Securing Pension Benefits Now and for the Future Act, 2010 Duncan, Hon. Dwight Minister of Finance — Bill 120 (39th Parliament, 2nd Session)

Bill 120, 39-2

Ontario — Bills

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Bill 120, Securing Pension Benefits Now and for the Future Act, 2010

Duncan, Hon. Dwight Minister of Finance

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[39] Bill 120 Royal Assent (PDF)

Bill 120 2010

An Act to amend

the Pension Benefits Act and the Pension Benefits Amendment Act, 2010

Note:

This Act amends the Pension Benefits Act. For the legislative history of the

Act, see the Table of Consolidated Public Statutes – Detailed Legislative

History at www.e-Laws.gov.on.ca.

Her Majesty, by and with the advice

and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Pension Benefits Act

(1) The

definition of "additional voluntary contribution" in subsection 1 (1) of the Pension

Benefits Act is repealed and the following substituted:

"additional voluntary contribution"

means a contribution to the pension fund by a member of the pension plan beyond

any amount that the member is required to contribute, but does not include,

(

a) an optional contribution, or

(

b) a contribution in relation to

which the employer is required to make a concurrent additional contribution to

the pension fund; ("cotisation facultative supplémentaire")

(2) The

definition of "defined benefit" in subsection 1 (1) of the Act is repealed and

the following substituted:

"defined benefit" means a pension

benefit other than a defined contribution benefit or a target benefit;

("prestation déterminée")

(3) The

definition of "defined contribution benefit" in subsection 1 (1) of the Act is

repealed and the following substituted:

"defined contribution benefit" means

a pension benefit determined with reference to and provided by contributions

paid by or for the credit of a member, and the interest on the contributions,

and determined on an individual account basis, but does not include an optional

benefit; ("prestation à cotisation determinée")

(4) Subsection

1 (1) of the Act is amended by adding the following definition:

"normal cost" means, with respect to

a pension plan, the normal cost as determined in accordance with the regulations;

("coût normal")

(5) Subsection 1 (1) of the Act is

amended by adding the following

definitions:

"optional

benefit" means a benefit that is prescribed for the purposes of subsection 40.1

(1) as an optional benefit; ("prestation optionnelle")

"optional contribution" means a contribution to the pension fund that is

made to obtain an optional benefit under the pension plan and that is made by a

member of the pension plan beyond any amount that the member is required to

make; ("cotisation optionnelle")

(6) The definition of

"participating employer" in subsection 1 (1) of the Act is repealed and the

following substituted:

"participating

employer", in relation to a jointly sponsored pension plan or a multi-employer

pension plan, means an employer required to make contributions to the pension

fund; ("employeur participant")

(7) Subsection 1 (1) of the Act is

amended by adding the following definition:

"solvency

liabilities" means, with respect to a pension plan, solvency liabilities as

determined in accordance with the regulations; ("passif de solvabilité")

(8) Subsection 1 (1) of the Act is

amended by adding the following definition:

"target

benefit" means a pension benefit that is a target benefit as determined under

section 39.2; ("prestation cible")

(9) Section 1 of the Act is amended by

adding the following subsection:

Same, reduced funding obligations

(2.1) A pension plan that is a jointly sponsored pension

plan on August 24, 2010 continues to be a jointly sponsored pension plan after

that date even if the documents that create and support the plan are amended so

that its members are not required to make contributions in respect of any

solvency deficiency of the plan.

(10) Clause 1 (4) (

a) of the Act is

amended by adding "or the Not-for-Profit Corporations Act, 2010" after "Business

Corporations Act".

2. (1) Clause 8 (1) (

g) of the Act

is repealed and the following substituted:

(

g) a

person appointed as administrator by the Superintendent;

(g.1) the

Superintendent; or

(2) Section 8 of the Act is amended by

adding the following subsections:

Appointment, etc., by Superintendent

(1.1) The Superintendent may, in prescribed circumstances,

appoint an administrator for a pension plan and may terminate the appointment

if the Superintendent considers the termination reasonable in the

circumstances.

Superintendent as administrator

(1.2) The Superintendent may, in prescribed circumstances,

act as administrator of a pension plan.

(1) Section 10 of the Act is

amended by adding the following subsection:

Same

(2.1) The documents that create and support a

multi-employer pension plan shall specify the consequences, if any, of the

withdrawal of a participating employer from the pension plan in respect of the

funding and payment of pension benefits of a member, a former member or any

other person affected by the withdrawal and must satisfy such requirements as

may be imposed by this Act and the regulations.

(2) Subsection 10 (2.1) of the Act, as

enacted by subsection (1), is amended by striking out "of a member, a former

member" and substituting "of a member, a former member, a retired member".

(3) Paragraphs 1 and 2 of subsection 10

(3) of the Act are repealed and the following substituted:

1. The

obligation of members to make contributions under the plan. This must include

their obligations in respect of any going concern unfunded liability and,

except in the case of plans described in subsection 1 (2.1), in respect of any

solvency deficiency.

