U.S. STEEL CANADA INC. PENSION PLANS, O. Reg. 255/17

• Jurisdiction: Ontario

ontario regulation 255/17

made under the

Pension Benefits Act

Made: June 30, 2017
Filed: June 30, 2017
Published on e-Laws: June 30, 2017
Printed in The Ontario Gazette: July 15, 2017

U.S. Steel Canada Inc. Pension Plans

PART I
General

Purpose

1. (1) This Regulation implements, in part, the following agreements, each of which is effective as of June 30, 2017:

1. The agreement between the employer, Bedrock Industries Canada L.P., the Superintendent of Financial Services and Her Majesty the Queen in Right of Ontario.

2. The agreement in respect of the Lake Erie Salaried Plan between the employer and the Non-USW Active and Retiree Beneficiaries of the Lake Erie Salaried Plan, with the exception of the opt-out individuals within the meaning of the representation order.

3. The agreement in respect of the Hamilton Salaried Plan between the employer and the Non-USW Active and Retiree Beneficiaries of the Hamilton Salaried Plan, with the exception of the opt-out individuals within the meaning of the representation order.

4. The agreement in respect of the Pickle Line Plan between the employer and the Non-USW Active and Retiree Beneficiaries of the Pickle Line Plan, with the exception of the opt-out individuals within the meaning of the representation order.

5. The agreement in respect of the Hamilton Bargaining Unit Plan between the employer and Local Union No. 1005 United Steel, Paper and Forestry Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union.

6. The agreement in respect of the Lake Erie Bargaining Unit Plan between the employer and Local Union No. 8782 United Steel, Paper and Forestry Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union.

7. The agreement in respect of the Pickle Line Plan between the employer and Local Union No. 8782B United Steel, Paper and Forestry Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union.

(2) The agreement listed in paragraph 1 of subsection (1) provides for,

(a) the administration of the main pension plans and the employer’s funding obligations with respect to those plans;

(b) the aggregate funding of the main pension plans and the allocation of the aggregate contributions among them; and

(c) special funding requirements for the new pension plans from the date of their establishment until December 31, 2027.

(3) The agreements listed in paragraphs 2 to 7 of subsection (1) are the agreements referred to in subsections 75 (5) and 102.1 (3) and (6) of the Act.

(4) In this section,

“Non-USW Active and Retiree Beneficiaries” means, in relation to a pension plan, the individuals described in the definition of “Non-USW Active and Retiree Beneficiaries” in the representation order with respect to that pension plan;

“representation order” means the order of the Ontario Superior Court of Justice in court file number CV-14-10695-00CL dated October 8, 2014, entitled “Representative Counsel Appointment Order”.

Interpretation

2. (1) In this Regulation,

“adjusted solvency assets” has the meaning set out in subsection (3);

“adjusted solvency deficiency” has the meaning set out in subsection (4);

“allocation process” means the process set out in this Regulation for determining the proportion of the contributions described in sections 13 to 18 that is to be set out in the report described in subsection 20 (4) and annual reports for each of the main pension plans and allocated accordingly;

“employer” means U.S. Steel Canada Inc.;

“General Regulation” means Regulation 909 of the Revised Regulations of Ontario, 1990 (General) made under the Act;

“initial solvency deficiency” means, in relation to a pension plan, the amount, if any, by which the solvency liabilities of the plan exceed the adjusted solvency assets of the plan as set out in the initial valuation report required by section 20;

“initial valuation report” means, in relation to a pension plan, the initial valuation report required to be filed under subsection 20 (1);

“initial wind up ratio” means, in relation to a pension plan, the initial wind up ratio as set out in the report required to be filed under subsection 20 (4);

“main pension plans” means, subject to section 4, the following pension plans:

1. The pension plan known as the U.S. Steel Canada Inc. Retirement Plan for USW Local 8782 Members at Lake Erie Works, registered under the Act as number 0698761 and referred to in this Regulation as the Lake Erie Bargaining Unit Plan.

2. The pension plan known as the U.S. Steel Canada Inc. Retirement Plan for Salaried Employees at Lake Erie Works, registered under the Act as number 0698753 and referred to in this Regulation as the Lake Erie Salaried Plan.

