calculating the Ontario wind up liability;

(h) dealing with the portion of the plan assets allocated for the provision of benefits resulting from employment in each designated province in accordance with the laws of the province;

Note:  On October 1, 2010, clause (h) is revoked and the following substituted:

(h) dealing with the portion of the plan assets allocated for the provision of benefits resulting from employment in each designated jurisdiction in accordance with the laws of the jurisdiction; and

See:  O. Reg. 342/10, ss. 4 (2), 5.

(i) dealing with the portion of the plan assets allocated for the provision of pension benefits provided in a plan registered under the Pension Benefits Standards Act, 1985 (Canada) in accordance with that Act; and

Note:  On October 1, 2010, clause (i) is revoked.  See:  O. Reg. 342/10, ss. 4 (2), 5.

(j) dealing on an equitable basis with the portion of plan assets allocated for the provision of benefits from any other employment.  O. Reg. 712/92, s. 18; O. Reg. 570/06, s. 6 (3, 4).

(3) A wind up report shall describe everything done under subsection (2).  O. Reg. 712/92, s. 18.

(4) This section as it read immediately before the Regulation date continues to apply with respect to a pension plan with an effective date of wind up before the Regulation date.  O. Reg. 712/92, s. 18.

31. (1) The liability to be funded under section 75 of the Act shall be funded by annual special payments commencing at the effective date of the wind up and made by the employer to the pension fund.  O. Reg. 712/92, s. 19.

(2) The special payments under subsection (1) for each year shall be at least equal to the greater of,

(a) the amount required in the year to fund the employer’s liabilities under section 75 of the Act in equal payments, payable annually in advance, over not more than five years; and

(b) the minimum special payments required for the year in which the plan is wound up, as determined in the reports filed or submitted under sections 3, 4, 5.3, 13 and 14, multiplied by the ratio of the basic Ontario liabilities of the plan to the total of the liabilities and increased liabilities of the plan as determined under clauses 30 (2) (b) and (c).  O. Reg. 712/92, s. 19.

(3) The special payments referred to in subsections (1) and (2) shall continue until the liability is funded.  O. Reg. 712/92, s. 19.

(4) Subsection (5) applies to a qualifying plan or to a plan with the following history:

1. An election was made in respect of the plan under subsection 5.1 (1) or (2).

2. The election was rescinded in accordance with subsection 5.1 (12).

3. After the date of the election but within five years after the date on which the election was rescinded, the plan was wound up.  O. Reg. 712/92, s. 19.

(5) For a qualifying plan or a plan with the history described in subsection (4), the liability to be funded under section 75 of the Act shall be funded by monthly special payments by the employer to the pension fund over a period of not more than one year beginning on the effective date of the wind up.  O. Reg. 712/92, s. 19.

31.1 (1) Any liability to be funded under clause 75.1 (1) (b) or (2) (b) of the Act shall be funded by equal monthly instalments for five years or less or by payments determined in accordance with a schedule of payments.  O. Reg. 116/06, s. 17.

(2) The instalments or payments required under subsection (1) shall be made to the pension fund by the employer or, if another person or entity is required to make payments on behalf of the employer, that person or entity and, if applicable, by the members of the pension plan, commencing on the effective date of the wind up.  O. Reg. 116/06, s. 17.

(3) The schedule of payments referred to in subsection (1) shall be determined as follows:

1. The present value of the scheduled payments at the effective date of the wind up is equal to the liability to be funded.

2. The amortization period for the scheduled payments shall end not later than five years after the effective date of the wind up.

3. The present value of the scheduled payments is determined using the interest rates used in the wind up report.  O. Reg. 116/06, s. 17.

32. (1) Until the employer’s liability under section 75 of the Act is funded, the administrator of the plan shall annually cause the plan to be reviewed and a report to be prepared by a person authorized by section 15 and shall file the report within six months after the valuation date of the report.  R.R.O. 1990, Reg. 909, s. 32 (1); O. Reg. 712/92, s. 20 (1).

(2) A report required under subsection (1) shall show,

(a) the gain or the loss in the pension plan since the valuation date of the immediately preceding report as a result of differences between the actual experience and the experience anticipated by the assumptions made in the previous report; and

(b) the increase or decrease in the remaining special payments that will liquidate the gain or loss referred to in clause (a) over the remainder of the five-year period commencing from the effective date of the wind up.  R.R.O. 1990, Reg. 909, s. 32 (2); O. Reg. 712/92, s. 20 (2).

(3) Any special payments required as a result of a loss referred to in clause (2) (a) shall be included as payments required to be made by the employer under section 75 of the Act.  R.R.O. 1990, Reg. 909, s. 32 (3).

(4) Where a report made under this section shows that there is no further amount to be funded, any surplus may revert to the employer, subject to the requirements of section 79 of the Act.  R.R.O. 1990, Reg. 909, s. 32 (4).

32.1 (1) Until any liability under section 75.1 of the Act is funded, the administrator of a jointly sponsored pension plan shall annually cause the plan to be reviewed and a report to be prepared by a person authorized by section 15 and shall file the report within six months after the valuation date of the report.  O. Reg. 116/06, s. 18.

(2) A report required under subsection (1) shall show,

(a) the gain or the loss in the pension plan since the valuation date of the immediately preceding report as a result of differences between the actual experience and the experience anticipated by the assumptions made in the previous report; and

(b) the increase or decrease in the remaining special payments that will liquidate the gain or loss referred to in clause (a) over the remainder of the five-year period commencing from the effective date of the wind up.  O. Reg. 116/06, s. 18.

(3) Any special payments required as a result of a loss referred to in clause (2) (a) shall be included as payments required to be made according to section 75.1 of the Act.  O. Reg. 116/06, s. 18.

(4) Where a report made under this section shows that there is no further amount to be funded, any surplus shall be dealt with according to the terms and conditions of the pension plan.  O. Reg. 116/06, s. 18.

33. Where an order is made under subsection 83 (1) of the Act with respect to a pension plan that has been terminated or wound up and the employer is in the process of making the funding payments required under section 75 of the Act, the wind up funded ratio and the liability for benefits guaranteed by the Guarantee Fund shall be recalculated as of the date referred to in the order.  R.R.O. 1990, Reg. 909, s. 33; O. Reg. 307/98, s. 14.

34. (1) Where an order has been made under subsection 83 (1) of the Act in respect of a plan where the effective date of the wind up is before the Regulation date and when the order is made the Ontario assets of the plan are less than its Ontario wind up liability, the administrator shall provide benefits under the plan in accordance with this section as it read immediately before the Regulation date.  O. Reg. 712/92, s. 21; O. Reg. 307/98, s. 15 (1).

(2) Where an order has been made under subsection 83 (1) of the Act in respect of a plan where the effective date of the wind up is on or after the Regulation date and when the order is made the Ontario assets of the plan are less than its Ontario wind up liability, the administrator shall provide benefits under the plan in accordance with this section.  O. Reg. 712/92, s. 21; O. Reg. 307/98, s. 15 (2).

(3) For purposes of this section,

“modified Ontario wind up liability” means the Ontario wind up liability excluding any liability for benefits described in subsection 47 (2).  O. Reg. 712/92, s. 21.

(4) For purposes of this section,

“Guaranteed Benefit liability” means the total liability of the plan for benefits guaranteed by the Guarantee Fund and other amounts guaranteed by the Guarantee Fund, excluding the amount by which the contributions made by any member, plus interest, for such guaranteed benefits and other amounts exceeds the liability for the member’s guaranteed benefits and other amounts.  O. Reg. 712/92, s. 21.

(5) If, on the date an order is made under subsection 83 (1) of the Act in respect of a plan, the Ontario assets of the plan are less than its Ontario wind up liability, the administrator shall pay to each person entitled on wind up to payment of benefits guaranteed by the Guarantee Fund or other amounts guaranteed by the Guarantee Fund, the greater of,

(a) the sum of,

(i) 100 per cent of the benefits and other amounts for the person included in the calculation of the Guaranteed Benefit liability, and

(ii) the amount, determined under subsection (6), related to all other benefits for the person included in the calculation of the Ontario wind up liability; and

(b) the value of the person’s contributions to the plan plus interest.  O. Reg. 712/92, s. 21; O. Reg. 307/98, s. 15 (3).

(6) The amount referred to in subclause (5) (a) (ii) shall be determined as follows:

1. If the Ontario assets of a plan are less than its modified Ontario wind up liability, the amount to be used for purposes of subclause (5) (a) (ii) for the person shall be determined by,

i. calculating the ratio of the Ontario assets of the plan to its modified Ontario wind up liability, and

ii. multiplying the ratio obtained under subparagraph i by the value of 100 per cent of the benefits in respect of the person, included in the calculation of the modified Ontario wind up liability but not included in the calculation of the Guaranteed Benefit liability in respect of the person.

2. If the Ontario assets of a plan are equal to or exceed its modified Ontario wind up liability, the amount to be used for purposes of subclause (5) (a) (ii) for the person shall be the sum of,

i. 100 per cent of the benefits included in the calculation of the modified Ontario wind up liability in respect of the person but not included in the calculation of the Guaranteed Benefit liability for such person, and

ii. the total of the benefits referred to in subsection 47 (2) for the person, multiplied by the ratio of,

A. the amount by which the Ontario assets exceed the modified Ontario wind up liability,

to,

B. the amount by which the Ontario wind up liability exceeds the modified Ontario wind up liability.  O. Reg. 712/92, s. 21.

(7) On application by the administrator, the Superintendent shall allocate from the Guarantee Fund and pay to the plan sufficient money to provide, together with the Ontario assets, for the benefits determined under this section.  O. Reg. 712/92, s. 21; O. Reg. 307/98, s. 15 (4).

35. (1) A wind up report in respect of a defined benefit pension plan that is wound up in part shall, where the assets allocated to the wind up are not sufficient to pay all pension benefits and the benefits included in the wind up, be prepared in accordance with the requirements of section 30 as if the pension plan were being wholly wound up.  R.R.O. 1990, Reg. 909, s. 35 (1).

(2) The liability required to be funded under section 75 of the Act on the wind up in part of a pension plan providing defined benefits shall be the portion of the amount described in clause 75 (1) (b) of the Act as determined in the wind up report referred to in subsection (1) of this section attributable to members, former members and any other persons entitled to a benefit from the pension plan affected by the partial plan wind up.  O. Reg. 712/92, s. 22.

(3) The liability determined under subsection (2) shall be funded by the employer by special payments payable in equal amounts annually in advance over a period not exceeding five years from the effective date of the partial plan wind up.  O. Reg. 712/92, s. 22.

(4) Subsection (5) applies to a qualifying plan and to a plan with the following history:

1. An election was made in respect of the plan under subsection 5.1 (1) or (2).

2. The election was rescinded in accordance with subsection 5.1 (12).

3. After the date of the election but within five years after the date on which the election was rescinded, the plan was wound up in part.  O. Reg. 712/92, s. 22.

(5) For a qualifying plan or a plan with the history described in subsection (4), the liability to be funded under section 75 of the Act shall be funded by monthly special payments by the employer to the pension fund over a period of not more than one year beginning on the effective date of the partial plan wind up.  O. Reg. 712/92, s. 22.

36. Revoked:  O. Reg. 322/09, s. 3.

37. (1) An employer who is required to make contributions to a pension plan providing defined benefits, other than a designated plan or a plan described in subsection 6 (1), shall, subject to subsection 7 (4), pay to the Guarantee Fund on or before each assessment date an annual assessment determined in accordance with subsections (3) to (12).  O. Reg. 712/92, s. 23; O. Reg. 73/95, s. 7.

(1.1) Subsection (1) does not apply with respect to a jointly sponsored pension plan.  O. Reg. 413/07, s. 4 (1).

(2) For the purposes of this section, assessment dates shall be nine months after the last day of each fiscal year of the pension plan.  O. Reg. 712/92, s. 23.

(3) Revoked:  O. Reg. 413/07, s. 4 (2).

(4) Except for a plan to which subsection (6) applies, the amount of the annual assessment shall be equal to the lesser of,

(a) the sum of,

(i) the lesser of,

(A) the sum of $1 for each person who is an Ontario plan beneficiary at the end of the plan fiscal year immediately preceding the assessment date plus the amount calculated under subsection (5), or

(B) $100 multiplied by the number of persons who were Ontario plan beneficiaries at the end of the plan fiscal year immediately preceding the assessment date, and

(ii) zero, or, if an election under subsection 5 (18) is in effect on the assessment date, 2 per cent of the amount by which,

(A) the additional liability that would result if, on the valuation date of the last report filed or submitted on or before the assessment date under any of section 3, section 4, subsection 5.3 (1) or section 14 for the plan, all plant closure benefits and permanent layoff benefits under the plan were payable for those members in Ontario who, on that date, met the age and service requirements for such benefits,

exceeds,

(B) the amount, if any, by which the amount determined under clause (b) in the definition of PBGF assessment base exceeds the PBGF liabilities, both determined as of the valuation date referred to in sub-subclause (A); and

(b) $4,000,000.  O. Reg. 712/92, s. 23; O. Reg. 413/07, s. 4 (3).

(5) The amount referred to in sub-subclause (4) (a) (i) (A) shall be the sum of,

(a) 0.5 per cent of any portion of the PBGF assessment base that is less than 10 per cent of the PBGF liabilities;

(b) 1 per cent of any portion of the PBGF assessment base that is 10 per cent or more but less than 20 per cent of the PBGF liabilities; and

(c) 1.5 per cent of any portion of the PBGF assessment base that is 20 per cent or more of the PBGF liabilities.  O. Reg. 712/92, s. 23.

(6) If an election under subsection 5.1 (1) or (2) is in effect on the assessment date, the amount of the annual assessment shall be equal to the lesser of,

(a) the sum of,

(i) $1 for each person who is an Ontario plan beneficiary at the end of the plan fiscal year immediately preceding the assessment date,

(ii) 2.5 per cent of the PBGF assessment base, and

(iii) 2.5 per cent of the amount described in subclause 37 (4) (a) (ii); and

(b) $5,000,000.  O. Reg. 712/92, s. 23; O. Reg. 413/07, s. 4 (4).

(7) For the purposes of an assessment required under this section, the PBGF assessment base and the PBGF liabilities shall be as set out in the last report filed or submitted on or before the assessment date under any of section 3, 4, 13 or 14 for the plan.  O. Reg. 712/92, s. 23.

(8) Despite subsection (7), where a payment is made in respect of an assessment under this section and a report is filed or submitted under section 3, 4, 13 or 14 after the payment date with a valuation date earlier than the assessment date, the amount of the assessment required under this section shall be recalculated with the PBGF assessment base and PBGF liabilities as set out in the report and shall be paid on that basis.  O. Reg. 712/92, s. 23.

(9) Despite subsection (7), if a revised report under section 3, 13 or 14 is filed at the request of the Superintendent or is accepted by the Superintendent, the amount of the assessment required under this section shall be recalculated with the PBGF assessment base and PBGF liabilities as set out in the revised report and shall be paid on that basis.  O. Reg. 712/92, s. 23.

(10) Where a report referred to in subsection (8) or (9) is filed, an increase in the assessment resulting from a recalculation based on the report is payable sixty days after the date on which the report is filed.  O. Reg. 712/92, s. 23.

(11) A decrease in the assessment resulting from a recalculation shall be refunded.  O. Reg. 712/92, s. 23.

(12) If between the valuation date of the last report filed or submitted and the assessment date the employer has made special payments in excess of the minimum special payments required in accordance with that report, the PBGF assessment base shall be decreased for the purposes of an assessment required under this section by the amount of the excess special payments.  O. Reg. 712/92, s. 23.

(13) Despite subsections (3), (4) and (6), for a pension plan established less than three years earlier than the assessment date, excluding any plan that is a successor plan as described in subsection 80 (2) or section 81 of the Act, the amount of the assessment shall be zero.  O. Reg. 712/92, s. 23.

(14) An employer who fails to pay an amount due under this section within the time provided by this section shall pay 120 per cent of the amount to the Guarantee Fund, together with interest on the 120 per cent calculated from the date the amount is due to the date of payment, at a rate equal to 3 per cent plus the chartered banks’ rate on prime business loans as of the date the amount is due.  O. Reg. 712/92, s. 23.

(15) For the purposes of subsection (14), the chartered banks’ rate on prime business loans shall be determined from the Canadian Socio-Economic Information Management System (CANSIM) series V122495 compiled by Statistics Canada and available on the website maintained by the Bank of Canada.  O. Reg. 712/92, s. 23; O. Reg. 116/06, s. 19.

(16) An employer need not pay an amount due under this section on or after the Regulation date of $25 or less.  O. Reg. 712/92, s. 23.

Disclosure of Information

38. The information referred to in subsection 25 (1) of the Act shall be provided,

(a) to a person who becomes a member of a pension plan on the date the plan is established, within sixty days after the date the plan is established;

(b) to an employee who will become eligible to become a member of a pension plan, within sixty days prior to the date on which the person will become eligible; and

(c) to a person who is eligible to become a member of a pension plan upon commencing employment, within sixty days after the person commences employment.  R.R.O. 1990, Reg. 909, s. 38.

39. (1) The administrator shall transmit notice and an explanation of the amendment required under subsection 26 (3) of the Act, within sixty days after registration, to each member, former member or other person who is or will be affected by an amendment that is registered.  R.R.O. 1990, Reg. 909, s. 39 (1).

(2) Where an amendment is registered and the Superintendent dispenses with the notice required under subsection 26 (3) of the Act, the administrator shall provide notice and an explanation of the amendment to members with the next statement required under section 27 of the Act.  R.R.O. 1990, Reg. 909, s. 39 (2).

