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:

Pursuant to subsection 6 (1) of the Public Service Pension Act, the Public Service Pension Plan set out in Schedule 1 to the Public Service Pension Act, 1989, as amended, is further amended effective on the date this Order is made, as follows:

  1. Section 1 definition of “employer” is amended by replacing ““employer” means” with ““employer” means the employer of a member, which shall be one of the following:”.
  2. Section 1 definition of “member” is amended by removing “(b) who is designated for the purpose of section 9 of the Plan, or”, adding “or” at the end of (a), and renumbering (c) to (b).
  3. Section 1 definition of “salary” is amended by replacing “receiving a pension” with “employed or engaged in any capacity by an employer who contributes to the Fund”.
  4. Section 1 definition of “spouse” is amended by replacing the definition with:
    “spouse” has the same meaning as set out in the Pension Benefits Act;
  5. Section 1 is amended by adding the following definition of “going concern unfunded liability” immediately following the definition of “Fund”:
    “going concern unfunded liability” means the going concern unfunded liability as defined under the Pension Benefits Act;
  6. Section 1 is amended by adding the following definition of “normal cost” immediately following the definition of “Minister”:
    “normal cost” means the normal cost as defined under the Pension Benefits Act;
  7. Section 1 is amended by adding the following definition of “provision for adverse deviations or PfAD” immediately following the definition of “police officer”:
    “provision for adverse deviations or PfAD” means the provision for adverse deviations as defined under the Pension Benefits Act;
  8. Section 1 is amended by adding the following definition of “solvency deficiency” immediately following the definition of “sale of business”:
    “solvency deficiency” means the solvency deficiency as defined under the Pension Benefits Act;
  9. Section 6 is amended by replacing all references to “member” and “member’s credit” with “member or former member” and “member’s or former member’s credit” respectively in subsection (6).
  10. Section 7 is amended by replacing the words “going concern unfunded actuarial liability” with “going concern unfunded liability” in subsection (3).
  11. Section 7 is further amended by revoking subsection (7) and replacing it with:

    Normal cost and PfAD

    (7) In accordance with the Pension Benefits Act and subject to the Public Service Pension Act, the Crown and/or one or more employers that are not the Crown shall pay into the Fund the amount, if any, indicated in an actuarial valuation to be required in respect of the normal cost and the provision for adverse deviations in respect of the normal cost, taking into account employer contributions made under subsection (1) and member contributions made in respect of subsection 6(3) of the Plan.

  12. Section 7 is further amended by adding the following as subsection (8):

    Going concern unfunded liability and solvency deficiency

    (8) Subject to the Public Service Pension Act, the Crown and/or one or more employers that are not the Crown shall pay into the Fund the amount indicated in an actuarial valuation that is required to fund any going concern unfunded liability as well as any solvency deficiency under the Plan.

  13. Section 8 is amended by replacing all references to “one month” with “30 days” in subsections (2), (3), (3.1), (4) and (7).
  14. Section 8 is further amended by replacing the words “or the adoption of a child” with “or a period of parenting under the Employment Standards Act, 2000”, and adding after “by the total of such periods of leave,” the words “subject to the Income Tax Act (Canada) limits,” in subsection (10).
  15. Section 9 is revoked.
  16. Section 10.1 is amended by replacing the words “on or after April 1, 2016” with “on or after April 1, 2020” in subsection (1).
  17. Section 11 is amended by replacing the words “one month” with “30 days” in clauses (1)(e) and (1)(f).
  18. Section 11 is amended by replacing “section 36” with “sections 36, 36.1, 36.3 or 36.4” in subsection (8).
  19. Section 13 is amended by revoking subsection (6) and replacing it with:

    Refund on death where no survivor

    (6) If a member or former member dies before the month when payment of his or her pension is to commence,  and if the member or former member is not survived by a child or children under eighteen years of age or by a spouse from whom the member or former member is not living separate and apart at the member’s or former member’s death, the refund provided by subsection (12) shall, with respect to service before the 1st day of January, 1987, be paid to the person designated by the member or former member or, if no such refund recipient is designated, to the member’s or former member’s estate.

  20. Section 13 is further amended by revoking subsection (8) and replacing it with:

    Refund on death to survivor

    (8) If a member or former member dies before the month when payment of his or her pension is to commence, and before completing ten years of continuous membership and with credit in the Plan for less than ten years, and the member or former member is survived by a child or children under eighteen years of age or by a spouse from whom the member or former member is not living separate and apart, the spouse, or if there is no such spouse surviving, the child or children under eighteen years of age is or are, as the case requires, entitled to the refund provided by subsection (12) and to the payment provided by subsection (14) with respect to service before the 1st day of January, 1987.

