Exemption (Public Sector Pension) Regulation

(Consolidated up to 149/2019) ALBERTA REGULATION 3/2019 Employment Pension Plans Act EXEMPTION (PUBLIC SECTOR PENSION) REGULATION Table of Contents 1 Definitions 2 Division of Regulation 3 EPPA compliance not prohibited 4 Responsibilities of Corporations 5 Payment of pension partner’s share of contributions in relationship breakdown 6 Consequential amendments 7 Coming into force Schedule 1 — Local Authorities Pension Plan Schedule 2 — Public Service Pension Plan Schedule 3 — Special Forces Pension Plan Definitions 1 (1) In this Regulation, (a) “AIMCo” means the Alberta Investment Management Corporation; (b) “APS” means the Alberta Pensions Services Corporation; (c) “Corporation” means one or more of (i) the LAPP Corporation established under Schedule 1 to the JGA, (ii) the PSPP Corporation established under Schedule 2 to the JGA, and (iii) the SFPP Corporation established under Schedule 3 to the JGA; (d) “EPPA” means the Employment Pension Plans Act ; (e) “EPPR” means the Employment Pension Plans Regulation (AR 154/2014); (f) “JGA” means the Joint Governance of Public Sector Pension Plans Act , and includes the applicable Schedule or Schedules to the JGA; (g) “LAPP” means the Local Authorities Pension Plan continued under Schedule 1 to the JGA; (h) “Plan” means one or more of the LAPP, PSPP and SFPP, as the context requires; (i) “PSPP” means the Public Service Pension Plan continued under Schedule 2 to the JGA; (j) “SFPP” means the Special Forces Pension Plan continued under Schedule 3 to the JGA; (k) “transition date” means March 1, 2019. (2) Where a term that is defined in the EPPA or the EPPR is used in this Regulation, it has that defined meaning for the purposes of this Regulation except where this Regulation gives it a different meaning. (3) For greater certainty, subject to the JGA and this Regulation, the EPPA and the EPPR apply to the Plans. (4) A reference in the EPPA or the EPPR concerning “compliance with”, a “breach of”, or action “in accordance with” or “prohibited by” the EPPA or the EPPR, or other similar references in respect of the EPPA or the EPPR, shall be read as being subject to the JGA and this Regulation. Division of Regulation 2 Apart from sections 1 to 7, this Regulation is divided into (a) Schedule 1, containing provisions relating to the LAPP; (b) Schedule 2, containing provisions relating to the PSPP; (c) Schedule 3, containing provisions relating to the SFPP. EPPA compliance not prohibited 3 Without limiting section 1(3), where a Schedule to this Regulation sets out an exemption from the EPPA or the EPPR, with or without conditions, the Plan to which the Schedule applies shall be administered in accordance with either (a) the exemption and any condition that applies, or (b) the EPPA and the EPPR, despite the exemption and any condition that applies. Responsibilities of Corporations 4 (1) For the purposes of section 51(a) of the EPPA and section 58(1) of the EPPR, a Corporation may, as the fundholder of a pension fund, hold the assets of the pension fund (a) in the name of AIMCo as nominee and bare trustee in accordance with an investment management agreement, custodial agreement, trust agreement or other agreement entered into with AIMCo on behalf of the applicable Plan that clearly indicates that the investment is held for that Plan, (b) in the name of the Crown in right of Alberta as nominee and bare trustee, but only for a period expiring no later than one year after the transition date, in accordance with an investment management agreement, custodial agreement, trust agreement or other agreement entered into with AIMCo on behalf of the applicable Plan that clearly indicates that the investment is held for that Plan, or (c) in the case of assets held for the purpose of paying benefits under the EPPA, in the name of the Crown in right of Alberta as may be intermingled with the assets of other pension plans administered by the Crown in right of Alberta or by another Corporation, but only for a period expiring no later than 2 years after the transition date, in accordance with an agreement or arrangement entered into with the Crown in right of Alberta. (2) If a Corporation, as the fundholder of a pension fund, holds any part or all of the assets of the pension fund in the name of (a) AIMCo, or (b) the Crown in right of Alberta, including in an account intermingled with the assets of other pension plans administered by the Crown in right of Alberta or by another Corporation, in accordance with this Regulation and the provisions of an agreement or arrangement between the Corporation and AIMCo or the Crown in right of Alberta, as the case may be, the Corporation is deemed to hold those assets in compliance with its duties and responsibilities as an administrator and a fundholder under the EPPA. Payment of pension partner’s share of contributions in relationship breakdown 5 Despite section 81 of the EPPR, which sets out the conditions prescribed for the purposes of sections 81 and 83(3) of the EPPA, the manner in which benefits are to be divided and the distribution of the non‑member pension partner’s share for the purpose of section 81 of the EPPA, if a member pension partner’s pension has not vested, the non‑member pension partner’s share of the member pension partner’s contributions may be paid to the non‑member pension partner as a lump sum. 6 (This section amends the EPPR; the amendments have been incorporated into that Regulation.) Coming into force 7 This Regulation comes into force on March 1, 2019. Schedule 1 Local Authorities Pension Plan Part 1 EPPA Exemptions Permanent exemption without conditions 1 The Plan is exempt from the application of the following provisions of the EPPA: section 52(3); section 56(3) and (5); section 74(3) and (4); section 114; section 127. Other permanent exemptions 2 (1) Repealed AR 149/2019 s3. (2) Repealed AR 149/2019 s3. (3) The Plan is exempt from the application of section 29(1) of the EPPA on the condition that an employee of a participating employer who falls within a class of employees for whom the Plan is maintained is entitled under the plan text document to become a member of the Plan if (a) the aggregate of the employee’s regularly scheduled hours of work with the participating employer is not less than 30 hours per week, and (b) no date or event has been established for the termination of the employee’s employment other than