Public Service Past Service Supplemental Pension Plan

  1. Introduction
    1. Establishment
      This Public Service Past Service Supplemental Pension Plan (the “Plan”) is established by Order in Council.
    2. Public Service Past Service Supplemental Pension Plan Provisions
      This Schedule 1 to the Order in Council constitutes the provisions of the Plan and applies to members of a class that has been designated by the President of the Treasury Board as eligible to participate in the Plan (the “Members”).
    3. Purpose
      The primary purpose of the Plan is to allow Members to fund past service pension benefits that cannot be provided under the Public Service Supplementary Benefits Account (the “PSSBA”).
  2. Construction and Interpretation
    1. Construction
      The division of this Plan text into sections, subsections, clauses, and the insertion of headings, sub-headings, an introduction, and a table of contents is for convenience and reference only and shall not affect the construction or interpretation of the Plan.
    2. Interpretation
      The provisions of the Plan are to be interpreted in the same manner as the provisions of the PSSBA subject to necessary modifications.
    3. Elections under the PSSBA apply to the Public Service Past Service Supplemental Pension Plan
      Any choice, selection, election or waiver made or deemed to be made under the PSSBA, either directly under the PSSBA or through the application of any election or waiver made or deemed to be made under the Public Service Pension Plan, that can apply shall apply to the Plan including, but not limited to, the following:
      1. the type or form of a pension benefit,
      2. the pension commencement date,
      3. the designation of beneficiaries and recipients,
      4. joint and survivor pensions,
      5. the division of pension assets on marriage breakdown except that any payment from the Plan to the Member’s spouse in respect of the value of the spouse’s pension benefit that is made prior to the date of pension commencement shall be paid in cash as a lump sum, or
      6. shortened life expectancy.
  3. Definitions
    1. Definitions
      In this Schedule 1,
      “Account”
      means the account for the Public Service Past Service Supplemental Pension Plan established within the Consolidated Revenue Fund.
      “Act”
      means the Public Service Pension Act, R.S.O. 1990, c. P.48, as amended from time to time.
      “Administrator”
      means the Ontario Public Service Pension Board referred to in the PSPP or any other person with whom the Minister has entered into an agreement to administer the Plan.
      “Credit”, when used in reference to credit in the Plan,
      means the total period of time for which contributions are made to the Plan on behalf of a Member for the purchase of prior service under the Plan.
      “Former Member”
      means a person who has ceased to be Member under Section 4.2 of the Plan and who is entitled, either immediately or at a future time, to payment of a Supplemental Benefit under the Plan.
      “Member”
      means a person who meets the requirements of section 4.1 but does not include a Former Member.
      “Minister”
      means the minister to whom the responsibility for the administration of the Act is assigned under the Executive Council Act.
      “Order in Council”
      means Order in Council O.C.1806/2020 dated December 18, 2020 authorizing the establishment of the Plan.
      “Plan”
      means the Public Service Past Service Supplemental Pension Plan as set out in this Schedule.
      “PSPP”
      means the Public Service Pension Plan as set out in Schedule 1 to the Public Service Pension Act, 1989, as amended from time to time.
      “PSSBA”
      means the Public Service Supplementary Benefits Account established under Order in Council 3044/98, as amended from time to time.
      “Service Level Agreement”
      means the agreement between the Administrator and the Crown regarding the administration of the Plan and includes any rider to any existing agreements between the Administrator and the Crown.
      “Supplemental Benefit”
      means the aggregate payments or payment, made periodically or at one time, from the Account as part of the Plan.
    2. PSPP Definitions Apply
      Except as otherwise stated in section 3.1, where terms that are defined in the PSPP are used in this Plan, the definitions of those terms in the PSPP apply to this Plan with necessary modifications.
  4. Membership
    1. Membership
      A person who:
      1. is a member of and contributing under the PSPP, and
      2. is a member of a class that has been designated by the President of the Treasury Board in writing to the Administrator as eligible to participate in the Plan.

      shall be a Member of the Plan.

