O. Reg. 105/14: ABIBOW CANADA INC. PENSION PLANS

Link to law: http://www.ontario.ca/laws/regulation/r14105
Published: 2014-04-10

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ONTARIO REGULATION 105/14

made under the

PENSION BENEFITS ACT

Made: April 9, 2014
Filed: April 10, 2014
Published on e-Laws: April 11, 2014
Printed in The Ontario Gazette: April 26, 2014


Amending O. Reg. 196/11

(ABIBOW CANADA INC. PENSION PLANS)

1. The title of Ontario Regulation 196/11 is amended by striking out “AbiBow Canada Inc.” and substituting “Resolute FP Canada Inc.”.

2. (1) The heading preceding section 5 and subsection 5 (1) of the Regulation are revoked and the following substituted:

Framework for Funding Relief

Overview of contributions and other payments to the Ontario pension plans

(1) The employer is required to make the following contributions to each Ontario pension plan in accordance with this Regulation:

1. Annual basic amortization contributions to the pension plan, as described in section 7.

2. An additional contribution to the pension plan for the period that begins on July 1, 2013 and ends on June 30, 2014, as described in section 7.1.

3. Supplemental contributions to the pension plan beginning in 2016, in the circumstances described in section 9 and as described in that section.

4. Special contributions to the pension plan with respect to a reduction before April 15, 2014 in the employer’s pulp and paper production capacity in Ontario or Quebec, as described in section 11.

(2) Subsection 5 (4) of the Regulation is amended by striking out “Despite sections 6 to 14” at the beginning and substituting “Despite sections 7 to 14”.

3. Section 6 of the Regulation is revoked and the following substituted:

Joint election to defer certain contributions

6. (1) The administrators of all of the participating Ontario pension plans may jointly file an election with the Superintendent to defer the payment of certain contributions.

(2) The joint election must be filed before May 15, 2014 and it cannot be withdrawn.

(3) If the joint election is filed in accordance with this section, the employer is required after April 14, 2014 to make deferred contributions in accordance with this Regulation to each Ontario pension plan, as described in sections 16 and 17.

(4) If no joint election is filed in accordance with this section, the employer’s obligation after April 14, 2014 to make the contributions required by section 8, as it read on April 14, 2014, and to take the corrective measures required by sections 15 and 16, as they read on April 14, 2014, is not affected by the revocation of those sections.

(5) If no joint election is filed in accordance with this section, the employer’s obligation after April 14, 2014 to give the Superintendent the notices and actuarial cost certificates required by section 16, as it read on April 14, 2014, is not affected by the revocation of that section.

(6) If no joint election is filed in accordance with this section, the employer’s obligation after April 14, 2014 to give the Superintendent information and documents upon request under section 25, as it read on April 14, 2014, is not affected by the revocation of that section.

(7) If no joint election is filed in accordance with this section, the employer’s obligation after April 14, 2014 to prepare and file the reports required by section 31, as it read on April 14, 2014, is not affected by the amendment of that section.

4. The Regulation is amended by adding the following heading before section 7:

Annual Basic Amortization Contributions

5. Subsection 7 (4) of the Regulation is revoked and the following substituted:

(4) The amount of the annual basic amortization contribution that must be made to a particular participating Ontario pension plan under this section for a particular month during the 12-month period is calculated using the formula,

A × B/C

in which,

“A” is $4,166,667 for any month before July 2014 and is $6,666,667 for any month after June 2014,

“B” is the amount of the adjusted solvency deficiency of the plan as of the applicable valuation date, and

“C” is the sum of the adjusted solvency deficiencies for every participating pension plan as of the applicable valuation date.

6. The Regulation is amended by adding the following section:

Adjustment to basic amortization contribution for 2013-2014

7.1 (1) The employer (or a person or entity required to make contributions on behalf of the employer) shall make the contribution that is required by this section to each of the participating Ontario pension plans with respect to the 12-month period that begins on July 1, 2013 and ends on June 30, 2014.

(2) The amount of the contribution that must be made to a particular participating Ontario pension plan with respect to this period is calculated using the formula,

$45 million × D/E

in which,

“D” is the amount of the adjusted solvency deficiency of the plan as of December 31, 2012, and

“E” is the sum of the adjusted solvency deficiencies for every participating pension plan as of December 31, 2012.

(3) The contribution to a particular participating Ontario pension plan must be paid no later than June 30, 2014.