by reference to the attainment of a mandatory retirement age. (4) The Plan is exempt from the application of section 32(1) of the EPPA as it applies to a member’s termination of active membership in the Plan while the member is employed in Alberta in employment other than federally regulated employment on the condition that the plan text document must (a) establish a vesting period of the earlier of (i) the member attaining 65 years of age while an active member, or (ii) the member having completed at least 2 years consisting of a period or periods indicated in the plan text document as counting toward vesting, and (b) if the member’s pension has not vested at the time of the member’s termination, authorize the member, in relation to the member’s contributions to the Plan up to the date of the member’s termination, to (i) receive or transfer from the Plan an amount equal to those contributions, with interest, or (ii) transfer an amount from the Plan to another pension plan as permitted by and in accordance with a pension transfer agreement. (4.1) The Plan is exempt from the application of section 35(7)(a) of the EPPA as it applies to the Corporation in respect of the role of APS under section 17(1) of Schedule 1 to the JGA and the role of AIMCo under section 17.1(2)(a) of Schedule 1 to the JGA. (5) The Plan is exempt from the application of section 36(1) of the EPPA as it applies to the Corporation in respect of (a) a participating employer in the Plan on the transition date. (b) repealed AR 149/2019 s3. (6) The Plan is exempt from the application of section 48 of the EPPA as it applies in respect of (a) a participating employer in the Plan on the transition date. (b) repealed AR 149/2019 s3. (6.1) The Plan is exempt from the application of section 57(2.1) of the EPPA as it applies to any contributions that were made by a member to meet the Plan’s previous unfunded liability in respect of service that was recognized as pensionable service, and the benefits that were in place, as at December 31, 1991. (7) The Plan is exempt from the application of section 67(1) of the EPPA on the condition that the plan text document must allow a member to start receiving the member’s pension on a reduced basis at any time upon attaining the age of 55 years provided that the member’s pension has vested and the member has terminated the member’s active membership. (8) The Plan is exempt from the application of section 70 of the EPPA as it applies to contributions made entirely by a member to secure improvements in, or to purchase, benefits related to past service before or after the initial legislation date, excluding contributions received by the Plan on a locked-in basis, on the condition that, on the member’s termination of active membership in the Plan, and provided that the member’s pension has vested and the member has not reached the member’s pension commencement date, the plan text document must allow the member to (a) receive or transfer from the Plan an amount equal to those contributions, with interest, or (b) transfer those contributions, with interest, from the Plan to another pension plan in accordance with a pension transfer agreement. (9) Repealed AR 149/2019 s3. (10) The Plan is exempt from the application of section 71(1) of the EPPA on the condition that the plan text document must provide that a deferred member or, if the deferred member is deceased, the deferred member’s surviving pension partner, is entitled to receive payment of a lump sum amount equal to the total of the commuted value of the benefit to which the deferred member or surviving pension partner is entitled under the Plan if (a) the monthly payments that would or will be or that would have been payable under a defined benefit provision to the deferred member or the deceased, as the case may be, (i) on reaching the age of 65 years, in the case of a person who terminated or died, as the case may be, before reaching that age, or (ii) at termination or death, as the case may be, in the case of a person who terminated or died having reached that age do not exceed 1/12 of 4% of the Year’s Maximum Pensionable Earnings for the calendar year in which the most recent determination of the amount of the lump sum occurred, or (b) where payment or transfer of the commuted value under Division 5 or 8 of Part 8 of the EPPA, as the case may be, is allowed, the commuted value to which that deferred member or surviving pension partner is entitled does not exceed 20% of that Year’s Maximum Pensionable Earnings. (11 ) The Plan is exempt from the application of section 74(1)(a) and (b) of the EPPA as it applies to a transfer of the assets of the Plan to another pension plan if, and to the extent that, the transfer is authorized under this Regulation. (12) The Plan is exempt from the application of section 76(1)(b) of the EPPA on the condition that, if the plan text document provides that a member may elect to have the member’s pension payments increased for the period prescribed in section 77(1) of the EPPR by an amount determined by reference to any amounts payable under the CPP Act, then the plan text document must also provide that such an election may be made only if (a) the election is made on or before the member’s pension commencement date, and (b) the monthly pension payments payable to the member after the increased benefits and any increased benefits elected by the member in relation to the OAS Act have ceased are not less than 1/12 of 4% of the Year’s Maximum Pensionable Earnings for the calendar year in which the most recent determination of the amount of the member’s increased pension payments occurred. (13) The Plan is exempt from the application of section 76(3) of the EPPA on the condition that, if the plan text document provides that a member may elect to have the member’s pension payments increased for the period prescribed in section 77(1) of the EPPR by an amount determined by reference to any amounts payable under the OAS Act, then the plan text document must also provide that such an election may be made only if (a) the election is made on or before the member’s pension commencement date, and (b) the monthly pension payments payable to the member after the increased benefits and any increased benefits elected by the member in relation to the CPP Act have ceased are not less than 1/12 of 4% of the Year’s Maximum Pensionable Earnings for the calendar year in which the most recent