Français

Pension Benefits Act

R.R.O. 1990, REGULATION 909

GENERAL

Consolidation Period: From January 1, 2008 to the e-Laws currency date.

Last amendment: O. Reg. 489/07.

This is the English version of a bilingual regulation.

SKIP TABLE OF CONTENTS

CONTENTS

PART I
INTERPRETATION

1.  (1)  In this Regulation,

“accountant” means a public accountant licensed under the Public Accountancy Act; (“comptable”)

“designated plan” means a pension plan that is a designated plan for the purposes of the Income Tax Act (Canada); (“régime désigné”)

“eligible contribution” means a payment made by an employer to a pension fund or an insurance company, as applicable, in respect of a pension plan, that qualifies as an eligible contribution for the purposes of the Income Tax Act (Canada); (“cotisation admissible”)

“government” means Her Majesty in right of Ontario, an agent of Her Majesty, a municipality as defined in the Municipal Affairs Act and a regional municipality as defined in the Ontario Unconditional Grants Act; (“gouvernement”)

“life income fund” means an RRIF that meets the requirements of either Schedule 1 or Schedule 1.1; (“fonds de revenu viager”)

“life income fund that is governed by this Schedule” means an RRIF that meets the requirements of Schedule 1 or Schedule 1.1, as the case may be; (“fonds de revenu viager régi par la présente annexe”)

“locked-in retirement account” means an RRSP that meets the requirements set out in subsection 21 (2); (“compte de retraite avec immobilisation des fonds”)

“locked-in retirement income fund” means an RRIF that meets the requirements set out in Schedule 2; (“fonds de revenu de retraite immobilisé”)

“maximum funding valuation” means a maximum funding valuation for the purposes of the Income Tax Act (Canada); (“évaluation du financement maximal”)

“normal cost” means the cost of pension benefits and ancillary benefits allocated to a fiscal year of a pension plan, determined on the basis of a going concern valuation; (“coût normal”)

“plan” means a pension plan; (“régime”)

“RRIF” means a registered retirement income fund established in accordance with the Income Tax Act (Canada); (“FERR”)

“RRSP” means a registered retirement savings plan established in accordance with the Income Tax Act (Canada); (“REÉR”)

“special payment” means a payment determined in accordance with section 5, 5.3, 31, 32 or 35. (“paiement spécial”) R.R.O. 1990, Reg. 909, s. 1 (1); O. Reg. 712/92, s. 1 (1, 2); O. Reg. 558/94, s. 1; O. Reg. 73/95, s. 1; O. Reg. 144/00, s. 1 (1); O. Reg. 116/06, s. 1 (1); O. Reg. 416/07, s. 1.

(2)  In this Part,

“actuarial gain” means the sum, if positive, of,

(a) the gain to the pension plan during the period since the valuation date of the immediately preceding going concern valuation resulting from the difference between actual experience and the experience expected by the actuarial assumptions on which that valuation was based,

(b) the amount by which the going concern liabilities decrease as a result of an amendment to the plan, and

(c) the amount by which the going concern liabilities decrease or the going concern assets increase as a result of a change in actuarial methods or assumptions upon which the current going concern valuation is based,

as of the valuation date for a going concern valuation provided that clause (a), (b) or (c) or any combination thereof shall be counted as a negative in the calculation of the sum where,

(d) the experience of the plan results in a loss rather than a gain,

(e) an amendment increases the going concern liabilities, or

(f) a change in actuarial methods or assumptions results in an increase in going concern liabilities or a decrease in going concern assets, as the case may be; (“gain actuariel”)

“actuarial loss” means the sum, if negative, of,

(a) the gain to the pension plan during the period since the valuation date of the immediately preceding going concern valuation resulting from the difference between actual experience and the experience expected by the actuarial assumptions on which that valuation was based,

(b) the amount by which the going concern liabilities decrease as a result of an amendment to the plan, and

(c) the amount by which the going concern liabilities decrease or the going concern assets increase as a result of a change in actuarial methods or assumptions upon which the current going concern valuation is based,

as of the valuation date for a going concern valuation provided that any of clause (a), (b) or (c) or any combination thereof shall be counted as a negative in the calculation of the sum where,

(d) the experience of the plan results in a loss rather than a gain,

(e) an amendment increases the going concern liabilities, or

(f) a change in actuarial methods or assumptions results in an increase in going concern liabilities or a decrease in going concern assets, as the case may be; (“perte actuarielle”)

“actuary” means a Fellow of the Canadian Institute of Actuaries; (“actuaire”)

“ancillary benefits” means the benefits referred to in subsection 40 (1) of the Act; (“prestation accessoire”)

“basic Ontario liabilities”, in relation to a plan, means the portion of the liabilities of the plan allocated under clause 30 (2) (d) to employment in Ontario; (“passif de base ontarien”)

“consent benefit” means an ancillary benefit, other than a plant closure benefit or a permanent layoff benefit, the eligibility requirements for which include the consent of an employer or, in the case of a jointly sponsored pension plan, the consent of the employer or the administrator; (“prestation assujettie à un consentement”)

“early retirement window benefit value” means the amount by which,

(a) the portion of the solvency liabilities of a plan that relates to all the pension and ancillary benefits to which a member is entitled if the member elects early retirement under a temporary program offered for a maximum period of twelve months,

exceeds,

(b) the portion of the solvency liabilities of a plan that relates to all the pension and ancillary benefits to which the member would be entitled in the absence of the temporary program; (“valeur des prestations pendant la période d’admissibilité à la retraite anticipée”)

“escalated adjustment” means an adjustment that is made to a pension or a deferred pension of a former member of a pension plan where,

(a) the adjustment is not capable of being determined with certainty at the time the plan or a relevant amendment to the plan is submitted for registration because the adjustment is related to the investment earnings of the pension fund or to future changes in a general wage or price index, or

(b) the adjustment is an increase in the pension or deferred pension at a fixed annual percentage rate specified in the plan; (“rajustement indexé”)

“excluded permanent layoff benefit” means a permanent layoff benefit provided under a pension plan in respect of which an election under subsection 5 (18) is in effect; (“prestation de mise à pied permanente exclue”)

“excluded plant closure benefit” means a plant closure benefit provided under a pension plan in respect of which an election under subsection 5 (18) is in effect; (“prestation de fermeture d’entreprise exclue”)

“funded consent benefit” means a consent benefit for which a member has met all eligibility requirements except the consent of an employer or, in the case of a jointly sponsored pension plan, the consent of the employer or the administrator; (“prestation financée assujettie à un consentement”)

“funded special allowance” means a special allowance for which a member has met all age and service eligibility requirements; (“allocation spéciale financée”)

“going concern assets” means, in respect of a report under this Regulation relating to a pension plan, the sum of,

(a) the value of the assets of the pension plan, including accrued and receivable income, determined on the basis of a going concern valuation, and

(b) the present value of any special payments in respect of a going concern unfunded liability disclosed in previously filed reports; (“actif à long terme”)

“going concern liabilities” means the present value of the accrued benefits of a pension plan determined on the basis of a going concern valuation; (“passif à long terme”)

“going concern unfunded liability” means the amount, if any, by which the sum of the going concern liabilities and the prior year credit balance exceeds the going concern assets; (“passif à long terme non capitalisé”)

“going concern valuation” means a valuation of the assets and liabilities of a pension plan using methods and actuarial assumptions that are consistent with accepted actuarial practice for the valuation of a continuing pension plan; (“évaluation à long terme”)

“initial solvency balance” means,

(a) for a plan in respect of which an employer does not elect not to redetermine under subsection 5(8), the difference, positive or negative, obtained by subtracting,

(i) the aggregate special payments, with respect to any solvency deficiency that arose before the Regulation date, that the employer would have been required to pay to the pension fund before the initial valuation date if the solvency deficiency and related special payments were calculated in accordance with clause 5 (1) (c), but where the employer has elected under subsection 5 (18) to exclude liability for plant closure benefits or for permanent layoff benefits, this calculation shall exclude any special payments with respect to liability for plant closure benefits or permanent layoff benefits,

from,

(ii) the aggregate special payments, with respect to any solvency deficiency that arose before the Regulation date, paid by an employer to the pension fund before the initial valuation date,

(b) for a plan in respect of which an employer elects not to redetermine under subsection 5 (8), the amount by which,

