Solvency Exemption for Public Sector Pension Plans Regulation

Solvency Exemption for Public Sector Pension Plans Regulation, M.R. 81/2010 The Pension Benefits Act , C.C.S.M. c. P32 Regulation 81/2010 Registered June 29, 2010 bilingual version (HTML) Table of Contents Section 1 Overview 2 Definitions and interpretation 3 Conflict 4 Election for exemption 5 Employer may request administrator to give notice and make election 6 Filing requirements 7 Effect of election 8 Solvency tests to continue to be applied 9 Restriction on plan amendments 10 Repeal and related transitional rule Schedule Public Sector Pension Plans Overview 1 This regulation (a) enables a public sector pension plan to opt out of certain solvency provisions and transfer deficiency provisions of the Pension Benefits Regulation ; (b) establishes conditions for opting out of those provisions; (c) sets out the legal consequences of opting out of those provisions; and (d) treats a public sector pension plan that, under the former exemption regulation, opted out of the solvency and transfer deficiency provisions of the former Pension Benefits Regulation , M.R. 188/87 R, as having opted out of the similar provisions of the current Pension Benefits Regulation . Definitions and interpretation 2(1) The following definitions apply in this regulation. "election notice" means the notice given by an administrator to each participating employer under subsection 4(1). (« avis de choix ») "employer" , in relation to a public sector pension plan, means the employer under that plan and, if there are two or more participating employers, it means each participating employer. (« employeur ») "former exemption regulation" means the University and Healthcare Pension Plans Regulation , M.R. 141/2007, as it read before immediately before it was repealed by this regulation. (« règlement d'exemption antérieur ») " Pension Benefits Regulation " means the Pension Benefits Regulation , M.R. 39/2010, except where it refers to the former Pension Benefits Regulation , M.R. 188/87 R. («  Règlement sur les prestations de pension  ») "proposed exemption notice" means the notice given or to be given under subsection 4(2). (« avis d'exemption projetée ») "public sector pension plan" means any of the pension plans listed in the Schedule. (« régime de retraite du secteur public ») "solvency provisions" means the following provisions of the Pension Benefits Regulation : (a) clause 4.6(c); (b) clause 4.18(1)⁠(b); (c) clause (c) of the "Solvency" provisions in the table (under section 2 of Schedule A) that prescribes the additional information required in each annual statement. (« dispositions régissant la solvabilité ») "transfer deficiency provisions" means the following provisions of the Pension Benefits Regulation : (a) section 4.30; (b) the "Transfer deficiency" provisions in the tables (under section 2 of Schedule A) that prescribe the additional information required in the following statements: (i) a termination statement, (ii) a retirement statement, (iii) a pre-retirement death statement. (« dispositions régissant les déficits de transfert ») 2(2) Subject to subsection (1) and unless the context otherwise requires, terms used in this regulation have the same meaning as they have in the Pension Benefits Regulation . M.R. 143/2021 Conflict 3 In the event of a conflict between a provision of this regulation and a provision of the Pension Benefits Regulation , the provision of this regulation prevails. Election for exemption 4(1) The administrator of a public sector pension plan (other than a plan in respect of which an election was made under the former exemption regulation) may, by written notice to each participating employer, elect in accordance with this section to have the plan exempted from the solvency provisions and the transfer deficiency provisions. 4(2) Before making the election, the administrator must give to each participating employer, to all plan members or their agents, to each bargaining agent representing plan members, and to any other beneficiary entitled to benefits under the plan, a written notice setting out (a) the intention to make the election and the reasons for making it; (b) an explanation of the effect of the proposed election; (c) a statement that any comments or questions in relation to the election may be directed to the administrator within 30 days after receipt of the notice; (d) in the case of a multi-unit pension plan, a statement that pension benefits could be reduced if, on the winding-up of the plan, the plan's assets are not sufficient to meet its liabilities; (e) a statement that the election will be made only if (i) fewer than 1/3 of the members, and (ii) fewer than 1/3 of the other beneficiaries entitled to benefits under the plan, object to the proposed election by sending a written notice of objection to the administrator at the address and by the date specified in the notice, which must be at least 30 days after the date the administrator gives the notice; and (f) a statement that the election is irrevocable. 4(3) The election cannot be made unless the condition in clause (2)⁠(e) is satisfied. 