Annual Statement

40. (1) A statement required under section 27 of the Act shall contain, as recorded in the records of the administrator, at least,

(a) the name of the pension plan and its provincial registration number;

(b) the member’s name and date of birth;

(c) the period covered by the statement;

(d) the date on which the member joined the plan, and, except for multi-employer pension plans, the date on which the member was employed by the employer;

(e) the date or dates on which the member became fully vested or will become fully vested;

(f) the member’s normal retirement date under the plan;

(g) where applicable, the earliest date the member will be eligible to receive an unreduced pension;

(h) where applicable, the name of the person recorded as the member’s spouse;

(i) any person designated by the member as a beneficiary for the purposes of the pre-retirement death benefit under section 48 of the Act;

(j) a description of any benefits provided on the death of a member other than those required under section 44 or 48 of the Act and the name of any person designated as a beneficiary;

(k) the amount of required contributions, if any, made to the pension fund by a member during the period covered by the statement;

(l) the accumulated amount of required contributions, if any, made to the pension fund by the member, including interest credited to such contributions, to the end of the period covered by the statement;

(m) the amount of any additional voluntary contributions made by the member to the pension fund during the period covered by the statement;

(n) the accumulated amount of any additional voluntary contributions made by the member to the pension fund, including interest credited to such contributions, to the end of the period covered by the statement;

(o) in the case of a plan providing defined contribution benefits,

(i) the amount of employer contributions allocated to the member during the period covered by the statement, and

(ii) the accumulated amount of employer contributions, including interest credited to such contributions, allocated to the member, to the end of the period covered by the statement;

(p) in the case of a defined benefit plan,

(i) the member’s years of employment for the purpose of the calculation of pension benefits, determined as of the end of the period covered by the statement,

(ii) the annual amount of pension benefit payable at normal retirement date accrued at the end of the period covered by the statement,

(iii) where salary is a factor in determining a pension benefit, the salary level utilized for the purpose of determining the benefit, and

(iv) information as to whether the pension referred to in subclause (ii) is reduced by an amount of pension payable under the Canada Pension Plan, Quebec Pension Plan or Old Age Security Act (Canada);

(q) where applicable, a statement that special payments are being made to liquidate any liability;

(r) a statement setting out the treatment of any surplus in a continuing plan and on wind up;

(s) an explanation of any amendments affecting the member made to the pension plan during the period covered by the statement, if an explanation has not been provided under subsection 39 (1); and

(t) for multi-employer pension plans and pension plans that provide defined benefits where the obligation of an employer to contribute to the pension fund is limited to a fixed amount set out in a collective agreement,

(i) a statement that the pension benefits established under the pension plan are not guaranteed by the Guarantee Fund, and

(ii) a statement that if, on wind up of the plan, the assets of the plan are not sufficient to meet the liabilities of the plan, pension benefits may be reduced.  R.R.O. 1990, Reg. 909, s. 40 (1); O. Reg. 629/92, s. 7; O. Reg. 115/00, s. 4; O. Reg. 324/05, s. 7.

(2) The administrator shall provide the statement required under section 27 of the Act to members within six months after the fiscal year end of the plan.  R.R.O. 1990, Reg. 909, s. 40 (2).

Termination Statement — Deferred

41. (1) A written statement required to be given under section 28 of the Act to a member of a pension plan who terminates employment or ceases to be a member for reasons other than retirement or death and who is entitled to a deferred pension shall contain, as recorded on the records of the administrator, at least,

(a) the name of the pension plan and its provincial registration number;

(b) the member’s name and date of birth;

(c) the date on which the member joined the pension plan and the years of employment credited under the plan for the purpose of calculating the pension benefit;

(d) the member’s normal retirement date under the plan;

(e) the pension benefits and ancillary benefits to which the member is entitled on termination and any options respecting such benefits, including early, normal and postponed dates for commencement of the payment of benefits;

(f) where applicable, the name of the person recorded as the member’s spouse;

(g) any person designated by the member as a beneficiary for purposes of the pre-retirement death benefit under section 48 of the Act;

(h) benefits provided on the death of a member other than those required under section 44 or 48 of the Act and the name of any person designated as beneficiary;

(i) where applicable, the formula by which the deferred pension will be integrated with a pension payable under the Canada Pension Plan, Quebec Pension Plan or the Old Age Security Act (Canada) and the reduction or increase to the deferred pension as a result of such entitlement;

(j) any bridging benefit or special allowance and the date on which the benefit ceases to be paid;

(k) any indexation provisions applicable to the deferred pension;

(l) any benefit payable in the event of the member’s death, should the death occur prior to the commencement of payment of pension benefits;

(m) any benefit payable in the event of the member’s death, should the death occur after the commencement of payment of pension benefits;

(n) the transfer value of the deferred pension determined in accordance with subsection 19 (2);

(o) any options with respect to transfers available under section 42 of the Act and,

(i) the application of the transfer ratio determined under section 19 to the transfer option, and

(ii) where the transfer ratio is less than one, the amount that may be transferred out immediately and the manner in which the balance will be paid;

(p) the time periods in which any option must be exercised; and

(q) the amount of any refunds to which the member is entitled and information on the effect, if any, the member’s election to receive a refund would have on the member’s pension or deferred pension.  R.R.O. 1990, Reg. 909, s. 41 (1); O. Reg. 115/00, s. 5; O. Reg. 324/05, s. 8.

(2) The administrator shall provide the written statement referred to in subsection (1) within thirty days following the member’s termination of employment or cessation of membership in the plan or, where notice of termination or cessation is not provided to the administrator prior to the event, within thirty days after the administrator’s receipt of such notice.  R.R.O. 1990, Reg. 909, s. 41 (2).

Termination Statements Refunds

42. (1) The administrator shall provide a member of a pension plan who terminates employment or ceases to be a member of a pension plan for reasons other than retirement or death where the member is not entitled to a pension or deferred pension with a statement that contains, as recorded on the records of the administrator, at least,

(a) the name of the plan and its provincial registration number;

(b) the member’s name and date of birth;

(c) the dates on which the member joined the plan and ceased membership in the plan;

(d) the years of employment credited under the plan for the determination of pension benefits;

(e) the amount of any refund;

(f) any ancillary benefit to which the member may be entitled; and

(g) any option which the member is entitled to elect and the time period in which the option must be exercised.  R.R.O. 1990, Reg. 909, s. 42 (1).

(2) The administrator shall provide the statement referred to in subsection (1) within thirty days after the termination of employment or cessation of membership in the plan or, where notice of termination or cessation is not provided to the administrator prior to the event, within thirty days after the administrator’s receipt of such notice.  R.R.O. 1990, Reg. 909, s. 42 (2).

(3) Where no options are available to the member with respect to a refund, the administrator shall provide any refund to which the member is entitled within sixty days after the member’s termination of employment.  R.R.O. 1990, Reg. 909, s. 42 (3).

(4) Where the member has an option with respect to a refund, the administrator shall comply with the election made by the member within sixty days after receipt of a direction from the member.  R.R.O. 1990, Reg. 909, s. 42 (4).

Death/Survivor Benefits Statement

43. (1) The administrator shall, within thirty days after receipt of a notice of death of a member or a former member who is not receiving payments from the pension fund where the death results in the spouse, beneficiary or estate of the member or former member becoming entitled to a benefit, provide the spouse, beneficiary or legal representative with a statement that sets out at least,

(a) the name of the pension plan and its provincial registration number;

(b) the amount and method of payment of the benefit;

(c) the amount, if any, payable under subsection 39 (4) of the Act;

(d) where applicable, the basis for indexation of a pension;

(e) where applicable, the amount of the pension resulting from additional voluntary contributions; and

(f) in the case of a spouse, the options available under section 48 of the Act.  R.R.O. 1990, Reg. 909, s. 43 (1); O. Reg. 115/00, s. 6 (1); O. Reg. 324/05, s. 9 (1, 2).

(2) For purposes of subsection 48 (1) or (2) of the Act, a spouse shall make an election within ninety days after receipt of the notice referred to in subsection (1).  R.R.O. 1990, Reg. 909, s. 43 (2); O. Reg. 115/00, s. 6 (2); O. Reg. 324/05, s. 9 (3).

(3) The administrator of the plan shall comply with an election under subsection (2) within sixty days after receipt of the direction from the spouse.  R.R.O. 1990, Reg. 909, s. 43 (3); O. Reg. 115/00, s. 6 (3); O. Reg. 324/05, s. 9 (4).

Termination Statement — Retirement

44. (1) At least sixty days prior to a member’s normal retirement date or the date at which a member of a pension plan has indicated that he or she intends to retire, the administrator of the plan shall advise the member of any options respecting payment of the pension available to the member under the pension plan, the Act or the regulations and the time period in which the options may be exercised.  R.R.O. 1990, Reg. 909, s. 44 (1).

(2) An administrator who does not receive adequate advance notice of the intended retirement necessary to comply with subsection (1) shall provide the information referred to in subsection (1) within thirty days following receipt by the administrator of a completed application required for commencement of the pension.  R.R.O. 1990, Reg. 909, s. 44 (2).

(3) A written statement required under section 28 of the Act shall contain, as recorded on the records of the administrator, at least,

(a) the name of the pension plan and its provincial registration number;

(b) the member’s name and date of birth;

(c) the date on which the member joined the plan and the years of employment credited under the plan for purposes of calculating the pension benefit;

(d) where applicable, the name of the person recorded as the member’s spouse;

(e) the date pension benefits commence payment;

(f) the amount of the pension to which the member is or will be entitled according to the records of the administrator and based on elections made by the member;

(g) any increase or reduction in the pension resulting from early or postponed retirement;

(h) the amount of the pension benefit purchased with additional voluntary contributions made by the member;

(i) the amount of the pension benefit purchased with contributions resulting from a transfer made on behalf of the member from another pension fund;

(j) any integration of the pension entitlement with pensions payable under the Canada Pension Plan, Quebec Pension Plan or the Old Age Security Act (Canada) and the effect of such integration;

(k) any bridging benefits or special allowances and the date on which such ancillary benefits cease to be paid;

(l) any indexation provisions applicable to the pension or deferred pension;

(m) any benefit payable in the event of the member’s death and the name of the person designated as the beneficiary of that benefit; and

(n) any other refunds under the plan to which the member is entitled.  R.R.O. 1990, Reg. 909, s. 44 (3); O. Reg. 115/00, s. 7; O. Reg. 324/05, s. 10.

(4) The administrator shall provide the statement referred to in subsection (3) within thirty days after the member’s retirement or, where the administrator has not received notification prior to retirement, within thirty days after the administrator’s receipt of a completed application required for commencement of the pension.  R.R.O. 1990, Reg. 909, s. 44 (4).

Information Available on Request

45. (1) The following documents or information are prescribed for the purpose of sections 29 and 30 of the Act:

1. The provisions of the current pension plan including any amendments to the plan.

2. Any documents relating to the pension plan that must be filed in support of an application for registration of the plan under subsection 9 (2) of the Act (or under a predecessor to that subsection) or in support of an application for registration of an amendment to the plan under subsection 12 (2) of the Act (or under a predecessor to that subsection).

3. The provisions of any previous pension plan including amendments thereto where the current plan is a successor to a previous version of the plan.

4. Any documents relating to a previous version of the pension plan that must be filed in support of an application for registration of the plan under subsection 9 (2) of the Act (or under a predecessor to that subsection) or in support of an application for registration of an amendment to the plan under subsection 12 (2) of the Act (or under a predecessor to that subsection).

5. The applicable provisions of any document that sets out the employer’s responsibilities with respect to the pension plan.

6. A document that delegates the administration of the pension plan or pension fund.

7. Copies of any information returns that are filed in respect of the pension plan.

8. Copies of any financial statement or any report under section 3, 4, 5.3, 13 or 14 that are filed in respect of the pension plan.

9. Copies of correspondence in respect of the pension plan between the administrator and any of the following persons within five years before the date of the request, but not personal information that relates to a member or former member unless the consent of the member or former member is obtained:

i. the Commission or the Pension Commission of Ontario or a person employed in the Office of either of them,

ii. the Superintendent or the Superintendent of Pensions or a person employed in the Office of either of them.

10. Copies of those parts of an agreement that concern the purchase or sale of a business or the assets of a business and that relate to the pension plan.

11. Revoked:  O. Reg. 144/00, s. 25 (1).

12. Copies of any financial statement or audited financial statement for a pension fund that is filed.  R.R.O. 1990, Reg. 909, s. 45 (1); O. Reg. 712/92, s. 24; O. Reg. 307/98, s. 16 (1-3); O. Reg. 144/00, s. 25 (1).

(2) The following documents are prescribed for the purposes of section 29 of the Act:

1. Copies of any statement of investment policies and procedures for the plan that is established under Part II.  O. Reg. 144/00, s. 25 (2).

(3), (4) Revoked:  O. Reg. 307/98, s. 16 (4).

(5) The administrator shall comply with a written request under section 29 of the Act within thirty days after receipt of the request.  R.R.O. 1990, Reg. 909, s. 45 (5).

(6) A person making a request under section 29 or 30 of the Act is entitled to have access to those parts of the pension plan and other documents or information that are applicable to the person.  R.R.O. 1990, Reg. 909, s. 45 (6).

Notice to Spouse under Subsection 51 (5) of the Act

46. (1) An administrator who is provided with a certified copy of a domestic contract or court order under subsection 51 (5) of the Act shall, where the member named in the contract or order terminates employment, notify the person named in the order or contract that the member has terminated employment and provide a copy of the statement given to the member and advise the person of the options available under section 42 of the Act.  R.R.O. 1990, Reg. 909, s. 46 (1).

(2) The notification referred to in subsection (1) shall be made within thirty days after the administrator receives notification of the member’s termination of employment.  R.R.O. 1990, Reg. 909, s. 46 (2).

Exemptions

47. (1) Pension benefits provided by the following pension plans are not guaranteed by the Guarantee Fund and are exempted from subsection 18 (7) and sections 30 and 37:

1. The Improved Retirement Plan for the Employees of The Corporation of the City of Chatham.

2. The City of Etobicoke Pension Plan.

3. The Town of Gananoque Employees Pension Plan.

4. The Corporation of the City of Hamilton Municipal Retirement Fund.

5. The Hamilton-Wentworth Retirement Fund.

6. The Corporation of the City of Kitchener Pension Plan for Fire Department Employees.

7. Revoked:  O. Reg. 386/04, s. 9 (1).

8. The Corporation of the City of North Bay Employees’ Pension Plan.

8.1 The Registered Pension Plan for Employees of The Township of North Glengarry.

9. Revoked:  O. Reg. 413/07, s. 5.

10. The Ontario Public Service Employees’ Union Pension Plan.

11. The Corporation of the City of Oshawa Employees’ Pension Plan.

12. The City of Ottawa Superannuation Fund.

12.1 Public Service Pension Plan.

13. The Corporation of the Town of Tillsonburg Employees Pension Plan.

14. The Metropolitan Toronto Pension Plan.

15. The Municipality of Metropolitan Toronto Police Benefit Fund.

16. The Toronto Civic Employees Pension and Benefit Fund.

17. The Toronto Fire Department Superannuation and Benefit Fund.

18. The Corporation of the City of York Employee Pension Plan.  O. Reg. 73/95, s. 8 (1); O. Reg. 386/04, s. 9; O. Reg. 413/07, s. 5.

(2) Where the effective date of the wind up of a pension plan is on or after the Regulation date, the following pension benefits and ancillary benefits at the effective date of the wind up are not guaranteed by the Guarantee Fund:

1. Consent benefits, other than funded consent benefits.

2. Special allowances, other than funded special allowances.

3. Prospective benefit increases.

4. Escalated adjustments.

5. Potential early retirement window benefit values.

6. Plant closure benefits, other than plant closure benefits for which a member has met the age and service eligibility requirements.

7. Permanent layoff benefits, other than permanent layoff benefits for which a member has met the age and service eligibility requirements.  O. Reg. 712/92, s. 25 (1).

(2.1) The following are prescribed classes of pension plans for the purposes of paragraph 6 of section 85 of the Act:

1. Designated plans.

2. Pension plans for a period of five years following the time at which they cease to be designated plans.

3. Jointly sponsored pension plans.  O. Reg. 73/95, s. 8 (2); O. Reg. 116/06, s. 20.

(3) The following pension plans are exempted from the application of the Act and the regulations:

1. The Legislative Assembly Retirement Allowances Act.

1.1 The MPPs Pension Act, 1996.

2. The pension plan set out in Part II of Ontario Regulation 67/92 (Salaries and Benefits of Provincial Judges).

2.1 The non-registered supplemental pension plan for Justices of the Peace established by Order in Council 1902/09.

3. Pension plans under which annual retirement allowances are granted or purportedly granted under section 98 of the Municipal Act or section 179 of the Education Act.

4. A profit-sharing plan that was accepted for registration by the Minister of National Revenue for Canada before the 1st day of January, 1965 under the Income Tax Act (Canada) and that provided at the time of such acceptance that each member may take the member’s entire interest in the plan in a cash sum when the member ceases to be an employee whether by retirement or other termination of employment and that was exempted from the application of the Pension Benefits Act, being chapter 373 of the Revised Statutes of Ontario, 1980.

5. A retirement compensation arrangement as defined in subsection 248 (1) of the Income Tax Act (Canada).

6. A plan that provides only benefits that exceed the maximum benefit limits applicable to a pension plan that is registered under the Income Tax Act (Canada).

7. A plan that permits only contributions that are in excess of the maximum contribution limit applicable to a pension plan that is registered under the Income Tax Act (Canada).  R.R.O. 1990, Reg. 909, s. 47 (3); O. Reg. 69/92, s. 1; O. Reg. 665/94, s. 3 (1); O. Reg. 504/96, s. 1; O. Reg. 477/09, s. 1.

(4) Every employer who, on January 1, 1988, maintained a pension plan that provides defined benefits is exempt from subsection 19 (1) of the Pension Benefits Act, 1987 for the period ending December 31, 1994.  O. Reg. 785/93, s. 1.

(5) The parties to a collective agreement or arbitration award governing a pension plan described in subsection 19 (2) of the Pension Benefits Act, 1987 that provides defined benefits are exempt from that subsection for the period ending December 31, 1994.  O. Reg. 785/93, s. 1.

(6) Revoked:  O. Reg. 760/91, s. 1 (2).

