Extension of Surplus Sharing Regulation and Temporary Specified Ontario Multi-Employer Pension Plan Solvency Funding Exemption
Ontario Regulation 447/09
Regulation - LGIC
Bill or Act:
Pension Benefits Act
Summary of Decision:
Filed: November 27, 2009
Published on e-Laws: November 30, 2009
Printed in The Ontario Gazette: December 12, 2009
December 2, 2009
Summary of Proposal:
This regulation amends Regulation 909 to extend for two years both the surplus sharing regulation and the temporary Specified Ontario Multi-Employer Pension Plan (SOMEPP) solvency funding exemption (the SOMEPP regulations), to December 31, 2011 and September 1, 2012 respectively.
The surplus sharing regulation requires the agreement of two thirds of plan members and such number of others (pensioners/beneficiaries) as the Superintendent of Financial Services indicates is appropriate in the circumstances, before surplus is distributed on plan wind up.
The SOMEPP regulations provide a temporary solvency funding moratorium for certain multi-employer pension plans (MEPPs) where an election is made to become a SOMEPP. While the extension continues to temporarily exempt SOMEPPs from solvency funding requirements, such plans are required to target full funding on a going-concern basis.
Pension Benefits Standards Policy
Pension and Income Security Policy Branch
Ministry of Finance
5th Floor, Frost Building South
7 Queen's Park Crescent
Toronto ON M7A 1Y7
November 27, 2009