(i) the aggregate special payments, with respect to any solvency deficiency that arose before the Regulation date, paid by an employer to the pension fund before the beginning of the period referred to in clause 5 (11) (b),

exceeds,

(ii) the aggregate special payments, with respect to any solvency deficiency that arose before the Regulation date, that the employer would have been required to pay to the pension fund before the beginning of the period referred to in clause 5(11) (b), if the special payments were calculated in accordance with clause 5 (1) (d); (“solde de solvabilité initial”)

“initial valuation date” means the valuation date of the first report filed or submitted under section 3, 4, 13 or 14 with a valuation date after the Regulation date; (“date d’évaluation initiale”)

“Ontario assets” means the portion of the market value of the plan assets allocated for employment in Ontario under clause 30 (2) (e); (“actif ontarien”)

“Ontario plan beneficiary” means,

(a) a member employed in Ontario,

(b) a former member who was employed in Ontario immediately before he or she ceased to be a member, other than a former member for whom all pension and ancillary benefits are secured under a guaranteed annuity contract or a contract issued under the Government Annuities Act (Canada), and

(c) the surviving spouse of, or a beneficiary of, a former member who was an Ontario plan beneficiary under clause (b), if the surviving spouse or the beneficiary is receiving a pension from the plan as a result of the death of the former member; (“bénéficiaire ontarien du régime”)

“Ontario wind up liability” of a plan means the sum of the liabilities of the plan on wind up in respect of each member or former member of the plan with benefits in respect of employment in Ontario, calculated in accordance with subsection 29 (10); (“passif ontarien de liquidation”)

“past service unfunded actuarial liability” means the amount of going concern unfunded actuarial liability that results from the provision of benefits with respect to employment prior to the effective date of the pension plan or from an amendment to a plan that provides benefits for employment prior to the date of the amendment where the employment had not previously been recognized for purposes of the provision of pension benefits; (“passif actuariel pour services antérieurs non capitalisé”)

“PBGF assessment base” means, as of a given valuation date, the amount by which,

(a) the PBGF liabilities,

exceed,

(b) the solvency assets multiplied by the PBGF liabilities and divided by the solvency liabilities; (“base de cotisation au Fonds de garantie”)

“PBGF liabilities” means the portion of the solvency liabilities of a plan that relates to the Ontario plan beneficiaries, determined in accordance with section 37; (“passif du Fonds de garantie”)

“pensionable earnings” means the earnings on which contributions are based by virtue of the documents that create and support the pension plan; (“gains ouvrant droit à pension”)

“permanent layoff benefit” means a pension benefit or ancillary benefit for which the eligibility requirements include permanent layoff, whether or not the benefit requires the consent of the employer or, in the case of a jointly sponsored pension plan, the consent of the employer or the administrator; (“prestation de mise à pied permanente”)

“plant closure benefit” means a pension benefit or ancillary benefit payable only if all or a significant portion of the business carried on by the employer at a specific location is discontinued, whether or not the pension plan is wound up in whole or in part; (“prestation de fermeture d’entreprise”)

“potential early retirement window benefit value” means the early retirement window benefit value for a member who is eligible to elect, but has not yet elected, to receive the benefit; (“valeur potentielle des prestations pendant la période d’admissibilité à la retraite anticipée”)

“prior year credit balance” means the amount determined in accordance with subsections 5 (13) to (16) or subsection 5.1 (5); (“solde créditeur de l’exercice antérieur”)

“prospective benefit increase” means an increase to a pension benefit or ancillary benefit set out in the pension plan or agreed to by the parties to a collective agreement, but not yet in effect; (“augmentation future des prestations”)

“qualifying annuity contract” means an annuity contract for the purpose of providing benefits under a plan, with the following characteristics:

1. The contract does not contain a provision allowing for the redistribution of benefits on a wind up or partial wind up of the pension plan.

2. The contract was entered into before the 1st day of January, 1988.

3. The contract was issued by an insurance company or under the Government Annuities Act (Canada).

4. The benefits provided under the contract consist only of pensions and pension benefits purchased before the 1st day of January, 1993; (“contrat de rente admissible”)

“qualifying plan” means qualifying plan under section 5.1; (“régime admissible”)

“Regulation date” means November 26, 1992; (“date du Règlement”)

“remaining liabilities” means the value of benefits determined as required under clause 30 (2) (b); (“passif restant”)

“significant shareholder” means an individual who alone or in combination with a parent, spouse or child, owns or has a beneficial interest, directly or indirectly, in shares that represent 10 per cent or more of the voting rights attached to the shares of the employer who contributes to the pension plan; (“actionnaire important”)

“solvency asset adjustment” means the amount calculated under section 1.2; (“rajustement de l’actif de solvabilité”)

“solvency assets” means the market value of investments held by a plan plus any cash balances of the plan and accrued or receivable income items of the plan, excluding the value of any qualifying annuity contract of the plan; (“actif de solvabilité”)

“solvency deficiency”, in relation to a report, means the amount by which the sum of the solvency liabilities, the solvency liability adjustment and the prior year credit balance exceeds the sum of the solvency assets and the solvency asset adjustment, all determined as of the valuation date of the report; (“déficit de solvabilité”)

“solvency liabilities”, in relation to a report, means the liabilities of a plan determined as if the plan had been wound up on the valuation date of the report, including liabilities for plant closure benefits or permanent layoff benefits that would be immediately payable if the employer’s business were discontinued on the valuation date of the report, but excluding liabilities set out under clause 14 (8) (c) in the report for,

(a) any escalated adjustment,

(b) excluded plant closure benefits,

(c) excluded permanent layoff benefits,

(d) special allowances other than funded special allowances,

(e) consent benefits other than funded consent benefits,

(f) prospective benefit increases,

(g) potential early retirement window benefit values, and

(h) pension benefits and ancillary benefits payable under a qualifying annuity contract; (“passif de solvabilité”)

“solvency liability adjustment” means the amount specified by section 1.3; (“rajustement du passif de solvabilité”)

“special allowance” means a bridging benefit that is adjusted according to the income of the former member resulting from employment of the former member subsequent to termination; (“allocation spéciale”)

“transfer deficiency” means the amount by which the commuted value of a benefit determined in accordance with subsection 19 (1) exceeds the transfer value of that benefit determined in accordance with subsection 19 (2); (“déficit de transfert”)

“transfer ratio”, in relation to a report, means the ratio of,

(a) the amount by which the solvency assets exceed the lesser of,

(i) the prior year credit balance, and

(ii) the sum of,

(A) the amount by which the sum of estimates of normal cost given under clauses 14 (7) (a) and (b) in the report exceeds the sum of the estimates given under clause 14 (7) (c) in the report for the periods in respect of which the estimates under clauses 14 (7) (a) and (b) are given, and

(B) the sum of the special payments required to be made under this Regulation during the periods in respect of which the estimates under clauses 14(7) (a) and (b) are given,

to,

(b) the sum of,

(i) the solvency liabilities, and

(ii) the liabilities for benefits, other than pension benefits and ancillary benefits payable under qualifying annuity contracts, that were excluded in calculating the solvency liabilities; (“ratio de transfert”)

“valuation date” means the date as of which the assets and liabilities are valued for the purposes of the going concern and solvency valuations in a report under section 3, 4, 5.3, 13 or 14; (“date d’évaluation”)

“wind up funded ratio” means the ratio of the Ontario assets to the Ontario wind up liability. (“ratio de financement à la liquidation”) R.R.O. 1990, Reg. 909, s. 1 (2); O. Reg. 712/92, s. 1 (3-22); O. Reg. 409/94, s. 1; O. Reg. 115/00, s. 1; O. Reg. 144/00, s. 1 (2, 3); O. Reg. 324/05, s. 1; O. Reg. 116/06, s. 1; O. Reg. 570/06, s. 1; O. Reg. 413/07, s. 1.

(3)  If the solvency liabilities in respect of a member include liabilities for a funded special allowance, the liabilities for the funded special allowance shall be calculated on the assumption that the member receives no income from employment. O. Reg. 712/92, s. 1 (23).

(4)  In calculating solvency assets or a transfer ratio, where there is no market value for an investment of a pension plan and the investment is issued or guaranteed by a government, the book value of the investment may be used instead of market value. R.R.O. 1990, Reg. 909, s. 1 (4).

