11 Minister in
relation to EPPA
12 Beneficiaries
13 Temporary
saving of former relationship breakdown rules
14 Liability of
benefits to legal process
15 Liability of
Crown and prohibition against extra‑statutory benefits or remedies
16 Rights and
obligations under former Act
Part 2
Transfers Between Plans
16.15 Portability arrangements between LAPP and PSPP
Part 3
Division and Distribution of Benefits on Relationship Breakdown
20 Application of
Employment Pension Plans legislation with adaptations to the Plans
21 Interpretation
22 Application of
this Part
23 Prevalence of
this Part in relation to benefits
24 Effect of
matrimonial property orders
25 Requirements
for matrimonial property orders
26 Division and
distribution of benefits generally
27 Total
entitlement
28 Total
pre-division benefit
29 Non-participant
pension partner’s share
30 Distribution of
non-participant pension partner’s share
31 Adjustment of
participant pension partner’s benefit
32 Bar against
further claims
33 Disclosure of
information
34 Application to
Court for clarification, etc.
35 Assignment and
protection from execution, etc.
36 Fees
37 Filing of
documents with Minister
Schedules
Part 1
General Provisions
Interpretation
1(1) In this Part,
(a) “employee
nominee” has the meaning assigned to it in section 1(a) of Schedule 1, 2, 3, 4
or 5, as the case may be;
(b) “employer
nominee” has the meaning assigned to it in section 1(b) of Schedule 1, 2, 3, 4
or 5, as the case may be;
(c) repealed
AR 144/2001 s3.
(2) Interpretation provisions in the applicable
plan rules apply with respect to the interpretation of this Regulation, as this
Regulation relates to the Plan in question.
AR 365/93 s1;144/2001
Interpretation in
relation to plan rules
2 To enhance the readability of all the
plan rules and the Schedules to this Regulation and the capacity for cross‑referencing,
(a) provisions
in different plan rules and Schedules to this Regulation that are identical or
similar or that correspond to each other as they relate to different pension
plans, and
(b) provisions
in Subdivisions A and B of the Divisions of Part 5 of the plan rules that are
identical or similar or that correspond to each other, as they relate to
different periods of time,
are given identical or
almost identical enactment numberings and letterings, even if this means
breaking the normal sequential numbering and lettering system for regulations.
Application
3(1) This Part applies to all the pension plans
referred to in section 1(a), (b), (d) and (e) of the Act.
(2) The Schedules to this Regulation
contain provisions that are each unique to the pension plan dealt with.
AR 365/93
s3;144/2001;383/2003
4 Repealed AR 242/97 s2.
Term of office of
Board members
5(1) Subject to subsection (2), a member of a Board
holds office for the term fixed in relation to that member by the Lieutenant
Governor in Council.
(2) A
member of a Board may be removed or suspended only by the Lieutenant Governor
in Council on the written recommendation of the body or of all the bodies that
nominated the member or its or their successors.
Internal Board rules
6 Subject to the Interpretation Act,
a Board may make rules respecting the calling of and the conduct of business at
its meetings.
Chair and vice‑chair
of Board
7(1) A Board shall elect its chair and vice‑chair
for a 2‑year term.
(2) The
offices of chair and vice‑chair of a Board are to rotate every 2 years
between employer nominees on the one hand and employee nominees on the other.
(3) At
any one time, the offices of chair and vice‑chair are to be occupied by
one employer nominee and one employee nominee.
(4) The
vice‑chair shall act as chair when the chair is absent or unable to act.
Remuneration
7.1(1) Remuneration
is to be paid, as plan costs,
(a) in
the case of the Public Service Pension Board, to or on behalf of all members,
including the chair, of the Board who are not employees of the Crown or of the
Alberta Union of Provincial Employees, and
(b) in
the case of the other 3 Boards, to or on behalf of all members, including the
chair, of each Board,
at the rate payable
under section 1 or 2, as the case may be, of Part A of Schedule 1 to the
Committee Remuneration Order that is in force from time to time
(O.C. 84/2005 at the time of the enactment of this subsection).
(2) Remuneration is to be paid, as plan
costs, to or on behalf of all members of the Board’s Investment Committee who
are not also members of the Board at the rate equal to twice the amount payable
under section 1 of Part A of Schedule 1 to the Order in Council referred to in
subsection (1).
(3) The members of the Board’s
Investment Committee who are not members of the Board are entitled to be paid,
as plan costs, travelling and living expenses in accordance with section 3 of
Part A of Schedule 1 to the Order in Council referred to in subsection (1).
(4) Unless
the Minister of Finance otherwise directs the Board in writing, where
remuneration is payable under this section to or on behalf of an employee of
the Crown, it belongs to the Crown and is to be paid to the Minister of
Finance.
AR 100/2005 s2
Expenses of Board
members
8 The members of a Board are
entitled to be paid, as plan costs, travelling and living expenses in
accordance with the Public Service Subsistence, Travel and Moving Expenses
Regulation under the Public Service Act.
AR 365/93 s8;224/2000
Indemnification
8.1(1) Each Plan indemnifies a member of the
respective Board for any damages or legal and other expenses incurred in
defending an administrative or civil claim against that Board member.
(2) Each
Plan indemnifies the respective Board for any damages or legal and other
expenses incurred in defending an administrative or civil claim against that
Board.
(3) Subject
to subsections (1) and (2), an indemnification under this section covers
(a) anything
done by the Board member or Board, as the case may be, in good faith, or
(b) any
omission on his part to act provided that he has acted in good faith generally,
in the exercise and
performance of his or its powers, duties and functions under the Act or in
relation to the respective Plan.
(4) The
costs of an indemnification under this section are to be paid from the
respective plan fund.
(5) Repealed
AR 293/95 s2.
(6) To
the extent that the payment of damages or legal and other expenses incurred in
defending any claim against the Local Authorities Pension Plan Board of
Trustees or the Universities Academic Pension Board or the management Employees
Pension Board, or its members, is covered by the indemnity given by section 20
or 40 or 41(2) of Schedule 1 or by section 20 or 34 of Schedule 3 or by section
24.9 of Schedule 5, as the case may be, to this Regulation, an indemnification
by this section only applies
(a) if
all remedies reasonably available for the enforcement of that first‑mentioned
indemnity have been exhausted, and
(b) to the extent of any shortfall not
recoverable under those reasonably available remedies.
AR 317/94
s2;293/95;293/96;197/97;198/97;236/99;254/99
Indemnification of
Investment Committee (if any) members
8.2(1) In
addition to indemnifications under section 8.1, each Plan that has an
Investment Committee indemnifies an individual
(a) who,
in the opinion of the Board, possesses specialized skills, and
(b) who
is appointed a member of the Investment Committee of that Plan’s Board by the
Board,
for any damages or
legal and other expenses incurred in defending an administrative or civil claim
against that individual.
(2) Subject to subsection (1), an
indemnification under that subsection covers
(a) anything
done by the individual in good faith, or
(b) any
omission on that individual’s part to act provided that he or she has acted in
good faith generally,
in the performance of
duties as a member of the Investment Committee.
(3) The
costs of an indemnification under this section are to be paid from the plan
fund.
AR 100/2005 s3
Employer’s report
9(1) The Minister may require any employer to
provide to him, within the time specified by the Minister, information that is
required by the Minister to enable him to fulfil his functions under the Act,
the plan rules or this Regulation.
(2) Repealed AR 116/99 s2.
(3) Repealed AR 116/99 s2.
AR 365/93 s9;116/99
Reciprocal agreements
10(1) Where the Minister is the administrator of the
other pension plan directly or indirectly referred to in sections 84 and 97 of
the plan rules, the Minister may make an order dealing with any subject‑matter
that could be dealt with in an agreement with another party under those
enactments.
(2) The
Regulations Act does not apply to an order under subsection (1).
Minister in relation
to EPPA
11 The Minister, in the capacity of
administrator of a Plan, is bound by those provisions of the Employment
Pension Plans Act and the regulations under it that are applicable to the
Plan.
Beneficiaries
12(1) Any person on whose death a benefit is payable
is a participant for the purposes of section 47 of the Trustee Act.
(2) When
a benefit is paid to a surviving pension partner, or the personal
representative of an estate by virtue of the operation of section 86(3) of the
plan rules or section 99, as it incorporates section 86(3), of those plan
rules, the payment is validly made as against the Plan, the Minister, the
Minister of Finance and the Crown notwithstanding that a designation is filed
under the Plan after the payment is made, and the person who would have been
entitled under the designation has no right to any benefit as a result of the
designation.
(3) A
benefit paid on the death of any person otherwise than to the personal
representative of a deceased’s estate is not part of the estate of the deceased
and is not subject to the claims of his creditors.
(4) The right of any person under section 47 of the
Trustee Act to a benefit is subject to any rights given by Division 1 or
2 of Part 5 of the plan rules to any other person.
AR 365/93
s12;8/2002;100/2002;270/2002
Temporary saving of
former relationship breakdown rules
13(1) Interpretation provisions in Part 3 apply in
this section.
(2) Notwithstanding
Part 3, either pension partner may file a matrimonial property order under this
section that reflects the laws that were applicable with respect to the
division and distribution of benefits before June 24, 2003, and in that case
those laws continue to apply with respect to the division and distribution of
the participant pension partner’s benefit.
(3) The
right of the pension partners to file under subsection (2) expires, and this
section is repealed, at the end of December 2007.
(4) Notwithstanding section 3(1), this section also
applies to the Closed Management Plan.
AR 365/93
s13;206/2003;383/2003;247/2004;235/2005;262/2006
Liability of benefits
to legal process
14 A person’s interest in a benefit is not
subject to garnishee proceedings, attachment, seizure or any legal process.
Liability of Crown
and prohibition against extra-statutory benefits or remedies
15(1) The Minister of Finance and the Minister shall
not provide, and a person is not entitled to, any benefits or any other remedy
at law or in equity relating to a benefit unless that benefit or remedy is
expressly provided for in and permitted by the applicable Plan or this
Regulation.
(2) An
employer is not an agent of the Minister, the Minister of Finance, the relevant
Board or the Crown for any purpose connected with the Plan or this Regulation.
(3) Without
limiting subsection (1) or (2), no action lies against the Minister, the
Minister of Finance, a Board or the Crown in respect of
(a) any
representation made, or any other information provided, by any person to any
other person in respect of benefits or other entitlements under the Plan or
this Regulation, or
(b) any failure to provide any information in
connection with the Plan, or to provide it on time.
AR 365/93 s15;270/2002
Rights and obligations
under former Act
16(1) A person is not entitled to any benefit or
other right provided for by or under the former Act except so far as the
benefit or right is provided for by or under the Plan or this Regulation.
(2) Subsection
(1) does not affect the amount of any benefit payment of which commenced before
the commencement of this section.
16.1 Repealed AR 270/2002 s3.
Part 2
Transfers Between Plans
Portability
arrangements between
LAPP and PSPP
16.15(1) Pursuant
to section 12(g.1) of Schedules 1 and 2 to the Act (and as distinct from the
powers conferred by section 84 of the plans’ plan rules), the Minister may by
order establish portability arrangements between the Local Authorities Pension
Plan and the Public Service Pension Plan, after consulting with the pension
boards for those plans, for the purpose of enabling the transfer of pension
entitlements from one plan to the other with respect to an identified group of
persons.
(2) An order under subsection (1) is to be treated
as incorporated by reference in this Part.
AR 235/2005 s3
16.2 Repealed AR 144/2001 s6.
16.3 Repealed AR 144/2001 s6.
16.4 Repealed AR 144/2001 s6.
16.41 Repealed AR 144/2001 s6.
16.5 Repealed AR 144/2001 s6.
16.6 Repealed AR 144/2001 s6.
16.7 Repealed AR 144/2001 s6.
16.8 Repealed AR 144/2001 s6.
16.9 Repealed AR 144/2001 s6.
17 Repealed
AR 144/2001 s6.
17.1 Repealed AR 144/2001 s6.
18 Repealed AR 144/2001 s6.
19 Repealed AR 144/2001 s6.
Part 3
Division and Distribution of Benefits on Relationship Breakdown
Application of
Employment Pension Plans legislation with adaptations to the Plans
20 The provisions of the Employment
Pension Plans Act and the Employment Pension Plans Regulation
(AR 35/2000) respecting the division and distribution of benefits on the
breakdown of the relationship of pension partners to whom that legislation
relates, as adapted for the purposes of the Plans and contained in this Part,
apply with respect to the Plans and, for the convenience of the user of this
Regulation, the provisions of that legislation, as adapted where applicable,
are set out in full rather than adopted by reference.
AR 383/2003 s4
Interpretation
21(1) In this Part,
(a) “Closed
Management Plan” means the pension plan referred to in section 1(f) of the Act;
(b) “Court”
means the Court of Queen’s Bench;
(c) “delayed
division” means a division where the distribution is to be delayed under
section 30(1)(c)(ii);
(d) “division
date” means
(i) where the participant pension partner’s pension commencement
occurred before the making of the matrimonial property order, the time when
that order is made,
(ii) where there is a delayed division, the participant pension
partner’s event date, or
(iii) in any other case, the end date;
(e) “division
factor” means the fraction constituting the proportion of the total pre‑division
benefit that is awarded or given to the non‑participant pension partner
in the matrimonial property order;
(f) “end
date” means the time marking the end of the period of joint accrual;
(g) “event
date” means the time
(i) as of when the participant pension partner, having terminated, is
paid a lump sum or has a lump sum transferred,
(ii) when the participant pension partner commences a pension,
(iii) when the participant pension partner dies, or
(iv) as of when the participant pension partner transfers the pension
entitlement to another registered pension plan under a reciprocal agreement or
other transfer arrangement,
whichever event occurs
first;
(h) “file”
means file under section 37;
(i) “matrimonial
property order” or “order” means a matrimonial property order within the
meaning of the Matrimonial Property Act, or a similar order enforceable
in Alberta of a court outside Alberta, that affects the payment or distribution
of a pension partner’s benefits and, to avoid doubt, includes a consent order
of the Court adopting an agreement entered into between pension partners in
proceedings under the Matrimonial Property Act providing for the
division and distribution of a benefit;
(j) “non‑participant
pension partner’s share” means the share referred to in section 29;
(k) “participant
pension partner” means, in relation to the Plan, the pension partner who is or
was the participant in question, and “non‑participant pension partner”
means the other pension partner;
(l) “pension
partner” means a pension partner or former pension partner, or a spouse or
former spouse in the case of the Closed Management Plan, to whom this Part
applies by virtue of section 22;
(m) “pensionable
age” means, in relation to the participant pension partner and
(i) in relation to the Local Authorities Pension Plan and the Public
Service Pension Plan, the age of 65 years,
(ii) in relation to the Management Employees Pension Plan, the age of
60 years, and
(iii) in relation to the Special Forces Pension Plan and the Closed
Management Plan, the age of 55 years;
(n) “period
of joint accrual” means the period whose beginning and end are specified in the
matrimonial property order in accordance with section 25(1)(a);
(o) “Plan”
means the applicable pension plan referred to in section 22(1);
(p) “plan
rules” means the plan rules of the Plan in question and, in the case of the
Closed Management Plan, means the rules of that Plan, as contained in Schedule
6 to the Act, the regulations thereunder and the old plan within the meaning of
that Schedule;
(q) “total
entitlement” means the total benefit, or the value of that benefit, accrued to
the participant pension partner, calculated in accordance with section 27;
(r) “total
pre‑division benefit” means the proportion of the total benefit, or the
value of that proportion, that is accrued during the period of joint accrual,
calculated in accordance with section 28.
