Refund of Surplus
16 (1) For the purposes of the definition surplus in subsection 2(1) of the Act, the amount by which the assets of the plan exceeds its liabilities shall be determined by subtracting the liabilities of the plan from its assets, as those assets and liabilities are shown in an actuarial report and, in the case of a plan that has not been fully terminated, as those assets and liabilities are valued in the report according to a going concern valuation.
(2) A refund of all or part of a surplus may be made if
(a) in respect of a plan that has not been fully terminated, the surplus exceeds the greater of the following amounts that are attributable to the defined benefit provisions of the plan, namely,
(b) the administrator of the plan has given notice in writing to the plan members, former members and any other person who is entitled to a pension benefit under the terms of the plan that the employer intends to withdraw all or part of the surplus and that they may make any comments in writing to the Superintendent concerning the refund;
(c) 30 days have gone by after the day on which the administrator gave notice under paragraph (b);
(d) the Superintendent has consented to the refund of all or part of the surplus and has given notice of that consent in writing to the persons referred to in paragraph (b) who made comments in writing concerning the refund; and
(e) 40 days have gone by after the day on which the Superintendent gave notice under paragraph (d).
(3) For the purpose of this section, liabilities accrued under the defined contribution provisions of a plan as the result of a conversion of defined benefit provisions to defined contribution provisions are deemed not to be attributable to the defined benefit provisions of the plan.
(4) In respect of a plan that has not been fully terminated, the surplus or part of it that may be refunded may be no greater than the amount by which the surplus exceeds the greater of the following amounts that are attributable to the defined benefit provisions of the plan:
(5) The following classes of persons are prescribed for the purpose of paragraph 9.2(3)(b) of the Act:
(a) any persons who are entitled to pension benefits payable from the plan, but not including plan members;
(b) survivors, spouses, former spouses, common-law partners and former common-law partners of members or former members if the survivor, spouse, former spouse, common-law partner or former common-law partner is entitled to pension benefits or pension benefit credits payable from the plan; and
(c) any persons for whom the administrator has purchased annuities, other than life annuities purchased under section 26 of the Act, but not including plan members.
- SOR/93-109, s. 5(F)
- SOR/95-171, s. 6
- SOR/2001-222, s. 3
- SOR/2010-149, s. 5(F)
- SOR/2011-85, s. 8
- SOR/2015-60, s. 6
16.1 (1) An employer shall notify the persons referred to in paragraph 9.2(3)(a) of the Act of the employer’s proposal for a refund of a surplus or part of it by sending a notice to the current address of the person or, if the person is an employee, to their place of work.
(2) An employer shall notify the persons referred to in paragraph 9.2(3)(b) of the Act of the employer’s proposal for a refund of a surplus or part of it
(a) by sending a notice to the person at their current address contained in the employer’s records or at the address the employer reasonably believes to be their current address; or
(b) if the address of the person is unknown, by publishing a notice, in both official languages, once a week for two consecutive weeks, in one or more newspapers in general circulation in each province.
- SOR/2001-222, s. 3
Arbitration Relating to Refund of Surplus
(2) For the purposes of subsection 9.2(7) of the Act, the prescribed period is one year beginning on the day on which the employer notifies the Superintendent and persons referred to in subsection 9.2(3) of the Act in accordance with subsection 9.2(4) or (5) of the Act, as the case may be.
(3) The arbitrator shall publish a notice of the date, time and place at which the arbitration will begin.
(4) The notice must include
(5) The notice must be published, in both official languages, once a week for two consecutive weeks, in one or more newspapers in general circulation in each province in which persons referred to in subsection 9.2(3) of the Act reside or, if a person’s province of residence is not known, in each province.
(6) The last notice must be published not more than eight weeks and not less than four weeks before the day on which the arbitration begins.
- SOR/2001-222, s. 3
- SOR/2011-196, s. 32
17 The annual increase of the Consumer Price Index referred to in paragraph 21(6)(b) of the Act is the ratio of the aggregate of the Consumer Price Index for a current period of 12 consecutive months prior to the end of a plan year, or prior to the date the deferred pension benefit is adjusted as specified in the plan, if that date is other than the end of the plan year, to the aggregate of the Consumer Price Index for a corresponding period one year earlier, minus one.
Portability of Pension Benefit Credits
18 (1) Subject to subsection (2), a pension benefit credit shall be determined in accordance with the Recommendations for the Computation of Transfer Values from Registered Pension Plans effective September 1, 1993 issued by the Canadian Institute of Actuaries, as amended from time to time.
(2) In the case of a defined contribution plan, where the contributions under the plan are allocated to an individual plan member, the pension benefit credit of a plan member or the survivor of a plan member shall be the value of the accumulated contributions made under the plan by or in respect of the plan member since the plan member became a plan member.
(3) A plan member or the survivor of a plan member who wishes to transfer the pension benefit credit of the plan member or the survivor shall notify the administrator thereof in the form set out in Form 3 of Schedule II.
(3.1) The consent referred to in subsection 26(2.1) of the Act shall be in Form 3.1 of Schedule II.
(4) A pension benefit credit shall be determined
(a) where a plan member retires or dies or the whole or part of the plan is terminated, as of the date of the retirement, death or termination;
(b) where a plan member ceases to be a plan member, as of the date that the plan member ceases to be a plan member; and
(c) where a plan member makes an assignment under subsection 25(4) of the Act, on the effective date of the assignment.
- SOR/90-363, s. 4
- SOR/94-384, s. 4
- SOR/2001-194, ss. 1, 4
- SOR/2002-78, s. 12
- SOR/2015-60, s. 7
(2) Where a plan has a solvency ratio that is equal to one, any amount transferred out of the pension fund that would result in the plan having a solvency ratio of less than one shall be considered to impair the solvency of the pension fund.
19.1 For the purposes of sections 16.4 and 26 of the Act, a life income fund, a restricted life income fund and a locked-in registered retirement savings plan are retirement savings plans into which a pension benefit credit may be transferred.
- SOR/95-551, s. 2
- SOR/2008-144, s. 2
- SOR/2015-60, s. 8
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