Distressed Pension Plan Workout Scheme (continued)
Marginal note:Obligation of employer and administrator
Marginal note:Fees and expenses
(2) The reasonable fees and expenses of the representatives must be paid by the employer and not out of the pension fund.
- 2010, c. 12, s. 1817.
Marginal note:Workout agreement
29.1 (1) Subject to the regulations made for the purposes of sections 29.03 to 29.09, this section and sections 29.2 and 29.3, the employer and the representatives may negotiate a workout agreement that, among other things, proposes a funding schedule in respect of the pension plan for the period specified in the agreement.
(2) The proposed funding schedule may not provide for payments that become due before the day on which the negotiation period begins or that relate to normal cost.
(3) A workout agreement may not be entered into in respect of a pension plan that has been terminated in whole.
- 1998, c. 12, s. 19;
- 2010, c. 12, s. 1817.
Marginal note:Information to be provided to members and beneficiaries
29.2 (1) The members and beneficiaries must be provided with the prescribed information regarding the proposed workout agreement within the prescribed period by their respective representatives or, if the representative agrees, by the employer.
Marginal note:Consent of representatives
(2) A representative who is not a bargaining agent may consent to a proposed workout agreement only if less than one third of the members or beneficiaries that they represent object to the agreement within the prescribed period.
Marginal note:How objections are counted
(3) Any objection expressed by a representative on behalf of the members or beneficiaries that they represent is to be counted as a separate objection for each person that they represent.
- 2010, c. 12, s. 1817.
Marginal note:Approval by Minister
(2) The request for approval of the funding schedule may be submitted to the Minister only if less than one third of the members and less than one third of the beneficiaries object to the proposed workout agreement within the prescribed period.
Marginal note:Request for approval
(3) A request for approval must be submitted within the prescribed period and must be accompanied by
(a) a copy of the proposed workout agreement signed by the employer and the representatives that consent to it;
(b) the funding schedule in the form that the Superintendent directs;
(c) a written statement from each representative who consents to the proposed workout agreement or the employer, as the case may be, confirming that the requirements set out in subsection 29.2(1) have been met;
(d) a written statement in which the employer confirms that the requirement set out in subsection (2) has been met; and
(e) any prescribed documents or information.
(4) The Minister may approve the funding schedule only if, in the Superintendent’s opinion, it complies with the regulations made under subparagraph 39(1)(n.1)(v). In deciding whether or not to approve the funding schedule, the Minister must consider the prescribed criteria and any other matter that the Minister considers relevant.
Marginal note:Notification of decision
(5) The Minister must notify the Superintendent, employer, administrator and representatives of the decision and, if the funding schedule is approved, must provide the Superintendent with a copy of the schedule.
Marginal note:Effect of approval
(6) On approval by the Minister, the funding schedule is, for the purposes of this Act — except section 38 — and the regulations, considered to be part of the prescribed tests and standards for solvency in respect of the pension plan in question.
(7) In the event of an inconsistency between the approved funding schedule and the provisions of the regulations, the funding schedule prevails to the extent of the inconsistency.
- 2010, c. 12, s. 1817.
Effect of Sale, Etc., of Business
Marginal note:Effect of sale, etc., of business
(a) an employer who is a party to a pension plan sells, assigns or otherwise disposes of all or part of its business or undertaking or all or part of the assets of its business or undertaking,
(b) an employee of that employer becomes an employee of the person acquiring the business, undertaking or assets (in this section called the “successor employer”), and
(c) the successor employer does not assume responsibility for the accrued benefits of the employer’s pension plan,
the employee continues to be entitled to the benefits provided under the employer’s plan in respect of the period of membership in that employer’s plan, without further accrual.
(2) Where the events described in paragraphs (1)(a) and (b) occur, whether or not the successor employer assumes responsibility for the accrued benefits of the employer’s plan, then,
(a) for the purposes of the employer’s plan, membership in the employer’s plan of an employee referred to in paragraph (1)(b) shall be deemed not to have ceased by reason of those events; and
(b) for the purposes of
(i) determining the period of employment with respect to any eligibility condition of the successor employer’s pension plan, and
(ii) determining whether such an employee is entitled to a benefit under a pension plan of the employer or of the successor employer,
the period of employment shall be deemed to include employment with both the employer and the successor employer without any interruption.
- R.S., 1985, c. 32 (2nd Supp.), s. 30;
- 2010, c. 12, s. 1824(F).
Payment of Benefits and Designation of Beneficiaries
Marginal note:Certain provisions of provincial law to apply
31 Except to the extent that they are inconsistent with this Act, any provisions of any provincial law respecting the payment of benefits or the designation of beneficiaries under pension plans that would be applicable to a pension plan organized and administered to provide pension benefits to employees employed in included employment if that provincial law were applicable to such a pension plan shall be deemed to apply to such a pension plan as though that employment were not included employment.
Marginal note:Consent and other conditions
(a) the addressee has consented and has designated an information system for the receipt of the electronic document;
(b) the electronic document is provided to the designated information system; and
(c) the information in the electronic document is accessible by the addressee and capable of being retained by the addressee, so as to be usable for subsequent reference.
Marginal note:Revocation of consent
(2) An addressee may revoke the consent referred to in paragraph (1)(a).
(3) Subsections (1) and (2) do not apply
(a) to any requirement under this Act to provide the Minister or the Superintendent with information;
(b) to any requirement under this Act, imposed on the Minister or the Superintendent, to provide a person with information; or
(c) to any requirement under this Act exempted, by regulation, from the application of those subsections.
Marginal note:Communications by Minister or Superintendent
(4) For greater certainty, the Minister and the Superintendent may use electronic means to communicate information, including information in a document, under this Act.
- 2010, c. 25, s. 195.
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