(2) For
the purposes of this Part, a participant pension partner is vested at the
relevant time if that person, were he to terminate at that time, would be
entitled to receive a pension immediately or in the future.
(3) Where,
under this Part, a commuted value is to be paid or transferred, then in
construing this Part in relation to the Closed Management Plan, the relevant
provisions in the Management Employees Pension Plan (AR 367/93) are
to be treated as applying to the Closed Management Plan.
(4) Subject
to subsection (3), where a term from the plan rules of the Management Employees
Pension Plan applies by virtue of section 1(2) and that term is not used in the
Closed Management Plan, then, for the purposes of this Part, the term is to be
treated as having the equivalent meaning under the Closed Management Plan or as
close to it as the comparative contexts allow.
(5) To
avoid uncertainty, for the purposes of this Part, pensionable service
accumulated by the participant pension partner during the period of joint
accrual includes
(a) all
pensionable service that is credited to the participant pension partner before
the end date by reason of a transfer into the Plan of money under a reciprocal
agreement or other transfer arrangement and that relates to service performed
during the period of joint accrual, and
(b) all
other prior service to the extent that it was paid for during the period of
joint accrual,
but does not include any other prior service.
AR 383/2003 s4;262/2006
Application of this
Part
22(1) This Part applies to all the pension plans
referred to in section 3(1) and also to the Closed Management Plan.
(2) Subject
to section 33, this Part applies with respect to the division and distribution
of benefits where, as between pension partners, a matrimonial property order is
filed with the Minister, and this Part applies notwithstanding any other
provision of the Act, the regulations and the plan rules, and notwithstanding
any other rule of law or equity to the contrary, except that section 13
prevails over this Part to the extent of inconsistencies between them.
(3) This Part applies only with respect to a
matrimonial property order made on or after June 24, 2003.
AR 383/2003 s4
Prevalence of this
Part in relation to benefits
23(1) Notwithstanding the Matrimonial Property Act
or any other rule of law or equity to the contrary, the Court shall not make a
matrimonial property order dividing or distributing a benefit or any portion of
a benefit except in a manner that complies with this Part.
(2) Nothing in subsection (1) prevents the Court
from distributing, under the Matrimonial Property Act, property that is
not a benefit in a manner that takes account of how a benefit is to be divided
or distributed in compliance with this Part.
AR 383/2003 s4
Effect of matrimonial
property orders
24 Subject to this Part, the entitlement
of any person to a benefit is subject to entitlements arising under a
matrimonial property order filed with the Minister.
AR 383/2003 s4
Requirements for
matrimonial property orders
25 A matrimonial property order must specify
(a) the
beginning and end of the period that the benefit is considered to have jointly
accrued for the purposes of the Matrimonial Property Act,
(b) whether
or not there is to be a delayed division, and
(c) the division factor, which must not exceed
50%.
AR 383/2003 s4
Division and
distribution of benefits generally
26 Benefits must be divided
between the pension partners, and the non‑participant pension partner’s
share distributed, in accordance with this Part and, subject to the foregoing,
in accordance with the applicable matrimonial property order.
AR 383/2003 s4
Total entitlement
27 The total entitlement, to be calculated
as of division date,
(a) if
the participant pension partner is not then vested, is equal to the value of
the participant pension partner’s employee contributions,
(b) if
the participant pension partner has already commenced to receive a pension, is
the pension itself,
(c) if
the non‑participant pension partner is entitled to choose and chooses a
delayed division, is the commuted value of the participant pension partner’s
pension or the value of any other benefit as at the event date, and includes
the employee contribution excess, if any, or
(d) if
the participant pension partner is then vested and has not yet commenced to
receive a pension and the non‑participant pension partner is not entitled
to or does not choose a delayed division, is equal to the commuted value of the
pension, calculated as if the participant pension partner had terminated at the
end date and on the assumption that the participant pension partner will
commence to receive the pension
(i) if pensionable age has not yet been reached, at pensionable age,
or
(ii) if pensionable age has already been reached,
(A) on the date mentioned in the matrimonial
property order, if such a date is so mentioned, or
(B) if not so mentioned, on the day following
the day on which the order is made.
AR 383/2003 s4
Total pre-division
benefit
28 The total pre‑division benefit is
to be calculated, as of the division date, according to the following formula:
![](/web/20061207201303im_/http://www.qp.gov.ab.ca/Documents/REGS/1993_365_files/image002.gif)
where
A = the
total pre‑division benefit
B = the
total entitlement
C = the
aggregate of all the pensionable service accumulated by the participant pension
partner in the period of joint accrual
D = the
participant pension partner’s total pensionable service.
AR 383/2003 s4
Non-participant
pension partner’s share
29(1) The non‑participant pension partner’s
share is to be calculated as the total pre‑division benefit multiplied by
the division factor.
(2) Where the non‑participant pension
partner’s share is paid or transferred after the division date, interest is to
be paid on it or it is to be re‑computed in the same manner as the plan
rules require, where applicable, in the case of a benefit paid or transferred
after termination.
AR 383/2003 s4
Distribution of
non-participant pension partner’s share
30(1) The non‑participant pension partner’s
share shall,
(a) if
the participant pension partner was not vested at the end date, and at the non‑participant
pension partner’s option, either be paid as a lump sum or transferred to a
retirement savings vehicle belonging to the non‑participant pension
partner,
(b) if
at the end date the participant pension partner was vested but was not yet
within 10 years of pensionable age and has not yet commenced to receive a
pension, be transferred to a retirement savings vehicle belonging to the non‑participant
pension partner, or
(c) if
at the end date the participant pension partner was vested and was within 10
years of or had already attained pensionable age and has not yet commenced to
receive a pension, at the non‑participant pension partner’s option,
either
(i) be transferred to a vehicle referred to in clause (b), or
(ii) be paid or so transferred at the participant pension partner’s
event date.
(2) Notwithstanding
subsection (1), if and to the extent that the non‑participant pension
partner’s share were a benefit under the plan rules which the plan rules would
treat
(a) as
locked in, the share is locked in, or
(b) as
not locked in, the share is not locked in.
(3) Notwithstanding
subsections (1) and (2), the non‑participant pension partner’s share
under the Closed Management Plan is not locked in except to the extent that it
is based on commuted value.
(4) Notwithstanding subsection (1), where a pension
has already commenced to be paid at the time the matrimonial property order is
made, the non‑participant pension partner’s share is to be paid directly
to the non‑participant pension partner in the form of a pension which,
for the purposes of the Plan, is a portion of the participant’s pension
partner’s pension.
AR 383/2003 s4
Adjustment of
participant pension partner’s benefit
31(1) References in this section to the participant
pension partner’s benefit, if the event date is that individual’s death, are to
the benefit payable on the death.
(2) After
the division date, the Minister shall adjust the participant pension partner’s
benefit using the relevant calculations set out in this section.
(3) If
the participant pension partner’s pension commencement occurred before the
making of the matrimonial property order or in the event of a delayed division,
the participant pension partner’s benefit as at the division date shall be
decreased by the amount of the total pre‑division benefit multiplied by
the division factor.
(4) If
subsection (3) does not apply, the participant pension partner’s benefit shall
be reduced at the participant pension partner’s event date to take into account
the non‑participant pension partner’s share in accordance with
subsections (5) to (7).
(5) If
the participant pension partner is not vested at the event date, the
participant pension partner’s benefit shall be reduced by the sum of the non‑participant
pension partner’s share at the end date and interest thereon from the end date
to the event date.
(6) If
the participant pension partner’s benefit is a pension, the pension shall be
reduced by A where
A = B x C x D x E
B = the
total pre‑division benefit, calculated on the assumption (whether so or
not) that the participant pension partner was vested at the end date
C = the
division factor
D = the
factor, equal to or greater than 1, representing the compound effect of the
annual cost of living increases, if any, between the end date and the event
date, based on actual inflation measured annually in that period, with cost‑of‑living
increases being determined using a formula that is consistent with the
assumption for cost‑of‑living increases applying after termination
and prior to pension commencement inherent in the commuted value calculation
under the Plan
E = the
factor representing the reduction to be applied when pension commencement
occurs before pensionable age that is certified by an actuary and approved in
writing by the Minister for the purposes of this provision in respect of the
Plan.
(7) If
the participant pension partner is vested at the event date and the participant
pension partner’s benefit is a lump sum or transferable amount, that amount,
excluding any employee contribution excess, shall be adjusted by multiplying it
by the ratio of (F‑A)/F, where
F
= the pension that would have been payable had a pension rather than a lump sum
or transfer been chosen, calculated as if the participant pension partner had
terminated on the event date and on the assumption that the participant pension
partner would have commenced to receive the pension on attaining the age of 55
years or at the event date, if later,
and
A
= the amount A, as set out in subsection (6).
AR 383/2003 s4
Bar against further
claims
32 If the full amount of the non‑participant
pension partner’s share has been distributed pursuant to this Part,
(a) that
pension partner has no further entitlement to any benefit or any other right
under the Plan, and
(b) the Minister and the Plan have no further
obligation to that pension partner and have no liability to either pension
partner or any other person by reason only of the fact that the matrimonial
property order was complied with.
AR 383/2003 s4
Disclosure of
information
33(1) In this section, references to pension
partners, participant pension partners or non‑participant pension
partners include pension partners or former pension partners, within the
meaning of the plan rules, who are or were married to each other, where a
matrimonial property order is being contemplated.
(2) The
Minister shall provide to both pension partners, as soon as reasonably
practicable after receiving both a written request for it from either and proof
that is satisfactory to the Minister of their matrimonial relationship, a
written statement specifying
(a) an
estimate of the total entitlement, calculated however as of the date of the
request rather than the division date, or such earlier date as is specified in
the request,
(b) the
date on which the participant pension partner became a participant,
(c) the
amount of pensionable service accumulated by the participant pension partner up
to the date referred to in clause (a) and, if applicable, the amount of
pensionable service accumulated during the period of joint accrual,
(d) the
date, if applicable, on which the participant pension partner terminated, and
(e) other
information whose disclosure is contemplated by subsection (5), on request for
it.
(3) The
Minister is not required to provide the statement referred to in subsection (2)
more than once in a calendar year.
(4) The
Minister shall provide to the participant pension partner, as soon as
reasonably practicable after the division takes place, a written statement
containing
(a) the
date the division became effective, and
(b) a
summary and description of the remaining benefits to which the participant
pension partner will be entitled after the distribution of the non‑participant
pension partner’s share.
(5) A
non‑participant pension partner is a prescribed person for the purposes
of section 9.2(2)(d) of the Act to the extent that the Minister considers that
the employment information (within the meaning of section 9.2(1) of the Act) is
required
(a) to
determine the entitlement under this Part of a married or formerly married
individual referred to in subsection (1), or
(b) to complete the division and distribution
pursuant to a filed matrimonial property order.
AR 383/2003 s4
Application to Court
for clarification, etc.
34(1) If, on the filing of a matrimonial property
order, the Minister is unable to comply with it because it is incomplete, it
does not comply with this Part or there is doubt as to what exactly the
Minister must do to comply with it, the Minister may apply to the Court to
redress the situation arising from that inability so to comply.
(2) An
application to the Court under subsection (1) is to be by originating notice in
the case of a consent order referred to in section 21(1)(i) or by notice of
motion in the case of any other matrimonial property order, in either case
supported by an affidavit on 7 days’ notice or any shorter period that the
Court allows.
(3) The costs of an application under subsection
(1) are to be borne by both or either of the pension partners, as decided by
the Court and, to the extent that any such costs are paid by the Minister, the
Minister has a right of action in debt against the pension partner or pension
partners for the costs, according to the Court’s decision on the costs.
AR 383/2003 s4
Assignment and
protection from execution, etc.
35(1) The division or distribution of a benefit under
a matrimonial property order does not constitute an assignment, charge,
anticipation, giving as security or surrender of an interest of or in the
benefit or any rights for the purposes of the plan rules.
(2) Section 14 applies with respect to both pension
partners’ shares.
AR 383/2003 s4
Fees
36 Subject to section 34(3), the
Minister shall charge no fee for any services under this Part.
AR 383/2003 s4
Filing of documents
with Minister
37 For the purposes of this Part, a
matrimonial property order is filed only if it or a certified copy of it is
served on the Minister by
(a) leaving
it at an office of the Alberta Pensions Administration Corporation and receiving
a receipt for its delivery signed by any of that corporation’s employees, or
(b) by sending it by registered or certified
mail to an office of that corporation.
AR 383/2003 s4
Schedules
Schedule 1
Local Authorities Pension Plan - Specific Provisions
Part
1
General Provisions
Interpretation
1 In this Schedule,
(a) “employee
nominee” means a member of the Board who was nominated under section 3(b);
(b) “employer
nominee” means a member of the Board who was nominated under section 3(a).
Application
2 This Schedule relates to the
Local Authorities Pension Plan (referred to as “the Plan”).
Delegation of
administration powers and duties
2.05 Subject to the Act, without
affecting the Minister’s responsibilities under the Act, the Regulations or the
plan rules, the Minister may in writing delegate to any corporations that are
wholly owned by the Crown those specific powers and duties in relation to the
administration of the Plan that are given by any such legislation to the
Minister and that are specified in the delegation.
Application of plan
rules from prior date
2.1 A provision of the plan rules
that deals with
(a) participation,
including who are or are not employees,
(a.1) repealed
AR 113/2001 s3,
(b) salaries,
(c) reciprocal
agreements, and
(d) any
provision required by the tax rules
may be made to apply
with effect from a date specified in those plan rules that is prior to that on
which they are filed under the Regulations
Act.
Composition of Board
3 The Board is to consist of
(a) six
persons nominated by employers or organizations representing employers or a
combination of both,
(b) six
persons nominated by employees or organizations representing employees or a
combination of both,
(c) one
person nominated by former employees or an organization representing them, and
(d) one
person nominated by the Minister of Finance, acting for the Crown,
and appointed by the
Lieutenant Governor in Council.
