Regulation - LGIC
Proposed Amendment to Ontario Regulation 909: Special Orders by the Superintendent
Regulation Number(s):
Regulation 909
Instrument Type:
Regulation - LGIC
Bill or Act:
Pension Benefits Act
Summary of Proposal:
Subsection 87(6) of the Pension Benefits Act (PBA), not yet in force, provides that, in prescribed circumstances, the Superintendent may make a special order requiring an administrator, an employer or any other person to prepare and file a new valuation report or another prescribed type of report in respect of a pension plan. Special orders could be issued in prescribed circumstances if the Superintendent believes there are reasonable and probable grounds to believe that benefits are at risk or there has been a significant change in the plan's circumstances. Special orders would not be subject to the Notice of Intended Decision process and would be appealed directly to the Financial Services Tribunal.
The proposed regulation would prescribe the following as circumstances when a special order could be made:
• There has been a decline in the number of members of the pension plan;
• There has been a decrease in contributions by the employer or relevant person or entity required to make contributions on behalf of the employer;
• There has been a decrease in the going concern assets or solvency assets; or
• The employer has sold, assigned or otherwise disposed of all or part of the employer's business or the assets of that business to another person or entity.
The proposed regulation is part of a larger package of amendments set out in Bill 236, An Act to amend the Pension Benefits Act, which received royal assent on May 18, 2010 and Bill 120, the Securing Pension Benefits Now and for the Future Act, 2010, which received Royal Assent on December 8, 2010. Once proclaimed, these amendments will grant additional powers to the Superintendent, including the ability to impose actuarial methods and assumptions in ordering the preparation of a new valuation report. These amendments will be proclaimed into force at the same time as the provisions pertaining to special orders.
The proposed regulation would prescribe the following as circumstances when a special order could be made:
• There has been a decline in the number of members of the pension plan;
• There has been a decrease in contributions by the employer or relevant person or entity required to make contributions on behalf of the employer;
• There has been a decrease in the going concern assets or solvency assets; or
• The employer has sold, assigned or otherwise disposed of all or part of the employer's business or the assets of that business to another person or entity.
The proposed regulation is part of a larger package of amendments set out in Bill 236, An Act to amend the Pension Benefits Act, which received royal assent on May 18, 2010 and Bill 120, the Securing Pension Benefits Now and for the Future Act, 2010, which received Royal Assent on December 8, 2010. Once proclaimed, these amendments will grant additional powers to the Superintendent, including the ability to impose actuarial methods and assumptions in ordering the preparation of a new valuation report. These amendments will be proclaimed into force at the same time as the provisions pertaining to special orders.
Further Information:
Draft Regulation Superintendent Powers Special Orders
(Download Adobe Reader)
Pension Benefits Act
Regulation 909
Proposal Number:
17-MOF005
Posting Date:
April 28, 2017
Comments Due Date:
June 12, 2017
Contact Address:
Superintendent Powers - Special Orders
Pension Initiatives Unit, Pension Policy Branch
Ministry of Finance
5th Floor, Frost Building South
7 Queen's Park Crescent East
Toronto, ON
M7A 1Y7
or
Pension.feedback@ontario.ca
Pension Initiatives Unit, Pension Policy Branch
Ministry of Finance
5th Floor, Frost Building South
7 Queen's Park Crescent East
Toronto, ON
M7A 1Y7
or
Pension.feedback@ontario.ca