(7) The administrator of a pension plan is exempt from the following provisions with respect to benefits provided under qualifying annuity contracts:

1. Subsection 42 (1) of the Act.

2. Section 24 of this Regulation.  O. Reg. 712/92, s. 25 (2).

(7.1) The administrator of a pension plan need not comply with section 14 with respect to a plan under which all benefits are provided under qualifying annuity contracts.  O. Reg. 712/92, s. 25 (2).

(8) Revoked:  O. Reg. 760/91, s. 1 (4).

(9) Every pension plan that, on the 1st day of January, 1989, did not provide for the withdrawal of surplus money while the pension plan continues in existence is exempt from subsection 79 (2) of the Act for the period ending on December 31, 1997.  O. Reg. 743/91, s. 2; O. Reg. 408/94, s. 1 (1).

(10) Every pension plan that, on the 1st day of January, 1989, did not provide for payment of surplus money on the wind up of the pension plan is exempt from subsection 79 (4) of the Act for the period ending on December 31, 1997.  O. Reg. 743/91, s. 2; O. Reg. 408/94, s. 1 (2).

(11) Subject to subsection (12), subsection 14 (1) of the Act does not apply to a pension plan with respect to an amendment that is required to avoid revocation of registration of the pension plan under the Income Tax Act (Canada).  O. Reg. 665/94, s. 3 (2).

(12) Subsection (11) does not apply with respect to an amendment unless, at least 60 days before the amendment is effective, the administrator of the pension plan gives the Superintendent notice of the amendment together with evidence that the amendment is required to avoid revocation of registration of the pension plan under the Income Tax Act (Canada).  O. Reg. 665/94, s. 3 (2).

(13) Subject to subsection (14), subsection 63 (1) of the Act does not apply to a refund of contributions to a member or former member of a pension plan if the refund is required to avoid revocation of registration of the pension plan under the Income Tax Act (Canada).  O. Reg. 665/94, s. 3 (2).

(14) Subsection (13) does not apply with respect to a refund unless, at least 60 days before the refund is made, the administrator of the pension plan gives the Superintendent notice of the refund together with evidence that the refund is required to avoid revocation of registration of the pension plan under the Income Tax Act (Canada).  O. Reg. 665/94, s. 3 (2).

(15) Subject to subsection (16), subsection 78 (1) of the Act does not apply to a pension fund with respect to a payment of money to an employer if the payment is required to avoid revocation of registration of the pension plan under the Income Tax Act (Canada).  O. Reg. 665/94, s. 3 (2).

(16) Subsection (15) does not apply with respect to a payment unless, at least 60 days before the payment is made, the administrator of the pension plan gives the Superintendent notice of the payment together with evidence that the payment is required to avoid revocation of registration of the pension plan under the Income Tax Act (Canada).  O. Reg. 665/94, s. 3 (2).

47.1 The Teachers’ Pension Plan continued under the Teachers’ Pension Act is exempted from the following:

1. Subsection 38 (1) of the Act.

2. Section 62 of the Act, with respect to investments made before the 1st day of January, 1992.

3. Paragraphs 2, 3, 4 and 5 of subsection 4 (4) of this Regulation.

4. Section 30 of this Regulation.

5. Section 37 of this Regulation.

6. Section 76 of this Regulation, with respect to the plan fiscal years that ended on the 31st day of March in 1989 and 1990.  O. Reg. 760/91, s. 2; O. Reg. 409/94, s. 6 (1).

47.2 The Public Service Pension Plan continued under the Public Service Pension Act is exempted from the following:

1. Subsection 22 (1) of the Act.

2. Section 62 of the Act.

2.1 Section 69 of the Act.

3. Paragraphs 2, 3, 4 and 5 of subsection 4 (4) of this Regulation.

4. Section 30 of this Regulation.

5. Section 37 of this Regulation.

6. Section 76 of this Regulation, with respect to the plan fiscal years that ended on the 31st day of March in 1989 and 1990.  O. Reg. 760/91, s. 2; O. Reg. 409/94, s. 6 (2); O. Reg. 343/95, s. 1.

47.3 The Ontario Public Service Employees’ Union Pension Plan established under the Ontario Public Service Employees’ Union Pension Act, 1994 is exempt from section 69 of the Act.  O. Reg. 343/95, s. 2.

47.3.1 The employers who are required to make contributions under the OMERS Supplemental Pension Plan for Police, Firefighters and Paramedics, registered under the Act as number 1175892, and the members of the pension plan are exempt from the requirement to make contributions under clause 4 (2) (a) with respect to any solvency deficiency under the plan and from the requirement to make special payments under clauses 4 (2) (c) and 4 (2.4) (b) with respect to any solvency deficiency under the plan.  O. Reg. 413/07, s. 6.

47.4 On and after March 31, 2006, section 5.1 of this Regulation does not apply with respect to the following pension plans and they are no longer qualifying plans under section 5.1:

1. Stelco Inc. Bargaining Unit Pension Plan for Members of United Steelworkers of America, registered under the Act as number 354878.

2. Stelco Inc. and Participating Subsidiaries Retirement Plan for Salaried Employees, registered under the Act as number 338509.

3. Stelco Inc. Bargaining Unit Pension Plan for Lake Erie Steel Company Members of United Steelworkers of America, registered under the Act as number 698761.

4. Stelco Inc. Retirement Plan for Lake Erie Steel Company Salaried Employees, registered under the Act as number 698753.  O. Reg. 100/06, s. 2.

47.5 Paragraph 3 of subsection 5.6 (4), paragraph 8 of subsection 5.6 (7) and section 5.7 do not apply in respect of the following plans:

1. Chrysler Canada Inc. Salaried Employees’ Retirement Plan (Registration No.:  0337774).

2. DaimlerChrysler Canada Inc. - CAW Non-Contributory Pension Plan for Hourly Employees - CAW Locals 444, 1090, 1459, 1498 and Local 1285 (Bramalea) (Registration No.:  0337782).

3. Parts Distribution Centres Non Contributory Pension Plan (Registration No.:  0337808).

4. Plant Guards and Nurses Non Contributory Pension Plan (Registration No.:  0992032).  O. Reg. 322/09, s. 4.

Significant Shareholder Plans

48. Subsection 14 (1) of the Act does not apply to a member of a defined benefit pension plan who is a significant shareholder where the employer providing the pension plan and the significant shareholder consent in writing to the non-application of section 14 of the Act and file the consent.  R.R.O. 1990, Reg. 909, s. 48.

Conflict of Interest — Multi-Employer Pension Plan

49. (1) Subsection 22 (4) of the Act does not apply to an administrator of a multi-employer pension plan who enters into a transaction with a trade union, council of trade unions, employer, employers’ association or an employee benefit trust fund in which a member of the board of trustees or committee holds any office or position, where the transaction is,

(a) only for purchase or lease of office space, for legal, accounting or other services, materials or equipment necessary for the administration and operation of the pension plan, provided that the compensation paid therefor is reasonable in the circumstances; and

(b) permitted under the documents that create and support the pension plan or any amendments thereto.  R.R.O. 1990, Reg. 909, s. 49 (1).

(2) Subsection 22 (4) of the Act does not apply to an administrator of a multi-employer pension plan or, where the administrator is a pension committee or a board of trustees, to a member of the committee or board who enters into a transaction, other than a transaction referred to in subsection (1), related to the administration of the pension plan or pension fund that,

(a) is in the interest of the members and former members of the pension plan;

(b) is protective of the rights of the members and former members of the pension plan;

(c) is permitted under the documents that create and support the pension plan;

(d) is disclosed to members and former members of the plan prior to entering into the transaction; and

(e) confers no direct or indirect personal benefit upon the administrator or member of the pension committee or board of trustees.  R.R.O. 1990, Reg. 909, s. 49 (2).

Notices and Summaries re Contributions — Multi-Employer Pension Plan

49.1 The following provisions do not apply with respect to a multi- employer pension plan established pursuant to a collective agreement, a trust agreement, a statute or a municipal by-law:

1. Subsection 56 (2) of the Act (notice that contributions not paid when due).

2. Section 56.1 of the Act (summary of required contributions, etc.).  O. Reg. 144/00, s. 26.

Miscellaneous
Integration Formula

50. For purposes of section 54 of the Act, the reduction of a pension or a deferred pension that may be required by a pension plan in relation to benefits under the Canada Pension Plan, the Quebec Pension Plan or the Old Age Security Act (Canada) shall not exceed,

(a) if the plan has a Canada Pension Plan or Quebec Pension Plan offset, an amount calculated according to the following formula:

A × (B / 35)

where,

A = the amount of pension that would be payable to the person under the Canada Pension Plan or the Quebec Pension Plan, calculated as of the date of termination of the person’s employment or membership and calculated as if the person had reached 65 years of age at the date of termination,

B = the number of years, not exceeding thirty-five, including parts of a year, of employment credited to the person under the pension plan; and

(b) if the plan has, prior to the 1st day of January, 1987, an offset for the Old Age Security Act (Canada), an amount calculated according to the following formula:

C × (D / 35)

where,

C = the amount of pension payable under the Old Age Security Act (Canada) calculated as of the date of termination of the person’s employment or membership,

D = the number of years, not exceeding thirty-five, including parts of a year, of employment credited to the person under the pension plan before the 1st day of January, 1987.

R.R.O. 1990, Reg. 909, s. 50; O. Reg. 144/00, s. 27.

Reduction of Bridging Benefits

51. (1) The amount or value of a bridging benefit that a member or former member is receiving or for receipt of which a member or former member has satisfied all eligibility requirements shall not be reduced only by reason of the eligibility or entitlement of the member or former member to receive actuarially reduced payments prior to attaining the age of sixty-five years under the Canada Pension Plan, the Quebec Pension Plan or the Old Age Security Act (Canada).  R.R.O. 1990, Reg. 909, s. 51 (1).

(2) The age at which a bridging benefit shall be deemed to be reduced or cease to be paid in a pension plan that provides a bridging benefit without reference to a specific age at which the benefit is reduced or ceases is sixty-five years of age  R.R.O. 1990, Reg. 909, s. 51 (2).

(3) Subsection (2) does not apply to a pension plan that is amended after the 31st day of December, 1986 to establish a specific age prior to the attainment of sixty-five years or to provide for the occurrence of a specific event for the purpose of determining when a bridging benefit shall be reduced or cease to be paid.  R.R.O. 1990, Reg. 909, s. 51 (3).

51.1 (1) This section applies with respect to a variation in the terms of payment of a pension or deferred pension under subsection 49 (2) of the Act (shortened life expectancy).  O. Reg. 144/00, s. 28.

(2) The following are prescribed as the circumstances of shortened life expectancy in which a pension plan shall be deemed to permit variation in the terms of payment of a pension or deferred pension:

1. A former member has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years.  O. Reg. 144/00, s. 28.

(3) The following are the prescribed conditions that must be satisfied for the purposes of subsection 49 (2) of the Act:

1. An application must be made to the administrator of the pension plan for the withdrawal from the pension fund of all of the commuted value of the former member’s pension or deferred pension.

2. The application must be signed by the former member and be accompanied by the following documents:

i. A statement signed by a physician who is licensed to practise medicine in a jurisdiction in Canada that, in the opinion of the physician, the former member has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years.

ii. A declaration described in subsection (4) or (4.1), as the case may be, about a spouse.  O. Reg. 144/00, s. 28; O. Reg. 242/00, s. 4 (1); O. Reg. 324/05, s. 12 (1).

(4) If the application is made before the due date of the first instalment of the pension, any of the following documents constitutes a declaration about a spouse:

1. A statement signed by the former member’s spouse, if any, that the spouse consents to the withdrawal from the pension fund.

2. A statement signed by the former member attesting to the fact that he or she does not have a spouse.

3. A statement signed by the former member attesting to the fact that he or she is living separate and apart from his or her spouse on the date the former member signs the application to make the withdrawal from the pension fund.  O. Reg. 324/05, s. 12 (2).

(4.1) If the application is made on or after the due date of the first instalment of the pension, any of the following documents constitutes a declaration about a spouse:

1. A statement, signed by the person, if any, who was the former member’s spouse on the due date of the first instalment of the pension, that the person consents to the withdrawal from the pension fund.

2. A statement signed by the former member attesting to the fact that on the due date of the first instalment of the pension,

i. he or she did not have a spouse,

ii. he or she was living separate and apart from his or her spouse, or

iii. a waiver of the entitlement to receive payment of pension benefits in the form of a joint and survivor pension, delivered under section 46 of the Act by the former member and his or her spouse, was in effect.  O. Reg. 324/05, s. 12 (2).

(5) A declaration about a spouse is a nullity if it is signed by the former member or his or her spouse more than 60 days before the administrator receives it.  O. Reg. 324/05, s. 12 (2).

(6) When the administrator receives a document required by this section, the administrator shall give the former member a receipt for the document stating the day on which it was received.  O. Reg. 144/00, s. 28.

Variation of Pension Benefits

52. (1) The age at which a variation shall be deemed to occur in a pension plan that provides that a pension benefit may be varied as the result of retirement benefits payable under the Canada Pension Plan or the Quebec Pension Plan where the pension plan does not state the specific age at which the variation is to occur is sixty-five years of age.  R.R.O. 1990, Reg. 909, s. 52 (1).

(2) Subsection (1) does not apply to a pension plan that is amended after the 31st day of December, 1986 to establish a specific age or to provide for the occurrence of a specific event for variation of the pension benefit prior to the recipient attaining sixty-five years of age.  R.R.O. 1990, Reg. 909, s. 52 (2).

(3) A pension plan that provides a pension benefit that may be varied as a result of a recipient’s entitlement to a retirement pension under the Canada Pension Plan or the Quebec Pension Plan prior to attaining the age of sixty-five years shall take into account the adjustment made to the retirement pension under the Canada Pension Plan or the Quebec Pension Plan.  R.R.O. 1990, Reg. 909, s. 52 (3).

Individual Level Premium Contracts

53. A deferred pension referred to in sections 36 and 37 of the Act provided under a pension plan that is insured by individual level premium contracts may, in the case of an individual level premium contract issued prior to the qualification date, be equal to the paid up annuity under the contract arising from contributions made with respect to employment on or after the qualification date if the special payments required with respect to the deferred pension under the contract have all been paid or will continue to be paid.  R.R.O. 1990, Reg. 909, s. 53.

Pension Fund Trustee

54. A pension fund shall be administered only,

(a) by a government;

(b) by an insurance company;

(c) by a trust in Canada governed by a written trust agreement under which the trustees are,

(i) a trust corporation registered under the Loan and Trust Corporations Act,

(ii) three or more individuals, at least three of whom reside in Canada and at least one of whom is independent of any employer contributing to the pension fund, to the extent the individual is neither a significant shareholder, partner, proprietor, director, officer, nor an employee of an employer contributing to the fund or an affiliate of the employer, or

(iii) a corporate pension society (established under the Pension Fund Societies Act (Canada));

(d) under the Government Annuities Act (Canada);

(e) by a board, agency, commission or corporation made responsible by an Act of the Legislature for the administration of the pension fund; or

(f) by any combination referred to in clauses (a) to (e).  R.R.O. 1990, Reg. 909, s. 54.

Plan Fiscal Year End

55. (1) Unless otherwise stated in the pension plan documents, the fiscal year of a pension plan shall be deemed to commence on the 1st day of January and end on the 31st day of December.  R.R.O. 1990, Reg. 909, s. 55 (1).

(2) No fiscal year of a pension plan shall exceed twelve months.  R.R.O. 1990, Reg. 909, s. 55 (2).

Accrual During Period Member had Spouse

56. (1) For purposes of subsection 51 (2) of the Act, the pension benefits accrued during the period a member had a spouse shall be determined as if the member terminated employment at the valuation date in accordance with the terms of the plan at that date and without consideration of future benefits, salary or changes to the plan but with consideration for the possibility of future vesting.  R.R.O. 1990, Reg. 909, s. 56; O. Reg. 115/00, s. 10; O. Reg. 324/05, s. 13 (2).

(2) In this section,

“valuation date” means the valuation date as defined in subsection 4 (1) of the Family Law Act.  O. Reg. 386/04, s. 10.

Filing of Reciprocal Transfer Agreements

57. The administrator of a pension plan shall submit for filing a certified copy of any reciprocal agreement entered into on or after the 1st day of January, 1988 within sixty days after the execution of the agreement.  R.R.O. 1990, Reg. 909, s. 57.

Additional Ancillary Benefits

58. The following are prescribed as ancillary benefits for purposes of section 40 of the Act:

1. Survivor benefits in excess of those required under subsection 44 (3) of the Act.

2. Any vesting provisions in excess of those required under sections 35, 36 and 37 of the Act.  R.R.O. 1990, Reg. 909, s. 58.

Refund of Contributions not Locked in

59. Subsection 63 (1) of the Act does not apply to a refund to a person who is entitled to a pension or deferred pension of contributions made to a pension plan that provides,

(a) in respect of contributions made prior to the 1st day of January, 1987, vesting prior to the member reaching the age of forty-five years and having ten years of employment with the employer or ten years of membership in the plan;

(b) in respect of contributions made on or after the 1st day of January, 1987, vesting prior to twenty-four months membership in the plan; and

(c) for the refund of contributions made prior to a vesting period referred to in clause (a) or (b).  R.R.O. 1990, Reg. 909, s. 59.

60. Revoked:  O. Reg. 570/06, s. 7.

Apportionment of Benefits — Final Average or Best Average Earnings Plans

61. For purposes of section 39 of the Act, the portion of the pension benefit attributable to employment after the 1st day of January, 1987 in a pension plan that provides a pension benefit based on a rate of remuneration of a plan member as of the date that the plan member terminates employment or that is based on an average of the rates of remuneration of a plan member over a specified or limited time period up to the date the plan member terminates employment is,

(a) the pension benefit,

less,

(b) the pension benefit calculated in accordance with the terms of the plan at the 31st day of December, 1986 using the rate of remuneration of the plan member as of the date of termination of employment or the average of the rates of remuneration of the plan member over the specified or limited time period, as the case may be.  R.R.O. 1990, Reg. 909, s. 61.

