Advanced Search

O. Reg. 466/11: GENERAL


Published: 2011-12-16

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.
Français

ontario regulation 466/11

made under the

pension benefits act

Made: December 14, 2011
Filed: December 16, 2011
Published on e-Laws: December 19, 2011
Printed in The Ontario Gazette: December 31, 2011


Amending Reg. 909 of R.R.O. 1990

(General)

1. The definition of “Ontario assets” in subsection 1 (2) of Regulation 909 of the Revised Regulations of Ontario, 1990 is amended by striking out “under clause 30 (2) (e)” at the end and substituting “under clause 30 (2) (e) or (e.1)”.

2. Subsection 30 (2) of the Regulation is amended by adding the following clause:

(e.1) despite clause (e), if the pension plan is a designated multi-jurisdictional pension plan and if an agreement referred to in subsection 5.1 (1) of the Act provides for the allocation of the assets of the pension plan in accordance with paragraph 3 of subsection 100 (4) of the Act, allocating the assets in accordance with that agreement;

3. Section 34 of the Regulation is revoked and the following substituted:

34. (1) This section applies if the Guarantee Fund applies to a pension plan with a wind up date of December 8, 2010 or later.

(2) If, when the order is made declaring that the Guarantee Fund applies to the pension plan, the plan’s Ontario assets are less than its Ontario wind up liability,

(a) the administrator of the plan shall provide benefits under the plan in accordance with subsection (3); and

(b) on application by the administrator, the Superintendent shall allocate from the Guarantee Fund and pay to the plan sufficient money to provide, together with the Ontario assets, for those benefits.

(3) The administrator shall pay the greater of the following amounts to each person who is entitled on wind up to payment of benefits guaranteed by the Guarantee Fund or to payment of other amounts guaranteed by the Guarantee Fund:

1. The value of the person’s contributions to the plan plus interest.

2. The amount calculated using the formula,

A + B

in which,

“A” is 100 per cent of the benefits and other amounts for the person that are included in the calculation of the plan’s Guaranteed Benefit liability, and

“B” is the amount determined in accordance with subsection (4) that is related to all other benefits for the person that are included in the calculation of the plan’s Ontario wind up liability.

(4) The amount of the variable “B” for a person is determined as follows:

1. If the plan’s Ontario assets are less than or equal to its modified Ontario wind up liability, the amount of the variable “B” is calculated using the formula,

C × D/E

in which,

“C” is the amount of the benefits in respect of the person that are included in the calculation of the plan’s modified Ontario wind up liability but are not included in the calculation of the plan’s Guaranteed Benefit liability,

“D” is the plan’s Ontario assets, and

“E” is the plan’s modified Ontario wind up liability.

2. If the plan’s Ontario assets are greater than its modified Ontario wind up liability but are less than or equal to the sum of its modified Ontario wind up liability plus its liability, if any, for recent benefit improvements, the amount of the variable “B” is calculated using the formula,

C + F

in which,

“C” has the same meaning as in paragraph 1, and

“F” is the amount calculated using the formula,

G × W/X

in which,

“G” is the amount of the benefits in respect of the person included in the calculation of the plan’s liability, if any, for recent benefit improvements,

“W” is the amount by which the plan’s Ontario assets exceed its modified Ontario wind up liability, and

“X” is the amount of the plan’s liability, if any, for recent benefit improvements.

3. If the plan’s Ontario assets are greater than its modified Ontario wind up liability plus its liability, if any, for recent benefit improvements, the amount of the variable “B” is calculated using the formula,

C + G + H

in which,

“C” has the same meaning as in paragraph 1,

“G” has the same meaning as in paragraph 2, and

“H” is the amount calculated using the formula,

J × Y/Z

in which,

“J” is the amount, if any, of the benefits described in subsection 47 (2) for the person,

“Y” is the amount by which the plan’s Ontario assets exceed the sum of its modified Ontario wind up liability and its liability, if any, for recent benefit improvements, and

“Z” is the amount of the plan’s liability for the benefits described in subsection 47 (2).

(5) The Guaranteed Benefit liability of a pension plan is the total liability of the plan for benefits guaranteed by the Guarantee Fund and for other amounts guaranteed by the Guarantee Fund, excluding the amount by which the contributions made by any member, plus interest, for those guaranteed benefits and those other guaranteed amounts exceeds the liability for the member’s guaranteed benefits and other guaranteed amounts.

