O. Reg. 225/17: GENERAL

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ontario regulation 225/17

made under the

Pension Benefits Act

Made: June 28, 2017
Filed: June 29, 2017
Published on e-Laws: June 29, 2017
Printed in The Ontario Gazette: July 15, 2017

Amending Reg. 909 of R.R.O. 1990

(GENERAL)

1. Clause 4 (2) (c.1) of Regulation 909 of the Revised Regulations of Ontario, 1990 is amended by striking out “5.6, 5.6.1 and 5.6.2” and substituting “5.6, 5.6.1, 5.6.2 and 5.6.3”.

2. (1) Subsection 5.5.3 (1) of the Regulation is amended by adding the following definition:

“Option 8” means the type of solvency relief described in paragraph 1 of subsection 5.6.3 (3); (“option 8”)

(2) The definition of “solvency relief report” in subsection 5.5.3 (1) of the Regulation is amended by striking out “5.6 (1), 5.6.1 (1) or 5.6.2 (1)” and substituting “5.6 (1), 5.6.1 (1), 5.6.2 (1) or 5.6.3 (1)”.

3. Paragraph 5 of subsection 5.6.1 (8) of the Regulation is amended by striking out “subsection 2 (1)” and substituting “section 2”.

4. Paragraph 5 of subsection 5.6.2 (8) of the Regulation is amended by striking out “subsection 2 (1)” and substituting “section 2”.

5. The Regulation is amended by adding the following section:

5.6.3 (1) This section applies with respect to the first report of a pension plan that is filed by the administrator under section 13 or 14 for which the valuation date is on or after December 31, 2016 and before December 31, 2017.  However, it does not apply with respect to any excluded plan described in subsection (7).

(2) This section applies despite any other provision of this Regulation and, in particular, despite subsections 5.6 (2), 5.6.1 (2) and 5.6.2 (2).

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

1. Option 8:  if there is a new solvency deficiency, the deferral for up to 24 months of the start of the period during which special payments are required to be made to liquidate the new solvency deficiency.

(4) An administrator of a pension plan may not elect both Option 7 and Option 8 with respect to the solvency relief report referred to in subsection (1).

(5) An election under this section must be in writing, may be made only once, cannot be rescinded and must be filed with the Superintendent no later than the day on which the solvency relief report under this section is filed with the Superintendent.

(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. The beginning of the five-year amortization period under section 5 for special payments to liquidate the new solvency deficiency may be deferred to a day that is not later than 24 months after the valuation date.

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

i. 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 following:

A. 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 paragraph 1.

B. If the administrator has elected Option 5 in respect of a previous report but has not elected Option 7 in respect of a previous report, the present value of special payments required under sub-subparagraphs 6 iv A and B of subsection 5.6.1 (6).

C. If the administrator has elected Option 7 in respect of a previous report, the present value of special payments required under sub-subparagraphs 6 v A and B of subsection 5.6.2 (6).

ii. If a benefit allocation method is not used to set contribution rates for the plan, the following rules apply:

A. If the administrator has not elected Option 5 or Option 7 in respect of a previous report, 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 paragraph 1.

B. If the administrator has elected Option 5 in respect of a previous report but has not elected Option 7 in respect of a previous report, the solvency asset adjustment under subsection 1.2 (2) for the new solvency deficiency must be determined in accordance with subparagraph 7 iv of subsection 5.6.1 (6) as if the reference in the definition of “A” in that subparagraph to “12 months” were a reference to “24 months”.

C. If the administrator has elected Option 7 in respect of a previous report, the solvency asset adjustment under subsection 1.2 (2) for the new solvency deficiency must be determined in accordance with subparagraph 7 v of subsection 5.6.2 (6) as if the reference in the definition of “A” in that subparagraph to “12 months” were a reference to “24 months”.

3. The period during which special payments are deferred when Option 8 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.

(7) The following pension plans are excluded plans for the purposes of this section:

1. A plan that does not provide defined benefits.

2. A specified Ontario multi-employer pension plan within the meaning of section 6.0.1.

3. A participating Ontario pension plan within the meaning of section 3 of Ontario Regulation 196/11 (Resolute FP Canada Inc. Pension Plans) made under the Act.

4. The Hourly Plan and the Salaried Plan within the meaning of section 2 of Ontario Regulation 321/09 (General Motors Pension Plans) made under the Act.

5. General Synod Pension Plan registered under the Act as number 0345777.

6. Any pension plan that is a new pension plan as defined in section 1 of Ontario Regulation 202/02 (Essar Steel Algoma Inc. Pension Plans) made under the Act.

7. U.S. Steel Canada Inc. Retirement Plan for Salaried Employees at Hamilton Works registered under the Act as number 0338509.

8. U.S. Steel Canada Inc. Retirement Plan for USW Local 1005 Members at Hamilton Works registered under the Act as number 0354878.

9. U.S. Steel Canada Inc. Retirement Plan for Salaried Employees at Lake Erie Works registered under the Act as number 0698753.

10. U.S. Steel Canada Inc. Retirement Plan for USW Local 8782 Members at Lake Erie Works registered under the Act as number 0698761.

11. U.S. Steel Canada Inc. Retirement Plan for Employees at the Pickle Line Department of Lake Erie Works registered under the Act as number 1206457.

12. Any pension plan that is established by U.S. Steel Canada Inc. to be a successor pension plan, as described in section 81 of the Act, to a pension plan referred to in paragraph 8, 10 or 11 of this subsection.

13. A public sector pension plan listed in Schedule 1 or Schedule 2 to Ontario Regulation 178/11 (Solvency Funding Relief for Certain Public Sector Pension Plans) made under the Act.

14. 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 solvency relief report under this section have been made in accordance with the Act and the regulations.

(8) In this section, unless otherwise indicated, “new solvency deficiency” refers to the deficiency as determined in a solvency relief report under this section.

6. (1) Subsection 5.9 (1) of the Regulation is amended by striking out “5.6, 5.6.1 or 5.6.2” in the portion before paragraph 1 and substituting “5.6, 5.6.1, 5.6.2 or 5.6.3”.

(2) Subsection 5.9 (2) of the Regulation is amended by striking out the portion before clause (a) and substituting the following:

(2) Subject to subsection (3), the notice must be sent on or before the later of,

(3) Section 5.9 of the Regulation is amended by adding the following subsection:

(3) If an administrator elected Option 8 under section 5.6.3, the notice must be sent on or before the 60th day after the applicable solvency relief report is required to be filed.

7. Paragraph 1 of subsection 6.0.1 (2) of the Regulation is amended by striking out “August 31, 2017” and substituting “August 31, 2018”.

8. Subsection 6.0.3 (2) of the Regulation is amended by striking out “September 1, 2017” and substituting “September 1, 2018”.

9. Clause 6.0.4 (1) (b) of the Regulation is amended by striking out “September 1, 2017” and substituting “September 1, 2018”.

Commencement

10. This Regulation comes into force on the later of July 1, 2017 and the day it is filed.

 

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