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 Ontario Northland Transportation Commission (ONTC) is a body corporate established under the Ontario Northland Transportation Commission Act;

And Whereas certain classes of ONTC employees currently participate in a pension plan known as The Contributory Pension Plan of the Ontario Northland Transportation Commission on November 1, 1922, which pension plan has been amended and restated effective April 30, 1939, December 31, 1972, January 1, 1988, January 1, 1992, January 1, 2006, and which pension plan has most recently been amended by the amendment dated February 4, 2016 and approved by Order in Council O.C. 610/2016 dated April 20, 2016, registration number 0355164 (ONTC Plan);

And Whereas the ONTC also provides a supplemental payment under a plan entitled the Supplemental Employee Retirement Plan (SERP) to certain retirees whose pension entitlement is limited by the maximum pension payable pursuant to the provisions of the Income Tax Act (Canada);

And Whereas certain non-bargaining employees that transferred from the ONTC as part of a divestment on April 1, 2002 to the Owen Sound Transportation Company Limited (OSTC), a corporation established under the Ontario Business Corporations Act, are members of the ONTC Plan;

And Whereas the ONTC and the OSTC, which are public bodies and agents of the Crown, have requested to be designated as participating employers in the Public Service Pension Plan (PSPP) set out in Schedule 1, as amended, under the Public Service Pension Act and in the Public Service Supplementary Benefits Account that has been continued under Order in Council 3044/98 as amended by Order in Council 1905/2009 and by Order in Council 2238/2017, and as may be further amended from time to time (PSSBA);

And Whereas, pursuant to a separate Order in Council, the Lieutenant Governor in Council is designating the employees of the ONTC and the above-noted employees of the OSTC as classes of employees who are either required or eligible to join the PSPP effective May 1, 2018;

And Whereas the Lieutenant Governor in Council considers it reasonable and appropriate for the assets and liabilities in the ONTC Plan in respect of pension credit accrued by ONTC/OSTC employees and former employees prior to May 1, 2018 to be transferred into the PSPP pursuant to Section 81 of the Pension Benefits Act;

And Whereas the Lieutenant Governor in Council considers it reasonable and appropriate to facilitate the purchase of credit in the PSPP for periods of employment of ONTC/OSTC employees and former employees prior to May 1, 2018, and also to provide for other transition provisions in relation to former ONTC/OSTC employees;

Now therefore pursuant to subsection 6(1) of the Public Service Pension Act, the Public Service Pension Plan set out in Schedule 1 under that Act, as amended, is further amended, as follows:

  1. Section 1 is amended by adding a definition of “ONTC Plan” immediately after the definition of “Ontario Provincial Police”.

    “ONTC Plan" means the pension plan known as The Contributory Pension Plan of the Ontario Northland Transportation Commission on November 1, 1922, which pension plan has been amended and restated effective April 30, 1939, December 31, 1972, January 1, 1988, January 1, 1992, January 1, 2006, and which pension plan has most recently been amended by the amendment dated February 4, 2016 and approved by Order in Council OC 610/2016 dated April 20, 2016, registration number 0355164.

  2. Subsection 8(3) is amended by adding the phrase “or comparable provisions in other applicable employment standards legislation” immediately after the reference to the Employment Standards Act 2000.
  3. Subsection 8(3.1) is amended by adding the phrase “or comparable provisions in other applicable workplace safety and insurance legislation” immediately after the reference to the Workplace Safety and Insurance Act in paragraph (a).
  4. Subsection 10.1(3) is amended by adding the phrase “or comparable provisions in other applicable workplace safety and insurance legislation” immediately after the reference to the Workplace Safety and Insurance Act.
  5. Paragraph 11(1)(f) is amended by adding the phrase “or comparable provisions in other applicable employment standards legislation” immediately after the reference to the Employment Standards Act, 2000.
  6. Subsections 13(14), (15) and (16) of the Plan are amended by deleting the references to "subsection 11(2) or (5), section 36 or section 36.3" in each of those subsections and replacing them with a reference to "subsection 11 (2) or (5), section 36, 36.3 or 36.4".
  7. Section 17 of the Plan is amended by adding new subsections 17(1.1), (1.2) and 17(1.3) immediately following subsection 17(1).

    Guarantee for ONTC Credit Prior to May 1, 2018

    17 (1.1) Subject to the other subsections of this Section, the annual amount of every pension payable to a former member with respect to credit that was transferred to the Plan from the ONTC Plan in respect of service prior to May 1, 2018 shall be calculated as follows:

    1. before a former member attains sixty-five years of age, as the greater of:
      1. the annual amount of pension calculated in accordance with subsection 17(1) of the Plan, and
      2. 2 per cent of the former member’s “Highest Average Earnings” under the ONTC Plan as of April 30, 2018 multiplied by the years and completed months of transferred credit; and
    2. when a former member who is in receipt of a pension attains sixty-five years of age or who is not in receipt of a pension commences to receive a pension on or after attaining sixty-five years of age, as the greater of:
      1. the annual amount of pension calculated in accordance with subsection 17(1) less the reduction under subsection 17(3) of the Plan, and
      2. 2 per cent of the former member’s “Highest Average Earnings” under the ONTC Plan multiplied by the years and completed months of transferred credit minus 0.5 per cent of the member’s “Highest Average Earnings” not in excess of the “Highest Average CPP Earnings” under the ONTC Plan multiplied by the years and completed months of transferred credit, all as of April 30, 2018.

    17 (1.2) The annual amount of every pension provided for in subsection (1.1) shall be subject to the reductions set out in subsections 17 (4) to (9) and sections 20 and 21 of the Plan, as applicable, and the equivalent reduction provisions of the ONTC Plan shall not apply.

    17(1.3) For greater certainty, the amount calculated under subparagraph (1.1)(b)(ii) shall not be subject to the reduction under subsection 17(3).

  8. The Plan is amended by adding new Section 36.4 immediately following Section 36.3.

    Transfer from ONTC Plan to PSPP

    36.4 (1) Following the designation of certain classes of the Ontario Northland Transportation  Commission (ONTC) and Owen Sound Transportation Company Limited (OSTC) employees as persons who are either required or eligible to be members in the Plan effective May 1, 2018, and in accordance with Section 81 of the Pension Benefits Act, the Board may enter into one or more written agreements with the ONTC providing for the transfer to the Plan of the assets and liabilities in the ONTC Plan in respect of credit accrued prior to May 1, 2018 for members, former members and retired members of the ONTC Plan as well as other persons who are entitled to payments under the ONTC Plan.

    Transfer of assets

    (2) If the Board enters into the transfer agreement described in subsection (1), the Board shall comply with all applicable requirements under the Pension Benefits Act in order to transfer the assets from the ONTC Plan into the Plan.

    ITA Limits

    (3) The transfer of assets and liabilities under this section is subject to the limitations set out in the Income Tax Act (Canada) and Regulations.

    Other service

    (4) The ONTC/OSTC employees who were members of the ONTC Plan on or before April 30, 2018 and have one or more periods of employment with the ONTC/OSTC prior to April 30, 2018 for which they do not have credit in the ONTC Plan, and who become members of the Plan on or after May 1, 2018, may purchase credit in the Plan in respect of that period or periods of prior employment by paying into the Fund the amount set out in subsection 11 (2).

    Transition - Deferred ONTC Plan Members and Retirees

    (5) If the assets and liabilities in the ONTC Plan in respect of credit accrued prior to May 1, 2018 are transferred to the Plan pursuant to this section, former ONTC/OSTC employees and their beneficiaries who are entitled to a deferred pension or other payment or who commence receipt of a pension or other payment under the ONTC Plan prior to the date on which the Superintendent of Financial Services consents to the transfer of assets shall be entitled to payment from the Fund in an amount equal to the pension benefits or other payment that are paid or payable to them in accordance with the terms and conditions in the ONTC Plan as of the date immediately preceding the date consent is granted and, for the purpose, these former employees shall be former members of the Plan.

    (6) If the assets and liabilities in the ONTC Plan in respect of credit accrued prior to May 1, 2018 are transferred to the Plan pursuant to this section, and if any of the persons described in subsection (5) accrue credit in the Plan between May 1, 2018 and the date on which the Superintendent of Financial Services consents to the transfer of assets, their pension benefits in respect of that credit shall be calculated separately in accordance with the terms of the Plan.

    (7) For the persons described in subsection (5), all conditions, terms and rules that applied and options that were available for the payment, eligibility and entitlement to a pension or other payment under the ONTC Plan as of the date immediately preceding the date the Superintendent of Financial Services consents to the transfer of assets shall apply to the payment, entitlement and eligibility to the pension or other payment provided under subsection (5).

Treasury Board Secretariat

Approved and Ordered: March 21, 2018