Reciprocal Transfer Agreement — 50 Per cent Rule

62. Subsection 39 (3) of the Act does not apply to the transfer of money or credits from one pension plan to another plan in accordance with a reciprocal transfer agreement.  R.R.O. 1990, Reg. 909, s. 62.

Offsets from Pre-Retirement Death Benefits

63. (1) A pension plan may provide for the reduction of an entitlement under section 48 of the Act by an amount equal to that part of a group life insurance payment payable on the death of the member or former member that can be considered to have been paid by employer premiums.  R.R.O. 1990, Reg. 909, s. 63 (1).

(2) An entitlement under section 48 of the Act shall not be offset by an amount greater than the group life insurance payment times the rate of the employer paid cost of the group life insurance policy to the total cost of the policy for the relevant class of employees, taking into account in both the numerator and the denominator the ratio of any experience or other refunds.  R.R.O. 1990, Reg. 909, s. 63 (2).

(3) The ratio referred to in subsection (2) shall be averaged over a period not exceeding five years.  R.R.O. 1990, Reg. 909, s. 63 (3).

(4) The actuarial present value of a reduction to an entitlement under section 48 of the Act may not exceed the amount of the payment under the group life insurance plan.  R.R.O. 1990, Reg. 909, s. 63 (4).

(5) In the case of a pension plan that provides contributory benefits, the reduction referred to in subsection (1) shall not reduce an entitlement under section 48 of the Act to less than the aggregate of the required contributions of the member or former member, with interest in accordance with section 24.  R.R.O. 1990, Reg. 909, s. 63 (5).

(6) A reduction under this section may not be made unless the group life insurance contract provides for payment of the insurance payment to the spouse of a member or former member, where there is a spouse at the date of death or the spouse has waived the insurance payment.  O. Reg. 324/05, s. 14.

(7) Subsection 48 (11) of the Act does not apply to pension plans that provide defined contribution benefits.  R.R.O. 1990, Reg. 909, s. 63 (7).

Survivor Benefits

64. A bridging benefit need not be taken into account when calculating,

(a) the amount of a pension for purposes of subsection 44 (3) of the Act; or

(b) the commuted value of a deferred pension or a pension benefit under section 48 of the Act.  R.R.O. 1990, Reg. 909, s. 64.

Pre-requisite for Advisory Committee

65. Prior to the establishment of an advisory committee under section 24 of the Act, all members and former members of the plan shall be notified that a vote for the establishment of an advisory committee will be held and that the members and former members will be given the opportunity to participate in the vote.  R.R.O. 1990, Reg. 909, s. 65.

Election or Rescission by One Employer

65.1 Where there is more than one employer for a plan, other than a multi-employer pension plan, an election or rescission under this Part by one employer for the plan shall be deemed to have been made by all employers for the plan.  O. Reg. 712/92, s. 26.

PART II
PENSION FUND REQUIREMENTS

66. (1) In this Part,

“federal investment regulations” means sections 6, 7, 7.1 and 7.2 and Schedule III to the “Pension Benefits Standards Regulations, 1985” made under the Pension Benefits Standards Act, 1985 (Canada) as it read on December 31, 1999; (“règlement fédéral sur les placements”)

“Ontario investment rules” means this Part as it read on December 30, 1999. (“règles ontariennes sur les placements”)  O. Reg. 144/00, s. 29.

(2) For the purposes of this Part, a reference in the federal investment regulations to the Superintendent shall be deemed to be a reference to the Superintendent as defined in section 1 of the Pension Benefits Act.  O. Reg. 144/00, s. 29.

(3) For the purposes of this Part, a reference in the federal investment regulations to a person’s spouse shall be deemed to be a reference to his or her spouse as defined in section 1 of the Pension Benefits Act.  O. Reg. 324/05, s. 15.

67.-75. Revoked:  O. Reg. 144/00, s. 29.

76. (1) The administrator shall file financial statements for the pension fund or plan as at the plan’s fiscal year end.  R.R.O. 1990, Reg. 909, s. 76 (1); O. Reg. 307/98, s. 17.

(2) If, at the fiscal year end of a pension plan, the plan has $3,000,000 or more in assets calculated at market value, the administrator shall file an auditor’s report respecting the financial statements.  O. Reg. 712/92, s. 27.

(3) The auditor’s report referred to in subsection (2) shall be prepared by an accountant.  R.R.O. 1990, Reg. 909, s. 76 (3).

(4) The financial statements and the auditor’s report shall be filed within six months after each fiscal year end of the plan occurring on or after the 31st day of December, 1988.  R.R.O. 1990, Reg. 909, s. 76 (4).

(5) The financial statements shall be comprised of a statement of net assets and a statement of changes in net assets and shall be prepared on the accrual basis of accounting.  R.R.O. 1990, Reg. 909, s. 76 (5).

(6) The financial statements shall be prepared in accordance with generally accepted accounting principles.  R.R.O. 1990, Reg. 909, s. 76 (6).

(7) The auditor’s report referred to in subsection (2) shall be prepared in accordance with generally accepted auditing standards.  R.R.O. 1990, Reg. 909, s. 76 (7).

(8) Subject to the requirements of this section, the financial statements and the auditor’s report shall be prepared in accordance with the principles and standards set out in the Handbook of the Canadian Institute of Chartered Accountants.  R.R.O. 1990, Reg. 909, s. 76 (8).

(9) The financial statements shall identify,

(a) the name of the pension plan for which the statements have been prepared;

(b) the registration number of the pension plan in Ontario; and

(c) the fiscal period for which the financial statements have been prepared.  R.R.O. 1990, Reg. 909, s. 76 (9).

(10) The statement of net assets referred to in subsection (5) shall disclose at least,

(a) the market value and book value of each category of investments referred to in subsection (11) at the beginning and end of the period to which the statement refers;

(b) income accrued and not yet received;

(c) payments due and payable by,

(i) the employer or employers, and

(ii) members; and

(d) amounts payable, indicating by whom the amounts are payable and their nature and amount.  R.R.O. 1990, Reg. 909, s. 76 (10).

(11) For the purposes of clause (10) (a), when book values are not maintained in the records of the plan, the carrying value in the records of the plan shall be shown in lieu thereof.  R.R.O. 1990, Reg. 909, s. 76 (11).

(12) For the purposes of clause (10) (a), investments shall be itemized according to the following categories:

1. Insured contracts.

2. Mutual or pooled funds or segregated funds.

3. Demand deposits and cash on hand.

4. Short-term notes and treasury bills.

5. Term deposits and guaranteed investment certificates.

6. Mortgage loans.

7. Real estate.

8. Real estate debentures.

9. Resource properties.

10. Venture capital.

11. Corporations referred to in subsection 11 (2) of Schedule III to the federal investment regulations.

12. Employer issued securities.

13. Canadian stocks other than investments referred to in paragraphs 1 to 12.

14. Non-Canadian stocks other than investments referred to in paragraphs 1 to 12.

15. Canadian bonds and debentures other than investments referred to in paragraphs 1 to 12.

16. Non-Canadian bonds and debentures other than investments referred to in paragraphs 1 to 12.

17. Investments other than investments referred to in paragraphs 1 to 16.  R.R.O. 1990, Reg. 909, s. 76 (12); O. Reg. 144/00, s. 30.

(13) The financial statements shall disclose,

(a) related party transactions as recommended in the Handbook of the Canadian Institute of Chartered Accountants;

(b) for individual investments where either the book value or the market value exceeds 1 per cent of the book value or market value of the pension fund, information with respect to each category of investments reported under clause (10) (a) that sets out,

(i) for insured contracts, the insurance company name and type of contract,

(ii) for mutual or pooled funds or segregated funds, the name of the operator of each fund, the name of each fund, the primary category of investments held in each fund and the market value of the investment in each fund,

(iii) for term deposits and guaranteed investment certificates, the name of the entity where the funds are on deposit and the aggregate market value or book or carrying value of the investments with each entity,

(iv) for real estate, the date of the last valuation of each parcel of real estate and the market value and book or carrying value of each parcel,

(v) for resource properties, the date of the last valuation of each parcel of resource property and the market value and book or carrying value of each parcel,

(vi) for real estate, resource property, venture capital or other special purpose corporation, the name and purpose of each corporation, percentage ownership and the market value of each investment,

(vii) for employer issued securities, including stocks and bonds, whether or not they are traded publicly,

(viii) for investments other than those referred to in subclauses (i) to (vii), the type of investment; and

(c) the extent to which the assets of the pension fund are subject to options and future contracts.  R.R.O. 1990, Reg. 909, s. 76 (13).

(14) The statement of changes in net assets referred to in subsection (5) shall include a reconciliation between the market value of total investments at the beginning and end of the period and shall disclose at least,

(a) unrealized gains or losses on total investments;

(b) realized gains or losses on total investments;

(c) investment income by category of investments;

(d) revenue items in addition to those items referred to in clauses (a), (b) and (c), setting out the nature and amount of the item;

(e) contributions from employers indicating the contributions for normal costs and special payments;

(f) contributions from members;

(g) audit costs, including fees and expenses;

(h) administration fees, including amounts paid to and on behalf of the administrator;

(i) professional fees, other than auditor’s fees or administrator’s fees;

(j) administrative expenses other than those referred to in clauses (g), (h) and (i);

(k) benefit payments; and

(l) refunds and transfers, indicating their nature and amounts.  R.R.O. 1990, Reg. 909, s. 76 (14).

(15) The auditor shall report to the administrator immediately when, in the course of reporting on the financial statements, he or she becomes aware that there are circumstances that indicate that there has or may have been a contravention of this Part.  R.R.O. 1990, Reg. 909, s. 76 (15).

(16) The auditor shall report to the Superintendent any matter reported under subsection (15) that in the opinion of the auditor is significant and has not been corrected within thirty days after the date that the matter was first reported to the administrator.  R.R.O. 1990, Reg. 909, s. 76 (16).

(17) A financial statement submitted for filing shall be approved by the administrator and the approval shall be evidenced by the manual or facsimile signature of,

(a) the administrator;

(b) where the administrator is a pension committee, board of trustees or a board, agency or commission acting as the administrator, two members duly authorized to signify the approval; or

(c) where the administrator is an insurance company, an officer of the company duly authorized to sign on behalf of the insurance company.  R.R.O. 1990, Reg. 909, s. 76 (17).

77. Revoked:  R.R.O. 1990, Reg. 909, s. 77 (6). (See: O. Reg. 144/00, s. 31.)

78. (1) Beginning on January 1, 2001, the administrator of a pension plan shall establish a statement of investment policies and procedures for the plan that meets the requirements of the federal investment regulations.  O. Reg. 144/00, s. 31.

(2) The federal investment regulations apply with respect to the statement of investment policies and procedures for the plan.  O. Reg. 144/00, s. 31.

79. Beginning on January 1, 2001, the assets of every pension plan shall be invested in accordance with the federal investment regulations, despite the provisions of the plan or an instrument governing the plan.  O. Reg. 144/00, s. 31.

80. Revoked:  R.R.O. 1990, Reg. 909, s. 80 (3). (See: O. Reg. 144/00, s. 31.)

81., 82. Revoked:  O. Reg. 144/00, s. 31.

PART III
COMMUTATION OR SURRENDER IN CIRCUMSTANCES OF FINANCIAL HARDSHIP

83. (1) In this Part,

“application” means an application under this Part; (“demande”)

“housing unit” means,

(a) a house,

(b) a condominium unit,

(c) an apartment or other unit in a multi-residential property,

(d) a cottage,

(e) a mobile home,

(f) a trailer, or

(g) a houseboat; (“logement”)

“medical expenses” means expenses for goods and services of a medical or dental nature including, without limiting the generality of the foregoing, expenses for,

(a) medical or dental services provided by a hospital or a health care provider,

(b) services provided by an attendant or by a long-term care home, as defined in subsection 2 (1) of the Long-Term Care Homes Act, 2007 to a person suffering a severe and prolonged disability,

(c) services provided by a caregiver,

(d) ambulance services,

(e) travel by a person and a companion to obtain medical services,

(f) finding an organ donor,

(g) medical devices such as wheel chairs, artificial limbs and eyeglasses,

(h) a guide dog or hearing ear dog,

(i) dentures,

(j) rehabilitative therapy,

(k) prescription drugs, and

(l) diagnostic testing;  (“frais médicaux”)

“principal residence”, when used in connection with a person, means a property that,

(a) is a housing unit, a leasehold interest in a housing unit or a share in the capital stock of a co-operative housing corporation acquired for the sole purpose of acquiring the right to inhabit a housing unit owned by the corporation, and

(b) is ordinarily inhabited by the person in the calendar year in which the application is signed or in the following calendar year. (“résidence principale”)  O. Reg. 242/00, s. 5; O. Reg. 447/09, s. 5.

(2) For the purposes of an application, a person may have only one principal residence.  O. Reg. 242/00, s. 5.

(3) For the purposes of an application, a person is a dependant if he or she,

(a) was dependent on the owner or the owner’s spouse for support at some time during the calendar year in which the application is signed or during the previous calendar year; and

(b) is the child, grandchild, parent, grandparent, brother, sister, uncle, aunt, niece or nephew of,

(i) the owner, or

(ii) the owner’s spouse, unless the owner and spouse were living separate and apart on the date the application was signed.  O. Reg. 324/05, s. 16.

84. The following prescribed retirement savings arrangements are prescribed for the purposes of subsection 67 (5) of the Act:

1. A life income fund.

2. A locked-in retirement account.

3. A locked-in retirement income fund.  O. Reg. 242/00, s. 5.

85. (1) An application shall be completed in a form approved by the Superintendent, signed by the owner of the retirement savings arrangement and submitted to the Superintendent.  O. Reg. 242/00, s. 5.

(2) The application shall request that the consent authorize the withdrawal of,

(a) the amount calculated under this Part, which shall not be less than $500;

(b) the amount of any withholding tax; and

(c) the amount of any related fee approved by the Minister.  O. Reg. 242/00, s. 5.

(3) The application shall be accompanied by one of the following statements:

1. A statement signed by the owner’s spouse, if any, that the spouse consents to the withdrawal.

2. A statement signed by the owner attesting to the fact that the owner does not have a spouse.

3. A statement signed by the owner attesting to the fact that the owner is living separate and apart from his or her spouse on the date the owner signs the application.

4. A statement signed by the owner attesting to the fact that none of the money in the retirement savings arrangement is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.  O. Reg. 324/05, s. 17 (1).

(4) The application shall be accompanied by the owner’s signed statement that he or she understands that any funds released under the consent will not be exempt from execution, seizure or attachment under section 66 of the Act.  O. Reg. 242/00, s. 5.

(5) The application shall relate to only one retirement savings arrangement.  O. Reg. 242/00, s. 5.

(6) The application shall be accompanied by a copy of the most recent statement issued by the financial institution that administers the retirement savings arrangement.  O. Reg. 242/00, s. 5.

(7) The owner shall provide accurate and complete information in the application and accompanying documents.  O. Reg. 242/00, s. 5.

(8) Before giving his or her consent under subsection 67 (5) of the Act, the Superintendent may require, if he or she considers it necessary,

(a) additional evidence of the circumstances of financial hardship;

(b) any other information with respect to the application and accompanying documents, to assist in understanding them and to verify their authenticity.  O. Reg. 242/00, s. 5.

(9) The owner shall provide the additional evidence and other information in the form and manner that the Superintendent specifies.  O. Reg. 242/00, s. 5.

(10) The Superintendent is entitled to rely on the information provided in the application and accompanying documents as well as on any additional evidence and other information provided under subsection (9).  O. Reg. 242/00, s. 5.

(11) A document is a nullity for the purposes of this Part if it is,

(a) signed more than 60 days before the Superintendent receives it, in the case of a document that requires the signature of the owner or his or her spouse;

(b) signed or dated more than 12 months before the Superintendent receives it, in all other cases.  O. Reg. 242/00, s. 5; O. Reg. 324/05, s. 17 (2).

86. (1) The Superintendent’s consent under subsection 67 (5) of the Act authorizes the financial institution that administers the retirement savings arrangement to pay, in accordance with the consent,

(a) the specified amount, net of any withholding tax and fee, to the owner; and

(b) the amount of any related fee approved by the Minister, net of withholding tax, to the Minister.  O. Reg. 242/00, s. 5.

(2) The specified amount may be paid in the form of,

(a) a lump sum payment;

(b) monthly instalments; or

(c) a combination of lump sum payment and monthly instalments.  O. Reg. 242/00, s. 5.

(3) The financial institution shall make the payment, or the first payment, as the case may be, within 30 days after receiving the Superintendent’s consent.  O. Reg. 242/00, s. 5.

(4) The consent is a nullity for the purposes of this Part if the financial institution receives it more than 12 months after the date the Superintendent signs it.  O. Reg. 242/00, s. 5.

87. (1) The following circumstances of financial hardship are prescribed for the purposes of subsection 67 (5) of the Act:

1. The owner or his or her spouse has received a written demand in respect of arrears in the payment of rent on the owner’s principal residence, and the owner could face eviction if the debt remains unpaid.

2. The owner or his or her spouse has received a written demand in respect of a default on a debt that is secured against the owner’s principal residence, and the owner could face eviction if the debt remains unpaid.

3. The owner, his or her spouse or a dependant has incurred or will incur medical expenses for treatment of the illness or physical disability of any of them, and the expenses claimed are reasonable and are not subject to reimbursement from any other source.

4. The owner, his or her spouse or a dependant will incur or has incurred expenses for renovations or alterations to the owner’s principal residence made necessary by the illness or physical disability of any of them, and the expenses claimed are reasonable and are not subject to reimbursement from any other source.

5. The owner, his or her spouse or a dependant will incur or has incurred expenses for renovations or alterations to the dependant’s principal residence made necessary by the dependant’s illness or physical disability, and the expenses claimed are reasonable and are not subject to reimbursement from any other source.

6. The owner or his or her spouse requires money to pay the first and last months’ rent to obtain a principal residence for the owner.

7. The owner’s expected total income from all sources before taxes for the 12-month period following the date of signing the application is 66⅔ per cent or less of the Year’s Maximum Pensionable Earnings for the year in which the application is signed.  O. Reg. 242/00, s. 5; O. Reg. 324/05, s. 18.

