PART I INTERPRETATION
 4.1 (1) An employer of a pension plan that is not an ineligible plan, as described in subsection (25), may elect to defer one or more of the monthly payments of employer contributions that are due during the period beginning on October 1, 2020 and ending on March 31, 2021 in respect of the following: 1.  Normal cost. 2.  The provision for adverse deviations in respect of the normal cost. 3.  All special payments determined in accordance with section 5. O. Reg. 520/20, s. 1 (1). (2) An election under subsection (1) must, (a)  be filed with the Chief Executive Officer in writing, and accompanied by the schedule described in subsection (3), no later than the date on which the contributions for the first deferred month are due; and (b)  specify which monthly payment or payments are deferred and, if more than one monthly payment is deferred, the deferred payments must be in respect of consecutive months. O. Reg. 520/20, s. 1 (1). (3) If an employer makes an election under this section to defer one or more monthly payments, subsection 4 (4) does not apply in respect of the payment or payments and instead the deferred payments shall be made in accordance with a schedule prepared by an actuary that satisfies the following requirements: 1.  The schedule must set out the contributions for each deferred month, determined by the actuary, in respect of the following: i.  Normal cost. ii.  The provision for adverse deviations in respect of the normal cost. iii.  Special payments determined in accordance with section 5. 2.  The schedule must set out the amounts and dates on which the employer will make the deferred payments, and the amounts and dates chosen must comply with the following: i.  50 per cent of the total amount of the payments that would have been required to be made under subsection 4 (4) in the month of October 2020 shall be made, with interest, no later than April 30, 2021 and the remaining amount shall be made, with interest, no later than May 31, 2021. ii.  50 per cent of the total amount of the payments that would have been required to be made under subsection 4 (4) in the month of November 2020 shall be made, with interest, no later than June 30, 2021 and the remaining amount shall be made, with interest, no later than July 31, 2021. iii.  50 per cent of the total amount of the payments that would have been required to be made under subsection 4 (4) in the month of December 2020 shall be made, with interest, no later than August 31, 2021 and the remaining amount shall be made, with interest, no later than September 30, 2021. iv.  50 per cent of the total amount of the payments that would have been required to be made under subsection 4 (4) in the month of January 2021 shall be made, with interest, no later than October 31, 2021 and the remaining amount shall be made, with interest, no later than November 30, 2021. v.  50 per cent of the total amount of the payments that would have been required to be made under subsection 4 (4) in the month of February 2021 shall be made, with interest, no later than December 31, 2021 and the remaining amount shall be made, with interest, no later than January 31, 2022. vi.  50 per cent of the total amount of the payments that would have been required to be made under subsection 4 (4) in the month of March 2021 shall be made, with interest, no later than February 28, 2022 and the remaining amount shall be made, with interest, no later than March 31, 2022. 3.  The schedule must set out the following information, determined by the actuary, in respect of the pension plan as of the first day of the month in which the election is filed: i.  The estimated transfer ratio. ii.  The solvency assets. iii.  The prior year credit balance. iv.  The estimated solvency liabilities. v.  Estimated liabilities for benefits, other than pension benefits and ancillary benefits payable under qualifying annuity contracts, that were excluded in calculating the solvency liabilities. O. Reg. 520/20, s. 1 (1). (4) For clarity, nothing in this section affects an employer’s, or if a person or entity is required to make contributions on behalf of the employer, that person or entity’s obligation under subsection 4 (4) in respect of payments required in respect of the period beginning on April 1, 2021 and ending on March 31, 2022. O. Reg. 520/20, s. 1 (1). (5) For the purposes of paragraph 2 of subsection (3), interest payable in respect of a deferred payment for a particular month begins to accrue on the day on which the payment is, but for the election under this section, required to be made under subsection 4 (4) and ends on the last day of the month in which the payment is required to be made in accordance with the payment schedule. O. Reg. 520/20, s. 1 (1). (6) The interest on the deferred payments shall be calculated at the going concern interest rate or the solvency valuation interest rate, whichever applies in the circumstances, set out in the most recently filed or submitted report under section 3, 4, 13 or 14. O. Reg. 520/20, s. 1 (1). (7) An update to the payment schedule shall be prepared in accordance with the following rules: 1.  The first update must be prepared by an actuary as of the last day of the month that is the third month following the month in which the date on which the first deferred payment would have been required to have been made under subsection 4 (4) had the election not been made. The administrator shall give the update to the Chief Executive Officer no later than 30 days after the last day of the third month. 2.  Subject to paragraph 3, a subsequent update must be prepared by an actuary as of the last day of the third month following the month which included the date as of which the first update was required to be prepared, and subsequent updates must be prepared by an actuary on the last day of every third month thereafter. The administrator shall give the update to the Chief Executive Officer no later than 30 days after the last day of the particular month. 3.  No further updates are required after an update has been given to the Chief Executive Officer that indicates that all deferred payments with interest have been made. 4.  Each update must contain the following information: i.  Information respecting the following: A.  The amount of deferred payments made and interest paid into the pension fund during the three-month period to which the update relates. B.  The amount of the deferred payments to be made and interest to be paid into the pension fund for each of the following that remain outstanding at the end of the three-month period to which the update relates: 1.  Normal cost. 2.  The provision for adverse deviations in respect of the normal cost. 3.  Special payments determined in accordance with section 5. ii.  The following information in respect of the pension plan as of the day on which the update is prepared: A.  The pension plan’s estimated transfer ratio. B.  The pension plan’s solvency assets. C.  The prior year credit balance. D.  The pension plan’s estimated solvency liabilities. E.  Estimated liabilities for benefits, other than pension benefits and ancillary benefits payable under qualifying annuity contracts, that were excluded in calculating the solvency liabilities. iii.  A statutory declaration that is made by an officer of the employer, in a form satisfactory to the Chief Executive Officer, indicating that the employer has complied with the payment schedule with respect to the three-month period to which the update relates and has been in compliance with subsection (11) during that period. O. Reg. 520/20, s. 1 (1). (8) For the purposes of subparagraph 4 iii of subsection (7), the statutory declaration described in that subparagraph shall be provided by the employer to the administrator within 15 days before the update is required to be provided by the administrator to the Chief Executive Officer. O. Reg. 520/20, s. 1 (1). (9) Despite subsection (3), an employer may, at any time, pay an amount equal to the total amount of the deferred payments that remain unpaid, with interest, into the pension fund and if the employer does so, the employer is no longer required to comply with the requirements of this section, including the payment schedule, as of the day the amount is paid into the pension fund. O. Reg. 520/20, s. 1 (1). (10) For the purposes of subsection (9), and despite subsection (5), interest that has accrued in respect of a deferred payment for a particular month in accordance with subsection (5) ends on the last day of the month in which the payment is made and not on the day specified in subsection (5). O. Reg. 520/20, s. 1 (1). (11) An employer who makes an election under this section shall not do any of the following on or after the day the election is filed and ending on the day on which all of the deferred payments are made and interest is paid in accordance with this section: 1.  Declare or pay any amount, whether as a dividend or a return of capital, on any issued and outstanding share capital of the employer. 2.  Buy back or otherwise purchase or redeem any issued and outstanding share capital of the employer. 3.  Pay a bonus, however described, whether non-discretionary or discretionary, and whether in cash or otherwise, to any executive of the employer. 4.  Increase the compensation of any executive of the employer. 5.  Repay the principal amount of any debt or other obligation of the employer in excess of amounts previously scheduled and agreed to before September 21, 2020. 6.  Pay or credit any amount as a loan or advance to or for the benefit of, i.  any person or entity that beneficially owns any issued and outstanding share capital of the employer or of any related person or entity of the beneficial owner, or ii.  any executive of the employer and any related person or entity of the executive. 7.  Enter into any transaction with a related person or entity in the normal course of business and under terms and conditions that are less favourable to the employer than market terms and conditions. O. Reg. 520/20, s. 1 (1). (12) For clarity, an employer has contravened any of paragraphs 1 to 6 of subsection (11) regardless of whether the terms and conditions of the transaction or action are less, equally or more favourable to the employer as compared to market terms and conditions. O. Reg. 520/20, s. 1 (1). (13) If the employer does any of the following, the amount equal to the total amount of deferred payments that remain unpaid shall be treated as if they were not deferred under this section and shall immediately become due and payable to the pension fund, with interest calculated in accordance with subsection (14): 1.  The employer fails to comply with the payment schedule. 2.  The employer fails to provide the administrator with a statutory declaration as required by subsection (8). 3.  The employer fails to comply with subsection (11). 4.  The employer, or if a person or entity is required to make contributions on behalf of the employer, that person or entity fails to make any of the payments required to be made under subsection 4 (4) in respect of the period beginning on April 1, 2021 and ending on March 31, 2022. O. Reg. 520/20, s. 1 (1). (14) For the purposes of subsection (13), and despite subsection (5), interest that has accrued in respect of a deferred payment for a particular month in accordance with subsection (5) ends on the last day of the month in which the payment is made and not on the day specified in subsection (5). O. Reg. 520/20, s. 1 (1). (15) Any special payments determined in accordance with section 5 that are deferred by the employer under this section, including interest on these deferred special payments, are deemed not to be excess special payments for purposes of subsection 37 (12). O. Reg. 520/20, s. 1 (1). (16) The administrator shall not file an amendment to the plan to increase pension benefits or ancillary benefits until after all of the deferred payments are made and interest is paid in accordance with this section, unless the amendment is made to confer a benefit improvement that is required by law or the amendment implements a benefit improvement agreed to in a collective agreement before September 21, 2020. O. Reg. 520/20, s. 1 (1). (17) Subsection (16) applies, whether the benefit improvement is effective before or after September 21, 2020. O. Reg. 520/20, s. 1 (1). (18) The following rules apply to a report under section 3, 4 or 14 that is filed or submitted on or after the day on which the election is filed under this section and before the day on which all the deferred payments are made and interest is paid in accordance with this section: 1.  The report must include a schedule setting out, as of the valuation date, the amount of the deferred payments for each of the following that remain outstanding: i.  Normal cost. ii.  The provision for adverse deviations in respect of the normal cost. iii.  Special payments determined in accordance with section 5. 2.  In respect of the deferred payments that were, before they were deferred, due on or after the valuation date and were made on or after the valuation date, the report must also include the amount of the deferred payments, with interest, that would have been required under the report. 3.  Payments that have been deferred and, before they were deferred, were due before the date the report was filed or submitted, cannot be reduced and, without limiting the generality of the foregoing, any solvency special payments that are deferred may not be reduced by applying the solvency excess under subsection 5 (17.1) and any going concern special payments that are deferred may not be reduced by applying the going concern excess under section 7.0.1. O. Reg. 520/20, s. 1 (1). (19) In respect of a report under section 3, 4 or 14 that is filed or submitted on or after the day on which the election is filed under this section and for which the valuation date of the report is before the day on which all the deferred payments are made and interest is paid in accordance with this section, the following rules apply in respect of contributions that were, before they were deferred under this section, due before the valuation date: 1.  Clause (a) of the definition of “going concern assets” in subsection 1 (2) includes the present value of all deferred payments that have not been made as of the valuation date, except deferred payments in respect of special payments for any solvency deficiency or reduced solvency deficiency that were, before they were deferred, due after the valuation date. 2.  In respect of a pension plan for which a benefit allocation method is used, the solvency asset adjustment must include the present value of all deferred payments that have not been made as of the valuation date. 3.  In respect of a pension plan for which a benefit allocation method is not used, the definition of “C” in subsection 1.2 (2) and the definition of “E” in subsection 1.2 (2.2) must not include the value of deferred payments that have not been made as of the valuation date. 4.  In respect of a pension plan for which a benefit allocation method is not used, the definition of “D” in subsection 1.2 (2.1) must include the present value of all deferred payments relating to solvency payments that have not been made as of the valuation date. O. Reg. 520/20, s. 1 (1); O. Reg. 533/21, s. 3. (20) In the annual statement to be given to members of the pension plan under subsection 27 (1) of the Act and in the biennial statement to be given to the former members and retired members of the pension plan under subsection 27 (2) of the Act, in addition to the information required by section 40, 40.1 or 40.2 of this Regulation, as the case may be, the administrator shall include a statement that the employer has elected to defer the payment of certain contributions and the date by which all the deferred payments will be made by the employer, with interest. O. Reg. 520/20, s. 1 (1). (21) Subsection (20) applies on and after the day the election is filed under this section and before the day on which all the deferred payments are made and interest is paid in accordance with this section. O. Reg. 520/20, s. 1 (1). (22) The following additional rules apply if the valuation date of a report referred to in subsection 12 (1) is before March 31, 2021: 1.  The amounts required to be paid under subsection 12 (2) shall be calculated as if the deferred payments, as determined under the report, that are required to be made in accordance with the payment schedule after the report is filed or submitted were made on the dates that they would have been required to be made if they had not been deferred. 2.  If any deferred payments are in respect of a month or part of a month that falls after the filing date, the following rules apply: i.  A new schedule shall be prepared by an actuary setting out the information required under paragraph 2 of subsection (3) in respect of the deferred payments that are required to be made in accordance with the original schedule after the filing date, reflecting the amounts set out in the report. ii.  The employer shall file the new schedule with the Chief Executive Officer no later than the date on which the report is filed. iii.  As of the date the new schedule is filed, the payment schedule originally prepared under subsection (3) is deemed to no longer be the payment schedule for the purposes of this section and the new schedule is deemed to be the payment schedule for the purposes of this section. O. Reg. 520/20, s. 1 (1). (23) The following modifications to subsection 5 (16) apply: 1.  The total amount of contributions referred to in the definition of “B” shall not include any payments made in respect of interest on contributions that are deferred under this section. 2.  The total amount of contributions referred to in the definition of “C” shall not include any contributions required to be made that were deferred and not yet made as of the valuation date for the report or actuarial cost certificate being prepared, but shall include the value of required contributions that were due before the valuation date for the report or actuarial cost certificate being prepared but were deferred under this section until after the valuation date of the last report or actuarial cost certificate filed or submitted in respect of the plan under this Regulation. O. Reg. 520/20, s. 1 (1). (24) For the purposes of subsection 4 (3.2), the amount of the excess contributions in respect of any deferred payments made under this section is equal to the difference between the contributions made, including interest, and the amount of the deferred payments, including interest, that would have been required to be made if the deferred payments had been made based on the report being filed. O. Reg. 520/20, s. 1 (1). (25) A plan is an ineligible plan for the purposes of subsection (1) if any of the following apply: 1.  The employer of the plan has done any of the things described in paragraphs 1 to 7 of subsection (11) on or after September 21, 2020, except if the employer had a contractual obligation under an agreement that was executed before September 21, 2020 to do the thing before an election is made under this section. 2.  The plan does not provide defined benefits. 3.  The plan is a multi-employer pension plan. 4.  The plan is a jointly sponsored pension plan listed in subsection 1.3.1 (3). 5.  The plan is a public sector pension plan as defined in subsection 1 (1) of the Act. 6.  The plan is a “designated plan” as defined in subsection 1 (1). 7.  The plan is an “individual pension plan” as defined in subsection 1 (1). 8.  Not all the contributions set out in reports filed or submitted under section 3, 13 or 14 that were required to be made before the day the election is filed under this section in respect of the plan have been made in accordance with the Act and the regulations. 9.  The plan is any of the plans described in the definitions of “main pension plans” and “new pension plans” in subsection 2 (1) of Ontario Regulation 255/17 (Stelco Inc. Pension Plans). 10.  The plan is the “Hourly Employees Plan” or the “Salaried Employees Plan” as defined in subsection 2 (1) of Ontario Regulation 484/18 (Essar Steel Algoma Inc. Pension Plans for Salaried Employees and Hourly Employees). 11.  The plan is the “Wrap Plan” as defined in subsection 2 (1) of Ontario Regulation 207/19 (The Essar Steel Algoma Inc. Wrap Pension Plan). 12.  The plan is a plan set out in section 1 of Ontario Regulation 321/09 (General Motors Pension Plans). O. Reg. 520/20, s. 1 (1). (26) In this section, “compensation” means anything paid or provided, directly or indirectly, to or for the benefit of a person who performs duties and functions that entitle the person to be paid, and includes salary, benefits, perquisites and all forms of non-discretionary and discretionary payments, but does not include bonuses; (“rémunération”) “executive” means, in respect of an employer, an employee or office holder who is, a chief executive officer, president, vice president, chief administrative officer, chief operating officer, chief financial officer, chief information officer, chief legal officer, chief human resources officer or chief development officer of the employer or holds any other executive position or office with the employer, regardless of the title of the position or office; (“cadre supérieur”) “payment schedule” means the schedule required under subsection (3) or that is deemed to be the payment schedule by subparagraph 2 iii of subsection (22); (“calendrier de paiement”) “related person or entity” means, (a)  in relation to an employer, (i)  an employee, officer, director or executive of the employer, (ii)  if the employer is a corporation, a person or entity who directly or indirectly holds, or together with the spouse or a child of the person holds, more than 10 per cent of the voting shares carrying more than 10 per cent of the voting rights attached to all voting securities of the corporation, (iii)  the spouse or a child of any person referred to in any of subclauses (i) and (ii), (iv)  if the employer is a corporation, an affiliate, within the meaning of the Business Corporations Act or the Not-for-Profit Corporations Act, 2010, of the employer, (v)  a corporation that is directly or indirectly controlled by a person referred to in any of subclauses (i) to (iii), (vi)  an entity in which a person referred to in subclause (i) or (ii), or the spouse or a child of such a person, has a substantial investment, or (vii)  an entity that holds a substantial investment in the employer, (b)  in relation to a beneficial owner, (i)  an employee, officer, director or executive of the beneficial owner, (ii)  if the beneficial owner is a corporation, a person or entity who directly or indirectly holds, or together with the spouse or a child of the person holds, more than 10 per cent of the voting shares carrying more than 10 per cent of the voting rights attached to all voting securities of the corporation, (iii)  the spouse or a child of any person referred to in any of subclause (i) or (ii), (iv)  if the beneficial owner is a corporation, an affiliate, within the meaning of the Business Corporations Act or the Not-for-Profit Corporations Act, 2010, of the beneficial owner, (v)  a corporation that is directly or indirectly controlled by a person referred to in any of subclauses (i) to (iii), (vi)  an entity in which a person referred to in subclause (i) or (ii), or the spouse or a child of such a person, has a substantial investment, or (vii)  an entity that holds a substantial investment in the beneficial owner, and (c)  in relation to an executive, (i)  the spouse or child of the executive, (ii)  a corporation in which the executive directly or indirectly holds, or together with the spouse or a child of the executive holds, more than 10 per cent of the voting shares carrying more than 10 per cent of the voting rights attached to all voting securities of the corporation, (iii)  a corporation that is directly or indirectly controlled by the executive or by a person referred to in subclause (i), or (iv)  an entity in which the executive, the spouse or a child of the executive, has a substantial investment. (“personne ou entité apparentée”) O. Reg. 520/20, s. 1. (1-3) (27) Revoked: O. Reg. 520/20, s. 1 (4).