(5)  For the purposes of this Regulation, a going concern unfunded liability, a past service unfunded liability, a solvency deficiency, a solvency liability, a transfer deficiency and a transfer ratio each arises on the valuation date of the report in which it is determined. O. Reg. 712/92, s. 1 (24).

1.1  (1)  For the purposes of this Regulation, a report submitted to the Superintendent under the Stelco Pension Plans Regulation is deemed to be a report prepared and filed under section 14 of this Regulation. O. Reg. 100/06, s. 1.

(2)  For the purposes of this Regulation, a contribution or special payment required under section 7 of the Stelco Pension Plans Regulation is deemed to be a contribution required under section 12 of this Regulation or special payment required under section 5 of this Regulation, as the case may be. O. Reg. 100/06, s. 1.

(3)  For the purposes of this Regulation, a special payment required under section 8 of the Stelco Pension Plans Regulation is deemed to be a special payment required under section 5 of this Regulation. O. Reg. 100/06, s. 1.

(4)  In this section,

“Stelco Pension Plans Regulation” means Ontario Regulation 99/06 (Stelco Inc. Pension Plans) made under the Act. O. Reg. 100/06, s. 1.

1.2  (1)  For the purposes of this Part, the solvency asset adjustment in relation to a report in respect of a pension plan for which a benefit allocation method is used to set contribution rates is the sum of,

(a) the amount, which may be positive or negative, by which the value of the solvency assets are adjusted as a result of applying an averaging method that stabilizes short-term fluctuations in the market value of the plan assets, calculated over a period of not more than five years;

(b) the present value of any special payments referred to in clause 5 (1) (a);

(c) the present value of any special payments required to liquidate any past service unfunded liability; and

(d) the present value of all special payments referred to in clause 5 (1) (b), (c), (d) or (e), other than special payments required to liquidate any past service unfunded liability or any solvency deficiency determined in the report, that are scheduled for payment within,

(i) the period of five years that begins on the valuation date of the report, in the case of a pension plan other than a jointly sponsored pension plan, or

(ii) a period that begins on the valuation date of the report and continues until the end of a five-year period that begins on a date not later than 12 months after the valuation date, in the case of a jointly sponsored pension plan. O. Reg. 116/06, s. 2.

(2)  Despite subsection (1), the solvency asset adjustment in relation to a report in respect of a pension plan that provides defined benefits and for which a benefit allocation method is not used to set contribution rates is the sum of “A” and “B” where,

“A” is the amount, which may be positive or negative, by which the value of the solvency assets are adjusted as a result of applying an averaging method that stabilizes short-term fluctuations in the market value of the plan assets, calculated over a period of not more than five years, and

“B” is the greater of zero and the amount calculated using the formula,

C + D – E

in which,

“C” is the present value of the required contributions, which are determined using the actuarial cost method adopted by the plan, for the five-year period that begins on the valuation date of the report, or in the case of a jointly sponsored pension plan, for a period that begins on the valuation date of the report and continues until the end of a five-year period that begins on a date not later than 12 months after the valuation date,

“D” is the present value of any special payments referred to in clause 5 (1) (e) that are scheduled for payment within the applicable period described in the definition of “C”, other than any special payments required to liquidate any solvency deficiency determined in the report, and

“E” is the present value of the normal cost, which is determined using a benefit allocation method, for the applicable period described in the definition of “C”.

O. Reg. 116/06, s. 2.

(3)  For the purposes of subsections (1) and (2), the present value of special payments, required contributions and the normal cost must be calculated as of the valuation date of the report and must be calculated using,

(a) the interest rates used in the report to calculate the solvency liabilities, if the solvency liability adjustment is zero; or

(b) the average interest rates used in the report to calculate the solvency liability adjustment, if the solvency liability adjustment is not zero. O. Reg. 116/06, s. 2.

(4)  In the case of a jointly sponsored pension plan, the present values determined for the purposes of the definitions of “C”, “D” and “E” in subsection (2) shall be calculated based on the sum of the projected pensionable earnings for the applicable period described in the definition of “C” in subsection (2). O. Reg. 116/06, s. 2.

1.3  (1)  For the purposes of this Part, the solvency liability adjustment in relation to a report is zero unless either of the circumstances described in subsection (2) exist. O. Reg. 413/07, s. 2.

(2)  The solvency liability adjustment in relation to a report is the amount calculated under subsection (3) if either of the following circumstances exist:

1. The solvency valuation includes a determination of a solvency asset adjustment, and that solvency asset adjustment includes an amount described in clause 1.2 (1) (a).

2. The solvency valuation includes a determination of a solvency asset adjustment, and that solvency asset adjustment includes an amount defined as “A” in subsection 1.2 (2). O. Reg. 413/07, s. 2.

(3)  In the circumstances described in subsection (2), the solvency liability adjustment is the amount, positive or negative, by which the value of the solvency liabilities is adjusted as a result of using a solvency valuation interest rate that is the average of market interest rates calculated over the same period of time as the one used in the determination of the amount referred to in paragraph 1 or 2 of subsection (2), whichever applies. O. Reg. 413/07, s. 2.

Registration and Amendments

2.  An application under subsection 9 (1) of the Act for registration of a pension plan must be made within 90 days after the pension plan is established. O. Reg. 144/00, s. 2.

3.  (1)  Where an amendment to a pension plan reduces or increases contributions or creates or changes a going concern unfunded liability or solvency deficiency, the administrator shall file a report containing any of the information required in a report under section 14 that might be affected by the amendment. O. Reg. 712/92, s. 2.

(1.1)  Subsection (1) does not apply with respect to a pension plan where all the pension benefits provided under the plan are defined contribution benefits. O. Reg. 144/00, s. 3.

(2)  The administrator shall file the report required under subsection (1) within six months following the date the amendment is required to be submitted for registration. R.R.O. 1990, Reg. 909, s. 3 (2).

(3)  An administrator who is required by the Superintendent to give notice of a proposed amendment under subsection 26 (1) of the Act shall certify in writing to the Superintendent, within thirty days after the date on which the last of the notices was transmitted, details as to the classes of persons who received notice, the date the last notice was distributed and that notice was provided as required. R.R.O. 1990, Reg. 909, s. 3 (3).

(4)  The administrator shall file the explanation required to be provided under subsection 26 (3) of the Act within six months after registration of the amendment. R.R.O. 1990, Reg. 909, s. 3 (4).

Jointly Sponsored Pension Plans

3.1  (1)  For the purposes of paragraph 4 of subsection 1 (2) of the Act, a pension plan must, by virtue of the documents that create and support the plan, satisfy the following additional criteria in order to be a jointly sponsored pension plan:

1. The total amount of contributions payable by members of the pension plan in respect of a year, excluding any additional voluntary contributions and voluntary contributions for past service as described in subsection 39 (5) of the Act, cannot exceed the total amount of contributions payable to the pension plan in respect of the year by the employer or by the person or entity required to make contributions on behalf of the employer, as the case may be.

2. The pension plan does not permit a reduction in the amount of or the commuted value of a pension benefit, a pension, a deferred pension or an ancillary benefit in the circumstances described in subsection 14 (2) or (3) of the Act, except in the circumstances of a wind up.

3. The employers or any persons or entities who make contributions on behalf of the employers or represent the employers and the members of the pension plan or any representatives of the members are jointly responsible for making all decisions about the terms and conditions of the pension plan and any amendments to the pension plan.

4. The employers or any persons or entities who make contributions on behalf of the employers or represent the employers and the members of the pension plan or any representatives of the members are jointly responsible for making all decisions regarding,

i. the appointment of the administrator of the plan, or

ii. the appointment or selection of persons as members of any body or entity referred to in clause 8 (1) (b), (c), (e), (f) or (h) of the Act that is the administrator of the plan.

5. The level of a member’s pension benefits, other than ancillary benefits, and the amount of a member’s contributions are directly related to the member’s pensionable earnings. O. Reg. 116/06, s. 3.

(2)  The documents that create and support a jointly sponsored pension plan must set out the methods by which the decisions referred to in paragraphs 3 and 4 of subsection (1) are to be made. O. Reg. 116/06, s. 3.

