Pension Benefits Standards Act, 1985
Marginal note:Deemed termination
29 (1) The revocation of registration of a pension plan shall be deemed to constitute termination of the plan.
Marginal note:Where Superintendent may declare a plan terminated
(2) The Superintendent may declare the whole or part of a pension plan terminated where
(a) there is any suspension or cessation of employer contributions in respect of all or part of the plan members;
(b) the employer has discontinued or is in the process of discontinuing all of its business operations or a part thereof in which a substantial portion of its employees who are members of the pension plan are employed; or
(c) the Superintendent is of the opinion that the pension plan has failed to meet the prescribed tests and standards for solvency in respect of funding referred to in subsection 9(1).
(3) A declaration made under subsection (2) shall declare a pension plan or part thereof, as the case may be, to be terminated as of the date that the Superintendent considers appropriate in the circumstances.
Marginal note:Adoption of new plan
(4) If employer contributions to a pension plan are suspended or cease as a result of the adoption of a new 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:Notice of voluntary termination or winding-up
(5) An administrator who intends to terminate the whole or part of a pension plan or wind up a pension plan shall notify the Superintendent in writing of that intention at least sixty days before the date of the intended termination or winding-up.
Marginal note:Payments by employer to meet solvency requirements
(6) On the termination of the whole of a pension plan, the employer shall pay into the plan 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 plan
(a) an amount equal to the aggregate of
(i) the normal actuarial cost, and
(ii) any prescribed special payments,
that have accrued to the date of the termination; and
(i) amounts deducted by the employer from members’ remuneration, and
(ii) other amounts due to the pension fund from the employer
that have not been remitted to the pension fund at the date of the termination.
Marginal note:Assets of the 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, beneficiaries, estates or successions of all accrued or payable benefits in respect of membership up to the date of the termination or winding-up and, for that purpose, those benefits shall be treated as vested without regard to conditions as to age, period of membership in the plan or period of employment.
Marginal note:Effect of termination on assets
(8) On the termination of the whole of a pension plan, all assets of the plan that are to be used for the purpose of providing pension benefits or other benefits continue to be subject to this Act.
Marginal note:Report to Superintendent
(9) On the termination of a pension plan or part of a plan, the administrator of the plan shall file with the Superintendent a 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.
Marginal note:Assets not to be applied until report approved
(10) Assets of the plan may not be applied toward the provision of any benefits until the Superintendent has approved the report required by subsection (9), but the administrator of the plan may nevertheless pay to the person entitled, as they fall due, pension benefits, or refunds of employee contributions and interest thereon, as the case may be.
Marginal note:Superintendent may direct winding-up
(11) Where 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(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 forthwith comply with any such direction.
Marginal note:Partial termination of plan
(12) Where a plan is terminated in part, the rights of members affected shall not be less than what they would have been if the whole of the plan had been terminated on the same date as the partial termination.
- R.S., 1985, c. 32 (2nd Supp.), s. 29
- 1998, c. 12, s. 18
- 2000, c. 12, s. 261
- Date modified: