IN ThE MATTER OF the Pension 8enefIts Act, R.S.O. 1990,

Superintendent of
Financial
Services
nudntendant des
services
(inancien
Ontario
IN ThE MATTER OF the Pen
sion 8enef Its Act, R.S.O. 199
0,
c. P.8, as amended (the “P8A’
AND IN THE MATTER OF
a Notice of Intended Decision of
the
Superintendent of Financial Ser
vices to Make an Order und
er sections
19(1), 19(3), 48 and 87(2)(a)
of the PBA relating to the IIJOE
Local 793
Pension Plan for Operating En
gineers in Ontario, Registratio
n
Number
0389890
TO:
UOE Local 793
2216 Spcors Road
Oakvillc ON 16L $X8
The Board of Trustees
The IUOE Local 793 Pension
Pla
for OperatIng Engineers In On n
tario
Øo Koskie Minsky LLP
20 Queen Street West
Suite 900, Box 52
Toronto ON MSH 3R3
Attention:
Wchaoi Gallaghor, Bucinocs
Manager
CUe Godkewltsch, Counse)
Administrator of the Plan
AMENDED NOTICE OF INTEN
DED DECISION
(amended by order of Financial
Services Tribunal of February
18, 2015)
I INTEND TO MAKE AN ORDE
R under sections 48(6) and 87(2)(
a) of the PBA
that the Plan Administrator (‘IUCE
”) make settlement to the elig
ible recipient(s) of the
pre-retirement death benefit,
in accordance with the terms of the
IUOB Local 793
Pension Plan for Operating Engin
eers in Ontario, Registration Nu
mber 0389890 (the
“Plan”), and section 48 ot the PS
A, within sixty (60) days from
the dale the Intended
Order set out herein is issued.
I ALSO INTEND TO MAKE AN OR
DER under sections 87(2)(a)
of the PSA that
IUOE notify all persons who hav
e claimed entitlement to the pro
-retirement dealh
2
such person’s eligibility to the pre-retirement
benefit of IUQE’s determination regarding
the date the Intended Order set out herein is
death benefit, within sixty (60) days from
issued.
REASONS:
sponsor and administrator of the Plan:
1UOE Is the collective bargaining agent,
ember 1, 1973 as a multi-employer, nonThe Plan was established effective Nov
2.
.
contributory, defined benefit pension plan
Plan immediately prior to his death on
N.N. was an active member of the
3.
September 8, 2012.
in a conjugal relationship with Cit, with
At the time of his death, N.N. was living
4.
three years.
whom he had been living for more than
ied, but living separate and apart from,
At the time of his death1 N.N. was marr
5.
K.K.
KN., as the beneficiaries of his pre
Nfl. designated his daughters, tN. and
6.
retirement death benefit under the Plan.
1.
lements to N.N.’s pro-retirement death
C.H., T.N. and KN. have all asserted entit
7.
benefit.
settlement of N.N.’s pre-retirement death
IUOE has not made payment or other
8.
and sectIon 48 of the PM to any person.
benefit under section 17.01 the Plan text
The Plan
benefit payable if a member of the
The Plan provIdes for a pro-retirement death text states:
9.
1 of the Plan
Plan dies before retirement. Section 17.0
not in receipt of pension benefit
In the event of a Members death while he is
shall be paid under this Plan equal to
payments under this Plan, a death benefit
follows:
the greater of (a), (b) and (c) determined as
Member and by Employers on
the aggregate of contributions made by the
(a)
, reduced by the actuarial
behalf of the Member to the Pension Trust Fund
3
equivalent of pension benefi
t payments, El any, made to the me
mber prior
to his death, and
(b)
(c)
the commuted value of the firs
t one hundred and twenty month
ly pension
benefit payments of an early ret
irement pension to which the Me
mber
would have been entitled under
sectIon 11.06 of Article Xl of thi
s Plan,
reduced by the actuarial equiva
lent of pension benefit payments
, if any,
made to the Member prior to his
death, and
the minimum death benefit wh
ich this Plan is required to provid
e In respect
of the deceased Member by the
Pension Benefits Act, RS.O. 199
0, of
Ontario, and the Regulations ma
de thereunder.
If a Member dies leaving a spo
use as defined in section 4.18 of
Article IV of this
Plan, the aforesaid death benefi
t shall be paid to such spouse.
If a Member dies without leaving
a spouse as defined in section
4.18 of Article IV
of this Plan, the aforesaid death
benefit shall be paid to the benefi
claty
nominated by the Member, or fail
ing such nomination then to the
Membe?s
estate.
10.
