Acts and Regulations

91-195 - General

Section 51
Disposition versions

Full text
Definitions
51(1)In this section and in section 52
“asset transfer ratio” means the quotient obtained by dividing the total of the market value of investments held by an employer’s pension plan, any cash balances and any accrued and receivable income items by the sum of the residual liabilities and the transfer liabilities;(indice de transfert des éléments d’actif)
“asset transfer value” means the product obtained by multiplying the transfer liabilities by the lesser of(valeur de transfert des éléments d’actif)
(a) the asset transfer ratio, and
(b) one;
“residual asset value” means the product obtained by multiplying the residual liabilities by the lesser of(valeur résiduelles des éléments d’actif)
(a) the asset transfer ratio, and
(b) one;
“residual liabilities” means the greater of the going concern liabilities and the solvency liabilities of the benefits and payments for which the employer has retained responsibility;(éléments de passif résiduels)
“transfer liabilities” means the greater of the going concern liabilities and the solvency liabilities of the benefits and payments for which the successor employer has assumed responsibility;(éléments de passif de transfert)
“transferred members” means those members, former members and other persons entitled to a benefit or payment under an employer’s pension plan who are affected by the transfer and for whose benefits or payments the successor employer has assumed responsibility, in whole or in part.(participants transférés)
Application for consent to transfer assets to successor employer
51(2)The administrator of an employer’s pension plan seeking consent of the Superintendent to a transfer of assets under section 69 of the Act shall submit to the Superintendent a written application for consent, which shall be accompanied by the prescribed fee and by
(a) a copy of the portion of the purchase and sale agreement and of any amendments to it that relate to the employer’s pension plan and the pension fund, and
(b) subject to subsections (3) and (10), an actuarial valuation report prepared in accordance with section 9 that sets out
(i) the going concern liabilities, solvency liabilities and asset transfer value of the benefits and payments for which the successor employer is assuming responsibility,
(ii) any going concern liabilities and solvency liabilities and the residual asset value of any benefits and payments for which the employer is retaining responsibility,
(iii) if there is a surplus in the pension fund, a description of the proposed treatment and method of payment and the basis for any allocation of the surplus, and
(iv) the amount of and the method of calculating the assets to be transferred to the pension fund of the successor employer’s pension plan.
Actuarial valuation report
51(3)Subject to subsection (10), an actuary preparing an actuarial valuation report under paragraph (2)(b) may include, for the purposes of subparagraph 10(2)(b)(iii) or (b.1)(iii), the net increase in liabilities resulting from
(a) benefit improvements to be granted to the transferred members on the date they become members of the successor employer’s pension plan, and
(b) the difference in going concern liabilities resulting from the difference in the actuarial funding methods or assumptions between the employer’s pension plan as reported in the most recent report filed by the administrator of the employer’s pension plan and the successor employer’s pension plan.
Actuarial valuation report
51(4)Subject to subsection (5), the review date of an actuarial valuation report required under paragraph (2)(b) shall be the effective date of the sale, assignment or other disposal to which the transfer of assets relates.
Actuarial valuation report
51(5)The review date of an actuarial valuation report required under paragraph (2)(b) may be other than the date required under subsection (4) if, in the opinion of the Superintendent, the other date is appropriate in the circumstances.
Actuarial valuation report
51(6)The administrator of an employer’s pension plan who has filed an actuarial valuation report under paragraph (2)(b) shall ensure that copies of the report are provided to the employer, if applicable, and to the successor employer and the employer and successor employer to whom such copies are provided shall make them available, exclusive of confidential information relating to the service, benefits, salary and other personal matters concerning specific persons who have not given consent, for inspection by all members, former members and other persons who are entitled to benefits or payments under the plan.
Notice of transfer
51(7)Before a proposed transfer of assets takes place under section 69 of the Act and not more than ten days after receiving notice that the Superintendent consents to the transfer, the administrator of the employer’s pension plan shall mail a written notice of the proposed transfer in accordance with subsection (8) to
(a) transferred members, and
(b) any trade union that represents the members of the plan and that is a party to a collective agreement filed with the Superintendent under subsection 10(2) of the Act.
Notice of transfer
51(8)A notice given under subsection (7) shall contain the following:
(a) the name and provincial registration number of the employer’s pension plan;
(b) the name and provincial registration number of the successor employer’s pension plan;
(c) subject to subsection (10) and paragraph 52(6)(a), the review date of the actuarial valuation report filed with the application under paragraph (2)(b);
(d) subject to subsection (10) and paragraph 52(6)(a), notice that copies of the report filed under paragraph (2)(b), exclusive of confidential information relating to the service, benefits, salary and other personal matters concerning specific persons who have not given consent, are available for inspection at the office of the employer or of the successor employer;
(e) subject to subsection (10) and paragraph 52(6)(a), advice concerning the means of obtaining a copy of the report filed under paragraph (2)(b), exclusive of confidential information; and
(f) a description of the benefits and payments under the plan for which the successor employer proposes to assume responsibility and a description of the benefits and payments under the plan for which the employer has retained responsibility.
Notice of transfer
51(9)An administrator who has given written notice as required under subsection (7) shall file with the Superintendent a certified copy of the notice and a written statement indicating that the administrator has complied with subsection (7) and indicating the date on which the mailing of the notice was completed.
Exemptions where certificate of actuary provided
51(10)Paragraph (2)(b), subsection (3) and paragraphs (8)(c), (d) and (e) do not apply if the administrator of the successor employer’s pension plan provides the administrator of the employer’s pension plan with the certificate of an actuary, certifying in writing that
(a) the amount of the liabilities to be assumed by the successor employer in respect of the transferred members is less than the total of all contributions that will be incurred over a period of two years following the date of the certificate respecting the normal cost of the successor employer’s pension plan, and
(b) the information contained in the certificate is, to the best of the actuary’s knowledge and belief, true and correct.
2020-51
Definitions
51(1)In this section and in section 52
“asset transfer ratio” means the quotient obtained by dividing the total of the market value of investments held by an employer’s pension plan, any cash balances and any accrued and receivable income items by the sum of the residual liabilities and the transfer liabilities;(indice de transfert des éléments d’actif)
“asset transfer value” means the product obtained by multiplying the transfer liabilities by the lesser of(valeur de transfert des éléments d’actif)
(a) the asset transfer ratio, and
(b) one;
“residual asset value” means the product obtained by multiplying the residual liabilities by the lesser of(valeur résiduelles des éléments d’actif)
(a) the asset transfer ratio, and
(b) one;
“residual liabilities” means the greater of the going concern liabilities and the solvency liabilities of the benefits and payments for which the employer has retained responsibility;(éléments de passif résiduels)
“transfer liabilities” means the greater of the going concern liabilities and the solvency liabilities of the benefits and payments for which the successor employer has assumed responsibility;(éléments de passif de transfert)
“transferred members” means those members, former members and other persons entitled to a benefit or payment under an employer’s pension plan who are affected by the transfer and for whose benefits or payments the successor employer has assumed responsibility, in whole or in part.(participants transférés)
Application for consent to transfer assets to successor employer
51(2)The administrator of an employer’s pension plan seeking consent of the Superintendent to a transfer of assets under section 69 of the Act shall submit to the Superintendent a written application for consent, which shall be accompanied by the prescribed fee and by
(a) a copy of the portion of the purchase and sale agreement and of any amendments to it that relate to the employer’s pension plan and the pension fund, and
(b) subject to subsections (3) and (10), an actuarial valuation report prepared in accordance with section 9 that sets out
(i) the going concern liabilities, solvency liabilities and asset transfer value of the benefits and payments for which the successor employer is assuming responsibility,
(ii) any going concern liabilities and solvency liabilities and the residual asset value of any benefits and payments for which the employer is retaining responsibility,
(iii) if there is a surplus in the pension fund, a description of the proposed treatment and method of payment and the basis for any allocation of the surplus, and
(iv) the amount of and the method of calculating the assets to be transferred to the pension fund of the successor employer’s pension plan.
Actuarial valuation report
51(3)Subject to subsection (10), an actuary preparing an actuarial valuation report under paragraph (2)(b) may include, for the purposes of subparagraph 10(2)(b)(iii), the net increase in liabilities resulting from
(a) benefit improvements to be granted to the transferred members on the date they become members of the successor employer’s pension plan, and
(b) the difference in going concern liabilities resulting from the difference in the actuarial funding methods or assumptions between the employer’s pension plan as reported in the most recent report filed by the administrator of the employer’s pension plan and the successor employer’s pension plan.
Actuarial valuation report
51(4)Subject to subsection (5), the review date of an actuarial valuation report required under paragraph (2)(b) shall be the effective date of the sale, assignment or other disposal to which the transfer of assets relates.
Actuarial valuation report
51(5)The review date of an actuarial valuation report required under paragraph (2)(b) may be other than the date required under subsection (4) if, in the opinion of the Superintendent, the other date is appropriate in the circumstances.
Actuarial valuation report
51(6)The administrator of an employer’s pension plan who has filed an actuarial valuation report under paragraph (2)(b) shall ensure that copies of the report are provided to the employer, if applicable, and to the successor employer and the employer and successor employer to whom such copies are provided shall make them available, exclusive of confidential information relating to the service, benefits, salary and other personal matters concerning specific persons who have not given consent, for inspection by all members, former members and other persons who are entitled to benefits or payments under the plan.
Notice of transfer
51(7)Before a proposed transfer of assets takes place under section 69 of the Act and not more than ten days after receiving notice that the Superintendent consents to the transfer, the administrator of the employer’s pension plan shall mail a written notice of the proposed transfer in accordance with subsection (8) to
(a) transferred members, and
(b) any trade union that represents the members of the plan and that is a party to a collective agreement filed with the Superintendent under subsection 10(2) of the Act.
Notice of transfer
51(8)A notice given under subsection (7) shall contain the following:
(a) the name and provincial registration number of the employer’s pension plan;
(b) the name and provincial registration number of the successor employer’s pension plan;
(c) subject to subsection (10) and paragraph 52(6)(a), the review date of the actuarial valuation report filed with the application under paragraph (2)(b);
(d) subject to subsection (10) and paragraph 52(6)(a), notice that copies of the report filed under paragraph (2)(b), exclusive of confidential information relating to the service, benefits, salary and other personal matters concerning specific persons who have not given consent, are available for inspection at the office of the employer or of the successor employer;
(e) subject to subsection (10) and paragraph 52(6)(a), advice concerning the means of obtaining a copy of the report filed under paragraph (2)(b), exclusive of confidential information; and
(f) a description of the benefits and payments under the plan for which the successor employer proposes to assume responsibility and a description of the benefits and payments under the plan for which the employer has retained responsibility.
Notice of transfer
51(9)An administrator who has given written notice as required under subsection (7) shall file with the Superintendent a certified copy of the notice and a written statement indicating that the administrator has complied with subsection (7) and indicating the date on which the mailing of the notice was completed.
Exemptions where certificate of actuary provided
51(10)Paragraph (2)(b), subsection (3) and paragraphs (8)(c), (d) and (e) do not apply if the administrator of the successor employer’s pension plan provides the administrator of the employer’s pension plan with the certificate of an actuary, certifying in writing that
(a) the amount of the liabilities to be assumed by the successor employer in respect of the transferred members is less than the total of all contributions that will be incurred over a period of two years following the date of the certificate respecting the normal cost of the successor employer’s pension plan, and
(b) the information contained in the certificate is, to the best of the actuary’s knowledge and belief, true and correct.
Definitions
51(1)In this section and in section 52
“asset transfer ratio” means the quotient obtained by dividing the total of the market value of investments held by an employer’s pension plan, any cash balances and any accrued and receivable income items by the sum of the residual liabilities and the transfer liabilities;(indice de transfert des éléments d’actif)
“asset transfer value” means the product obtained by multiplying the transfer liabilities by the lesser of(valeur de transfert des éléments d’actif)
(a) the asset transfer ratio, and
(b) one;
“residual asset value” means the product obtained by multiplying the residual liabilities by the lesser of(valeur résiduelles des éléments d’actif)
(a) the asset transfer ratio, and
(b) one;
“residual liabilities” means the greater of the going concern liabilities and the solvency liabilities of the benefits and payments for which the employer has retained responsibility;(éléments de passif résiduels)
“transfer liabilities” means the greater of the going concern liabilities and the solvency liabilities of the benefits and payments for which the successor employer has assumed responsibility;(éléments de passif de transfert)
“transferred members” means those members, former members and other persons entitled to a benefit or payment under an employer’s pension plan who are affected by the transfer and for whose benefits or payments the successor employer has assumed responsibility, in whole or in part.(participants transférés)
Application for consent to transfer assets to successor employer
51(2)The administrator of an employer’s pension plan seeking consent of the Superintendent to a transfer of assets under section 69 of the Act shall submit to the Superintendent a written application for consent, which shall be accompanied by the prescribed fee and by
(a) a copy of the portion of the purchase and sale agreement and of any amendments to it that relate to the employer’s pension plan and the pension fund, and
(b) subject to subsections (3) and (10), an actuarial valuation report prepared in accordance with section 9 that sets out
(i) the going concern liabilities, solvency liabilities and asset transfer value of the benefits and payments for which the successor employer is assuming responsibility,
(ii) any going concern liabilities and solvency liabilities and the residual asset value of any benefits and payments for which the employer is retaining responsibility,
(iii) if there is a surplus in the pension fund, a description of the proposed treatment and method of payment and the basis for any allocation of the surplus, and
(iv) the amount of and the method of calculating the assets to be transferred to the pension fund of the successor employer’s pension plan.