determination of the amount of the member’s increased pension payments occurred. (14) The Plan is exempt from the application of section 76(4) of the EPPA on the condition that, if the plan text document provides for the reduction of a pension because of a member’s entitlement to any payments under the CPP Act or the OAS Act or both, as the case may be, the reduction must not exceed the maximum CPP pension or the maximum OAS pension, or both, as the case may be, as of the member’s pension commencement date. (15) The Plan is exempt from the application of sections 136(8), 138(5) and 143(4) of the EPPA as they apply to an administrative penalty, expense or fine, or any portion of an administrative penalty, expense or fine, imposed on the Corporation, AIMCo or APS. Temporary exemption without conditions 3 For the period of 2 years commencing on the transition date, the Plan is exempt from the application of sections 42 and 44 of the EPPA. Other temporary exemptions 4 (1) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 10(1)(a) of the EPPA as it applies to the use of mortality tables in the calculation of the contributions required to be made by a member to secure improvements in, or to purchase, benefits related to past service on the condition that gender distinct mortality tables are used in the calculations. (2) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 10(1)(b) of the EPPA as it applies to the use of mortality tables in the calculation of pensions and benefits on the condition that gender distinct mortality tables are used in the calculations. (3) Repealed AR 149/2019 s3. (4) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 37(1) of the EPPA on the condition that the Corporation must continue the statement and disclosure practices, including with respect to form and timing, existing immediately before the transition date in respect of the Plan until the Corporation is able to comply with section 37(1) of the EPPA and the corresponding provisions of the EPPR. (5) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 37(2) and (4) of the EPPA to the extent that a person, participating employer or union has requested access to information or a record that is not available and the provision of which is subject to the temporary exemption set out in subsection (4); however, the Corporation must comply with the request if the person, participating employer or union is entitled to the information or records under section 37(1) of the EPPA and the requested information or record is available. (6) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 43 of the EPPA on the condition that, during the term of this exemption, the Corporation continues to use the general policy guidelines concerning the investment and management of the pension fund that were in place immediately prior to the transition date. (7) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 62(3) of the EPPA as it applies to Plan assets held for the purpose of paying benefits under the EPPA on the condition that such Plan assets are held in an account in the name of the Crown in right of Alberta, which may be intermingled with assets of other pension plans administered by the Crown in right of Alberta or a Corporation. Part 2 EPPR Exemptions Permanent exemption without conditions 5 The Plan is exempt from the application of the following provisions of the EPPR: section 23; section 31(4)(c); section 32(3)(a); section 34(4)(c) and (g)(vi); section 35(4)(f); section 36(3)(b), (4)(e) and (5)(c); section 37(6)(a)(ii)(D); section 40(5)(d)(vi), (e) and (g); section 55(e); section 62; section 75(3)(c); section 90. Other permanent exemptions 6 (1) The Plan is exempt from the application of section 49(5)(d)(ii) of the EPPR on the condition that an actuarial valuation report and a cost certificate must include a calculation of the Plan’s solvency deficiency, if any. (2) The Plan is exempt from the application of section 49(7)(b) of the EPPR as it applies to a solvency deficiency. (3) The Plan is exempt from the application of section 151 of the EPPR as it applies to the filing fee required upon the registration of the Plan; however, section 151 applies in respect of the calculation of the fee referred to in section 47(3) of the EPPR. Temporary exemptions 7 (1) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 9(5) of the EPPR on the condition that, if the payment or transfer of a benefit under a benefit formula provision occurs more than 365 days after the date on which the commuted value of the benefit was determined, the commuted value of the benefit must be re‑determined as at a date that is not more than 30 days before the date of the payment or transfer of that benefit. (2) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 76(4) of the EPPR to the extent that it requires the use of Form 6 of Schedule 6 to the EPPR on the condition that the statement required under this exemption must be substantially in the form used for the Plan immediately before the transition date for generally the same purpose as set out in section 71(6) of the EPPA. (3) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of (a) section 81(5) of the EPPR, and (b) section 83(2) of the EPPR as it applies to the division of a pension in accordance with section 81(5) on the condition that, where a pension has already commenced to be paid to a member pension partner, the non‑member pension partner’s share is to be paid directly to the non‑member pension partner in the form of a pension which, for the purposes of the Plan, is a portion of the member pension partner’s pension and the member pension partner shall receive the remaining balance of the pension as the member pension partner’s share of the pension. (4) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 82(14) of the EPPR on the condition that, if the non‑member pension partner’s share is a benefit determined with reference to a benefit formula provision of the plan text document, and if the payment or transfer of the non‑member pension partner’s share occurs more than 365 days after the date on which the commuted value of the benefit was determined, the commuted value of the benefit must be re‑determined as at a date that is not more than 30 days before the date of the payment or transfer of that benefit. (5) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 85 of the EPPR to the extent that it requires the use of Form 5 of Schedule 6 to the