Acts and Regulations

2012-75 - Shared Risk Plans

Section 27
Disposition versions

Full text
Interest
27(1)For the purposes of section 54 of the Act, the interest rate credited to contributions made by members to a pension fund for a shared risk plan shall be calculated for each plan year as follows:
J - K
1where
1J is the rate of return attributed to the pension fund or the part of the pension fund to which the contributions are made; and
1K is the rate that can reasonably be attributed to the expenses of administering the pension plan that are not required to be paid by the employer.
27(2)Interest on a member’s additional voluntary contributions or optional ancillary contributions shall be calculated in accordance with subsection (1).
27(3)Interest on a member’s contributions made during a plan year shall be calculated in accordance with subsection (1) and shall be credited
(a) not later than the first day of the month after the month in which the contributions are made or are required to be made, whichever occurs first, to the pension fund, or
(b) annually, not later than the first day of the month after the month in which the last day of the plan year occurs, by applying 50% of the applicable annual interest rate to the total member’s contributions made during the plan year.
27(4)The administrator shall choose one of the methods of crediting interest in accordance with paragraphs (3)(a) and (b) and shall apply that method consistently unless the plan is amended in accordance with the Act to change that method.
27(5)Not less than once in each plan year, the administrator shall credit interest on
(a) contributions for the plan year, and
(b) contributions with interest credited to contributions during any previous plan years.
27(6)If a payment or transfer is to be made from a shared risk plan, the administrator shall credit interest, calculated in accordance with subsection (7),
(a) to the contributions made by a member, with interest, from the last day of the most recent period for which interest on contributions was credited to the date of termination of employment, termination of membership, retirement or death, and
(b) to the termination value from the date of termination of employment, termination of membership, retirement or death to the date of payment or transfer, inclusive.
27(7)Unless otherwise provided for in the Act or the regulations, the administrator shall calculate interest to be credited under paragraphs (6)(a) and (b) in accordance with the following:
(L × M) / 12
7where
7L is the interest rate most recently calculated for the fund in accordance with subsection (1); and
7M is the number of months, including parts of a month, in the periods described in paragraphs (6)(a) and (b).
27(8)The rate of interest paid on money or assets to be returned under an order made by the Superintendent under the Act or an order made by the Tribunal under subsection 76(1) of the Act after a payment or transfer from a pension plan shall be the interest rate payable on a verdict or judgment under the Rules of Court, calculated from the date on which the payment or transfer to which the order relates took place to the date of compliance with the order, inclusive.
27(9)Section 43 of Regulation 91-195 does not apply to a shared risk plan.
2017-49
Interest
27(1)For the purposes of section 54 of the Act, the interest rate credited to contributions made by members to a pension fund for a shared risk plan shall be calculated for each plan year as follows:
J - K
1where
1J is the rate of return attributed to the pension fund or the part of the pension fund to which the contributions are made; and
1K is the rate that can reasonably be attributed to the expenses of administering the pension plan that are not required to be paid by the employer.
27(2)Interest on a member’s additional voluntary contributions or optional ancillary contributions shall be calculated in accordance with subsection (1).
27(3)Interest on a member’s contributions made during a plan year shall be calculated in accordance with subsection (1) and shall be credited
(a) not later than the first day of the month after the month in which the contributions are made or are required to be made, whichever occurs first, to the pension fund, or
(b) annually, not later than the first day of the month after the month in which the last day of the plan year occurs, by applying 50% of the applicable annual interest rate to the total member’s contributions made during the plan year.
27(4)The administrator shall choose one of the methods of crediting interest in accordance with paragraphs (3)(a) and (b) and shall apply that method consistently unless the plan is amended in accordance with the Act to change that method.
27(5)Not less than once in each plan year, the administrator shall credit interest on
(a) contributions for the plan year, and
(b) contributions with interest credited to contributions during any previous plan years.
27(6)If a payment or transfer is to be made from a shared risk plan, the administrator shall credit interest, calculated in accordance with subsection (7),
(a) to the contributions made by a member, with interest, from the last day of the most recent period for which interest on contributions was credited to the date of termination of employment, termination of membership, retirement or death, and
(b) to the termination value from the date of termination of employment, termination of membership, retirement or death to the date of payment or transfer, inclusive.
27(7)Unless otherwise provided for in the Act or the regulations, the administrator shall calculate interest to be credited under paragraphs (6)(a) and (b) in accordance with the following:
(L × M) / 12
7where
7L is the interest rate most recently calculated for the fund in accordance with subsection (1); and
7M is the number of months, including parts of a month, in the periods described in paragraphs (6)(a) and (b).
27(8)The rate of interest paid on money or assets to be returned under an order made by the Superintendent under the Act or an order made by the Board under subsection 76(1) of the Act after a payment or transfer from a pension plan shall be the interest rate payable on a verdict or judgment under the Rules of Court, calculated from the date on which the payment or transfer to which the order relates took place to the date of compliance with the order, inclusive.
27(9)Section 43 of Regulation 91-195 does not apply to a shared risk plan.