RETIREMENT PLAN FOR EMPLOYEES OF YOUTH ......Retirement Plan for Employees of Youth Services of Ottawa effective July 1, 1972 reflecting all updates up to October 1, 2013. Plan terms

RETIREMENT PLAN

FOR EMPLOYEES OF

YOUTH SERVICES BUREAU OF OTTAWA

Financial Services Commission of Ontario and Canada Revenue Agency registration

number: 0362558

OFFICE CONSOLIDATION

Effective Date of the Plan: July 1, 1972

Consolidated as of: October 1, 2013

TABLE OF CONTENTS

Pension Plan for Employees of Youth Services Bureau of Ottawa

Consolidated as of October 1, 2013

PAGE

INTRODUCTION ........................................................................................................ 1

SECTION 1 - DEFINITIONS ...................................................................................... 2

SECTION 2 - EFFECTIVE DATE AND PRIMARY PURPOSE............................... 5

SECTION 3 - ELIGIBILITY ........................................................................................ 6

SECTION 4 – MEMBERSHIP IN THE PLAN ........................................................... 7

SECTION 5 - RETIREMENT DATE .......................................................................... 8

SECTION 6 – AMOUNT OF PENSION PAYMENT .............................................. 10

SECTION 7 - FORMS OF PENSION PAYMENTS................................................. 11

SECTION 8 – REGULAR CONTRIBUTIONS ........................................................ 13

SECTION 9 – ADDITIONAL CONTRIBUTIONS .................................................. 14

SECTION 10 – DEATH BENEFITS ......................................................................... 15

SECTION 11 – WITHDRAWAL BENEFITS .......................................................... 18

SECTION 12 - INTEREST ........................................................................................ 21

SECTION 13 - ASSIGNMENTS ............................................................................... 22

SECTION 14 – PROOF OF AGE .............................................................................. 23

SECTION 15 – SHORTENED LIFE EXPECTANCY ............................................. 24

SECTION 16 - GENERAL PROVISIONS ................................................................ 26

SECTION 17 – FUNDING OF BENEFITS .............................................................. 29

SECTION 18 – MAXIMUM ANNUAL PENSION .................................................. 30

SECTION 19 – CHANGE OR DISCONTINUANCE OF THE PLAN .................... 31

INTRODUCTION

Pension Plan for Employees of Youth Services Bureau of Ottawa Page 1


The provisions contained herein represent a consolidation of the terms and conditions of the

Retirement Plan for Employees of Youth Services of Ottawa effective July 1, 1972 reflecting all

updates up to October 1, 2013. Plan terms and conditions have been modified to incorporate

previous amendments and negotiated changes to the plan text from 2008 and to implement

changes from the Memorandum of Agreement, dated May 31, 2011. Benefits for Plan Members

who retired prior to, or were no longer actively contributing under the Plan at September 30,

2008 or October 1, 2011, as applicable, shall be governed by the terms and conditions of the Plan

in effect at the time when they retired or stop contributing to the Plan. As of October 1, 2008, the

Executive Member provisions of the plan have been removed from the Plan text, and any

reference to the benefit accrued for Executive Members must be reviewed in prior version of the

plan text. The Plan was further amended effective October 1, 2013 to update the Average

Earnings basis to that date, applicable to members still active in April 2014 and to retired

members. Eligible members with service prior to October 1, 2013 receive the greater of the

benefit calculated reflecting the amendment and the benefit calculated had the amendment not

been made.

Notwithstanding anything to the contrary under the provisions of this restated Plan, the Plan

terms shall remain in effect, except as otherwise provided herein, subject to the continued

registration thereof by the relevant tax authorities and under any applicable provincial and federal

pension legislation. Any authorized officer of the Bureau may amend the provisions of this

restated Plan retroactively or prospectively to the extent necessary to avoid the revocation of the

registration of the Plan.