(2) Paragraphs 4 and 5 of subsection (1) also apply, with necessary modifications, to any additional expenses in the construction of a principal residence that are made necessary by a person’s illness or physical disability.  O. Reg. 242/00, s. 5.

(3) Despite subsection (1), a circumstance relating to expenses incurred or to be incurred for the benefit of a spouse does not constitute a circumstance of financial hardship for the purposes of subsection 67 (5) of the Act if the owner and the spouse are living separate and apart on the date the application is signed.  O. Reg. 242/00, s. 5.

(4) In an application relating to paragraph 1 of subsection (1), the owner may apply for one or both of the following:

1. Consent to withdraw an amount sufficient to pay the arrears and reinstate the tenancy.

2. Consent to withdraw,

i. a lump sum covering 12 monthly rent payments, or

ii. 12 monthly instalments, each to cover one monthly rent payment.  O. Reg. 242/00, s. 5.

(5) In an application relating to paragraph 2 of subsection (1), the owner may apply for one or both of the following:

1. Consent to withdraw an amount sufficient to pay the arrears and bring the debt into good standing.

2. Consent to withdraw,

i. a lump sum covering 12 monthly debt payments, or

ii. 12 monthly instalments, each to cover one monthly debt payment.  O. Reg. 242/00, s. 5.

(6) In an application relating to paragraph 3 of subsection (1), the owner may apply for one or both of the following:

1. Consent to withdraw an amount sufficient to pay medical expenses incurred or to be incurred.

2. Consent to withdraw,

i. a lump sum covering 12 monthly payments for medical expenses, or

ii. 12 monthly instalments, each to cover medical expenses for one month.  O. Reg. 242/00, s. 5.

88. (1) The Superintendent’s authority to give his or her consent under subsection 67 (5) of the Act is subject to the conditions set out in subsections (2) to (14).  O. Reg. 242/00, s. 5.

(2) Subject to section 89, unless the application relates to expenses incurred or to be incurred for the benefit of a dependant, the owner is entitled to withdraw an amount calculated using the formula,

in which,

“A” is the amount the owner applies to withdraw;

“B” is the market value of all assets of the owner and the spouse except the following:

1. The owner’s principal residence and all personal property related to its use.

2. Motor vehicles.

3. Personal effects, including clothing and jewellery.

4. Tools of the trade that are essential to the employment of the owner or the spouse.

5. Assets that are necessary to the operation of a business or farm which the owner or the spouse operates and has an interest in, up to a maximum of $50,000 for each person and for each business or farm.  However, if the owner and the spouse operate and have an interest in the same business or farm, the total amount for that business or farm shall not exceed $50,000;

“C” is the total of the liabilities of the owner and the spouse, except liabilities secured against excluded assets listed under “B”;

  “(B – C)” cannot be less than 0;

“D” is the amount the owner is entitled to withdraw, net of any withholding tax and fee.

O. Reg. 242/00, s. 5; O. Reg. 324/05, s. 19 (1-4).

(3) If the application relates to expenses incurred or to be incurred for the benefit of a dependant, the owner is entitled to withdraw an amount calculated using the formula,

in which,

“A” is the amount the owner applies to withdraw;

“B” is the market value of all assets of the owner and the spouse, and of the dependant, except the following:

1. The owner’s principal residence, the dependant’s principal residence and all personal property related to their use.

2. Motor vehicles.

3. Personal effects, including clothing and jewellery.

4. Tools of the trade that are essential to the employment of the owner, the spouse, or the dependant.

5. Assets that are necessary to the operation of a business or farm which the owner, the spouse or the dependant operates and has an interest in, up to a maximum of $50,000 for each person and for each business or farm.  However, if two or more of them operate and have an interest in the same business or farm, the total amount for that business or farm shall not exceed $50,000;

“C” is the total of the liabilities of the owner, the spouse and the dependant, except liabilities secured against assets listed under “B”,

  “(B – C)” cannot be less than 0;

“D” is the amount the owner is entitled to withdraw, net of any withholding tax and fee.

O. Reg. 242/00, s. 5; O. Reg. 324/05, s. 19 (5-8).

(4) In subsections (2) and (3), the assets and business or farming activities of a spouse are not taken into account if the owner and the spouse are living separate and apart on the date the application is signed.  O. Reg. 242/00, s. 5.

(5) The owner shall provide evidence satisfactory to the Superintendent, in such detail as the Superintendent may determine, of the market value of assets and the amount of liabilities for the purposes of subsections (2) and (3).  O. Reg. 242/00, s. 5.

(6) If the application relates to an expense that has been incurred, the owner shall provide with the application copies of receipts to account for the total expense, each receipt showing,

(a) the amount;

(b) to whom it was paid; and

(c) the date of the receipt.  O. Reg. 242/00, s. 5.

(7) If the application relates to an expense that has not yet been incurred, the owner shall provide with the application copies of estimates to account for the total expense, each estimate showing,

(a) the proposed amount;

(b) to whom it would be paid;

(c) the purpose of the payment; and

(d) the date of the estimate.  O. Reg. 242/00, s. 5.

(8) If the application relates to medical expenses other than dental expenses, the owner shall provide with the application a statement, signed by a physician who is licensed to practise medicine in a jurisdiction in Canada, indicating that in his or her opinion the goods and services purchased or to be purchased are necessary for the person’s treatment.  O. Reg. 242/00, s. 5.

(9) If the application relates to medical expenses that are dental expenses, the owner shall provide with the application a statement, signed by a dentist who is licensed to practise dentistry in a jurisdiction in Canada, indicating that in his or her opinion the goods and services purchased or to be purchased are necessary for the person’s treatment.  O. Reg. 242/00, s. 5.

(10) If the application relates to expenses for renovations or alterations to the owner’s principal residence, the owner shall provide with the application a statement, signed by a physician who is licensed to practise medicine in a jurisdiction in Canada, indicating that in his or her opinion,

(a) the renovations or alterations are necessary to accommodate the illness or physical disability of the owner, the owner’s spouse, or a dependant, to give the person access to the principal residence or to enable him or her to be mobile or functional there; and

(b) the illness or physical disability has lasted or may reasonably be expected to last for a continuous period of at least 12 months.  O. Reg. 242/00, s. 5; O. Reg. 324/05, s. 19 (9).

(11) If the application relates to expenses for renovations or alterations to a dependant’s principal residence, the owner shall provide with the application a statement, signed by a physician who is licensed to practise medicine in a jurisdiction in Canada, indicating that in his or her opinion,

(a) the renovations or alterations are necessary to accommodate the dependant’s illness or physical disability, to give the dependant access to the principal residence or to enable him or her to be mobile or functional there; and

(b) the illness or physical disability has lasted or may reasonably be expected to last for a continuous period of at least 12 months.  O. Reg. 242/00, s. 5.

(12) Subsections (10) and (11) also apply, with necessary modifications, if the application relates to any additional expenses in the construction of a principal residence that are made necessary by a person’s illness or physical disability.  O. Reg. 242/00, s. 5.

(13) Only one application may be made during a given 12-month period in relation to a particular person under each of the circumstances of financial hardship listed in paragraphs 1 to 6 of subsection 87 (1).  O. Reg. 242/00, s. 5.

(14) For the purposes of subsection (13), a 12-month period begins on the date an application with respect to the relevant circumstance of financial hardship and in relation to the particular person is received by the Superintendent.  O. Reg. 242/00, s. 5.

(15) An unsuccessful application is not counted for the purposes of subsection (13).  O. Reg. 242/00, s. 5.

89. (1) In applications relating to paragraph 7 of subsection 87 (1), the Superintendent’s authority to give his or her consent under subsection 67 (5) of the Act is subject to the additional conditions set out in subsections (2) to (6).  O. Reg. 242/00, s. 5; O. Reg. 680/00, s. 3.

(2) The owner shall provide with the application a signed statement setting out his or her expected total income from all sources before taxes for the 12-month period following the date of signing the application.  O. Reg. 242/00, s. 5.

(3) For the purposes of subsection (2), an owner’s expected total income from all sources before taxes does not include,

(a) a withdrawal under this Part;

(b) a refund or repayment of taxes paid to a Canadian jurisdiction;

(c) a refundable tax credit;

(d) a refund of tax paid under the Ontario Child Care Supplement for Working Families program under section 8.5 of the Income Tax Act;

(d.1) the payment of an Ontario child benefit under section 8.6.2 of the Income Tax Act or under section 104 of the Taxation Act, 2007;

(e) a payment received by a foster parent under the Child and Family Services Act; or

(f) child support payments received under a court order or an agreement.  O. Reg. 242/00, s. 5; O. Reg. 416/07, s. 8.

(4) Only one application may be made during each 12-month period.  O. Reg. 242/00, s. 5.

(5) An unsuccessful application is not counted for the purposes of subsection (4).  O. Reg. 242/00, s. 5.

(6) The amount the owner may apply to withdraw under section 88 is the amount by which “E” exceeds “F” where,

“E” is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed; and

“F” is 75 per cent of the owner’s expected total income from all sources before taxes for the 12-month period following the date of signing the application.  O. Reg. 242/00, s. 5.

schedule 1
life income funds governed by this schedule

Establishing the Fund

1. (1) A life income fund that is governed by this Schedule cannot be purchased after December 31, 2008.

(2) After December 31, 2008, money cannot be transferred into a life income fund that is governed by this Schedule from a pension fund, another life income fund, a locked-in retirement account, a locked-in retirement income fund or a life annuity that meets the requirements of section 22 of this Regulation.

2. (1) A contract establishing a life income fund that is governed by this Schedule must provide for the matters described in this section.

(2) It must indicate the name and address of the financial institution providing the fund.

(3) It must describe the owner’s powers, if any, respecting investment of the assets in the fund.

(4) It must state that the owner agrees not to assign, charge, anticipate or give as security money payable under the fund except as required by an order under the Family Law Act or by a domestic contract as defined in Part IV of that Act, subject to the maximum set out in subsection 66 (4) of the Act.

(5) It must describe the method for determining the value of the assets in the fund.

Note:  On January 1, 2011, section 2 is amended by adding the following subsection:

(6) It must indicate whether the commuted value of the pension benefit that was transferred into the fund was determined in a manner that differentiated on the basis of sex.

See:  O. Reg. 239/09, ss. 15 (2), 46 (2).

3. (1) Money in a life income fund that is governed by this Schedule cannot be commuted, withdrawn or surrendered in whole or in part, except as permitted by section 49 or 67 of the Act, section 22.2 of this Regulation or this Schedule.

(2) Every contract establishing a life income fund that is governed by this Schedule shall be deemed to include a provision setting out the restriction described in subsection (1).

(3) Any transaction that contravenes subsection (1) is void. 

4. The fiscal year of a life income fund that is governed by this Schedule must end on December 31 and must not exceed 12 months.

Periodic Payments out of the Fund

5. (1) Payments out of a life income fund that is governed by this Schedule must begin no earlier than the earliest date on which the former member is entitled to receive a pension under any pension plan from which money was transferred into the fund directly or indirectly.

(2) Payments out of the fund must begin no later than the end of the second fiscal year of the fund.

(3) The owner must notify the financial institution of the amount to be paid out of the fund each year.  If the owner does not do so, the minimum amount determined under section 6 shall be paid out of the fund that year.

(4) The notice respecting the amount to be paid out of the fund must be given either at the beginning of the fiscal year of the fund or at another time agreed to by the financial institution.

(5) The notice expires at the end of the fiscal year to which it relates.

(6) The value of the assets in the fund and payments out of the fund are subject to division in accordance with the terms of an order under the Family Law Act or a domestic contract as defined in Part IV of that Act.

6. (1) The amount of income paid during a fiscal year out of a life income fund that is governed by this Schedule must not exceed the amount calculated using the formula,

in which,

“C” is the value of the assets in the fund at the beginning of the fiscal year, and

“F” is the present value, at the beginning of the fiscal year, of an annuity of $1 payable annually in advance over the period commencing at the beginning of the fiscal year and ending on December 31 of the year in which the owner reaches 90 years of age.

Note:  On January 1, 2011, subsection (1) is revoked and the following substituted:

(1) The amount of income paid during a fiscal year out of a life income fund that is governed by this Schedule must not exceed the greater of “A” and “B” where,

  “A” is the amount of the investment earnings, including any unrealized capital gains or losses, of the fund in the previous fiscal year, and

  “B” is the amount calculated using the formula,

C/F

in which,

“C” is the value of the assets in the fund at the beginning of the fiscal year, and

“F” is the present value, at the beginning of the fiscal year, of an annuity of $1 payable annually in advance over the period commencing at the beginning of the fiscal year and ending on December 31 of the year in which the owner reaches 90 years of age.

See:  O. Reg. 239/09, ss. 17 (1), 46 (2).

(2) The following interest rate assumptions are to be used to determine the amount “F” in subsection (1):

Note:  On January 1, 2011, subsection (2) is amended by striking out “subsection (1)” in the portion before paragraph 1 and substituting “the definition of “B” in subsection (1)”.  See:  O. Reg. 239/09, ss. 17 (2), 46 (2).

1. Revoked:  O. Reg. 416/07, s. 9 (12).

2. The interest rate for each of the first 15 fiscal years of the period referred to in the definition of “F” is the greater of 6 per cent and the nominal rate of interest on long-term bonds issued by the Government of Canada for November of the year before the beginning of the fiscal year, as determined from the Canadian Socio-Economic Information Management System (CANSIM) series V122487 compiled by Statistics Canada and available on the website maintained by the Bank of Canada.

3. For the sixteenth and each subsequent fiscal year of the period referred to in the definition of “F”, the interest rate is 6 per cent.

(3) Despite subsection (1), if any money in the fund is derived from money transferred directly or indirectly from another life income fund that is governed by this Schedule or locked-in retirement income fund, the maximum amount that may be paid out of the fund in the fiscal year in which the money is transferred into the fund is zero.

Note:  On January 1, 2011, subsection (3) is revoked and the following substituted:

(3) The amount of income paid out of the fund during a fiscal year must not be less than the minimum amount prescribed for an RRIF under the Income Tax Act (Canada).

See:  O. Reg. 239/09, ss. 17 (3), 46 (2).

(4) If the initial fiscal year of the fund is not 12 months long, the maximum amount determined under subsection (1) shall be adjusted in proportion to the number of months in that fiscal year divided by 12, with any part of an incomplete month counting as one month.

Note:  On January 1, 2011, subsection (4) is revoked and the following substituted:

(4) If the minimum amount specified by subsection (3) is greater than the maximum amount determined under subsection (1), the minimum amount must be paid out of the fund during the fiscal year. 

See:  O. Reg. 239/09, ss. 17 (3), 46 (2).

(5) The amount of income paid out of the fund during a fiscal year must not be less than the minimum amount prescribed for an RRIF under the Income Tax Act (Canada).

Note:  On January 1, 2011, subsection (5) is revoked and the following substituted:

(5) This section shall not be construed to prevent or limit a payment from the fund that is permitted under section 3, 8, 9, 9.1 or 10 of this Schedule or under section 22.2 of this Regulation.

See:  O. Reg. 239/09, ss. 17 (3), 46 (2).

(6) If the minimum amount specified by subsection (5) is greater than the maximum amount determined under subsection (1), (3) or (4), the minimum amount must be paid out of the fund during the fiscal year.

Note:  On January 1, 2011, subsection (6) is revoked.  See:  O. Reg. 239/09, ss. 17 (3), 46 (2).

(7) This section shall not be construed to prevent or limit a payment from the fund that is permitted under section 3, 9, 9.1 or 10 of this Schedule or under section 22.2 of this Regulation.

Note:  On January 1, 2011, subsection (7) is revoked.  See:  O. Reg. 239/09, ss. 17 (3), 46 (2).

Transferring Assets from the Fund

7. (1) The owner of a life income fund that is governed by this Schedule may transfer any or all of the assets in it,

(a) to a life income fund that is governed by Schedule 1.1;

(b) Revoked:  O. Reg. 416/07, s. 9 (17).

(c) to purchase an immediate life annuity that meets the requirements of section 22 of this Regulation;

(d) before December 31 in the year in which the owner reaches 71 years of age, to a locked-in retirement account;

Note:  On January 1, 2011, clause (d) is revoked.  See:  O. Reg. 239/09, ss. 18 (1), 46 (2).

(e) before January 1, 2009 to a locked-in retirement income fund; or

Note:  On January 1, 2011, clause (e) is revoked.  See:  O. Reg. 239/09, ss. 18 (1), 46 (2).

(f) before January 1, 2009 to another life income fund that is governed by this Schedule.

Note:  On January 1, 2011, clause (f) is revoked.  See:  O. Reg. 239/09, ss. 18 (1), 46 (2).

(1.1) For the purposes of the life annuity referred to in clause (1) (c), a determination as to whether the owner has a spouse is to be made on the date the annuity is purchased.

(1.2) Payments under a life annuity referred to in clause (1) (c) are subject to division in accordance with the terms of an order under the Family Law Act or a domestic contract as defined in Part IV of that Act.

Note:  On January 1, 2011, section 7 is amended by adding the following subsections:

(1.3) A life annuity referred to in clause (1) (c) shall not differentiate on the basis of the sex of the beneficiary if the commuted value of the pension benefit that was transferred into the fund was determined in a manner that did not differentiate on the basis of sex.

(1.4) The financial institution shall not make a transfer described in subsection (1) except where,

(a) the transfer is permitted under the Act and this Regulation; and

(b) the transferee agrees to administer the amount transferred in accordance with the Act and this Regulation. 

(1.5) The financial institution shall advise the transferee in writing that the amount transferred must be administered in accordance with the Act and this Regulation.

See:  O. Reg. 239/09, ss. 18 (2), 46 (2).

(2) In the contract governing the fund, the financial institution must agree to make such a transfer within 30 days after the owner requests it.  This does not apply with respect to the transfer of assets held as securities whose term of investment extends beyond the 30-day period.

(3) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

Withdrawals from the Fund

8. (1) On or after January 1, 2011, the owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, either withdraw from the fund or transfer from it to an RRSP or RRIF an amount representing up to 50 per cent of the total market value of the assets of the fund.

