NORTEL PENSION PLANS

Nortel pension plans and pensioners 1. (1) This Regulation applies with respect to every person who is receiving a pension from either of the following pension plans as of the date of the wind up of the pension plan: 1. The pension plan known as the Nortel Networks Limited Managerial and Non-Negotiated Pension Plan, registered under the Act as number 0342048. 2. The pension plan known as the Nortel Networks Negotiated Pension Plan, registered under the Act as number 0587766. O. Reg. 10/13, s. 1 (1). (2) This Regulation applies with respect to each person’s entitlement under subsection 102 (2) of the Act to require the administrator of the pension plan to transfer an amount equal to the commuted value of the pension into a life income fund that satisfies the prescribed requirements. O. Reg. 10/13, s. 1 (2). Interpretation 2. (1) Expressions used in this Regulation have the same meaning as in the General Regulation, unless the context requires otherwise. O. Reg. 10/13, s. 2 (1). (2) In this Regulation, “General Regulation” means Regulation 909 of the Revised Regulations of Ontario, 1990 (General) made under the Act; (“règlement général”) “qualifying spouse or former spouse” means a spouse or former spouse who is entitled to payment of a pension benefit by virtue of an order made under Part I (Family Property) of the Family Law Act or under a family arbitration award or a domestic contract. (“conjoint ou ancien conjoint admissible”) O. Reg. 10/13, s. 2 (2). Restrictions re entitlement to transfer 3. (1) The restrictions set out in this section apply with respect to a person’s entitlement under subsection 102 (2) of the Act to the transfer of an amount into a life income fund. O. Reg. 10/13, s. 3 (1). (2) The following restrictions apply if the person entitled to the transfer is a retired member of the pension plan: 1. If the person has a qualifying spouse or former spouse, and if the pension benefit payable to the qualifying spouse or former spouse is payable for the life of the person, the person is not entitled to the transfer unless the qualifying spouse or former spouse gives his or her consent. 2. If, upon the person’s death, another person is entitled to a survivor benefit under the pension plan, the person is not entitled to the transfer unless the other person gives his or her consent. O. Reg. 10/13, s. 3 (2). (3) The following restrictions apply if the person entitled to the transfer is a qualifying spouse or former spouse of a retired member of the pension plan: 1. If the pension benefit payable to the qualifying spouse or former spouse is payable for the life of the retired member, the qualifying spouse or former spouse is not entitled to the transfer unless the retired member gives his or her consent. O. Reg. 10/13, s. 3 (3). Notice of entitlement 4. (1) The statement that the administrator is required by subsection 72 (1) of the Act to give to each person with respect to the wind up of the pension plan must contain the following additional information about the person’s entitlement under subsection 102 (2) of the Act: 1. A description of the person’s entitlement under subsection 102 (2) of the Act and any applicable restrictions under subsection 102 (2.1) of the Act. 2. The deadline for delivering the direction to the administrator under subsection 102 (3) of the Act concerning the person’s entitlement. 3. A list of any additional documents that the Chief Executive Officer requires the administrator to give to persons who have such an entitlement. 4. A description of the funding status of the pension plan as of the date of the wind up. 5. A description of the person’s entitlement to further proceeds, if any, received by the administrator in connection with the administrator’s claim against Nortel Networks Limited with respect to the pension plan in the proceeding before the Ontario Superior Court of Justice, identified as court file number 09-CL-7950. O. Reg. 10/13, s. 4 (1); O. Reg. 159/19, s. 1. (2) The statement must also indicate that, if the person directs the administrator to make the transfer to the life income fund under subsection 102 (2) of the Act, the following individuals will no longer receive a pension from the pension plan after the administrator complies with the direction: 1. The person giving the direction. 2. Any other person who is entitled to a survivor benefit under the pension plan upon the person’s death and who has consented to the transfer. O. Reg. 10/13, s. 4 (2). (3) The statement must be accompanied by a copy of the form to be used for the direction described in subsection 102 (3) of the Act. O. Reg. 10/13, s. 4 (3). Direction to administrator re entitlement 5. (1) A person’s direction under subsection 102 (3) of the Act about his or her entitlement must contain the following information and must include the following declarations: 1. Particulars identifying the pension plan and the administrator. 2. The name and contact information of the person giving the direction. 