3.2  Each of the following pension plans is prescribed as a jointly sponsored pension plan for the purposes of the Act:

1. OMERS Primary Pension Plan, registered under the Act as number 345983. O. Reg. 413/07, s. 3 (1).

Note: On July 1, 2008, section 3.2 is amended by adding the following paragraph:

2. OMERS Supplemental Pension Plan for Police, Firefighters and Paramedics, registered under the Act as number 1175892.

See: O. Reg. 413/07, ss. 3 (2), 7 (2).

Funding of Pension Plans

payments — general

4.  (1)  Every pension plan shall set out the obligation of the employer or any person or entity required to make contributions on behalf of the employer and, in the case of a jointly sponsored pension plan, the obligation of the members of the pension plan, if applicable, to contribute both in respect of the normal cost and any going concern unfunded liability and solvency deficiency under the plan. O. Reg. 116/06, s. 4 (1).

(2)  Subject to subsection (2.1), an employer who is required to make contributions under a pension plan or, if a person or entity is required to make contributions under the pension plan on behalf of the employer, that person or entity and, if applicable, the members of the pension plan or their representative shall make payments to the pension fund or to an insurance company, as applicable, that are not less than the sum of,

(a) all contributions, including contributions in respect of any going concern unfunded liability and solvency deficiency and money withheld by payroll deduction or otherwise from an employee, that are received from employees as the employees’ contributions to the pension plan;

(b) all contributions required to pay the normal cost;

(c) all special payments determined in accordance with section 5; and

(d) all special payments determined in accordance with sections 31, 32 and 35 and all payments determined in accordance with section 31.1. O. Reg. 712/92, s. 3 (2); O. Reg. 73/95, s. 2 (1); O. Reg. 116/06, s. 4 (2-4).

(2.1)  Despite subsection (2), an employer required to make contributions under a designated plan shall not be required to make a payment to the pension fund or to an insurance company, as applicable, that is not an eligible contribution. O. Reg. 73/95, s. 2 (2).

(2.2)  Despite subsections (1) and (2), the amount of contributions required to be made to a pension plan that provides defined benefits may be determined by using an actuarial cost method other than a benefit allocation method if,

(a) the actuarial cost method that is used is consistent with accepted actuarial practice; and

(b) the rules set out in subsection (2.3) are satisfied. O. Reg. 116/06, s. 4 (5).

(2.3)  For the purposes of clause (2.2) (b), the rules are as follows:

1. If the valuation date of a report filed under section 3, 13 or 14 is before December 31, 2006 and, at the valuation date, the amount determined under clause (a) of the definition of “going concern assets” in subsection 1 (2) is not less than the going concern liabilities determined using a benefit allocation method, the present value of the required contributions for the three-year period referred to in paragraph 1.1 must not be less than the present value of the contributions for that period that would be made in respect of the normal cost for the plan if the benefit allocation method were used, after the application of any actuarial gains to reduce the normal cost in accordance with subsection 7 (3).

1.1 The three-year period referred to in paragraph 1 must begin,

i. in the case of a pension plan that is not a jointly sponsored pension plan, on the valuation date, or

ii. in the case of a jointly sponsored pension plan, on a date not later than 12 months after the valuation date or, in the case of an inter-valuation report described in section 5.5, not later than January 1, 2007.

1.2. If the valuation date of a report filed under section 3, 13 or 14 is on or after December 31, 2006 and, at the valuation date, the amount determined under clause (a) of the definition of “going concern assets” in subsection 1 (2) is not less than the going concern liabilities determined using a benefit allocation method, the present value of the required contributions for the five-year period referred to in paragraph 1.3 must not be less than the present value of the contributions for that period that would be made in respect of the normal cost for the plan if the benefit allocation method were used, after the application of any actuarial gains to reduce the normal cost in accordance with subsection 7 (3).

1.3 The five-year period referred to in paragraph 1.2 must begin,

i. in the case of a pension plan that is not a jointly sponsored pension plan, on the valuation date, or

ii. in the case of a jointly sponsored pension plan, on a date not later than 12 months after the valuation date.

2. If, at the valuation date of a report filed under section 3, 13 or 14, the amount determined under clause (a) of the definition of “going concern assets” in subsection 1 (2) is less than the going concern liabilities determined using a benefit allocation method, the present value of the required contributions, which are determined under the actuarial cost method used by the plan, must not be less than the sum of the present value of the normal cost and the present value of the special payments determined in accordance with section 5 that would be required to liquidate any going concern unfunded liability determined using the benefit allocation method.

2.1 The present values referred to in paragraphs 1, 1.2 and 2 shall be determined without reference to paragraphs 7 and 10 and without reference to subsections (2.7) and (2.7.1).

3. The rate or rates of interest to be used in calculating present values referred to in paragraphs 1, 1.2 and 2 shall be the rate or rates used in the report for the going concern valuation.

3.1 For the purposes of paragraphs 1, 1.2 and 2, the going concern valuation prepared using the benefit allocation method shall use the same rate or rates of interest as those used in the going concern valuation prepared using the actuarial cost method used by the plan.

4. In the case of a pension plan that is not a jointly sponsored pension plan, the present values referred to in paragraph 2 shall be calculated using whichever of the following periods is longer:

i. The period that begins on the valuation date and continues until the end of the remaining amortization period of the going concern unfunded liability that has the longest remaining amortization period.

ii. The period of five years that begins on the valuation date.

4.1 In the case of a jointly sponsored pension plan, the present values referred to in paragraph 2 shall be calculated using whichever of the following periods is longer:

i. The period that begins on a date not later than 12 months after the valuation date or, in the case of an inter-valuation report described in section 5.5, not later than January 1, 2007, and continues until the end of the remaining amortization period of the going concern unfunded liability that has the longest remaining amortization period.

ii. The period of five years that begins on a date not later than 12 months after the valuation date or, in the case of an inter-valuation report described in section 5.5, not later than January 1, 2007.

5. In the case of a jointly sponsored pension plan,

i. the present values referred to in paragraph 1 shall be calculated based on the sum of the projected pensionable earnings for each year in the three-year period referred to in that paragraph,

ii. the present values referred to in paragraph 1.2 shall be calculated based on the sum of the projected pensionable earnings for each year in the five-year period referred to in that paragraph,

iii. the present values referred to in paragraph 2 shall be calculated based on the period used for the purposes of paragraph 4.1 and the sum of the projected pensionable earnings for each year in that period, and

iv. the actuarial assumptions used to determine the sums referred to in subparagraphs i, ii and iii of the projected pensionable earnings shall be consistent with those used in the report for the going concern valuation based on the benefit allocation method.

6. Subject to paragraph 7, the required contribution rate for a jointly sponsored pension plan shall be determined as a level percentage of pensionable earnings for each class of members, subject to any variation that is necessary in order to take into account integration with the Canada Pension Plan or the Quebec Pension Plan.

7. If the required contribution rate set out in a report filed under section 3 or 14 in respect of a jointly sponsored pension plan is higher than the required contribution rate determined in the last report filed under section 3, 13 or 14, the required contribution rate may be increased each year for up to three years, commencing not later than 12 months after the valuation date, by at least one third of the difference between the two contribution rates, but only if,

i. the contribution rate after that period is a level percentage of pensionable earnings, subject to any variation that is necessary in order to take into account integration with the Canada Pension Plan or the Quebec Pension Plan, and

ii. the present value of the required contributions using the increased rates is not less than,

A. the present value of the contributions that would be made in respect of the normal cost for the plan if the benefit allocation method were used, after the application of any actuarial gains to reduce the normal cost in accordance with subsection 7 (3), if paragraph 1 or 1.2 applies, or

B. the sum of the present value of the normal cost and the present value of the special payments determined in accordance with section 5 that would be required to liquidate any going concern unfunded liability determined using the benefit allocation method, if paragraph 2 applies.

8. For the purposes of paragraph 7, the determination of whether the required contribution rate set out in the report is higher than the required contribution rate determined in the last filed report shall be made without taking into account the ability to increase required contribution rates each year for up to three years under that paragraph, and without taking into account the ability to carry forward amounts under paragraph 10 to reduce those increases.

9. The present values referred to in subparagraph 7 ii shall be calculated using the same period as was used to calculate the present values referred to in paragraph 1, 1.2 or 2, whichever is applicable.