  21. Section 13 is further amended by revoking subsection (15) and replacing it with the following:

    50 per cent rule

    (15) 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) or (5), 36.3(4) or (5) or 36.4(4), or any top-up payments made under section 36, 36.1, 36.3 or 36.4, 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) or (5), 36.3(4) or (5) or 36.4(4), or any top-up payments made under section 36, 36.1, 36.3 or 36.4 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.

  22. Section 13 is further amended by revoking subsection (16) and replacing it with the following:

    Excess past service payments refunded

    (16) The amount by which the total of the payment to the Fund made under subsection 11(2) or (5), 36.3(4) or (5) or 36.4(4), or any top-up payments made under section 36, 36.1, 36.3 or 36.4 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.

  23. Section 14 is amended by replacing the words “in accordance with subsection (3)” with “in accordance with subsection (2)” in subsection (4).
  24. Section 15 is amended by adding the words “pursuant to clause 3(1)(b)” immediately following the words “ceases to be a member of the Plan” in subsections (2), (3) and (4).
  25. Section 15 is further amended by replacing the word “credit” with “continuous employment or membership” in clause (4.1)(c) and further by adding the words “until that time” at the end of subsection (4.1).
  26. Section 15 is further amended by adding the following as subsection (4.3):

    (4.3)   Payment of a pension to which a member is entitled under subsection (4.1) shall commence in the month following the month when the member would have become entitled to a pension under subsections (2), (3) or (4) as if the termination had not occurred until that time.

  27. Section 15 is further amended by adding “Subject to subsection (4.3),” at the beginning of the opening flush of subsection (5). 
  28. Section 16 is amended by revoking subsection (2) and replacing it with the following:

    Payment of pension under subs. (1)

    1. Payment of the pension provided for in subsection (1) shall commence in the month following the month when:
      1. the former member will attain sixty-five years of age,
      2. the former member attains the earliest unreduced retirement date to which he or she is entitled under subsection 15(4.1), or
      3. if the former member so elects in writing to the Board, payment of the pension shall, subject to the reductions mentioned in section 17, commence in the month following any month that is not earlier than the month when the former member will attain fifty-five years of age or later than the month when the former member will attain sixty-five years of age.
  29. Section 16 is further amended by adding as subsections (6.2) and (6.3) the following:

    Membership Prior to July 1, 2012 – Right to Prior Refund and Benefits

    (6.2) Notwithstanding any other section of the Plan, if a person terminated membership in the Plan prior to July 1, 2012 and did not receive his or her refund or pension benefits under the Plan at the time of termination, the person (and his or her spouse or beneficiaries as applicable) shall be entitled to the refund or pension benefit that was applicable to that person or persons in accordance with the terms of the Plan as it read on the date of termination.

    Transition Rule – Persons who Terminated Membership Prior to July 1, 2012 – No Right to Pension from Immediate Vesting

    (6.3) Notwithstanding any other section of the Plan, a person who terminated membership in the Plan prior to July 1, 2012 shall not become entitled (and his or her spouse or beneficiaries as applicable shall not become entitled) to pension benefits under the Plan that apply as a result of the changes to the Pension Benefits Act establishing immediate vesting that became effective on July 1, 2012.

  30. Section 16 is further amended by revoking subsection (8). 
  31. Section 16 is further amended by removing reference to subsection (8) in subsection (9).
  32. Section 16 is further amended by revoking subsections (10.1), (11) and (11.1).
  33. Section 16 is further amended by removing reference to subsection (8) in subsection (12).
  34. Section 17 is amended by adding as subsection (4.1) the following:

    Early retirement reduction

    (4.1) The annual amount of every pension provided for in subsection 15(4.1) shall, after computation in accordance with subsection (1), be reduced by five-twelfths of 1 per cent thereof for each month in the period commencing with the first day of the month in which payment of the pension is to commence and ending with the last day of the month in which the member or former member becomes entitled to a pension under subsection 15(4.1), and when the reduction required by subsection (3) is calculated, the reduction required by this subsection applies only to the annual amount of pension payable after giving effect to the reduction required by subsection (3) and shall, if applicable, be recalculated on that basis.