3.1 Repealed AR 100/2005 s4.
Current service
contribution rates
4 In setting the contribution
rates for current service under section 5(2) of the Act Schedule for the Plan,
the Board shall set them so that
(a) the
current service cost is shared by employers and employees, and
(b) the
employers’ contribution rate exceeds the rate set for employees by 1% of
pensionable salary.
Employer’s annual or triennial report
4.1(1) An employer shall
(a) annually
provide to the Minister, before the date specified by the Minister, an
independent auditor’s opinion on matters established by the Minister with
respect to the employer’s compliance with his obligations under the Plan during
the relevant period, or
(b) at
least once every 3 years or more frequently if so required by the Minister and
before the end of the triennium or the date specified by the Minister, as the
case may be, provide to the Minister a report that has been prepared by an
independent accountant or another person acceptable to the Minister, with
respect to the employer’s compliance with his obligations under the Plan during
the relevant period and on such matters as the Minister has specified by
written notice to employers generally.
(2) Where
the information required under subsection (1)(a) or a report complying with
subsection (1)(b) is not received within the time specified by the Minister or
before the end of the triennium or the date specified by the Minister, as the
case may be, the Minister may order that an audit be conducted at the
employer’s expense or a report that does so comply with subsection (1)(b), as
the case may be, be made at the employer’s expense.
(3) In
this section, “accountant” means a person who is permitted under the laws of
Alberta to engage, on a fee for service basis and not under anyone’s
supervision, in public accounting practice, within the meaning of the Regulated
Accounting Profession Act, in respect of work that is intended to be relied
on by a third party.
6 Repealed AR 146/98 s3.
7 Repealed AR 146/98 s3.
8 Repealed AR 146/98 s3.
Part 2
Employer Withdrawals
Application
9 This Part establishes, in
addition to section 14 of the Act Schedule, the bases for the withdrawal of
employers from the Plan under that section, the method by which such
withdrawals are to be made and other terms and conditions for such withdrawals.
General Definitions
10 In this Part,
(a) “actuarial
valuation methods and assumptions” means the actuarial cost methods and
assumptions used by the Plan’s actuary in the actuarial valuation report for
funding purposes, but with assets being valued at market value, that is coincident
with or that most recently precedes the time of withdrawal;
(b) repealed
AR 113/2001 s5;
(c) “market
value” means the amount that the Minister of Finance, using generally accepted
accounting principles, including the accounting recommendations of the Canadian
Institute of Chartered Accountants set out in the Handbook published by that
Institute, as amended from time to time, determines to represent the value of
the assets or investments that would be agreed on in an arm’s length
transaction between knowledgeable and willing parties who are under no
compulsion to act;
(d) “other
plan” has the meaning assigned to “the other plan” in section 14(1) of the Act
Schedule;
(e) “Plan’s
assets” means the assets of the Plan, as determined and reflected in the Plan’s
most recent audited financial statements coincident with or preceding the time
of withdrawal and updated, if necessary, to the time of withdrawal;
(f) “Plan’s
liabilities” means the Plan’s liabilities in respect of all service recognized
as pensionable service and all benefits in place;
(g), (h) repealed AR 113/2001 s5;
(i) “time
of withdrawal” means the effective time of a withdrawal specified in the notice
given under section 14(1) or, if applicable, agreed under section 13(1);
(j) “withdrawal”
means the withdrawal of an employer from the Plan under section 14 of the Act
Schedule and includes the consequential transfer of a portion of the
liabilities and assets of the Plan under that section;
(k) “withdrawing
employer” means an employer who has given notice under section 14(1), and
includes any successor to that employer;
(l) “withdrawing
participant” means a withdrawing person described in section 12(1)(a);
(m) “withdrawing
person” means a person falling within section 12(1)(a), (c.1) or (d).
Required
characteristics of other plan
11(1) The other plan must, in addition to
meeting the requirements of section 14(1) of the Act Schedule,
(a) provide
for the benefits and entitlements provided for by Part 5 of the plan rules to
withdrawing participants or for benefits and entitlements that are not less
favourable for those persons in respect of
(i) pensionable service accumulated to the time of withdrawal, and
(ii) pensionable salaries earned during participation in the Plan and
in the other plan,
(b) provide
in effect that all service of or with respect to withdrawing persons that
counts as pensionable service for the purposes of determining eligibility for
benefits under the Plan is to count as pensionable service for those purposes
under the other plan, and
(e) provide
to persons referred to in section 12(1)(c.1) the protection afforded by section
13 of this Regulation (preceding this Schedule).
(2) The
other plan must also provide in effect that
(a) the
legal owners of the pension fund of the other plan are to hold all the assets
transferred from the Plan to the other plan and all investment income and
capital appreciation derived from those assets in trust, and to use them, for
the sole purposes of providing benefits and entitlements under the other plan
to withdrawing persons and to meet the other plan’s administration costs that
relate to those benefits and entitlements and any payments payable from the
pension fund of the other plan under any indemnity provided for in the Act
Schedule or this Part, until all of those benefits, entitlements and costs have
been discharged or satisfied in their entirety, and
(b) subject
to clause (a), those assets, investment income and capital appreciation belong
beneficially to the withdrawing persons.
(3) To
avoid any doubt, benefits and entitlements are not less favourable, for the
purposes of subsection (1)(a), by reason only of their being provided by means
of defined contribution provisions within the meaning of the Employment
Pension Plans Act if
(a) the
arrangements under those defined contribution provisions are agreed to in
writing by each withdrawing participant who elects to participate in the other
plan under those defined contribution arrangements, and
(b) the
benefits and entitlements provided to each such withdrawing participant are of
equivalent value to those benefits and entitlements to which the participant
would be entitled if he did not agree to those arrangements.
Employees, etc.
withdrawn
12(1) Subject to this section, on a withdrawal,
the withdrawing employer withdraws from the Plan only in relation to
(a) persons
who were participants and who were employees of that employer immediately
before the time of withdrawal and who do not terminate with effect as at, or
die at, the time of withdrawal,
(c.1) spouses
or former spouses of persons referred to in clause (a) who, immediately before
the time of withdrawal, have entitlements to benefits arising under matrimonial
property orders filed with the Minister with respect to those persons, and
(d) persons
prospectively or potentially entitled to benefits under the Plan accrued to the
time of withdrawal through persons referred to in clause (a) or (c.1).
(2) A person who
(a) falls
within subsection (1)(a), and
(b) was,
immediately before the time of withdrawal, also accruing pensionable service
with another employer who is not a withdrawing employer,
remains a participant
of the Plan as well as becoming a member of the other plan.
(4) A person referred to in subsection
(2)
(a) withdraws
from the Plan in relation to service performed or treated by the Board as
performed before the time of withdrawal with the withdrawing employer, and
(b) remains
in the Plan in relation to service performed or treated by the Board as
performed before the time of withdrawal with the employer remaining in the
Plan.
(5) Where there are 2 or more
withdrawing employers involved withdrawing to 2 or more other plans, a person
referred to in subsection (1)(a) becomes a member of both or all of the other
plans to the respective extent decided by the Board.
(6) The
Board shall make any decisions required by subsection (4) or (5) on the basis
which, in its opinion, most closely reflects the overall intent of this Part.
Timing
13(1) The time of withdrawal must occur as
at the end of a calendar year unless the Board and the withdrawing employer
agree in writing that it is to occur as at the end of another day specified in
the agreement.
(2) Subject to section 12, withdrawing
participants cease to be participants immediately before the time of withdrawal
and become members of the other plan immediately after that time, and other
withdrawing persons cease to have their current, prospective or potential
entitlements under this Plan and assume their respective entitlements, if any,
under the other plan at those respective times.
Information and
disclosure
14(1) An employer who wishes to withdraw
from the Plan must give written notice of the intention to withdraw, specifying
when the withdrawal is intended to become effective,
(a) to
the Minister and the Board at least 12 months in advance, and
(b) to
each potential withdrawing participant at least 9 months in advance.
(2) At least 9 months before the time of
withdrawal, the Board must report in writing to the withdrawing employer the
Board’s estimation, as at the time of withdrawal and with respect to that
employer, of
(a) the
apportionment of the Plan’s assets that will be determined on the basis set out
in section 17, and
(b) the
apportionment of the Plan’s liabilities.
(2.1) At least 6 months before the time of
withdrawal, the withdrawing employer must provide written notice to each
potential withdrawing participant regarding the withdrawal containing
(a) a
summary of the other plan, including the relevant benefits and entitlements
under that plan,
(b) a
description of the conditions that the other plan is required by section 11 to
meet and a certification by the withdrawing employer that the other plan meets
those requirements, and
(c) repealed
AR 113/2001 s6,
(d) the
name of the withdrawing employer’s representative who can provide more
information to potential withdrawing participants on request.
(3) At least 3 months before the time of
withdrawal, the withdrawing employer must submit to the Board and the Minister,
in writing,
(a) confirmation
by the employer of the decision to withdraw,
(b) certification
by the other plan’s actuary that the other plan meets the requirements of
section 11(1),
(c) a
copy of the indemnity for the Crown given by that employer under section 14(5)
of the Act Schedule,
(e) a
written opinion of the legal adviser of the withdrawing employer to the effect
that the other plan meets the requirements of section 11(2),
(f) certification
by the employer that the disclosure required by subsection (2.1) has been made,
(g) a
copy of the notice given under subsection (2.1), and
(h) certification
by the employer that the proposed withdrawal has the support of a majority of
the potential withdrawing participants.
(4) At
the earliest practicable time, the Board must
(a) report
in writing to the withdrawing employer, with respect to that employer, the
final apportionment of the Plan’s assets
under section 17 and of the Plan’s liabilities, and
(b) provide
to the withdrawing employer a copy of the actuarial valuation referred to in
section 16(1),
and, as soon as
practicable thereafter, the withdrawing employer must provide to the Minister
and the Board a certificate agreeing to that apportionment.
(5) If the withdrawing employer so requests,
the Board must forthwith provide to that employer the data and working papers
used for calculating the apportionments of assets and liabilities referred to
in subsections (2) and (4).
(6) For the purposes of subsections (2)
and (4), the Plan’s liabilities following the provisional and final
apportionments are to be taken as the amount “B” as defined in section
16(1)(b).
(7) At the earliest practicable time,
the withdrawing employer must submit to the Board and the Minister a copy of
the indemnity for the Crown given by the legal owners of the pension fund of
the other plan under section 14(5) of the Act Schedule.
Completion of
purchases of service
14.1(1) Where a withdrawing participant made
arrangements to acquire service as pensionable service before the time of
withdrawal, has not fully paid for the service being acquired and wishes to
transfer the service not yet paid for to the other plan, payment must be made
for that unacquired service before the time of withdrawal.
(2) No service that has not been paid
for may be transferred to the other plan.
(3) At least 6 months before the time of
withdrawal, the Minister must give written notice to each potential withdrawing
participant who has made arrangements to acquire service as pensionable service
and has not fully paid for the service being acquired, of the obligation to pay
outstanding amounts for that service prior to the time of withdrawal in order
to receive appropriate credit as a result of such payment.
Application fee and
withdrawal costs
15(1) The Minister of Finance may charge
the plan fund for all reasonable costs, including the cost referred to in
section 23 but excluding any plan costs, incurred by the Minister, the Board
and the Minister of Finance before the completion or withdrawal of the
withdrawal, with respect to the withdrawal or proposed withdrawal.
(2) The withdrawing employer
(a) on
applying for the withdrawal must pay the plan fund a fee on account of the
costs chargeable under subsection (1), in an amount equal to $50 times the
number of withdrawing participants anticipated, to a maximum of $5000, and
(b) is
further liable to the plan fund for any costs charged to the plan fund under
subsection (1) that exceed in amount the amount of that fee.
(3) Subject to subsection (6), the costs
for which the withdrawing employer is liable under subsection (2)(b) are to be
deducted from the assets apportioned to the withdrawing employer under section
17 in accordance with section 17(4) and (5).
(4) If
the withdrawal is withdrawn, the withdrawing employer must reimburse the plan
fund for any costs incurred with respect to the examination of the proposed
withdrawal for which the employer is liable under subsection (2)(b), in which
case the withdrawing employer must pay those costs within 30 days of being
charged for them by the Minister of Finance.
(5) Repealed AR 113/2001 s7.
(6) As an alternative to having assets
reduced as referred to in subsection (3), the withdrawing employer may elect in
writing to the Minister of Finance, at least 3 months before the time of
withdrawal, to reimburse the plan fund directly for the costs for which the
employer is liable under subsection (2)(b), in which case the employer must pay
those costs within 30 days of being charged for them by the Minister of
Finance.
(7) The Minister of Finance shall repay
from the plan fund an amount equal to the amount, if any, by which the
application fee paid under subsection (2)(a) exceeds the total amount
ultimately chargeable under subsection (1).
Definitions for calculation
purposes
16(1) The following letters designate the
amounts used in the calculations under section 17 as determined in a written
actuarial valuation that is prepared for the purposes of the withdrawal as at
the time of withdrawal on the basis of the actuarial valuation methods and
assumptions and that is approved by the Board:
(a) “A”
means the Plan’s liabilities;
(b) “B”
means the Plan’s liabilities, so far as they relate to the withdrawing persons;
(c), (d) repealed
AR 113/2001 s8;
(e) “E”
means the market value of the Plan’s assets;
(f) repealed
AR 113/2001 s8;
(g) “G”
means the decimalized fraction (rounded to 5 decimal places) representing the
ratio, determined immediately before the time of withdrawal, of the aggregate
annualized pensionable salaries of the withdrawing participants to those of all
withdrawing participants and other participants who do not terminate with
effect as at, or die at, the time of withdrawal.
(2) For the purposes of subsection (1),
except so far as they relate to the withdrawing persons,
(a) repealed
AR 113/2001 s8,
(b) the
Plan’s liabilities include the amount, if any, by which liabilities in respect
of service that is in the course of being purchased over time and that, at the
time of withdrawal, has not yet been paid for exceed the present value of the
outstanding contributions in respect of that service.
(3) Repealed AR 113/2001 s8.
Formulas for
apportionment of assets
17(1) Subject to subsection (4), the
Plan’s assets that are to be apportioned to the withdrawing employer as at the
time of withdrawal are as follows:
(a) if A is less than or equal to E,
, or
(b) if
A exceeds E, B - [(A-E) x G].
(2), (3) Repealed AR 113/2001 s9.
(4) Unless
section 15(6) applies, the assets to be apportioned to the withdrawing employer
under subsection (1) are to be reduced by an amount equal to the costs referred
to in section 15(2)(b).
(5) Repealed AR 113/2001 s9.
17.1, 17.2 Repealed AR 113/2001 s10.
Order in Council
effectuating withdrawal
17.3 The Lieutenant Governor in
Council may, if satisfied that section 14 of the Act Schedule and this Part
have been met, order the withdrawal with effect as at the time of withdrawal.