(2) For the purposes of subsection (1), the total market value of the assets of the fund is determined using the most recent statement about the fund given to the owner.  The statement must be dated within one year before the owner signs the application. 

(3) For the purposes of subsection (1), the owner of a fund may make a maximum of one withdrawal or transfer from the fund.

(4) Despite subsection (1), no amount may be withdrawn or transferred under this section unless an application for the withdrawal or transfer is given to the financial institution that administers the fund on or before April 30, 2012.

(5) The application must be made on a form approved by the Superintendent.

(6) The application form must be signed by the owner and accompanied by one of the following documents:

1. A declaration described in section 11 about a spouse.

2. A statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(7) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

(8) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment or transfer from the fund in accordance with this section.

3. The financial institution is required to make the payment or transfer to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

9. (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all the money in the fund or transfer the assets to an RRSP or RRIF if, when the owner signs the application,

(a) he or she is at least 55 years of age; and

(b) the value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by him or her is less than 40 per cent of the Year’s Maximum Pensionable Earnings for that calendar year.

(2) An application for the withdrawal or transfer from the fund must be given to the financial institution that administers the fund.

(3) The application must be made on a form approved by the Superintendent.

(4) The application form must be signed by the owner and accompanied by,

(a) a declaration described in section 11 about a spouse; or

(b) a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(5) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

(6) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment or transfer from the fund in accordance with this section.

3. The value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by the owner when he or she signs the application under this section is to be determined using the most recent statement about each fund or account given to the owner.  Each such statement must be dated within one year before the owner signs the application.

4. The financial institution is required to make the payment or transfer to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

9.1 (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all the money in the fund,

(a) if, when the owner signs the application, he or she is a non-resident of Canada as determined by the Canada Revenue Agency for the purposes of the Income Tax Act (Canada); and

(b) if the application is made at least 24 months after his or her date of departure from Canada.

(2) An application to withdraw the money from the fund must be given to the financial institution that administers the fund.

(3) The application must be made on a form approved by the Superintendent.

(4) The application form must be signed by the owner and accompanied by the following documents:

1. A written determination from the Canada Revenue Agency that the person is a non-resident for the purposes of the Income Tax Act (Canada).

2. Either a declaration described in section 11 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(5) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment from the fund in accordance with this section.

3. The financial institution is required to make the payment to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

10. (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the fund if, when the owner signs the application, he or she has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years.

(2) An application to withdraw money from the fund must be given to the financial institution that administers the fund.

(3) The application must be made on a form approved by the Superintendent.

(4) The application form must be signed by the owner and be accompanied by the following documents:

1. A statement signed by a physician who is licensed to practise medicine in a jurisdiction in Canada that, in the opinion of the physician, the owner has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years.

2. A declaration described in section 11 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(5) The contract governing the fund must include the following terms and, if it does not, the contract shall be deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment from the fund in accordance with this section.

3. The financial institution is required to make the payment to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

11. Any of the following documents constitutes a declaration about a spouse for the purposes of a withdrawal or transfer under section 8, 9, 9.1 or 10 from a life income fund that is governed by this Schedule:

1. A statement signed by the owner’s spouse, if any, that the spouse consents to the withdrawal or transfer from the fund.

2. A statement signed by the owner attesting to the fact that he or she does not have a spouse.

3. A statement signed by the owner attesting to the fact that he or she is living separate and apart from his or her spouse on the date the owner signs the application to make the withdrawal or transfer from the fund.

12. (1) If the owner of a life income fund that is governed by this Schedule is required by section 8, 9, 9.1 or 10 to give a document to a financial institution and if the document is one that must be signed by the owner or by his or her spouse, the document is a nullity if it is signed by the owner or the spouse more than 60 days before the financial institution receives it.

(2) When the financial institution receives a document required by section 8, 9, 9.1 or 10, the financial institution shall give the owner of the life income fund a receipt for the document stating the date on which it was received.

Survivor’s Benefits

13. (1) Upon the death of the owner of a life income fund that is governed by this Schedule, the owner’s spouse or, if there is none or if the spouse is otherwise disentitled, the owner’s named beneficiary or, if there is none, the owner’s estate is entitled to receive a benefit equal to the value of the assets in the fund.

(1.1) The benefit described in subsection (1) may be transferred to an RRSP or an RRIF in accordance with the Income Tax Act (Canada).

(2) A spouse of the owner is not entitled to receive the value of the assets in the fund unless the owner was a member or former member of a pension plan from which assets were transferred directly or indirectly to purchase the fund.

(3) A spouse living separate and apart from the owner on the date of the owner’s death is not entitled to receive the value of the assets in the fund.

(4) For the purposes of subsection (1), a determination as to whether the owner has a spouse is to be made on the date of the owner’s death.

(5) For the purposes of subsection (1), the value of the assets in the fund includes all accumulated investment earnings, including any unrealized capital gains and losses, of the fund from the date of death until the date of payment.

13.1 (1) A spouse of the owner of a life income fund that is governed by this Schedule may waive his or her entitlement to receive the survivor’s benefit described in section 13 from the fund by delivering to the financial institution a written waiver in a form approved by the Superintendent.

(2) A spouse who has delivered a waiver under subsection (1) may cancel it by delivering a written and signed notice of cancellation to the financial institution before the date of the death of the owner of the fund.

Amending the Fund

14. (1) In the contract governing a life income fund that is governed by this Schedule, the financial institution providing the fund must agree not to amend the contract except as provided in this section.

(2) The financial institution must give the owner of the fund at least 90 days notice of a proposed amendment, other than an amendment described in subsection (3).

(3) The financial institution must not amend the contract governing the fund if the amendment would result in a reduction in the owner’s rights under the contract unless,

(a) the financial institution is required by law to make the amendment; and

(b) the owner is entitled to transfer the assets in the fund under the terms of the contract that exist before the amendment is made.

(4) When making an amendment described in subsection (3), the financial institution must notify the owner of the fund of the nature of the amendment and allow the owner at least 90 days after the notice is given to transfer all or part of the assets in the fund.

(5) Notices under this section must be in writing and must be sent to the owner’s address as set out in the records of the financial institution.

Information to be Provided by the Financial Institution

15. (1) In the contract governing a life income fund that is governed by this Schedule, the financial institution must agree to provide the information described in this section to the person indicated.

(2) At the beginning of each fiscal year, the following information must be provided to the owner:

1. With respect to the previous fiscal year:  the sums deposited, any accumulated investment earnings, including any unrealized capital gains or losses, the payments made out of the fund, the withdrawals taken out of the fund and the fees charged against the fund. 

2. The value of the assets in the fund as of the beginning of the fiscal year.

3. The minimum amount that must be paid out of the fund to the owner during the current fiscal year.

4. The maximum amount that may be paid out of the fund to the owner during the current fiscal year.

(3) If the assets in the fund are transferred as described in subsection 7 (1), the owner must be given the information described in subsection (2) determined as of the date of the transfer.

(4) Upon the death of the owner, the person entitled to receive the assets in the fund must be given the information described in subsection (2) determined as of the date of the owner’s death.

(5) The following information must be provided to the owner on or before September 30, 2010:

1. That, on or after January 1, 2011, the owner of the fund may, upon application in accordance with section 8 of this Schedule, either withdraw from the fund or transfer from it to an RRSP or RRIF an amount representing up to 50 per cent of the total market value of the assets of the fund, as determined using the most recent statement about the fund given to the owner.  The statement must be dated within one year before the owner signs the application. 

2. That the owner of the fund may make a maximum of one withdrawal or transfer under section 8 of this Schedule from the fund. 

3. That no withdrawal or transfer may be made under section 8 of this Schedule unless an application for the withdrawal or transfer is given to the financial institution on or before April 30, 2012.

4. That, on or after January 1, 2011, the amount of income paid out of the fund during a fiscal year must not exceed the greater of “A” and “B” where,

“A” is the amount of the investment earnings, including any unrealized capital gains or losses, of the fund in the previous fiscal year, and

“B” is the amount calculated using the formula set out in subsection 6 (1) of this Schedule.

5. That the owner may not transfer assets from the fund to a locked-in retirement account after December 31, 2010.

6. That after December 31, 2010, if assets are transferred from the fund to a life income fund that is governed by Schedule 1.1, the owner cannot make a withdrawal or transfer described in subsection 8 (1) of Schedule 1.1. 

O. Reg. 144/00, s. 32; O. Reg. 324/05, s. 20; O. Reg. 116/06, s. 21; O. Reg. 416/07, s. 9; O. Reg. 239/09, ss. 15 (1), 16, 19-25.

schedule 1.1
life income funds governed by this schedule

Establishing the Fund

1. (1) The following persons may purchase, in accordance with this section, a life income fund that is governed by this Schedule:

1. A former member who is entitled to make a transfer under clause 42 (1) (b) of the Act.

2. A spouse or former spouse of a person who was a member who is entitled to make a transfer under clause 42 (1) (b) of the Act.

3. A person who has previously transferred an amount under clause 42 (1) (b) of the Act into a life income fund, a locked-in retirement account or a locked-in retirement income fund.

(2) The fund must be purchased using all or part of the amount transferred under clause 42 (1) (b) of the Act, or using all or part of the assets in a life income fund, a locked-in retirement account or a locked-in retirement income fund.

(3) The purchaser must have the written consent of his or her spouse in order to make the purchase but,

(a) the consent of a spouse who is living separate and apart from the purchaser on the date of purchase is not required; and

(b) the consent of a spouse is not required if none of the money to be transferred into the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the purchaser.

2. (1) A contract establishing a life income fund that is governed by this Schedule must provide for the matters described in this section.

(2) It must indicate the name and address of the financial institution providing the fund.

(3) It must describe the owner’s powers, if any, respecting investment of the assets in the fund.

(4) It must state that the owner agrees not to assign, charge, anticipate or give as security money payable under the fund except as required by an order under the Family Law Act or by a domestic contract as defined in Part IV of that Act, subject to the maximum set out in subsection 66 (4) of the Act.

(5) It must describe the method for determining the value of the assets in the fund.

Note:  On January 1, 2011, section 2 is amended by adding the following subsection:

(6) It must indicate whether the commuted value of the pension benefit that was transferred into the fund was determined in a manner that differentiated on the basis of sex.

See:  O. Reg. 239/09, ss. 26 (2), 46 (2).

3. (1) Money in a life income fund that is governed by this Schedule cannot be commuted, withdrawn or surrendered in whole or in part, except as permitted by section 49 or 67 of the Act, section 22.2 of this Regulation or this Schedule.

(2) Every contract establishing a life income fund that is governed by this Schedule is deemed to include a provision setting out the restriction described in subsection (1).

(3) Any transaction that contravenes subsection (1) is void. 

4. The fiscal year of a life income fund that is governed by this Schedule must end on December 31 and must not exceed 12 months.

Periodic Payments out of the Fund

5. (1) Payments out of a life income fund that is governed by this Schedule must begin no earlier than the earliest date on which the former member is entitled to receive a pension under any pension plan from which money was transferred into the fund directly or indirectly.

(2) Payments out of the fund must begin no later than the end of the second fiscal year of the fund.

(3) The owner must notify the financial institution of the amount to be paid out of the fund each year.  If the owner does not do so, the minimum amount determined under section 6 must be paid out of the fund that year.

(4) The notice respecting the amount to be paid out of the fund must be given either at the beginning of the fiscal year of the fund or at another time agreed to by the financial institution.

(5) The notice expires at the end of the fiscal year to which it relates.

(6) The value of the assets in the fund and payments out of the fund are subject to division in accordance with the terms of an order under the Family Law Act or a domestic contract as defined in Part IV of that Act.

6. (1) The amount of income paid during a fiscal year out of a life income fund that is governed by this Schedule must not exceed the greatest of the following amounts:

1. The investment earnings, including any unrealized capital gains or losses, of the fund in the previous fiscal year.

2. If the money in the fund (the “receiving fund”) is derived from money transferred directly from another life income fund or a locked-in retirement income fund (the “transferring fund”), and if the income is being paid out of the receiving fund in the fiscal year following the fiscal year in which the receiving fund is established, the sum of,

i. the investment earnings, including any unrealized capital gains or losses, of the transferring fund in the previous fiscal year, and

ii. the investment earnings, including any unrealized capital gains or losses, of the receiving fund in the previous fiscal year.

3. The amount calculated using the formula,

in which,

“C” is the value of the assets in the fund at the beginning of the fiscal year, and

“F” is the present value, at the beginning of the fiscal year, of an annuity of $1 payable annually in advance over the period commencing at the beginning of the fiscal year and ending on December 31 of the year in which the owner reaches 90 years of age.

(2) The following interest rate assumptions are to be used to determine the amount “F” in subsection (1):

1. The interest rate for each of the first 15 fiscal years of the period referred to in the definition of “F” is the greater of 6 per cent and the nominal rate of interest on long-term bonds issued by the Government of Canada for November of the year before the beginning of the fiscal year, as determined from the Canadian Socio-Economic Information Management System (CANSIM) series V122487 compiled by Statistics Canada and available on the website maintained by the Bank of Canada.

2. For the sixteenth and each subsequent fiscal year of the period referred to in the definition of “F”, the interest rate is 6 per cent.

(3) Despite subsection (1), if any money in the fund is derived from money transferred directly or indirectly from another life income fund or a locked-in retirement income fund, the maximum amount that may be paid out of the fund in the fiscal year in which the money is transferred into the fund is zero.

(4) If the initial fiscal year of the fund is not 12 months long, the maximum amount determined under subsection (1) shall be adjusted in proportion to the number of months in that fiscal year divided by 12, with any part of an incomplete month counting as one month.

(5) The amount of income paid out of the fund during a fiscal year must not be less than the minimum amount prescribed for an RRIF under the Income Tax Act (Canada).

(6) If the minimum amount specified by subsection (5) is greater than the maximum amount determined under subsection (1), (3) or (4), the minimum amount must be paid out of the fund during the fiscal year.

(7) This section shall not be construed to prevent or limit a payment from the fund that is permitted under section 3, 8, 9, 10 or 11 of this Schedule or under section 22.2 of this Regulation.

Transferring Assets from the Fund

7. (1) The owner of a life income fund that is governed by this Schedule may transfer any or all of the assets in it either to another life income fund that is governed by this Schedule or to purchase an immediate life annuity that meets the requirements of section 22 of this Regulation.

(2) In the contract governing the fund, the financial institution must agree to make such a transfer within 30 days after the owner requests it.  This does not apply with respect to the transfer of assets held as securities whose term of investment extends beyond the 30-day period.

(3) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

(4) For the purposes of the purchase of an immediate life annuity referred to in subsection (1), a determination as to whether the owner has a spouse is to be made on the date the annuity is purchased.

(5) Payments under a life annuity are subject to division in accordance with the terms of an order under the Family Law Act or a domestic contract as defined in Part IV of that Act.

Note:  On January 1, 2011, section 7 is amended by adding the following subsections:

(6) A life annuity referred to in subsection (1) shall not differentiate on the basis of the sex of the beneficiary if the commuted value of the pension benefit that was transferred into the fund was determined in a manner that did not differentiate on the basis of sex.

(7) The financial institution shall not make a transfer described in subsection (1) except where,

(a) the transfer is permitted under the Act and this Regulation; and

(b) the transferee agrees to administer the amount transferred in accordance with the Act and this Regulation. 

(8) The financial institution shall advise the transferee in writing that the amount transferred must be administered in accordance with the Act and this Regulation. 

See:  O. Reg. 239/09, ss. 28, 46 (2).

Withdrawals from the Fund

8. (1) This section applies if assets are transferred into a life income fund that is governed by this Schedule (the “receiving fund”) from a pension fund, a locked-in retirement account, a locked-in retirement income fund or another life income fund.

(2) The owner of the receiving fund may, upon application in accordance with this section, either withdraw from the fund or transfer from it to an RRSP or RRIF an amount representing up to 25 per cent of the total market value of the assets transferred into the fund in relation to a transfer of assets made on or before December 31, 2009.

(2.1) The owner of the receiving fund may, upon application in accordance with this section, either withdraw from the fund or transfer from it to an RRSP or RRIF an amount representing up to 50 per cent of the total market value of the assets transferred into the fund in relation to a transfer of assets made on or after January 1, 2010. 

(3) Despite subsections (2) and (2.1), if the assets are transferred into the receiving fund from another life income fund that is governed by this Schedule, the owner cannot make a withdrawal or transfer described in subsection (2) or (2.1) unless the transfer of assets into the receiving fund was made in accordance with the terms of an order under the Family Law Act or a domestic contract as defined in Part IV of that Act.

Note:  On January 1, 2011, subsection (3) is revoked and the following substituted:

(3) Despite subsections (2) and (2.1), if the assets are transferred into the receiving fund from a life income fund or a locked-in retirement income fund, the owner cannot make a withdrawal or transfer described in subsection (2) or (2.1) unless the transfer of assets into the receiving fund was made in accordance with the terms of an order under the Family Law Act or a domestic contract as defined in Part IV of that Act.

See:  O. Reg. 239/09, ss. 29 (4), 46 (2).

(4) An application for a withdrawal or transfer described in subsection (2) or (2.1) must be given to the financial institution that administers the receiving fund within 60 days after the assets are transferred into the fund.

(5) The application must be made on a form approved by the Superintendent.

(6) The application form must be signed by the owner and accompanied by one of the following documents:

1. A declaration described in section 12 about a spouse.

2. A statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(7) If assets in the receiving fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

(8) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment or transfer from the fund in accordance with this section.

2.1 The total market value of the assets transferred into the fund is to be determined as of the date the assets were transferred into the fund.

3. The financial institution is required to make the payment or transfer to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

8.1 (1) On or after January 1, 2010, the owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, either withdraw from the fund or transfer from it to an RRSP or RRIF an amount representing up to 25 per cent of the total market value of all assets transferred into the fund on or before December 31, 2009.

(2) For the purposes of subsection (1), the owner of a fund may make a maximum of one withdrawal or transfer from the fund.

