<<SR_PageTitle>>

Acts and Regulations

2011-71 - Pension Benefits Act

Table of contents

Full text

NEW BRUNSWICK

REGULATION 2011-71

under the

Pension Benefits Act

(O.C. 2011-352)

Filed December 8, 2011

1Section 9 of New Brunswick Regulation 91-195 under the Pension Benefits Act is amended

(a) in subsection (3.1) by striking out “Where an actuarial valuation report” and substituting “If an actuarial valuation report with a review date before April 1, 2011,”;

(b) by adding after subsection (3.1) the following:

9(3.11)If an actuarial valuation report with a review date on or after April 1, 2011, indicates that the transfer ratio is less than 0.9, the administrator of the pension plan shall ensure that the plan is reviewed by, and an actuarial valuation report respecting the plan is prepared by, an actuary as of the date that is not more than twelve months after the review date of the previous report.

2Paragraph 10(2)(b) of the Regulation is amended

(a) by repealing subparagraph (ii) and substituting the following:

(ii) the present value of any remaining special payments that are required to liquidate any experience deficiency or initial unfunded liability and are scheduled to be paid within

(A) five years after the review date of the actuarial valuation report,

(B) the extended period given by the Superintendent under subsection 36(1.1) or (1.2) in respect of a special payments schedule established under subsection 36(1.1) or (1.2), or

(C) ten years after the review date of an actuarial valuation report referred to in subsection 36(1.22) in respect of a special payments schedule established under subsection 36(1.23),

(b) by repealing subparagraph (iv) and substituting the following:

(iv) the present value of any other special payments established on or after the commencement of the Act that are scheduled for payment within

(A) five years after the review date of the actuarial valuation report,

(B) the extended period given by the Superintendent under subsection 36(1.1) or (1.2) in respect of a special payments schedule established under subsection 36(1.1) or (1.2), or

(C) ten years after the review date of an actuarial valuation report referred to in subsection 36(1.22) in respect of a special payments schedule established under subsection 36(1.23),

3Section 36 of the Regulation is amended

(a) by adding before subsection (1) the following:

3(0.1)In subsections (1.22), (1.23) and (1.24),“existing solvency deficiencies” , in respect of a pension plan, means the present value of all special payments as of the review date of the actuarial valuation report in question, other than payments required only by reason of section 65 of the Act, that are scheduled to be paid after that date and that are required with respect to any solvency deficiency determined under section 10, except for a solvency deficiency resulting from an amendment to the pension plan that was not required under the Act, this Regulation, the pension benefits legislation of a designated jurisdiction or the Income Tax Act (Canada) made between January 1, 2010, and the review date of the actuarial valuation report in question, both dates inclusive. (déficit de solvabilité existant)

(b) in paragraph (1)(c) by striking out “subject to subsections (1.1) and (5),” and substituting “subject to subsections (1.1), (1.2), (1.23) and (5),”;

36(1.21)On or after the commencement of this subsection, the Superintendent shall not reduce the amount of special payments under paragraph (1)(c) by extending the period in that paragraph under subsection (1.2).

36(1.22)Despite subsection (8), if an administrator files an actuarial valuation report with a review date that is between April 1, 2010, and January 1, 2012, both dates inclusive, the administrator may request that

(a) the existing solvency deficiencies of the pension plan be consolidated, and

(b) the amount of special payments under paragraph (1)(c) be reduced by extending the period referred to in that paragraph to ten years.

36(1.23)The Superintendent shall grant a request referred to in subsection (1.22), if

(a) the administrator has not previously made a request under that subsection with respect to the pension plan,

(b) an actuary certifies that the assets of the pension plan are sufficient to provide for all the expected payments under the pension plan during the extended amortization period,

(c) the employer provides to each member, former member and other person entitled to payments under the pension plan written notice of the request that contains:

(i) an explanation for the request;

(ii) a comparison of the total annual employer contributions for each of the next ten years without consolidating the existing solvency deficiencies and with consolidating the existing solvency deficiencies; and

(iii) a statement that any comments or questions regarding the request may be submitted to the employer; and

(d) the employer provides the Superintendent with

(i) a copy of the notice required under paragraph (c), and

(ii) certification of the date on which the notice was provided to the members, former members and other persons entitled to payments under the pension plan.

36(1.24)If the Superintendent grants a request referred to in subsection (1.22),

(a) the administrator shall ensure that the pension plan is reviewed by, and an actuarial valuation report respecting the pension plan is prepared by, an actuary as of the date that is not more than twelve months after the review date of the previous report until

(i) the review date of the actuarial valuation report that identifies that no special payments are required with respect to the consolidated existing solvency deficiencies, or

(ii) the end of the ten year period referred to in paragraph (1.22)(b), whichever is earlier, and

(b) the pension plan shall not be amended during the ten year period referred to in paragraph (1.22)(b), if the amendment is not required under the Act, this Regulation, the pension benefits legislation of a designated jurisdiction or the Income Tax Act (Canada) unless

(i) the employer, or a person required to make contributions on behalf of the employer, contributes the full cost of the amendment to the pension plan on a solvency basis within ninety days after the amendment, or

(ii) no further special payments are required with respect to the consolidated existing solvency deficiencies.

36(1.25)If the Superintendent grants a request referred to in subsection (1.22) and a special payment had been made between the review date of the actuarial valuation report in question and the date the report is filed that is in an amount in excess of the amount determined for special payments over the extended amortization period, the difference between the amount of the special payment and amount determined for special payments over the extended amortization period shall not be considered an overpayment and shall not be used to further reduce the amount of special payments under subsection (1.22).

(d) in subsection (1.3) in the portion preceding paragraph (a) by striking out “subsection (1.2)” and substituting “subsection (1.2) or (1.22)”.