(6) The modified Ontario wind up liability of the pension plan is the amount calculated using the formula,

K – (L + M)

in which,

  “K” is the plan’s Ontario wind up liability,

  “L” is the amount of the liability, if any, for recent benefit improvements, and

“M” is the amount of the liability, if any, for benefits described in subsection 47 (2).

(7) The liability, if any, for recent benefit improvements in respect of a pension plan is the liability for any increase to a pension or pension benefit or increase to the value of a pension or pension benefit that became effective within five years before the date of the wind up.  However, it does not include any liability for benefits described in subsection 47 (2).

(8) In this section,

“Guaranteed Benefit liability” means, for a pension plan, the liability described in subsection (5); (“passif rattaché aux prestations garanties”)

“liability, if any, for recent benefit improvements” means, for a pension plan, the liability described in subsection (7); (“passif éventuel rattaché aux améliorations récentes des prestations”)

“modified Ontario wind up liability” means, for a pension plan, the liability described in subsection (6). (“passif ontarien de liquidation modifié”)

34.1 (1) This section applies if the Guarantee Fund applies to a pension plan with a wind up date before December 8, 2010.

(2) If, when the order is made declaring that the Guarantee Fund applies to the pension plan, the plan’s Ontario assets are less than its Ontario wind up liability,

(a) the administrator of the plan shall provide benefits under the plan in accordance with section 34 of this Regulation as it read on December 31, 2011; and

(b) on application by the administrator, the Superintendent shall allocate from the Guarantee Fund and pay to the plan sufficient money to provide, together with the Ontario assets, for those benefits.

4. (1) Subsections 37 (4), (5) and (6) of the Regulation are revoked and the following substituted:

(4) If the assessment date falls on or after January 1, 2012, the amount of the annual assessment is the greater of $250 and the amount calculated using the formula,

A + B

in which,

  “A” is the lesser of C and D, where,

“C” is the sum of $5 for each person who was an Ontario plan beneficiary at the end of the plan fiscal year immediately preceding the assessment date plus the following amounts:

1. 0.5 per cent of any portion of the PBGF assessment base that is less than 10 per cent of the PBGF liabilities.

2. 1 per cent of any portion of the PBGF assessment base that is 10 per cent or more but less than 20 per cent of the PBGF liabilities.

3. 1.5 per cent of any portion of the PBGF assessment base that is 20 per cent or more of the PBGF liabilities, and

“D” is $300 multiplied by the number of persons who were Ontario plan beneficiaries at the end of the plan fiscal year immediately preceding the assessment date, and

  “B” is zero or, if an election under subsection 5 (18) is in effect on the assessment date, 2 per cent of the amount by which E exceeds F, where,

“E” is the amount of the additional liability that would result if, on the valuation date of the last report filed or submitted on or before the assessment date under any of section 3, 4 or 14 for the plan, all plant closure benefits and permanent layoff benefits under the plan were payable for those members in Ontario who, on that date, met the age and service requirements for those benefits, and

“F” is the amount, if any, by which the amount determined under clause (b) in the definition of “PBGF assessment base” in subsection 1 (2) exceeds the PBGF liabilities, both determined as of the valuation date referred to in the definition of “E”.

(2) Subsection 37 (13) of the Regulation is revoked and the following substituted:

(13) Despite subsection (4), the amount of the assessment is zero for a pension plan that was established fewer than five years before the assessment date, other than a pension plan that is a successor plan as described in subsection 80 (2) or section 81 of the Act.

(3) Section 37 of the Regulation is amended by adding the following subsection:

(14.1) However, if the assessment date falls on or after January 1, 2012 and before September 30, 2012, an employer is not required to pay the penalty specified in subsection (14) if both of the following conditions are satisfied:

1. The amount of the assessment, as it would have been calculated under this section as it reads on December 31, 2011, is paid on or before the assessment date.

2. The balance of the assessment, as it would be calculated under this section as it reads on January 1, 2012, is paid on or before September 30, 2012.

(4) Subsection 37 (16) of the Regulation is revoked.

Commencement

5. This Regulation comes into force on January 1, 2012.

 

Français