Acts and Regulations

91-195 - General

Section 19
Disposition versions

Full text
Transfer of commuted value of a deferred pension
19(1)This section applies to the transfer of the commuted value of a deferred pension under a pension plan or under paragraph 36(1)(a) or subsection 36(1.1) or (8) of the Act and, with the necessary modifications or where specifically indicated, to a purchase of a life or deferred life annuity under the Act.
19(2)A defined contribution plan is a class of pension plan to which subsection 36(3) of the Act does not apply.
19(3)Members of a pension plan referred to in subsection 26(1) of the Act who
(a) terminate employment or otherwise cease to be members of the plan,
(b) desire to exercise any rights under subsection 36(1) or (1.1) of the Act, and
(c) deliver a written direction to that effect to the administrator before the date of termination or cessation,
are a class of employees to whom subsection 26(1) of the Act does not apply.
19(4)Subject to subsection (5) and except as provided for under subsection 35(7) of the Act and under section 29 and subsection 49(6), the commuted value of a pension benefit, including an ancillary benefit referred to in subsection 32(2) of the Act, shall not be less than
(a) in respect of a transfer before July 1, 1994 of a pension benefit payable from the pension fund, the value determined in accordance with the Recommendations for the Minimum Transfer Values of Deferred Pensions adopted by the Canadian Institute of Actuaries and effective on November 14, 1988,
(a.1) in respect of a transfer from July 1, 1994, to July 31, 2005, both dates inclusive, of a pension benefit payable from the pension fund, the value determined in accordance with the Recommendations for the Computation of Transfer Values from Registered Pension Plans adopted by the Canadian Institute of Actuaries and effective on September 1, 1993,
(a.2) in respect of a transfer from August 1, 2005, to March 31, 2009, both dates inclusive, of a pension benefit payable from the pension fund, the value determined in accordance with the Standard of Practice for Determining Pension Commuted Values adopted by the Canadian Institute of Actuaries and effective on February 1, 2005,
(a.3) in respect of a transfer on or after April 1, 2009, of a pension benefit payable from the pension fund, the value determined in accordance with the Standards of Practice - Practice Specific Standards for Pension Plans adopted by the Canadian Institute of Actuaries and effective on April 1, 2009, as amended from time to time,
(b) in respect of a purchase of a life or deferred life annuity, the amount required to purchase the benefit from a financial institution that offers life or deferred life annuities conforming to section 23, or
(c) in respect of a wind-up that is effective after January 31, 2001, if subsection 50(1) does not apply, the greater of
(i) the value determined under paragraph (a.1), (a.2) or (a.3), as the case may be, and
(ii) the going concern liabilities of the accrued pension benefit.
(d) Repealed: 2005-153
19(5)If the Superintendent establishes or approves a method for determining the commuted value of a pension benefit that is different from the method established under paragraph (4)(a), (a.1), (a.2), (a.3) or (b), the value determined by the method established or approved by the Superintendent shall prevail.
19(6)The administrator of a pension plan shall, at least thirty days before using any basis for determining the commuted value of a pension benefit under subsection (4), file with the Superintendent a document setting out the basis, the assumptions relative to the basis and any other information concerning the basis that the Superintendent requires.
19(7)Subject to subsection (8), an administrator of a pension plan who has reason to believe that the transfer ratio of the plan
(a) has been reduced by more than ten per cent since the review date of the most recently filed actuarial valuation report, or
(b) would be reduced by more than ten per cent should a transfer take place because the commuted value of the pension benefit to be transferred is greater than the value determined under paragraph (4)(a), (a.1), (a.2) or (a.3), as the case may be,
shall not transfer the transfer value or the commuted value of a pension benefit until a new transfer ratio has been determined by an actuary and the transfer is carried out under subsection (10) or (11) or until the transfer has been approved by the Superintendent under section 37 of the Act.
19(8)Subsection (7) does not apply to an administrator who has filed a substitute actuarial valuation report under subsection 9(3) and who proposes to transfer the commuted value of a pension benefit between the date of filing the substitute report and the date as of which the first actuarial valuation report subsequent to the substitute report is filed, inclusive.
