Acts and Regulations

2012-75 - Shared Risk Plans

Section 20
Disposition versions

Full text
Disclosure of information
20(1)The administrator shall disclose information concerning a shared risk plan and its benefits to the following persons:
(a) a person when he or she becomes eligible to be a member of a shared risk plan;
(b) a member or former member on termination of employment, termination of membership or retirement; and
(c) the spouse or common-law partner of a member or former member on the death of the member or former member.
20(2)The information referred to in subsection (1) shall include the following:
(a) a clear, plain language statement that the contributions are limited to those allowed under the funding policy, that base benefits of members and former members and ancillary benefits of members and former members may be reduced if the assets of the pension fund are insufficient to pay the benefits and that the reduction may apply to past base benefits, future base benefits, past ancillary benefits and future ancillary benefits;
(b) the most recently calculated open group funded ratio and termination value funded ratio;
(c) a summary of the benefits under the shared risk plan;
(d) factors that would be used by the administrator in reducing or increasing benefits; and
(e) if assets are transferred out of the shared risk plan in accordance with a portability option, the rules governing the calculation of the termination value.
20(3)On the conversion of a defined benefit plan to a shared risk plan, the administrator shall disclose the following information to the members and former members of the defined benefit plan:
(a) the benefits provided under the defined benefit plan;
(b) information regarding the conversion of benefits for service rendered on or before the conversion date to benefits under the shared risk plan; and
(c) information regarding how member benefits will be calculated on the termination of employment, termination of membership or death of a member or former member or the death of the spouse or common-law partner of a member or former member.
20(4)Within 12 months after the review date of each actuarial valuation report prepared for the shared risk plan, the administrator shall disclose the following information to the employer or employers, the members, the former members and the trade union that represents the members :
(a) the open group funded ratio and the termination value funded ratio;
(b) the investment performance of the pension fund;
(c) the funding policy liabilities;
(d) the results of the testing performed using the asset liability model, including the probabilities associated with the risk management goals;
(e) the administrator’s assessment of the need to reduce benefits or the opportunity to increase benefits, including a description of the risk factors affecting the plan;
(f) a summary of the funding policy; and
(g) a description of how member benefits would be calculated if the plan were terminated.
20(5)If the Superintendent issues guidelines under subsection 100.8(1) of the Act, the administrator shall disclose the results of any tests required by the guidelines to the Superintendent at the same time as the results referred to in paragraph (4)(d) are disclosed.
20(6)Disclosure of information under this section shall be in writing and electronic disclosure is permitted.
20(7)Paragraphs 15(1)(j), (k) and (n), 16(1)(g) and 16(3)(g), subparagraph 16(4)(b)(iii) and section 18 of Regulation 91-195 do not apply to a shared risk plan.