Section 31Part 6 — Benefits
Value of deferred pension
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If the commuted value of the contributory benefit that accrued under a defined benefit pension plan before the 1st June, 1998, and to which a member is entitled on the date of termination of employment is less, on the date of termination, than the sum of the member's contributions made under the plan before the 1st June, 1998 to the date of termination, the benefit shall be increased on the date of termination so that the commuted value of the benefit is at least equal to the sum of the member's contributions and the interest thereon.
Subsection (1) does not apply in respect of a pension plan that contains the provision described in subsection (4).
Under a pension plan an increase in the commuted value of a contributory benefit under a pension plan in respect of employment before the 1st June, 1998 —
that results from an amendment to the pension plan made on or after that date; and
to which the member is entitled on the date of termination of employment, may be included in calculating the commuted value of the benefit for the purposes of subsection (1).
A pension plan may provide, in respect of each member of the plan that —
the sum of the member's contributions under the pension plan made before the 1st June, 1998 and the interest thereon to the date of termination of employment of the member shall not be used to provide more than fifty per cent of the commuted value on the date of termination of the contributory benefit under the plan to which the member is entitled on the date of termination; and
if the member is entitled to a contributory benefit under the pension plan on termination of employment, the member is entitled to payment on termination of a lump sum equal to the amount by which the sum of the member's contributions made before the 1st June, 1998 and interest thereon to the date of termination exceeds fifty per cent of the commuted value accrued before the 1st June, 1998.
The sum of the contributions under a pension plan made by a member of the plan after the 1st June, 1998 and the interest thereon to the date of termination of employment shall not be used to provide more than fifty per cent of the commuted value of the contributory benefit under the plan that has accrued after the 1st June, 1998 and to which the member is entitled on the date of termination.
A member is entitled to payment on termination of membership to a lump sum equal to the amount by which the sum of the member's contributions made after the 1st June, 1998 and interest thereon to the date of termination exceeds fifty per cent of the commuted value of the contributory benefit that accrued after the 1st June, 1998 and to which the member is entitled on the date of termination.
Under a pension plan the following may be excluded in determining that part of the commuted value of a pension or the actuarial present value of a benefit to which subsections (5) and (6) apply —
defined contribution benefits;
benefits that result from additional voluntary contributions; and
any other benefits prescribed for the purposes of this subsection.
Under a pension plan the following may be included in calculating a member's contributory benefit for the purposes of this section —
ancillary benefits related to employment on or after the 1st June, 1998;
any increase in pension benefits and ancillary benefits related to employment before the date of the amendment to a plan resulting from an amendment to such plan made on or after the 1st June, 1998 but that are not included in calculating commuted value under subsection (2); and
pension benefits and ancillary benefits related to employment before the date of the establishment of the pension plan, in the case of a pension plan established on or after the 1st June, 1998.
Where a defined benefit accrued by a member of a pension plan is, at any time, converted in whole or in part into a defined contribution benefit, the value of the defined benefits that are converted shall be the actuarial present value of those benefits at the time of conversion, and subsections (5) and (6) shall apply as if the member had terminated that member's employment at the time of conversion, and as if the term "actuarial present value" were substituted for the term "commuted value" in those subsections.