4(4) An election under this section is irrevocable. M.R. 143/2021 Employer may request administrator to give notice and make election 5(1) The employer under a public sector pension plan, other than a multi-unit pension plan, may request the administrator to give the proposed exemption notice and to make the election if the condition in clause 4(2)⁠(e) is satisfied. The request must be in writing, and must be accompanied by (a) a statement of the employer's reasons for requesting the election; and (b) a certified copy of a resolution of the employer's board of directors or similar body that authorized the request. 5(2) The administrator must comply with the employer's request unless the plan has more than one participating employer and not all of them have made the request. Filing requirements 6 An administrator who makes an election under section 4 must file the following documents and information with the superintendent within 60 days after giving the proposed exemption notice to plan members under subsection 4(2): (a) a copy of the proposed exemption notice; (b) a statement confirming that the proposed exemption notice was given as required by subsection 4(2) and the date that it was given; (c) if the administrator was requested by the employer to make the election, a certified copy of a resolution of the employer's board of directors or similar body that authorized the request; (d) a statement confirming that (i) fewer than 1/3 of the members of the plan, and (ii) fewer than 1/3 of the other beneficiaries entitled to benefits under the plan, objected to the proposed election within the time allowed for objections; (e) a copy of the election notice given to each participating employer. Effect of election 7(1) Despite the provisions of a public sector pension plan but subject to subsection (2), if an election has been made for the plan under the former exemption regulation or under section 4 of this regulation, and the administrator has filed the applicable documents with the superintendent as required by the former exemption regulation or section 6 of this regulation, the following rules apply: (a) the solvency provisions and the transfer deficiency provisions no longer apply to the plan; (b) when applying subclause (c)⁠(ii) of the definition "solvency assets" in subsection 4.7(1) of the Pension Benefits Regulation to the plan, the reference to "special payments" is to be read as a reference to special payments under clause 4.18(1)⁠(d) of that regulation; (c) if the plan is a multi-unit pension plan, for the purpose of applying subsection 4.25(1) of the Pension Benefits Regulation to the plan, that regulation is to be read without reference to clause 4.6(c); (d) the annual statement required by section 3.33 of the Pension Benefits Regulation must include (i) in the case of a multi-unit pension plan, a statement that pensions and other benefits could be reduced on a termination or winding-up of the plan, in whole or in part, or (ii) in the case of any other public sector pension plan, a statement that on a termination or winding up of the plan, in whole or in part, the employer must fund, in accordance with the Act and this regulation, any solvency deficiency that exists at that time. 7(2) Subsection (1) ceases to apply to a public sector pension plan (other than a multi-unit pension plan) when (a) the plan is terminated or wound up in whole or in part; or (b) the employer joins or establishes another plan as a successor to the plan. M.R. 143/2021 Solvency tests to continue to be applied 8 Despite section 7, the administrator of a public sector pension plan must ensure that solvency tests are performed as required by Division 2 of Part 4 of the Pension Benefits Regulation , and that the results of those tests are reported as required by sections 4.9 to 4.17 of the Pension Benefits Regulation . Restriction on plan amendments 9 If an election has been made under the former exemption regulation or under section 4 of this regulation in respect of a public sector pension plan, the plan cannot be amended if the amendment would have the effect of reducing the plan's solvency ratio to a number that is less than 0.9. Repeal and related transitional rule 10(1) The University and Healthcare Pension Plans Regulation , M.R. 141/2007, is repealed. 10(2) Despite subsection (1), the employer in relation to the University of Winnipeg Pension Plan must continue to make equal payments into the plan, at least quarterly, sufficient to amortize the unfunded liability established as of December 31, 2004, over a period ending no later than December 31, 2014. SCHEDULE (Public Sector Pension Plans — Section 2) Plans for school division employees Pension Fund for Officers and Employees (other than Teachers) of The Winnipeg School Division No. 1 Pension Plan for Employees of Mystery Lake School Division Retirement Plan for Non-Teaching Employees of The St. James-Assiniboia School Division Retirement Plan for Employees of Frontier School Division No. 48 Plans for university employees Brandon University Retirement Plan University of Manitoba Pension Plan University of Winnipeg Pension Plan Plans for civic employees Civic Employees' Pension Plan (CEPP), a pension plan for employees of the City of Winnipeg Winnipeg (Police) Pension Plan Pension Plan for The City of Brandon Manitoba Municipal Employees Pension Plan Other public sector plans Healthcare Employees Pension Plan (HEPP) Winnipeg Child and Family Services Employee Benefits Retirement Plan The Workers Compensation Board of Manitoba Retirement Plan