EPPR on the condition that the statement required under this exemption must be substantially in the form used for the Plan immediately before the transition date for generally the same purpose as set out in section 89(1)(b) of the EPPA. (6) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 86(1) and (2) of the EPPR to the extent that it requires the use of Form 4 and Form 9 of Schedule 6 to the EPPR on the condition that the statements required under this exemption must be substantially in the form used for the Plan immediately before the transition date for generally the same purpose as set out, (a) in the case of section 86(1), in section 90(4)(a) of the EPPA, and (b) in the case of section 86(2), in section 90(6) of the EPPA. (7) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 142(c)(ii) of the EPPR as it applies to the deceased member’s pension partner’s signing of a waiver in Form 5 or Form 9 of Schedule 6 to the EPPR on the condition that the waivers signed in respect of the matters referred to in Form 5 or Form 9, as applicable, must be substantially in the form used for the Plan immediately before the transition date. AR 3/2019 Sched 1;149/2019 Schedule 2 Public Service Pension Plan Part 1 EPPA Exemptions Permanent exemption without conditions 1 The Plan is exempt from the application of the following provisions of the EPPA: section 52(3); section 56(3) and (5); section 71(3)(a); section 74(3) and (4); section 114; section 127. Other permanent exemptions 2 (1) Repealed AR 149/2019 s3. (2) Repealed AR 149/2019 s3. (3) The Plan is exempt from the application of section 29(1) of the EPPA on the condition that an employee of a participating employer who falls within a class of employees for whom the Plan is maintained is entitled under the plan text document to become a member of the Plan if (a) the aggregate of the employee’s regularly scheduled hours of work with the participating employer is not less than 30 hours per week, and (b) no date or event has been established for the termination of the employee’s employment other than by reference to the attainment of a mandatory retirement age. (4) The Plan is exempt from the application of section 32(1) of the EPPA as it applies to a member’s termination of active membership in the Plan while the member is employed in Alberta in employment other than federally regulated employment on the condition that the plan text document must (a) establish a vesting period of the earlier of (i) the member attaining 65 years of age while an active member, or (ii) the member having completed at least 2 years consisting of a period or periods indicated in the plan text document as counting toward vesting, and (b) if the member’s pension has not vested at the time of the member’s termination, authorize the member, in relation to the member’s contributions to the Plan up to the date of the member’s termination, to (i) receive or transfer from the Plan an amount equal to those contributions, with interest, or (ii) transfer an amount from the Plan to another pension plan as permitted by and in accordance with a pension transfer agreement. (4.1) The Plan is exempt from the application of section 35(7)(a) of the EPPA as it applies to the Corporation in respect of the role of APS under section 17(1) of Schedule 2 to the JGA and the role of AIMCo under section 17.1(2)(a) of Schedule 2 to the JGA. (5) The Plan is exempt from the application of section 36(1) of the EPPA as it applies to the Corporation in respect of (a) a participating employer in the Plan on the transition date. (b) repealed AR 149/2019 s3. (6) The Plan is exempt from the application of section 48 of the EPPA as it applies in respect of (a) a participating employer in the Plan on the transition date. (b) repealed AR 149/2019 s3. (6.1) The Plan is exempt from the application of section 57(2.1) of the EPPA as it applies to any contributions that were made by a member to meet the Plan’s previous unfunded liability in respect of service that was recognized as pensionable service, and the benefits that were in place, as at December 31, 1991. (7) The Plan is exempt from the application of section 67(1) of the EPPA on the condition that the plan text document must allow a member to start receiving the member’s pension on a reduced basis at any time upon attaining the age of 55 years provided that the member’s pension has vested and the member has terminated the member’s active membership. (8) The Plan is exempt from the application of section 70 of the EPPA as it applies to contributions made entirely by a member to secure improvements in, or to purchase, benefits related to past service before or after the initial legislation date, excluding contributions received by the Plan on a locked-in basis, on the condition that, on the member’s termination of active membership in the Plan, and provided that the member’s pension has vested and the member has not reached the member’s pension commencement date, the plan text document must allow the member to (a) receive or transfer from the Plan an amount equal to those contributions, with interest, or (b) transfer those contributions, with interest, from the Plan to another pension plan in accordance with a pension transfer agreement. (9) Repealed AR 149/2019 s.3. (10) The Plan is exempt from the application of section 71(1) of the EPPA on the condition that the plan text document must provide that a deferred member or, if the deferred member is deceased, the deferred member’s surviving pension partner, is entitled to receive payment of a lump sum amount equal to the total of the commuted value of the benefit to which the deferred member or surviving pension partner is entitled under the Plan if (a) the monthly payments that would or will be or that would have been payable under a defined benefit provision to the deferred member or the deceased, as the case may be, (i) on reaching the age of 65 years, in the case of a person who terminated or died, as the case may be, before reaching that age, or (ii) at termination or death, as the case may be, in the case of a person who terminated or died having reached that age do not exceed 1/12 of 4% of the Year’s Maximum Pensionable Earnings for the calendar year in which the most recent determination of the amount of the lump sum occurred, or (b) where payment or transfer of the commuted value under Division 5 or 8 of Part 8 of the EPPA, as the case may be, is allowed, the