Supplementary Benefits
26. (1) Every employer who has elected to participate in the System may, by by-law or resolution filed with the president, enter into or amend an agreement with the Board for the payment of supplementary benefits from the Fund in respect of all or any class of the employees of the employer, or in respect of councillors of the employer, who are or become members and for this purpose employees to whom a bargaining agreement applies shall constitute a class of employees. R.R.O. 1990, Reg. 890, s. 26 (1); O. Reg. 783/92, s. 2. (2) An agreement under subsection (1) may also provide for benefits in respect of all or a portion of optional service if the optional service is eligible service under the Income Tax Act (Canada). O. Reg. 591/98, s. 17. (2.1) Revoked: O. Reg. 591/98, s. 17. (3) The form and content of a supplementary agreement shall be determined by the Board but in any event each such agreement shall provide that, (a) the Board, on the advice of the actuary, shall determine the amount of the contributions to be paid to the Fund and the manner of payment of the contributions to provide the supplementary benefits under the agreement; and (b) section 19 applies to the contribution paid by a member under a supplementary agreement. R.R.O. 1990, Reg. 890, s. 26 (3); O. Reg. 775/91, s. 22 (2). (4) Where a supplementary agreement in force on the 31st day of December, 1982 provides for a pension benefit of a member to be calculated in the manner as prescribed in section 13 substituting prior service for credited service, the prior service of the member shall be deemed to be credited service. R.R.O. 1990, Reg. 890, s. 26 (4); O. Reg. 775/91, s. 22 (3). (5) A supplementary agreement in force on the 31st day of December, 1982 that provides a fixed amount of pension benefit payable to the member on the member’s normal retirement date shall be deemed to provide that the fixed amount of pension shall be paid on the same terms and conditions and coincident with the payment of a pension to the member under section 13, 14, 15, 15.1, 16 or 17 and that the fixed amount of such pension may be increased from time to time by the Board on the advice of the actuary. R.R.O. 1990, Reg. 890, s. 26 (5); O. Reg. 775/91, s. 22 (4). (6) An employer may enter into a supplementary agreement or may amend an agreement referred to in subsection (5) to provide for a full pension benefit or a portion of a pension benefit of a member calculated in the manner as prescribed in section 13 substituting prior service for credited service, and, (a) if the agreement provides for a full pension benefit, the prior service of the member shall be deemed to be credited service; and (b) if the agreement provides for a portion of the pension benefit, the portion shall be paid under the same terms and conditions and coincident with the payment of a pension to the member under section 13, 14, 15, 15.1, 16 or 17. R.R.O. 1990, Reg. 890, s. 26 (6); O. Reg. 775/91, s. 22 (5). (7) A supplementary agreement in force on the 31st day of December, 1982 shall be deemed to be amended as of the 1st day of January, 1983, until such time as it is amended in fact, to accord with the form and content of such agreement as determined by the Board under subsection (3). R.R.O. 1990, Reg. 890, s. 26 (7). (8) An early retirement pension shall be payable to a member under a supplementary agreement only if the member is declared by the employer to be unable to perform the duties of his or her employment due to mental or physical incapacity, and only to the extent that the pension exceeds any amount payable to the member under section 17. O. Reg. 783/92, s. 13 (2). (8.1) A pension payable to a member under subsection (8) is subject to the conditions for early retirement pensions under the Income Tax Act (Canada) and its regulations. O. Reg. 775/91, s. 22 (7). (9) Revoked: O. Reg. 775/91, s. 22 (8). (10) Revoked: O. Reg. 775/91, s. 22 (8). (11) Where optional service is provided for under a supplementary agreement a member may establish credit for any or all such service if the member elects to purchase it and pays to the Board the cost of the service on terms satisfactory to the employer and the Board. R.R.O. 1990, Reg. 890, s. 26 (11). (12) For the purposes of subsection (11), the cost of the service for which credit is established shall be, (a) for a member whose normal retirement age is sixty-five years, 11 per cent; or (b) for a member whose normal retirement age is sixty years, 13 per cent, of the annual rate of salary authorized to be paid to the member, (c) if the member’s election is made within one year from the date the member becomes entitled to elect under the agreement, on the most recent date on which the member became employed by the employer; or (d) if the member’s election is made after one year from the date the member becomes entitled to do so under the agreement, at the time the member makes the election, multiplied by the member’s years or part years of optional service together with interest as determined by the Board on the advice of the actuary on the amount so calculated, compounded annually from the most recent date on which the member became employed by the employer to the first day of the year in which the member becomes entitled to make an election for optional service. R.R.O. 1990, Reg. 890, s. 26 (12). (12.1) Despite subsection (12) and for the purposes of subsection (11), the cost of a benefit provided in respect of optional service pursuant to agreements entered into or amended on or after the 1st day of January, 1992 shall equal the present value of that benefit. O. Reg. 783/92, s. 13 (3). (12.2) The cost of a benefit established under subsection (12.1) shall be paid to the Fund by a member or by an employer and may be shared by them in such manner as they may agree. O. Reg. 783/92, s. 13 (3). (13) Where a member entitled to receive a supplementary benefit under subsection (2), (4) or (6) in respect of prior service is entitled to receive a pension benefit under a previous pension plan or fund in respect of the same period of service, the annual amount of the pension benefit under the previous pension plan or fund, as established on the later of the 31st day of December, 1982 or the effective date of an agreement under subsection (1), shall be deducted from any supplementary benefit payable under those subsections and, in the case of optional service, a reduction shall be made in the amount payable by the member under subsection (11) of an amount determined to be appropriate by the Board on the advice of the actuary. R.R.O. 1990, Reg. 890, s. 26 (13). (14) Member contributions towards the provision of a benefit under subsection (8) shall cease to be made to the Fund under a supplementary agreement as of the 31st day of December, 1982 and the amount of accumulated contributions of a member plus interest thereon at a rate determined by the Board shall be placed to the credit of the member in the Fund to provide a benefit to be determined by the Board on the advice of the actuary to be paid to or in respect of the member in addition to and under the same terms and conditions as any other benefit payable to or in respect of the member under this Regulation, provided however that, on or after a date to be designated by the Board, the member may elect to revoke the member’s credit in the Fund and have the amount of the credit transferred to a registered retirement savings plan of the member. R.R.O. 1990, Reg. 890, s. 26 (14). (15) Revoked: O. Reg. 775/91, s. 22 (10). (16) Member contributions that remain in the Fund as a result of the elimination of supplementary benefits that were duplicated by benefits otherwise payable under this Regulation with effect from the 1st day of January, 1978, plus interest calculated in accordance with section 19, shall be retained to provide a benefit to be determined by the Board on the advice of the actuary to be paid to or in respect of the member in addition to and under the same terms and conditions as any other benefit payable to or in respect of the member under this Regulation and the Board may increase such benefit from time to time on the advice of the actuary. R.R.O. 1990, Reg. 890, s. 26 (16). (17) Despite this section, in the event that employees of an employer who were members of an approved pension plan become members of the System on or after the 1st day of January, 1990, the employer may enter into an agreement with the Board under subsection (1) to continue to provide to the employees any benefits to which they were entitled under the approved pension plan but which are not provided under this Regulation. O. Reg. 775/91, s. 22 (11). (18) Despite anything in this section, no benefit shall be payable or funded in respect of a member’s prior or optional service which occurs after 1989 until certification of the member’s past service pension adjustment under the Income Tax Act (Canada). O. Reg. 783/92, s. 13 (4).