3. The person’s confirmation that he or she has received information from the administrator about the person’s entitlement under subsection 102 (2) of the Act. 4. The person’s direction to the administrator to make the transfer into a specified life income fund, and the particulars required to enable the administrator to make the payment. 5. Depending upon the circumstances, i. the person’s declaration that there is no qualifying spouse or former spouse who is entitled to payment of a pension benefit which is payable for the life of the retired member, or ii. a declaration signed by the qualifying spouse or former spouse who is entitled to payment of the pension benefit stating that he or she consents to the transfer under subsection 102 (2) of the Act. 6. Depending upon the circumstances, i. the person’s declaration that no other person is entitled to a survivor benefit under the pension plan upon the person’s death, or ii. a declaration signed by the person entitled to the survivor benefit stating that he or she consents to the transfer under subsection 102 (2) of the Act. 7. Depending upon the circumstances, i. the person’s declaration that he or she is not a qualifying spouse or former spouse who is entitled to payment of a pension benefit which is payable for the life of the retired member, or ii. a declaration signed by the retired member stating that he or she consents to the transfer under subsection 102 (2) of the Act. O. Reg. 10/13, s. 5 (1). (2) The direction must be delivered to the administrator no later than 90 days after the person receives the statement described in section 4 accompanied by the form to be used for the direction. O. Reg. 10/13, s. 5 (2). Compliance with direction 6. (1) The administrator is required by subsection 102 (4) of the Act to comply with a direction within 60 days after the later of, (a) the day on which the direction is delivered to the administrator; and (b) the day on which the administrator receives notice that the Chief Executive Officer has approved the wind up report. O. Reg. 10/13, s. 6; O. Reg. 159/19, s. 1. (2) For the purposes of clause (1) (b), a notice that the Superintendent has approved the wind up report received prior to June 8, 2019 is deemed to be a notice that the Chief Executive Officer has approved the wind up report. O. Reg. 159/19, s. 2. Life income fund, prescribed requirements 7. (1) A life income fund must satisfy the following requirements for the purposes of subsection 102 (2) of the Act: 1. It must satisfy the requirements that apply to a life income fund governed by Schedule 1.1 to the General Regulation, other than the following requirements of that Schedule: i. Section 1 of that Schedule, which specifies the persons who are entitled to purchase the life income fund. ii. Section 8 of that Schedule, which governs the withdrawal or transfer of amounts transferred into the life income fund from a pension fund, a locked-in retirement income fund or another life income fund. 2. It must not permit the owner of the life income fund to withdraw or transfer from the fund under section 8 of Schedule 1.1 to the General Regulation any amount transferred into the fund under subsection 102 (2) of the Act. O. Reg. 10/13, s. 7 (1). (2) A contract governing a life income fund into which a payment under subsection 102 (2) of the Act is made is required to include a term stating that the owner is not entitled to withdraw or transfer from the fund under section 8 of Schedule 1.1 to the General Regulation any amount transferred into the fund under subsection 102 (2) of the Act. If the contract does not include such a term, it is deemed to include it. O. Reg. 10/13, s. 7 (2). Amount to be paid into life income fund 8. (1) For the purposes of section 102 of the Act, the commuted value of a person’s pension is determined as follows: 1. Calculate the commuted value of the person’s pension as of the effective date of the wind up, using methods and actuarial assumptions that are consistent with section 3500 (“Pension Commuted Values”) of the Standards of Practice of the Actuarial Standards Board, published by the Canadian Institute of Actuaries, as that section read upon being revised on June 3, 2010. 2. Adjust the commuted value as calculated under paragraph 1 in order to reflect the pension payments made from the effective date of the wind up to the beginning of the month in which the transfer into the life income fund is made under subsection 102 (2) of the Act. 3. Add to the adjusted commuted value an amount for accumulated interest, to be calculated at the same rate that is used in the wind up report to calculate the commuted value of pension benefits, from the effective date of the wind up to the beginning of the month in which the transfer into the life income fund is made under subsection 102 (2) of the Act. O. Reg. 10/13, s. 8 (1). (2) Subsection 19 (1.2) of the General Regulation does not apply with respect to the calculation of the commuted value of the person’s pension for the purposes of subsection 102 (2) of the Act. O. Reg. 10/13, s. 8 (2). 9. Omitted (provides for coming into force of provisions of this Regulation). O. Reg. 10/13, s. 9.