39 (1) If the commuted value of a deferred pension accrued by a former member or a  pension accrued by a retired member, as the case may be, in respect of employment before January 1, 1987 is less than the value of the contributions that he or she was required, as a member, to make under the pension plan before that date, plus interest credited to the contributions, he or she is entitled to have the commuted value of the deferred pension or the pension increased so that the commuted value is equal to the value of the contributions plus interest.  2010, c. 9, s. 26 (1). Effect of amendment (2) An increase in the value of the pension or deferred pension in respect of employment before the 1st day of January, 1987 that results from an amendment to the pension plan made on or after that date may be included in calculating the commuted value of the pension or deferred pension for the purposes of subsection (1).  R.S.O. 1990, c. P.8, s. 39 (2). 50 per cent rule (3) Contributions made on or after January 1, 1987 by a member, and interest on the contributions, shall not be used to provide more than 50 per cent of the commuted value of a deferred pension or pension in respect of contributory benefits accrued after that date to which the member is entitled under the pension plan on termination of employment or membership.  2010, c. 9, s. 26 (2). Entitlement to excess amount (4) A former member or retired member who is entitled to a deferred pension or a pension, as the case may be, on termination of employment or membership is entitled to a lump sum payment from the pension fund that is equal to the amount by which his or her contributions, as a member, made on or after January 1, 1987, and interest on the contributions, exceeds one-half of the commuted value of the deferred pension or pension in respect of contributory benefits accrued after that date.  2010, c. 9, s. 26 (2). Right to transfer excess amount (4.1) A person entitled to a lump sum payment under subsection (4) may require the administrator to pay the lump sum into a registered retirement savings arrangement by delivering a direction to the administrator within the prescribed period.  2010, c. 9, s. 26 (3). Same (4.2) Section 50.1 applies with respect to the payment into the registered retirement savings arrangement.  2010, c. 9, s. 26 (3). Note: On a day to be named by proclamation of the Lieutenant Governor, section 39 of the Act is amended by adding the following subsection: (See: 2017, c. 34, Sched. 33, s. 13) Reduction re target benefits (4.3) Subsections (3) and (4) do not apply with respect to a pension or a deferred pension if the benefits to which the pension or deferred pension relates are target benefits. 2017, c. 34, Sched. 33, s. 13. Exclusions (5) The following may be excluded in determining that part of the commuted value of a pension or deferred pension to which subsections (3) and (4) apply: 1.  Defined contribution benefits. Note: On a day to be named by proclamation of the Lieutenant Governor, subsection 39 (5) of the Act is amended by adding the following paragraph: (See: 2020, c. 36, Sched. 37, s. 5) 1.1  Optional benefits. 2.  Benefits that result from additional voluntary contributions. 2.1  Benefits that result from voluntary contributions for past service, as defined in the regulations. 3.  In the case of a multi-employer pension plan that permits a member who has not accrued maximum pension benefits permitted under the plan in a fiscal year of the plan to make contributions to increase the member’s pension benefit to the maximum permitted for the fiscal year, benefits resulting from such contributions. 4.  Any other benefits prescribed for the purposes of this subsection.  R.S.O. 1990, c. P.8, s. 39 (5); 1999, c. 15, s. 5. Matters that may be included (6) The following may be included by the administrator of the pension plan in calculating a member’s contributory benefit for the purposes of subsection (3): 1.  Ancillary benefits related to employment on or after the 1st day of January, 1987. 2.  Increases to pension benefits and ancillary benefits related to employment before the date of the amendment resulting from an amendment to the pension plan made on or after the 1st day of January, 1987 but that are not included in calculating commuted value under subsection (2). 3.  Pension benefits and ancillary benefits related to employment before the date of the establishment of the pension plan, in the case of a pension plan established on or after the 1st day of January, 1987.  R.S.O. 1990, c. P.8, s. 39 (6). Section Amendments with date in force (d/m/y) 1999, c. 15, s. 5 - 03/03/2000 2010, c. 9, s. 26 (1-3) - 01/07/2012;
2010, c. 24, s. 10 (1)
- no effect - see 2017, c. 34, Sched. 33, s. 44 - 14/12/2017; 2010, c. 24, s. 10 (2)
- no effect - see 2020, c. 36, Sched. 37, s. 24 - 08/12/2020 2017, c. 34, Sched. 33, s. 13 - not in force 2020, c. 36, Sched. 37, s. 5 - not in force