42 (1) A former member of a pension plan is entitled to require the administrator to pay an amount equal to the commuted value of the former member’s deferred pension, (a)  to the pension fund related to another pension plan, if the conditions set out in subsection (1.1) are satisfied; (b)  into a prescribed retirement savings arrangement; or (c)  if the pension plan so permits, for the purchase for the former member of a life annuity that will not commence before the earliest date on which the former member would have been entitled to receive payment of pension benefits under the pension plan. R.S.O. 1990, c. P.8, s. 42 (1); 2010, c. 9, s. 29 (1); 2010, c. 24, s. 15 (1); 2011, c. 9, Sched. 35, s. 3 (1). Requirements re transfer to another pension plan (1.1) The transfer described in clause (1) (a) to the pension fund related to another pension plan is authorized, (a)  if the other pension plan is a pension plan registered under this Act, a pension plan established or governed by a statute in a designated jurisdiction, a pension plan registered in a designated jurisdiction or a pension plan prescribed for the purposes of this section; and (b)  if the administrator of the other pension plan agrees to accept the payment.  2010, c. 24, s. 15 (2). Limitation (2) The entitlement under subsection (1) is subject to the prescribed limitations in respect of the transfer of funds from pension funds.  R.S.O. 1990, c. P.8, s. 42 (2). Application (3) Subsection (1) does not apply to a former member who is entitled to immediate payment of a pension under the pension plan or under section 41 unless the pension plan provides such an entitlement.  2010, c. 9, s. 29 (2). Direction (4) A former member may exercise his or her entitlement under subsection (1) by delivering a direction to the administrator within the prescribed period.  2010, c. 9, s. 29 (3). Compliance with direction (5) Subject to compliance with the requirements of this section and the regulations, the administrator shall comply with the direction within the prescribed period of time after delivery of the direction.  R.S.O. 1990, c. P.8, s. 42 (5). Terms of arrangement or deferred annuity (6) The administrator shall not make payment, (a)  under clause (1) (b) unless the retirement savings arrangement meets the requirements prescribed by the regulations; or (b)  under clause (1) (c) unless the contract to purchase the deferred life annuity meets the prescribed requirements.  R.S.O. 1990, c. P.8, s. 42 (6). Lump sum payment (6.1) If the amount of the commuted value of the deferred pension of the former member to be paid into a prescribed retirement savings arrangement under clause (1) (b) is greater than the amount prescribed under the Income Tax Act (Canada) for such a transfer, the administrator shall pay the portion that exceeds the prescribed amount as a lump sum to the former member.  1999, c. 15, s. 6. Purchase of life annuity (6.2) If a life annuity is purchased under clause (1) (c) for a former member and if the amount of the commuted value of the former member’s deferred pension that is used to purchase the life annuity is greater than the amount permitted under the Income Tax Act
(Canada) for such a purchase, the administrator shall pay to the former member as a lump sum the portion of the commuted value that exceeds the amount permitted under that Act for the purchase of the life annuity.  2010, c. 26, Sched. 15, s. 1 (2); 2011, c. 9, Sched. 35, s. 3 (2). Approval (7) If a payment under subsection (1) does not meet the limitations prescribed in relation to transfers of funds from pension funds, the administrator shall not make the payment without the approval of the Chief Executive Officer.  R.S.O. 1990, c. P.8, s. 42 (7); 2018, c. 8, Sched. 23, s. 23. Terms and conditions (8) The Chief Executive Officer may approve the payment subject to such terms and conditions as the Chief Executive Officer considers appropriate in the circumstances.  R.S.O. 1990, c. P.8, s. 42 (8); 2018, c. 8, Sched. 23, s. 23. Order for repayment (9) If a payment that does not meet the limitations prescribed in relation to transfers of funds from pension funds is made without the approval of the Chief Executive Officer or there is failure to comply with a term or condition attached to the approval, the Chief Executive Officer by order, subject to section 89 (notices and hearings), may require any person to whom payment under subsection (1) has been made to repay an amount not greater than the amount of the payment together with interest thereon.  R.S.O. 1990, c. P.8, s. 42 (9); 2018, c. 8, Sched. 23, s. 23. Enforcement (10) Subject to section 89 (notices and hearings), an order for payment under subsection (9), exclusive of the reasons therefor, may be filed in the Superior Court of Justice and is thereupon enforceable as an order of that court.  R.S.O. 1990, c. P.8, s. 42 (10); 2006, c. 19, Sched. C, s. 1 (1). Discharge of administrator (11) The administrator is discharged on making the payment or transfer in accordance with the direction of the former member if the payment or transfer complies with this Act, the regulations and the Authority rules.  R.S.O. 1990, c. P.8, s. 42 (11); 2017, c. 34, Sched. 33, s. 18. Retired members (12) This section applies, with necessary modifications, to a retired member who is entitled to begin to receive a pension from the pension fund by virtue of having reached the normal retirement date under the pension plan but who has not yet elected to receive the pension, if the pension plan so permits. 2016, c. 37, Sched. 19, s. 2. Section Amendments with date in force (d/m/y) 1997, c. 28, s. 197 - 01/01/1998; 1999, c. 15, s. 6 - 03/03/2000 2006, c. 19, Sched. C, s. 1 (1) - 22/06/2006 2010, c. 9, s. 29 (1, 2) - 01/07/2012;
2010, c. 9, s. 29 (3) - 18/05/2010;
2010, c. 24, s. 15 (1, 2) - 01/01/2015;
2010, c. 24, s. 15 (3) - no effect - see 2017, c. 34, Sched. 33, s. 44 - 14/12/2017; 2010, c. 26, Sched. 15, s. 1 (1) - 30/06/2011; 2010, c. 26, Sched. 15, s. 1 (2) - 08/12/2010 2011, c. 9, Sched. 35, s. 3 (1, 2)
- 12/05/2011 2015, c. 9, s. 31 (2) - no effect - see 2016, c. 5, Sched. 23, s. 5 - 19/04/2016 2016, c. 5, Sched. 23, s. 5 - 19/04/2016; 2016, c. 37, Sched. 19, s. 2 - 1/03/2017 2017, c. 34, Sched. 33, s. 18 - 08/06/2019 2018, c. 8, Sched. 23, s. 23 - 08/06/2019; CTS 04 SE 18 - 3