19(9)If an administrator of a pension plan who has filed a substitute actuarial valuation report under subsection 9(3) transfers the commuted value of a pension benefit in the period described in subsection (8) and it is subsequently determined that the transfer ratio of the plan is less than one at the time of the review date of the first actuarial valuation report performed subsequent to the substitute report, the employer shall make a contribution in accordance with subsection 35(3) to the pension fund that is equal to the difference obtained by deducting the product of the total of the amounts transferred during the period and the transfer ratio from the total of the amounts transferred during the period.
19(10)Subject to subsections (7) and (11), an administrator of a pension plan who is given a direction to transfer the commuted value of a pension benefit under the plan or the Act or who has required a member to request a transfer under subsection 36(8) of the Act shall transfer the transfer value of the benefit.
19(11)If the transfer ratio of a pension plan is less than one, the administrator may transfer the transfer value of the benefit under subsection (10) but shall not transfer the commuted value of the benefit unless
(a) the administrator is satisfied that an amount equal to the transfer deficiency relative to the transfer has been remitted by the employer to the pension fund, or
(b) the transfer deficiency relative to the transfer is less than five per cent of the Year’s Maximum Pensionable Earnings for the calendar year and the total of transfer deficiencies relative to all transfers made since the last review date of the most recently filed actuarial valuation report does not exceed five per cent of the transfer assets of the plan as of the date of the request for the transfer.
19(12)If a portion of the commuted value of a pension benefit is transferred in the initial transfer, the administrator shall transfer the balance, including interest on the balance calculated at the interest rate provided for under subsection (13), (13.1), (13.2) or (13.3), as the case may be, within five years after the date of the initial transfer.
19(13)Where the initial transfer referred to in subsection (12) is made before July 1, 1994, the interest rate used in a calculation under subsection (12) is the month-end value of
(a) for non-indexed pension benefits, the nominal rate of interest on long-term Government of Canada bonds, CANSIM series B14013, in the second calendar month preceding the month in which the event to which the calculation relates occurs, rounded up to the next multiple of one-half per cent, or
(b) for indexed pension benefits, the typical chartered bank five-year nominal mortgage rate, CANSIM series B14051, in the second calendar month preceding the month in which the event to which the calculation relates occurs, less one-half per cent.
19(13.1)Where the initial transfer referred to in subsection (12) is made from July 1, 1994, to July 31, 2005, both dates inclusive, the interest rate used in a calculation under subsection (12) is the interest rate known as the “nominal rate” in the Recommendations for the Computation of Transfer Values from Registered Pension Plans adopted by the Canadian Institute of Actuaries and effective on September 1, 1993.
19(13.2)Where the initial transfer referred to in subsection (12) is made from August 1, 2005, to March 31, 2009, both dates inclusive, the interest rate used in a calculation under subsection (12) shall be the interest rate applicable for the month in which the initial transfer amount was determined, in accordance with the standards for the computation of the commuted value of non-indexed pensions in the Standard of Practice for Determining Pension Commuted Values adopted by the Canadian Institute of Actuaries and effective on February 1, 2005.
19(13.3)When the initial transfer referred to in subsection (12) is made on or after April 1, 2009, the interest rate used in a calculation under subsection (12) shall be the interest rate applicable for the month in which the initial transfer amount was determined, in accordance with the standards for the computation of the commuted value of non-indexed pensions in the Standards of Practice - Practice Specific Standards for Pension Plans adopted by the Canadian Institute of Actuaries and effective on April 1, 2009, as amended from time to time.
19(14)This section applies to any subsequent transfers under subsection (12).
94-78; 2001-1; 2002, c.12, s.32; 2005-102; 2005-153; 2009-42; 2015-59
Transfer of commuted value of a deferred pension
19(1)This section applies to the transfer of the commuted value of a deferred pension under a pension plan or under paragraph 36(1)(a) or subsection 36(1.1) or (8) of the Act and, with the necessary modifications or where specifically indicated, to a purchase of a life or deferred life annuity under the Act.
19(2)A defined contribution plan is a class of pension plan to which subsection 36(3) of the Act does not apply.
19(3)Members of a pension plan referred to in subsection 26(1) of the Act who
(a) terminate employment or otherwise cease to be members of the plan,
(b) desire to exercise any rights under subsection 36(1) or (1.1) of the Act, and
(c) deliver a written direction to that effect to the administrator before the date of termination or cessation,
are a class of employees to whom subsection 26(1) of the Act does not apply.