commuted value to which that deferred member or surviving pension partner is entitled does not exceed 20% of that Year’s Maximum Pensionable Earnings. (11) The Plan is exempt from the application of section 74(1)(a) and (b) of the EPPA as it applies to a transfer of the assets of the Plan to another pension plan if, and to the extent that, the transfer is authorized under this Regulation. (12) The Plan is exempt from the application of section 76(1)(b) of the EPPA on the condition that, if the plan text document provides that a member may elect to have the member’s pension payments increased for the period prescribed in section 77(1) of the EPPR by an amount determined by reference to any amounts payable under the CPP Act, then the plan text document must also provide that such an election may be made only if (a) the election is made on or before the member’s pension commencement date, and (b) the monthly pension payments payable to the member after the increased benefits and any increased benefits elected by the member in relation to the OAS Act have ceased are not less than 1/12 of 4% of the Year’s Maximum Pensionable Earnings for the calendar year in which the most recent determination of the amount of the member’s increased pension payments occurred. (13) The Plan is exempt from the application of section 76(3) of the EPPA on the condition that, if the plan text document provides that a member may elect to have the member’s pension payments increased for the period prescribed in section 77(1) of the EPPR by an amount determined by reference to any amounts payable under the OAS Act, then the plan text document must also provide that such an election may be made only if (a) the election is made on or before the member’s pension commencement date, and (b) the monthly pension payments payable to the member after the increased benefits and any increased benefits elected by the member in relation to the CPP Act have ceased are not less than 1/12 of 4% of the Year’s Maximum Pensionable Earnings for the calendar year in which the most recent determination of the amount of the member’s increased pension payments occurred. (14) The Plan is exempt from the application of section 76(4) of the EPPA on the condition that, if the plan text document provides for the reduction of a pension because of a member’s entitlement to any payments under the CPP Act or the OAS Act or both, as the case may be, the reduction must not exceed the maximum CPP pension or the maximum OAS pension, or both, as the case may be, as of the member’s pension commencement date. (15) The Plan is exempt from the application of sections 136(8), 138(5) and 143(4) of the EPPA as they apply to an administrative penalty, expense or fine, or any portion of an administrative penalty, expense or fine, imposed on the Corporation, AIMCo or APS. Temporary exemption without conditions 3 For the period of 2 years commencing on the transition date, the Plan is exempt from the application of sections 42 and 44 of the EPPA. Other temporary exemptions 4 (1) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 10(1)(a) of the EPPA as it applies to the use of mortality tables in the calculation of the contributions required to be made by a member to secure improvements in, or to purchase, benefits related to past service on the condition that gender distinct mortality tables are used in the calculations. (2) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 10(1)(b) of the EPPA as it applies to the use of mortality tables in the calculation of pensions and benefits on the condition that gender distinct mortality tables are used in the calculations. (3) Repealed AR 149/2019 s3. (4) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 37(1) of the EPPA on the condition that the Corporation must continue the statement and disclosure practices, including with respect to form and timing, existing immediately before the transition date in respect of the Plan until the Corporation is able to comply with section 37(1) of the EPPA and the corresponding provisions of the EPPR. (5) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 37(2) and (4) of the EPPA to the extent that a person, participating employer or union has requested access to information or a record that is not available and the provision of which is subject to the temporary exemption set out in subsection (4); however, the Corporation must comply with the request if the person, participating employer or union is entitled to the information or records under section 37(1) of the EPPA and the requested information or record is available. (6) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 43 of the EPPA on the condition that, during the term of this exemption, the Corporation continues to use the general policy guidelines concerning the investment and management of the pension fund that were in place immediately prior to the transition date. (7) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 62(3) of the EPPA as it applies to Plan assets held for the purpose of paying benefits under the EPPA on the condition that such Plan assets are held in an account in the name of the Crown in right of Alberta, which may be intermingled with assets of other pension plans administered by the Crown in right of Alberta or a Corporation. Part 2 EPPR Exemptions Permanent exemption without conditions 5 The Plan is exempt from the application of the following provisions of the EPPR: section 23; section 31(4)(c); section 32(3)(a); section 34(4)(c) and (g)(vi); section 35(4)(f); section 36(3)(b), (4)(e) and (5)(c); section 37(6)(a)(ii)(D); section 40(5)(d)(vi), (e) and (g); section 55(e); section 62; section 75(3)(c); section 90. Other permanent exemptions 6 (1) The Plan is exempt from the application of section 49(5)(d)(ii) of the EPPR on the condition that an actuarial valuation report and a cost certificate must include a calculation of the Plan’s solvency deficiency, if any. (2) The Plan is exempt from the application of section 49(7)(b) of the EPPR as it applies to a solvency deficiency. (3) The Plan is exempt from the application of section 151 of the EPPR as it applies to the filing fee required upon the registration of the Plan; however, section 151 applies in respect of the calculation of the fee referred to in section 47(3) of the EPPR. Temporary exemptions 7 (1) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 9(5) of the EPPR on the