Order in Council 610/2018

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

And Whereas, pursuant to a separate Order in Council, the Lieutenant Governor in Council is designating the employees of the ONTC, and the non-bargaining employees that transferred from the ONTC as part of the divestment on April 1, 2002 to the OSTC as classes of employees who are either required or eligible to join the PSPP effective May 1, 2018;

And Whereas certain classes of the ONTC/OSTC 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 OC 610/2016 dated April 20, 2016, registration number 0355164 (ONTC Plan);

And Whereas since September 1993 the ONTC/OSTC employees whose pension entitlement is limited under the ONTC Plan by the maximum pension payable pursuant to the provisions of the Income Tax Act (Canada) also participate in a plan entitled the Supplemental Employee Retirement Plan (SERP);

And Whereas the PSSBA exists for PSPP members to provide pension benefits in excess of those permitted for registered pension plans under the Income Tax Act (Canada);

And Whereas, pursuant to a separate Order in Council, the PSPP is being amended to authorize the Ontario Pension Board to enter into one or more written agreements with the ONTC in accordance with Section 81 of the Pension Benefits Act to provide for the transfer to the Plan of the assets and liabilities in the ONTC Plan in respect of pension 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 the ONTC Plan;

And Whereas the Lieutenant Governor in Council considers it reasonable and appropriate for the pension credit accrued by the ONTC/OSTC employees and former employees prior to May 1, 2018 under the ONTC Plan to be eligible for inclusion in the calculation of benefits in accordance with the terms of the PSSBA;

Now therefore pursuant to Section 6.01 of the Public Service Pension Act, Order in Council 3044/98 as amended by Order in Council 1905/2009, and Order in Council 2238/2017 is further amended as follows:

1. Section 1 is amended by adding a new definition of "ONTC Supplemental Member" immediately following the definition of “Minister”.

   "ONTC Supplemental Member" means a member who is or was an employee of the Ontario Northland Transportation Commission (ONTC) or the Owen Sound Transportation Company Limited (OSTC) and who, as of April 30, 2018, had accrued credit in 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 (ONTC Plan) and who joined the Public Service Pension Plan effective May 1, 2018.

2. The Order is further amended by adding a new section 3.1.

   3.1 For the purpose of calculating the supplementary benefit payable under section 2, the pension described in clause 2(a) that would have been payable if determined without reference to clause 40(2)(d) of the Plan and the Pension paid in clause 2(b) shall include the credit that is transferred into the Plan under Section 36.4 of the Plan.

3. The Order is further amended by adding a new Section 10.2 immediately following Section 10.1.

   10.2 Despite sections 4 and 9 of this Order, if assets are transferred into the Plan pursuant to Section 36.4 of the Plan, the following rules apply for an ONTC Supplemental Member:

   1. The ONTC shall transfer into the Account an amount that is determined by an actuary who is employed or retained by the Crown to be equal to the value of the pension benefits that are or will become payable collectively to all of the ONTC Supplemental Members in accordance with Section 2 of this Order for the credit each member accrued in the ONTC Plan in respect of service prior to May 1, 2018; and
   2. Upon the completion of the transfer described in paragraph (a), each ONTC Supplemental Member shall be deemed to have met the requirements for member contributions under sections 4 and 9 of this Order for the credit described in Section 3.1 of this Order that each member accrued in the ONTC Plan in respect of service before May 1, 2018.
   3. 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’s Supplemental Employee Retirement Plan (SERP) prior to the date on which the Superintendent of Financial Services consents to the transfer of assets from the ONTC Plan to the Plan pursuant to section 81 of the Pension Benefits Act shall be entitled to payment from the PSSBA 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 of the SERP as of the date immediately preceding the date consent is granted.
   4. If the assets and liabilities in the ONTC Plan in respect of credit accrued prior to May 1, 2018 are transferred to the Plan, and if any of the persons described in subsection 36.4 (5) of the Plan 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 from the ONTC Plan to the Plan pursuant to section 81 of the Pension Benefits Act, their pension benefits in respect of that credit shall be calculated separately in accordance with the terms of the PSSBA.
   5. For the persons described in subsection 36.4 (5) of the Plan, 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’s SERP as of the date immediately preceding the transfer shall apply to the payment, entitlement and eligibility to the pension or other payment provided under paragraph 10.2(c).