10. If paragraph 7 permits the required contribution rate to be increased each year for up to three years and the amount of any increase in the first or second year exceeds one third of the difference between the required contribution rate set out in the report and the required contribution rate determined in the last filed report, the excess may be carried forward to the following year or years and used to reduce the increases in the following year or years, as long as the present value of the required contributions using the increased rates, as adjusted, is not less than the present value referred to in sub-subparagraph 7 ii A or B, whichever is applicable. O. Reg. 116/06, s. 4 (5); O. Reg. 570/06, s. 2 (1-10).

(2.4)  If, in accordance with subsection (2.2), the amount of contributions required to be made to a pension plan that provides defined benefits is determined by using an actuarial cost method other than a benefit allocation method, the payments to the pension fund or to an insurance company, as applicable, shall not be less than the sum of,

(a) the required contributions determined using the actuarial cost method; and

(b) all special payments determined in accordance with section 5 with respect to any solvency deficiency. O. Reg. 116/06, s. 4 (5).

(2.5)  If the amount of contributions required to be made to a pension plan that provides defined benefits is determined in accordance with subsection (2.2) using an actuarial cost method other than a benefit allocation method, the contributions shall be deemed to be the contributions required to be made under this Regulation and the definitions in section 1 shall apply with necessary modifications. O. Reg. 116/06, s. 4 (5).

(2.6)  If a report filed under section 3 or 14 discloses, in respect of a jointly sponsored pension plan for which a benefit allocation method is used to set contribution rates, that an increase in the normal cost is required or that an increase is required in the amount of contributions that were previously reduced under subsection 7 (3), payment of that increase shall commence on a date not later than 12 months after the valuation date. O. Reg. 570/06, s. 2 (11).

(2.7)  If a report filed under section 3 or 14 discloses that there is a going concern unfunded liability that is required to be liquidated in respect of a jointly sponsored pension plan for which a benefit allocation method is used to set the contribution rates, the special payments in respect of the going concern unfunded liability, as determined in accordance with subsection 5 (1.2), may be increased each year for up to three years, commencing not later than 12 months after the valuation date or, in the case of an inter-valuation report described in section 5.5, not later than January 1, 2007, by at least one third of the special payments, but only if,

(a) the special payments after that period are a level percentage of pensionable earnings for each class of members, subject to any variation that is necessary in order to take into account integration with the Canada Pension Plan or the Quebec Pension Plan; and

(b) the present value of the special payments, including the increased special payments, over the amortization period is not less than the amount of the going concern unfunded liability. O. Reg. 570/06, s. 2 (12).

(2.7.1)  If subsection (2.7) permits the special payments in respect of the going concern unfunded liability, as determined in accordance with subsection 5 (1.2), to be increased each year for up to three years, and the amount of any increase in the first or second year exceeds one third of the special payments, the excess may be carried forward to the following year or years and used to reduce the increases in the following year or years, as long as the present value of the special payments, including the increased special payments, as adjusted, over the amortization period is not less than the amount of the going concern unfunded liability. O. Reg. 570/06, s. 2 (13).

(2.8)  In the case of a jointly sponsored pension plan, contributions referred to in subsection 39 (3) of the Act include contributions made by a former member in respect of any going concern unfunded liability or solvency deficiency. O. Reg. 116/06, s. 4 (5).

(3)  Where there is a prior year credit balance, the employer may apply the prior year credit balance to reduce the payments required under clauses (2) (b), (c) and (d). O. Reg. 712/92, s. 3 (1).

(3.1)  Subsection (3) does not apply if the pension plan provides defined benefits and a benefit allocation method is not used to set contribution rates. O. Reg. 116/06, s. 4 (6).

(4)  The payments referred to in subsections (2) and (2.4) shall be made by the employer or, if a person or entity is required to make contributions on behalf of the employer, by that person or entity and, if applicable, by the members of the pension plan within the following time limits:

1. All sums received by the employer from an employee, including money withheld by payroll deduction or otherwise from the employee, as the employee’s contribution to the pension plan, within thirty days following the month in which the sum was received or deducted.

2. Revoked: O. Reg. 116/06, s. 4 (8).

3. In the case of a pension plan that provides defined benefits, employer contributions in respect of the normal costs reported under clause 13 (1) (a) or 14 (7) (a) for each period covered by a report beginning on or after the 1st day of January, 1988, in monthly instalments within thirty days after the month for which contributions are payable, the amount of the instalments to be either a total fixed dollar amount, a fixed dollar amount for each employee or member of the plan or a fixed percentage either of the portion of the payroll related to members of the plan or of employee contributions.

3.1 Where all the pension benefits provided under the plan are defined contribution benefits, employer contributions for the plan’s fiscal year, in monthly instalments within 30 days after the month for which contributions are payable, the amount of the instalments to be either a total fixed dollar amount, a fixed dollar amount for each employee or member of the plan or a fixed percentage either of the portion of the payroll related to members of the plan or of employee contributions.

4. Revoked: O. Reg. 116/06, s. 4 (8).

5. All special payments determined in accordance with section 5, subsection 31 (5) and subsection 35 (5), other than a payment made under paragraph 4, in equal monthly instalments in accordance with the times for payment set out in sections 5, 31 and 35.

6. All special payments determined in accordance with subsections 31 (1) and (2), section 32 and subsection 35 (3), by annual instalment in accordance with the times for payment set out in sections 31, 32 and 35. O. Reg. 712/92, s. 3 (1); O. Reg. 386/04, s. 1; O. Reg. 116/06, s. 4 (7).

(5)  Subject to subsections (10) and (11), if the period covered by a report filed under section 3, 5.3, 13 or 14 or submitted under this section has ended, and no report covering a subsequent period is filed under section 14 or submitted under this section, the employer or, if a person or entity is required to make contributions on behalf of the employer, that person or entity and, if applicable, the members of the pension plan shall continue to make payments in accordance with the report most recently filed or submitted under section 3, 5.3, 13 or 14 or this section. O. Reg. 116/06, s. 4 (9).

(6)  The Superintendent may cause a report on a plan to be prepared where,

(a) a report required under section 3, 13 or 14 on the plan has not been filed within one year after the time required by this Regulation; and

(b) the Superintendent is of the opinion that the preparation of a report in accordance with subsection (7) is necessary to ensure that the plan is sufficiently funded to provide the benefits under the plan. O. Reg. 712/92, s. 3 (2); O. Reg. 307/98, s. 2 (1); O. Reg. 144/00, s. 4 (1).

(7)  A report under subsection (6) must contain the information required by section 3, 13 or 14, whichever applies. O. Reg. 144/00, s. 4 (2).

(7.1)  A report under subsection (6) must be prepared by an actuary chosen by the Superintendent and must be submitted by the actuary to the Superintendent. O. Reg. 144/00, s. 4 (2).

(8)  If, during the preparation of a report on a plan, under this section, the Superintendent forms the opinion that the report is no longer necessary to ensure that the plan is sufficiently funded to provide the benefits under the plan, the Superintendent may cause work on the report to cease and the actuary need not submit the report to the Superintendent. O. Reg. 712/92, s. 3 (2); O. Reg. 307/98, s. 2 (3).

(9)  If a report is submitted to the Superintendent under subsection (7.1), the employer or, if another person or entity is required to make contributions on behalf of the employer, that person or entity and, if applicable, the members of the pension plan shall make payments in accordance with the report. O. Reg. 116/06, s. 4 (10).

(10)  Except as provided in subsection (11), if a payment requirement set out in a report submitted under subsection (7.1) concerning a plan differs from a payment requirement set out in a report filed by the administrator, the employer or, if another person or entity is required to make contributions on behalf of the employer, that person or entity and, if applicable, the members of the pension plan shall make payments in accordance with the higher requirement. O. Reg. 116/06, s. 4 (10).

(11)  If, in the opinion of the Superintendent, a payment in accordance with the higher requirement under subsection (10) is not necessary to ensure that the plan is sufficiently funded to provide benefits under the plan, the payments shall be made in accordance with the lower requirement. O. Reg. 116/06, s. 4 (10).

(12)  Revoked: O. Reg. 144/00, s. 4 (3).