Apportionment and
transfer
18(1) Before the time of withdrawal, the
Board shall estimate the assets to be apportioned to the withdrawing employer
as at the time of withdrawal on the basis set out in section 17.
(2) At
and as at the time of withdrawal, the Minister of Finance shall make an initial
transfer to the pension fund of the other plan of an amount equal to 80% of the
estimated apportionment.
(3) At the earliest practicable time
after the finalization of data, the Board shall determine the final
apportionment of assets to the withdrawing employer, as at the time of
withdrawal, on the basis set out in section 17 and, once the withdrawing
employer has provided the certificate under section 14(4), the transfer under
subsection (4) or the return of excess under subsection (5) shall be made
forthwith.
(4) If the amount determined under
subsection (3) exceeds the amount transferred under subsection (2), the
Minister of Finance shall transfer the remainder of the apportionment, with
interest from the time of withdrawal to the date of payment, from the plan fund
to the pension fund of the other plan.
(5) If the amount determined under
subsection (3) is less than the amount transferred under subsection (2), the
legal owners of the other plan’s pension fund shall return the excess, with
interest from the time of withdrawal to the date of payment, from the pension
fund of the other plan to the plan fund in the form of cash or, with the
consent of the Minister of Finance, specific assets equal in market value to
the amount required, or a combination of both.
(6) Interest under subsection (4) or (5)
is payable on the basis of the market rate of return earned by the plan fund,
net of those investment costs that are specified by the Minister of Finance for
that purpose, from the time of withdrawal until the latest date up to which
that rate is available, and on the basis of the rate of return earned by the
Consolidated Cash Investment Trust Fund for the remainder of the period to the
date of payment.
(7) The transfers from the plan fund
under subsections (2) and (4) are to consist of such specific assets and to be
in such of the following forms as is decided by the Minister of Finance after
consulting with the Board, namely
(a) in
cash,
(b) on
the basis of a prorated interest in the investments of the plan fund valued at
market value, or
(c) as
a combination of the forms set out in clauses (a) and (b),
and where the transfer
would require a significant liquidation of the assets in a pooled fund, the
transfer may include securities held by the pooled fund.
(8) Where any assets transferred under
subsection (2) or (4) are interests in a pooled fund, the other plan must
redeem those interests in accordance with the guidelines established for the
pooled fund within one year of the date of the transaction under subsection (4)
or (5) or within such longer period as is agreed in writing between the
withdrawing employer and the Minister of Finance.
(9) The guidelines referred to in
subsection (8) are exempt from the Regulations
Act.
(10) The assets and liabilities
attributable to the withdrawing employer as at the time of withdrawal become
final when, and may not change after, the transaction described in subsection
(4) or (5) is completed.
Application to
withdrawing persons accruing multiple service
19 Where
(a) subsections
(2) and (4) or subsection (5) of section 12 apply, or
(b) any
other similar circumstances that give rise to doubt as to a person’s pension
coverage or potential coverage under this Part arise,
any apportionment or
other separation or division that needs to be done under this Part as between
the Plan and the other plan or plans or between the other plans must be done on
a basis that is approved by the Board and that most closely reflects the
overall intent of this Part.
Indemnification
20(1) The withdrawing employer and the
legal owners of the pension fund of the other plan indemnify
(a) the
Board and the members of the Board for any damages or legal and other expenses
incurred in defending any claim against the Board or any Board member that
arises directly or indirectly from the withdrawal, and
(b) the
plan fund and the Plan’s administrator and trustee for any claims made by any
person that arise directly or indirectly from the withdrawal.
(2) Subject
to subsection (1), an indemnification by subsection (1)(a) covers anything done
by the Board or Board member, as the case may be, in good faith in the exercise
of powers, duties and functions under section 14 of the Act Schedule or this
Part.
(3) To
the extent permissible by law, any liability under an indemnity under this
section by the other pension fund’s legal owners is to be met from that pension
fund itself.
(4) To
the extent permissible by law, any liability in respect of the withdrawal
effected by Order in Council numbered O.C. 533/2000 under an indemnity under
this section by the other pension fund’s legal owners is to be met from that
pension fund itself.
Agreement to alter
time limits
21 Notwithstanding anything in
this Part, where a provision of this Part requires anything to be done within a
certain period or by a specified time prior to the time of withdrawal, the
Minister, the Board and the withdrawing employer may enter into a written
agreement altering the time before which that thing must be done.
Transfer of records
and documents
23 As soon as is practicable, the
Minister shall transfer to the administrator of the other plan, at the
withdrawing employer’s cost, those documents and records that the Minister
holds as the administrator of the Plan, that pertain to withdrawing persons and
that are needed for the administration of the other plan.
References in
matrimonial property orders
24 Where there is a reference to
the Plan in a matrimonial property order in respect of a withdrawing person,
that reference is to be treated, with effect from the time of withdrawal, as a
reference to the other plan.
Part 3
Withdrawal of Telus Edmonton ‑
Continuing Provisions
Application
25 Without limiting the effect of
section 35 of the Interpretation Act, TELUS Edmonton’s having withdrawn
from participation in and ceased to be an employer for the purposes of the Plan
at the end of 1997 and a portion of the Plan’s liabilities and assets having
been transferred to the other plan pursuant to section 14.1 of the Act
Schedule, this Part contains provisions respecting its withdrawal that continue
in effect.
General definitions
26 In this Part,
(a) “other
plan” means a registered pension plan, other than the Plan, to which the Pension
Benefits Standards Act, 1985 (Canada) applies;
(b) “TELUS
Edmonton” means any or all of the corporations individually and collectively
referred to as “TELUS Edmonton” in section 116.1 of the plan rules (expired),
and includes its or their successors;
(c) “this
Part” includes the provisions of this Part as it was before its repeal and
replacement in 2001;
(d) “withdrawal”
means the withdrawal of TELUS Edmonton from the Plan under section 14.1 of the
Act Schedule and this Part and includes the consequential transfer of a portion
of the liabilities and assets of the Plan under those provisions.
Indemnification
27(1) TELUS Edmonton and the legal owner
of the pension fund of the other plan indemnify
(a) the
Board and the members of the Board for any damages or legal and other expenses
incurred in defending any claim against the Board or any Board member that
arises directly or indirectly from the withdrawal, and
(b) the
plan fund and the Plan’s administrator and trustee for any claims made by any
person that arises directly or indirectly from the withdrawal.
(2) Subject
to subsection (1), an indemnification by subsection (1)(a) covers anything done
by the Board or Board member, as the case may be, in good faith in the exercise
of powers, duties and functions under section 14.1 of the Act Schedule or this
Part.
References in
matrimonial property orders
28 Where there is a reference to
the Plan in a matrimonial property order in respect of a withdrawing person,
that reference is to be treated as a reference to the other plan.
29 to 46 Repealed AR 146/2001 s2.
Part 4 Repealed
AR 365/93 s50.
AR 365/93
Sched.1;209/94;197/97;198/97;265/97;146/98;182/98;116/99;171/99;
253/99;155/2000;237/2000; 27/2001;113/2001;146/2001;234/2001;235/2001;
270/2002;294/2002;357/2003;247/2004;100/2005;228/2005;262/2006
Schedule 2
Public Service Pension Plan - Specific Provisions
Part
1
General Provisions
Interpretation
1 In this Schedule,
(a) “employee
nominee” means a member of the Board who was nominated under section 3(b);
(b) “employer
nominee” means a member of the Board who was nominated under section 3(a).
Application
2 This Schedule relates to the
Public Service Pension Plan (referred to as “the Plan”).
Application of plan
rules from prior date
2.1 A provision of the plan rules
that deals with
(a) participation,
including who are or are not employees,
(b) salaries,
(c) reciprocal
agreements, and
(d) any
provision required by the tax rules
may be made to apply
with effect from a date specified in those plan rules that is prior to that on
which they are filed under the Regulations
Act.
Composition of Board
3 The Board is to consist of
(a) three
persons nominated by the Government, and
(b) three
persons nominated by the Alberta Union of Provincial Employees,
and appointed by the
Lieutenant Governor in Council.
3.1 Repealed AR 100/2005 s4.
Current service
contribution rates
4(1) For the purposes of the setting of
contribution rates for current service under section 5(2) of the Act Schedule,
the minimum solvency requirements referred to in section 1(1)(b) of the Act
Schedule apply only to benefits in respect of service after 1991.
(2) For
the purposes of subsection (1), the Minister shall ensure that a separate
accounting is made and maintained of assets in respect of service after 1991.
Employer’s periodic report
4.1(1) An employer shall, at least once
every 3 years or more frequently if so required by the Minister and before the
end of the triennium or the date specified by the Minister as the case may be,
provide to the Minister a report that has been prepared by an independent
accountant or another person acceptable to the Minister, with respect to the
employer’s compliance with his obligations under the Plan during the relevant
period and on such matters as the Minister has specified by written notice to
employers generally.
(2) Where
a report complying with subsection (1) is not received before the end of the
triennium or the date specified by the Minister as the case may be, the
Minister may order that a report that does so comply be conducted at the
employer’s expense.
(3) In
subsection (1), “accountant” means a person who is permitted under the laws of
Alberta to engage, on a fee for service basis and not under anyone’s
supervision, in public accounting practice, within the meaning of the Regulated
Accounting Profession Act, in respect of work that is intended to be relied
on by a third party.
4.2 Repealed AR 100/2005 s5.
7 Repealed AR 146/98 s4.
Part 2.05
Transfer Agreement with Exited
MEPP Employers
Interpretation
24.05(1) In this Part,
(a) “active
member” means, in relation to the other plan, the equivalent of a participant
under the Plan;
(b) “agreement”
means
(i) a transfer agreement, or
(ii) in relation to a particular transferred person, the transfer
agreement applicable to that person,
provided for in section
24.055(1), including any amendments made to it;
(c) “effective
date of the agreement” means the time the agreement is entered into or such
later time as the agreement provides for it to become effective;
(d) “employer”
means an exited MEPP employer;
(e) “other
plan” means the registered pension plan or plans established by an exited MEPP
employer for a group comprising or including its workers employed by it who
were employees within the meaning of MEPP and were affected by the exit
referred to in clause (d), and includes any successor plan;
(f) “promoted
persons” means, in relation to an exited MEPP employer,
(i) persons who ceased to be employees and became active members of
the other plan at the time of that employer’s exit from MEPP, and
(ii) other persons engaged to work for that employer who, as a result
of being appointed by that employer to employer management positions within the
meaning of section 3(5.4) of the plan rules, ceased to be employees after that
time of exit and immediately became active members of the other plan;
(g) “promotion
date” means the time at which a transferred person became an active member of
the other plan;
(h) “transferred
person” means any of the promoted persons in respect of whom a transfer is made
or to be made under the terms of the agreement.
(2) For
the purposes of this Part, benefit improvements referred to in section 30.2(2)
of the plan rules are to be considered pension entitlements.
Transfer agreement
24.055(1) Subject to this section, the Minister may, after consulting
with the Board, enter into a transfer agreement, not being a reciprocal
agreement, with an exited MEPP employer to transfer the pension entitlements
from the Plan to the other plan in respect of some or all of its promoted
persons.
(2) An agreement must provide in effect
that the transfer of pension entitlements is mandatory for all promoted persons
who ceased to be employees on or after the effective date of the agreement.
(3) Promoted
persons who ceased to be employees prior to the effective date of the agreement
are eligible for the transfer of the pension entitlements if, but only if, they
are so eligible under the criteria, if any, established by the agreement.
(4) An agreement must provide for the
matters required by this Part to be included in it.
Amount and timing of
asset transfer
24.06(1) With effect from the later of a
transferred person’s promotion date and the effective date of the agreement,
the Plan becomes liable to transfer to the other plan the value of that
person’s pension entitlements, with the amount and timing of the transfer as
set out in this section.
(2) The amount to be transferred under
an agreement in respect of a transferred person is to be equal to the going
concern liabilities, within the meaning of the Employment Pension Plans
Regulation (AR 35/2000), in respect of that person’s pension
entitlements, as determined by the Plan’s actuary as at the asset transfer
calculation date.
(3) The going concern liabilities
referred to in subsection (2) are to be calculated using the actuarial cost
methods and assumptions in the actuarial valuation report that was most
recently approved by the Board for funding purposes as at the asset transfer
calculation date and so as to include a salary projection from the day before
the promotion date as if the transferred person, as at the promotion date, had
not ceased to be an employee.
(4) The asset transfer calculation date
in respect of a transferred person is to be the time set out in the agreement.
(5) If the actual transfer to the other
plan occurs after the asset transfer calculation date, interest is payable on
the amount determined under subsections (2) to (4) at the market rate of return
of the plan fund, net of investment costs, as determined by the Minister, from
the asset transfer calculation date to the latest date to which that rate is
available, and, for the remainder of the period to the date of payment, using
the 91-day Canada Treasury Bill rate, as determined by the Minister.
Indemnities
24.07(1) Before the effective date of the agreement, the exited MEPP
employer and the legal owners of the pension fund of the other plan must
indemnify the Crown in a written form acceptable to the Minister with respect
to any claim that may be made by any person that arises directly or indirectly
from the transfer.
(2) The
legal owners of the pension fund of the other plan indemnify
(a) the
Board and the past, present and future members of the Board for any damages and
legal and other expenses incurred in defending any claim that may be made by
any person against any of them that arises directly or indirectly from the
transfer, and
(b) the
Plan for any claims that arise directly or indirectly from the transfer.
(3) To the extent permissible by law,
any liability under an indemnity under this section by the other pension fund’s
legal owners is to be met from that pension fund itself.
Extinguishing of
rights
24.075 With effect from the later of
a transferred person’s promotion date and the effective date of the agreement,
(a) all
entitlements in respect of that person in relation to the Plan are
extinguished, and
(b) the
Plan is to have no liability in respect of that person except the liability
referred to in section 24.06 and, with that exception, the pension fund of the
other plan is to assume all such liability.
Required provisions
in other plan
24.08(1) With respect to transferred persons, the other plan must
(a) provide
for the benefits and entitlements provided for by the plan rules and Part 3 of
the Regulations in effect as at the later of the effective date of the
agreement and their promotion dates, or for benefits and entitlements that are
not less favourable in respect of
(i) their pensionable service accumulated to the promotion date, and
(ii) their pensionable salaries earned during participation in the
Plan and in the other plan,
(b) provide
in effect that all their service that counts as combined pensionable service
for the purposes of determining eligibility for benefits under the Plan is to
count for the same purposes under the other plan, and
(c) provide
for the protection of the rights of their pension partners arising from
matrimonial property orders or agreements to the extent that the latter remain
entitled to shares in the transferred pension entitlements.
