Acts and Regulations

2010-23 - Uniform Contributory Pension Plan

Full text
Amendment or termination of plan
7(1)The plan shall be a permanent plan for the exclusive benefit of the members, retired members, terminated vested members and their beneficiaries and contingent annuitants.
7(2)Despite subsection (1), the Board may amend the plan as it considers appropriate, subject to the following conditions:
(a) no amendment shall reduce a member’s, retired member’s, terminated vested member’s, beneficiary’s or contingent annuitant’s accrued benefits under the plan; and
(b) no amendment shall divert any assets of the pension fund for a purpose other than for the exclusive benefit of the members, retired members, terminated vested members and their beneficiaries or contingent annuitants under the plan, except in accordance with paragraph (7)(b).
7(3)The Board or any other person may recommend to the Minister that the plan be terminated.
7(4)Before making a recommendation to terminate the plan, the Board shall do the following:
(a) notify the members, retired members and terminated vested members of the recommendation to terminate the plan;
(b) receive and consider submissions from the following persons:
(i) members, retired members and terminated vested members;
(ii) participating bodies;
(iii) the plan manager; and
(iv) any other interested person; and
(c) carry out an investigation of any matter related to the termination of the plan.
7(5)On receipt of a recommendation to terminate the plan, the Minister shall do the following:
(a) receive and consider submissions from those persons referred to in paragraph (4)(b);
(b) carry out an investigation of any matter related to the termination of the plan; and
(c) make a recommendation to the Lieutenant-Governor in Council with regard to the termination or continuation of the plan.
7(6)After reviewing the recommendation of the Board and on the recommendation of the Minister, the Lieutenant-Governor in Council shall direct the Board to do the following:
(a) terminate the plan in accordance with subsection (7); or
(b) continue the plan subject to the directions approved by the Lieutenant-Governor in Council.
7(7)If the plan is terminated or contributions under it are discontinued, the pension fund shall be applied for the benefit of the members, retired members, terminated vested members and their beneficiaries and contingent annuitants in accordance with the following terms:
(a) the pension fund shall be applied, to the extent its value permits, to the following purposes and in the order named, so that each purpose shall be given effect to the maximum extent possible before a subsequent purpose is carried out:
(i) the provision of death benefits which are being paid in accordance with the plan with respect to members or terminated vested members deceased prior to the date the plan is terminated or contributions discontinued;
(ii) the provision of retirement benefits to retired members or annuities to the beneficiaries or contingent annuitants of deceased retired members;
(iii) the provision of benefits which have accrued to members and terminated vested members whose benefits have vested in accordance with the plan;
(iv) the provision of benefits to members or terminated vested members equivalent to the value of their contributions at the date the plan is terminated or contributions discontinued, less the value of the benefits provided under subparagraph (iii);
(v) the provision of the balance of benefits accrued to the members and terminated vested members receiving a benefit under subparagraph (iv); and
(vi) the allocation, in an equitable manner as determined by the Board, among the members contributing at the date of discontinuance of the plan of the balance of the pension fund that remains after all liabilities under the plan with respect to the members, retired members, terminated vested members and their beneficiaries and contingent annuitants have been fully satisfied;
(b) despite subparagraph (a)(vi), a balance which would create benefits in excess of the maximum prescribed by the plan shall be refunded to the employers in an equitable manner as determined by the Board;
(c) the amounts required to satisfy the purposes under paragraph (a) shall be determined by the actuary;
(d) the Board may direct that an annuity that a person is entitled to under paragraph (a) be purchased for the person from an institution licensed to transact annuity business in Canada that is selected by the employer and the Board; and
(e) if there is a conflict between this subsection and the provisions of any applicable legislation, the applicable legislation shall prevail.