(13)  This section does not apply to a pension plan described in subsection 6 (1) unless it is a jointly sponsored pension plan. O. Reg. 116/06, s. 4 (11).

special payments — general

5.  (1)  Except as otherwise provided in this section and in sections 4, 5.1 and 7, the special payments required to be made after the initial valuation date under clause 4 (2) (c) shall be not less than the sum of,

(a) any special payments remaining to be paid with respect to any initial unfunded liability or experience deficiency within the meaning of Regulation 746 of the Revised Regulations of Ontario, 1980 as it read on the 31st day of December, 1987, after reducing the sum of the initial unfunded liability and experience deficiency by the amount of any unused actuarial gains existing on the 31st day of December, 1987;

(b) with respect to any going concern unfunded liability not covered by clause (a), the special payments required to liquidate the liability, with interest at the going concern valuation interest rate, by equal monthly instalments over a period of fifteen years beginning on the valuation date of the report in which the going concern unfunded liability was determined;

(c) with respect to each solvency deficiency redetermined under subsection (3), the special payments required to liquidate the redetermined solvency deficiency, with interest at the rates used in calculating the solvency liabilities in the first report filed or submitted under section 3, 4 or 14 with a valuation date after the Regulation date, by equal monthly instalments over the period beginning on the valuation date of the report in which the solvency deficiency was determined and ending on the 31st day of December, 2002;

(d) with respect to each solvency deficiency arising before the Regulation date that is not redetermined under subsection (3), the special payments required to liquidate the solvency deficiency, with interest at the rates described in subsection (2), by equal monthly instalments over the period beginning on the valuation date of the report in which the solvency deficiency was determined and ending on the 31st day of December, 2002 or an earlier date; and

(e) with respect to any solvency deficiency arising on or after the Regulation date, the special payments required to liquidate the solvency deficiency, with interest at the rates described in subsection (2), by equal monthly instalments over the period beginning on the valuation date of the report in which the solvency deficiency was determined and ending on the 31st day of December, 2002, or five years, whichever is longer. O. Reg. 712/92, s. 4.

(1.1)  Despite clauses (1) (b) and (e), in the case of a jointly sponsored pension plan, the special payments may be determined in accordance with subsection (1.2) as of,

(a) the date the going concern unfunded liability arose, for special payments referred to in clause (1) (b); or

(b) the date the solvency deficiency arose, for special payments referred to in clause (1) (e). O. Reg. 116/06, s. 5 (1).

(1.2)  The special payments referred to in subsection (1.1) are determined under the following rules:

1. Each scheduled payment must be a level percentage of the sum of pensionable earnings of the members of the pension plan at the valuation date projected to the date when the scheduled payments commence and, after that date, projected annually until the end of the amortization period without reference to,

i. changes in the membership of the plan that may occur after the valuation date and that arise from termination of employment or membership, the retirement or death of members or the addition of new members to the plan, or

ii. any other changes in the membership of the plan that may occur after the valuation date.

1.1 Despite paragraph 1, if there is reason to believe that there will be a material decline in the number of members before the end of the amortization period, the sum in paragraph 1 of the projected pensionable earnings must reflect the expected decline in the sum of projected pensionable earnings.

2. The sum in paragraph 1 of the projected pensionable earnings must be determined based on actuarial assumptions that are consistent with those used to project pensionable earnings in the going concern valuation based on the benefit allocation method.

3. The present value of the scheduled payments at the date described in subsection (1.1) must be equal to the amount of the going concern unfunded liability or solvency deficiency being liquidated.

4. The amortization periods for each series of scheduled payments must be the same as the respective periods under clauses (1) (b) and (e), beginning not later than 12 months after the valuation date.

5. The present value of the scheduled payments must be determined,

i. with respect to any going concern unfunded liability, using the interest rate or rates used in the report to determine the going concern unfunded liability, and

ii. with respect to any solvency deficiency, using the interest rates used in the report to determine the solvency deficiency. O. Reg. 116/06, s. 5 (1); O. Reg. 570/06, s. 3.

(2)  The rates of interest to be used in calculating the special payments under clauses (1) (d) and (e) with respect to a solvency deficiency are the rates used in the report under section 14 in which the solvency deficiency was determined for the applicable portions of the amortization period for the special payments. O. Reg. 712/92, s. 4.

(3)  Except where the employer elects not to redetermine under subsection (8), every solvency deficiency determined in a report with a valuation date before the Regulation date shall be redetermined in accordance with this Regulation and the amount of the redetermined solvency deficiency shall be reported in a report filed in accordance with subsection (5). O. Reg. 712/92, s. 4.

(4)  A determination under subsection 13 (1.1) or clause 14 (8) (a) that a solvency deficiency is zero is a determination of a solvency deficiency for the purposes of subsection (3). O. Reg. 712/92, s. 4.

(5)  Except where the employer elects not to redetermine under subsection (8), the administrator shall file a report in accordance with subsections (6) and (7). O. Reg. 712/92, s. 4.

(6)  The valuation date of the report referred to in subsection (5) shall be not later than the last day of the fiscal year of the plan in which the Regulation date falls and the report shall be filed within nine months of the valuation date. O. Reg. 712/92, s. 4.

(7)  The report referred to subsection (5) shall set out,

(a) the information described in subsections 14 (7), (8) and (9);

(b) the amount of each redetermined solvency deficiency;

(c) the special payments, determined in accordance with clause 5 (1) (c), with respect to each redetermined solvency deficiency;

(d) the amount of the initial solvency balance; and

(e) the amount of the prior year credit balance. O. Reg. 712/92, s. 4.

(8)  The employer for a plan may elect not to redetermine the solvency deficiencies arising before the Regulation date if the conditions of subsection (9) are met in relation to each of the following reports:

1. Reports in respect of the plan filed under sections 3, 13 and 14 with valuation dates on or after the lst day of January, 1988 but nine months before the Regulation date.

2. Reports required to be filed in respect of the plan under section 3 on or after the 1st day of July, 1988 but before the Regulation date.

3. Reports required to be filed in respect of the plan under section 13 on or after the lst day of March, 1988 but before the Regulation date.

4. Reports required to be filed in respect of the plan under section 14 on or after the lst day of October, 1988 but before the Regulation date. O. Reg. 712/92, s. 4.

(9)  The following are the conditions that must be met in relation to the reports described in subsection (8):

1. The reports have all been filed.

2. The reports have all been prepared in accordance with the requirements of the Act and this Regulation in effect on the valuation date of the report.

3. All payments required by the reports to be made before the Regulation date have been made.

4. An actuary has signed a statement that the requirements of paragraph 2 have been met.

5. The administrator has signed a statement that the requirements of paragraphs 1 and 3 have been met. O. Reg. 712/92, s. 4.

(10)  An employer who elects not to redetermine under subsection (8) may not rescind the election. O. Reg. 712/92, s. 4.

(11)  Where an employer for a plan has elected not to redetermine under subsection (8), the administrator for the plan shall file, within nine months after the last day of the fiscal year of the plan in which the Regulation date falls, a report including,

(a) the statements described in paragraphs 4 and 5 of subsection (9);

(b) with respect to the special payments required under clause 5 (1) (d), the amount of the monthly instalments and the period over which they are to be paid;

(c) the amount of initial solvency balance at the Regulation date; and

(d) the amount of the prior year credit balance at the Regulation date. O. Reg. 712/92, s. 4.

(12)  In this section,

“prepayments”, in relation to a plan, means that part of the special payments that exceeded the special payments required under this Regulation as it read before the Regulation date and that were paid by the employer before the Regulation date with respect to the going concern unfunded liability but that were not applied by the employer before the Regulation date under subsection 12 (1) of this Regulation as it read before the Regulation date, but no special payments by the employer that were included in the calculation of the initial solvency balance of the plan shall be included in prepayments. O. Reg. 712/92, s. 4.

(13)  For a plan established on or after the Regulation date, the prior year credit balance to be used in the report on the plan filed under section 13 shall be zero. O. Reg. 712/92, s. 4.

(14)  For a plan in respect of which an administrator files a report under subsection (11), the prior year credit balance to be used in the subsection (11) report shall be an amount equal to the sum of any positive initial solvency balance for the plan and an amount equal to the prepayments for the plan. O. Reg. 712/92, s. 4.

(15)  For a plan not referred to in subsection (13) or (14), the prior year credit balance to be used in the first report filed or submitted under any one of sections 3, 4 and 14 after the Regulation date shall be an amount equal to the sum of any positive initial solvency balance for the plan and an amount equal to the prepayments for the plan or, in the case of a plan with no positive initial solvency balance, an amount equal to the prepayments for the plan. O. Reg. 712/92, s. 4.