(2) To avoid any doubt, benefits and
entitlements are not less favourable, for the purposes of subsection (1)(a), by
reason only of their being provided by means of defined contribution provisions
within the meaning of the Employment Pension Plans Act if
(a) the
arrangements under those defined contribution provisions are agreed to in
writing by each transferred person who elects to participate in the other plan
under those defined contribution arrangements, and
(b) the
benefits and entitlements provided to each transferred person are of equivalent
value to those benefits and entitlements to which the person would be entitled
if he did not agree to those arrangements.
(3) Before the effective date of the
agreement, the exited MEPP employer in question must submit to the Board and
the Minister written certification by the other plan’s actuary that the other
plan meets all the requirements of this section.
Transfer of records
24.09 The Minister shall provide the
administrator of the other plan records needed by the other plan to effectuate
fully the transfers.
AR 365/93
Sched.2;146/98;116/99;147/99; 223/99;254/99;155/2000;
234/2003;100/2005;11/2006;262/2006
Schedule 3
Universities Academic Pension Plan - Specific Provisions
Part
1
General Provisions
Interpretation
1 In this Schedule,
(a) “employee
nominee” means a member of the Board who was nominated under section 3(1)(b) or
by the academic staff associations referred to in, and under, section 3(1)(c);
(b) “employer
nominee” means a member of the Board who was nominated under section 3(1)(a) or
by the Boards of Governors referred to in, and under, section 3(1)(c).
Application
2 The Schedule relates to the
Universities Academic Pension Plan (referred to as “the Plan”).
Application of plan
rules from prior date
2.1 A provision of the plan rules
that deals with
(a) participation,
including who are or are not employees,
(b) salaries,
(c) reciprocal
agreements, and
(d) any
provision required by the tax rules
may be made to apply
with effect from a date specified in those plan rules that is prior to that on
which they are filed under the Regulations
Act.
Composition of Board
3(1) The Board is to consist of
(a) one
person nominated by each of the Boards of Governors of the University of
Alberta, the University of Calgary and the University of Lethbridge,
(b) one
person nominated by each of the academic staff associations of the University
of Alberta, the University of Calgary and the University of Lethbridge,
(c) two
persons nominated by the academic staff associations and the Boards of
Governors of the Banff Centre and Athabasca University on a basis determined by
the Minister,
(d) one
person nominated by the Provincial Treasurer, on the Crown’s behalf,
and appointed by the
Lieutenant Governor in Council.
(2) An
appointment under subsection (1)(c) must result in an equality of nominees on
the Board as between academic staff associations on the one hand and Boards of
Governors on the other, but in no case is this subsection to be construed as
requiring any revocation of an appointment in the event of any vacancy
occurring on the Board.
Remuneration
3.1(1) Remuneration is to be paid to or on
behalf of all members and the chair of the Board.
(2) The
rates of the remuneration payable are to be the same as those payable under
Part A of Schedule 1 to the Committee Remuneration Order (O.C. 769/93).
(3) Unless
the Provincial Treasurer otherwise directs the Board in writing, where
remuneration is payable under this section to or on behalf of an employee of
the Crown, it belongs to the Crown and is to be paid to the Provincial
Treasurer.
Current service
contribution rates
4(1) For the purposes of the setting of
contribution rates for current service under section 5(2) of the Act Schedule,
the minimum solvency requirements referred to in section 1(1)(b) of the Act
Schedule apply only to benefits in respect of service after 1991.
(2) For
the purposes of subsection (1), the Minister shall ensure that a separate
accounting is made and maintained of assets in respect of service after 1991.
(3) In
setting the contribution rates for current service under section 5(2) of the
Act Schedule for the Plan, the Board shall set them
(a) so
that the current service cost is shared by employers and employees in the
proportions specified by them, and
(b) based
on a specified percentage of pensionable salary.
Employer’s periodic report
4.1(1) An employer shall, at least once
every 3 years or more frequently if so required by the Minister and before the
end of the triennium or the date specified by the Minister as the case may be,
provide to the Minister a report that has been prepared by an independent
accountant or another person acceptable to the Minister, with respect to the
employer’s compliance with his obligations under the Plan during the relevant
period and on such matters as the Minister has specified by written notice to
employers generally.
(2) Where
a report complying with subsection (1) is not received before the end of the
triennium or the date specified by the Minister as the case may be, the
Minister may order that a report that does so comply be conducted at the
employer’s expense.
(3) In
subsection (1), “accountant” means a person who is permitted under the laws of
Alberta to engage, on a fee for service basis and not under anyone’s
supervision, in exclusive accounting practice, within the meaning of the Chartered
Accountants Act, in respect of work that is intended to be relied on by a
third party.
Indemnification of
Investment Committee members
4.2(1) In addition to indemnifications
under section 8.1 in the portion of this Regulation preceding Schedule 1, the
Plan indemnifies an individual
(a) who,
in the opinion of the Board, possesses specialized skills, and
(b) who
is appointed a member of the Investment Committee of the Board by the Board,
for any damages or
legal and other expenses incurred in defending an administrative or civil claim
against that individual.
(2) Subject
to subsection (1), an indemnification under that subsection covers
(a) anything
done by the individual in good faith, or
(b) any
omission on his part to act provided that he has acted in good faith generally,
in the performance of
his duties as a member of the Investment Committee.
(3) The
costs of an indemnification under this section are to be paid from the plan
fund.
Rights and
obligations under earlier plans
5(1) No person is entitled to any benefit
or other right provided for by or under the University of Alberta Plan, the
Retirement System or the Lethbridge Plan except so far as the benefit or right
is provided for by or under the Plan.
(2) Subsection
(1) does not affect the amount of any benefit payment of which commenced before
the commencement of this section.
(3) No
rights or benefits provided for either expressly or by implication under Parts
II and V of the University of Alberta Plan are affected or terminated by the
Plan.
(4) Section
113.1(3) of the plan rules applies notwithstanding subsection (3).
6 Repealed AR 146/98 s5.
8 Repealed AR 146/98 s5.
Part 2
Employer Withdrawals
Application
9 This Part establishes, in
addition to section 14 of the Act Schedule, the general bases for the
apportionment of the Plan’s liabilities and assets on the withdrawal of
employers from the Plan and for the transfer of those apportioned liabilities
and assets from the Plan under that section, and related matters.
General definitions
10 In this Part,
(a) “actuarial
valuation methods and assumptions” means the actuarial cost methods and
assumptions used by the Plan’s actuary in the actuarial valuation report for
funding purposes, but with assets being valued at market value, that is
coincident with or that most recently precedes the time of withdrawal;
(b) “additional
contributions” means additional contributions paid or payable to the other plan
under the order made under section 14(8)(b) of the Act Schedule;
(c) “market
value” means the amount that the Provincial Treasurer, using generally accepted
accounting principles, including the accounting recommendations of the Canadian
Institute of Chartered Accountants set out in the Handbook published by that
Institute, as amended from time to time, determines to represent the value of
the assets or investments that would be agreed on in an arm’s length
transaction between knowledgeable and willing parties who are under no
compulsion to act;
(d) “other
plan” means one of the other pension plans within the meaning of section
14(1)(a) of the Act Schedule;
(e) “post‑1991
assets” means the Plan’s assets in respect of the post-1991 liability;
(f) “post‑1991
liability” means the Plan’s liabilities in respect of all service recognized as
pensionable service and all benefits in place, less the pre-1992 liability;
(g) “pre‑1992
assets” means the Plan’s assets in respect of the pre‑1992 liability;
(h) “pre‑1992
liability” means the Plan’s liabilities in respect of all service that was
recognized as pensionable service, and all the benefits that were in place, as
at December 31, 1991;
(i) “time
of withdrawal” means the effective time of a withdrawal specified in the notice
referred to in section 14(1) or, if applicable, agreed under section 13(1);
(j) “withdrawal”
has the meaning assigned to it in section 14(1)(b) of the Act Schedule;
(k) “withdrawing
employer” means an employer who has given notice under section 14(6)(b) of the
Act Schedule;
(l) “withdrawing
participant” means a person who is a participant and an employee of the
withdrawing employer immediately before the time of withdrawal and who does not
terminate or become a participant of the related plan with effect as at, or die
at, the time of withdrawal;
(m) “withdrawing
person” means a person falling within section 12(1)(a), (b), (c) or (d).
Required
characteristics of other plan
11(1) The other plan must, in addition to
meeting the requirements of section 14(1)(a) of the Act Schedule,
(a) provide
for the benefits and entitlements provided for by Part 5 of the plan rules to
withdrawing participants or for benefits and entitlements that are not less
favourable for those persons in respect of
(i) service performed before the time of withdrawal and
(A) that was acquired as pensionable service
before then, or
(B) which, immediately before the time of
withdrawal, was in the course of being purchased over time under the plan
rules, on payment for the service,
and
(ii) pensionable salaries earned during participation in the Plan and
in the other plan,
(b) provide
in effect that all service of or with respect to withdrawing persons that
counts as combined pensionable service for the purposes of determining
eligibility for benefits under the Plan is to count for the same purposes in
effect under the other plan,
(c) in
the case of withdrawing persons who made arrangements to acquire service as
pensionable service before the time of withdrawal and have not fully paid for
the service being acquired, the arrangements made by them with the Plan are to
continue to have full effect with the other plan as if they had been originally
entered into with the other plan, under the same terms and conditions, and
(d) put
into effect section 14(7)(c) and (d) of the Act Schedule.
(2) The
other plan must also provide in effect that
(a) the
other plan’s trustee is to hold all the assets transferred from the Plan to the
other plan, all additional contributions paid and all investment income and
capital appreciation derived from those assets and contributions in trust, and
to use them, for the sole purposes of providing benefits and entitlements under
the other plan and to meet the other plan’s administration costs and any
payments payable from the pension fund of the other plan under any indemnity
provided for in the Act Schedule or this Part, and
(b) subject
to clause (a), those assets, additional contributions, investment income and
capital appreciation belong beneficially to the persons entitled to benefits
under the other plan.
(3) To
avoid any doubt, benefits and entitlements are not less favourable, for the
purposes of subsection (1)(a), by reason only of their being provided by means
of defined contribution provisions within the meaning of the Employment
Pension Plans Act if
(a) the
arrangements under those defined contribution provisions are agreed to in
writing by each withdrawing participant who elects to participate in the other
plan under those defined contribution arrangements, and
(b) the
benefits and entitlements provided to each such withdrawing participant are of
equivalent value to those benefits and entitlements to which the participant
would be entitled if he did not agree to those arrangements.
Employees, etc.
withdrawn
12(1) Subject to this section, on a
withdrawal, the withdrawing employer withdraws from the Plan only in relation
to
(a) persons
who were employees of that employer immediately before the time of withdrawal,
(b) persons
who, immediately before the time of withdrawal, were former participants with
remaining entitlements to benefits under the Plan and who had been employees of
the withdrawing employer immediately before their most recent termination,
(c) persons
who, immediately before the time of withdrawal, were entitled to benefits which
had arisen on the death of, or from an assignment under a matrimonial property
order relating to, a person who had been an employee of the withdrawing
employer immediately before death or his most recent termination, as the case
may be, and
(d) persons
currently, prospectively or potentially entitled to benefits under the Plan
accrued to the time of withdrawal through persons referred to in clause (a),
(b) or (c).
(2) A person who
(a) falls
within subsection (1)(a), and
(b) was,
immediately before the time of withdrawal, also accruing pensionable service
with another employer who is not a withdrawing employer,
remains a participant
of the Plan as well as becoming a member of the other plan.
(3) A former employee
(a) who
falls within subsection (1)(b) or through whom a person falls within subsection
(1)(c) or (d), and
(b) who
was, immediately before the most recent termination or death, as the case may
be, referred to in that clause, also accruing pensionable service with another
employer who is not a withdrawing employer,
is to be treated as
having accrued pensionable service with the withdrawing employer and the
employer remaining in the Plan to the respective extents decided by the Board.
(4) A person referred to in subsection
(2)
(a) withdraws
from the Plan in relation to service performed or treated by the Board as
performed before the time of withdrawal with the withdrawing employer, and
(b) remains
in the Plan in relation to service performed or treated by the Board as
performed before the time of withdrawal with the employer remaining in the
Plan.
(5) Where there are 2 or more
withdrawing employers involved withdrawing to 2 or more other plans, a person
who was an employee of 2 or more of those employers immediately before the time
of withdrawal becomes a member of, and that person or a former employee, as
regards any such employer, referred to in subsection (3) is to be treated as
having accrued pensionable service that counts for the purposes of, both or all
of the other plans to the respective extents decided by the Board.
(6) The Board shall make any decisions
required by subsection (3), (4) or (5) on the basis which, in its opinion, most
closely reflects the overall intent of this Part.
Timing
13(1) The time of withdrawal must occur as
at the end of a calendar year unless the Board and the withdrawing employer
agree in writing that it is to occur as at the end of another day specified in
the agreement.
(2) Subject to section 12, withdrawing
participants cease to be participants immediately before the time of withdrawal
and become members of the other plan immediately after that time, and other
withdrawing persons cease to have their current, prospective or potential
entitlements under this Plan and assume their respective entitlements under the
other plan at those respective times.
Information and
disclosure
14(1) A withdrawing employer must, in the
notice required by section 14(6)(b) of the Act Schedule, specify when the
withdrawal is intended to become effective.
(2) At least 9 months before the time of
withdrawal, the Board must report in writing to all employers the Board’s
estimation, as at the time of withdrawal, of the apportionments between the
withdrawing employer and the other employers of
(a) the
pre‑1992 and post‑1991 assets that will be determined on the basis
set out in section 17, and
(b) the
pre‑1992 and post‑1991 liabilities.
(3) At
least 3 months before the time of withdrawal, the withdrawing employer must
submit to the Board and the Minister, in writing,
(a) confirmation
by the employer of the decision to withdraw,
(b) certification
by the other plan’s actuary that the other plan meets the requirements of
section 11,
(c) a
copy of the indemnity for the Crown given by that employer under section
14(6)(d) of the Act Schedule, and
(d) copies
of the written consent of the academic staff association, if any, required by
section 14(6)(a) of the Act Schedule.
(4) At
the earliest practicable time, the Board must
(a) report
in writing to the withdrawing employer and to the other employers the final
apportionment of the pre‑1992 and post‑1991 assets under section 17
and of the pre-1992 and post-1991 liabilities, and
(b) provide
to them copies of the actuarial valuation referred to in section 16(1),
and, as soon as
practicable thereafter, the withdrawing employer must provide to the Minister
and the Board a certificate agreeing to that apportionment.
(5) If
the withdrawing employer so requests, the Board must forthwith provide to that
employer the data and working papers used for calculating the apportionments of
assets and liabilities referred to in subsections (2) and (4).
