Regulation - LGIC
Nortel Pension Plans
Regulation Number(s):
10/13
Instrument Type:
Regulation - LGIC
Bill or Act:
Pension Benefits Act
Summary of Decision:
The approved Regulation implements the Pension Benefits Act (PBA) amendments proclaimed under the Better Tomorrow for Ontario Act (Budget Measures), 2011 (Budget Bill 2011) and the Strong Action for Ontario Act (Budget Measures), 2012 (Budget Bill 2012). The Regulation gives retired members of the two Nortel Networks (Nortel) pension plans the option to transfer the commuted value of their pension entitlement to a life income fund (LIF) at a Canadian financial institution instead of having annuities purchased on their behalf, as usually occurs. The Regulation:
- identifies the pension plans to which the option applies
- establishes a procedure for notifying eligible pensioners of their options
- sets out the consent requirements for a pensioner's spouse or survivor in order to transfer the pensioner's commuted value to a LIF;
- establishes the methodology for calculating a pensioner's commuted value (Canadian Institute of Actuaries Commuted Value Standard); and
- precludes Nortel pensioners who elect this option from exercising the 50% unlocking provision that is available to non-pensioners who can transfer entitlements to locked-in accounts but not to pensioners for whom annuities are purchased
- creates a mechanism for pensioners to exercise their transfer option.
- identifies the pension plans to which the option applies
- establishes a procedure for notifying eligible pensioners of their options
- sets out the consent requirements for a pensioner's spouse or survivor in order to transfer the pensioner's commuted value to a LIF;
- establishes the methodology for calculating a pensioner's commuted value (Canadian Institute of Actuaries Commuted Value Standard); and
- precludes Nortel pensioners who elect this option from exercising the 50% unlocking provision that is available to non-pensioners who can transfer entitlements to locked-in accounts but not to pensioners for whom annuities are purchased
- creates a mechanism for pensioners to exercise their transfer option.
Further Information:
Nortel Pension Plans--Regulation under the Pension Benefits Act
Proposal Number:
13-MOF010
Posting Date:
Summary of Proposal:
The approved Regulation implements the Pension Benefits Act (PBA) amendments proclaimed under the Better Tomorrow for Ontario Act (Budget Measures), 2011 (Budget Bill 2011) and the Strong Action for Ontario Act (Budget Measures), 2012 (Budget Bill 2012). The Regulation gives retired members of the two Nortel Networks (Nortel) pension plans the option to transfer the commuted value of their pension entitlement to a life income fund (LIF) at a Canadian financial institution instead of having annuities purchased on their behalf, as usually occurs. The Regulation:
- identifies the pension plans to which the option applies
- establishes a procedure for notifying eligible pensioners of their options
- sets out the consent requirements for a pensioner's spouse or survivor in order to transfer the pensioner's commuted value to a LIF;
- establishes the methodology for calculating a pensioner's commuted value (Canadian Institute of Actuaries Commuted Value Standard); and
- precludes Nortel pensioners who elect this option from exercising the 50% unlocking provision that is available to non-pensioners who can transfer entitlements to locked-in accounts but not to pensioners for whom annuities are purchased
- creates a mechanism for pensioners to exercise their transfer option.
- identifies the pension plans to which the option applies
- establishes a procedure for notifying eligible pensioners of their options
- sets out the consent requirements for a pensioner's spouse or survivor in order to transfer the pensioner's commuted value to a LIF;
- establishes the methodology for calculating a pensioner's commuted value (Canadian Institute of Actuaries Commuted Value Standard); and
- precludes Nortel pensioners who elect this option from exercising the 50% unlocking provision that is available to non-pensioners who can transfer entitlements to locked-in accounts but not to pensioners for whom annuities are purchased
- creates a mechanism for pensioners to exercise their transfer option.
Contact Address:
Pension Benefits Standards Policy
Pension, Income Security and Research Division
Ministry of Finance
5th Floor, Frost Building South
7 Queen's Park Crescent
Toronto ON M7A 1Y7
Pension, Income Security and Research Division
Ministry of Finance
5th Floor, Frost Building South
7 Queen's Park Crescent
Toronto ON M7A 1Y7
Effective Date:
January 15, 2013
Decision:
Approved