(16)  Subject to subsections (13), (14), (15), (16.1) and 5.1 (5), the prior year credit balance to be used in any report required by this Regulation shall be the amount by which the sum of,

(a) the prior year credit balance stated in the last report filed or submitted in respect of the plan under this Regulation; and

(b) the total employer contributions made to the plan after the valuation date of the last report filed or submitted in respect of the plan under this Regulation but before the current valuation date,

exceeds,

(c) the aggregate employer contributions required to be paid under section 4 after the valuation date of the last report filed or submitted in respect of the plan under this Regulation but before the current valuation date, calculated without reference to any prior year credit balance. O. Reg. 712/92, s. 4; O. Reg. 144/00, s. 5 (1).

(16.1)  For a report filed under section 3 or 14 or submitted under section 4 that has a valuation date of December 31, 1998 or later, the prior year credit balance may be reduced to an amount that is,

(a) less than the amount otherwise determined in accordance with subsection (16); and

(b) not less than zero. O. Reg. 144/00, s. 5 (2).

(16.2)  Despite subsections (13), (14), (15), (16) and (16.1), if a pension plan provides defined benefits and a benefit allocation method is not used to set the contribution rates, the prior year credit balance to be used in any report filed or submitted in respect of the pension plan shall be zero. O. Reg. 116/06, s. 5 (2).

(17)  If, on any valuation date after the initial valuation date 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 (such excess being referred to in this subsection as the “solvency excess”), the special payments under clauses (1) (c), (d) and (e) with respect to solvency deficiencies arising before the valuation date that are scheduled for payment after the valuation date shall be adjusted in accordance with the following rules:

1. Where the solvency excess is greater than or equal to the present value of the special payments under clauses (1) (c), (d) and (e), the special payments shall be reduced to zero.

2. Where the solvency excess is less than the present value of the special payments under clauses (1) (c), (d) and (e), the monthly rate of the special payments shall not be changed but the amortization period or periods for the special payments shall be reduced so as to reduce the solvency excess to zero. O. Reg. 712/92, s. 4; O. Reg. 116/06, s. 5 (3).

(18)  If on the Regulation date a plan provides plant closure benefits or permanent layoff benefits, the employer may elect, by filing written notice with the Superintendent within the time set out in subsection (19), to exclude all plant closure benefits and permanent layoff benefits in calculating the solvency liabilities of the plan. O. Reg. 712/92, s. 4.

(19)  An election under subsection (18) shall be made within the time set out in this Regulation for the filing of the first report on the plan after the Regulation date under section 3 or 14. O. Reg. 712/92, s. 4.

(20)  At any time after an election is made under subsection (18), the employer may rescind the election by filing written notice. O. Reg. 712/92, s. 4.

(21)  A rescission under subsection (20) is effective from the date on which the written notice is filed. O. Reg. 712/92, s. 4.

(22)  An employer who has rescinded an election under subsection (18) shall not make any further election under subsection (18) in respect of the plan. O. Reg. 712/92, s. 4.

(23)  Except where an employer elects not to redetermine under subsection (8) or files an initial special report under subsection 5.3 (1), the special payments required in the period beginning on the Regulation date and ending on the initial valuation date to amortize a going concern unfunded liability or solvency deficiency shall be not less than the special payments required under this Regulation as it read immediately before the Regulation date. O. Reg. 712/92, s. 4.

(24)  Where an employer has elected not to redetermine under subsection (8), the special payments required in the period beginning on the Regulation date and ending on the initial valuation date with respect to each solvency deficiency determined in a report with a valuation date before the Regulation date shall be not less than the special payments required under clause 5 (1) (d). O. Reg. 712/92, s. 4.

(25)  Nothing in this section relieves any person from making any payments required under this Regulation in respect of a negative initial solvency balance of a plan. O. Reg. 712/92, s. 4.

5.1  (1)  Where an employer has a plan that has more than $500,000,000 of assets, calculated at market value, as shown in the financial statements filed under section 76 for the fiscal year immediately preceding the date of election, and the plan is registered under the Act and is not a plan described in subsection 6 (1), the employer may file a written notice electing to have the plan treated as a qualifying plan for the purposes of this section. O. Reg. 712/92, s. 4.

(2)  Where an employer has two or more plans that together have more than $500,000,000 of assets, calculated at market value, as shown in the financial statements filed under section 76 for the fiscal year immediately preceding the date of election, each of the plans is registered under the Act and none of the plans is a plan described in subsection 6 (1), the employer may file a written notice electing to have all of the plans treated as qualifying plans for the purposes of this section. O. Reg. 712/92, s. 4.

(2.1)  Employers are not entitled to file a written notice under subsection (1) or (2) on or after June 28, 2002. O. Reg. 203/02, s. 1.

(3)  A plan in respect of which an election has been made under subsection (1) or (2) becomes a qualifying plan at the time of filing the notice of the election and remains a qualifying plan until the election has been rescinded in accordance with this section. O. Reg. 712/92, s. 4.

(4)  Subject to subsections (6), (7) and (8) and despite clause 4 (2) (c), an employer for a qualifying plan need not make special payments under clauses 5 (1) (c), (d) and (e) with respect to any solvency deficiency for the plan. O. Reg. 712/92, s. 4.

(5)  The prior year credit balance to be used in any report under this Regulation in respect of a qualifying plan shall be an amount equal to the prepayments, within the meaning of subsection 5 (12), for the plan. O. Reg. 712/92, s. 4.

(6)  Subsection (8) applies to a plan in respect of which an election was made under subsection (1) as of the earlier of,

(a) the valuation date of any report filed or submitted under this Regulation in respect of the plan after the filing of the notice of election that shows that the plan has assets equal to or less than $500,000,000, calculated at market value; and

(b) nine months before the first date on which a report required to be filed under section 14 in respect of the plan is not filed. O. Reg. 712/92, s. 4.

(7)  Subsection (8) applies to plans in respect of which an election was made under subsection (2) as of the earlier of,

(a) the valuation date of the first report filed or submitted under this Regulation in respect of one of the plans after the filing of the notice of election that shows that the plans together have assets equal to or less than $500,000,000, calculated at market value; and

(b) nine months before the first date on which a report required to be filed under section 14 in respect of any of the plans is not filed. O. Reg. 712/92, s. 4.

(8)  Where this subsection applies to a plan or plans by virtue of subsection (6) or (7), the following rules apply:

1. Subsection (4) ceases to apply in respect of the plan or plans.

2. The employer shall make special payments in accordance with clauses 5 (1) (c), (d) and (e) in respect of the plan or plans.

3. The employer shall continue to pay assessments to the Guarantee Fund in accordance with subsection 37 (6). O. Reg. 712/92, s. 4.

(9)  Subsection (8) ceases to apply to a plan in respect of which an election was made under subsection (1) on the earlier of,

(a) the date of rescission with respect to the plan under subsection (12); and

(b) the valuation date of the first report filed or submitted under this Regulation in respect of the plan after the date on which subsection (8) began to apply to the plan that shows that the plan has more than $500,000,000 of assets, calculated at market value. O. Reg. 712/92, s. 4.

(10)  Subsection (8) ceases to apply to plans in respect of which an election was made under subsection (2) on the earlier of,

(a) the date of rescission with respect to the plans under subsection (12); and

(b) the valuation date of the first report filed or submitted under this Regulation in respect of one of the plans after the date on which subsection (8) began to apply to the plan that shows that the plans together have more than $500,000,000 of assets, calculated at market value, where at the time that the report is filed or submitted there are no reports required to be filed under section 14 in respect of any of the plans that have not been filed. O. Reg. 712/92, s. 4.

(11)  For the purposes of subsection (7) and clause (10) (b), a report in respect of one of the plans shows that the plans together have assets equal to, less than or more than $500,000,000, as the case may be, if the assets it shows, added to the assets shown in each of the most recent reports filed or submitted in respect of each of the other plans, are equal to, less than or more than $500,000,000, as the case may be. O. Reg. 712/92, s. 4.

(12)  An employer may at any time file a written notice of rescission of an election under subsection (1) or (2), and the rescission is effective from the date on which the written notice is filed. O. Reg. 712/92, s. 4.

