British Columbia Gazette Part II — B.C. Reg. 135/2012
B.C. Reg. 135/2012
British Columbia — Gazette
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Volume 55, No. 13
135/2012
The British Columbia Gazette,
Part II
July 3, 2012
B.C. Reg. 135/2012 , deposited June 25, 2012, pursuant to the PENSION BENEFITS STANDARDS ACT [section 74 (2) and (4.2)]. Order in Council 458/2012, approved and ordered June 22, 2012.
On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that, effective September 1, 2012, the Pension Benefits Standards Regulation, B.C. Reg. 433/93, is amended as set out in the attached Appendix.
— K. FALCON, Minister of Finance and Deputy Premier ; T. LAKE, Presiding Member of the Executive Council .
Appendix
Section 3 of the Pension Benefits Standards Regulation, B.C. Reg. 433/93, is amended by adding the following subsection:
(15) The following are exempt from the provisions of the Act and this regulation as set out in
Schedule 1.2 in respect of a defined benefit provision of the Catalyst Paper Corporation Retirement Plan for Salaried Employees, with the registration number P085400-1, to the extent and on the conditions specified in that Schedule:
(
a) the Catalyst Paper Corporation Retirement Plan for Salaried Employees, with the registration number P085400-1;
(
b) the employer who, under the Act, is required to make contributions to the plan referred to in paragraph (a);
(
c) members and former members of the plan referred to in paragraph (a).
2 The following
Schedule is added:
Schedule 1.2
(section 3 (15) )
Definitions
1 In this Schedule:
"2012 actuarial valuation report" means the actuarial valuation report referred to in
section 6 (a);
"employer" means the employer who, under the Act, is required to make contributions to the plan;
"former member" means a former member under a defined benefit provision of the plan;
"member" means a member under a defined benefit provision of the plan;
"plan" means the Catalyst Paper Corporation Retirement Plan for Salaried Employees, with the registration number P085400-1;
"special portability election" means an election contemplated by
section 6 (b) (
i) or (iii), as applicable;
"transfer" means a transfer in respect of a person who makes a special portability election, in the amount of the product of the commuted value of that person's benefits under a defined benefit provision of the plan as at December 31, 2012 and the solvency ratio of the plan as identified in the 2012 actuarial valuation report.
Application of exemptions
2 The exemptions made under sections 3 to 5
(
a) are made on all of the conditions set out in
section 6, and
(
b) apply only to the extent to which they are necessary for a member, former member or a surviving spouse of a deceased former member to make, and for the plan to give effect to, a special portability election.
Exemption of employer
3 The employer is exempt from
section 59 (1) (
a) of the Act.
Exemption of members and former members
4 Members and former members who make a special portability election are exempt from the following:
(a)
section 30 (1) (
b) of the Act;
(
b) the prohibition in
section 63 (1) (
a) of the Act against assigning, charging, alienating or anticipating benefits;
(c)
section 63 (2) of the Act to the extent that it would render an assignment, charge, alienation or anticipation of benefits void;
(d)
section 63 (4) and (5) of the Act.
Exemption of plan
5 The plan is exempt from the following:
(a) sections 30 (1) (
b) and (3), 32 (1), (2) and (3) and 63 (4) and (5) of the Act;
(b) sections 12 (1) (t), 15 (1) (f.1) and 25 (7) and (9) of this regulation.
Conditions of exemptions
6 The conditions on which the exemptions in sections 3 to 5 are made are as follows:
(
a) the administrator files with the superintendent, on or before April 30, 2013, an actuarial valuation report concerning the plan with a review date of December 31, 2012;
(
b) the employer amends the plan to provide for the following:
(
i) a former member or a surviving spouse of a deceased former member who has a present or future entitlement to benefits under a defined benefit provision of the plan may elect in writing for the plan to make a transfer, as a full and final settlement of those benefits, in an amount equal to the product of
(
A) the commuted value of the benefits as at December 31, 2012, and
(
B) the solvency ratio of the plan as identified in the 2012 actuarial valuation report;
(ii) the amount received by a former member or a surviving spouse of a deceased former member under subparagraph (
i) must be transferred in accordance with
section 33 (2) and (2.1) of the Act in the manner and to the extent prescribed under
section 33 (1) of the Act, as if
section 33 (1) (
a) and (
b) of the Act applied;
(iii) a member who is entitled to benefits under a defined benefit provision of the plan may elect in writing for the plan to make a transfer, as a full and final settlement of those benefits, to the credit of the member under the defined contribution provision of the plan, in an amount equal to the product of
(
A) the commuted value of the benefits under a defined benefit provision of the plan as at December 31, 2012, and
(
B) the solvency ratio of the plan as identified in the 2012 actuarial valuation report;
(iv) a person who makes a special portability election as contemplated by subparagraph (
i) or (iii) may, within 30 days of receiving the information set out in
section 8, rescind the election in writing and on the receipt of the rescission by the administrator, the person continues to be entitled to benefits under a defined benefit provision of the plan;
(
v) if a member or a former member has a spouse or former spouse who is entitled to a benefit that would be affected by a special portability election by the member or former member, the member or former member must obtain the written consent of the spouse or former spouse, in Form 7 of
Schedule 2 of this regulation, before the employer may give effect to the special portability election;
(vi) if a former member dies after making a special portability election but before the transfer in respect of that person is made, the transfer must instead be made to the surviving spouse of the former member or, if there is no surviving spouse, to the designated beneficiary of the former member or to the personal representative of the estate of the former member in his or her representative capacity if there is no valid designation of beneficiary;
(vii) if the surviving spouse of a deceased former member dies after making a special portability election but before the transfer in respect of that person is made, the transfer must instead be made to the spouse's designated beneficiary or, if there is no beneficiary living, to the spouse's estate;
(
c) that a member, former member or a surviving spouse of a deceased former member who makes an election referred to in paragraph (b) (
i) or (iii) includes in the election an acknowledgement in writing that the election is made as a full and final settlement of his or her benefits;
(
d) the employer enters into a contract with every member, former member or surviving spouse of a deceased former member who makes a special portability election, on or before the date a transfer is made in respect of that person, to pay to that person, or, if the member or former member dies after entering into the contract, to pay to the surviving spouse, if any, of the member or former member, an aggregate amount equal to 8% of the commuted value of the person's benefits, determined as at December 31, 2012, in equal payments made at least quarterly, beginning July 1, 2013 and ending on April 1, 2017;
(
e) on or before October 31, 2012, the administrator provides to members, former members and surviving spouses of deceased former members the information set out in
section 7;
(
f) within 30 days of filing the 2012 actuarial valuation report, the administrator provides to members, former members and surviving spouses of deceased former members who have made a special portability election the information set out in
section 8;
(
g) within 30 days of receiving the information set out in
section 8, a member or former member who has a spouse or former spouse who is entitled to a benefit that would be affected by a special portability election by the member or former member, the member or former member obtains, and the administrator receives, the written consent of the spouse or former spouse, in Form 7 of
Schedule 2 of this regulation;
(
h) the employer pays for advice to a person who is eligible to make a special portability election by a Fellow of the Canadian Institute of Actuaries or a Certified Financial Planner selected by the administrator in consultation with the Catalyst-TimberWest Retired Salaried Employees Association.
Information administrator must provide by October 31, 2012
7 The administrator must provide the following information to members, former members and surviving spouses of deceased former members on or before October 31, 2012:
(
a) an estimate, as of December 31, 2012, of the information referred to in
section 12 (1) (o) (
i) and (ii), (
p) and (t) (ii) of this regulation;
(
b) the information referred to in
section 12 (1) (l), (m), (r), (
s) and (
u) of this regulation;
(
c) the date on which the transfer is expected to be made;
(
d) a statement that
(
i) if the person does not make a special portability election, the person's entitlement to benefits under the plan are not reduced,
(ii) a person who makes a special portability election does so as a full and final settlement of the person's entitlements to benefits under a defined benefit provision of the plan,
(iii) a person who makes a special portability election is not entitled to any further benefits under a defined benefit provision of the plan,
(iv) that the information provided as an estimate of the information required by
section 12 (1) (o) (
i) and (ii), (
p) and (t) (ii) of this regulation is only an estimate and that the amount of the transfer will be determined based on the 2012 actuarial valuation report, and
(
v) the person may rescind the special portability election as set out in the amendment to the plan contemplated by
section 6 (b) (iv);
(
e) any other information that, in the administrator's opinion, is required to provide the person with full, true and plain disclosure in relation to making an election;
(
f) any other information required by the superintendent.
