Acts and Regulations

P-5.1 - Pension Benefits Act

Section 99.98
Disposition versions

Full text
Distribution of assets - rules
99.98(1)Subject to subsection 99.96(2), the assets in the fund of a pension plan shall not be distributed until the wind-up report is approved by the Superintendent.
99.98(2)On approval of the wind-up report, if insufficient funds are available to pay the pensions and benefits under a 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 those additional voluntary contributions previously transferred in respect of the member or former member;
(b) to all members and former members or persons entitled to benefits or payments through members or former members and who were not in receipt of a pension as of the effective date of the wind-up, 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 the contributions previously transferred in respect of the member or former member;
(c) to all members and former members or persons entitled to benefits or payments through members or former members and who were in receipt of a pension as of the effective date of the wind-up, for transfer of or purchase with an amount equal to the total of the pension and bridging benefits payable in respect of the period commencing the effective date of the wind-up to April 30, 2010, inclusive, after deducting any transfer value for the benefits or payments previously transferred in respect of the member or former member, and
(d) 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 section 99.99, of the pension or deferred pension to which the person is entitled, multiplied by the allocation ratio calculated under section 99.991, less any amount payable under paragraph (b) and less any amount payable under paragraph (c) multiplied by the allocation ratio.
99.98(3)If the calculation under paragraph (2)(d) results in a negative figure for a member, former member or persons entitled to benefits or payments through a member or former member, the amount payable under that paragraph shall be 0.
99.98(4)If there are insufficient funds to allocate fully, but sufficient funds to allocate partly the amounts provided for under paragraph (2)(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 to allocate fully the amounts to the group under that paragraph.
99.98(5)The amount available at the distribution date for the person entitled to a benefit shall be the amount determined in accordance with subsections (2), (3) and (4), reduced by the amount paid to the member or former member or persons entitled to benefits or payments through the member or former member, between the effective date of the wind-up and the distribution date, adjusted with interest based on the interest rate determined in accordance with paragraph 99.99(3)(c).
99.98(6)If the calculation under subsection (5) results in a negative figure for a person entitled to a benefit, the amount available at the distribution date for that person under that subsection shall be 0.
2010, c.13, s.1
Distribution of assets - rules
99.98(1)Subject to subsection 99.96(2), the assets in the fund of a pension plan shall not be distributed until the wind-up report is approved by the Superintendent.
99.98(2)On approval of the wind-up report, if insufficient funds are available to pay the pensions and benefits under a 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 those additional voluntary contributions previously transferred in respect of the member or former member;
(b) to all members and former members or persons entitled to benefits or payments through members or former members and who were not in receipt of a pension as of the effective date of the wind-up, 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 the contributions previously transferred in respect of the member or former member;
(c) to all members and former members or persons entitled to benefits or payments through members or former members and who were in receipt of a pension as of the effective date of the wind-up, for transfer of or purchase with an amount equal to the total of the pension and bridging benefits payable in respect of the period commencing the effective date of the wind-up to April 30, 2010, inclusive, after deducting any transfer value for the benefits or payments previously transferred in respect of the member or former member, and
(d) 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 section 99.99, of the pension or deferred pension to which the person is entitled, multiplied by the allocation ratio calculated under section 99.991, less any amount payable under paragraph (b) and less any amount payable under paragraph (c) multiplied by the allocation ratio.
99.98(3)If the calculation under paragraph (2)(d) results in a negative figure for a member, former member or persons entitled to benefits or payments through a member or former member, the amount payable under that paragraph shall be 0.
99.98(4)If there are insufficient funds to allocate fully, but sufficient funds to allocate partly the amounts provided for under paragraph (2)(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 to allocate fully the amounts to the group under that paragraph.
99.98(5)The amount available at the distribution date for the person entitled to a benefit shall be the amount determined in accordance with subsections (2), (3) and (4), reduced by the amount paid to the member or former member or persons entitled to benefits or payments through the member or former member, between the effective date of the wind-up and the distribution date, adjusted with interest based on the interest rate determined in accordance with paragraph 99.99(3)(c).
99.98(6)If the calculation under subsection (5) results in a negative figure for a person entitled to a benefit, the amount available at the distribution date for that person under that subsection shall be 0.
2010, c.13, s.1