SECTION 1 DEFINITIONS



For the purposes of this Plan, the following words and phrases shall have the respective

meanings given below, when capitalized, unless a different meaning is clearly required by the

context:

1.01 “Actuarial Equivalent” shall mean an actuarially equal value computed at the rate of

interest and using the actuarial tables adopted by the Bureau on the recommendation of

the Actuary and subject to the Rules and Legislation.

1.02 “Actuary” shall mean the person or firm retained by the Bureau to be the Actuary of

the Plan who is, or one of whose members is, a Fellow of the Canadian Institute of

Actuaries.

1.03 “Administrator” shall mean the Youth Services Bureau of Ottawa.

1.04 “Average Earnings” shall mean the average of the Member’s annualized Earnings

during the best 6 consecutive years preceding October 1, 2013 , and

1.05 “Average YMPE” shall mean the average of the YMPE during the period used to

determine the Average Earnings.

1.06 “Bargaining Agent” shall mean the union representing those covered by the

collective agreement.

1.07 “Beneficiary” shall mean a person or persons designated by a Member under Section

10.01 and subject to Section 10.02 to receive an amount which may be payable under

to the Plan upon the Member's death.

1.08 “Bureau” shall mean the Youth Services Bureau of Ottawa and, effective October 25,

2009, shall include the Youth Services Bureau Charitable Foundation but “Bureau”

shall mean Youth Services Bureau of Ottawa for purposes of making any decision that

must be made by the Bureau with respect to the Plan.

1.09 “Commuted Value” shall mean the actuarial present value of the pension benefit or

other benefit to which a Member, the Member's Spouse or Beneficiary, if applicable, is

or will become entitled and which shall be determined on a basis established by the

Bureau upon the recommendation of the Actuary and which conforms within the Rules

and Legislation.

1.10 “Earnings” shall mean, in respect of a month of membership of an Employee, the

amount of compensation received by the Employee from the Bureau for that month,

exclusive of expense allowances, car allowances, any payment received in lieu of

vacation leave and bonus of any kind.




1.11 “Employee” shall mean a person in the Service of the Bureau.

1.12 “Former Member” shall mean a person who has retired from the Plan or who has

ceased membership in the Plan and is still entitled to receive benefits from the Plan.

1.13 “Funding Agent” shall mean the trustees, trust company or insurance company that

the Bureau may appoint to hold and invest the pension fund or such successor trustees,

trust company or insurance company as the Bureau may appoint from time to time to

hold and invest the pension fund.

1.14 “Funding Agreement” shall mean the agreement entered into between the Bureau and

the Funding Agent establishing and maintaining the pension fund.

1.15 “Locked-in” shall mean a benefit which cannot be taken as a cash payment by the

Member or Spouse.

1.16 “Member” shall mean an Employee who has joined the Plan as provided in Section 4.

Any reference to Member includes Former Member except for contributions to be

made to the Plan in accordance with Sections 8 and 9.

1.17 “Plan” shall mean this Retirement Plan for Employees of Youth Services Bureau of

Ottawa as adopted by the Board of Directors of the Bureau, effective July 1, 1972 and

restated at October 1, 2011, and as it may be further amended from time to time.

1.18 “Plan Year” shall mean the calendar year.

1.19 “Retirement Savings Plan” shall mean a retirement savings plan or retirement

income fund registered under the Income Tax Act.

1.20 “Rules and Legislation” shall mean the Ontario Pension Benefits Act and its

Regulation, the Income Tax Act (Canada) and its Regulations, the administrative rules

of the Canada Revenue Agency and any legislation or regulations in any jurisdiction in

Canada as it applies to the Plan, to any Member or to the Bureau.

1.21 “Service” shall mean continuous employment of an Employee with the Bureau

including periods of Temporary Suspension of Employment.

1.22 “Spouse” shall mean, at the time a determination of marital status is required, two

people of the opposite or the same sex who are not living separate and apart and who:

a) are married to each other; or

b) are not married to each other and are living together in a conjugal relationship:




i) continuously for a period of not less than three years, or

ii) in a relationship of some permanence, if they are the natural or adoptive

parents of a child, both as defined in the Family Law Act.