(3) An application for the withdrawal or transfer must be given to the financial institution that administers the fund on or before December 31, 2010.

(4) The application must be made on a form approved by the Superintendent.

(5) The application form must be signed by the owner and accompanied by one of the following documents:

1. A declaration described in section 12 about a spouse.

2. A statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. 

(6) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

(7) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment or transfer from the fund in accordance with this section.

3. The total market value of any assets transferred into the fund is to be determined as of the date the assets were transferred into the fund.

4. The financial institution is required to make the payment or transfer to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

9. (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all the money in the fund or transfer the assets to an RRSP or RRIF if, when the owner signs the application,

(a) he or she is at least 55 years of age; and

(b) the value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by him or her is less than 40 per cent of the Year’s Maximum Pensionable Earnings for that calendar year.

(2) An application for the withdrawal or transfer from the fund must be given to the financial institution that administers the fund.

(3) The application must be made on a form approved by the Superintendent.

(4) The application form must be signed by the owner and accompanied by one of the following documents:

1. A declaration described in section 12 about a spouse.

2. A statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(5) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

(6) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment or transfer from the fund in accordance with this section.

3. The value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by the owner when he or she signs the application under this section is to be determined using the most recent statement about each fund or account given to the owner.  Each such statement must be dated within one year before the owner signs the application.

4. The financial institution is required to make the payment or transfer to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying document.

10. (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all the money in the fund,

(a) if, when the owner signs the application, he or she is a non-resident of Canada as determined by the Canada Revenue Agency for the purposes of the Income Tax Act (Canada); and

(b) if the application is made at least 24 months after his or her date of departure from Canada.

(2) An application to withdraw the money from the fund must be given to the financial institution that administers the fund.

(3) The application must be made on a form approved by the Superintendent.

(4) The application form must be signed by the owner and accompanied by the following documents:

1. A written determination from the Canada Revenue Agency that the person is a non-resident for the purposes of the Income Tax Act (Canada).

2. Either a declaration described in section 12 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(5) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment from the fund in accordance with this section.

3. The financial institution is required to make the payment to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

11. (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the fund if, when the owner signs the application, he or she has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years.

(2) An application to withdraw money from the fund must be given to the financial institution that administers the fund.

(3) The application must be made on a form approved by the Superintendent.

(4) The application form must be signed by the owner and be accompanied by the following documents:

1. A statement signed by a physician who is licensed to practise medicine in a jurisdiction in Canada that, in the opinion of the physician, the owner has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years.

2. Either a declaration described in section 12 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(5) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment from the fund in accordance with this section.

3. The financial institution is required to make the payment to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

12. Any of the following documents constitutes a declaration about a spouse for the purposes of a withdrawal or transfer under section 8, 9, 10 or 11 from a life income fund that is governed by this Schedule:

1. A statement signed by the owner’s spouse, if any, that the spouse consents to the withdrawal or transfer from the fund.

2. A statement signed by the owner attesting to the fact that he or she does not have a spouse.

3. A statement signed by the owner attesting to the fact that he or she is living separate and apart from his or her spouse on the date the owner signs the application to make the withdrawal or transfer from the fund.

13. (1) If the owner of a life income fund that is governed by this Schedule is required by section 8, 9, 10 or 11 to give a document to a financial institution and if the document is one that must be signed by the owner or by his or her spouse, the document is a nullity if it is signed by the owner or the spouse more than 60 days before the financial institution receives it.

(2) When the financial institution receives a document required by section 8, 9, 10 or 11, the financial institution shall give the owner of the life income fund a receipt for the document stating the date on which it was received.

Survivor’s Benefits

14. (1) Upon the death of the owner of a life income fund that is governed by this Schedule, the owner’s spouse or, if there is none or if the spouse is otherwise disentitled, the owner’s named beneficiary or, if there is none, the owner’s estate is entitled to receive a benefit equal to the value of the assets in the fund.

(2) The benefit described in subsection (1) may be transferred to an RRSP or an RRIF in accordance with the Income Tax Act (Canada).

(3) A spouse of the owner is not entitled to receive the value of the assets in the fund unless the owner was a member or former member of a pension plan from which assets were transferred directly or indirectly to purchase the fund.

(4) A spouse who is living separate and apart from the owner on the date of the owner’s death is not entitled to receive the value of the assets in the fund.

(5) For the purposes of subsection (1), a determination as to whether the owner has a spouse is to be made on the date of the owner’s death.

(6) For the purposes of subsection (1), the value of the assets in the fund includes all accumulated investment earnings, including any unrealized capital gains and losses, of the fund from the date of death until the date of payment.

15. (1) A spouse of the owner of a life income fund that is governed by this Schedule may waive his or her entitlement to receive the survivor’s benefit described in section 14 from the fund by delivering to the financial institution a written waiver in a form approved by the Superintendent.

(2) A spouse who has delivered a waiver under subsection (1) may cancel it by delivering a written and signed notice of cancellation to the financial institution before the date of the death of the owner of the fund.

Amending the Fund

16. (1) In the contract governing a life income fund that is governed by this Schedule, the financial institution providing the fund must agree not to amend the contract except as provided in this section.

(2) The financial institution must give the owner of the fund at least 90 days notice of a proposed amendment, other than an amendment described in subsection (3).

(3) The financial institution must not amend the contract governing the fund if the amendment would result in a reduction in the owner’s rights under the contract unless,

(a) the financial institution is required by law to make the amendment; and

(b) the owner is entitled to transfer the assets in the fund under the terms of the contract that exist before the amendment is made.

(4) When making an amendment described in subsection (3), the financial institution must notify the owner of the fund of the nature of the amendment and allow the owner at least 90 days after the notice is given to transfer all or part of the assets in the fund.

(5) Notices under this section must be in writing and must be sent to the owner’s address as set out in the records of the financial institution.

Information to be Provided by the Financial Institution

17. (1) In the contract governing a life income fund that is governed by this Schedule, the financial institution must agree to provide the information described in this section to the person indicated.

(2) At the beginning of each fiscal year, the following information must be provided to the owner:

1. With respect to the previous fiscal year:  the sums deposited, any accumulated investment earnings, including any unrealized capital gains or losses, the payments made out of the fund, the withdrawals taken out of the fund and the fees charged against the fund. 

2. The value of the assets in the fund as of the beginning of the fiscal year.

3. The minimum amount that must be paid out of the fund to the owner during the current fiscal year.

4. The maximum amount that may be paid out of the fund to the owner during the current fiscal year.

(3) If the assets in the fund are transferred as described in subsection 7 (1), the owner must be given the information described in subsection (2) determined as of the date of the transfer.

(4) Upon the death of the owner, the person entitled to receive the assets in the fund must be given the information described in subsection (2) determined as of the date of the owner’s death.

(5) The following information must be provided to the owner on or before January 1, 2010:

1. That, on or after January 1, 2010, the owner of the fund may, upon application in accordance with section 8.1 of this Schedule, either withdraw from the fund or transfer from it to an RRSP or RRIF an amount representing up to 25 per cent of the total market value of all assets transferred into the fund on or before December 31, 2009.

2. That the owner of the fund may make a maximum of one withdrawal or transfer under section 8.1 of this Schedule from the fund. 

3. That no withdrawal or transfer may be made under section 8.1 of this Schedule unless an application for the withdrawal or transfer is given to the financial institution on or before December 31, 2010.

O. Reg. 416/07, s. 10; O. Reg. 239/09, ss. 26 (1), 27, 29 (1-3, 5-7), 30-33.

Schedule 2
LOCKED-IN RETIREMENT INCOME FUND REQUIREMENTS

Establishing the Fund

1. (1) A locked-in retirement income fund cannot be purchased after December 31, 2008.

(2) After December 31, 2008, money cannot be transferred into a locked-in retirement income fund from a pension fund, another locked-in retirement income fund, a life income fund, a locked-in retirement account or a life annuity that meets the requirements of section 22 of this Regulation.

2. (1) A contract establishing a locked-in retirement income fund must provide for the matters described in this section.

(2) It must indicate the name and address of the financial institution providing the fund.

(3) It must describe the owner’s powers, if any, respecting investment of the assets in the fund.

(4) It must state that the owner agrees not to assign, charge, anticipate or give as security money payable under the fund except as required by an order under the Family Law Act or by a domestic contract as defined in Part IV of that Act, subject to the maximum set out in subsection 66 (4) of the Act.

(5) It must describe the method for determining the value of the assets in the fund.

Note:  On January 1, 2011, section 2 is amended by adding the following subsection:

(6) It must indicate whether the commuted value of the pension benefit that was transferred into the fund was determined in a manner that differentiated on the basis of sex.

See:  O. Reg. 239/09, ss. 34 (2), 46 (2).

3. (1) Money in a locked-in retirement income fund cannot be commuted, withdrawn or surrendered in whole or in part, except as permitted by section 49 or 67 of the Act, section 22.2 of this Regulation or this Schedule.

(2) Every contract establishing a locked-in retirement income fund shall be deemed to include a provision setting out the restriction described in subsection (1).

(3) Any transaction that contravenes subsection (1) is void. 

4. The fiscal year of a locked-in retirement income fund must end on December 31 and must not exceed 12 months.

Periodic Payments out of the Fund

5. (1) Payments out of the locked-in retirement income fund must begin no earlier than the earliest date on which the former member is entitled to receive a pension under any pension plan from which money was transferred into the fund directly or indirectly.

(2) Payments out of the fund must begin no later than the end of the second fiscal year of the fund.

(3) The owner must notify the financial institution of the amount to be paid out of the fund each year.  If the owner does not do so, the minimum amount determined under section 6 shall be paid out of the fund that year.

(4) The notice respecting the amount to be paid out of the fund must be given either at the beginning of the fiscal year of the fund or at another time agreed to by the financial institution.

(5) The notice expires at the end of the fiscal year to which it relates.

(6) The value of the assets in the fund and payments out of the fund are subject to division in accordance with the terms of an order under the Family Law Act or a domestic contract as defined in Part IV of that Act.

6. (1) Subject to subsection (7), the amount of income paid out of the locked-in retirement income fund during a fiscal year must not be greater than the greatest of the following amounts:

1. The value of the assets in the fund at the beginning of that fiscal year less the amount calculated by subtracting from the sum of all amounts transferred into the fund since it was established the sum of all amounts transferred out of the fund since it was established.

2. The investment earnings, including any unrealized capital gains or losses, of the fund in the previous fiscal year.

3. In the fiscal year in which the fund is established or in the following fiscal year, 6 per cent of the value of the assets in the fund at the beginning of the applicable fiscal year.

4. If the money in the fund (the “receiving fund”) is derived from money transferred directly from a life income fund or another locked-in retirement income fund (the “transferring fund”), and if the income is being paid out of the receiving fund in the fiscal year following the fiscal year in which the receiving fund is established, the sum of,

i. the investment earnings, including any unrealized capital gains or losses, of the transferring fund in the previous fiscal year, and

ii. the investment earnings, including any unrealized capital gains or losses, of the receiving fund in the previous fiscal year.

(2) Despite subsection (1), if any money in the fund is derived from money transferred directly or indirectly from a life income fund or another locked-in retirement income fund, the maximum amount that may be paid out of the fund in the fiscal year in which the money is transferred into the fund is zero.

(3) If the initial fiscal year of the fund is not 12 months long, the maximum amount determined under subsection (1) shall be adjusted in proportion to the number of months in that fiscal year divided by 12, with any part of an incomplete month counting as one month.

(4) The amount of income paid out of the fund during a fiscal year must not be less than the minimum amount prescribed for an RRIF under the Income Tax Act (Canada).

(5) If the minimum amount specified by subsection (4) is greater than the maximum amount determined under subsection (1), (2) or (3),  the minimum amount must be paid out of the fund.

(6) If the owner elects to be paid an amount that is less than the maximum amount determined under this section in a fiscal year, the difference between the maximum amount and the amount paid in the year may be carried forward.

(7) The owner may elect to be paid in a fiscal year all or part of the amount carried forward under subsection (6) from a prior fiscal year and, in that case, the amount carried forward is reduced by the amount paid to the owner.

(8) This section shall not be construed to prevent or limit a payment from the fund that is permitted under section 3, 8, 8.1 or 9 of this Schedule or under section 22.2 of this Regulation.

Note:  On January 1, 2011, section 6 is revoked and the following substituted:

6. (1) The amount of income paid during a fiscal year out of a locked-in retirement income fund that is governed by this Schedule must not exceed the greater of “A” and “B” where,

  “A” is the amount of the investment earnings, including any unrealized capital gains or losses, of the fund in the previous fiscal year, and

  “B” is the amount calculated using the formula,

C/F

in which,

“C” is the value of the assets in the fund at the beginning of the fiscal year, and

“F” is the present value, at the beginning of the fiscal year, of an annuity of $1 payable annually in advance over the period commencing at the beginning of the fiscal year and ending on December 31 of the year in which the owner reaches 90 years of age.

(2) The following interest rate assumptions are to be used to determine the amount “F” in the definition of “B” in subsection (1):

1. The interest rate for each of the first 15 fiscal years of the period referred to in the definition of “F” is the greater of 6 per cent and the nominal rate of interest on long-term bonds issued by the Government of Canada for November of the year before the beginning of the fiscal year, as determined from the Canadian Socio-Economic Information Management System (CANSIM) series V122487 compiled by Statistics Canada and available on the website maintained by the Bank of Canada.

2. For the 16th and each subsequent fiscal year of the period referred to in the definition of “F”, the interest rate is 6 per cent.

(3) The amount of income paid out of the fund during a fiscal year must not be less than the minimum amount prescribed for an RRIF under the Income Tax Act (Canada).

(4) If the minimum amount specified by subsection (3) is greater than the maximum amount determined under subsection (1), the minimum amount must be paid out of the fund during the fiscal year. 

(5) This section shall not be construed to prevent or limit a payment from the fund that is permitted under section 3, 7.1, 8, 8.1 or 9 of this Schedule or under section 22.2 of this Regulation.

See:  O. Reg. 239/09, ss. 36, 46 (2).

Transferring Assets from the Fund

7. (1) The owner of a locked-in retirement income fund may transfer any or all of the assets in it,

(a) to a life income fund that is governed by Schedule 1.1;

(b) Revoked:  O. Reg. 416/07, s. 11 (5).

(c) to purchase an immediate life annuity that meets the requirements of section 22 of this Regulation;

(d) before December 31 in the year in which the owner reaches 71 years of age, to a locked-in retirement account;

Note:  On January 1, 2011, clause (d) is revoked.  See:  O. Reg. 239/09, ss. 37 (1), 46 (2).

(e) before January 1, 2009 to a life income fund that is governed by Schedule 1; or

Note:  On January 1, 2011, clause (e) is revoked.  See:  O. Reg. 239/09, ss. 37 (1), 46 (2).

(f) before January 1, 2009 to another locked-in retirement income fund.

Note:  On January 1, 2011, clause (f) is revoked.  See:  O. Reg. 239/09, ss. 37 (1), 46 (2).

(1.1) For the purposes of the life annuity referred to in clause (1) (c), a determination as to whether the owner has a spouse is to be made on the date the annuity is purchased.

(1.2) Payments under a life annuity referred to in clause (1) (c) are subject to division in accordance with the terms of an order under the Family Law Act or a domestic contract as defined in Part IV of that Act.

(2) In the contract governing the fund, the financial institution must agree to make such a transfer within 30 days after the owner requests it.  This does not apply with respect to the transfer of assets held as securities whose term of investment extends beyond the 30-day period.

(3) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

Note:  On January 1, 2011, section 7 is amended by adding the following subsections:

(4) A life annuity referred to in subsection (1) shall not differentiate on the basis of the sex of the beneficiary if the commuted value of the pension benefit that was transferred into the fund was determined in a manner that did not differentiate on the basis of sex.

(5) The financial institution shall not make a transfer described in subsection (1) except where,

(a) the transfer is permitted under the Act and this Regulation; and

(b) the transferee agrees to administer the amount transferred in accordance with the Act and this Regulation. 

(6) The financial institution shall advise the transferee in writing that the amount transferred must be administered in accordance with the Act and this Regulation. 

See:  O. Reg. 239/09, ss. 37 (2), 46 (2).

Withdrawals from the Fund

7.1 (1) On or after January 1, 2011, the owner of a locked-in retirement income fund may, upon application in accordance with this section, either withdraw from the fund or transfer from it to an RRSP or RRIF an amount representing up to 50 per cent of the total market value of the assets of the fund.

(2) For the purposes of subsection (1), the total market value of the assets of the fund is determined using the most recent statement about the fund given to the owner.  The statement must be dated within one year before the owner signs the application. 

(3) For the purposes of subsection (1), the owner of a fund may make a maximum of one withdrawal or transfer from the fund. 

(4) Despite subsection (1), no amount may be withdrawn or transferred under this section unless an application for the withdrawal or transfer is given to the financial institution that administers the fund on or before April 30, 2012.

(5) The application must be made on a form approved by the Superintendent.

(6) The application form must be signed by the owner and accompanied by one of the following documents:

1. A declaration described in section 10 about a spouse.

2. A statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(7) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

(8) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment or transfer from the fund in accordance with this section.

3. The financial institution is required to make the payment or transfer to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

8. (1) The owner of a locked-in retirement income fund may, upon application in accordance with this section, withdraw all the money in the fund or transfer the assets to an RRSP or RRIF if, when the owner signs the application,

(a) he or she is at least 55 years of age; and

(b) the value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by him or her is less than 40 per cent of the Year’s Maximum Pensionable Earnings for that calendar year.

(2) An application for the withdrawal or transfer from the fund must be given to the financial institution that administers the fund.

(3) The application must be made on a form approved by the Superintendent.

(4) The application form must be signed by the owner and accompanied by,

(a) a declaration described in section 10 about a spouse; or

(b) a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(5) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

(6) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment or transfer from the fund in accordance with this section.

3. The value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by the owner when he or she signs the application under this section is to be determined using the most recent statement about each fund or account given to the owner.  Each such statement must be dated within one year before the owner signs the application.

