Sale of Business

(1) Where an employer who contributes to a pension plan sells, assigns or otherwise disposes of all or part of his business or all or part of the assets of his business, and a member of the pension plan as a result becomes an employee of the successor employer, that member– (a) continues to be entitled to the benefits provided under the employer’s pension plan in respect of his employment up to the effective date of sale, assignment or disposition, without further accrual; (b) is entitled to credit in the pension plan of the successor employer for the period of membership in the employer’s pension plan, for the purpose of determining eligibility for membership in or entitlement to benefits under the pension plan of the successor employer; and (c) is entitled to credit in the employer’s pension plan for the period of employment with the successor employer for the purpose of determining entitlement to benefits under the employer’s pension plan. (2) Sub-section (1)(a) does not apply if the successor employer assumes responsibility for the accrued benefits of the employer’s pension plan and the pension plan of the successor employer shall be deemed to be a continuation of the employer’s plan with respect to any benefits or assets transferred. (3) Where a transaction described in sub-section (1) takes place, the employment of the employee shall be deemed, for the purposes of this Act, not to be terminated by reason of the (4) Subject to sub-section (5), where a transaction described in sub-section (1) occurs and the successor employer assumes responsibility in whole or in part for the benefits provided under the employer’s pension plan, with the prior approval of the Supervisor, a transfer of assets shall be made from the pension fund related to the employer’s pension plan to the pension fund related to the plan provided by the successor employer. (5) The Supervisor shall not approve a transfer of assets that does not– (a) protect the pension benefits of the members and beneficiaries; or (b) meet the prescribed and qualifications provided for under this Act or the regulations. (6) The Supervisor may by order require a transferee to return to the pension fund, with interest at a rate to be prescribed, assets transferred without the prior approval required by sub- section (4). (7) The Supervisor may set out additional conditions for the asset transfer.