NEWFOUNDLAND AND LABRADOR
REGULATION 29/08

Pension Benefits Act Regulations (Amendment)
under the
Pension Benefits Act, 1997
(O.C. 2008-136)

(Filed May 26, 2008)

Under the authority of section 78 of the Pension Benefits Act, 1997, the Lieutenant-Governor in Council makes the following regulations.

Dated at St. John's, May 21, 2008.

Gary Norris
Clerk of the Executive Council

REGULATIONS

Analysis

        1.   S.7.1 Added
Solvency funding exemption for multi-employer plans

        2.   Commencement

NLR 114/96
as amended

        1. The Pensions Benefits Act Regulations is amended by adding immediately after section 7 the following:

Solvency funding exemption for multi-employer plans

      7.1 (1) An administrator of a multi-employer pension plan may elect that subsections (3) to (7), instead of subsections 7(1) to (4), apply to a report filed under sections 5, 6, 11 and 12 where the valuation date of the report is between December 31, 2007 and December 31, 2010.

             (2)  An administrator of a multi-employer plan may make an election under subsection (1) only once.

             (3)  The required contributions to a multi-employer pension plan are sufficient if, for each year of the period covered by the report, they are not less than the sum of the following amounts determined under a going concern valuation:

             (a)  the normal cost of the plan;

             (b)  the special payments set out in a previous report that remain to be paid with respect to any going concern unfunded liability; and

             (c)  the special payments to be paid with respect to a going concern unfunded liability that is determined in the report.

             (4)  Within 60 days after electing to have this section apply to a report filed under sections 5, 6, 11 and 12, the administrator of a multi-employer pension plan shall give written notice of the election to each member and former member of the plan.

             (5)  The written notice required by subsection (4) shall contain all the following information:

             (a)  the name and provincial registration number of the multi-employer pension plan;

             (b)  the name and contact of the administrator;

             (c)  the transfer ratio of the plan and, where the plan is amended to increase benefits, the transfer ratio before and after the amendment, effective on the valuation date of the report; and

             (d)  an explanation of how the security of pension benefits for members and former members might be affected as a result of the election made under this section.

             (6)  Within 60 days after filing a report to which this section applies, an administrator shall

             (a)  file a copy of the notice required by subsection (4) with the superintendent; and

             (b)  give a copy of the notice required by subsection (4) to every employer who makes contributions to a multi-employer pension plan and to every bargaining agent who represents members of the plan.

             (7)  In addition to the requirements of subsection (6), an administrator who files a report to which this section applies shall give a copy of the notice required by subsection (4) to each person who, after the report is filed and before the next report is filed, will be eligible or is required to become a member of the multi-employer pension plan, and the notice shall accompany the information required to be given to the person under subsection 25(1) of the Act.

Commencement

        2. These regulations are considered to have come into force on December 31, 2007.

©Earl G. Tucker, Queen's Printer