(6) For the purposes of subsections (2)
and (4), the pre-1992 and the post-1991 liabilities following the provisional
and final apportionments are to be taken as the amounts “B” and “D”, as defined
in section 16(1)(b) and (d), respectively.
(7) At
the earliest practicable time, but before the final transfer of assets,
(a) the
withdrawing employer must submit to the Board and the Minister a copy of the
indemnity for the Crown given by the legal owner of the pension fund of the
other plan, and the acceptances given by the employer and that fund owner,
under section 14(6)(d) and (e) respectively of the Act Schedule, and
(b) the
Board must send the Minister a copy of its acceptance given under that section
14(6)(e).
Withdrawal costs
15(1) The Provincial Treasurer may charge
the plan fund for all reasonable costs, excluding any plan costs, incurred by
the Minister, the Board and the Provincial Treasurer before the completion or
withdrawal of the withdrawal, with respect to the withdrawal or proposed
withdrawal.
(2) The withdrawing employer is liable
to the plan fund for any costs charged to the plan fund under subsection (1).
(3) The costs for which the withdrawing
employer is liable under subsection (2) are to be deducted from the assets
apportioned to the withdrawing employer under section 17 in accordance with
section 17(4) and (5).
(4) If the withdrawal is withdrawn,
instead of the employer having sole liability under subsection (2), the
withdrawing employer and the corresponding academic staff association, if any,
become liable, on a joint and several basis, to reimburse the plan fund for any
costs incurred with respect to the examination of the proposed withdrawal for
which the employer is made liable by subsection (2), in which case the
withdrawing employer and that association must pay those costs on and within 30
days of being charged for them or for a portion of them by the Provincial
Treasurer.
(5) Transactions under this section
involving the plan fund must be applied to its post‑1991 assets.
Definitions for
calculation purposes
16(1) The following letters designate the amounts
used in the calculations under section 17 as determined in a written actuarial
valuation that is prepared for the purposes of the withdrawal as at the time of
withdrawal on the basis of the actuarial valuation methods and assumptions and
that is approved by the Board:
(a) “A”
means the pre‑1992 liability;
(b) “B”
means the pre‑1992 liability, so far as it relates to the withdrawing
persons;
(c) “C”
means the post‑1991 liability;
(d) “D”
means the post‑1991 liability, so far as it relates to the withdrawing
persons;
(e) “E”
means the market value of the pre‑1992 assets;
(f) “F”
means the market value of the post‑1991 assets;
(g) “G”
means the decimalized fraction (rounded to 5 decimal places) representing the
ratio, determined immediately before the time of withdrawal, of the aggregate
annualized salaries of the withdrawing participants to those of all withdrawing
participants and other participants who do not terminate or become participants
of and under the related plan with effect as at, or die at, the time of
withdrawal.
(2) For the purposes of subsection (1),
(a) a
pre‑1992 liability includes the amount, if any, by which liabilities in
respect of service for which a written application to purchase it was made
before 1992 and that is in the course of being purchased over time and that, at
the time of withdrawal, has not yet been paid for exceed the present value of
the outstanding contributions in respect of that service, and
(b) a
post-1991 liability includes the amount, if any, by which liabilities in
respect of other service that is in the course of being purchased over time and
that, at the time of withdrawal, has not yet been paid for exceed the present
value of the outstanding contributions in respect of that service.
(3) Section 9(8) of the Act Schedule
applies to the extent that the actuarial valuation referred to in subsection
(1) applies with respect to the Plan’s unfunded liability referred to in
section 9(1) of the Act Schedule.
Formulas for
apportionment of assets
17(1) The assets to be apportioned to the
withdrawing employer as at the time of withdrawal are equal to the sum of the
results of the apportionments under this section.
(2) If A exceeds E, the pre‑1992
assets to be apportioned to the withdrawing employer as at time of withdrawal
are
,
or, if A is less than
or equal to E, they are
.
(3) If C exceeds F, the post‑1991
assets to be apportioned to the withdrawing employer as at the time of
withdrawal are
,
or, if C is less than
or equal to F, they are
.
(4) The post‑1991 assets to be
apportioned to the withdrawing employer under subsection (3) are to be reduced
by an amount equal to the costs referred to in section 15(2).
(5) If the costs referred to in
subsection (4), when finalized, exceed the post-1991 assets to be apportioned
to the withdrawing employer under subsection (3), no post-1991 assets are to be
apportioned to the withdrawing employer, and the withdrawing employer must pay
an amount equal to the excess to the plan fund within 30 days of being charged
for them by the Provincial Treasurer.
Apportionment and
transfer
18(1) Before the time of withdrawal, the
Board shall estimate the assets to be apportioned to the withdrawing employer
as at the time of withdrawal on the basis set out in section 17.
(2) The Lieutenant Governor in Council
shall order an initial transfer to the pension fund of the other plan, as at
the time of withdrawal, of an amount equal to 90% of the estimated
apportionment.
(3) At the earliest practicable time
after the finalization of data, the Board shall determine the final
apportionment of assets to the withdrawing employer, as at the time of
withdrawal, on the basis set out in section 17 and, once the withdrawing
employer has provided the certificate under section 14(4), the order under
subsection (4) or the return of excess under subsection (5) shall be made
forthwith.
(4) If the amount determined under
subsection (3) exceeds the amount transferred under subsection (2), the
Lieutenant Governor in Council shall order the transfer of the remainder of the
apportionment, with interest from the time of withdrawal to the date of
payment, from the plan fund to the pension fund of the other plan.
(5) If the amount determined under
subsection (3) is less than the amount transferred under subsection (2), the
legal owner of the other plan’s pension fund shall return the excess, with
interest from the time of withdrawal to the date of payment, from the pension
fund of the other plan to the plan fund in the form of cash or, with the
consent of the Provincial Treasurer, specific assets equal in market value to
the amount required, or a combination of both.
(6) Interest under subsection (4) or (5)
is payable on the basis of the market rate of return earned by the plan fund,
net of those investment costs that are specified by the Provincial Treasurer
for that purpose, from the time of withdrawal until the latest date up to which
that rate is available, and on the basis of the rate of return earned by the
Consolidated Cash Investment Trust Fund for the remainder of the period to the
date of payment.
(7) The transfers from the plan fund
under subsections (2) and (4) are to consist of such specific assets and to be
in such of the following forms as is decided by the Provincial Treasurer after
consulting with the Board, namely
(a) in
cash,
(b) on
the basis of a prorated interest in the investments of the plan fund valued at
market value, or
(c) as
a combination of the forms set out in clauses (a) and (b),
and where the transfer
would require a significant liquidation of the assets in a pooled fund, the
transfer may include securities held by the pooled fund.
(8) Where any assets transferred under
subsection (2) or (4) are interests in a pooled fund, the other plan must
redeem those interests in accordance with the guidelines established for the
pooled fund within one year of the date of the transaction under subsection (4)
or (5) or within such longer period as is agreed in writing between the
withdrawing employer and the Provincial Treasurer.
(9) The guidelines referred to in
subsection (8) are exempt from the Regulations
Act.
(10) The assets and liabilities
attributable to the withdrawing employer become final when, and may not change
after, the transaction described in subsection (4) or (5) is completed.
Application to
withdrawing persons accruing multiple service
19 Where
(a) subsections
(2) and (4) or subsection (3) or (5) of section 12 apply, or
(b) any
other similar circumstances that give rise to doubt as to a person’s pension
coverage or potential coverage under this Part arise,
any apportionment or
other separation or division that needs to be done under this Part as between
the Plan and the other plan or plans or between the other plans must be done on
a basis that is approved by the Board and that most closely reflects the
overall intent of this Part.
Indemnification
20(1) The withdrawing employer and the
legal owner of the pension fund of the other plan indemnify
(a) the
Board and the members of the Board for any damages or legal and other expenses
incurred in defending any claim against the Board, or any Board member that
arises directly or indirectly from the withdrawal, and
(b) the
Plan fund and the Plan’s administrator and trustee for any claim made after
completion of the withdrawal.
(2) Subject
to subsection (1), an indemnification by subsection (1)(a) covers anything done
by the Board or Board member, as the case may be, in good faith in the exercise
of powers, duties and functions under section 14 of the Act Schedule or this
Part.
(3) To
the extent permissible by law, any liability under an indemnity under this
section by the other pension fund’s legal owners is to be met from that pension
fund itself.
Agreement to alter
time limits
21 Notwithstanding anything in
this Part, where a provision of this Part requires anything to be done within a
certain period or by a specified time prior to the time of withdrawal, the
Minister, the Board and the withdrawing employer may enter into a written
agreement altering the time before which that thing must be done.
Transitional
-predecessor plan benefits
22 For the purposes of section
16(1), pre‑1992 liabilities must be reduced to reflect benefit reductions
described in section 113.1(1) and (2) of the plan rules.
Part 3
Termination of the Whole Plan
Application
23 This Part establishes, in
addition to section 15 of the Act Schedule, the general bases for the
apportionment of the Plan’s liabilities and assets on the termination of the
whole Plan and for the transfer of those apportioned liabilities and assets
from the Plan under that section, and related matters.
General definitions
24 In this Part,
(a) “actuarial
valuation methods and assumptions” means the actuarial cost methods and
assumptions used by the Plan’s actuary in the actuarial valuation report for
funding purposes, but with assets being valued at market value, that is
coincident with or that most recently precedes the time of wind‑up;
(b) “additional
contributions” means additional contributions paid or payable to the other plan
under the order made under section 15(7)(c) of the Act Schedule;
(c) “market
value” means the amount that the Provincial Treasurer, using generally accepted
accounting principles, including the accounting recommendations of the Canadian
Institute of Chartered Accountants set out in the Handbook published by that
Institute, as amended from time to time, determines to represent the value of
the assets or investments that would be agreed on in an arm’s length
transaction between knowledgeable and willing parties who are under no
compulsion to act;
(d) “employers”
means the employers, within the meaning of the plan rules, participating in the
Plan as such immediately before the time of wind-up;
(e) “other
pension plans” has the meaning assigned to it in section 15(1)(a) of the Act
Schedule, and “other plan” means any one of the other pension plans;
(f) “other
plan’s member” means, with reference to the other plan or plans referred to in
section 26, a person falling within section 26(1)(a), (b), (c) or (d);
(g) “post‑1991
assets” means the Plan’s assets in respect of the post‑1991 liability;
(h) “post‑1991
liability” means the Plan’s liabilities in respect of all service recognized as
pensionable service and all benefits in place, less the pre-1992 liability;
(i) “pre‑1992
assets” means the Plan’s assets in respect of the pre-1992 liability;
(j) “pre‑1992
liability” means the Plan’s liabilities in respect of all service that was
recognized as pensionable service, and all the benefits that were in place, as
at December 31, 1991;
(k) “time
of wind‑up” means the effective time of the wind‑up, being the
effective time of the declaration under section 15(7)(d) of the Act Schedule;
(l) “transferring
participant” means a person who was a participant and an employee of an
employer immediately before the time of wind-up and who did not terminate or
become a participant of and under the related plan with effect as at, or die at,
the time of wind‑up;
(m) “wind-up”
means termination as defined in section 15(1)(b) of the Act Schedule.
Required
characteristics of other pension plans
25(1) Each of the other pension plans
must, in addition to meeting the requirements of section 15(1)(a) of the Act
Schedule,
(a) provide
for the benefits and entitlements provided for by Part 5 of the plan rules to
transferring participants who are to be members of the other plan or for
benefits and entitlements that are not less favourable for those persons in
respect of
(i) service performed before the time of wind-up and
(A) that was acquired as pensionable service
before then, or
(B) which, immediately before the time of
wind-up, was in the course of being purchased over time under the plan rules,
on payment for the service,
and
(ii) pensionable salaries earned during participation in the Plan and
in that other plan,
(b) provide
in effect that all service of or with respect to any other plan’s member that
counts as combined pensionable service for the purposes of determining
eligibility for benefits under the Plan is to count for the same purposes in
effect under the other plan in which that person will participate or have
coverage or potential coverage,
(c) in
the case of any other plan’s member who made arrangements to acquire service as
pensionable service before the time of wind-up and has not fully paid for the
service being acquired, the arrangements so made with the Plan are to continue
to have full effect with the other plan in which that person will participate
or have coverage or potential coverage as if they had been originally entered
into with that other plan, under the same terms and conditions, and
(d) put
into effect section 15(6), as it incorporates section 14(7)(c) and (d), of the
Act Schedule.
(2) The
other plan must also provide in effect that
(a) that
other plan’s trustee is to hold all the assets transferred from the Plan to the
other plan, all additional contributions paid and all investment income and
capital appreciation derived from those assets and contributions in trust, and
to use them, for the sole purposes of providing benefits and entitlements under
the other plan and to meet the other plan’s administration costs, and
(b) those
assets, additional contributions, investment income and capital appreciation
belong beneficially to the persons entitled to benefits under the other plan.
(3) To
avoid any doubt, benefits and entitlements are not less favourable, for the
purposes of subsection (1)(a), by reason only of their being provided by means
of defined contribution provisions within the meaning of the Employment
Pension Plans Act if
(a) the
arrangements under those defined contribution provisions are agreed to in
writing by each withdrawing participant who elects to participate in the other
plan under those defined contribution arrangements, and
(b) the
benefits and entitlements provided to each such withdrawing participant are of
equivalent value to those benefits and entitlements to which the participant
would be entitled if he did not agree to those arrangements.
Effect on employees,
etc.
26(1) Subject to this section, on a
wind-up an employer commences participation as such in, and the following
persons commence participation in, or coverage or potential coverage by, the
other plan into which that employer is transferring:
(a) persons
who were employees of that employer immediately before the time of wind-up;
(b) persons
who, immediately before the time of wind-up, were former participants with
remaining entitlements to benefits under the Plan and who had been employees of
that employer immediately before their most recent termination;
(c) persons
who, immediately before the time of wind-up, were entitled to benefits which
had arisen on the death of, or from an assignment under a matrimonial property
order relating to, a person who had been an employee of that employer
immediately before death or his most recent termination, as the case may be;
(d) persons
currently, prospectively or potentially entitled to benefits under the Plan
accrued to the time of wind-up through persons referred to in clause (a), (b)
or (c).
(2) Where, in respect of any other
plan’s member, there are 2 or more employers involved transferring to 2 or more
other plans,
(a) a
person referred to in subsection (1)(a) becomes a member of, and
(b) that
person or a former employee who falls within subsection (1)(b) or through whom
a person falls within subsection (1)(c) or (d) is to be treated as having
accrued pensionable service that counts for the purposes of,
both or all of the
other plans to the respective extents decided by the Board.
(3) The Board shall make any decision
required by subsection (2) on the basis which, in its opinion, most closely
reflects the overall intent of this Part.
Timing
27 Transferring participants
become members of the other plan, and the other plan’s members who are not
transferring participants assume their respective entitlements under the other
plan, immediately after the time of wind-up.
