O. Reg. 307/13: SOLVENCY FUNDING RELIEF FOR CERTAIN PUBLIC SECTOR PENSION PLANS

Link to law: http://www.ontario.ca/laws/regulation/r13307
Published: 2013-11-29

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ONTARIO REGULATION 307/13

made under the

PENSION BENEFITS ACT

Made: November 27, 2013
Filed: November 29, 2013
Published on e-Laws: November 29, 2013
Printed in The Ontario Gazette: December 14, 2013


Amending O. Reg. 178/11

(SOLVENCY FUNDING RELIEF FOR CERTAIN PUBLIC SECTOR PENSION PLANS)

1. (1) Paragraph 2 of subsection 9 (2) of Ontario Regulation 178/11 is amended by adding at the end “However, if the stage two valuation date of the pension plan is December 31, 2014 or earlier, the amount of the special payments may be determined in accordance with the modified version of this rule set out in subsection (4).”

(2) Subparagraph 3 i of subsection 9 (2) of the Regulation is amended by adding at the end “or paragraph 2 of subsection (4), as applicable”.

(3) Subparagraph 3 ii of subsection 9 (2) of the Regulation is amended by adding at the end “or paragraph 2 of subsection (4), as applicable”.

(4) Section 9 of the Regulation is amended by adding the following subsections:

(4) If a public sector pension plan has a stage two valuation date of December 31, 2014 or earlier, and if the administrator of the pension plan makes an election to do so, the special payments to liquidate any solvency deficiency determined in the stage two valuation report as of the stage two valuation date may be made in accordance with the following rules:

1. Notice of the election must be filed with the Superintendent no later than the day on which the stage two valuation report is filed.

2. During the first three years of a period of 10 years, beginning on a day that is not later than 12 months after the stage two valuation date, special payments to liquidate the solvency deficiency must be made every month.

3. The minimum amount of the special payment to be made every month during that three-year period is the greater of zero and the amount calculated using the formula,

C − D

in which,

“C” is the amount of interest payable over the period of one month on the amount by which the solvency liabilities exceed the solvency assets, calculated using the same rates used in the stage two valuation report to determine the solvency liabilities, and

“D” is the monthly amount of the special payments, if any, required under clause 5 (1) (b) of the General Regulation for the year to liquidate any going concern unfunded liability.

4. During the remaining seven years of the 10-year period, the special payments to liquidate the solvency deficiency must be made in equal monthly instalments.

(5) If the administrator of a public sector pension plan makes the election described in subsection (4), subsections 14 (2) and (3) of the General Regulation do not apply to the pension plan for three years after the stage two valuation date.

2. (1) Subsection 12 (1) of the Regulation is amended by adding “or paragraph 2 of subsection 9 (4), as applicable” after “paragraph 2 of subsection 9 (2)”.

(2) Subparagraph 1 i of subsection 12 (2) of the Regulation is amended by adding “or paragraph 2 of subsection 9 (4), as applicable” after “paragraph 2 of subsection 9 (2)”.

3. Section 14 of the Regulation is amended by striking out “paragraph 2 of subsection 9 (2) of this Regulation” and substituting “paragraph 2 of subsection 9 (2) or paragraph 2 of subsection 9 (4) of this Regulation, as applicable”.

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

SCHEDULE 2
PUBLIC SECTOR PENSION PLANS RECEIVING STAGE TWO SOLVENCY FUNDING RELIEF

Item

Column 1: Name of the pension plan

Column 2: Registration number

1.

Pension Plan for Professional Staff of Lakehead University

0246058

2.

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

0211441

3.

Wilfrid Laurier University Pension Plan

0314492


Commencement

5. This Regulation comes into force on the day it is filed.