3. The pension plan known as the U.S. Steel Canada Inc. Retirement Plan for USW Local 1005 Members at Hamilton Works, registered under the Act as number 0354878 and referred to in this Regulation as the Hamilton Bargaining Unit Plan.

4. The pension plan known as the U.S. Steel Canada Inc. Retirement Plan for Salaried Employees at Hamilton Works, registered under the Act as number 0338509 and referred to in this Regulation as the Hamilton Salaried Plan.

5. The pension plan known as the U.S. Steel Canada Inc. Retirement Plan for Employees at the Pickle Line Department of Lake Erie Works, registered under the Act as number 1206457 and referred to in this Regulation as the Pickle Line Plan;

“new pension plans” means, subject to section 3, pension plans established by the employer to be successor pension plans to one or more of the main pension plans to provide pension benefits, for service on and after January 1, 2018, to individuals who are represented by a trade union and are active members of the Lake Erie Bargaining Unit Plan, the Hamilton Bargaining Unit Plan or the Pickle Line Plan on December 31, 2017;

“plan implementation date” means the date on which the plan of arrangement under the Companies’ Creditors Arrangement Act (Canada) proposed by U.S. Steel Canada Inc. to emerge from creditor protection as a going concern has been implemented, which date will be referenced in a certificate of the monitor filed with the Ontario Superior Court of Justice;

“wind up ratio” means, in relation to a main pension plan, the ratio of the adjusted solvency assets of the plan to the plan’s solvency liabilities as determined in a report required under this Regulation.

(2) Expressions in this Regulation have the same meaning as in the General Regulation, except where otherwise indicated.

(3) The adjusted solvency assets of a main pension plan as of a particular valuation date is the amount of the solvency assets of the plan excluding,

(a) any estimated wind up expenses;

(b) any contingent assets, such as the special partnership interest and any interest in, or amounts payable from, any trust established on the plan implementation date; and

(c) any accrued or receivable contributions not yet received as of the filing date of the valuation report with respect to the valuation date.

(4) The adjusted solvency deficiency of a main pension plan as of a particular valuation date or other specified date is the amount, if any, by which the solvency liabilities exceed the adjusted solvency assets of the pension plan.

(5) For the purposes of this Regulation, benefit improvements are made under a pension plan if,

(a) an amendment to the plan affects the pensions, pension benefits or ancillary benefits provided by the plan and increases the amount of the normal cost, the going concern liabilities or the solvency liabilities of the plan; and

(b) the amendment is filed on or after June 30, 2017.

End date, “new pension plan”

3. (1) A pension plan ceases to be a new pension plan for the purposes of this Regulation on the earliest of the following days:

1. The plan has been wound up and all of the assets of the pension plan’s pension fund have been disbursed.

2. The day an election is filed under section 34 to fund the pension plan in accordance with the General Regulation.

3. December 31, 2027.

(2) Despite subsection (1), a pension plan that was a new pension plan before the earliest of the days described in subsection (1) continues to be governed by section 28 of this Regulation until the pension plan is wound up and all the assets of its pension fund have been disbursed.

End date, “main pension plan”

4. A pension plan ceases to be a main pension plan for the purposes of this Regulation when it has been wound up and all of the assets of its pension fund have been disbursed.

Application of General Regulation

5. (1) The General Regulation applies to the main pension plans and the new pension plans except as provided in this Regulation.

(2) For greater certainty, the General Regulation applies instead of this Regulation with respect to the funding of the new pension plans on and after the earlier of,

(a) the day an election is filed under section 34 to fund the pension plan in accordance with the General Regulation; and

(b) December 31, 2027.

Reports to the Superintendent — general

6. (1) Every report required under this Regulation must be prepared and certified by an actuary.

(2) The following are not permitted in the preparation of a report required under this Regulation:

1. The use of an averaging method that stabilizes short-term fluctuations in the market value of the plan assets in the calculation of a “solvency asset adjustment”, as that term is defined in subsection 1 (2) of the General Regulation, in a solvency valuation.

2. The use of an averaging method to determine the value of going concern assets for the purposes of a going concern valuation.

(3) In a report filed under this Regulation, the prior year credit balance shall be set at zero.

(4) If the period covered by a valuation report filed under this Regulation has ended, and no report covering a subsequent period...