The Lieutenant Governor in Council makes the Employment Pension Plans (Partial Exemption and Consolidation of Solvency Deficiencies) Amendment Regulation set out in the attached Appendix.
Employment Pension Plans Act
EMPLOYMENT PENSION PLANS
EXEMPTION AND CONSOLIDATION
OF SOLVENCY DEFICIENCIES)
1 Schedule 0.2 to the Employment Pension Plans Regulation (AR 35/2000) is amended by this Regulation.
2 Section 3.2 is amended
(a) in subsection (1) by striking out “and in section 3.3”;
(b) by repealing subsection (10).
3 The following is added after section 3.2:
Non‑SMEPPs and section 48(3)(c) —
solvency deficiencies and extension of 5‑year period
3.21(1) In this section, “extension period” means the maximum 10‑year period over which the Superintendent allows payments to be made under subsection (3).
(2) This section applies only to pension plans that contain defined benefit provisions and that are not specified multi‑employer plans.
(3) An administrator may, with respect to solvency deficiencies that are identified in an actuarial valuation report and cost certificate that
(a) are or were prepared as of a review date occurring within the year and a day period beginning on December 31, 2011 and ending on December 31, 2012,
(b) show those solvency deficiencies as at that review date and proposals for their consolidation, and
(c) meet the other requirements set in writing by the Superintendent,
apply to the Superintendent in the form and manner required by the Superintendent for, and the Superintendent may in writing, consent to the pension plan’s consolidating those solvency deficiencies into one solvency deficiency and, with respect to that one consolidated solvency deficiency, to the employer’s making payments that an employer is or was required by section 48(3)(c) of this Regulation to pay into the plan over a period not exceeding 10 years from the applicable review date and that is specified in the consent, on the conditions specified in this section.
(4) An administrator may make only one application in total under subsection (3).
(5) The administrator must submit, along with the application under subsection (3),
(a) the actuarial valuation report and cost certificate to which the application relates and that complies with subsection (3), and
(b) any other documents required by the Superintendent.
(6) When a person becomes entitled to receive a benefit payment, other than an ongoing pension payment, from the pension plan and during the extension period, the employer must
(a) make one single lump sum payment to the plan, in an amount that is equal to any transfer deficiency that exists and to the extent that it relates to the person, before making the payment to or on behalf of the person, or
(b) include a payment in the same amount in the next remittance of contributions.
(7) An administrator who wishes to revert to the 5‑year application of section 48(3)(c) of this Regulation may do so within the extension period by notifying the Superintendent in writing of that intention and by filing an actuarial valuation report and cost certificate that reflect the change in the amortization schedule and meet the requirements of section 48 of this Regulation and section 48 of the Act.
(8) The Superintendent’s consent under subsection (3) applies or continues to apply only if
(a) section 48, including the testing required by section 48(2), of the Act and, subject to subsection (9), section 48 of this Regulation and the other provisions of this section continue to be complied with,
(b) the results of that testing are reported in each actuarial valuation report and cost certificate, and
(c) any other relevant conditions imposed by the Superintendent under section 4.1 of this Regulation are complied with.
(9) This section applies notwithstanding anything in section 48 of this Regulation.
4 Section 3.3 is amended
(a) by renumbering it as section 3.3(1);
(b) in subsection (1) by striking out “or 3.2” and substituting “, 3.2 or 3.21”;
(c) by adding the following after subsection (1):
(2) In subsection (1), “extension period” means the maximum 10‑year period over which the Superintendent allows payments to be made under section 3.2(2) or 3.21(3), as the case may be.
(3) Section 2(2)(b)(ii)(B) of this Regulation is to be treated as amended by adding “(or, where applicable, any extension period as defined in section 3.2(1) or 3.21(1) of Schedule 0.2)” after “date”.