(13)  No employer may elect under subsection (1) or (2) or rescind under subsection (12) in respect of a pension plan more than once. O. Reg. 712/92, s. 4.

5.2  In this section and sections 5.3 and 5.4, with respect to a plan for which the employer has filed an initial special report under subsection 5.3 (1),

“deemed annual Guarantee Fund assessment” means, for any fiscal year, the sum of,

(a) $1 per member employed in Ontario on the last day of the fiscal year, and

(b) two-tenths of 1 per cent of the special PBGF assessment base on the last day of the fiscal year; (“cotisation annuelle réputée versée au Fonds de garantie”)

“initial going concern contribution deficit” means the amount by which,

(a) the aggregate normal costs described in clause 5.3 (3) (a) and special payments described in clause 5.3 (3) (d), with interest at the going concern valuation rate for the periods beginning on their respective due dates and ending on the valuation date of the initial special report,

exceeds,

(b) the aggregate normal costs and special payments paid by the employer to a pension fund in respect of the periods covered by the initial special report, with interest at the going concern valuation rate for the periods beginning on their respective actual dates of payment and ending on the valuation date of the initial special report; (“déficit initial à long terme au titre des cotisations”)

“initial PBGF assessment deficit” means the amount by which the aggregate of the deemed annual Guarantee Fund assessments for all fiscal years covered by the initial special report exceeds the aggregate of the amounts paid by the employer to the Guarantee Fund in respect of the fiscal years covered by the initial special report; (“déficit initial au titre des cotisations au Fonds de garantie”)

“special PBGF assessment base” means the amount by which,

(a) the special PBGF liabilities,

exceed,

(b) the solvency assets multiplied by the special PBGF liabilities and divided by the special solvency liabilities; (“base spéciale de cotisation au Fonds de garantie”)

“special PBGF liabilities” means the special solvency liabilities of a pension plan that relate to the Ontario plan beneficiaries; (“passif spécial du Fonds de garantie”)

“special solvency liabilities” means the solvency liabilities of a pension plan determined in accordance with the provisions of the plan and the requirements of this Regulation as it read before the Regulation date, as if the plan had been wound up and the employer’s business completely discontinued, including,

(a) liabilities for plant closure benefits and consent benefits, and

(b) liabilities for special allowances, calculated as if the plan members and former members would receive no income from employment on and after the commencement date of the special allowance,

but excluding,

(c) liabilities for any escalated adjustment, and

(d) liabilities for prospective benefit increases. (“passif spécial de solvabilité”) O. Reg. 712/92, s. 4.

5.3  (1)  Within six months following the Regulation date, an employer with a pension plan that is a qualifying plan under section 5.1 may file an initial special report on the plan in accordance with this section instead of filing reports that were due under sections 3, 13 and 14 on or before the Regulation date and that were not filed by the Regulation date. O. Reg. 712/92, s. 4.

(2)  The initial special report shall,

(a) be prepared by an actuary;

(b) be prepared with a valuation date that precedes the Regulation date;

(c) be prepared with a valuation date that precedes the Regulation date by less than one year; and

(d) cover,

(i) the fiscal years that would have been covered by reports that were due under sections 3, 13 and 14 on or before the Regulation date and that were not filed by the Regulation date, if the requirements of this Regulation had been met, and

(ii) the fiscal year beginning with the valuation date of the initial special report. O. Reg. 712/92, s. 4.

(3)  The initial special report shall set out, on the basis of a going concern valuation,

(a) the normal cost for each year preceding the valuation date of the initial special report in respect of which a report was required under section 14 but not filed;

(b) the normal cost in the year immediately following the valuation date of the initial special report;

(c) the estimated aggregate employee contributions to the pension plan for each year preceding the valuation date of the initial special report in respect of which a report was required under section 14 but not filed and for the year immediately following the valuation date of the initial special report;

(d) the special payments in respect of going concern unfunded liabilities for each year preceding the valuation date of the initial special report in respect of which a report was required under section 14 but not filed;

(e) the present value as of the valuation date of the initial special report of special payments that are scheduled for payment after that date;

(f) where the plan provides for an escalated adjustment, whether and to what extent,

(i) the liability for the future cost of the adjustment has been included in the determination of any going concern unfunded liability, or

(ii) the cost of the escalated adjustment has been included in the normal cost;

(g) the actuarial gain or actuarial loss in the pension plan;

(h) where there is an actuarial loss, the special payments that will liquidate any increase in a going concern unfunded liability resulting from the loss over a term not exceeding fifteen years;

(i) where there is an actuarial gain, any intended application of the gain in accordance with section 7; and

(j) the initial going concern contribution deficit. O. Reg. 712/92, s. 4; O. Reg. 116/06, s. 6.

(4)  The initial special report shall also set out, on the basis of a solvency valuation,

(a) for the date at the end of each year preceding the valuation date of the initial special report for which a report under section 14 was not filed, the solvency assets, special solvency liabilities, special PBGF liabilities and special PBGF assessment base;

(b) the initial PBGF assessment deficit;

(c) the amount of the Guarantee Fund assessment referred to in subsection 37 (6);

(d) whether the transfer ratio is less than one; and

(e) if the transfer ratio is less than one, the transfer ratio. O. Reg. 712/92, s. 4.

5.4  Where an employer has filed a report under section 5.3, the employer shall, within twelve months following the Regulation date, pay the initial going concern contribution deficit to the pension fund and the initial PBGF assessment deficit to the Guarantee Fund. O. Reg. 712/92, s. 4.

funding jointly sponsored pension plans

5.5  (1)  Despite subsection 14 (10), an inter-valuation report for a jointly sponsored pension plan with a valuation date on or after December 31, 2004 and before September 30, 2005 may be filed after September 30, 2005, but not later than June 30, 2006. O. Reg. 116/06, s. 7.

(2)  Despite clauses 5 (1) (b) and (e), with respect to any going concern unfunded liability or solvency deficiency of a jointly sponsored pension plan, as determined in an inter-valuation report referred to in this section, the special payments required to liquidate the going concern unfunded liability or solvency deficiency may be paid in equal monthly payments or in accordance with subsections 5 (1.1) and (1.2), commencing not later than January 1, 2007 and ending not later than 15 years or five years later, as applicable. O. Reg. 116/06, s. 7.

(3)  In this section,

“inter-valuation report” means a report filed under section 14 in the interim period before a report with a valuation date that is three years after the last valuation date is required to be filed. O. Reg. 116/06, s. 7.

payments — multi-employer plans and defined benefit/defined contribution plans

6.  (1)  A multi-employer pension plan established pursuant to a collective agreement or trust agreement or a pension plan that provides defined benefits where the obligation of an employer to contribute to the pension plan is limited to a fixed amount set out in a collective agreement shall include a provision for the funding of pension benefits and any other benefits provided under the plan that sets out the obligation of an employer or any person required to make contributions on behalf of the employer to contribute in respect of the plan. R.R.O. 1990, Reg. 909, s. 6 (1).

(2)  An employer or any person required to make contributions on behalf of an employer with respect to a pension plan referred to in subsection (1) shall make payments to the pension fund or the insurance company, as applicable, that are not less than,

(a) any contributions received from employees including money withheld from an employee, whether by payroll deduction or otherwise as the employee’s contribution to the pension plan; and

(b) such amounts set out in the applicable collective agreement as are required to be paid by the employer or the person required to make contributions on behalf of the employer. R.R.O. 1990, Reg. 909, s. 6 (2).

(3)  The payments referred to in subsection (2) shall be made within the following time limits:

1. All sums received by the employer from an employee or deducted from an employee’s pay as the employee’s contribution to the pension plan, within thirty days after the month in which the sum was received or deducted.

2. All amounts, other than those referred to in paragraph 1, within the time limit specified by the applicable collective agreement but, in any event, within thirty days after the month in which the period of employment giving rise to such payments occurred. R.R.O. 1990, Reg. 909, s. 6 (3).

(4)  In the case of a pension plan referred to in subsection (1), the actuary shall, as part of the report required under subsection 3 (1) or section 13 or 14,

(a) perform such tests as will demonstrate the sufficiency of the contributions required by the collective agreement or agreements to provide for the benefits set out in the plan without consideration of any provision for reduction of benefits set out in the plan; or

(b) where the contributions are not sufficient to provide the benefits under the plan, propose options available to the administrator of the plan that will have the result that the require