Pension Benefits Standards Act, 1985 — P-7.01 29
Deemed termination 29 (1) The revocation of registration of a pension plan shall be deemed to constitute termination of the plan. Where Superintendent may declare a plan terminated (2) The Superintendent may declare the whole or part of a pension plan terminated where (a) there is any suspension or cessation of employer contributions in respect of all or part of the plan members; (b) the employer has discontinued or is in the process of discontinuing all of its business operations or a part thereof in which a substantial portion of its employees who are members of the pension plan are employed; or (c) the Superintendent is of the opinion that the pension plan has failed to meet the prescribed tests and standards for solvency in respect of funding referred to in subsection 9(1). Declaration by Superintendent (2.1) The Superintendent may also declare the whole of a pension plan terminated if there is a cessation of crediting of benefits to the plan members. Date of termination (3) In a declaration made under subsection (2) or (2.1), the Superintendent shall declare a pension plan or part of a pension plan, as the case may be, to be terminated as of the date that the Superintendent considers appropriate in the circumstances. Adoption of new plan (4) If employer contributions to a negotiated contribution plan are suspended or cease as a result of the adoption of a new defined benefit plan, the original plan is deemed not to have been terminated, and the pension benefits and other benefits provided under the original plan are deemed to be benefits provided under the new plan in respect of any period of membership before the adoption of the new plan, whether or not the assets and liabilities of the original plan have been consolidated with those of the new plan. Partial termination (4.1) Only the Superintendent may declare part of a pension plan terminated. Termination by administrator or employer (4.2) Subject to subsections (1), (2) and (2.1), the whole of a pension plan is terminated only if the administrator or employer notifies the Superintendent, in writing or in the form and manner, if any, that the Superintendent directs, of their decision to terminate the pension plan and the date of the termination. Result of termination (4.3) As of the date of the termination of the whole of a pension plan, there is to be no crediting of benefits to the plan members under that pension plan. Notice of voluntary termination or winding-up (5) An administrator or employer who terminates or winds up a pension plan shall notify the Superintendent, in writing or in the form and manner, if any, that the Superintendent directs, not less than 60 and not more than 180 days before the date of the termination or winding-up. Payments by employer to meet solvency requirements (6) If the whole of a pension plan is terminated, the employer shall, without delay, pay into the pension fund all amounts that would otherwise have been required to be paid to meet the prescribed tests and standards for solvency referred to in subsection 9(1) and, without limiting the generality of the foregoing, the employer shall pay into the pension fund (a) an amount equal to the normal cost that has accrued to the date of the termination; (b) the amounts of any prescribed special payments that are due on termination or would otherwise have become due between the date of the termination and the end of the plan year in which the pension plan is terminated; (c) the amounts of payments that are required to be made under a workout agreement that are due on termination or would otherwise have become due between the date of the termination and the end of the plan year in which the pension plan is terminated; (d) all of the following amounts that have not been remitted to the pension fund at the date of the termination: (i) the amounts deducted by the employer from members’ remuneration, and (ii) other amounts due to the pension fund from the employer; and (e) the amounts of all of t