19(4)Subject to subsection (5) and except as provided for under subsection 35(7) of the Act and under section 29 and subsection 49(6), the commuted value of a pension benefit, including an ancillary benefit referred to in subsection 32(2) of the Act, shall not be less than
(a) in respect of a transfer before July 1, 1994 of a pension benefit payable from the pension fund, the value determined in accordance with the Recommendations for the Minimum Transfer Values of Deferred Pensions adopted by the Canadian Institute of Actuaries and effective on November 14, 1988,
(a.1) in respect of a transfer from July 1, 1994, to July 31, 2005, both dates inclusive, of a pension benefit payable from the pension fund, the value determined in accordance with the Recommendations for the Computation of Transfer Values from Registered Pension Plans adopted by the Canadian Institute of Actuaries and effective on September 1, 1993,
(a.2) in respect of a transfer from August 1, 2005, to March 31, 2009, both dates inclusive, of a pension benefit payable from the pension fund, the value determined in accordance with the Standard of Practice for Determining Pension Commuted Values adopted by the Canadian Institute of Actuaries and effective on February 1, 2005,
(a.3) in respect of a transfer on or after April 1, 2009, of a pension benefit payable from the pension fund, the value determined in accordance with the Standards of Practice - Practice Specific Standards for Pension Plans adopted by the Canadian Institute of Actuaries and effective on April 1, 2009,
(b) in respect of a purchase of a life or deferred life annuity, the amount required to purchase the benefit from a financial institution that offers life or deferred life annuities conforming to section 23, or
(c) in respect of a wind-up that is effective after January 31, 2001, if subsection 50(1) does not apply, the greater of
(i) the value determined under paragraph (a.1), (a.2) or (a.3), as the case may be, and
(ii) the going concern liabilities of the accrued pension benefit.
(d) Repealed: 2005-153
19(5)If the Superintendent establishes or approves a method for determining the commuted value of a pension benefit that is different from the method established under paragraph (4)(a), (a.1), (a.2), (a.3) or (b), the value determined by the method established or approved by the Superintendent shall prevail.
19(6)The administrator of a pension plan shall, at least thirty days before using any basis for determining the commuted value of a pension benefit under subsection (4), file with the Superintendent a document setting out the basis, the assumptions relative to the basis and any other information concerning the basis that the Superintendent requires.
19(7)Subject to subsection (8), an administrator of a pension plan who has reason to believe that the transfer ratio of the plan
(a) has been reduced by more than ten per cent since the review date of the most recently filed actuarial valuation report, or
(b) would be reduced by more than ten per cent should a transfer take place because the commuted value of the pension benefit to be transferred is greater than the value determined under paragraph (4)(a), (a.1), (a.2) or (a.3), as the case may be,
shall not transfer the transfer value or the commuted value of a pension benefit until a new transfer ratio has been determined by an actuary and the transfer is carried out under subsection (10) or (11) or until the transfer has been approved by the Superintendent under section 37 of the Act.
19(8)Subsection (7) does not apply to an administrator who has filed a substitute actuarial valuation report under subsection 9(3) and who proposes to transfer the commuted value of a pension benefit between the date of filing the substitute report and the date as of which the first actuarial valuation report subsequent to the substitute report is filed, inclusive.
19(9)If an administrator of a pension plan who has filed a substitute actuarial valuation report under subsection 9(3) transfers the commuted value of a pension benefit in the period described in subsection (8) and it is subsequently determined that the transfer ratio of the plan is less than one at the time of the review date of the first actuarial valuation report performed subsequent to the substitute report, the employer shall make a contribution in accordance with subsection 35(3) to the pension fund that is equal to the difference obtained by deducting the product of the total of the amounts transferred during the period and the transfer ratio from the total of the amounts transferred during the period.
19(10)Subject to subsections (7) and (11), an administrator of a pension plan who is given a direction to transfer the commuted value of a pension benefit under the plan or the Act or who has required a member to request a transfer under subsection 36(8) of the Act shall transfer the transfer value of the benefit.
19(11)If the transfer ratio of a pension plan is less than one, the administrator may transfer the transfer value of the benefit under subsection (10) but shall not transfer the commuted value of the benefit unless
(a) the administrator is satisfied that an amount equal to the transfer deficiency relative to the transfer has been remitted by the employer to the pension fund, or
(b) the transfer deficiency relative to the transfer is less than five per cent of the Year’s Maximum Pensionable Earnings for the calendar year and the total of transfer deficiencies relative to all transfers made since the last review date of the most recently filed actuarial valuation report does not exceed five per cent of the transfer assets of the plan as of the date of the request for the transfer.
19(12)If a portion of the commuted value of a pension benefit is transferred in the initial transfer, the administrator shall transfer the balance, including interest on the balance calculated at the interest rate provided for under subsection (13), (13.1), (13.2) or (13.3), as the case may be, within five years after the date of the initial transfer.
19(13)Where the initial transfer referred to in subsection (12) is made before July 1, 1994, the interest rate used in a calculation under subsection (12) is the month-end value of
(a) for non-indexed pension benefits, the nominal rate of interest on long-term Government of Canada bonds, CANSIM series B14013, in the second calendar month preceding the month in which the event to which the calculation relates occurs, rounded up to the next multiple of one-half per cent, or
(b) for indexed pension benefits, the typical chartered bank five-year nominal mortgage rate, CANSIM series B14051, in the second calendar month preceding the month in which the event to which the calculation relates occurs, less one-half per cent.
19(13.1)Where the initial transfer referred to in subsection (12) is made from July 1, 1994, to July 31, 2005, both dates inclusive, the interest rate used in a calculation under subsection (12) is the interest rate known as the “nominal rate” in the Recommendations for the Computation of Transfer Values from Registered Pension Plans adopted by the Canadian Institute of Actuaries and effective on September 1, 1993.
19(13.2)Where the initial transfer referred to in subsection (12) is made from August 1, 2005, to March 31, 2009, both dates inclusive, the interest rate used in a calculation under subsection (12) shall be the interest rate applicable for the month in which the initial transfer amount was determined, in accordance with the standards for the computation of the commuted value of non-indexed pensions in the Standard of Practice for Determining Pension Commuted Values adopted by the Canadian Institute of Actuaries and effective on February 1, 2005.
19(13.3)When the initial transfer referred to in subsection (12) is made on or after April 1, 2009, the interest rate used in a calculation under subsection (12) shall be the interest rate applicable for the month in which the initial transfer amount was determined, in accordance with the standards for the computation of the commuted value of non-indexed pensions in the Standards of Practice - Practice Specific Standards for Pension Plans adopted by the Canadian Institute of Actuaries and effective on April 1, 2009.
19(14)This section applies to any subsequent transfers under subsection (12).
94-78; 2001-1; 2002, c.12, s.32; 2005-102; 2005-153; 2009-42
Transfer of commuted value of a deferred pension
19(1)This section applies to the transfer of the commuted value of a deferred pension under a pension plan or under paragraph 36(1)(a) or subsection 36(1.1) or (8) of the Act and, with the necessary modifications or where specifically indicated, to a purchase of a life or deferred life annuity under the Act.
19(2)A defined contribution plan is a class of pension plan to which subsection 36(3) of the Act does not apply.
19(3)Members of a pension plan referred to in subsection 26(1) of the Act who
(a) terminate employment or otherwise cease to be members of the plan,
(b) desire to exercise any rights under subsection 36(1) or (1.1) of the Act, and
(c) deliver a written direction to that effect to the administrator before the date of termination or cessation,
are a class of employees to whom subsection 26(1) of the Act does not apply.
19(4)Subject to subsection (5) and except as provided for under subsection 35(7) of the Act and under section 29 and subsection 49(6), the commuted value of a pension benefit, including an ancillary benefit referred to in subsection 32(2) of the Act, shall not be less than
(a) in respect of a transfer before July 1, 1994 of a pension benefit payable from the pension fund, the value determined in accordance with the Recommendations for the Minimum Transfer Values of Deferred Pensions adopted by the Canadian Institute of Actuaries and effective on November 14, 1988,
(a.1) in respect of a transfer from July 1, 1994, to July 31, 2005, both dates inclusive, of a pension benefit payable from the pension fund, the value determined in accordance with the Recommendations for the Computation of Transfer Values from Registered Pension Plans adopted by the Canadian Institute of Actuaries and effective on September 1, 1993,
(a.2) in respect of a transfer from August 1, 2005, to March 31, 2009, both dates inclusive, of a pension benefit payable from the pension fund, the value determined in accordance with the Standard of Practice for Determining Pension Commuted Values adopted by the Canadian Institute of Actuaries and effective on February 1, 2005,
(a.3) in respect of a transfer on or after April 1, 2009, of a pension benefit payable from the pension fund, the value determined in accordance with the Standards of Practice - Practice Specific Standards for Pension Plans adopted by the Canadian Institute of Actuaries and effective on April 1, 2009,
(b) in respect of a purchase of a life or deferred life annuity, the amount required to purchase the benefit from a financial institution that offers life or deferred life annuities conforming to section 23, or
(c) in respect of a wind-up that is effective after January 31, 2001, if subsection 50(1) does not apply, the greater of
(i) the value determined under paragraph (a.1), (a.2) or (a.3), as the case may be, and
(ii) the going concern liabilities of the accrued pension benefit.
(d) Repealed: 2005-153
19(5)If the Superintendent establishes or approves a method for determining the commuted value of a pension benefit that is different from the method established under paragraph (4)(a), (a.1), (a.2), (a.3) or (b), the value determined by the method established or approved by the Superintendent shall prevail.
19(6)The administrator of a pension plan shall, at least thirty days before using any basis for determining the commuted value of a pension benefit under subsection (4), file with the Superintendent a document setting out the basis, the assumptions relative to the basis and any other information concerning the basis that the Superintendent requires.
19(7)Subject to subsection (8), an administrator of a pension plan who has reason to believe that the transfer ratio of the plan
(a) has been reduced by more than ten per cent since the review date of the most recently filed actuarial valuation report, or
(b) would be reduced by more than ten per cent should a transfer take place because the commuted value of the pension benefit to be transferred is greater than the value determined under paragraph (4)(a), (a.1), (a.2) or (a.3), as the case may be,
shall not transfer the transfer value or the commuted value of a pension benefit until a new transfer ratio has been determined by an actuary and the transfer is carried out under subsection (10) or (11) or until the transfer has been approved by the Superintendent under section 37 of the Act.
19(8)Subsection (7) does not apply to an administrator who has filed a substitute actuarial valuation report under subsection 9(3) and who proposes to transfer the commuted value of a pension benefit between the date of filing the substitute report and the date as of which the first actuarial valuation report subsequent to the substitute report is filed, inclusive.
19(9)If an administrator of a pension plan who has filed a substitute actuarial valuation report under subsection 9(3) transfers the commuted value of a pension benefit in the period described in subsection (8) and it is subsequently determined that the transfer ratio of the plan is less than one at the time of the review date of the first actuarial valuation report performed subsequent to the substitute report, the employer shall make a contribution in accordance with subsection 35(3) to the pension fund that is equal to the difference obtained by deducting the product of the total of the amounts transferred during the period and the transfer ratio from the total of the amounts transferred during the period.
19(10)Subject to subsections (7) and (11), an administrator of a pension plan who is given a direction to transfer the commuted value of a pension benefit under the plan or the Act or who has required a member to request a transfer under subsection 36(8) of the Act shall transfer the transfer value of the benefit.
19(11)If the transfer ratio of a pension plan is less than one, the administrator may transfer the transfer value of the benefit under subsection (10) but shall not transfer the commuted value of the benefit unless
(a) the administrator is satisfied that an amount equal to the transfer deficiency relative to the transfer has been remitted by the employer to the pension fund, or
(b) the transfer deficiency relative to the transfer is less than five per cent of the Year’s Maximum Pensionable Earnings for the calendar year and the total of transfer deficiencies relative to all transfers made since the last review date of the most recently filed actuarial valuation report does not exceed five per cent of the transfer assets of the plan as of the date of the request for the transfer.
19(12)If a portion of the commuted value of a pension benefit is transferred in the initial transfer, the administrator shall transfer the balance, including interest on the balance calculated at the interest rate provided for under subsection (13), (13.1), (13.2) or (13.3), as the case may be, within five years after the date of the initial transfer.
19(13)Where the initial transfer referred to in subsection (12) is made before July 1, 1994, the interest rate used in a calculation under subsection (12) is the month-end value of
(a) for non-indexed pension benefits, the nominal rate of interest on long-term Government of Canada bonds, CANSIM series B14013, in the second calendar month preceding the month in which the event to which the calculation relates occurs, rounded up to the next multiple of one-half per cent, or
(b) for indexed pension benefits, the typical chartered bank five-year nominal mortgage rate, CANSIM series B14051, in the second calendar month preceding the month in which the event to which the calculation relates occurs, less one-half per cent.
19(13.1)Where the initial transfer referred to in subsection (12) is made from July 1, 1994, to July 31, 2005, both dates inclusive, the interest rate used in a calculation under subsection (12) is the interest rate known as the “nominal rate” in the Recommendations for the Computation of Transfer Values from Registered Pension Plans adopted by the Canadian Institute of Actuaries and effective on September 1, 1993.
19(13.2)Where the initial transfer referred to in subsection (12) is made from August 1, 2005, to March 31, 2009, both dates inclusive, the interest rate used in a calculation under subsection (12) shall be the interest rate applicable for the month in which the initial transfer amount was determined, in accordance with the standards for the computation of the commuted value of non-indexed pensions in the Standard of Practice for Determining Pension Commuted Values adopted by the Canadian Institute of Actuaries and effective on February 1, 2005.
19(13.3)When the initial transfer referred to in subsection (12) is made on or after April 1, 2009, the interest rate used in a calculation under subsection (12) shall be the interest rate applicable for the month in which the initial transfer amount was determined, in accordance with the standards for the computation of the commuted value of non-indexed pensions in the Standards of Practice - Practice Specific Standards for Pension Plans adopted by the Canadian Institute of Actuaries and effective on April 1, 2009.
19(14)This section applies to any subsequent transfers under subsection (12).
94-78; 2001-1; 2002, c.12, s.32; 2005-102; 2005-153; 2009-42
Transfer of commuted value of a deferred pension
19(1)This section applies to the transfer of the commuted value of a deferred pension under a pension plan or under paragraph 36(1)(a) or subsection 36(1.1) or (8) of the Act and, with the necessary modifications or where specifically indicated, to a purchase of a life or deferred life annuity under the Act.
19(2)A defined contribution plan is a class of pension plan to which subsection 36(3) of the Act does not apply.
19(3)Members of a pension plan referred to in subsection 26(1) of the Act who
(a) terminate employment or otherwise cease to be members of the plan,
(b) desire to exercise any rights under subsection 36(1) or (1.1) of the Act, and
(c) deliver a written direction to that effect to the administrator before the date of termination or cessation,
are a class of employees to whom subsection 26(1) of the Act does not apply.
19(4)Subject to subsection (5) and except as provided for under subsection 35(7) of the Act and under section 29 and subsection 49(6), the commuted value of a pension benefit, including an ancillary benefit referred to in subsection 32(2) of the Act, shall not be less than
(a) in respect of a transfer before July 1, 1994 of a pension benefit payable from the pension fund, the value determined in accordance with the Recommendations for the Minimum Transfer Values of Deferred Pensions adopted by the Canadian Institute of Actuaries and effective on November 14, 1988,
(a.1) in respect of a transfer from July 1, 1994, to July 31, 2005, both dates inclusive, of a pension benefit payable from the pension fund, the value determined in accordance with the Recommendations for the Computation of Transfer Values from Registered Pension Plans adopted by the Canadian Institute of Actuaries and effective on September 1, 1993,
(a.2) in respect of a transfer on or after August 1, 2005, of a pension benefit payable from the pension fund, the value determined in accordance with the Standard of Practice for Determining Pension Commuted Values adopted by the Canadian Institute of Actuaries and effective on February 1, 2005,
(b) in respect of a purchase of a life or deferred life annuity, the amount required to purchase the benefit from a financial institution that offers life or deferred life annuities conforming to section 23,
(c) in respect of a wind-up that is effective after January 31, 2001, if subsection 50(1) does not apply, the greater of
(i) the value determined under paragraph (a.1) or (a.2), as the case may be, and
(ii) the going concern liabilities of the accrued pension benefit, or
(d) Repealed: 2005-153
19(5)If the Superintendent establishes or approves a method for determining the commuted value of a pension benefit that is different from the method established under paragraph (4)(a), (a.1), (a.2) or (b), the value determined by the method established or approved by the Superintendent shall prevail.
