Acts and Regulations

91-195 - General

Section 50
Disposition versions

Full text
Distribution where insufficient funds
50(1)If upon wind-up of a defined benefit plan, in whole or in part, insufficient funds are available to pay the pensions and benefits under the plan, the funds that are available shall be allocated in the following manner in order of priority:
(a) to all members and former members or persons entitled to benefits or payments through members or former members, for transfer of or purchase with an amount equal to any additional voluntary contributions made by the member or former member with interest accrued as of the effective date of the wind-up, after deducting any transfer value for such additional voluntary contributions previously transferred in respect of the member or former member,
(b) subject to subsection (2), to all members and former members or persons entitled to benefits or payments through members or former members, for transfer of or purchase with an amount equal to the total of any contributions, other than contributions made under paragraph (a), made by the member or former member, with interest accrued as of the effective date of the wind-up, after deducting any transfer value for such contributions previously transferred in respect of the member or former member, and
(c) to all members and former members or persons entitled to benefits or payments through members or former members, for transfer of or purchase with an amount equal to the commuted value, determined in accordance with subsection 49(6), of the pension or deferred pension to which the person is entitled, after deducting any amount payable under paragraph (b).
50(2)For the purposes of determining the amount allocated to a person who is receiving a pension under paragraph (1)(b), contributions made by a former member allocated to a person who is receiving a pension shall be
(a) if the amount of contributions with interest is known, the total of the contributions made by the former member, with interest, less the total of the periodic amount of pension paid to the person, or
(b) if the amount of contributions with interest is not known
(i) if sixty months or more have elapsed since the commencement of payment of the pension, set at zero, or
(ii) if less than sixty months has elapsed, the difference obtained by deducting the total amount of pension paid to the person from the product of five and the annual amount of pension payable.
50(3)If there are insufficient funds to allocate fully but sufficient funds to allocate partly the amounts provided for under paragraph (1)(a), (b) or (c), as the case may be, the amount to be allocated to each person shall be calculated by multiplying the full amount to which the person would have been entitled by the quotient obtained by dividing the amount of funds available to be allocated to the group under that paragraph by the amount of funds that would be required fully to allocate the amounts to the group under that paragraph.
2005-153
Distribution where insufficient funds
50(1)If upon wind-up of a defined benefit plan, in whole or in part, insufficient funds are available to pay the pensions and benefits under the plan, the funds that are available shall be allocated in the following manner in order of priority:
(a) to all members and former members or persons entitled to benefits or payments through members or former members, for transfer of or purchase with an amount equal to any additional voluntary contributions made by the member or former member with interest accrued as of the effective date of the wind-up, after deducting any transfer value for such additional voluntary contributions previously transferred in respect of the member or former member,
(b) subject to subsection (2), to all members and former members or persons entitled to benefits or payments through members or former members, for transfer of or purchase with an amount equal to the total of any contributions, other than contributions made under paragraph (a), made by the member or former member, with interest accrued as of the effective date of the wind-up, after deducting any transfer value for such contributions previously transferred in respect of the member or former member, and
(c) to all members and former members or persons entitled to benefits or payments through members or former members, for transfer of or purchase with an amount equal to the commuted value, determined in accordance with subsection 49(6), of the pension or deferred pension to which the person is entitled, after deducting any amount payable under paragraph (b).
50(2)For the purposes of determining the amount allocated to a person who is receiving a pension under paragraph (1)(b), contributions made by a former member allocated to a person who is receiving a pension shall be
(a) if the amount of contributions with interest is known, the total of the contributions made by the former member, with interest, less the total of the periodic amount of pension paid to the person, or
(b) if the amount of contributions with interest is not known
(i) if sixty months or more have elapsed since the commencement of payment of the pension, set at zero, or
(ii) if less than sixty months has elapsed, the difference obtained by deducting the total amount of pension paid to the person from the product of five and the annual amount of pension payable.
50(3)If there are insufficient funds to allocate fully but sufficient funds to allocate partly the amounts provided for under paragraph (1)(a), (b) or (c), as the case may be, the amount to be allocated to each person shall be calculated by multiplying the full amount to which the person would have been entitled by the quotient obtained by dividing the amount of funds available to be allocated to the group under that paragraph by the amount of funds that would be required fully to allocate the amounts to the group under that paragraph.
2005-153