1812. The heading before section 26 of the Act is replaced by the following:

Marginal note:2000, c. 12, par. 264(d)

• 1813. (1) The portion of paragraph 26(3)(b) of the Act before subparagraph (i) is replaced by the following:

  • (b) that, if part of the pension benefit payable results from the excess described in subsection 21(1), the member or the survivor, as the case may be, must choose one of the following options in respect of that excess:

• (2) Subsection 26(4) of the Act is repealed.

1814. The Act is amended by adding the following after section 26:

Marginal note:2000, c. 12, par. 263(d)

• 1815. (1) The portion of paragraph 28(1)(b) of the Act before subparagraph (i) is replaced by the following:

  • (b) that each member of the plan and the member’s spouse or common-law partner will be given, in the prescribed circumstances and manner and within six months — or any longer period permitted by the Superintendent — after the end of each year of operation of the plan, a written statement showing

• Marginal note:1998, c. 12, s. 17(2); 2000, c. 12, par 263(d); 2001, c. 34, s. 75

  (2) Paragraphs 28(1)(c) and (d) of the Act are replaced by the following:

  • (b.1) that each former member of the plan and the former member’s spouse or common-law partner will be given, in the prescribed circumstances and manner and within six months — or any longer period permitted by the Superintendent — after the end of each year of operation of the plan, a written statement showing

    • (i) the prescribed ratio of the plan or, if there is no prescribed ratio, the funded ratio, if applicable, and

    • (ii) any other prescribed information;

  • (c) that each member and former member of the plan, every other person entitled to pension benefits under the plan and their spouses or common-law partners may, once in each year of operation of the plan, either personally or by an agent or mandatary authorized in writing for that purpose,

    • (i) examine copies of the documents or information filed with the Superintendent under subsection 9.01(5), 10(1) or 10.1(1), section 12 or subsection 29.03(4) or any regulations made under paragraph 39(1)(i), the reports provided under subsection 9.01(6), the letters of credit referred to in subsection 9.11(1), the documents submitted under subsection 29.3(3), and of any other prescribed documents, at the Canadian head office of the administrator or at any other place that is agreed to by the administrator and the person requesting to examine the documents, and

    • (ii) order, in writing, a copy of any of those documents;

  • (d) that, if a member of the plan retires or ceases to be a member of the plan for any reason other than the termination of the whole of the plan, the administrator shall give to that member and to the member’s spouse or common-law partner a written statement, in the prescribed form, of the member’s pension benefits and other benefits payable under the plan, within 30 days after the date of the retirement or cessation of membership, or any longer period permitted by the Superintendent; and

  • (e) that, if a member of the plan dies, the administrator shall give the written statement referred to in paragraph (d) in the prescribed form within 30 days after the date of the death — or any longer period permitted by the Superintendent — to the survivor, if there is one, to the member’s designated beneficiary, if the administrator has been notified of the designation and there is no survivor, or, in every other case, to the executor, administrator or liquidator of the member’s estate or succession.

• (3) Section 28 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Information on plan termination

    (2.1) A pension plan shall provide that if the whole of the plan is terminated, the administrator shall give to each member and former member and to the spouse or common-law partner of each member and former member, a written statement, in the prescribed form, informing them of

    • (a) the termination of the plan within 30 days or any longer period permitted by the Superintendent; and

    • (b) the member’s pension benefits and other benefits payable under the plan within 120 days after the termination or any longer period that the Superintendent may allow.

• 1816. (1) Subsection 29(3) of the Act is replaced by the following:

  • Marginal note:Declaration by Superintendent

    (2.1) The Superintendent may also declare the whole of a pension plan terminated if there is a cessation of crediting of benefits to the plan members.

  • Marginal note:Date of termination

    (3) In a declaration made under subsection (2) or (2.1), the Superintendent shall declare a pension plan or part of a pension plan, as the case may be, to be terminated as of the date that the Superintendent considers appropriate in the circumstances.

• Marginal note:1998, c. 12, s. 18(1)(E)

  (2) Subsection 29(4) of the Act is replaced by the following:

  • Marginal note:Adoption of new plan

    (4) If employer contributions to a multi-employer pension plan that is a defined benefit plan are suspended or cease as a result of the adoption of a new defined benefit plan, the original plan is deemed not to have been terminated, and the pension benefits and other benefits provided under the original plan are deemed to be benefits provided under the new plan in respect of any period of membership before the adoption of the new plan, whether or not the assets and liabilities of the original plan have been consolidated with those of the new plan.

• Marginal note:1998, c. 12, s. 18(2)

  (3) Subsection 29(5) of the Act is replaced by the following:

  • Marginal note:Partial termination

    (4.1) Only the Superintendent may declare part of a pension plan terminated.

  • Marginal note:Termination by administrator or employer

    (4.2) Subject to subsections (1), (2) and (2.1), the whole of a pension plan is terminated only if the administrator or employer notifies the Superintendent in writing of their decision to terminate the pension plan and the date of the termination.

  • Marginal note:Result of termination

    (4.3) As of the date of the termination of the whole of a pension plan, there is to be no crediting of benefits to the plan members under that pension plan.

