GENERAL, O. Reg. 520/20

• Jurisdiction: Ontario

ontario regulation 520/20

made under the

Pension Benefits Act

Made: September 17, 2020
Filed: September 21, 2020
Published on e-Laws: September 21, 2020
Printed in The Ontario Gazette: October 10, 2020

Amending Reg. 909 of R.R.O. 1990

(GENERAL)

1. (1) Regulation 909 of the Revised Regulations of Ontario, 1990 is amended by adding the following section:

Deferral of certain contributions to 2021

4.1 (1) An employer of a pension plan that is not an ineligible plan, as described in subsection (25), may elect to defer one or more of the monthly payments of employer contributions that are due during the period beginning on October 1, 2020 and ending on March 31, 2021 in respect of the following:

1. Normal cost.

2. The provision for adverse deviations in respect of the normal cost.

3. All special payments determined in accordance with section 5.

(2) An election under subsection (1) must,

(a) be filed with the Chief Executive Officer in writing, and accompanied by the schedule described in subsection (3), no later than the date on which the contributions for the first deferred month are due; and

(b) specify which monthly payment or payments are deferred and, if more than one monthly payment is deferred, the deferred payments must be in respect of consecutive months.

(3) If an employer makes an election under this section to defer one or more monthly payments, subsection 4 (4) does not apply in respect of the payment or payments and instead the deferred payments shall be made in accordance with a schedule prepared by an actuary that satisfies the following requirements:

1. The schedule must set out the contributions for each deferred month, determined by the actuary, in respect of the following:

i. Normal cost.

ii. The provision for adverse deviations in respect of the normal cost.

iii. Special payments determined in accordance with section 5.

2. The schedule must set out the amounts and dates on which the employer will make the deferred payments, and the amounts and dates chosen must comply with the following:

i. 50 per cent of the total amount of the payments that would have been required to be made under subsection 4 (4) in the month of October 2020 shall be made, with interest, no later than April 30, 2021 and the remaining amount shall be made, with interest, no later than May 31, 2021.

ii. 50 per cent of the total amount of the payments that would have been required to be made under subsection 4 (4) in the month of November 2020 shall be made, with interest, no later than June 30, 2021 and the remaining amount shall be made, with interest, no later than July 31, 2021.

iii. 50 per cent of the total amount of the payments that would have been required to be made under subsection 4 (4) in the month of December 2020 shall be made, with interest, no later than August 31, 2021 and the remaining amount shall be made, with interest, no later than September 30, 2021.

iv. 50 per cent of the total amount of the payments that would have been required to be made under subsection 4 (4) in the month of January 2021 shall be made, with interest, no later than October 31, 2021 and the remaining amount shall be made, with interest, no later than November 30, 2021.

v. 50 per cent of the total amount of the payments that would have been required to be made under subsection 4 (4) in the month of February 2021 shall be made, with interest, no later than December 31, 2021 and the remaining amount shall be made, with interest, no later than January 31, 2022.

vi. 50 per cent of the total amount of the payments that would have been required to be made under subsection 4 (4) in the month of March 2021 shall be made, with interest, no later than February 28, 2022 and the remaining amount shall be made, with interest, no later than March 31, 2022.

3. The schedule must set out the following information, determined by the actuary, in respect of the pension plan as of the first day of the month in which the election is filed:

i. The estimated transfer ratio.

ii. The solvency assets.

iii. The prior year credit balance.

iv. The estimated solvency liabilities.

v. Estimated liabilities for benefits, other than pension benefits and ancillary benefits payable under qualifying annuity contracts, that were excluded in calculating the solvency liabilities.

(4) For clarity, nothing in this section affects an employer’s, or if a person or entity is required to make contributions on behalf of the employer, that person or entity’s obligation under subsection 4 (4) in respect of payments required in respect of the period beginning on April 1, 2021 and ending on March 31, 2022.

(5) For the purposes of paragraph 2 of subsection (3), interest payable in respect of a deferred payment for a particular month begins to accrue on the day on which the payment is, but for the election under this section, required to be made under subsection 4 (4) and ends on the last day of the month in which the payment is required to be made in accordance with the payment schedule.

(6) The interest on the deferred payments shall be calculated at the going concern interest rate or the solvency valuation interest rate, whichever applies in the circumstances, set out in the most recently filed or submitted report under section 3, 4, 13 or 14.

(7) An update to the payment schedule shall be prepared in accordance with the following rules:

1. The first update must be prepared by an actuary as of the last day of the month that is the third month following the month in which the date on which the first deferred payment would have been required to have been made under subsection 4 (4) had the election not been made. The administrator shall give the update to the Chief Executive Officer no later than 30 days after the last day of the third month.

2. Subject to paragraph 3, a subsequent update must be prepared by an actuary as of the last day of the third month following the month which included the date as of which the first update was required to be prepared, and subsequent updates must be prepared by an actuary on the last day of every third month thereafter. The administrator shall give the update to the Chief Executive Officer no later than 30 days after the last day of the particular month.

3. No further updates are required after an update has been given to the Chief Executive Officer that indicates that all deferred payments with interest have been made.

4. Each update must contain the following information:

i. Information respecting the following:

A. The amount of deferred payments made and interest paid into the pension fund during the three-month period to which the update relates.

B. The amount of the deferred payments to be made and interest to be paid into the pension fund for each of the following that remain outstanding at the end of the three-month period to which the update relates:

1. Normal cost.

2. The provision for adverse deviations in respect of the normal cost.

3. Special payments determined in accordance with section 5.

ii. The following information in respect of the pension plan as of the day on which the update is prepared:

A. The pension plan’s estimated transfer ratio.

B. The pension plan’s solvency assets.

C. The prior year credit balance.

D. The pension plan’s estimated solvency liabilities.

E. Estimated...