19(6)The administrator of a pension plan shall, at least thirty days before using any basis for determining the commuted value of a pension benefit under subsection (4), file with the Superintendent a document setting out the basis, the assumptions relative to the basis and any other information concerning the basis that the Superintendent requires.
19(7)Subject to subsection (8), an administrator of a pension plan who has reason to believe that the transfer ratio of the plan
(a) has been reduced by more than ten per cent since the review date of the most recently filed actuarial valuation report, or
(b) would be reduced by more than ten per cent should a transfer take place because the commuted value of the pension benefit to be transferred is greater than the value determined under paragraph (4)(a), (a.1), or (a.2), as the case may be,
shall not transfer the transfer value or the commuted value of a pension benefit until a new transfer ratio has been determined by an actuary and the transfer is carried out under subsection (10) or (11) or until the transfer has been approved by the Superintendent under section 37 of the Act.
19(8)Subsection (7) does not apply to an administrator who has filed a substitute actuarial valuation report under subsection 9(3) and who proposes to transfer the commuted value of a pension benefit between the date of filing the substitute report and the date as of which the first actuarial valuation report subsequent to the substitute report is filed, inclusive.
19(9)If an administrator of a pension plan who has filed a substitute actuarial valuation report under subsection 9(3) transfers the commuted value of a pension benefit in the period described in subsection (8) and it is subsequently determined that the transfer ratio of the plan is less than one at the time of the review date of the first actuarial valuation report performed subsequent to the substitute report, the employer shall make a contribution in accordance with subsection 35(3) to the pension fund that is equal to the difference obtained by deducting the product of the total of the amounts transferred during the period and the transfer ratio from the total of the amounts transferred during the period.
19(10)Subject to subsections (7) and (11), an administrator of a pension plan who is given a direction to transfer the commuted value of a pension benefit under the plan or the Act or who has required a member to request a transfer under subsection 36(8) of the Act shall transfer the transfer value of the benefit.
19(11)If the transfer ratio of a pension plan is less than one, the administrator may transfer the transfer value of the benefit under subsection (10) but shall not transfer the commuted value of the benefit unless
(a) the administrator is satisfied that an amount equal to the transfer deficiency relative to the transfer has been remitted by the employer to the pension fund, or
(b) the transfer deficiency relative to the transfer is less than five per cent of the Year’s Maximum Pensionable Earnings for the calendar year and the total of transfer deficiencies relative to all transfers made since the last review date of the most recently filed actuarial valuation report does not exceed five per cent of the transfer assets of the plan as of the date of the request for the transfer.
19(12)If a portion of the commuted value of a pension benefit is transferred in the initial transfer, the administrator shall transfer the balance, including interest on the balance calculated at the interest rate provided for under subsection (13), (13.1) or (13.2), as the case may be, within five years after the date of the initial transfer.
19(13)Where the initial transfer referred to in subsection (12) is made before July 1, 1994, the interest rate used in a calculation under subsection (12) is the month-end value of
(a) for non-indexed pension benefits, the nominal rate of interest on long-term Government of Canada bonds, CANSIM series B14013, in the second calendar month preceding the month in which the event to which the calculation relates occurs, rounded up to the next multiple of one-half per cent, or
(b) for indexed pension benefits, the typical chartered bank five-year nominal mortgage rate, CANSIM series B14051, in the second calendar month preceding the month in which the event to which the calculation relates occurs, less one-half per cent.
19(13.1)Where the initial transfer referred to in subsection (12) is made from July 1, 1994, to July 31, 2005, both dates inclusive, the interest rate used in a calculation under subsection (12) is the interest rate known as the “nominal rate” in the Recommendations for the Computation of Transfer Values from Registered Pension Plans adopted by the Canadian Institute of Actuaries and effective on September 1, 1993.
19(13.2)Where the initial transfer referred to in subsection (12) is made on or after August 1, 2005, the interest rate used in a calculation under subsection (12) shall be the interest rate applicable for the month in which the initial transfer amount was determined, in accordance with the standards for the computation of the commuted value of non-indexed pensions in the Standard of Practice for Determining Pension Commuted Values adopted by the Canadian Institute of Actuaries and effective on February 1, 2005.
19(14)This section applies to any subsequent transfers under subsection (12).
94-78; 2001-1; 2002, c.12, s.32; 2005-102; 2005-153