Actuarial valuation report
51(3)Subject to subsection (10), an actuary preparing an actuarial valuation report under paragraph (2)(b) may include, for the purposes of subparagraph 10(2)(b)(iii), the net increase in liabilities resulting from
(a) benefit improvements to be granted to the transferred members on the date they become members of the successor employer’s pension plan, and
(b) the difference in going concern liabilities resulting from the difference in the actuarial funding methods or assumptions between the employer’s pension plan as reported in the most recent report filed by the administrator of the employer’s pension plan and the successor employer’s pension plan.
Actuarial valuation report
51(4)Subject to subsection (5), the review date of an actuarial valuation report required under paragraph (2)(b) shall be the effective date of the sale, assignment or other disposal to which the transfer of assets relates.
Actuarial valuation report
51(5)The review date of an actuarial valuation report required under paragraph (2)(b) may be other than the date required under subsection (4) if, in the opinion of the Superintendent, the other date is appropriate in the circumstances.
Actuarial valuation report
51(6)The administrator of an employer’s pension plan who has filed an actuarial valuation report under paragraph (2)(b) shall ensure that copies of the report are provided to the employer, if applicable, and to the successor employer and the employer and successor employer to whom such copies are provided shall make them available, exclusive of confidential information relating to the service, benefits, salary and other personal matters concerning specific persons who have not given consent, for inspection by all members, former members and other persons who are entitled to benefits or payments under the plan.
Notice of transfer
51(7)Before a proposed transfer of assets takes place under section 69 of the Act and not more than ten days after receiving notice that the Superintendent consents to the transfer, the administrator of the employer’s pension plan shall mail a written notice of the proposed transfer in accordance with subsection (8) to
(a) transferred members, and
(b) any trade union that represents the members of the plan and that is a party to a collective agreement filed with the Superintendent under subsection 10(2) of the Act.
Notice of transfer
51(8)A notice given under subsection (7) shall contain the following:
(a) the name and provincial registration number of the employer’s pension plan;
(b) the name and provincial registration number of the successor employer’s pension plan;
(c) subject to subsection (10) and paragraph 52(6)(a), the review date of the actuarial valuation report filed with the application under paragraph (2)(b);
(d) subject to subsection (10) and paragraph 52(6)(a), notice that copies of the report filed under paragraph (2)(b), exclusive of confidential information relating to the service, benefits, salary and other personal matters concerning specific persons who have not given consent, are available for inspection at the office of the employer or of the successor employer;
(e) subject to subsection (10) and paragraph 52(6)(a), advice concerning the means of obtaining a copy of the report filed under paragraph (2)(b), exclusive of confidential information; and
(f) a description of the benefits and payments under the plan for which the successor employer proposes to assume responsibility and a description of the benefits and payments under the plan for which the employer has retained responsibility.
Notice of transfer
51(9)An administrator who has given written notice as required under subsection (7) shall file with the Superintendent a certified copy of the notice and a written statement indicating that the administrator has complied with subsection (7) and indicating the date on which the mailing of the notice was completed.
Exemptions where certificate of actuary provided
51(10)Paragraph (2)(b), subsection (3) and paragraphs (8)(c), (d) and (e) do not apply if the administrator of the successor employer’s pension plan provides the administrator of the employer’s pension plan with the certificate of an actuary, certifying in writing that
(a) the amount of the liabilities to be assumed by the successor employer in respect of the transferred members is less than the total of all contributions that will be incurred over a period of two years following the date of the certificate respecting the normal cost of the successor employer’s pension plan, and
(b) the information contained in the certificate is, to the best of the actuary’s knowledge and belief, true and correct.