7. Section 8 of the Regulation is revoked.

8. The Regulation is amended by adding the following heading before section 9:

Other Contributions and Payments

9. (1) The definition of “J” in paragraph 2 of subsection 9 (1) of the Regulation is revoked and the following substituted:

“J” is the sum of all monthly basic amortization contributions under section 7 that were made during the previous year to all participating pension plans.

(2) Paragraph 2 of subsection 9 (13) of the Regulation is revoked and the following substituted:

2. Determine the sum of the payments of unfunded commuted value made during the year from the pension plan, which is an amount equal to the sum of the transfer deficiencies that are transferred during the year from the pension plan,

i. excluding any transfer deficiencies paid from the pension plan during a year when the latest annual report indicates that the pension plan has a transfer ratio of one or more, and

ii. excluding any transfer deficiencies funded through contributions made to the pension plan that are in addition to the contributions required under this Regulation.

10. Subsection 10 (2) of the Regulation is revoked and the following substituted:

(2) The amount of the aggregate supplemental contribution to be made with respect to a year in which section 9 applies is the greater of zero and the amount calculated using the formula,

V − W

in which,

“V” is the sum of all payments made in the previous year from every participating pension plan for unfunded benefits, as determined under subsection 9 (13), and

“W” is the sum of all basic amortization contributions made during the previous year to every participating pension plan.

11. (1) Subsection 11 (1) of the Regulation is amended by adding at the end “before April 15, 2014”.

(2) Subsection 11 (4) of the Regulation is amended by striking out “before 2020” in the portion before the formula.

(3) Subsection 11 (6) of the Regulation is amended by striking out “before December 31, 2020”.

12. (1) Subsection 14 (3) of the Regulation is revoked.

(2) The definitions of “Z” and “AA” in subsection 14 (4) of the Regulation are revoked and the following substituted:

“Z” is the amount of the adjusted solvency deficiency of the particular pension plan as of December 31 of the previous year, and

“AA” is the sum of the adjusted solvency deficiencies of all participating pension plans as of December 31 of the previous year.

(3) Subsection 14 (5) of the Regulation is amended by striking out “within 30 days after the report is filed” at the end.

(4) Section 14 of the Regulation is amended by adding the following subsection:

(6) For the purposes of the definition of “B” in subsection 5 (16) of the General Regulation, the total amount of contributions does not include a voluntary contribution made to a participating Ontario pension plan under this section if the contribution is required under an agreement referred to in section 1.

13. The heading preceding section 15 and sections 15, 16 and 17 of the Regulation are revoked and the following substituted:

Transition for Deferral of Contributions

Transition, annual reports

15. (1) This section applies if a joint election is filed in accordance with section 6.

(2) No later than June 30, 2014, the administrator of each participating Ontario pension plan shall file an annual report for the pension plan, prepared with a valuation date of December 31, 2012, that complies with the requirements of subsection 31 (3) as it read on December 31, 2012.

(3) No later than June 30, 2014, the administrator of each participating Ontario pension plan shall file an annual combined report about all of the pension plans, prepared with a valuation date of December 31, 2012, that complies with the requirements of subsection 35 (4) as it read on December 31, 2012.

(4) The annual report required by subsection (2) and the annual combined report required by subsection (3) must also contain the information required by subsection 31 (3), as it reads on April 15, 2014, with respect to the contribution required by section 7.1 and the deferred contributions required by sections 16 and 17.

Deferral re: additional contribution

16. (1) This section applies if,

(a) a joint election is filed in accordance with section 6; and

(b) the annual combined report filed under subsection 15 (3) discloses that the aggregate solvency ratio as of December 31, 2012 for all participating pension plans is less than the target aggregate solvency ratio as of the same date.

(2) The employer (or a person or entity required to make contributions on behalf of the employer) shall make an additional contribution in accordance with this section to a participating Ontario pension plan for 2013, and the amount of the additional contribution is calculated in accordance with subsections 8 (2) and (3) as they read on December 31, 2012.

(3) Payments to liquidate the amount of the additional contribution for 2013, with interest commencing on August 1, 2013 at the rate used for the solvency valuation in the annual report filed under subsection 15 (2), shall be made in equal monthly instalments over a period of five years beginning no later than December 31, 2021, despite subsection 8 (4) as it read on December 31, 2012.

