On the recommendation of the undersigned, the Lieutenant Governor of Ontario, by and with the advice and concurrence of the Executive Council of Ontario, orders that:

Whereas the terms of the Public Service Pension Plan (PSPP) are set out in Schedule 1 under the Public Service Pension Act, R.S.O. 1990, c.P.48;

And whereas the establishment and continuation of a supplemental pension plan for classes of members of the PSPP is provided for under section 6.0.1 of the Public Service Pension Act, R.S.O. 1990, c.P.48 and set out in Order in Council 867/2019, amended by Order in Council 508/2021 as the Public Service Supplementary Benefits Account;

And whereas the terms of the Public Service Supplementary Benefits Account are restated to establish a Retirement Compensation Arrangement and Order in Council 867/2019 as amended by Order in Council 508/2021 are revoked pursuant to a separate Order in Council;

And whereas it is necessary to amend the terms of the PSPP to include provisions establishing the Retirement Compensation Arrangement;

And whereas it is necessary to amend the terms of the PSPP to establish a buyback costing methodology applicable to members who join the PSPP on or after October 1, 2021;

Now therefore, pursuant to subsection 6(1) of the Public Service Pension Act, R.S.O. 1990, c.P.48, the PSPP set out in Schedule 1 under that Act, as amended, is further amended as follows:

  1. Section 1 of the PSPP is amended by adding the following new definition:
    "maximum benefit salary rate" means, for the year, the annual salary rate at which the member's pension is limited by paragraph 40(2)(d) of this Schedule;
  2. Subsection 6(7) of the PSPP is deleted and replaced with the following:
    (7) The following limits apply to contributions deducted from members’ salary under this Schedule:
    1. the contributions set out and deducted from the member's salary under this section shall not exceed the annual limit set out in the Income Tax Act (Canada) and Regulations, for that calendar year, (O.C. 1795/2008),
    2. where the member accrues credits in the Plan for less than a calendar year, the annual limit referred to under clause (a) shall be adjusted for the period during the year that the member earns credits, (O.C. 3046/98),
    3. notwithstanding paragraph 6(7)(a), the contributions set out and deducted from the member's salary under this section shall not exceed the contributions calculated based on the maximum benefit salary rate,
    4. paragraph 6(7)(c) does not apply to Case Management Masters,
    5. paragraph 6(7)(c) does not apply to Justices of the Peace unless the Minister advises the Board in writing that paragraph 6(7)(c) is to apply to Justices of the Peace, and
    6. in subsections 8(6.1), 10(5.1), 10.1(8) and 11(3.1) of this Schedule, the phrase “maximum benefit salary rate” shall be deleted and replaced with “maximum contributory salary rate” for:
      1. Case Management Masters; and
      2. Justices of the Peace, unless the Minister advises the Board in writing that paragraph 6(7)(c) is to apply to Justices of the Peace.
  3. Subsection 7(1) of the PSPP is amended by deleting the reference to “Subject to subsection (1b), on” and replacing with a reference to “On”.
  4. The heading “Threshold Salary Rate” set out immediately prior to subsection 7(1a) of the PSPP is deleted and replaced with “Employer Contributions for Case Management Masters and Justices of the Peace”.
  5. The following new Subsection 7(1d) is added to the PSPP:
    (1d) Subsections (1a), (1b) and (1c) apply only to:
    1. Case Management Masters; and
    2. Justices of the Peace, unless the Minister advises the Board in writing that paragraph 6(7)(c) is to apply to Justices of the Peace.
  6. Subsection 8(6.1) of the PSPP is deleted and replaced with the following:
    (6.1) Notwithstanding subsections (5) and (6), the annual salary rate in any year on which the members contribution are based shall not exceed the maximum benefit salary rate for that   year.
  7. Section 10(5.1) of the PSPP is deleted and replaced with the following:
    (5.1) Notwithstanding subsections (3) and (5), the annual salary rate in any year on which the contributions by an employer are based shall not exceed the maximum benefit salary rate for that year.
  8. Section 10.1(8) of the PSPP is deleted and replaced with the following:
    (8) Notwithstanding subsections (5) and (6), the LTIP income replacement earnings in any year on which the contributions are based shall not exceed the maximum benefit salary rate for that year.
  9. Section 11(3.1) of the PSPP is deleted and replaced with the following:
    (3.1) The annual salary rate referred to in this section shall not exceed the maximum benefit salary rate for that year.
  10. Section 11 of the PSPP is amended to establish the re-instatement buy-back provision applicable to members hired on or after Oct 1/21 by deleting and replacing Subsection 11(4) and by adding new Subsection 11(4.1) as follows:
    Re-Instatement – Pre-October 1, 2021
    (4) Where a member last became a member of the Plan on or before September 30, 2021, despite subsection (3), if any payment has been made from the Fund, the OPSEU Pension Fund or a predecessor fund in respect of the service for which credit is being purchased under clause (1)(b), and if the total amount paid, plus interest thereon from the payment date at such rate as the Board determines, exceeds the amount determined under subsection (3) for the purchase of that credit in the Plan, the member making the purchase shall pay the higher amount.
    Re-Instatement – Post-September 30, 2021
    (4.1) Where a member last became a member of the Plan on or after October 1,  2021, despite subsections (3) and (6), if any payment has been made from the Fund, the OPSEU Pension Fund or a predecessor fund in respect of the service for which credit is being purchased under clause (1)(b), the member making the purchase shall pay the greater of:
    1. the total amount paid from the Fund, the OPSEU Pension Fund or a predecessor fund in respect of such service, plus interest thereon from the payment date at such rate as the Board determines; and
    2. the amount determined under subsection (2).
  11. Subsection 11(5) of the PSPP is amended by deleting the heading “IDEM” and replacing it with the heading “Purchases Of Credit Under Subsection 1(a), 1(e) or 1(h)”
  12. Subsection 11(8) of the PSPP is deleted and replaced with the following:
    (8) The employer is not required to pay to the Fund an amount equal to a payment made by any person under subsections (2), (4.1), (5), (5.1), clause (6)(b) or section 36, 36.1, 36.3, 36.4 or 36.5.
  13. Subsections 13(14), 13(15) and 13(16) of the PSPP are deleted and replaced with the following:
    1. A person entitled to a payment provided by this subsection is entitled to be paid from the Fund an additional amount equal to,
      1. the amount of a refund to which the person is also entitled under subsection (12), less
      2. any portion of the amount of the refund that is attributable to a payment made by the person under subsection 11(2), (4.1) or (5), section 36, 36.3, 36.4 or 36.5 and interest credited to the member in respect thereof.
    2. The amount by which the total of the contributions, other than contributions made to the Fund by or directed by a member in respect of employment or service for any period after the 31st day of December, 1986 under subsection 11(2), (4.1) or (5), 36.3(4) or (5), 36.4(4) or 36.5(4), or any top-up payments made under section 36, 36.1, 36.3, 36.4 or 36.5, and the interest credited to the member in the Fund on those contributions exceeds one-half of the commuted value, excluding credit in the Plan for contributions made in respect of employment or service after the 31st day of December, 1986, under subsection 11(2), (4.1) or (5), 36.3(4) or (5), 36.4(4) or 36.5(4), or any top-up payments made under section 36, 36.1, 36.3, 36.4 or 36.5 of the pension or deferred pension in respect of that employment or service to which the member is entitled on ceasing to be a member, shall be refunded to the former member.
    3. The amount by which the total of the payment to the Fund made under subsection 11(2), (4.1) or (5), 36.3(4) or (5),36.4(4) or 36.5(4), or any top-up payments made under section 36, 36.1, 36.3, 36.4 or 36.5 and the interest credited to the member on that payment in accordance with the Pension Benefits Act exceeds the commuted value of the credit in accordance with the Plan that was purchased with that payment and that is included in a deferred pension that the member has elected to transfer under subsection 16 (6) or in a deferred pension that the member is paid pursuant to subsection 18(3), shall be refunded to the former member.
  14. Subsection 32(h) of the PSPP is deleted and replaced with the following:
    (h) file valuations with the Financial Services Regulatory Authority of Ontario but only after the Minister has advised the Board in writing that he or she agrees that the valuation be filed.
  15. The following new provision is added as subsection 32(l) of the PSPP:
    (l) enter into an agreement to act as administrator of a retirement compensation arrangement established for members of the Plan, administrator of the trust fund associated with such retirement compensation arrangement and trustee of the assets of such trust fund, and to oversee the investment of such trust fund; and to recover, where appropriate, the costs of such trusteeship and administration from such trust fund.
  16. Section 36.4 of the PSPP is amended by deleting the reference to “Superintendent of Financial Services” and replacing it with “Chief Executive Officer of the Financial Services Regulatory Authority of Ontario”.
Treasury Board Secretariat

Approved and Ordered: September 23, 2021