  • Marginal note:Notice of voluntary termination or winding-up

    (5) An administrator or employer who terminates or winds up a pension plan shall notify the Superintendent in writing not less than 60 and not more than 180 days before the date of the termination or winding-up.

• (4) Subsection 29(6) of the Act is replaced by the following:

  • Marginal note:Payments by employer to meet solvency requirements

    (6) If the whole of a pension plan is terminated, the employer shall, without delay, pay into the pension fund all amounts that would otherwise have been required to be paid to meet the prescribed tests and standards for solvency referred to in subsection 9(1) and, without limiting the generality of the foregoing, the employer shall pay into the pension fund

    • (a) an amount equal to the normal cost that has accrued to the date of the termination;

    • (b) the amounts of any prescribed special payments that are due on termination or would otherwise have become due between the date of the termination and the end of the plan year in which the pension plan is terminated;

    • (c) the amounts of payments that are required to be made under a workout agreement that are due on termination or would otherwise have become due between the date of the termination and the end of the plan year in which the pension plan is terminated;

    • (d) all of the following amounts that have not been remitted to the pension fund at the date of the termination:

      • (i) the amounts deducted by the employer from members’ remuneration, and

      • (ii) other amounts due to the pension fund from the employer; and

    • (e) the amounts of all of the payments that are required to be made under subsection 9.14(2).

• (5) Section 29 of the Act is amended by adding the following after subsection (6):

  • Marginal note:Payment by employer of pension benefits

    (6.1) If the whole of a pension plan that is not a multi-employer pension plan is terminated, the employer shall pay into the pension fund, in accordance with the regulations, the amount — calculated periodically in accordance with the regulations — that is required to permit the plan to satisfy any obligations with respect to pension benefits as they are determined on the date of the termination.

  • Marginal note:Application of subsection 8(1)

    (6.2) Subsection 8(1) does not apply in respect of the amount that the employer is required to pay into the pension fund under subsection (6.1). However, it applies in respect of any payments that are due and that have not been paid into the pension fund in accordance with the regulations made for the purposes of subsection (6.1).

  • Marginal note:Overpayment

    (6.3) If, on the winding-up of the pension plan, there remains in the pension fund an amount that is more than the amount required to permit the plan to satisfy all obligations with respect to pension benefits as they are determined on the date of termination, the portion of the remaining amount that is, according to the regulations, attributable to the payments made under subsection (6.1) does not constitute a surplus and, subject to subsection (7), is to revert to the benefit of the employer.

  • Marginal note:Winding-up or bankruptcy

    (6.4) On the winding-up of the pension plan or the liquidation, assignment or bankruptcy of the employer, the amount required to permit the plan to satisfy any obligations with respect to pension benefits as they are determined on the date of termination is payable immediately.

  • Marginal note:Application of subsection 8(1)

    (6.5) Subsection 8(1) does not apply in respect of the amount that the employer is required to pay into the pension fund under subsection (6.4). However, it applies in respect of any payments that have accrued before the date of the winding-up, liquidation, assignment or bankruptcy and that have not been remitted to the fund in accordance with the regulations made for the purposes of subsection (6.1).

• Marginal note:2000, c. 12, s. 261

  (6) Subsection 29(7) of the Act is replaced by the following:

  • Marginal note:Assets of the pension plan

    (7) On the termination or winding-up of the whole of a pension plan, no part of the assets of the plan shall revert to the benefit of the employer until the Superintendent’s consent has been obtained and provision has been made for the payment to members and former members and their spouses, common-law partners, designated beneficiaries, estates or successions of all accrued or payable benefits in respect of membership up to the date of the termination or winding-up.

• (7) Subsections 29(9) to (12) of the Act are replaced by the following:

  • Marginal note:Actuarial termination report

    (9) On the termination of the whole or part of a pension plan, the administrator of the plan shall file with the Superintendent a termination report, prepared by a person having the prescribed qualifications, setting out the nature of the pension benefits and other benefits to be provided under the plan and a description of the methods of allocating and distributing those benefits and deciding the priorities in respect of the payment of full or partial benefits to the members. The report must also give the amount referred to in subsection (6.1) — calculated as at the date of termination — and contain any prescribed information.

  • Marginal note:Assets not to be applied until termination report approved

    (10) Assets of the pension plan may not be applied toward the provision of any benefits until the Superintendent has approved the termination report. The administrator of the plan may nevertheless pay pension benefits, as they fall due, to the person entitled.

  • Marginal note:Superintendent may direct winding-up

    (11) If the whole of a pension plan has been terminated and the Superintendent is of the opinion that no action or insufficient action has been taken to wind up the plan, the Superintendent may direct the administrator to distribute the assets of the plan in accordance with the regulations made under paragraph 39(1)(j), and may direct that any expenses incurred in connection with that distribution be paid out of the pension fund of the plan, and the administrator shall comply with any such direction without delay.

Marginal note:1998, c. 12, s. 19

1817. Section 29.1 of the Act is replaced by the following: