Special Payments Moratorium Regulation

Special Payments Moratorium Regulation, M.R. 142/2020 The Pension Benefits Act , C.C.S.M. c. P32 Regulation 142/2020 Registered December 17, 2020 bilingual version (HTML) Table of Contents Section 1 Definitions 2 Conflict 3 Election to suspend special payments during moratorium period — non-MUPPs 4 Election to suspend special payments during moratorium period — MUPPs 5 Filing requirements 6 Effect of election 7 Resuming special payments before end of moratorium period 8 Solvency tests to continue to be applied Definitions 1(1) The following definitions apply in this regulation. "Act" means The Pension Benefits Act ; («  Loi  ») "current solvency deficiency" of a plan means a solvency deficiency of the plan as at the plan's latest review date before this regulation comes into force. (« déficit de solvabilité actuel ») "current unfunded liability" of a plan means an unfunded liability of the plan as at the plan's latest review date before this regulation comes into force. (« déficit actuariel actuel ») "moratorium period" means the 13-month period consisting of December 2020 and the 2021 calendar year. (« période de moratoire ») "MUPP" means a plan designated as a multi-unit pension plan under subsection 26.1(2) of the Act. (« régime multipartite ») "plan" means a pension plan that has a defined benefit provision. (« régime ») 1(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 , Manitoba Regulation 39/2010. Conflict 2 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 to suspend special payments during moratorium period — non-MUPPs 3(1) If a plan other than a MUPP has a current solvency deficiency, a current unfunded liability or both, the employer sponsoring the plan or, in the case of a plan with more than one participating employer, the plan sponsor, may file with the plan administrator an election to be exempt from the requirement to make any special payments that would otherwise be required to be made under the Pension Benefits Regulation during the moratorium period in respect of (a) the current solvency deficiency; (b) the current unfunded liability; and (c) any further solvency deficiency or unfunded liability of the plan that is not attributable to a transfer of assets and liabilities to the plan from another pension plan. 3(2) Within 30 days after having received an election under subsection (1), a plan administrator must send 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) an explanation of the effect of the election to suspend special payments during the moratorium period; (b) a statement confirming that, should the plan be terminated or wound up in whole or in part, special payments will be made to make the plan meet the solvency requirements of the Act and the Pension Benefits Regulation ; and (c) a statement that any comments or questions in relation to the election may be directed to the plan administrator. 3(3) An election made by a plan sponsor under subsection (1) is binding on each participating employer of the plan. Election to suspend special payments during moratorium period — MUPPs 4(1) If a MUPP has a current solvency deficiency, a current unfunded liability or both, the plan administrator may elect to be exempt from the requirement to make any special payments that would otherwise be required to be made under the Pension Benefits Regulation during the moratorium period in respect of (a) the current solvency deficiency; (b) the current unfunded liability; and (c) any further solvency deficiency or unfunded liability of the plan that is not attributable to a transfer of assets and liabilities to the plan from another pension plan. 4(2) Within 30 days after having made an election under subsection (1), a plan administrator must send 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) an explanation of the effect of the election to suspend special payments during the moratorium period; (b) a statement confirming that, should the plan be terminated or wound up in whole or in part, pensions and other benefits could be reduced; and (c) a statement that any comments or questions in relation to the election may be directed to the plan administrator. 4(3) An election made by a plan administrator under subsection (1) is binding on each participating employer of the plan. Filing requirements 5 If an election has been made under section 3 or 4, the plan administrator must file the following documents and information with the superintendent within 60 days after having received or made the election: (a) a statement confirming that the election has been made; (b) in the case of a plan other than a MUPP, a copy of the notice of election provided by the employer or plan sponsor to the administrator; (c) a statement confirming that the documentation required to be sent under subsection 3(2) or 4(2) was sent. Effect of election 6(1) Despite the provisions of the plan but subject to subsection (2), if an election has been made for a plan under section 3 or 4 and the plan administrator has filed the applicable documents with the superintendent as required by section 5, the following rules apply: (a) for each month included in the moratorium period, no special payment is required to be made in respect of a solvency deficiency or unfunded liability other than any payment to be made in respect of a solvency deficiency or unfunded liability that is attributable to a transfer of assets and liabilities to the plan from another pension plan; (b) clause 4.18(1)⁠(a) of the Pension Benefits Regulation continues to apply during the moratorium period; (c) at the end of the moratorium period, the employer must begin making the special payments as required under clauses 4.18(1)⁠(b) and (c) of the Pension Benefits Regulation unless the employer is otherwise exempted from having to make special payments by a regulation made under the Act; (d) the annual statement required by section 3.33 of the Pension Benefits Regulation must include (i) in the case of a plan other than a MUPP, a statement confirming that, should the plan be terminated or wound up in whole or in part, special payments will be made to make the plan meet the solvency requirements of the Act and the Pension Benefits Regulation , and (ii) in the case of a MUPP, a statement confirming that, should the plan be terminated or wound up in whole or in part, pensions and other benefits could be reduced; and (e) the plan cannot be amended during the moratorium period to increase benefits or decrease employee or employer contributions. 6(2) Subsection (1) ceases to apply to a plan if (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. 6(3) The failure to make any special payment that, because of this regulation, is not required to be made is deemed not be a breach of the Pension Benefits Regulation or any provision of the plan requiring that the payment be made. Resuming special payments before end of moratorium period 7(1) An employer, plan sponsor or plan administrator who has made an election under section 3 or 4 may elect to resume making special payments before the end of the moratorium period. Sections 3 and 4 apply to the election, with necessary changes. 7(2) An employer, plan sponsor or plan administrator who has elected to resume special payments may not make an election under this regulation to suspend special payments a second time. Solvency tests to continue to be applied 8 Despite section 6, a plan administrator must ensure that the 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 that regulation.