(4) For the purposes of subsections 1.2 (1) and (2) of the General Regulation, the solvency asset adjustment must also include the present value of the payments described in subsection (3).

(5) Despite clause 5 (1) (e) and subsection 5 (1.0.1) of the General Regulation, the payments described in subsection (3) are deemed to be special payments under subsection 5 (1) of the General Regulation made for the purpose of liquidating a solvency deficiency.

(6) Subsection 5 (1.0.1) of the General Regulation does not apply to a participating Ontario pension plan in respect of the additional contribution.

Deferral re: corrective measures

17. (1) This section applies if,

(a) a joint election is filed in accordance with section 6; and

(b) as of a valuation date of December 31, 2013 or an earlier valuation date, the aggregate solvency ratio of all of the participating pension plans is less than the target aggregate solvency ratio by more than 5 per cent, according to any combined report filed under this Regulation either before or after this section comes into force.

(2) No later than June 30, 2014, the administrator of each participating Ontario pension plan shall file the notices, documents and actuarial cost certificates required by sections 15 and 16 as they read on December 31, 2011, with respect to the aggregate solvency ratio and target aggregate solvency ratio as of December 31, 2011, despite the deadlines set out in subsections 16 (1) and (2) as they read on that date.

(3) Payments to liquidate the amount of the contribution required to achieve the target ratios referred to in subsection (2), with interest at the rate used for the solvency valuation in the annual report, shall be made in equal monthly instalments over a period of five years beginning no later than December 31, 2021, despite subsection 15 (2) as it read on December 31, 2011.

(4) No later than June 30, 2014, the administrator of each participating pension plan shall file the notices, documents and actuarial cost certificates required by sections 15 and 16 as they read on December 31, 2012, with respect to the aggregate solvency ratio and target aggregate solvency ratio as of December 31, 2012, despite the deadlines set out in subsections 16 (1) and (2) as they read on that date.

(5) Payments to liquidate the amount of the contribution required to achieve the target ratios referred to in subsection (4), with interest at the rate used for the solvency valuation in the annual report, shall be made in equal monthly instalments over a period of five years beginning no later than December 31, 2021, despite subsection 15 (2) as it read on December 31, 2012.

(6) No later than nine months after the combined report with a valuation date of December 31, 2013 is filed, the administrator of each participating pension plan shall file the notices, documents and actuarial cost certificates required by sections 15 and 16 as they read on December 31, 2013, with respect to the aggregate solvency ratio and target aggregate solvency ratio as of December 31, 2013.

(7) Payments to liquidate the amount of the contribution required to achieve the target ratios referred to in subsection (6), with interest at the rate used for the solvency valuation in the annual report, shall be made in equal monthly instalments over a period of five years beginning no later than December 31, 2021, despite subsection 15 (2) as it read on December 31, 2013.

(8) For the purposes of subsections 1.2 (1) and (2) of the General Regulation, the solvency asset adjustment must also include the present value of the payments described in subsections (3), (5) and (7).

(9) Despite clause 5 (1) (e) and subsection 5 (1.0.1) of the General Regulation, the payments described in subsections (3), (5) and (7) are deemed to be special payments under subsection 5 (1) of the General Regulation made for the purpose of liquidating a solvency deficiency.

(10) Subsection 5 (1.0.1) of the General Regulation does not apply to a participating Ontario pension plan in respect of the contributions referred to in subsections (3), (5) and (7).

14. Paragraph 3 of subsection 20 (2) of the Regulation is amended by striking out “sections 6 to 13” at the end and substituting “sections 7 to 13”.

15. Subsection 21 (1) of the Regulation is amended by striking out “sections 6 to 13” and substituting “sections 7 to 13”.

16. Section 25 of the Regulation is revoked.

17. (1) Paragraphs 1, 2, 3 and 4 of subsection 28 (1) of the Regulation are revoked.

(2) Paragraph 5 of subsection 28 (1) of the Regulation is amended by striking out “in 2011” and substituting “in 2013”.

(3) Paragraph 6 of subsection 28 (1) of the Regulation is amended by striking out “in 2011” and substituting “in 2013”.

(4) Subsection 28 (2) of the Regulation is amended by striking out “paragraphs 1, 3, 5 and 7” and substituting “paragraphs 5 and 7”.

(5) The English version of subsection 28 (4) of the Regulation is amended by striking out “the reports were prepared used using” and substituting “the reports were prepared using”.