SectIon 4.18 of the Plan text sla
tes:
The term spouse” means a person
(a)
(b)
of the opposite sex of a Member
who is
mauled to the Member, or
not married to the Member and
living in a conjugal relationship wit
h the
Member
(I)
continuously for a pedod of not
less than three years, or
(ii)
in a relationship of some permanen
ce, ii they are the natural or
adoptive parents of a child, bot
h as defined In the Family Law
Act,
but does not include
4
(c)
(d)
apart from the Member at the earlier
a person who is living separate and
date the Member dies, and
of the date retirement commences or the
a Member of this Plan following
a person who becomes a spouse of
thereunder.
commencement of his pension benefit
The PSA
that if a member dies before payment of the
Section 48(1) of the PRA provides
II.
date of
the person who Is his or her spouse on the
first instalment of his pension Is due,
sion
t death benefit from the member’s pen
men
etire
pro-r
a
ve
recei
to
led
entIt
is
death
e of
t of a lump sum equal to the commuted valu
plan, which can be settled by paymen
a
into
sion
pen
the
al to the commuted value of
the pension, payment of an amount equ
an
of
use
ngement, or the provision to the spo
registered retirement savinqs arra
the
muted value of whIch is at toast equal to
immediate or deferred pension, the com
sion.
commuted value of the members pen
12.
Section 1 of the PBA defines spouse as:
either of two persons who,
(a) are married to each other, or
are living together in a conjugal
(b) are not married to each other and
relationship,
than three years, or
(I) continuously for a period of not less
if they are the natural or
(ii) in a relationship of some permanence,
in the Family Law Act
adoptive parents of a child, both as defined
) ci the PRA provided that section 48(1)
At the time of N.N.’s death, sectIon 48(3
13.
rt
his or her spouse are living separate and apa
does not apply where the member and
on the date of death.
) of the PBA provided that a member
At the time of N.N.’s death, section 48(6
14.
ai
beneficiary is entitled to be paid an amount equ
may designate a beneficiary and the
s pension it the member does not have a spouse
to the commuted value of the member
use
iMng separate and apart from his or her spo
on the date of death or the member Is
on the date of death.
administrator of a pension plan has an
Section 19(1) of the PSA states that the
15.
plan is administered in accordance with the FDA
obligation to ensure that the pension
and the regulations.
S
16.
Section 19(3) of the PSA states
obligation to administer the pension that the administrator of a pension plan has an
plan in accordance with the tiled
respect of which the Superintendent
documents in
has issued a certificate of registr
ation or certificate
of registration of amendment, which
documents include the pension plan
text.
17.
In failing to make settlement to the elig
ible recipient(s) of the pre-retirem
benefit in section 17.01 of the Plan
ent death
text and section 48 ot the PBA,
IUOE Is failing to
administer the Plan In accordance With
section 17.01 of Plan text and sec
48 of the PSA.
tIons 19 and
18.
Any person who has claimed entitlem
ent to the pro-retirement death
who may be affected by IUQE’s dete
benefit and
rmination regarding eligibility sho
uld be provided
with notice of IUDE’s determination
so
challenge the determination, as approp that any such person will have the right to
riate.
19.
Section 87(2)(a) of the PBA states
that the Superintendent may mak
the Superintendent is of the opinion,
upon reasonable and probable gro e an order if
pension plan or pension fund is not
unds, that the
being administered in accordance
wit
h the PBA, the
regulallons or the pension plan.
20.
Such further and other reasons as may
come to my attention.
YOU ARE ENTITLED TO A HEAR
ING by the Financial Services
‘Iribunar) pursuant to section 89(6)
Tribunal (the
of
the PBA. Ta request a hearing,
deliver to the Tribunal a written not
you must
ice that you require a hearing,
within thIrty (30)
days after this Notice of Intended
Decision Is served on you.’
YOUR WRI17EN NOTICE must be deli
vered to:
Financial Services Tribunal
5160 Yonge Street
14m floor
Toronto, Ontario
M2N 6L9
Attention: The Regtrar
FOR FURThER INFORMATION on
a Form trw the written notice, please
Tribunal website at www.fstontario.ca
see the
or contact the Registrar of the Trib
unal by phone
at 416- 590-7294, toil free at 1-800-668
-0128, ext. 7294, or by fax at 416-22
6-7750.
NOTE Pursuant to section 112 of the P9,
4 any Notice, Order or other document
qiven, served or delivered it delivered
Is suflftlently
personally or sent by regular mail
and any document sent by
regular mSl shall be deemeD to be
given, served
-
mailing.
or delivered on the fifth day afte
r the date at
HIN THIRTV (30) DAYS, I MAY
IF YOU FAIL TO REQUEST A HEARiNG WIT
BED IN This NOTICE.
CRI
DES
CARRY OUT ThE INTENDED DECISION AS
2014.
DATED at Toronto, Ontario, this J(Y”%iay of
Deputy Superintendent, Pensions