[39] Bill 195 Original (PDF)
Bill 195 2009
An Act to amend the Pension Benefits Act and other related Acts with respect to the transfer of assets between pension plans
Note: This Act amends or repeals more than one Act. For the legislative history of these Acts, see the Table of Consolidated Public Statutes – Detailed Legislative History at www.e-Laws.gov.on.ca.
Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:
Ontario Public Service Employees' Union Pension Act, 1994
1. Subsection 6 (6) of the Ontario Public Service Employees' Union Pension Act, 1994 is amended by striking out "Subsections 81 (2) to (8) of the Pension Benefits Act" at the beginning and substituting "Subsections 81 (2) and (3) of the Pension Benefits Act".
Pension Benefits Act
2. Subsections 80 (4) to (7) of the Pension Benefits Act are repealed.
3. Subsections 81 (4) to (8) of the Act are repealed.
4. The Act is amended by adding the following section:
Transfers of assets
81.1 (1) In this section,
"receiving pension plan" means,
(a) a pension plan that is mentioned in subsection 80 (1) as a pension plan provided by the successor employer, if that subsection applies to the pension plan,
(b) a pension plan that is mentioned in subsection 81 (1) as the new pension plan, if that subsection applies to it, or
(c) a pension plan for a pension fund to which assets are transferred in circumstances where subsections 81 (1) to (3) do not apply or where section 42 or 80 does not apply; ("régime de retraite cessionnaire")
"transferring pension plan" means,
(a) a pension plan that is mentioned in clauses 80 (1) (a), (b) and (c) as the employer's pension plan,
(b) a pension plan that is mentioned in subsection 81 (1) as the original pension plan, or
(c) a pension plan for a pension fund from which assets are transferred in circumstances where subsections 81 (1) to (3) do not apply or where section 42 or 80 does not apply. ("régime de retraite cédant")
Agreement governing transfers
(2) If an eligible employee who is a member of a transferring pension plan becomes a member of a receiving pension plan on or after January 1, 1985 in any of the circumstances described in the definition of "receiving pension plan" in subsection (1), the administrators of the transferring pension plan and the receiving pension plan shall enter into an agreement within the prescribed time period that sets out the manner of determining the amount of assets that the administrator of the transferring pension plan is required to transfer to the receiving pension plan in respect of the pension benefits and ancillary benefits of the employee if subsection (9) requires the transfer.
Notice to employees
(3) The agreement must provide that a notice be given to each eligible employee concerning the option of consenting to a transfer of assets in respect of his or her pension benefits and ancillary benefits under the transferring pension plan, and the notice must contain sufficient information to allow the employee to make an informed decision about whether to consent to the transfer.
Duty to file agreement
(4) Upon entering into the agreement, the administrators of the transferring pension plan and the receiving pension plan shall file it with the Superintendent.
Effect of filing
(5) Sections 14 and 26 do not apply with respect to a filed agreement or with respect to any amendment to a pension plan that relates to the implementation of a filed agreement.
Superintendent's determination
(6) The Superintendent shall determine whether, in his or her opinion, the transfer described in a filed agreement protects the pension benefits and any other benefits of the employee to which the agreement relates and shall give notice of the determination to the employee and the administrator of the transferring pension plan.
Eligibility of employees
(7) For the purposes of an agreement filed under subsection (4), an employee is an eligible employee if he or she is employed by the employer on the effective date of the proposed transfer of assets under the agreement in respect of his or her pension benefits and ancillary benefits under the transferring pension plan, as determined in accordance with subsection (10).
Exceptions
(8) Despite subsection (7), an employee is not an eligible employee if, on the effective date of the proposed transfer of assets under the agreement, as determined in accordance with subsection (10), the employee is receiving a pension or is entitled to receive a deferred pension under the transferring pension plan or the receiving pension plan.
Transfer of assets
(9) If an agreement is filed under subsection (4) with respect to an eligible employee, the administrator of the transferring pension plan shall transfer to the receiving pension plan the assets in respect of the employee's pension benefits and ancillary benefits that the agreement requires if,
(a) the employee consents to the transfer by indicating his or her consent in writing in the manner specified by the administrator; or
(b) the employee does not indicate any choice of an option to the administrator within the prescribed time period and the notice of the Superintendent described in subsection (6) indicates that the Superintendent is of the opinion that the transfer protects the pension benefits and any other benefits of the employee.
Effective date of transfer
(10) The effective date of the transfer mentioned in subsection (9) shall be the date on which the employee who is or was a member of a transferring pension plan becomes or became a member of a receiving pension plan on or after January 1, 1985 in any of the circumstances described in the definition of "receiving pension plan" in subsection (1).
5. Subsection 115 (1) of the Act is amended by adding the following clause:
(z) governing the implementation of a transfer of assets from a transferring pension plan to a receiving pension plan for the purposes of section 81.1.
Police Services Act
6. (1) Clause (c) of the definition of "receiving pension plan" in subsection 131.1 (2) of the Police Services Act is repealed and the following substituted:
(c) a pension plan for a pension fund to which assets are transferred in circumstances where subsections 81 (1) to (3) of that Act do not apply or where section 42 or 80 of that Act does not apply;
(2) Clause (c) of the definition of "transferring pension plan" in subsection 131.1 (2) of the Act is repealed and the following substituted:
(c) a pension plan for a pension fund from which assets are transferred in circumstances where subsections 81 (1) to (3) of that Act do not apply or where section 42 or 80 of that Act does not apply.
7. Subsection 131.2 (1) of the Act is amended by striking out "subsection 80 (1) or 81 (1) or (8) of the Pension Benefits Act" and substituting "subsection 80 (1) or 81 (1) of the Pension Benefits Act or that are referred to in clause (c) of the definition of "transferring pension plan"".
8. Subsection 131.5 (3) of the Act is repealed.
Commencement and Short Title
Commencement
9. This Act comes into force on the day it receives Royal Assent.
Short title
10. The short title of this Act is the Pension Benefits Statute Law Amendment Act, 2009.
EXPLANATORY NOTE
The Bill amends the Pension Benefits Act to allow an employee to consent to the transfer of assets in respect of the pension benefits and ancillary benefits of the employee if, on or after January 1, 1985, a successor employer takes over the business of the employee's employer, a pension plan is established as the successor to a pension plan in respect of the employee's employment or assets of a pension fund in respect of the employee's employment are transferred in other circumstances. At present, no such transfer can be made without the prior consent of the Superintendent of Financial Services.
The administrators of the transferring pension plan and the receiving pension plan are required to enter into an agreement that sets out the manner of determining the amount of assets that the administrator of the transferring pension plan is required to transfer to the receiving pension plan in respect of the pension benefits and ancillary benefits of the employee. The agreement must provide for notice to be given to the employee that advises the employee of the option of consenting to the transfer and that gives sufficient information to allow the employee to make an informed decision about whether to consent to the transfer. The Superintendent of Financial Services is required to determine whether, in his or her opinion, the transfer protects the pension benefits and any other benefits of the employee and to give notice of the determination to the employee and the administrator of the transferring pension plan. The administrator is required to make the transfer if the employee consents to the transfer or, if the employee does not indicate any option to the administrator, the Superintendent's notice of determination indicates that the Superintendent is of the opinion that the transfer protects the pension benefits and any other benefits of the employee.