Proceedings of the Standing Senate Committee on
Banking, Trade and
Commerce
Issue 3 - Third Report of the Committee
Wednesday, November 5, 1997
The Standing Senate Committee on Banking, Trade and Commerce has the honour to present its
THIRD REPORT
Your Committee, to which was referred the Bill S-3, an Act to amend the Pension Benefits Standards Act, 1985 and the Office of the Superintendent of Financial Institutions Act, has examined the said Bill in obedience to its Order of Reference dated Tuesday, October 21, 1997, and now reports the same with the following amendments:
Pages 8 to 9, clause 9:
(a) replacing lines 22 to 24, on page 8, with the following:
"(a) the employer establishes that
(i) it is entitled to the surplus, or part of it, under the pension plan, or
(ii) it has a claim to the surplus, or part of it, under this section;";
(b) adding, after line 28, on page 8, the following:
"(2) In deciding whether to consent to a refund, the Superintendent shall recognize the claim of the employer to the surplus, or part of it, established under this section.";
(c) replacing line 29, on page 8, with the following:
"(3) An employer has a claim to the surplus, or";
(d) replacing line 39, on page 8, with the following:
"(4) Subject to subsection (5), if more than one half but fewer than two";
(e) adding after line 2, on page 9, the following:
"(5) The employer's claim to the surplus, or part of it, shall be submitted to arbitration within eighteen months after the termination of the pension plan, or any further period specified by the Superintendent, if
(a) the employer has not established a claim to the surplus;
(b) the plan is terminated; and
(c) the employer is winding up or is in the process of being liquidated.
The employer shall notify the Superintendent and the persons in the categories referred to in subsection (3) that the claim will be submitted to arbitration.
(6) If a proposal or claim is submitted to arbitration, the employer and all interested persons are deemed to have agreed to have the employer's claim determined by the arbitration.";
(f) adding after line 26, on page 9, the following:
"(15) In respect of a claim submitted to arbitration under subsection (5), the arbitrator may impose a scheme of division of the surplus, or of part of it, between the parties to the arbitration."; and
(g) renumbering subclauses (2) to (11) accordingly and any cross-references thereto.
Respectfully submitted,
MICHAEL KIRBY
Chairman