Interpretation

(1) In these Regulations, unless the context otherwise requiresCAP. 30:01. “the Act” means the Private Pensions Act; “actuarial gain” means the sum, if positive, at the valuation date of a going concern valuation, of– (a) the gain or loss to a pension plan, during the period since the immediately preceding report prepared in accordance with section 7(2) of the Act or regulation 33, of the increase or decrease in the value of the assets of a pension plan, less the liabilities of the plan during the period determined in a going concern valuation of the plan resulting from the difference between actual experience and the experience expected by the assumptions on which that valuation was based; CAP. 30:01. 10 Private Pensions (b) the amount by which the going concern liabilities increase or decrease as a result of an amendment to the plan other than an that provides for employment prior to the date of the amendment where the employment had not previously been recognized for purposes of the provision of pension benefits; and (c) the amount by which the going concern liabilities increase or decrease or the going concern assets increase or decrease as a result of a change in actuarial methods or assumptions upon which the current going concern valuation is based; “actuarial loss” means the sum, if negative, at the valuation date of a going concern valuation, of– (a) the gain or loss to a pension plan, during the period since the immediately preceding report prepared in accordance with section 7(2) of the Act or regulation 33, of the increase or decrease in the value of the assets of a pension plan, less the liabilities of the plan during the period determined in a going concern valuation of the plan resulting from the difference between actual experience and the experience expected by the assumptions on which that valuation was based; CAP. 30:01. (b) the amount by which the going concern liabilities increase or decrease as a result of an amendment to the plan other than an that provides for employment prior to the date of the amendment where the employment had not Private Pensions 11 previously been recognized for purposes of the provision of pension benefits; and (c) the amount by which the going concern liabilities increase or decrease or the going concern assets increase or decrease as a result of a change in actuarial methods or assumptions upon which the current going concern valuation is based; “affiliate”, in relation to a company, means a company that is an affiliate of or affiliated with the first-mentioned company, within the meaning of subregulation (2)(a); “annual information report” means the report referred to in section 13 of the Act; CAP. 30:01. “book value”, in relation to an asset, means the cost of acquisition to the person acquiring the asset, including all direct costs associated with the acquisition; “derivative securities” means securities whose values, distributions or dividends depend, or are contingent, on the values or prices of other assets, commodities or securities, or on other variables; “escalated adjustment” means an adjustment that is made to a pension or a deferred pension of a former member of a pension plan where– (a) the adjustment is not capable of being determined with certainty at the time the plan or a relevant amendment to the plan is submitted for because the adjustment is related to the investment earnings of the pension fund or to future changes in a general wage or price index; or 12 Private Pensions (b) the adjustment is an increase in the pension or deferred pension at a fixed annual percentage rate specified in the plan; “going concern assets” means the value of the assets of a pension plan including accrued and receivable income determined on the basis of a going concern valuation; “going concern liabilities” means the present value of the accrued benefits of a defined benefit pension plan determined on the basis of a going concern valuation; “going concern unfunded liability” means the amount, if any, by which the sum of the going concern liabilities exceeds the going concern assets; “going concern valuation” means a valuation of assets and liabilities of a defined benefit pension plan using methods and actuarial assumptions considered by the actuary who valued the plan to be in accordance with the Standards of Practice of the Caribbean Actuarial Association, or a corresponding Canadian, British or American equivalent that may be approved by the Supervisor, for the valuation of a continuing pension plan; “importing plan” means the pension plan to which the assets and liabilities will be transferred; “initial valuation date” means the valuation date of the initial valuation report; “market value” means the most probable price that would be obtained for asset in an arm’s length sale in an open market under conditions requisite to a fair sale, the buyer and seller acting prudently, knowledgeably and willingly; “mortgage” means mortgages or other titles for repayment of loans secured by property described in regulation 60. Private Pensions 13 “mutual or pooled fund” means a company or unit trust– (a) whose assets in investments which are excluded by regulation 38(1) do not exceed ten per cent of its total assets (except in the case of index funds); and (b) that issues security interests, the purpose or effect of which is the pooling of investor funds with the aim of spreading risks and enabling investors in the mutual or pooled fund to receive profits or gains from the acquisition, holding, management or disposal of investments, but does not include a financial “normal cost” means the cost of pension benefits and ancillary benefits with respect to a fiscal year of a pension plan determined in accordance with the methods and actuarial assumptions used in a going concern valuation, which shall include the employer contributions in respect of a defined “past service unfunded liability” means the amount of going concern unfunded liability that results from the provision of benefits with respect to employment prior to the effective date of the pension plan or from an amendment to a plan that provides benefits for employment prior to the date of the amendment where the employment had not previously been recognized for purposes of the provision of pension benefits; “plan” means a pension plan; “prescribed annuity” means an annuity contract, issued by a life insurance company registered under the Insurance Act or any other person approved by the Supervisor, which is purchased in discharge or in full settlement of a pension or benefit under a registered pension plan and complies with the requirements of regulation 23; Cap. 251. 14 Private Pensions “private equity” means ownership interests in non-publicly- traded companies; “prospective benefit increase” means an increase to a pension benefit or ancillary benefit set out in the pension plan or agreed to by the parties to a collective agreement, but not yet in effect; “real estate” means interests in land or structures attached to land, but does not include a mortgage; “security” includes a share of any class or series of shares, a debt obligation of a company, a certificate evidencing such share or debt obligation and a warrant; “solvency assets” means the market value of investments held by a pension plan plus any cash balances of the plan and accrued or receivable income items of the plan; “solvency deficiency” means the amount by which the sum of the solvency liabilities exceeds the sum of the solvency assets, as of the valuation date of the report; “solvency liabilities”, in relation to a report, means the liabilities of a pension plan determined as if the plan had been wound up on the valuation date of the report, but excluding liabilities for– (a) any escalated adjustment; (b) prospective benefit increases; and (c) future salary increases; “solvency valuation” means a valuation performed in accordance with section 7(2) of the Act; CAP. 30:01. “special payment” means a payment or one of a series of payments determined for the purpose of liquidating a going concern unfunded liability or solvency deficiency in accordance with section 7(2) of the Act; CAP. 30:01. Private Pensions 15 “specified fee” means a fee specified in Schedule II to these Regulations; Schedule II. “traded publicly” means traded on an exchange on which securities are traded if the prices at which they have been traded on that market are regularly published in a newspaper or business or financial publication of general or regular paid circulation; “transfer ratio” means the fraction obtained by dividing the solvency assets of a pension plan by the solvency liabilities of the plan calculated at the latest valuation date; “triennial report” means the report referred to in section 13(c)(i) of the Act; CAP. 30:01. “valuation date” means the date as of which the assets and liabilities are valued for the purposes of the going concern and solvency valuations in a report; “voting share” means any share of any class of shares of a company that carries voting rights. (2) For the purpose of these Regulations– (a) a company shall be deemed to be affiliated with another company if one of them is the subsidiary of the other or both are subsidiaries of the same company or each of them is controlled or is legally or beneficially owned by the same person or group of persons; (b) the affiliate of every company shall be deemed to be affiliated with all companies with which the company is affiliated; (c) a company shall be deemed to be a subsidiary of another company if16 Private Pensions (i) it is controlled or legally or beneficially owned by– (a) that other company; (b) that other company and one or more companies each of which is controlled or legally or beneficially owned by that other company; or (c) two or more companies each of which is controlled or legally or beneficially owned by that other company; or (ii) it is a subsidiary, within the meaning of subparagraph (i), of a company that is that other company’s subsidiary; (d) a company shall be deemed to be controlled by a person if– (i) voting shares of the company that carry more than fifty per cent of the votes for the election of directors are held, other than by way of security only, by or for the benefit of the person; and (ii) the votes carried by the voting shares referred to in subparagraph (i) are sufficient, if exercised, to elect a majority of the board of directors of the company; (e) a company shall be deemed to be the holding company of all its subsidiaries; and Private Pensions 17 (f) a person shall be deemed to own voting shares that are owned by another company controlled by that person. (3) For the purposes of these Regulations, a person shall be deemed to be related to– (a) every company that the person controls and every affiliate of every such company; (b) every partner of the person who has a substantial beneficial interest in a partnership in which the person has a substantial beneficial interest; and (c) every trust or estate in which the person has a substantial beneficial interest or as to which the person serves as trustee or in a similar capacity to a trustee. Plan Registration, Amendment and Regulatory Filings