Information and
disclosure
28(1) The Minister must, in the notice
required by section 15(5)(a) of the Act Schedule, specify when the wind‑up
is intended to become effective.
(2) At least 9 months before the
projected time of wind-up, the Board must report in writing to the employers
the Board’s estimation, as at the projected time of wind-up, of the
apportionments between the employers of
(a) the
pre‑1992 and post‑1991 assets that will be determined on the basis
set out in section 31, and
(b) the
pre-1992 and post-1991 liabilities.
(3) At
least 3 months before the projected time of wind-up, each employer must submit
to the Board and the Minister, in writing,
(a) certification
by the other plan’s actuary that the other plan meets the requirements of
section 25, and
(b) a
copy of the indemnity for the Crown given by that employer under section
15(5)(c), as it incorporates section 14(6)(d), of the Act Schedule.
(4) At
the earliest practicable time, the Board must
(a) report
in writing to the employers the final apportionment of the pre‑1992 and
post‑1991 assets under section 31 and of the pre-1992 and post-1991
liabilities, and
(b) provide
to them copies of the actuarial valuation referred to in section 30(1),
and, as soon as
practicable thereafter, the employers must provide to the Minister and the
Board certificates agreeing to that apportionment.
(5) If
an employer so requests, the Board must forthwith provide to that employer the
data and working papers used for calculating the apportionments of assets and
liabilities referred to in subsections (2) and (4).
(6) For the purposes of subsections (2)
and (4), the pre-1992 and the post-1991 liabilities following the provisional
and final apportionments are to be taken as the amounts “B” and “D”, as defined
in section 30(1)(b) and (d), respectively.
(7) At the earliest practicable time,
but before the final transfer of assets,
(a) each
employer must submit to the Board and the Minister a copy of the indemnity for
the Crown given by the legal owner of the pension fund of the other plan, and
the acceptances given by the employer and that fund owner, under section
15(5)(c), as it incorporates section 14(6)(d) and (e) respectively, of the Act
Schedule, and
(b) the
Board must send the Minister a copy of its acceptance given on the wind-up with
reference to that section 14(6)(e).
Wind-up costs
29(1) The Provincial Treasurer may
charge the plan fund for all reasonable costs, excluding any plan costs,
incurred by the Minister, the Board and the Provincial Treasurer with respect
to the wind-up or proposed wind‑up.
(2) Transactions under this section
involving the plan fund must be applied to its post‑1991 assets.
Definitions for
calculation purposes
30(1) The following letters designate the
amounts used in the calculations under section 31 as determined in a written
actuarial valuation that is prepared for the purposes of the wind‑up as
at the time of wind-up on the basis of the actuarial valuation methods and
assumptions and that is approved by the Board:
(a) “A”
means the pre-1992 liability;
(b) “B”
means the pre-1992 liability, so far as it relates to the other plan’s members
relative to each employer;
(c) “C”
means the post‑1991 liability;
(d) “D”
means the post‑1991 liability, so far as it relates to the other plan’s members
relative to each employer;
(e) “E”
means the market value of the pre‑1992 assets;
(f) “F”
means the market value of the post‑1991 assets, reduced by costs to be
charged under section 29;
(g) “G”
means the decimalized fraction (rounded to 5 decimal places) representing the
ratio, determined immediately before the time of wind‑up, of the
aggregate annualized salaries of the transferring participants relative to each
employer to those of all transferring participants relative to all employers.
(2) For the purposes of subsection (1),
(a) a
pre-1992 liability includes the amount, if any, by which liabilities in respect
of service for which a written application to purchase it was made before 1992,
that is in the course of being purchased over time and that, at the time of
wind-up, has not yet been paid for exceed the present value of the outstanding
contributions in respect of that service, and
(b) a
post-1991 liability includes the amount, if any, by which liabilities in
respect of other service that is in the course of being purchased over time and
that, at the time of wind-up, has not yet been paid for exceed the present
value of the outstanding contributions in respect of that service.
(3) Section 9(8) of the Act Schedule
applies to the extent that the actuarial valuation referred to in subsection
(1) applies with respect to the Plan’s unfunded liability referred to in
section 9(1) of the Act Schedule.
Formulas for
apportionment of assets
31(1) The assets to be apportioned to each
employer as at the time of wind-up are equal to the sum of the results of the
apportionments under this section.
(2) If A exceeds E, the pre-1992 assets
to be apportioned to each employer as at the time of wind-up are
B - [(A - E) x G],
or, if A is less than
or equal to E, they are
B x E.
A
(3) If C exceeds F, the post‑1991
assets to be apportioned to each employer as at the time of wind-up are
D - [(C - F) x G],
or, if C is less than
or equal to F, they are
D x F.
C
Apportionment and
transfer
32(1) Before the time of wind-up, the
Board shall estimate the assets to be apportioned to each employer and to each
of the other pension plans, if more than one, as at the time of wind-up, on the
basis set out in section 31.
(2) The Lieutenant Governor in Council
shall, pursuant to section 15(7) of the Act Schedule, order the initial
transfer to the pension fund of each of the other pension plans, as at the time
of wind-up, of an amount equal to at least 90% of the estimated apportionment
applicable to that other plan.
(3) At the earliest practicable time
after the finalization of data, the Lieutenant Governor in Council shall
determine the final apportionment of assets to each employer, as at the time of
wind-up, on the basis set out in section 31 and, once all the employers have
provided the certificates under section 28(4), the order under subsection (4)
or the return of excess under subsection (5) shall be made forthwith.
(4) If the sum of the amounts determined
under subsection (3) that are transferable to any of the other pension plans
exceeds the amount transferred to that plan under subsection (2), the
Lieutenant Governor in Council shall, pursuant to section 15(7) of the Act
Schedule, order the transfer of the remainder of the apportionment, with interest
from the time of wind-up to the date of payment, from the plan fund to the
pension fund of that other plan.
(5) If the sum of the amounts determined
under subsection (3) that are transferable to any of the other pension plans is
less than the amount transferred to that plan under subsection (2), the legal
owner of that other plan’s pension fund shall return the excess, with interest
from the time of wind-up to the date of payment, from the pension fund of the
other plan to the plan fund in the form of cash or, with the consent of the
Provincial Treasurer, specific assets equal in market value to the amount
required, or a combination of both.
(6) Interest under subsection (4) or (5)
is payable on the basis of the market rate of return earned by the plan fund,
net of those investment costs that are specified by the Provincial Treasurer
for that purpose, from the time of wind‑up to the date of payment.
(7) The transfers from the plan fund
under subsections (2) and (4) are to consist of such specific assets and to be
in such of the following forms as is decided by the Provincial Treasurer after
consulting with the Board, namely
(a) in
cash,
(b) on
the basis of a prorated interest in the investments of the plan fund valued at
market value, or
(c) as
a combination of the forms set out in clauses (a) and (b),
and where the transfer
would require a significant liquidation of the assets in a pooled fund, the
transfer may include securities held by the pooled fund.
(8) Where any assets transferred under
subsection (2) or (4) are interests in a pooled fund, the other plan must
redeem those interests in accordance with the guidelines established for the
pooled fund within one year of the date of the transaction under subsection (4)
or (5) or within such longer period as is agreed in writing between the
employers and the Provincial Treasurer.
(9) The guidelines referred to in
subsection (8) are exempt from the Regulations
Act.
(10) The assets and liabilities
attributable to each employer become final when, and may not change after, the
transactions described in subsection (4) or (5) are completed.
Application to other
plan’s members accruing multiple service
33 Where
(a) section
26(2) applies, or
(b) any
other similar circumstances that give rise to doubt as to a person’s pension
coverage or potential coverage under this Part arise,
any apportionment or
other separation or division that needs to be done under this Part as between 2
or more of the other pension plans must be done on a basis that is approved by the
Board and that most closely reflects the overall intent of this Part.
Indemnification
34(1) The employers and the legal owners of the pension funds of
the other plans indemnify
(a) the
Board and the members of the Board for any damages or legal and other expenses
incurred in defending any claim against the Board or any Board member that
arises directly or indirectly from the plan termination, and
(b) the
Plan fund and the Plan’s administrator and trustee for any claim made after the
wind-up.
(2) Subject
to subsection (1), an indemnification by subsection (1)(a) covers anything done
by the Board or Board member, as the case may be, in good faith in the exercise
of powers, duties and functions under section 15 of the Act Schedule or this
Part.
Agreement to alter
time limits
35 Notwithstanding anything in
this Part, where a provision of this Part requires anything to be done within a
certain period or by a specified time prior to the time of wind‑up, the
Minister, the Board and the employers may enter into a written agreement
altering the time before which that thing must be done.
Transitional -
predecessor plan benefits
36 For the purposes of section
30(1), pre‑1992 liabilities must be reduced to reflect benefit reductions
described in section 113.1(1) and (2) of the plan rules.
AR 365/93
Sched.3;163/94;209/94;293/96;146/98;116/99;147/99;246/99;
155/2000;321/2000
Schedule 4
Special Forces Pension Plan - Specific Provisions
Interpretation
1 In this Schedule,
(a) “employee
nominee” means a member of the Board who was nominated under section 3(d), (e)
or (f);
(b) “employer
nominee” means a member of the Board who was nominated under section 3(a), (b)
or (c).
Application
2 This Schedule relates to the
Special Forces Pension Plan (referred to as “the Plan”).
Application of plan
rules from prior date
2.1 A provision of the plan rules
that deals with
(a) participation,
including who are or are not employees,
(b) salaries,
(b.1) repealed
AR 262/2006 s7,
(c) reciprocal
agreements, and
(d) any
provision required by the tax rules
may be made to apply
with effect from a date specified in those plan rules that is prior to that on
which they are filed under the Regulations
Act.
Composition of Board
3 The Board is to consist of
(a) one
person nominated by the City of Edmonton or nominated as that city’s nominee on
the Board by an organization representing that city,
(b) one
person nominated by the City of Calgary or nominated as that city’s nominee on
the Board by an organization representing that city,
(c) one
person nominated by other employers or nominated as their nominee on the Board
by an organization representing them,
(d) one
person, who is a member of the police force of Edmonton, nominated by the
Police Association of Edmonton or an organization representing it,
(e) one
person, who is a member of the police force of Calgary, nominated by the Police
Association of Calgary or an organization representing it,
(f) one
person, who is a member of the police force of another employer municipality,
nominated by the employees of other employers or an organization representing
those employees, and
(g) one
person nominated by the Minister of Finance, acting for the Crown,
and appointed by the
Lieutenant Governor in Council.
3.1 Repealed AR 100/2005 s4.
Current service
contribution rates
4(1) For the purposes of the setting of
contribution rates for current service under section 5(2) of the Act Schedule
and of the determination of whether or not the condition set out in section
4(10)(c) of the Act Schedule is met, the minimum solvency requirements referred
to in section 1(1)(b) of the Act Schedule apply only to benefits in respect of
service after 1991.
(2) For
the purposes of subsection (1), the Minister shall ensure that a separate
accounting is made and maintained of assets in respect of service after 1991.
(3) In
setting the contribution rates for current service under section 5(2) of the
Act Schedule for the Plan, the Board shall set them so that
(a) the
current service cost is shared by employers and employees, and
(b) the
employers’ contribution rate exceeds the rate set for employees by 1.1% of
pensionable salary.
Employer’s periodic report
4.1(1) An employer shall, at least once
every 3 years or more frequently if so required by the Minister and before the
end of the triennium or the date specified by the Minister as the case may be,
provide to the Minister a report that has been prepared by an independent
accountant or another person acceptable to the Minister, with respect to the
employer’s compliance with his obligations under the Plan during the relevant
period and on such matters as the Minister has specified by written notice to
employers generally.
(2) Where
a report complying with subsection (1) is not received before the end of the
triennium or the date specified by the Minister as the case may be, the
Minister may order that a report that does so comply be conducted at the
employer’s expense.
(3) In
subsection (1), “accountant” means a person who is permitted under the laws of
Alberta to engage, on a fee for service basis and not under anyone’s
supervision, in public accounting practice, within the meaning of the Regulated
Accounting Profession Act, in respect of work that is intended to be relied
on by a third party.
7 Repealed AR 146/98 s6.
AR 365/93
Sched.4;27/96;146/98;147/99;155/2000;270/2002;
100/2005;262/2006
Schedule 5
Management Employees Pension Plan - Specific Provisions
Part
1
General Provisions
Interpretation
1 In this Schedule,
(a) “employee
nominee” means a member of the Board who was nominated under section 3(1)(b);
(b) “employer
nominee” means a member of the Board who was nominated under section 3(1)(a).
Application
2 This Schedule relates to the
Management Employees Pension Plan (referred to as “the Plan”).
Application of plan
rules from prior date
2.1 A provision of the plan rules
that deals with
(a) participation,
including who are or are not employees,
(b) salaries,
(c) reciprocal
agreements, and
(d) any
provision required by the tax rules
may be made to apply
with effect from a date specified in those plan rules that is prior to that on
which they are filed under the Regulations Act.
Composition of Board
3(1) The Board is to consist of
(a) three
persons nominated by the Government,
(b) three
persons nominated by employees or organizations representing employees, or a
combination of both, and
(c) one
person nominated by the Public Service Commissioner,
and appointed by the
Lieutenant Governor in Council.
(2) The
member nominated under subsection (1)(c) has no vote.
3.1 Repealed AR 100/2005 s4.
Current service
contribution rates
4(1) For the purposes of the setting of
contribution rates for current service under section 5(2) of the Act Schedule,
the minimum solvency requirements referred to in section 1(1)(b) of the Act
Schedule apply only to benefits in respect of service after 1991.
(2) For
the purposes of subsection (1), the Minister shall ensure that a separate
accounting is made and maintained of assets in respect of service after 1991.
Employer’s periodic report
4.1(1) An employer shall, at least once
every 3 years or more frequently if so required by the Minister and before the
end of the triennium or the date specified by the Minister as the case may be,
provide to the Minister a report that has been prepared by an independent
accountant or another person acceptable to the Minister, with respect to the
employer’s compliance with his obligations under the Plan during the relevant
period and on such matters as the Minister has specified by written notice to
employers generally.
(2) Where
a report complying with subsection (1) is not received before the end of the
triennium or the date specified by the Minister as the case may be, the
Minister may order that a report that does so comply be conducted at the
employer’s expense.
(3) In
subsection (1), “accountant” means a person who is permitted under the laws of
Alberta to engage, on a fee for service basis and not under anyone’s
supervision, in public accounting practice, within the meaning of the Regulated
Accounting Profession Act, in respect of work that is intended to be relied
on by a third party.
