Pension Benefits Amendment Act, 2010 Duncan, Hon. Dwight Minister of Finance — Bill 236 (39th Parliament, 2nd Session)

Bill 236, 39-2

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Bill 236, Pension Benefits Amendment Act, 2010

Duncan, Hon. Dwight Minister of Finance

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[39] Bill 236 Royal Assent (PDF)

Bill 236 2010

An Act to amend

the Pension Benefits Act

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:

(1) The definition of "bridging

benefit" in subsection 1 (1) of the Pension Benefits Act is repealed and the

following substituted:

"bridging

benefit" means a periodic payment provided under a pension plan to a retired member

of the pension plan for a temporary period of time for the purpose of

supplementing his or her pension benefit until he or she is eligible to receive

benefits under the Old Age Security Act (Canada) or is either eligible for or

begins to receive retirement benefits under the Canada Pension Plan or the Quebec

Pension Plan; ("prestation de raccordement")

(2) The definition of "employer" in

subsection 1 (1) of the Act is repealed and the following substituted:

"employer" means, in relation to a member, former member or retired

member of a pension plan, the person or persons from whom or the organization

from which the member, former member or retired member receives or received

remuneration to which the pension plan is related, and "employed" and

"employment" have a corresponding meaning; ("employeur", "employé", "emploi")

(3) The definition of "former member"

in subsection 1 (1) of the Act is repealed and the following substituted:

"former member" means an individual who satisfies the criteria set out

section 1.1 to be a former member; ("ancien participant")

(4) The definition of "partial wind up"

in subsection 1 (1) of the Act is repealed.

(5) The definition of "pension benefit"

in subsection 1 (1) of the Act is repealed and the following substituted:

"pension benefit" means the aggregate monthly, annual or other periodic

amounts payable to a member or former member during his or her lifetime to

which he or she will become entitled under the pension plan or to which, upon

his or her death, any other person will become entitled; ("prestation de

retraite")

(6) Subsection

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

"registered retirement savings

arrangement" means a registered retirement savings plan established in accordance

with the Income Tax Act (Canada) or a registered retirement income fund

established in accordance with that Act; ("arrangement enregistré

d'épargne-retraite")

(7) Subsection

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

"retired member" means an individual

who satisfies the criteria set out in

section 1.1 to be a retired member;

("participant retraité")

2. The Act is

amended by adding the following section:

Retired members and former members

Retired member

1.1

(1) For the purposes of

this Act, an individual is a retired member of a pension plan if he or she has

either terminated the employment that relates to the pension plan or has

terminated membership in the pension plan and if one or more of the following

criteria is also satisfied:

1. The individual is receiving

a pension payable from the pension fund.

2. He or she is entitled to

begin to receive a pension from the pension fund by virtue of having reached

the normal retirement date under the pension plan, even though he or she has

not yet elected to receive the pension.

3. He or she has elected, under

subsection 41 (1), to receive an early retirement pension.

4. He or she has elected, under

the terms of the pension plan, to begin payment of a pension payable from the

pension fund, whether or not receipt of the first payment of the pension is

deferred until a later date.

Former member

(2) For the purposes

of this Act, an individual is a former member of a pension plan if he or she

has either terminated the employment that relates to the pension plan or has

terminated membership in the pension plan and if either of the following

criteria is also satisfied:

1. The individual is entitled

to a deferred pension payable from the pension fund.

2. He or she is entitled to

receive any other payment from the pension fund.

Exception

(3) Despite subsection

(2), if an individual is a retired member of a pension plan, the individual is

not a former member of the pension plan.

Neither

(4) An individual who

was a member of a pension plan and who has transferred an amount under

subsection 42 (1) in connection with the pension plan is neither a former

member nor a retired member of the pension plan.

(1) Section 8 of the Act is

amended by adding the following subsections:

Administrator

Requirement

(0.1) A pension plan must be administered by a person or entity

described in subsection (1).

Prohibition

(0.2) No person or entity other than a person or entity described in

subsection (1) shall administer a pension plan.

(2) Subsection 8 (2) of the Act is

repealed and the following substituted:

Additional representatives

(2) A pension committee, or a board of trustees, that is

the administrator of a pension plan may include one or more representatives of

retired members.

Section 9 of the Act is amended by adding

the following subsection:

Exception

(2.1) The regulations may provide that the requirement to

file a particular document listed in subsection (2) does not apply in specified

circumstances or for prescribed classes of pension plans.

(1) Section 10 of the Act is

amended by adding the following subsection:

Exception

(1.1) The regulations may provide that the requirement to

include specified information described in subsection (1) in the documents that

create and support a pension plan does not apply in specified circumstances or

for prescribed classes of pension plans.

(2) Subsection 10 (2) of the Act is

amended by striking out "shall set out" and substituting "shall also set out".

