S-2.1.1 - Act to foster the financial health and sustainability of municipal defined benefit pension plans

Section 7 Disposition versions

2014-12-05

7. All pension plans must be amended to provide that, from 1 January 2014,

(1)  the current service contribution is to be shared equally between the municipal body and the active members;

(2)  any related deficiency is to be assumed in equal parts by the municipal body and the active members, except in the case of pension plans that were not accepting new members after 31 December 2013; and

(3)  a stabilization fund, funded by a stabilization contribution shared in equal parts between the municipal body and the active members, and aimed at protecting the plan from adverse deviation likely to affect the plan in the future, is to be established.

Despite subparagraph 1 of the first paragraph, if the active members contribute to the current service contribution in a proportion of 35% or less on 31 December 2013, the plan may be amended to provide for an incremental increase of that proportion, which must reach half of the difference between that proportion and 50% of the current service contribution by not later than 1 January 2017, and 50% of the current service contribution by not later than 1 January 2020.

2014, c. 15, s. 7.