1.23 “Temporary Suspension of Employment" shall mean any period of time during

which a person, who immediately before the period was employed by the Bureau, is

not performing duties as an Employee of the Bureau and after which the person is

again employed by the Bureau, except where an actual termination of employment of

the person has occurred, and includes any leave of absence, layoff, strike, lock-out or

any other circumstance acceptable under the Rules and Legislation, excluding any

period of disability or any period in which the individual is, at any time after 1990,

connected with the employer.

Periods of unpaid leaves of absence not exceeding two years may be included as

eligible service where benefits do not accrue for such service under another pension

plan.

1.24 “YMPE” shall mean in respect of any Plan Year for which a determination is required,

the year’s maximum pensionable earnings as defined under the Canada Pension Plan.

SECTION 2 EFFECTIVE DATE AND PRIMARY PURPOSE



2.01 Effective Date Of The Plan

The effective date of the Plan is July 1, 1972.

2.02 Consolidation

This consolidation of the Plan text reflects the terms and conditions of the Plan

including all amendments up to October 1, 2013. This is a non-official consolidation

and in the event of any discrepancies between this consolidation and the official Plan

text and amendments thereon filed with the authorities, the provisions of the latter

prevail.

2.03 Primary Purpose Of The Plan

The primary purpose of the Plan is to provide periodic payments to individuals after

retirement and until death in respect of their Service as Employee.

SECTION 3 ELIGIBILITY



3.01 Full-Time Employee

Each full-time Employee will be eligible to become a Member of the Plan on the first

day of the month after the completion of 6 months of Service.

3.02 Part-Time Employee

a) Each part-time Employee who on January 1, 1988 has fulfilled both the following

requirements:

i) the Employee has completed 2 years of Service; and

ii) in each of 2 consecutive calendar years immediately preceding the Employee’s

application for membership in the Plan, the Employee has either:

A) earned at least 35% of the YMPE; or

B) completed at least 700 hours of employment with the Bureau

will be eligible to become a Member of the Plan on January 1, 1988.

b) Each other and each new part-time Employee will be eligible to become a

Member of the Plan on the first day of the month following the month in which

the Employee has fulfilled both the following requirements:

i) the Employee has completed 2 years of Service; and

ii) in each of 2 consecutive calendar years immediately preceding the Employee’s

application for membership in the Plan, the Employee has either:

A) earned at least 35% of the YMPE; or

B) completed at least 700 hours of employment with the Bureau.

3.03 Waiver of Eligibility Requirements

The Bureau may waive the above eligibility requirements to allow an Employee to

become a Member of the Plan at an earlier date.

SECTION 4 MEMBERSHIP IN THE PLAN



4.01 Full-Time Employee

Each full-time Employee in the Service of the Bureau on July 1, 1972 may become a

Member when eligible. Each full-time Employee who enters the Service of the Bureau

after July 1, 1972 will be required to become a Member when eligible.

4.02 Part-Time Employee

Each part-time Employee may become a Member at any time after becoming eligible.

4.03 Enrollment

To become a Member each Employee shall complete an application for membership.

4.04 Withdrawal

Once having become a Member of the Plan, a Member may not withdraw from the

Plan while employed by the Bureau.

SECTION 5 RETIREMENT DATE



5.01 Normal Retirement

The normal retirement date of a Member will be the first day of the month coinciding

with or next after the Member’s 65th

birthday.

5.02 Unreduced Early Retirement

a) Upon 3 months’ notice, a Member who has attained the age of 55 and did not

terminate their employment with the Bureau prior to their early retirement date,

may retire with an unreduced pension on the first day of the month coinciding

with or next following the completion of thirty (30) years or more of continuous

employment with the Bureau.

b) Upon 3 months’ notice, a Member who has attained the age of 50 at the date of

termination of employment, may retire at any time after age 55 with an unreduced

pension on the first day of the month coinciding with or next following the date

the Member would have completed thirty (30) years or more of continuous

employment with the Bureau had the Member not terminated employment.