    2. Cessation of Membership
      A Member ceases to be a Member of the Plan upon the earliest of:
      1. ceasing to be a member of the PSPP, or
      2. the death of the Member.
  5. Contributions and Funding
    1. Member contributions
      Each Member shall contribute to the Account the amount determined by the Administrator on the recommendation of an actuary to be equal to the actuarial value of the benefits to which the member will become entitled on obtaining the Credit. The amount shall be determined based on the date a complete application to purchase the Credit is received by the Administrator.
    2. Funding by the Crown
      The Crown shall be responsible for any funding necessary to provide the Supplemental Benefit once the Member has made the Member contributions contemplated in Section 5.1.
    3. Surplus May Reduce Crown Payments
      At the direction of the Minister, any amount in the Account that is indicated by a going concern actuarial valuation to be surplus to the requirements of the Plan while it continues in existence may be held in the Account to the credit of the Crown to be applied against any amount that would otherwise be paid or credited by the Crown under Section 5.2 provided that no going concern unfunded actuarial liability arises in the Plan.
  6. Pension Commencement Date
    1. General
      A Former Member shall commence receiving a Supplemental Benefit under the Plan at the same time that a pension is paid to the Former Member under the PSPP.
  7. Supplemental Benefits
    1. Computation of Pension
      The Supplemental Benefit payable to a member under the Plan is equal to the benefit that would be payable under the PSSBA if the Credit was included in the calculation of that benefit minus the benefit actually payable from the PSSBA.
    2. Calculation Date
      The Supplemental Benefit shall be calculated at the date on which membership ceases in the Plan.
    3. Reductions to PSPP Pension Apply
      Where a Member’s pension benefit under the PSPP is reduced for a reason including, but not limited to, the rules regarding:
      1. early retirement,
      2. spousal survivor pensions,
      3. the application of shortened life expectancy provisions, and
      4. the division of pension assets on marriage breakdown,
      any benefit calculated under Section 7.1 shall be reduced in proportion to the reduction applied to the Member’s pension benefit under the PSPP.
    4. Continued Employment or Re-engagement
      If a Former Member who is receiving a Supplemental Benefit remains employed, is re-employed, or engaged in any capacity by an employer who participates in the PSPP, the formula set out in Subsection 26(1) of the PSPP shall apply with necessary modifications.
    5. Same Form as PSPP
      A Supplemental Benefit payable to a Former Member under the Plan shall be payable in the same manner and in the same form as pension benefits payable to the former member under the PSPP.
    6. Payment of Supplemental Benefit upon Transfer or Withdrawal from PSPP Fund
      Where a Former Member withdraws or transfers from the PSPP Fund any amount payable under the PSPP, the commuted value of the benefit under section 7.1 shall be paid to the Former Member in cash.
    7. Inflation
      The Supplemental Benefit payable under the Plan shall be adjusted for inflation in the same manner and at the same time as pension benefits payable under the PSPP.
  8. Death Prior to Commencement of Supplemental Benefit
    1. Pre-Retirement Death Benefit
      The death benefit for a Member or Former Member under the Plan who dies prior to the commencement of Supplemental Benefit under the Plan shall be equal to the commuted value of the benefit calculated under section 7.1 and shall be payable in the same form and to the same person(s) as the pre-retirement death benefit payable under the PSPP.
    2. Post-Retirement Death Benefit
      The death benefit of a Former Member who dies after the commencement of Supplemental Benefit shall be in the same manner as the death benefit payable under the PSPP.
  9. Application
    1. Purchase of Past Service
      A Member may:
      1. only purchase Credit in the Plan for service which the Member also has a benefit entitlement under the PSPP, and
      2. purchase Credit any time up to the earliest of the Member’s date of termination of employment or pension commencement date under the PSPP provided that the Member has paid the full amount of the contributions contemplated in Section 5.1 to the Administrator prior to starting a pension or receiving any other pension benefits from the PSPP.
  10. Account
    1. Establishment of Account
      The Account shall be established for the receipt of contributions and for the payment of benefits and other payments or transfers as described in the Order in Council and this Schedule 1.
    2. Custodian The Minister of Finance shall be the custodian of the Account and shall have charge of the investment of money from time to time to the credit of the Account.
    3. Interest paid into the Account
      Pursuant to section 7 of the Financial Administration Act, interest on balances to the credit of the Account shall be paid in accordance with the terms set out in the applicable order(s) in council under that Act.
    4. Payments from the Account
      Payments for any entitlement under the Plan shall be from the Account and no payment from the Account shall be otherwise than for the entitlements provided in the Plan and no person is entitled to receive any benefit from the Account which is in excess of, or in addition to, the Supplemental Benefit provided for under the Plan.
  11. Administration
    1. Plan Administrator
      The Administrator shall have the powers and responsibilities given to it under the Service Level Agreement.
    2. Administration Expenses The expenses for the administration of the Plan shall be paid in accordance with the Service Level Agreement and shall not be paid from the funds in the Account.
    3. Actuarial Valuation
      1. An actuary employed or retained by the Administrator shall:
        1. prepare an initial going concern actuarial valuation report acceptable to the Minister not more than one year after the date the first Member makes a contribution under Section 5.1 and at intervals of not more than three years thereafter, and
        2. prepare any additional actuarial valuation reports that may be requested by the Minister, and shall, through the Secretary of the Management Board of Cabinet, report to the Minister and the Minister of Finance on the amount required to fund the Supplemental Benefits and on the adequacy of the Account, as then constituted to provide the Supplemental Benefits.
    4. Limitation of Assignment
      No right of a person under the Plan is capable of being assigned, charged, anticipated, given as security or surrendered, except in a manner consistent with the treatment of benefits under the PSPP.
    5. No Right to Engagement
      The Plan shall not be construed to create or enlarge any right of any person to remain in the employment of an employer, nor shall it interfere in any manner with the right of an employer to discharge any person.
    6. Fiscal Year
      The fiscal year of the Plan is the same as the fiscal year of the PSPP.
  12. Non-Application of Legislation
    1. Non-Application of Income Tax Act (Canada)
      The provisions of the PSPP requiring compliance with the Income Tax Act (Canada) and Regulations for all credit accruing and all contributions made after December 31, 1991 under the PSPP do not apply to the Plan.
    2. Non-Application of the Pension Benefits Act (Ontario)
      Pursuant to subsection 47(3) of Regulation 909 made under the Pension Benefits Act (Ontario), the Plan is exempt from the Pension Benefits Act (Ontario).
  13. Excess Refunds under the PSPP
    1. No 50 Per Cent Rule Excess Refund
      If a Former Member is entitled to a refund under subsection 13(15) of the PSPP, the Supplemental Benefits and contributions under the Plan are excluded from any refund calculation.
  14. Amendments and Termination
    1. Amendments and Termination of the Plan
      1. The Plan may be amended or terminated at any time by Order of the Lieutenant Governor in Council.
      2. In the event the Plan is terminated, after the allocation of assets to satisfy all benefit entitlements under the Plan, any remaining assets of the Account shall revert to the Crown.
    2. Automatic Termination of the Plan
      In the event that the PSSBA becomes funded, either partly or fully, through a Retirement Compensation Arrangement as that term is defined under the Income Tax Act (Canada) and Regulations, the Plan shall be automatically terminated.
      Any funds held in the Account as at the date of termination of the Plan under this section shall be transferred to the PSSBA effective as at the date of termination of the Plan and the benefits payable under the Plan shall instead be payable from the PSSBA.

Order in Council 1806/2020