Information administrator must provide after actuarial valuation report
8 The administrator must provide, within 30 days of filing the 2012 actuarial valuation report, to members, former members and surviving spouses of deceased former members who have made a special portability election
(
a) the data referred to in
section 10 (1) (
g) of the Act, and
(
b) a statement, as of December 31, 2012, of the information referred to in
section 12 (1) (l), (m), (o) (
i) and (ii), (
p) and (t) (ii) of this regulation.
3 The following form is added to
Schedule 2:
Form 7
(section 6 (b) (
v) and (
h) of
Schedule 1.2 )
Spouse's or Former Spouse's Consent To a Reduction of Locked-in Pension Funds from the Catalyst Paper Corporation Retirement Plan for Salaried Employees, with the registration number of P085400-1 ("the Plan")
1 I, ............................................................................................................................, am the "spouse" or "former spouse" of (full name) ................................................................................., who is a member or former member of a pension plan regulated by the Pension Benefits Standards Act of British Columbia.
2 Being the member or former member's "spouse" means that (check one)
☐ I am married to the member or former member, and have not been living separate and apart from that person for the preceding two years.
☐ I have been living with the member or former member, in a marriage-like relationship, for the preceding 2 years. [ Note: This includes being in a marriage-like relationship between persons of the same gender. ]
3 Being the member or former member's "former spouse" means that
☐ I was previously the member or former member's "spouse" under paragraph 2, and I am entitled to a benefit from the Plan that is affected by a special portability election by the member or former member of the Plan.
☐ I am a person designated as a limited member of a local plan under
section 72 (1) of the Family Relations Act whose entitlement to a benefit from the Plan is affected by a special portability election by the member or former member of the Plan.
4 I understand that my spouse or former spouse wishes to make a special portability election under the Catalyst Paper Corporation Retirement Plan for Salaried Employees, with the registration number P085400-1, or to a renamed plan with the same registration number, in accordance with
Schedule 1.2 of this regulation, and that my written consent is required to enable my spouse to do so.
5 I understand that
(
a) the amount transferred and the corresponding contractual payments referred to in
section 6 (b) (
i) and (iii) of
Schedule 1.2 are less than the benefits promised under the terms of the Plan,
(
b) the amount transferred and the corresponding contractual payments referred to in
section 6 (b) (
i) and (iii) of
Schedule 1.2 are made as a full and final settlement of my spouse's or former spouse's claims under the Plan,
(
c) if my spouse or former spouse wishes to make this transfer to a Life Income Fund, my written consent in Form 3 of
Schedule 2 of this regulation is also required to enable my spouse or former spouse to do so.
6 Nevertheless, I consent to the special portability election, and certify that
(
a) I have read this form and understand it,
(
b) neither my spouse or former spouse nor anyone else has put any pressure on me to sign this form,
(
c) my spouse or former spouse is not present while I am signing this form,
(
d) I realize that
(
i) this form only gives a general description of the legal rights I have under the Pension Benefits Standards Act and the regulations, and
(ii) if I wish to understand exactly what my legal rights are I must read the Pension Benefits Standards Act and regulations, and/or seek legal advice, and
(
e) I realize that I am entitled to a copy of this consent form.
7 To consent to the transfer, I sign this consent form at .................................................[ city ], ........................................................ [ province ], on .................................[ date ]
............................................................................ Signature of Spouse or Former Spouse
............................................................................
............................................................................
............................................................................
Address of Spouse or Former Spouse
(home telephone number): ............................................
(work telephone number): .............................................
STATEMENT OF WITNESS
I certify that
(
a) My full name is ............................................................................................
(
b) My address is ...............................................................................................
(
c) I witnessed this spouse or former spouse sign this consent in the absence of his/her spouse or former spouse.
............................................................. .................................[ date ] Signature of Witness
(home telephone number): ....................................
(work telephone number): .....................................
Comments and Instructions
This form must be completed where a member or former member is eligible and wishes to make a special portability election under the Catalyst Paper Corporation Retirement Plan for Salaried Employees, with the registration number P085400-1, or to a renamed plan with the same registration number in accordance with
Schedule 1.2 of the regulations under the Pension Benefits Standards Act of British Columbia.
The form must be
• completed in its entirety,
• signed by the spouse or former spouse outside of the immediate presence of the member or former member and witnessed independently prior to the transfer, and
• filed with the pension plan administrator.
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