4.2 Repealed AR 100/2005 s5.
Part 2.1
Exit of Alberta Treasury Branches
Application
24.1 Whereas Alberta Treasury
Branches are to exit from the Plan with effect from the end of 1998, this Part
establishes, pursuant to section 12(1)(j) and (1.1) of the Act Schedule, the
basis for that employer’s exit from the Plan to another registered pension plan
established by it, the method by which the exit is to be made and other terms
and conditions for the exit.
General definitions
24.2 In this Part,
(a) “employer”
means Alberta Treasury Branches, established by the Alberta Treasury
Branches Act;
(b) “exit”
means the exit of the employer from the Plan under this Part, and includes the
consequential transfer of a portion of the Plan’s liabilities and assets;
(c) “exiting
participant” means an exiting person described in section 24.4(a);
(d) “exiting
person” means a person falling within section 24.4(a), (b) or (c);
(e) “market
value” means the amount that the Minister of Finance, using generally accepted
accounting principles, including the accounting recommendations of the Canadian
Institute of Chartered Accountants set out in the Handbook published by that
Institute, as amended from time to time, determines to represent the value of
the assets or investments that would be agreed on in an arm’s length
transaction between knowledgeable and willing parties who are under no
compulsion to act;
(f) “other
plan” means the other registered pension plan referred to in section 24.1;
(g) “time
of exit” means the end of 1998;
(h) “time
of transfer” means the time when the asset transfer is made pursuant to the
order referred to in section 24.83.
Required
characteristics of other plan
24.3(1) The other plan must
(a) provide
for the benefits and entitlements provided for by Part 5 of the plan rules to
exiting participants or for benefits and entitlements that are not less
favourable for those persons in respect of
(i) pensionable service accumulated to the time of exit, and
(ii) pensionable salaries earned during participation in the Plan and
in the other plan,
(b) provide
in effect that all service of or with respect to exiting persons that counts as
combined pensionable service for the purposes of determining eligibility for
benefits under the Plan is to count for the same purposes in effect under the
other plan,
(c) provide
to persons referred to in section 24.4(b) the protection afforded by section 13
of this Regulation (preceding Schedule 1), and
(d) acknowledge
the effect of section 12(1.3) of the Act Schedule.
(2) The
other plan must also provide in effect that
(a) the
legal owners of the pension fund of the other plan are to hold all the assets
transferred from the Plan to the other plan and all investment income and
capital appreciation derived from those assets in trust, and to use them, for
the sole purposes of providing benefits and entitlements under the other plan
and to meet the other plan’s administration costs, and
(b) those
assets, investment income and capital appreciation belong beneficially to the
persons entitled to benefits under the other plan.
(3) To
avoid any doubt, benefits and entitlements are not less favourable, for the
purposes of subsection (1)(a), by reason only of their being provided by means
of defined contribution provisions within the meaning of the Employment
Pension Plans Act if
(a) the
arrangements under those defined contribution provisions are agreed to in writing
by each exiting participant who elects to participate in the other plan under
those defined contribution arrangements, and
(b) the
benefits and entitlements provided to each such exiting participant are of
equivalent value to those benefits and entitlements to which the participant
would be entitled if he did not agree to those arrangements, with the
valuations being determined as at the date the exiting participant elects to
participate under those arrangements.
Employees, etc. exit
24.4 The employer exits the Plan
only in relation to
(a) persons
who were participants and who were employees of the employer immediately before
the time of exit and who do not terminate with effect as at, or die at, the
time of exit,
(b) spouses
or former spouses of persons referred to in clause (a) who, immediately before
the time of exit, have entitlements to benefits arising under matrimonial
property orders filed with the Minister with respect to those persons, and
(c) persons
prospectively or potentially entitled to benefits under the Plan accrued to the
time of exit through persons referred to in clause (a) or (b).
Effect of exit
24.5 With effect as at the time of
exit,
(a) the
employer is to be treated as having ceased participation as such in the Plan
and as having commenced participation as such in the other plan,
(b) exiting
persons are to be treated as having ceased participation or prospective or
potential coverage under the Plan and as having commenced participation or
prospective or potential coverage, as the case may be, under the other plan,
(c) all
benefits and entitlements in respect of exiting persons are to be treated as
having been transferred from the Plan to the other plan, and
(d) liabilities
for benefits and entitlements in respect of exiting persons are to be treated
as having been transferred from the Plan to the other plan.
Information and
disclosure
24.6(1) At the earliest practicable time,
the Minister, after consulting with the Board, must report in writing to the
employer the Minister’s estimation, as at the time of exit and with respect to
the employer, of the apportionment of the Plan’s assets and liabilities that
will be determined on the basis set out in section 24.82.
(2) Before the time of transfer and as
soon as practicable, the employer must provide written notice to each exiting
participant regarding the exit containing
(a) a
summary of the other plan, including the relevant benefits and entitlements
under that plan,
(b) a
description of the conditions that the other plan is required by section 24.3
to meet and a certification by the employer that the other plan meets those
requirements, and
(c) the
name of the employer’s representative who can provide more information to
exiting participants on request.
(3) Before the time of transfer and as
soon as practicable in each case, the employer must submit to the Minister, in
writing,
(a) certification
by the other plan’s actuary that the other plan meets the requirements of
section 24.3(1),
(b) a
written opinion of the legal adviser of the employer to the effect that the
other plan meets the requirements of section 24.3(2),
(c) certification
by the employer that the disclosure required by subsection (2) has been made,
and
(d) a
copy of the notice given under subsection (2).
(4) At
the earliest practicable time, the Minister must provide to the employer copies
of the actuarial valuations referred to in section 24.81.
(5) If the employer so requests, the
Minister must forthwith provide it with the data and working papers that relate
to the calculations under sections 24.81, 24.82 and 24.85.
Completion of
purchases of service
24.7(1) Where an exiting participant made
arrangements to acquire service as pensionable service before the time of exit,
has not fully paid for the service being acquired and wishes to transfer the
service not yet paid for to the other plan, payment must be made for that
unacquired service before the time of exit.
(2) No service that has not been paid
for may be transferred to the other plan.
Exit costs
24.8(1) The Minister of Finance may charge
the plan fund for all reasonable costs, including the cost referred to in
section 24.91 but excluding any plan costs, incurred by the Minister, the Board
and the Minister of Finance before the completion of the exit, with respect to
the exit.
(2) The
employer is liable to the plan fund for any costs charged to the plan fund
under subsection (1).
(3) Subject to subsection (4), the costs
for which the employer is liable under subsection (2) are to be deducted from
the assets apportioned to the employer under section 24.82 in accordance with
section 24.82(2).
(4) As
an alternative to having assets reduced as referred to in subsection (3), the
employer may elect in writing to the Minister of Finance, as soon as practicable
and in any case before the time of transfer, to reimburse the plan fund
directly for the costs for which the employer is liable under subsection (2),
in which case the employer must pay those costs within 30 days of being charged
for them by the Minister of Finance.
Definitions for
calculation purposes
24.81(1) The following letters designate the
amounts used in the calculations under this section and section 24.82, as
determined in a written actuarial valuation that is prepared for the purposes of
the exit as at the time of exit and that is approved by the Minister after
consultation with the Board:
(a) “A”
means the Plan’s accrued liabilities;
(b) “B”
means the Plan’s accrued liabilities in respect of the exiting persons;
(c) “C”
means the market value of the Plan’s assets.
(2) For the purposes of subsection
(1)(a), except so far as they relate to the exiting persons, the Plan’s accrued
liabilities include the amount, if any, by which liabilities in respect of
service that is in the course of being purchased over time and that, at the
time of exit, has not yet been paid for exceed the present value of the
outstanding contributions in respect of that service.
(3) For the purposes of subsection
(1)(a) and (b), if so warranted in the Minister’s opinion, the Plan’s accrued
liabilities in respect of exiting persons are to be calculated by limiting the
pensionable salaries of exiting persons to the maximum allowed by the
compensation guidelines of employers to whom the Public Service Act
applies.
(4) The
letter “D”, as used in the calculation under section 24.82, means the lesser of
(a) the
amount specified in a written actuarial valuation, approved by the Minister, of
accrued liabilities in the closed plan as at the time of exit in respect of members
of the closed plan who, at the time of their last termination, were employees
of the employer, and
(b) the
amount
![](/web/20061207201303im_/http://www.qp.gov.ab.ca/Documents/REGS/1993_365_files/image014.gif)
if positive or, if not
positive, 0.
Amount of assets for
transfer
24.82(1) The assets to be apportioned to the
employer and transferred to the other plan as at the time of transfer are equal
to
![](/web/20061207201303im_/http://www.qp.gov.ab.ca/Documents/REGS/1993_365_files/image016.gif)
plus interest from the
time of exit to the time of transfer.
(2) Unless
section 24.8(4) applies, the assets to be apportioned and transferred under
subsection (1) are to be reduced by an amount equal to the costs referred to in
section 24.8(2).
(3) The
assets to be transferred from the Plan to the closed plan are equal to D plus
interest from the time of exit to the time of transfer.
(4) Interest
under subsections (1) and (3) is payable on the basis of the market rate of
return earned by the plan fund, net of those investment costs that are
specified by the Minister of Finance for that purpose, from the time of exit
until the latest date to which that rate is available, and on the basis of the
rate of return earned by the Consolidated Cash Investment Trust Fund for the
remainder of the period to the time of transfer.
Order in Council
effectuating transfers
24.83 The Lieutenant Governor in
Council may, if satisfied that this Part has been met, order the transfers of
assets referred to in section 24.82 and shall, in the orders, specify the
effective dates of those transfers.
Nature of assets to
be transferred
24.84(1) The transfers from the plan fund
under section 24.83 are to consist of such specific assets and to be in such of
the following forms as is decided by the Minister of Finance, namely
(a) in
cash,
(b) on
the basis of a prorated interest in the investments of the plan fund valued at
market value, or
(c) as
a combination of the forms set out in clauses (a) and (b),
and where a transfer
would require a significant liquidation of the assets in a pooled fund, the
transfer may include securities held by the pooled fund.
(2) Where
any assets transferred to the other plan under section 24.83 are interests in a
pooled fund, the other plan must redeem those interests in accordance with the
guidelines established for the pooled fund within one year of the time of
transfer or within such longer period as is agreed in writing between the
employer and the Minister of Finance.
(3) The guidelines referred to in
subsection (2) are exempt from the Regulations Act.
Refund of excess
contributions less benefit payments
24.85(1) At the earliest practicable time
after the time of transfer,
(a) if
the amount resulting from the application of subsection (2) is positive, the
Minister of Finance shall pay from the Plan to the other plan, and
(b) if
that amount is negative, the legal owners of the other plan shall pay from that
plan to the Plan,
an amount equal to
that amount.
(2) The amount referred to in subsection
(1) is equal to the amount of
(a) any
contributions remitted after the time of exit to the Plan in respect of each
calendar month representing contributions paid by the employer and exiting
persons and other employees of the employer, less
(b) any
benefits paid after the time of exit from the Plan in respect of that calendar
month to exiting persons and other employees of the employer,
with interest from the
end of the next month to the date of the payment referred to in subsection (1),
then aggregated over all the months in the period from the time of exit to the
date of that payment.
(3) Interest
under subsection (2) is payable on the basis of the market rate of return
earned by the plan fund, net of those investment costs that are specified by
the Minister of Finance for that purpose, from the month end referred to in
subsection (2) until the latest date to which that rate is available and on the
basis of the rate of return earned by the Consolidated Cash Investment Trust
Fund for the remainder of the period referred to in subsection (2).
Indemnification
24.9(1) Before any assets are transferred
under this Part, the employer and the legal owners of the pension fund of the
other plan must indemnify the Crown in a written form acceptable to the
Minister with respect to any claims that may be made by any person that arise
directly or indirectly from the exit, including the fact of the exit’s being
retroactive.
(2) The
legal owners of the pension fund of the other plan indemnify
(a) the
Board and the members of the Board for any damages or legal and other expenses
incurred in defending any claim against the Board or any Board member that
arises directly or indirectly from the exit, and
(b) the
plan fund and the Plan’s administrator and trustee for any claims made by any
person that arise directly or indirectly from the exit.
(3) Subject
to subsection (2), an indemnification by subsection (2)(a) covers anything done
by the Board or Board member, as the case may be, in good faith in the exercise
of powers, duties and functions under this Part.
(4) To
the extent permissible by law, any liability under an indemnity under this
section by the other pension fund’s legal owners is to be met from that pension
fund itself.
Transfer of documents
and records
24.91 As soon as is practicable, the
Minister shall transfer to the administrator of the other plan, at the
employer’s cost, those documents and records that the Minister holds as the
administrator of the Plan, that pertain to exiting persons and other employees
of and relating to that employer and that are needed for the administration of
the other plan.
References in
matrimonial property orders
24.92 Where there is a reference to
the Plan in a matrimonial property order in respect of an exiting person, that
reference is to be treated, with effect from the time of exit, as a reference
to the other plan.
Liability for
benefits
24.93 The Crown is to have no
liability in respect of benefits to be provided by the other plan and the
pension fund of the other plan is to assume all such liability.
Extinguishment of
rights
24.94 On the exit, all the rights of
the employer and of exiting persons and other employees of and relating to that
employer in relation to the Plan are extinguished.
AR 365/93
Sched.5;146/98;116/99;147/99;236/99;155/2000;224/2000;
270/2002;100/2005;262/2006
Schedule 6
Public Service Management (Closed Membership)
Pension Plan Provisions
Pension suspension
1(1) In this section, references to
sections 22 and 23 are to be taken to refer to those sections of the Public
Service Management Pension Plan Regulation (AR 311/85), as those sections
had been saved and were applicable to the Plan before and as at the end of
2000.
(2) Once
a pension has commenced, it may not be suspended for any reason.
(3) Subsection
(2) does not affect the ongoing validity of a pension suspension effected
before 2001 under section 22(1) (but not under section 23), as provided for in
subsection (4).
(4) Subject
to subsection (5), section 22(1) continues to apply with respect to pension
suspensions effected under it before 2001 so long as the person continues,
without interruption, to make current service contributions within the meaning
of and to the permanent plan or the Public Service Pension Plan.
(5) A
person whose pension was, as at the end of 2000, under suspension pursuant to
section 22(1) may, within 120 days of the enactment of this section, apply in writing
to the Minister not to have subsection (4) apply to that person at all, in
which case subsection (4) does not so apply and payment of the pension
recommences with effect from January 1, 2001, with interest at the applicable
rate referred to in section 79(1)(b) of the permanent plan.
(6) Where,
as at the end of 2000, a pension was under suspension under section 23, payment
of the pension is to recommence as at January 1, 2001, with interest at the
rate referred to in subsection (5).
(7) Sections
22(2) and (3) and 23 are to be treated as not applying after 2000.
(8) This section applies with respect to all
pensionable service, whether before or after the end of 1991.
AR 288/2003 s2