2. The

obligation of employers to make contributions under the plan or the obligation

of other persons or entities to make the contributions under the plan on behalf

of employers. This must include their obligations in respect of any going

concern unfunded liability and, except in the case of plans described in

subsection 1 (2.1), in respect of any solvency deficiency.

(4) Subsection 10 (3) of the Act is

amended by adding the following paragraph:

3. The

consequences, if any, of the withdrawal of a participating employer from the

plan in respect of the funding and payment of pension benefits of a member, a

former member or any other person affected by the withdrawal. The consequences

set out in the pension plan must satisfy such requirements as may be imposed by

this Act and the regulations.

(5) Paragraph 3 of subsection 10 (3) of

the Act, as enacted by subsection (4), is amended by striking out "of a member,

a former member" and substituting "of a member, a former member, a retired

member".

(1) Section 14 of the Act is

amended by adding the following subsection:

Same, target

benefits

(3.1) Subsection (1) does not apply in respect of a pension

plan that provides only target benefits or in respect of that part of a pension

plan that provides target benefits.

(2) Subsection 14 (4) of the

Act is amended by striking out "80.2 or 81" and substituting "80.2, 80.3 or

81".

5. The Act is amended by adding the following

section:

Improvement in benefits

14.0.1

(1) An

amendment to a pension plan is void,

(

a) if

the amendment purports to increase an amount described in clause 14 (1) (a),

(

b) or (c); and

(

b) if

the increase would reduce the transfer ratio or the going concern funded ratio

of the pension plan, determined in accordance with the regulations, below the

prescribed level.

Exceptions

(2) Subsection (1) does not apply if an amendment is

required as a result of a judicial decision or in such other circumstances as

may be prescribed.

6. Subsection 18 (1) of the Act is amended by

adding the following clauses:

(

f) refuse

to register part of an amendment to a pension plan if the

part is void or if

the pension plan with that part of the amendment would cease to comply with

this Act and the regulations;

(

g) revoke

the registration of a part of an amendment that does not comply with this Act

and the regulations.

7. Subsections 22 (9), (10) and (11) of the

Act are repealed and the following substituted:

Benefits of administrator

(9) The administrator of a pension plan is not entitled to

any benefit from the pension plan other than pension benefits, ancillary

benefits and a refund of contributions.

Benefits of members of pension committee, etc.

(10) Subsection (9) applies, with necessary modifications,

to a member of a pension committee or board of trustees that is the

administrator of a pension plan and to a member of a board, agency or

commission made responsible by

an Act for the administration of a pension plan.

(1) The Act is amended by

adding the following section:

Payment of administrative fees and expenses

22.1

(1) The

administrator of a pension plan is entitled to be paid from the pension fund

the administrator's reasonable fees and expenses relating to the administration

of the pension plan and the administration and investment of the pension fund.

Exception

(2) However, the administrator is not entitled to be paid

from the pension fund any fees and expenses relating to the administration of

the pension plan or the administration and investment of the pension fund,

(

a) if

payment to the administrator is prohibited, or payment of the fees and expenses

is otherwise provided for, under the documents that create and support the

pension plan or the pension fund; or

(

b) if

payment to the administrator is prohibited, or payment of those fees and

expenses is otherwise provided for, under the Act or regulations.

Same, members of pension committee, etc.

(3) Subsections (1) and (2) apply, with necessary

modifications, to a member of a pension committee or board of trustees that is

the administrator of a pension plan and to a member of a board, agency or

commission made responsible by

an Act for the administration of a pension plan.

Fees and expenses of agent, etc.

(4) The administrator of a pension plan may pay from the

pension fund to an agent of the administrator, to the employer or to any other

person who provides services relating to the administration of the pension plan

or the administration and investment of the pension fund the reasonable fees

and expenses of the agent, employer or other person.

Exception

(5) However, the administrator is not permitted to pay

from the pension fund to an agent, employer or other person described in

subsection (4) the fees and expenses relating to the administration of the

pension plan or the administration and investment of the pension fund,

(

a) if

payment to the agent, employer or other person is prohibited, or payment of the

fees and expenses is otherwise provided for, under the documents that create

and support the pension plan or the pension fund; or

(

b) if

payment to the agent, employer or other person is prohibited, or payment of

those fees and expenses is otherwise provided for, under the Act or regulations.

(2) Section 22.1 of the Act, as enacted

by subsection (1), is amended by adding the following subsections:

Fees and expenses

of appointed administrator

(6) If the

Superintendent appoints an administrator under subsection 8 (1.1), the

appointed administrator is entitled to be paid, from the pension fund, the

appointed administrator's reasonable fees and expenses relating to the

administration of the pension plan and the administration and investment of the

pension fund.

Expenses of Superintendent

(7) If the Superintendent acts as administrator under

subsection 8 (1.2), the Superintendent is entitled to be paid, from the pension

fund, his or her reasonable expenses relating to the administration of the

pension plan and the administration and investment of the pension fund.

9. Subsection 26 (5) of th

Document details

Collection	Ontario — Bills
Citation	Bill 120, 39-2
Type	bill
Volume / chapter	p39 s2 bill 120 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	2098f0ed40fd6b23bc96e8c8f45ae4346b2af17a

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