condition that, if the payment or transfer of a benefit under a benefit formula provision occurs more than 365 days after the date on which the commuted value of the benefit was determined, the commuted value of the benefit must be re‑determined as at a date that is not more than 30 days before the date of the payment or transfer of that benefit. (2) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 76(4) of the EPPR to the extent that it requires the use of Form 6 of Schedule 6 to the EPPR on the condition that the statement required under this exemption must be substantially in the form used for the Plan immediately before the transition date for generally the same purpose as set out in section 71(6) of the EPPA. (3) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of (a) section 81(5) of the EPPR, and (b) section 83(2) of the EPPR as it applies to the division of a pension in accordance with section 81(5) on the condition that, where a pension has already commenced to be paid to a member pension partner, the non‑member pension partner’s share is to be paid directly to the non‑member pension partner in the form of a pension which, for the purposes of the Plan, is a portion of the member pension partner’s pension and the member pension partner shall receive the remaining balance of the pension as the member pension partner’s share of the pension. (4) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 82(14) of the EPPR on the condition that, if the non‑member pension partner’s share is a benefit determined with reference to a benefit formula provision of the plan text document, and if the payment or transfer of the non‑member pension partner’s share occurs more than 365 days after the date on which the commuted value of the benefit was determined, the commuted value of the benefit must be re‑determined as at a date that is not more than 30 days before the date of the payment or transfer of that benefit. (5) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 85 of the EPPR to the extent that it requires the use of Form 5 of Schedule 6 to the EPPR on the condition that the statement required under this exemption must be substantially in the form used for the Plan immediately before the transition date for generally the same purpose as set out in section 89(1)(b) of the EPPA. (6) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 86(1) and (2) of the EPPR to the extent that it requires the use of Form 4 and Form 9 of Schedule 6 to the EPPR on the condition that the statements required under this exemption must be substantially in the form used for the Plan immediately before the transition date for generally the same purpose as set out, (a) in the case of section 86(1), in section 90(4)(a) of the EPPA, and (b) in the case of section 86(2), in section 90(6) of the EPPA. (7) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 142(c)(ii) of the EPPR as it applies to the deceased member’s pension partner’s signing of a waiver in Form 5 or Form 9 of Schedule 6 to the EPPR on the condition that the waivers signed in respect of the matters referred to in Form 5 or Form 9, as applicable, must be substantially in the form used for the Plan immediately before the transition date. AR 3/2019 Sched 2;149/2019 Schedule 3 Special Forces Pension Plan Part 1 EPPA Exemptions Permanent exemption without conditions 1 The Plan is exempt from the application of the following provisions of the EPPA: section 52(3); section 56(3) and (5); section 67(1); section 71(3)(a); section 74(3) and (4); section 114; section 127. Other permanent exemptions 2 (1) Repealed AR 149/2019 s3. (2) Repealed AR 149/2019 s3. (3) The Plan is exempt from the application of section 29(1) of the EPPA on the condition that an employee of a participating employer who falls within a class of employees for whom the Plan is maintained is entitled under the plan text document to become a member of the Plan if (a) the aggregate of the employee’s regularly scheduled hours of work with the participating employer is not less than 30 hours per week, and (b) no date or event has been established for the termination of the employee’s employment other than by reference to the attainment of a mandatory retirement age. (4) The Plan is exempt from the application of section 32(1) of the EPPA as it applies to a member’s termination of active membership in the Plan while the member is employed in Alberta in employment other than federally regulated employment on the condition that the plan text document must (a) establish a vesting period of the earlier of (i) the member attaining 65 years of age while an active member, or (ii) either (A) the member having completed at least 5 years consisting of a period or periods indicated in the plan text document as counting toward vesting, or (B) the member having completed at least 2 years consisting of a period or periods indicated in the plan text document as counting toward vesting, and (b) if the member’s pension has not vested at the time of the member’s termination, authorize the member, in relation to the member’s contributions to the Plan up to the date of the member’s termination, to (i) receive or transfer from the Plan an amount equal to those contributions, with interest, or (ii) transfer an amount from the Plan to another pension plan as permitted by and in accordance with a pension transfer agreement. (4.1) The Plan is exempt from the application of section 35(7)(a) of the EPPA as it applies to the Corporation in respect of the role of APS under section 16(1) of Schedule 3 to the JGA and the role of AIMCo under section 16.1(2)(a) of Schedule 3 to the JGA. (5) The Plan is exempt from the application of section 36(1) of the EPPA as it applies to the Corporation in respect of (a) a participating employer in the Plan on the transition date. (b) repealed AR 149/2019 s3. (6) The Plan is exempt from the application of section 48 of the EPPA as it applies in respect of (a) a participating employer in the Plan on the transition date. (b) repealed AR 149/2019 s3. (6.1) The Plan is exempt from the application of section 57(2.1) of the EPPA as it applies to any contributions made by a member in respect of the unfunded liability that is the subject of section 38 of Schedule 3 to the JGA. (7) The Plan is exempt from the application of section 70 of the EPPA as it applies to contributions made entirely by a member to secure improvements in, or to purchase, benefits related to past service before or after the initial legislation date, excluding contributions received by the Plan on a locked-in basis, on the condition that, on the member’s termination of active membership in the Plan, and provided that the member’s pension has vested and the member has not reached the member’s pension commencement date, the plan text document must allow the member to (a) receive or transfer from the Plan an amount equal to those contributions, with interest, or (b) transfer those contributions, with interest, from the Plan to another pension plan in accordance with a pension transfer agreement. (8) The Plan is exempt from the application of section 70 of the EPPA as it applies to a member’s contributions to the Plan in relation to service prior to 1992 on the condition that, on the member’s termination of active membership in the Plan, and provided that the member’s pension has vested, the plan text document must allow the member to (a) receive or transfer from the Plan an amount equal to those contributions, with interest, or (b) transfer an amount from the Plan to another pension plan as permitted by and in accordance with a pension transfer agreement. (9) Repealed AR 149/2019 s3. (10) The Plan is exempt from the application of section 71(1) of the EPPA on the condition that the plan text document must provide that a deferred member or, if the deferred member is deceased, the deferred member’s surviving pension partner, is entitled to receive payment of a lump sum amount equal to the total of the commuted value of the benefit to which the deferred member or surviving pension partner is entitled under the Plan if the lump sum amount is less than 4% of the Year’s Maximum Pensionable Earnings for the calendar year in which the most recent determination of the amount of the lump sum occurred. (11) The Plan is exempt from the application of section 74(1)(a) and (b) of the EPPA as it applies to a transfer of the assets of the Plan to another pension plan if, and to the extent that, the transfer is authorized under this Regulation. (12) The Plan is exempt from the application of section 76(1)(b) of the EPPA on the condition that, if the plan text document provides that a member may elect to have the member’s pension payments increased for the period prescribed in section 77(1) of the EPPR by an amount determined, directly or indirectly, by reference to any amounts payable under the CPP Act, then the plan text document must also provide that such an election may be made only if (a) the election is made on or before the member’s pension commencement date, and (b) the monthly pension payments payable to the member after the increased benefits and any increased benefits elected by the member in relation to the OAS Act have ceased are not less than 1/12 of 4% of the Year’s Maximum Pensionable Earnings for the calendar year in which the most recent determination of the amount of the member’s increased pension payments occurred. (13) The Plan is exempt from the application of section 76(3) of the EPPA on the condition that, if the plan text document provides that a member may elect to have the member’s pension payments increased for the period prescribed in section 77(1) of the EPPR by an amount determined, directly or indirectly, by reference to any amounts payable under the OAS Act, then the plan text document must also provide that such an election may be made only if (a) the election is made on or before the member’s pension commencement date, and (b) the monthly pension payments payable to the member after the increased benefits and any increased benefits elected by the member in relation to the CPP Act have ceased are not less than 1/12 of 4% of the Year’s Maximum Pensionable Earnings for the calendar year in which the most recent determination of the amount of the member’s increased pension payments occurred. (14) The Plan is exempt from the application of section 76(4) of the EPPA on the condition that, if the plan text document provides for the reduction of a pension because of a member’s entitlement to any payments under the CPP Act or the OAS Act or both, as the case may be, the reduction must not exceed the maximum CPP pension or the maximum OAS pension, or both, as the case may be, as of the member’s pension commencement date. (15) The Plan is exempt from the application of section 89(1) of the EPPA as it applies to any benefit resulting from contributions made in respect of service before 1992 where the member’s pension has vested; however, sections 58, 59, 60 and 61 of the former Special Forces Pension Plan (AR 369/93) apply to that benefit as if that Regulation had remained in force, and any waiver of a benefit by a surviving pension partner must be in the form and manner required by the Corporation. (16) The Plan is exempt from the application of section 97(a) of the EPPA as it applies to the transfer of the portion of a benefit earned in relation to service prior to 1992 on the condition that, on the member’s termination of active membership in the Plan, and provided that the member’s pension has vested, the plan text document must, in relation to the member’s contributions to the Plan relating to the portion of the benefit earned in relation to service prior to 1992, allow the member to (a) receive or transfer from the Plan an amount equal to those contributions, with interest, or (b) transfer an amount from the Plan to another pension plan as permitted by and in accordance with a pension transfer agreement. (17) The Plan is exempt from the application of sections 136(8), 138(5) and 143(4) of the EPPA as they apply to an administrative penalty, expense or fine, or any portion of an administrative penalty, expense or fine, imposed on the Corporation, AIMCo or APS. Temporary exemption without conditions 3 For the period of 2 years commencing on the transition date, the Plan is exempt from the application of sections 42 and 44 of the EPPA. Other temporary exemptions 4 (1) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 10(1)(a) of the EPPA as it applies to the use of mortality tables in the calculation of the contributions required to be made by a member to secure improvements in, or to purchase, benefits related to past service on the condition that gender distinct mortality tables are used in the calculations. (2) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 10(1)(b) of the EPPA as it applies to the use of mortality tables in the calculation of pensions and benefits on the condition that gender distinct mortality tables are used in the calculations. (3) Repealed AR 149/2019 s3. (4) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 37(1) of the EPPA on the condition that the Corporation must continue the statement and disclosure practices, including with respect to form and timing, existing immediately before the transition date in respect of the Plan until the Corporation is able to comply with section 37(1) of the EPPA and the corresponding provisions of the EPPR. (5) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 37(2) and (4) of the EPPA to the extent that a person, participating employer or union has requested access to information or a record that is not available and the provision of which is subject to the temporary exemption set out in subsection (4);

