O. Reg. 118/14: SOLVENCY FUNDING RELIEF FOR CERTAIN PUBLIC SECTOR PENSION PLANS

Link to law: http://www.ontario.ca/laws/regulation/r14118
Published: 2014-05-01

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ontario regulation 118/14

made under the

Pension Benefits Act

Made: April 30, 2014
Filed: May 1, 2014
Published on e-Laws: May 2, 2014
Printed in The Ontario Gazette: May 17, 2014


Amending O. Reg. 178/11

(SOLVENCY FUNDING RELIEF FOR CERTAIN PUBLIC SECTOR PENSION PLANS)

1. Section 12 of Ontario Regulation 178/11 is amended by adding the following subsections:

(2.1) The special payments required by paragraph 1 of subsection (2) are deemed to be special payments required under clause 5 (1) (e) of the General Regulation.

(2.2) In subsection (2.3),

“previously-scheduled special payments” means, in relation to a particular valuation date,

(a) the special payments required by paragraph 1 of subsection (2) with respect to solvency deficiencies arising before the valuation date that are scheduled for payment after the valuation date, and

(b) the special payments required by paragraph 2 of subsection 9 (2) or paragraphs 2 and 4 of subsection 9 (4), as applicable, with respect to solvency deficiencies arising before the valuation date that are scheduled for payment after the valuation date;

“solvency excess” means, in relation to a particular valuation date, the amount, if any, by which the sum of the solvency assets and the solvency asset adjustment exceeds the sum of the solvency liabilities, the solvency liability adjustment and the prior year credit balance.

(2.3) If there is a solvency excess on a particular valuation date, the previously-scheduled special payments must be adjusted in accordance with the following rules:

1. If the solvency excess is greater than or equal to the sum of the present value of the previously-scheduled special payments, those special payments must be reduced to zero.

2. If the solvency excess is less than the sum of the present value of the previously-scheduled special payments, the solvency excess may be applied to reduce any of the following in order to reduce the solvency excess to zero:

i. The amount of the previously-scheduled special payments required by paragraph 2 of subsection 9 (2) or paragraphs 2 and 4 of subsection 9 (4), as applicable.

ii. The amortization period of the previously-scheduled special payments referred to in subparagraph i.

iii. The amortization period of the previously-scheduled special payments required by paragraph 1 of subsection (2).

2. Item 6 of Schedule 1 to the Regulation is revoked and the following substituted:

 


6.


The Contributory Pension Plan for TUFA Employees of Trent University


1048826


July 1, 2010



3. Schedule 2 to the Regulation is revoked and the following substituted:

schedule 2
public sector pension plans receiving stage two solvency funding relief

 


Item


Name of the pension plan


Registration number




1.


Carleton University Retirement Plan


0526616




2.


Contributory Pension Plan for Hourly-Rated Employees of McMaster University Including McMaster Divinity College


0215418




3.


The Contributory Pension Plan for TUFA Employees of Trent University


1048826




4.


Pension Plan for Professional Staff of Lakehead University


0246058




5.


Pension Plan for Professional Staff of University of Guelph


0324616




6


Retirement Plan of the University of St. Michael’s College


0211441




7.


Retirement Plan of University of Guelph


0324624




8.


The Royal Ontario Museum Pension Plan


0469866




9.


Wilfrid Laurier University Pension Plan


0314492




10.


York University Pension Plan


0329763




Commencement

4. This Regulation comes into force on the later of July 1, 2014 and the day it is filed.