18. Sections 29 and 30 of the Regulation are revoked.

19. (1) Subsection 31 (1) of the Regulation is amended by striking out “beginning in 2011” at the end and substituting “beginning in 2013”.

(2) Paragraph 7 of subsection 31 (3) of the Regulation is revoked and the following substituted:

7. Adjustment to basic amortization contribution under section 7.1:

i The sum of all contributions, if any, made to all participating pension plans under section 7.1 during 2013 or 2014, as the case may be.

ii. The amount of the contributions made to the particular pension plan under section 7.1 during 2013 or 2014, as the case may be.

(3) Paragraph 10 of subsection 31 (3) of the Regulation is amended by striking out the portion before subparagraph i and substituting the following:

10. Special contributions re reduction of pulp and paper production capacity before April 15, 2014:

(4) Paragraph 12 of subsection 31 (3) of the Regulation is revoked and the following substituted:

12. Voluntary contributions: The amount of any voluntary contributions as described in section 14 made to all participating pension plans during the year and the amount of the voluntary contribution made to the particular pension plan.

12.1 Deferral of additional contribution under section 16:

i. The sum of all payments required to liquidate the amount of the additional contribution that must be made to all participating Ontario pension plans under subsection 16 (3).

ii. The payments required to liquidate the amount of the additional contribution that must be made to the particular pension plan under subsection 16 (3).

12.2 Deferral of contributions for corrective measures under section 17:

i. The sum of all payments required to liquidate the amount of the contribution that must be made to all Ontario pension plans under subsections 17 (3), (5) and (7) respectively.

ii. The payments required to liquidate the amount of the contribution that must be made to the particular pension plan under subsections 17 (3), (5) and (7) respectively.

20. Sections 33 and 34 of the Regulation are revoked.

21. (1) Subsection 35 (1) of the Regulation is amended by striking out “beginning in 2011” at the end and substituting “beginning in 2013”.

(2) Paragraph 7 of subsection 35 (4) of the Regulation is revoked and the following substituted:

7. Adjustment to basic amortization contribution under section 7.1: The sum of all contributions, if any, made to all participating Ontario pension plans under section 7.1 during 2013 or 2014, as the case may be.

(3) Paragraph 9 of subsection 35 (4) of the Regulation is amended by adding “before April 15, 2014” after “reduction of pulp and paper production capacity”.

(4) Paragraphs 10 and 11 of subsection 35 (4) of the Regulation are revoked and the following substituted:

10. Voluntary contributions: The aggregate amount of any voluntary contributions as described in section 14 made to all of the participating pension plans during the year, and the amount of the voluntary contribution made to each participating pension plan.

11. Deferral of additional contribution under section 16: The information required by paragraph 12.1 of subsection 31 (3) for every participating pension plan.

11.1 Deferral of contributions for corrective measures under section 17: The information required by paragraph 12.2 of subsection 31 (3) for every participating pension plan.

22. The Regulation is amended by adding the following section:

Extension of time

35.1 Reports referred to in subsection 6 (5) and sections 15, 17, 31 and 35 and actuarial cost certificates referred to in subsection 6 (5) are prescribed documents for the purposes of paragraph 1 of subsection 105 (2) of the Act (filing deadlines).

23. (1) Item 1 of Schedule 1 to the Regulation is amended by striking out “Abitibi-Consolidated Company of Canada” and substituting “Resolute Forest Products”.

(2) Item 2 of Schedule 1 to the Regulation is amended by striking out “Retirement Plan for Unionized Employees of Abitibi-Consolidated Company of Canada -- Pulp and Paper Divisions -- Thorold Sector” and substituting “Retirement Plan for Unionized Employees of Resolute Forest Products (Thorold)”.

(3) Item 3 of Schedule 1 to the Regulation is amended by striking out “Bowater Canadian Forest Products Inc.” and substituting “Resolute Forest Products”.

(4) Item 4 of Schedule 1 to the Regulation is amended by striking out “Bowater Canadian Forest Products Inc.” and substituting “Resolute Forest Products”.

(5) Item 5 of Schedule 1 to the Regulation is amended by striking out “Bowater Canadian Forest Products Inc.” and substituting “Resolute Forest Products”.

Commencement

24. This Regulation comes into force on the later of April 15, 2014 and the day it is filed.

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