however, the Corporation must comply with the request if the person, participating employer or union is entitled to the information or records under section 37(1) of the EPPA and the requested information or record is available. (6) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 43 of the EPPA on the condition that, during the term of this exemption, the Corporation continues to use the general policy guidelines concerning the investment and management of the pension fund that were in place immediately prior to the transition date. (7) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 62(3) of the EPPA as it applies to Plan assets held for the purpose of paying benefits under the EPPA on the condition that such Plan assets are held in an account in the name of the Crown in right of Alberta, which may be intermingled with assets of other pension plans administered by the Crown in right of Alberta or a Corporation. Part 2 EPPR Exemptions Permanent exemption without conditions 5 The Plan is exempt from the application of the following provisions of the EPPR: section 23; section 31(4)(c); section 32(3)(a); section 34(4)(c) and (g)(vi); section 35(4)(f); section 36(3)(b), (4)(e) and (5)(c); section 37(6)(a)(ii)(D); section 40(5)(d)(vi), (e) and (g); section 55(e); section 62; section 75(3)(c); section 90. Other permanent exemptions 6 (1) The Plan is exempt from the application of section 49(5)(d)(ii) of the EPPR on the condition that an actuarial valuation report and a cost certificate must include a calculation of the Plan’s solvency deficiency, if any. (2) The Plan is exempt from the application of section 49(7)(b) of the EPPR as it applies to a solvency deficiency. (3) The Plan is exempt from the application of section 151 of the EPPR as it applies to the filing fee required upon the registration of the Plan; however, section 151 applies in respect of the calculation of the fee referred to in section 47(3) of the EPPR. Temporary exemptions 7 (1) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 9(5) of the EPPR on the condition that, if the payment or transfer of a benefit under a benefit formula provision occurs more than 365 days after the date on which the commuted value of the benefit was determined, the commuted value of the benefit must be re‑determined as at a date that is not more than 30 days before the date of the payment or transfer of that benefit. (1.1) Until December 31, 2036, the Plan is exempt from the application of section 60(2)(b) of the EPPR as it applies to the unfunded liability that is the subject of section 38 of Schedule 3 to the JGA. (2) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 76(4) of the EPPR to the extent that it requires the use of Form 6 of Schedule 6 to the EPPR on the condition that the statement required under this exemption must be substantially in the form used for the Plan immediately before the transition date for generally the same purpose as set out in section 71(6) of the EPPA. (3) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of (a) section 81(5) of the EPPR, and (b) section 83(2) of the EPPR as it applies to the division of a pension in accordance with section 81(5) on the condition that, where a pension has already commenced to be paid to a member pension partner, the non‑member pension partner’s share is to be paid directly to the non-member pension partner in the form of a pension which, for the purposes of the Plan, is a portion of the member pension partner’s pension and the member pension partner shall receive the remaining balance of the pension as the member pension partner’s share of the pension. (4) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 82(14) of the EPPR on the condition that, if the non‑member pension partner’s share is a benefit determined with reference to a benefit formula provision of the plan text document, and if the payment or transfer of the non‑member pension partner’s share occurs more than 365 days after the date on which the commuted value of the benefit was determined, the commuted value of the benefit must be re‑determined as at a date that is not more than 30 days before the date of the payment or transfer of that benefit. (5) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 85 of the EPPR to the extent that it requires the use of Form 5 of Schedule 6 to the EPPR on the condition that the statement required under this exemption must be substantially in the form used for the Plan immediately before the transition date for generally the same purpose as set out in section 89(1)(b) of the EPPA. (6) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 86(1) and (2) of the EPPR to the extent that it requires the use of Form 4 and Form 9 of Schedule 6 to the EPPR on the condition that the statements required under this exemption must be substantially in the form used for the Plan immediately before the transition date for generally the same purpose as set out, (a) in the case of section 86(1), in section 90(4)(a) of the EPPA, and (b) in the case of section 86(2), in section 90(6) of the EPPA. (7) For the period of 2 years commencing on the transition date, the Plan is exempt from the application of section 142(c)(ii) of the EPPR as it applies to the deceased member’s pension partner’s signing of a waiver in Form 5 or Form 9 of Schedule 6 to the EPPR on the condition that the waivers signed in respect of the matters referred to in Form 5 or Form 9, as applicable, must be substantially in the form used for the Plan immediately before the transition date. AR 3/2019 Sched 3;149/2019