  35. Section 17 is further amended by revoking subsection (4a).
  36. Section 17 is further amended by replacing the words “no survivor pension is payable to the spouse” with “the annual amount of pension to a former member shall be actuarially reduced in a manner approved by the Board to reflect the survivor pension provided for by subsection 19(1)” in Rule 1 of subsection (8).
  37. Section 19 is amended by adding “pursuant to clause 3(1)(b)” after “ceased to be a member of the Plan” in clause (3)(a), removing “if the member or former member and the spouse are or were living separate and apart when the member or former member ceases or ceased to be a member of the Plan” in clause (3)(b), and replacing “by delivering to the Board within twelve months prior to the month when payment of the pension to the member or former member is to commence a written direction in the form approved by the Board and signed by both of them or a certified copy of a domestic contract within the meaning of Part IV of the Family Law Act, containing the election or waiver” with “by delivering to the Board an effective waiver in accordance with the relevant provisions of the Pension Benefits Act” in subsection (3).
  38. Section 20 is amended by replacing the words “two years” with “twenty-four months” in subsection (1).
  39. Section 20 is further amended by replacing “the member” with “the member or former member” and replacing “while a member of the Plan” with “before the month when payment of the member’s or former member’s pension is to commence” in subsection (3).
  40. Section 20 is further amended by replacing “person” with “member or former member”, and “person’s” with “member’s or former member’s” in subsection (5).
  41. Section 22 is amended by removing “the beginning of” in clause (1)(b)
  42. Section 23 is amended by replacing the words “before the beginning of the month when payment of his or her pension is to commence” with “before the month when payment of his or her pension is to commence” in the opening flush of subsection (1).
  43. Section 23 is further amended by adding the words “with respect to service before the 1st day of January, 1987” at the end of subsection (2.1).
  44. Section 26 is amended by changing the section heading from “Re-employment of pensioner” to “Employment or engagement while receiving a pension”.
  45. Section 26 is further amended by replacing the words “three times the monthly salary” with “three times the monthly earnings” in clause (1)(a), and clause (1)(b) is amended by replacing the words “the pension payable to the former member in that period of three months if this section were not applicable to the former member,” with “ three times the monthly pension payable to the former member as calculated at date of pension commencement without inflation adjustments,”.
  46. Section 28 is amended by replacing all references to “member’s” with “member’s or former member’s”, replacing all references to "executor or administrator” with “executor, administrator or estate trustee” and replacing “Supreme Court of Ontario” with “Accountant of the Superior Court of Justice” in subsection (1). 
  47. Section 29 is amended by revoking subsection (1) and replacing it with the following:

    Board to be corporation and Crown agent with exceptions

    (1) (a) The Public Service Superannuation Board is continued under the name of the Ontario Public Service Pension Board, which may also be known as the Ontario Pension Board, and the Board is constituted as a corporation without share capital.

    (b) Notwithstanding Section 2 of the Crown Agency Act and subject to subclauses (i) and (ii), the Board is a Crown agent for all purposes.

    1. The Board may declare in writing in an agreement, security or instrument that it is not acting as a Crown agent for the purposes of the agreement, security or instrument. 
    2. If the Board makes a declaration in accordance with clause (i), the Board shall be deemed not to be a Crown agent for the purposes of the agreement, security or instrument and the Crown is not liable for any liability or obligation of the Board under the agreement, security or instrument. 
  48. Section 29 is further amended by revoking subsection (2) and replacing it with the following subsections:

    Application of corporate law

    (2.1) The Corporations Act does not apply to the Board.

    (2.2) The Not-for-Profit Corporations Act, 2010 does not apply to the Board.

  49. Section 40 is amended by revoking clause (2)(c).

    And pursuant TO subsection 6 (1) of the Public Service Pension Act, the Public Service Pension Plan set out in Schedule 1 to the Public Service Pension Act, 1989, as amended, is further amended effective on April 1, 2020, as follows:

  50. Section 13 is further amended by replacing “a person designated by the member in accordance with this section or, if no such payment recipient is designated, to the member’s estate” in subsection (9) with:
    1. the beneficiary designated pursuant to section 22; or
    2. if there is no such designated beneficiary, the former member’s estate.
  51. Section 13 is further amended by revoking subsection (21).
  52. Section 13 is further amended by replacing “person designated” with “beneficiary designated”, adding “pursuant to section 22” following “designated by the member or former member”, and replacing “refund recipient” with “beneficiary” in subsection (6).
Treasury Board Secretariat

Approved and Ordered: June 06, 2019