Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

Pension Benefits Standards Regulations, 1985 (SOR/87-19)

Regulations are current to 2020-01-27 and last amended on 2017-06-23. Previous Versions

Crown Corporations

 A Crown corporation may reduce solvency special payments for a plan year under section 9.16 of the Act if

  • (a) it is an agent of Her Majesty in right of Canada;

  • (b) it has notified the Minister and the appropriate Minister, as defined in subsection 83(1) of the Financial Administration Act, of the decision to reduce its solvency special payments;

  • (c) it obtains from the Minister and the appropriate Minister, as defined in subsection 83(1) of the Financial Administration Act, letters acknowledging that they have been informed that it intends to reduce its solvency special payments and that they do not object to the reduction; and

  • (d) it files the information and documentation described in paragraphs (b) and (c) with the Superintendent within 60 days after the reduction is made.

  • SOR/2011-85, s. 4

Void Amendment — Solvency Ratio

  •  (1) For the purposes of paragraph 10.1(2)(c) of the Act, the prescribed solvency ratio level is 0.85.

  • (2) For the purposes of paragraph 10.1(2)(c) of the Act, the solvency ratio following the amendment is the solvency ratio set out in the most recent actuarial report adjusted to reflect

    • (a) the effect on the solvency ratio of the increase in solvency liabilities as a result of the amendment, determined in accordance with subsection 9(13); and

    • (b) the effect of any lump sum payment to the pension fund made before the later of

      • (i) the effective date of the amendment; and

      • (ii) the date when the actuarial report prepared in respect of the amendment was filed with the Superintendent.

  • (3) For the purposes of paragraph 10.1(2)(d) of the Act, the prescribed solvency ratio level is 1.0

    • (a) during a negotiation period referred to in subsection 29.04(1) of the Act; and

    • (b) while a funding schedule approved by the Minister under section 29.3 of the Act is in effect.

  • SOR/2011-85, s. 4
  •  (1) An administrator who fails to pay into the fund any amount remitted to the administrator under subsection 9(14) is liable to the plan for the outstanding payment and interest on it.

  • (2) If an employer fails to make payments to the plan at the times set out in subsection 9(14) or fails to make payments in accordance with subsection 29(6) of the Act or if the administrator is liable under subsection (1), the interest rate shall be

    • (a) in respect of a going concern special payment, the one used to determine the going concern liabilities;

    • (b) in respect of a solvency special payment, the one used to determine the solvency liabilities;

    • (c) in respect of a normal cost, the one applicable in paragraph (a);

    • (d) in respect of any other payments, the one applicable in paragraph (b); and

    • (e) in respect of an amount required to be paid under a defined contribution provision, the greater of the rate of return of the fund as at the date that the amount was required to be paid and 0%.

  • SOR/2002-78, s. 8
  • SOR/2010-149, s. 3
  • SOR/2011-85, s. 5

Distressed Pension Plan Workout Scheme

Election

 An election under subsection 29.03(1) of the Act may only be made once every 48 months.

  • SOR/2011-85, s. 6

 For the purposes of subsection 29.03(3) of the Act,

  • SOR/2011-85, s. 6

 An election under section 29.03 of the Act shall not be made in respect of a plan that is subject to the Air Canada Pension Plan Funding Regulations, 2014 or the Canadian Press Pension Plan Solvency Deficiency Funding Regulations, 2010.

  • SOR/2011-85, s. 6
  • SOR/2013-244, s. 13

Information to be Provided to Members and Beneficiaries

 The employer shall provide the following information to the members and beneficiaries within 10 days after the beginning of the negotiation period:

  • (a) notice that the employer has entered into a distressed pension plan workout scheme;

  • (b) a statement indicating that a request for approval by the Minister of a funding schedule may only be made if less than one third of the members and less than one third of the beneficiaries object;

  • (c) a statement indicating that a collective bargaining agent may object or consent to a proposed workout agreement on behalf of the members that it represents;

  • (d) a statement indicating that a court-appointed representative may consent to a proposed workout agreement if less than one third of the members or one third of the beneficiaries that they represent object to the agreement;

  • (e) a statement indicating that the Minister’s approval is required to give effect to the funding schedule; and

  • (f) written notice of their right to examine the copies of the documents and information referred to in paragraph 28(1)(c) of the Act.

  • SOR/2011-85, s. 6

 The representative, or the employer if the representative consents, shall, in writing, inform the members or beneficiaries that they represent of their representation within 10 business days after their appointment by the Federal Court or the court referred to in section 10.8.

  • SOR/2011-85, s. 6

End of Negotiation Period

  •  (1) For the purposes of subsection 29.04(1) of the Act, the negotiation period ends on the earlier of

    • (a) the day on which the funding schedule is approved by the Minister, and

    • (b) the date determined under subsection (2).

  • (2) The negotiation period ends

    • (a) if the declaration referred to in subsection 29.03(4) of the Act is filed in the six month period following the end of the plan year, on the last day of the ninth month following the end of the plan year; and

    • (b) in any other case, on the last day of the ninth month following the date on which the declaration referred to in subsection 29.03(4) is filed.

  • SOR/2011-85, s. 6

Appointment of Representatives

 For the purposes of subsection 29.08(3) of the Act, the representatives shall

  • (a) be capable of fairly and adequately representing the interests of the persons that they represent; and

  • (b) not have an interest that is in conflict with the interests of the persons represented.

  • SOR/2011-85, s. 6

 For the purposes of subsection 29.08(2) of the Act, the appropriate court is the court in which a notice of intention or a proposal is filed under Part III of the Bankruptcy and Insolvency Act or the court that issued the initial order under the Companies’ Creditors Arrangement Act.

  • SOR/2011-85, s. 6

Information to be Provided to Representatives

  •  (1) The administrator, or the employer if the administrator is not the employer, shall provide to a representative

    • (a) within 10 days after the representative’s appointment under subsection 29.08(3) of the Act

      • (i) copies of the information return, the actuarial reports and the financial statements that have been filed with the Superintendent within the past three plan years under subsections 12(1) and (2) of the Act,

      • (ii) a copy of the plan,

      • (iii) a copy of the statement of investment policies and procedures of the plan established under section 7.1,

      • (iv) a list of the 10 largest asset holdings of the pension fund in descending order of asset value, along with the corresponding asset value, and

      • (v) the total face value of the letters of credit held in trust for the plan; and

    • (b) within 10 business days after a request of the representative, a copy of any document or information that members may examine under paragraph 28(1)(c) of the Act.

  • (2) If the representative is a bargaining agent, the administrator, or the employer if the administrator is not the employer, shall provide the documents and information required under paragraph (1)(a) to the representative within 30 days after the day on which the declaration is filed under subsection 29.03(4) of the Act.

  • SOR/2011-85, s. 6
 
Date modified: