Canadian Press Pension Plan Solvency Deficiency Funding Regulations
SOR/2009-183
PENSION BENEFITS STANDARDS ACT, 1985
Registration 2009-06-11
Canadian Press Pension Plan Solvency Deficiency Funding Regulations
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsections 9(1) and 12(3), paragraphs 28(1)(b)Footnote a and 29(6)(a) and section 39Footnote b of the Pension Benefits Standards Act, 1985Footnote c, hereby makes the annexed Canadian Press Pension Plan Solvency Deficiency Funding Regulations.
Return to footnote aS.C. 2000, c. 12, par. 263(d)
Return to footnote bS.C. 2007, c. 35, s. 142
Return to footnote cR.S., c. 32 (2nd Supp.)
Interpretation
1 (1) The following definitions apply in these Regulations.
- beneficiary
beneficiary means a member or a former member of the Canadian Press pension plan or any other person who is entitled to pension benefits under the Canadian Press pension plan except
(a) a former member who has transferred all of their pension benefit credits under section 26 of the Act; and
(b) a former member for whom the administrator has purchased an immediate or deferred life annuity. (bénéficiaire)
- Canadian Press pension plan
Canadian Press pension plan means The Canadian Press Pension Plan for Employees Represented by The Canadian Media Guild, registered under the Act as number 56945 and The Pension Plan of the Canadian Press, registered under the Act as number 56457. (régime de retraite de la Presse canadienne)
- special payment
special payment means a payment or one of a series of payments that is determined in accordance with section 9 of the Pension Benefits Standards Regulations, 1985 or the Solvency Funding Relief Regulations. (paiement spécial)
- subsidized portion of early retirement benefits
subsidized portion of early retirement benefits means the amount by which an early retirement benefit that is payable to a former member under the Canadian Press pension plan with the consent of Canadian Press or the administrator exceeds the amount of an early retirement benefit that would have been payable to that member without that consent. (partie subventionnée des prestations de retraite anticipée)
(2) Except as otherwise provided in these Regulations, words and expressions used in these Regulations have the same meaning as in the Pension Benefits Standards Regulations, 1985 and the Solvency Funding Relief Regulations.
Conditions of Application
2 These Regulations apply in respect of the Canadian Press pension plan if
(a) the Canadian Press files with the Superintendent, within 30 days after the day on which these Regulations come into force, a written statement confirming that the information set out in section 4 has been provided to the beneficiaries and that less than one third of the members of the plan have objected and less than one third of the beneficiaries of the plan excluding members have objected to their plan being subject to these Regulations and that the plan will meet the solvency standards set out in these Regulations; and
(b) the administrator of the plan provides, within 30 days after the day on which these Regulations come into force, written notice to the Superintendent and the beneficiaries of the plan that the plan will be funded under these Regulations.
3 The amount of liabilities of the Canadian Press pension plan used to determine the solvency ratio of the plan as at December 31, 2008 shall not include the value of the subsidized portion of early retirement benefits that are not payable as at that date and the entitlement to which is subject to the consent of the Canadian Press or the administrator of the plan.
Provision of Information to Beneficiaries
4 The administrator of the Canadian Press pension plan shall provide the beneficiaries with the following information:
(a) the solvency ratio of the plan as of the most recent valuation report;
(b) the amount of the solvency deficiency of the plan as of the most recent valuation report and the estimated solvency deficiency as at December 31, 2008;
(c) a description of the extent to which the beneficiaries’ benefits would be reduced if the plan were fully terminated and wound up with the estimated solvency ratio as at December 31, 2008;
(d) a statement indicating that the application of these Regulations to the plan may result in a reduction of benefits as compared to those that the beneficiaries were entitled to receive as at December 31, 2008; and
(e) a statement indicating that the subsidized portion of early retirement benefits may only be paid if the aggregate amount of the subsidized portion does not result in the reduction of the solvency ratio as at December 31, 2008 by more than 10%.
Funding
5 Despite section 8 of the Pension Benefits Standards Regulations, 1985 and subsection 4(2) of the Solvency Funding Relief Regulations, the Canadian Press pension plan shall be considered to meet the standards for solvency if the funding is in accordance with these Regulations.
Payments for 2008
6 Despite paragraph 9(14)(a) of the Pension Benefits Standards Regulations, 1985 and section 7, all unpaid normal costs and any special payments owed as at December 31, 2008 shall be paid by the Canadian Press to the pension fund by December 31, 2009 in equal monthly instalments on or before the last day of each month.
Deferred Special Payments
General Funding Rule
7 Despite subsection 9(14) of the Pension Benefits Standards Regulations, 1985, the payment or remittance to the pension fund of special payments may be deferred until October 31, 2010. The amount of special payments that have been deferred shall be paid or remitted to the pension fund on November 1, 2010 and an actuarial report valuing the Canadian Press pension plan as at December 31, 2009 shall be prepared and filed with the Superintendent and shall include the present value of the special payment referred to in paragraphs (c) or (d), as the case may be, of the definition solvency deficiency in subsection 9(1) of the Pension Benefits Standards Regulations, 1985.
8 (1) For the purposes of subsection 8(1) of the Act, all normal costs and special payments that have been deferred and that have not been paid to the pension fund, in accordance with sections 6 and 7, plus interest, shall be considered to be an amount owed to the pension fund.
(2) Interest shall be calculated by using the interest rate that was assumed in valuing the liabilities of the Canadian Press pension plan for the purpose of calculating the amounts payable to that plan under section 9 of the Pension Benefits Standards Regulations, 1985 as at December 31, 2008.
Early Retirement Benefits
9 (1) If the aggregate value of the subsidized portion of early retirement benefits consented to since January 1, 2009 reduces the solvency ratio of a Canadian Press pension plan as at December 31, 2008 by more than 10%, the Canadian Press shall immediately pay to the pension fund an amount that would restore the solvency ratio to the value as at December 31, 2008 minus 10% and shall immediately notify the Superintendent in writing of the payment.
(2) For the purpose of subsection (1), the solvency ratio has been reduced by more than 10% if
(A – B)/A > 0.10
where
- A
- is the solvency ratio determined as at December 31, 2008, and
- B
- is the solvency ratio determined as at December 31, 2008 taking into consideration the aggregate value of the subsidized portion of early retirement benefits consented to since January 1, 2009.
10 (1) The amount of any secured borrowing obtained by the Canadian Press once it has obtained an aggregate of $5,000,000 of secured borrowing after January 31, 2009 must be subordinated to all normal costs and special payments that are deferred and accrued under these Regulations.
(2) If the Canadian Press does not comply with subsection (1), it shall immediately notify the Superintendent in writing of its non-compliance and immediately pay to the pension fund an amount equal to all normal costs and special payments that were deferred under these Regulations plus interest in accordance with subsection 8(2). These Regulations will then no longer apply.
Termination of Plan
11 On the termination of the whole of the Canadian Press pension plan, all normal costs and special payments that were deferred under these Regulations and under the Solvency Funding Relief Regulations shall be immediately remitted to the pension fund.
Ceasing Funding
12 (1) The Canadian Press may cease to be governed by these Regulations if it gives written notice to the Superintendent.
(2) If notice is given before December 31, 2009,
(a) these Regulations, other than this subsection, will cease to apply;
(b) the normal costs and special payments that were deferred under these Regulations shall be paid to the pension fund in equal quarterly instalments over the course of the plan year; and
(c) the actuarial report required under subsection 12(3) of the Act shall include the present value of the special payment referred to in paragraphs (c) or (d), as the case may be, of the definition solvency deficiency in subsection 9(1) of the Pension Benefits Standards Regulations, 1985 required to be paid during the plan year ending December 31, 2009.
(3) If notice is given on or after December 31, 2009 but on or before June 30, 2010,
(a) these Regulations, other than this subsection, will cease to apply;
(b) the special payments that were deferred under these Regulations shall be paid to the pension fund in equal quarterly instalments in the plan year beginning on January 1, 2010; and
(c) the actuarial report required under subsection 12(3) of the Act shall include the present value of the special payment referred to in paragraphs (c) or (d), as the case may be, of the definition solvency deficiency in subsection 9(1) of the Pension Benefits Standards Regulations, 1985 required to be paid during the plan year ending December 31, 2010.
(4) If notice is given after June 30, 2010,
(a) these Regulations, other than this subsection, will cease to apply;
(b) the special payments that were deferred under these Regulations must be paid to the pension fund by November 1, 2010; and
(c) the actuarial report required under subsection 12(3) of the Act shall include the present value of the special payment referred to in paragraphs (c) or (d), as the case may be, of the definition solvency deficiency in subsection 9(1) of the Pension Benefits Standards Regulations, 1985 required to be paid by November 1, 2010.
(5) These Regulations will cease to apply to a Canadian Press pension plan on the payment to the pension fund of an amount equal to all the normal costs and special payments that have been deferred in accordance with these Regulations.
Cease to Be in Force
13 These Regulations cease to be in force on November 1, 2010.
Coming into Force
14 These Regulations come into force on the day on which they are registered.
- Date modified: