Definitions
117.(1)In this section, “approved pension plan” means a pension, superannuation or benefit fund or plan to which a municipality or local board makes contribution under any general or special Act, except the Public Service Pension Act, the Teachers’ Pension Act and the Ontario Municipal Employees Retirement System Act; (“régime de retraite approuvé”) “employee” means an employee as defined in paragraph 46 of section 207; (“employé”) “local board” means a local board as defined in paragraph 46 of section 207; (“conseil local”) “optional service” means, (a) service with any municipality or local board in Canada, (b) service with the civil service of Canada or of any province of Canada, (c) service as an employee of any board, commission or public institution established under any Act of Canada or any province of Canada, or (d) war service; (“service optionnel”) “service” means employment of an employee by a municipality or local board and may include optional service; (“service”) “war service” means active service during World War II or the Korean War, (a) in His or Her Majesty’s naval, army or air forces or in the Canadian or British Merchant Marine, or (b) in any naval, army or air force that was allied with His or Her Majesty’s forces and that is designated by the Lieutenant Governor in Council, providing satisfactory proof of such service is produced; (“service de guerre”) “year’s maximum pensionable earnings” means the Year’s Maximum Pensionable Earnings as defined in the Canada Pension Plan. (“maximum des gains annuels ouvrant droit à pension”) R.S.O. 1990, c. M.45, s. 117 (1). Termination of approved pension plan (2)A municipality or local board that makes contribution to an approved pension plan may discontinue contributions to or terminate the provisions of such plan or may transfer the assets thereof to another such plan or to the Ontario Municipal Employees Retirement Fund. R.S.O. 1990, c. M.45, s. 117 (2). Maximum pension benefit (3)Despite any general or special Act, a municipality or local board shall not make a contribution for the provision of a pension with respect to an employee under an approved pension plan or under the Ontario Municipal Employees Retirement System Act that is in excess of an annual amount of 2 per cent of the employee’s average annual earnings during the 60 consecutive months during which his or her earnings as an employee were highest multiplied by the number of years of his or her service up to 35 years and reduced in any year in which he or she is entitled to a pension under the Canada Pension Plan, (a) for the period from January 1, 1998 to December 31, 1998, by 0.7 per cent of the lesser of such average annual earnings or the average of the year’s maximum pensionable earnings for the year in which he or she ceases to be employed by the municipality or local board and for each of the three preceding years multiplied by the number of years of his or her service after January 1, 1966 up to 35 years; and (b) on and after January 1, 1999, by 0.675 per cent of the lesser of such average annual earnings or the average of the year’s maximum pensionable earnings for the year in which he or she ceases to be employed by the municipality or local board and for each of the four preceding years multiplied by the number of years of his or her service after January 1, 1966 up to 35 years. 2000, c. 5, s. 15 (8). Exception (4)Subsection (3) does not apply so as to reduce any benefit provided under the terms and conditions of an approved pension plan in force on the 31st day of December, 1965, and does not apply where the employee retires having less than ten years of service. R.S.O. 1990, c. M.45, s. 117 (4). Transfer from approved pension plan (5)Despite any general or special Act, where an employee on or after the 1st day of March, 1948, (a) has been contributing to an approved pension plan; (b) terminates his or her employment with the municipality or local board; and (c) without intervening employment becomes a member of the civil service of Ontario or Canada, the civic service of any other municipality or local board or the staff of any board, commission or public institution established under any Act of the Legislature, he or she is entitled, in lieu of a refund of his or her contributions to the approved pension plan plus any interest thereon, to the pension benefits and any other benefits that would be payable under such plan in respect of his or her employment with the municipality or local board to the date of such termination as if he or she had continued in such employment until his or her death or retirement age. R.S.O. 1990, c. M.45, s. 117 (5). Idem (6)If subsection (5) applies, the municipality or local board shall authorize, on the request of the employee, the transfer of a sum of money equal to the larger of, (a) the contributions made by the employee under the approved pension plan, plus any interest thereon; or (b) the present value, calculated as of the date of the transfer of such sum of money on the basis of generally accepted actuarial methods, of the pension benefits and any other benefits under the approved pension plan to which the employee is entitled as provided in this subsection, to any fund or plan maintained to provide pension benefits for members of such civil or civic service or staff of which the employee has become a member, if such a transfer is permitted under the terms of the fund or plan to which the transfer is to be made. R.S.O. 1990, c. M.45, s. 117 (6). Transfer to approved pension plan (7)Despite any general or special Act, where a member of, (a) the civil service of Ontario or Canada; (b) the civic service of any other municipality or local board; or (c) the staff of any board, commission or public institution established under any Act of the Legislature, on or after the 1st day of March, 1948 becomes an employee of a municipality or local board that makes contributions to an approved pension plan and there is a sum of money at the credit of the member in a superannuation or pension fund or plan maintained for members of such civil or civic service, the municipality may accept the transfer of such sum of money and apply it for the benefit of the employee in accordance with the terms of the approved pension plan. R.S.O. 1990, c. M.45, s. 117 (7). Restriction upon refund (8)Where a sum of money is transferred in accordance with subsection (6) or (7) to a fund or plan and the employee or member is entitled to a refund under such fund or plan, only that portion of the sum so transferred that is attributable to contributions made by the employee or member, as determined by the employer responsible for the administration of the fund or plan from which the sum is transferred, may be refunded to the employee or member, and the remainder shall be credited to the fund or plan to which the sum is transferred. R.S.O. 1990, c. M.45, s. 117 (8). Approval not required (9)Despite any special Act, the approval of the Minister or Ministry is not required to amend any by-law of a municipality related to an approved pension plan. R.S.O. 1990, c. M.45, s. 117 (9).