4. The financial institution is required to make the payment or transfer to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

8.1 (1) The owner of a locked-in retirement income fund may, upon application in accordance with this section, withdraw all the money in the fund,

(a) if, when the owner signs the application, he or she is a non-resident of Canada as determined by the Canada Revenue Agency for the purposes of the Income Tax Act (Canada); and

(b) if the application is made at least 24 months after his or her date of departure from Canada.

(2) An application to withdraw the money from the fund must be given to the financial institution that administers the fund.

(3) The application must be made on a form approved by the Superintendent.

(4) The application form must be signed by the owner and accompanied by the following documents:

1. A written determination from the Canada Revenue Agency that the person is a non-resident for the purposes of the Income Tax Act (Canada).

2. Either a declaration described in section 10 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(5) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment from the fund in accordance with this section.

3. The financial institution is required to make the payment to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

9. (1) The owner of a locked-in retirement income fund may, upon application in accordance with this section, withdraw all or part of the money in the fund if, when the owner signs the application, he or she has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years.

(2) An application to withdraw money from the fund must be given to the financial institution that administers the fund.

(3) The application must be made on a form approved by the Superintendent.

(4) The application form must be signed by the owner and accompanied by the following documents:

1. A statement signed by a physician who is licensed to practise medicine in a jurisdiction in Canada that, in the opinion of the physician, the owner has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years.

2. A declaration described in section 10 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(5) The contract governing the fund must include the following terms and, if it does not, the contract shall be deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment from the fund in accordance with this section.

3. The financial institution is required to make the payment to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

10. Any of the following documents constitutes a declaration about a spouse for the purposes of a withdrawal or transfer under section 7.1, 8, 8.1 or 9 from a locked-in retirement income fund:

1. A statement signed by the owner’s spouse, if any, that the spouse consents to the withdrawal or transfer from the fund.

2. A statement signed by the owner attesting to the fact that he or she does not have a spouse.

3. A statement signed by the owner attesting to the fact that he or she is living separate and apart from his or her spouse on the date the owner signs the application to make the withdrawal or transfer from the fund.

11. (1) If the owner of a locked-in retirement income fund is required by section 7.1, 8, 8.1 or 9 to give a document to a financial institution and if the document is one that must be signed by the owner or by his or her spouse, the document is a nullity if it is signed by the owner or the spouse more than 60 days before the financial institution receives it.

(2) When the financial institution receives a document required by section 7.1, 8, 8.1 or 9, the financial institution shall give the owner of the locked-in retirement income fund a receipt for the document stating the date on which it was received.

Survivor’s Benefits

12. (1) Upon the death of the owner of a locked-in retirement income fund, the owner’s spouse or, if there is none or if the spouse is otherwise disentitled, the owner’s named beneficiary or, if there is none, the owner’s estate is entitled to receive a benefit equal to the value of the assets in the fund.

(1.1) The benefit described in subsection (1) may be transferred to an RRSP or an RRIF in accordance with the Income Tax Act (Canada).

(2) A spouse of the owner is not entitled to receive the value of the assets in the fund unless the owner was a member or former member of a pension plan from which assets were transferred directly or indirectly to purchase the fund.

(3) A spouse living separate and apart from the owner on the date of the owner’s death is not entitled to receive the value of the assets in the fund.

(4) For the purposes of subsection (1), a determination as to whether the owner has a spouse is to be made on the date of the owner’s death.

(5) For the purposes of subsection (1), the value of the assets in the fund includes all accumulated investment earnings, including any unrealized capital gains and losses, of the fund from the date of death until the date of payment.

12.1 (1) A spouse of the owner of a locked-in retirement income fund may waive his or her entitlement to receive the survivor’s benefit described in section 12 from the fund by delivering to the financial institution a written waiver in a form approved by the Superintendent.

(2) A spouse who has delivered a waiver under subsection (1) may cancel it by delivering a written and signed notice of cancellation to the financial institution before the date of the death of the owner of the fund.

Amending the Fund

13. (1) In the contract governing a locked-in retirement income fund, the financial institution providing the fund must agree not to amend the contract except as provided in this section.

(2) The financial institution must give the owner of the fund at least 90 days notice of a proposed amendment, other than an amendment described in subsection (3).

(3) The financial institution must not amend the contract governing the fund if the amendment would result in a reduction in the owner’s rights under the contract unless,

(a) the financial institution is required by law to make the amendment; and

(b) the owner is entitled to transfer the assets in the fund under the terms of the contract that exist before the amendment is made.

(4) When making an amendment described in subsection (3), the financial institution must notify the owner of the fund of the nature of the amendment and allow the owner at least 90 days after the notice is given to transfer all or part of the assets in the fund.

(5) Notices under this section must be in writing and must be sent to the owner’s address as set out in the records of the financial institution.

Information to be Provided by the Financial Institution

14. (1) In the contract governing a locked-in retirement income fund, the financial institution must agree to provide the information described in this section to the person indicated.

(2) At the beginning of each fiscal year, the following information must be provided to the owner:

1. With respect to the previous fiscal year:  the sums deposited, any accumulated investment earnings, including any unrealized capital gains or losses, the payments made out of the fund, the withdrawals taken out of the fund and the fees charged against the fund. 

2. The value of the assets in the fund as of the beginning of the fiscal year.

3. The minimum amount that must be paid out of the fund to the owner during the current fiscal year.

4. The maximum amount that may be paid out of the fund to the owner during the current fiscal year.

(3) If the assets in the fund are transferred as described in subsection 7 (1), the owner must be given the information described in subsection (2) determined as of the date of the transfer.

(4) Upon the death of the owner, the person entitled to receive the assets in the fund must be given the information described in subsection (2) determined as of the date of the owner’s death.

(5) The following information must be provided to the owner at the beginning of the fiscal year of the fund that ends on December 31, 2010:

1. That, on or after January 1, 2011, the owner will not be able to elect to be paid all or part of the amount carried forward under section 6 of this Schedule from a prior fiscal year. 

2. That if, on or after January 1, 2011, the owner elects to be paid an amount that is less than the maximum amount determined under section 6 of this Schedule, the owner will not be able to carry forward the amount of the difference between the amount elected and the maximum amount.

(6) The following information must be provided to the owner on or before September 30, 2010:

1.   That, on or after January 1, 2011, the owner of the fund may, upon application in accordance with section 7.1 of this Schedule, either withdraw from the fund or transfer from it to an RRSP or RRIF an amount representing up to 50 per cent of the total market value of the assets of the fund, as determined using the most recent statement about the fund given to the owner.  The statement must be dated within one year before the owner signs the application. 

2. That the owner of the fund may make a maximum of one withdrawal or transfer under section 7.1 of this Schedule from the fund. 

3. That no withdrawal or transfer may be made under section 7.1 of this Schedule unless an application for the withdrawal or transfer is given to the financial institution on or before April 30, 2012.

4. That, on or after January 1, 2011, the amount of income paid out of the fund during a fiscal year must not exceed the greater of “A” and “B” where,

“A” is the amount of the investment earnings, including any unrealized capital gains or losses, of the fund in the previous fiscal year, and

“B” is the amount calculated using the formula set out in subsection 6 (1) of Schedule 1 to this Regulation. 

5. That the owner may not transfer assets from the fund to a locked-in retirement account after December 31, 2010.

6. That after December 31, 2010, if assets are transferred from the fund to a life income fund that is governed by Schedule 1.1, the owner cannot make a withdrawal or transfer described in subsection 8 (1) of Schedule 1.1. 

O. Reg. 144/00, s. 32; O. Reg. 324/05, s. 21; O. Reg. 416/07, s. 11; O. Reg. 239/09, ss. 34 (1), 35, 38-44.

Note:  On January 1, 2011, the Regulation is amended by adding the following Schedule:

Schedule 3
Locked-in retirement account requirements

Establishing the Account

1. (1) The following persons may purchase a locked-in retirement account in accordance with this section:

1. A former member who is entitled to make a transfer under clause 42 (1) (b) of the Act.

2. A spouse or former spouse of a person who was a member who is entitled to make a transfer under clause 42 (1) (b) of the Act. 

3. A person who has previously transferred an amount under clause 42 (1) (b) of the Act into a locked-in retirement account. 

(2) The account must be purchased using all or part of the amount transferred under clause 42 (1) (b) of the Act, or using all or part of the assets in a locked-in retirement account. 

(3) For the purposes of this Schedule, a locked-in retirement account includes a contract made before June 24, 1994 to establish an RRSP for the purposes of a transfer under clause 42 (1) (b) of the Act. 

2. (1) A contract establishing a locked-in retirement account must provide for the matters described in this section. 

(2) It must indicate the name and address of the financial institution providing the account.

(3) It must describe the owner’s powers, if any, respecting investment of the assets in the account. 

(4) It must state that the owner agrees not to assign, charge, anticipate or give as security money in the account except as required by an order under the Family Law Act or by a domestic contract as defined in Part IV of that Act, subject to the maximum set out in subsection 66 (4) of the Act. 

(5) It must describe the method for determining the value of the assets in the account. 

(6) It must indicate whether the commuted value of the pension benefit that was transferred into the account was determined in a manner that differentiated on the basis of sex. 

3. (1) Money in a locked-in retirement account cannot be commuted, withdrawn or surrendered in whole or in part, except as permitted by section 49 or 67 of the Act, section 22.2 of this Regulation or this Schedule. 

(2) Every contract establishing a locked-in retirement account shall be deemed to include a provision setting out the restriction described in subsection (1). 

(3) Any transaction that contravenes subsection (1) is void. 

4. The fiscal year of a locked-in retirement account must end on December 31 and must not exceed 12 months. 

Transferring Assets from the Account

5. (1) The owner of a locked-in retirement account may transfer any or all of the assets in it,

(a) to the pension fund of a pension plan registered under the pension benefits legislation in any Canadian jurisdiction or to a pension plan provided by a government in Canada;

(b) to another locked-in retirement account;

(c) to a life income fund that is governed by Schedule 1.1; or

(d) to purchase an immediate or deferred life annuity that meets the requirements of section 22 of this Regulation. 

(2) In the contract governing the account, the financial institution must agree to make such a transfer within 30 days after the owner requests it.  This does not apply with respect to the transfer of assets held as securities whose term of investment extends beyond the 30-day period. 

(3) If assets in the account consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner. 

(4) For the purposes of the purchase of an immediate life annuity referred to in clause (1) (d), a determination as to whether the owner has a spouse is to be made on the date the annuity is purchased. 

(5) Payments under a life annuity referred to in clause (1) (d) are subject to division in accordance with the terms of an order under the Family Law Act or a domestic contract as defined in Part IV of that Act. 

(6) A life annuity referred to in clause (1) (d) shall not differentiate on the basis of the sex of the beneficiary if the commuted value of the pension benefit that was transferred into the account was determined in a manner that did not differentiate on the basis of sex.

(7) Payments under a life annuity referred to in clause (1) (d) must not begin before the earlier of,

(a) the earliest date on which the owner of the annuity would have been entitled as a former member to receive pension benefits under the Act as a result of termination of employment or termination of membership in any pension plan, from which money was transferred directly or indirectly into the locked-in retirement account; or

(b) the earliest date on which the owner of the annuity would have been entitled as a former member to receive pension benefits under any pension plan described in clause (a) as a result of termination of employment or termination of membership in the plan.

(8) The financial institution shall not make a transfer described in subsection (1) except where,

(a) the transfer is permitted under the Act and this Regulation; and

(b) the transferee agrees to administer the amount transferred in accordance with the Act and this Regulation. 

(9) The financial institution shall advise the transferee in writing that the amount transferred must be administered in accordance with the Act and this Regulation. 

Withdrawals from the Account

6. (1) The owner of a locked-in retirement account may, upon application in accordance with this section, withdraw all the money in the account or transfer the assets to an RRSP or RRIF if, when the owner signs the application,

(a) he or she is at least 55 years of age; and

(b) the value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by him or her is less than 40 per cent of the Year’s Maximum Pensionable Earnings for that calendar year.

(2) An application for the withdrawal or transfer from the account must be given to the financial institution that administers the account.

(3) The application must be made on a form approved by the Superintendent.

(4) The application form must be signed by the owner and accompanied by one of the following documents:

1. A declaration described in section 9 about a spouse. 

2. A statement signed by the owner attesting to the fact that none of the money in the account is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(5) If assets in the account consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

(6) The contract governing the account must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment or transfer from the account in accordance with this section.

3. The value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by the owner when he or she signs the application under this section is to be determined using the most recent statement about each fund or account given to the owner.  Each such statement must be dated within one year before the owner signs the application.

4. The financial institution is required to make the payment or transfer to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

7. (1) The owner of a locked-in retirement account may, upon application in accordance with this section, withdraw all the money in the account,

(a) if, when the owner signs the application, he or she is a non-resident of Canada as determined by the Canada Revenue Agency for the purposes of the Income Tax Act (Canada); and

(b) if the application is made at least 24 months after his or her date of departure from Canada.

(2) An application to withdraw the money from the account must be given to the financial institution that administers the account. 

(3) The application must be made on a form approved by the Superintendent. 

(4) The application form must be signed by the owner and accompanied by the following documents:

1. A written determination from the Canada Revenue Agency that the person is a non-resident for the purposes of the Income Tax Act (Canada).

2. Either a declaration described in section 9 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the account is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(5) The contract governing the account must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment from the account in accordance with this section. 

3. The financial institution is required to make the payment to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

8. (1) The owner of a locked-in retirement account may, upon application in accordance with this section, withdraw all or part of the money in the account if, when the owner signs the application, he or she has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years.

(2) An application to withdraw money from the account must be given to the financial institution that administers the account.

(3) The application must be made on a form approved by the Superintendent.

(4) The application form must be signed by the owner and be accompanied by the following documents:

1. A statement signed by a physician who is licensed to practise medicine in a jurisdiction in Canada that, in the opinion of the physician, the owner has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years.

2. Either a declaration described in section 9 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the account is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(5) The contract governing the account must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment from the account in accordance with this section.

3. The financial institution is required to make the payment to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

9. Any of the following documents constitutes a declaration about a spouse for the purposes of a withdrawal or transfer under section 6, 7 or 8 from a locked-in retirement account:

1. A statement signed by the owner’s spouse, if any, that the spouse consents to the withdrawal or transfer from the account.

2. A statement signed by the owner attesting to the fact that he or she does not have a spouse.

3. A statement signed by the owner attesting to the fact that he or she is living separate and apart from his or her spouse on the date the owner signs the application to make the withdrawal or transfer from the account.

10. (1) If the owner of a locked-in retirement account is required by section 6, 7 or 8 to give a document to a financial institution and if the document is one that must be signed by the owner or by his or her spouse, the document is a nullity if it is signed by the owner or the spouse more than 60 days before the financial institution receives it. 

(2) When the financial institution receives a document required by section 6, 7 or 8, the financial institution shall give the owner of the account a receipt for the document stating the date on which it was received. 

Survivor’s Benefits

11. (1) Upon the death of the owner of a locked-in retirement account, the owner’s spouse or, if there is none or if the spouse is otherwise disentitled, the owner’s named beneficiary or, if there is none, the owner’s estate is entitled to receive a benefit equal to the value of the assets in the account. 

(2) The benefit described in subsection (1) may be transferred to an RRSP or an RRIF in accordance with the Income Tax Act (Canada). 

(3) A spouse of the owner is not entitled to receive the value of the assets in the account unless the owner was a member or former member of a pension plan from which assets were transferred directly or indirectly to purchase the account. 

(4) A spouse who is living separate and apart from the owner on the date of the owner’s death is not entitled to receive the value of the assets in the account. 

(5) For the purposes of subsection (1), a determination as to whether the owner has a spouse is to be made on the date of the owner’s death. 

(6) For the purposes of subsection (1), the value of the assets in the account includes all accumulated investment earnings, including any unrealized capital gains and losses, of the account from the date of death until the date of payment. 

12. (1) A spouse of the owner of a locked-in retirement account may waive his or her entitlement to receive the survivor’s benefit described in section 11 from the account by delivering to the financial institution a written waiver in a form approved by the Superintendent. 

(2) A spouse who has delivered a waiver under subsection (1) may cancel it by delivering a written and signed notice of cancellation to the financial institution before the date of the death of the owner of the account.

Amending the Account

13. (1) In the contract governing a locked-in retirement account, the financial institution providing the account must agree not to amend the contract except as provided in this section. 

(2) The financial institution must give the owner of the account at least 90 days notice of a proposed amendment, other than an amendment described in subsection (3). 

(3) The financial institution must not amend the contract governing the account if the amendment would result in a reduction in the owner’s rights under the contract unless,

(a) the financial institution is required by law to make the amendment; and

(b) the owner is entitled to transfer the assets in the account under the terms of the contract that exist before the amendment is made. 

(4) When making an amendment described in subsection (3), the financial institution must notify the owner of the account of the nature of the amendment and allow the owner at least 90 days after the notice is given to transfer all or part of the assets in the account. 

(5) Notices under this section must be in writing and must be sent to the owner’s address as set out in the records of the financial institution.

Information to be Provided by the Financial Institution

14. (1) In the contract governing a locked-in retirement account, the financial institution must agree to provide the information described in this section to the person indicated. 

(2) At the beginning of each fiscal year, the following information must be provided to the owner:

1. With respect to the previous fiscal year:  the sums deposited, any accumulated investment earnings, including any unrealized capital gains or losses, the payments made out of the account, the withdrawals taken out of the account and the fees charged against the account. 

2. The value of the assets in the account as of the beginning of the fiscal year. 

(3) If the assets in the account are transferred as described in subsection 5 (1), the owner must be given the information described in subsection (2) determined as of the date of the transfer.

(4) Upon the death of the owner, the person entitled to receive the assets in the account must be given the information described in subsection (2) determined as of the date of the owner’s death.

O. Reg. 239/09, s. 45.

See:  O. Reg. 239/09, ss. 45, 46 (2).

FormS 1-3 Revoked:  O. Reg. 144/00, s. 33.

Form 4 Revoked:  O. Reg. 386/04, s. 11.