Section 11 of the Act is repealed.

Section 12 of the Act is amended by adding

the following subsection:

Exception

(2.1) The regulations may provide that the requirement to

file a particular document or information described in subsection (2) does not

apply in specified circumstances or for prescribed classes of pension plans.

8. (1) Clause 14 (1) (

c) of the

Act is repealed and the following substituted:

(

c) the amount or the commuted value of an

ancillary benefit for which a member, former member or retired member has met

all eligibility requirements under the pension plan necessary to exercise the

right to receive payment of the benefit.

(2) Section

14 of the Act is amended by adding the following subsection:

Same

(4) Subsection (1)

does not apply with respect to an amendment that relates to a transfer of

assets authorized by

section 79.1, 80, 80.1, 80.2 or 81 and that affects the

transferred members.

(3) Subsection

14 (4) of the Act, as enacted by subsection (2), is amended by striking out

"80.1".

9. The

Act is amended by adding the following section:

Gradual and

uniform accrual of pension benefits

14.1

(1) A

pension plan must provide for the accrual of pension benefits in a gradual and

uniform manner.

Variable

contributions or pension benefits

(2) A pension plan

must not provide that the formula for computation of the employer's contributions

under the pension plan or the pension benefit provided under the pension plan

is variable at the discretion of the employer.

Variable deferred

profit-sharing

(3) A deferred

profit-sharing pension plan or a pension plan that provides defined contribution

benefits must not provide that the formula governing allocation of

contributions under the pension plan and profits among members of the plan is

variable at the discretion of the employer.

Exception

(4) The Superintendent

may register a pension plan that does not comply with subsection (1), (2) or

(3), and the Superintendent may permit the continued registration of such a

plan, if the Superintendent is of the opinion that registration is justified in

the circumstances of the pension plan and the members.

(1) Section

21 of the Act is amended by adding the following subsection:

Requirements

(2) The reciprocal

transfer agreement must satisfy such requirements as may be prescribed.

(2) Section

21 of the Act is amended by adding the following subsection:

Same

(3) The administrator

shall not transfer money or credits for employment under a reciprocal transfer

agreement unless it complies with subsection (2).

11. (1) Subsection

24 (1) of the Act is amended by striking out "The members and former members of

a pension plan" at the beginning and substituting "The members and retired members

of a pension plan".

(2) Subsection

24 (1) of the Act is amended by adding at the end "in accordance with such

conditions and subject to such restrictions as may be prescribed".

(3) Subsections

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

Same

(2) If members of the

pension plan are represented by a trade union, the trade union may act on their

behalf for the purpose of establishing an advisory committee.

Representation

(3) The following

rules govern the composition of the advisory committee:

1. Each class of employees that

is represented in the pension plan is entitled to appoint at least one representative

to the advisory committee.

2. If there is only one class

of employees that is represented in the pension plan, that class is entitled to

appoint at least two representatives to the committee.

3. The retired members of the

pension plan are entitled to appoint at least two representatives to the

committee.

Same, former

members

(3.1) One or more

former members of the pension plan may be appointed as representatives on the

advisory committee.

(4) Clause

24 (4) (

c) of the Act is repealed and the following substituted:

(

c) to promote awareness and understanding of the

pension plan.

(5) Section

24 of the Act is amended by adding the following subsections:

Duties of the administrator

(4.1) Upon receiving written notice from members, a trade

union acting on their behalf, or retired members of their intent to establish

an advisory committee, and if such conditions as may be prescribed are

satisfied, the administrator shall do the following things to help them to

establish the committee:

1. Distribute the notice and

such other information as may be prescribed to the members and retired members.

2. Provide such other assistance

as may be prescribed.

Same, to assist the committee

(4.2) Once the advisory committee has been established,

the administrator has the following duties:

1. To meet with the committee

as required by the regulations.

2. To provide such assistance to the committee as may be prescribed

to help the committee carry out its purposes.

3. To give the committee or its representative such information as

is under the administrator's control and is required by the committee or the

representative for the purposes of the committee.

(6) Subsection

24 (6) of the Act is amended by striking out "or" at the end of clause (a), by

adding "or" at the end of clause (

b) and by adding the following clause:

(

c) in

respect of a jointly sponsored pension plan.

(7) Subsection

24 (7) of the Act is repealed and the following substituted:

Costs of the committee

(7) Such costs

associated with the advisory committee as may be prescribed are payable out of

the pension fund, subject to the prescribed restrictions.

12. The

Act is amended by adding the following

Document details

Collection	Ontario — Bills
Citation	Bill 236, 39-2
Type	bill
Volume / chapter	p39 s2 bill 236 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	84aedd46eea8f95ffa489810aa1cedd583fb470b

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