Pension Benefits Act
Loi sur les régimes de retraite

ONTARIO REGULATION 311/15

CONVERSIONS AND TRANSFERS OF ASSETS UNDER SECTION 80.4 OF THE ACT AND CONVERSIONS UNDER SECTION 81.0.1 OF THE ACT

Consolidation Period: From July 1, 2018 to the e-Laws currency date.

Last amendment: 255/18.

Legislative History: 394/15, 286/17, 249/18, 255/18.

This Regulation is made in English only.

CONTENTS

General
1. / Application
2. / Interpretation
3. / Effective date of transfer of assets under s. 80.4 of the Act
4. / Effective date of conversion under s. 81.0.1 of the Act
5. / Notices to members, etc.
6. / Requirements re consent by members
7. / Criteria for Superintendent’s consent
8. / Application for Superintendent’s consent
9. / Notice of application
10. / Report re completion of transfer of assets under s. 80.4 of the Act
11. / Report re completion of conversion under section 81.0.1 of the Act
12. / Report to be filed
13. / Criterion re commuted value of benefits
14. / Expenses incurred by trade union
Special Rules re Conversion and Transfer of Assets under Section 80.4 of the Act
15. / Asset transfer amounts
16. / Deadline for transferring assets
17. / Cancellation of special payments
18. / Payment under s. 79.2 (8) and (9) of the Act
Schedule 0.1 / Pension plans prescribed for the purposes of subsection 80.4 (1) of the act
Schedule 1 / Standard notice to members about single employer pension plan
Schedule 2 / Standard notice to members about jointly sponsored pension plan
Schedule 3 / Standard statement and consent form for members
Schedule 4 / Standard notice to former members, retired members and certain others about single employer pension plan
Schedule 5 / Standard notice to former members, retired members and certain others about jointly sponsored pension plan
Schedule 6 / Standard statement and objection form for former members, retired members and certain others
Schedule 7 / Standard notice to trade unions
Schedule 8 / Standard statement and consent form for trade unions
Schedule 9 / Standard notice to the superintendent
Schedule 10 / Application for superintendent’s consent
Schedule 11 / Notice of application for superintendent’s consent

General

Application

1.(1)This Regulation applies with respect to every conversion and transfer of assets under section 80.4 of the Act and to every conversion under section 81.0.1 of the Act.

(2)The pension plans listed in Schedule 0.1 are prescribed for the purposes of subsection 80.4 (1) of the Act. O. Reg. 249/18, s. 1.

Interpretation

2.(1)Expressions used in this Regulation have the same meaning as in the General Regulation, unless the context requires otherwise.

(2)In this Regulation,

“General Regulation” means Regulation 909 of the Revised Regulations of Ontario, 1990 (General) made under the Act;

“Schedule” means Schedule to this Regulation;

“solvency ratio” means, in respect of a report under the General Regulation relating to a pension plan, the ratio of the solvency assets of the pension plan to the solvency liabilities of the pension plan.O. Reg. 311/15, s. 2 (2); O. Reg. 255/18, s. 1 (1).

(3)For the purposes of this Regulation, a single employer pension plan is receiving solvency funding relief if either of the following circumstances exist:

1.The administrator of the pension plan has elected to use one of the types of solvency relief set out in subsection 5.6 (3), 5.6.1 (3), 5.6.2 (3) or 5.6.3 (3) of the General Regulation and the pension plan is governed by the requirements of section 5.6, 5.6.1, 5.6.2 or 5.6.3 of the General Regulation on the date as of which the notices, the statement and consent forms and the statement and objection forms required under section 5 of this Regulation are prepared.

2.The pension plan is listed in Schedule 1 to Ontario Regulation 178/11 (Solvency Funding Relief for Certain Public Sector Pension Plans) made under the Act and the pension plan is governedby the requirements of that Regulation on the date as of which the notices, the statement and consent forms and the statement and objection forms required under section 5 are prepared. O. Reg. 311/15, s. 2 (3); O. Reg. 255/18, s. 1 (2).

Effective date of transfer of assets under s. 80.4 of the Act

3.The effective date of a transfer of assets under section 80.4 of the Act cannot be earlier than the last day on which the consent or objection to the proposed conversion and transfer of assetsunder that section may be submitted to the administrator of the single employer pension plan by the members, former members, retired members, other persons entitled to benefits under the single employer pension plan or by any trade union that represents the members.

Effective date of conversion under s. 81.0.1 of the Act

4.The effective date of a conversion under section 81.0.1 of the Act must be within 12 months after the date on which the Superintendent consents to the proposed conversion under that section.

Notices to members, etc.

5.(1)The administrator of the single employer pension plan must give the following to each member of the single employerpension plan:

1.The standard notice to members about the single employer pension plan, containing the information required by Schedule 1.

2.The standard notice to members about the jointly sponsored pension plan, containing the information required by Schedule 2.

(2)The administrator of the single employer pension plan must give each member of the pension plan who is not represented by a trade union the standard statement and consent form for members, containing the information required by Schedule 3.

(3)The administrator of the single employer pension plan must give the following to each former member, retired member and every other person entitled to benefits under the single employer pension plan:

1.The standard notice to former members, retired members and other persons entitled to benefits under the pension plan about the single employer pension plan, containing the information required by Schedule 4.

2.The standard notice to former members, retired members and other persons entitled to benefits under the pension plan about the jointly sponsored pension plan, containing the information required by Schedule 5.

3.The standard statement and objection form for former members, retired members and other persons entitled to benefits under the pension plan, containing the information required by Schedule 6.

(4)The administrator of the single employer pension plan must give the following to each trade union that represents members of the pension plan:

1.The standard notice to trade unions, containing the information required by Schedule 7.

2.The standard statement and consent form for trade unions, containing the information required by Schedule 8.

(5)The administrator of the single employer pension plan must give the Superintendent the standard notice to the Superintendent of the proposed conversion and transfer of assets under section 80.4 of the Act or of the proposed conversion under section 81.0.1 of the Act, containing the information required by Schedule 9.

(6)The notices, the statement and consent forms and the statement and objection forms required under subsections (1) to (5) must all be given at the same time.

(7)Unless otherwise provided for in a Schedule, the information in the notices, the statement and consent forms and the statement and objection forms must be prepared as of the same date and that date cannot be earlier than six months before the day on which those notices and statements are given.

(8)If a member, former member, retired member, a person entitled to benefits under the single employer pension plan or a trade union that represents members of the pension plan who receives a statement and consent form or a statement and objection form wishes to submit their consent form or objection form to the administrator, he, she or it must do so within 90 days after having received it from the administrator.

(9), (10)Revoked: O. Reg. 311/15 s. 5 (10).

Requirements re consent by members

6.(1)The members, former members, retired members and other persons entitled to benefits under the single employer pension plan are deemed to have consented to a proposed conversion and transfer of assets under section 80.4 of the Act or to a proposed conversion under section 81.0.1 of the Act if both of the following circumstances exist:

1.At least two-thirds of the members of the single employer pension plan consent to the conversion and transfer of assets or to the conversion.

2.Not more than one-third of the former members, retired members and other persons entitled to benefits under the single employer pension plan, as a group, object to the conversion and transfer of assets or to the conversion.

(2)A trade union that represents members of a single employer pension plan may consent on behalf of those members to a proposed conversion and transfer of assets under section 80.4 of the Act or to a proposed conversion under section 81.0.1 of the Act.

Criteria for Superintendent’s consent

7.(1)The following criteria are prescribed for the purposes of subsection 80.4 (13) of the Act:

1.The application required under subsection 80.4 (11) of the Act for the Superintendent’s consent included the information required by Schedule 10.

2.If the effective date of the transfer of assets under section 80.4 of the Act is on or after the date on which the application for the Superintendent’s consent is filed, the employer of the single employer pension plan and the employers or any persons or entities that make contributions on behalf of the employers or represent the employers and the members of the jointly sponsored pension plan or any representatives of the membershave given the Superintendent an undertaking that, as of the effective date of the transfer of assets,

i.the commuted value of the pension benefits provided under the jointly sponsored pension plan for the members of the single employer pension plan will not be less than the commuted value of their pension benefits under the single employer pension plan, and

ii.the pension benefits provided under the jointly sponsored pension plan for the former members, retired members and other persons entitled to benefits under the single employer pension plan will be, at a minimum, the same as the pension benefits provided for them under the single employer pension plan.

(2)The following criteria are prescribed for the purposes of subsection 81.0.1 (14) of the Act:

1.The application required under subsection 81.0.1 (12) of the Act for the Superintendent’s consent included the information required by Schedule 10.

2.The employer of the single employer pension plan has given the Superintendent an undertaking that, as of the effective date of the conversion,

i.the pension plan will satisfy the criteria to be a jointly sponsored pension plan as set out in subsection 1 (2) of the Act,

ii.the commuted value of the pension benefits provided under the jointly sponsored pension plan for members of the single employer pension plan will not be less than the commuted value of their pension benefits under the single employer pension plan, and

iii.the pension benefits provided under the jointly sponsored pension plan for the former members, retired members and other persons entitled to benefits under the single employer pension plan will be, at a minimum, the same as the pension benefits provided for them under the single employer pension plan.

Application for Superintendent’s consent

8.(1)An application required under subsection 80.4 (11) of the Act for the Superintendent’s consent to a transfer of assets under section 80.4 of the Act must be filed within nine months after the day on which the notices referred to in subsection 5 (1), paragraphs 1 and 2 of subsection 5 (3) and paragraph 1 of subsection 5 (4) are given by the administrator to the members, former members, retired members and other persons entitled to benefits under the single employer pension plan and to any trade unions that represent members of the pension plan.

(2)An application required under subsection 81.0.1 (12) of the Act for the Superintendent’s consent to a conversion under section 81.0.1 of the Act must be filed within nine months after the day the notices referred to in subsection 5 (1), paragraphs 1 and 2 of subsection 5 (3) and paragraph 1 of subsection 5 (4) are given by the administrator to the members, former members, retired members and other persons entitled to benefits under the single employer pension plan and to any trade unions that represent members of the pension plan.

(3)An application under subsection 80.4 (11) or 81.0.1 (12) of the Act is a prescribed document for the purposes of paragraph 1 of subsection 105 (2) of the Act (extension of time).

Notice of application

9.(1)Promptly after filing the application required under subsection 80.4 (11) or 81.0.1 (12) of the Act, the administrator of the single employer pension plan shall give a notice oftheapplication to all members, former members, retired members and other persons entitled to benefits under the pension planand to any trade union that represents members of the pension plan, and the notice must contain the information required by Schedule 11.

(2)Promptly after giving the notice required under subsection (1), the administrator of the single employer pension plan shall file a report containing the following information and documents:

1.A certified copy of each type of notice sent to members, former members, retired members and other persons entitled to benefits under the pension plan and a certified copy of each notice sent to any trade union that represents members of the pension plan.

2.A statement certifying the date the notices were sent.

Report re completion of transfer of assets under s. 80.4 of the Act

10.Within 90 days after the assets of a single employer pension plan are transferred to a jointly sponsored pension plan under section 80.4 of the Act, the administrator of the jointly sponsored pension plan shall filea report containing the following information:

1.A statement certifying that the conversion and transfer of assets has been made in accordance with the Act and the regulations.

2.An actuarial cost certificate for the jointly sponsored pension plan as of the date the assets were transferred that satisfies the requirements of section 7.1 of the General Regulation and that indicates the amount of assets transferred.

3.If an actuarial cost certificate was filed for the single employer pension plan as part of the application under subsection 80.4 (11) of the Act, a statement from the administrator of the single employer pension plan certifying the amount of assets transferred and the amount, if any, of assets remaining in the single employer pension plan.

4.If an actuarial cost certificate was not filed for the single employer pension plan as part of the application under subsection 80.4 (11) of the Act, an actuarial cost certificate, from the administrator of the single employer pension plan, for the single employer pension plan as of the effective date of the transfer of assets that satisfies the requirements of section 7.1 of the General Regulation and that indicates the amount of assets transferred and the amount, if any, remaining in the single employer pension plan.

5.A statement from the administrator of the single employer pension plan certifying that all scheduled payments up to the effective date of the transfer of assets have been paid to the single employer pension plan.

6.A statement certifying that, as of the effective date of the transfer of assets,

i.the commuted value of the pension benefits provided under the jointly sponsored pension plan for the members of the single employer pension plan is not less than the commuted value of their pension benefits under the single employer pension plan, and

ii.the pension benefits provided under the jointly sponsored pension plan for the former members, retired members and other persons entitled to benefits under the single employer pension plan are, at a minimum, the same as the pension benefits provided for them under the single employer pension plan.

Report re completion of conversion under section 81.0.1 of the Act

11.Within 90 days after the effective date of a conversion under section 81.0.1 of the Act, the administrator of the jointly sponsored pension plan shall file a report containing the following information:

1.A statement certifying that the conversion has been made in accordance with the Act and the regulations.

2.A statement certifying that, as of the effective date of the conversion,

i.the commuted value of the pension benefits provided under the jointly sponsored pension plan for the members of the single employer pension plan is not less than the commuted value of their pension benefits under the single employer pension plan, and

ii.the pension benefits provided under the jointly sponsored pension plan for the former members, retired members and other persons entitled to benefits under the single employer pension plan are, at a minimum, the same as the pension benefits provided for them under the single employer pension plan.

Report to be filed

12.(1)Within nine months after the effective date of a conversion under section 81.0.1 of the Act, the administrator of the jointly sponsored pension plan shall file a report that is prepared in accordance with the requirements of section 14 of the General Regulation with a valuation date as of the effective date of the conversion.

(2)For the purposes of the report, if any consolidated prior solvency deficiency is determined in the report, the report shall establish a new ten-year period during which the consolidated prior solvency deficiency is to be liquidated.