Acts and Regulations

2017-35 - Pension Benefits Act

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NEW BRUNSWICK
REGULATION 2017-35
under the
Pension Benefits Act
(O.C. 2017-232)
Filed September 29, 2017
1Paragraph 10(2)(b) of New Brunswick Regulation 91-195 under the Pension Benefits Act is amended
(a) by repealing subparagraph (ii) and substituting the following:
(ii) the present value of any remaining special payments that are required to liquidate any experience deficiency or initial unfunded liability and are scheduled to be paid within
(A) five years after the review date of the actuarial valuation report,
(B) the extended period given by the Superintendent under subsection 36(1.1) or (1.2) in respect of a special payments schedule established under subsection 36(1.1) or (1.2),
(C) ten years after the review date of an actuarial valuation report referred to in subsection 36(1.22) in respect of a special payments schedule established under subsection 36(1.23), or
(D) ten years after the review date of an actuarial valuation report referred to in subsection 36(1.27) in respect of a special payments schedule established under subsection 36(1.28),
(b) by repealing subparagraph (iv) and substituting the following:
(iv) the present value of any other special payments established on or after the commencement of the Act that are scheduled for payment within
(A) five years after the review date of the actuarial valuation report,
(B) the extended period given by the Superintendent under subsection 36(1.1) or (1.2) in respect of a special payments schedule established under subsection 36(1.1) or (1.2),
(C) ten years after the review date of an actuarial valuation report referred to in subsection 36(1.22) in respect of a special payments schedule established under subsection 36(1.23), or
(D) ten years after the review date of an actuarial valuation report referred to in subsection 36(1.27) in respect of a special payments schedule established under subsection 36(1.28),
2Section 36 of the Regulation is amended
(a) in subsection (0.1) by striking out “subsections (1.22), (1.23) and (1.24)” and substituting “subsections (1.22), (1.23), (1.24), (1.27), (1.28) and (1.29)”;
(b) in paragraph (1)(c) by striking out “subject to subsections (1.1), (1.2), (1.23) and (5),” and substituting “subject to subsections (1.1), (1.2), (1.23), (1.28) and (5),”;
(c) by adding after subsection (1.25) the following:
36(1.26)In subsections (1.27) to (1.29), “multi-jurisdictional pension plan” means a pension plan that is subject to the Act and to the pension benefits legislation of one or more designated jurisdictions.
36(1.27)Despite subsection (8), if an administrator files an actuarial valuation report respecting a multi-jurisdictional pension plan that has a review date that is between December 31, 2016, and December 31, 2018, both dates inclusive, the administrator may request that
(a) the existing solvency deficiencies of the pension plan be consolidated, and
(b) the amount of special payments under paragraph (1)(c) be reduced by extending the period referred to in that paragraph to ten years.
36(1.28)The Superintendent shall grant a request referred to in subsection (1.27), if
(a) the administrator has not previously made a request under that subsection with respect to the multi-jurisdictional pension plan, and
(b) an actuary certifies that the assets of the pension plan are sufficient to provide for all the expected payments under the pension plan during the extended amortization period.
36(1.29)If the Superintendent grants a request referred to in subsection (1.27),
(a) the administrator shall ensure that the multi-jurisdictional pension plan is reviewed by, and an actuarial valuation report respecting the pension plan is prepared by, an actuary as of the date that is not more than 12 months after the review date of the previous report until the earlier of
(i) the review date of the actuarial valuation report that identifies that no special payments are required with respect to the consolidated existing solvency deficiencies, and
(ii) the end of the ten-year period referred to in paragraph (1.27)(b),
(b) the pension plan shall not be amended during the ten-year period referred to in paragraph (1.27)(b), if the amendment is not required under the Act, this Regulation, the pension benefits legislation of a designated jurisdiction or the Income Tax Act (Canada) unless
(i) the employer, or a person required to make contributions on behalf of the employer, contributes the full cost of the amendment to the pension plan on a solvency basis within 90 days after the amendment, or
(ii) no further special payments are required with respect to the consolidated existing solvency deficiencies,
(c) each time a statement referred to in subsection 15(1) is provided to members between the date the request was granted by the Superintendent and the end of the ten-year period referred to in paragraph (1.27)(b), both dates inclusive, it shall contain the following additional information:
(i) an explanation of why the request was made; and
(ii) a comparison of the total annual employer contributions for each of the next ten years without consolidating the existing solvency deficiencies and with consolidating the existing solvency deficiencies,
(d) the administrator shall provide to each former member and other person entitled to payments under the pension plan a copy of any statement referred to in subsection 15(1) provided in accordance with paragraph (c), modified as necessary to apply to him or her, and
(e) the administrator shall provide the Superintendent with
(i) a copy of the information referred to in paragraph (c)(i) and (ii) each time the information is provided to members, former members and other persons entitled to payments under the pension plan, and
(ii) certification of the date on which the information was provided to the members, former members and other persons entitled to payments under the pension plan.
36(1.291)If the Superintendent grants a request referred to in subsection (1.27) and a special payment was made between the review date of the actuarial valuation report in question and the date the report is filed with the Superintendent that is in an amount in excess of the amount determined for special payments over the extended amortization period, the difference between the amount of the special payment and amount determined for special payments over the extended amortization period shall not be considered an overpayment and shall not be used to further reduce the amount of special payments under subsection (1.27).
(d) in subsection (1.3) in the portion preceding paragraph (a) by striking out “subsection (1.2) or (1.22)” and substituting “subsection (1.2), (1.22) or (1.27)”.