5.03 Early Retirement

Upon 3 months’ notice, a Member may retire on the first day of any month within the

10 years preceding the Member’s normal retirement date as follows:

a) For a Member who terminated employment with the Bureau without meeting any

of the criteria in Section 5.03(b)(i) to (iv):

The Member’s pension will be actuarially reduced in accordance with the

Member’s age on their early retirement date such that this reduced pension is the

Actuarial Equivalent of the pension payable at the first day of the month

coinciding with or next after the Member’s 60th

birthday in respect of benefits

accrued for Service up to September 30, 2008, and at normal retirement date, in

respect of benefits accrued on and after October 1, 2008, to which the Member

was entitled.

b) For a Member who:

i. attained the age of 55 and did not terminate his or her employment with the

Bureau prior to their early retirement date; or




ii. attained the age of 50 at the date of termination of employment with the

Bureau; or

iii. is disabled and in receipt of long term disability benefits through the Bureau’s

sponsored insurance plan immediately prior to the Member’s early retirement

date; or

iv. is on Temporary Suspension of Employment immediately prior to the

Member’s early retirement date;

The Member’s pension is reduced as follows:

i. For a Member who attained age 50 on October 1, 2008, the pension is reduced

by:

1. For Service up to September 30, 2008:

0.25% for each complete month of Service that the Member’s early

retirement date precedes the earlier of their unreduced retirement date or

the first day of the month coinciding with or next after the Member’s 60th

birthday; and

2. For Service on and after October 1, 2008:

0.5% for each complete month that the Member’s early retirement date

precedes the earlier of their unreduced retirement date or the first day of

the month coinciding with or next after the Member’s normal retirement

date.

ii. For a Member who did not attain age 50 on October 1, 2008, the pension is

reduced by:


0.5% for each complete month of Service that the Member’s early

retirement date precedes the earlier of their unreduced retirement date or

the first day of the month coinciding with or next after the Member’s 60th

birthday; and


0.5% for each complete month that the Member’s early retirement date

precedes the earlier of their unreduced retirement date or the first day of




the month coinciding with or next after the Member’s normal retirement

date.

For greater certainty, the early retirement date shall be the later of age 55 and the

date the member terminated employment.

The pension reduction will in no event be less than that called for in paragraph

8503(3)(c) of the Income Tax Regulations.

5.04 Late Retirement

Upon 3 months notice, a Member may retire on the first day of any month following

their normal retirement date but the Member may not defer their pension payments

later than the end of the calendar year of their 71st birthday or such other date as may

be prescribed under the Income Tax Act. If a Member remains in Service after their

normal retirement date, and if such Member elects to continue their contributions, the

Member’s pension will continue to accrue up to the earlier of:

a) the Member’s actual date of retirement; and

b) the date pension payments commence.

Subject to the following sentence, if a Member commences his or her pension after

normal retirement date, such pension will not be actuarially increased. If a Member

who remains in Service after his or her normal retirement date elects to discontinue his

or her contributions, the Member’s pension will be actuarially increased in accordance

with the age of the Member on the date his or her pension payments commence (or the

date of termination of Service, if earlier), such that this increased pension is the

Actuarial Equivalent of the pension payable at normal retirement date to which the

Member was entitled.

SECTION 6 AMOUNT OF PENSION PAYMENT



6.01 Amount Of Pension

The annual amount of pension payable to a Member is the sum of 1, 2 and 3 below.


The annual amount of pension payable to a Member, on their normal retirement

date will be equal to 1/12 of the sum of:

i) 1.4% of the portion of the Average Earnings of the Member up to 1/12 of

the Average YMPE; and

ii) 2% of the balance, if any, of such Average Earnings of the Member,

multiplied by the Member’s number of months of Service up to September 30,

2008 during their membership in the Plan.

2. For Service between October 1, 2008 and September 30, 2013 :

The annual amount of pension payable to a Member on their normal retirement


i) 1.5% of the portion of the Average Earnings of the Member up to 1/12 of the

Average YMPE; and

ii) 2% of the balance, if any, of such Average Earnings of the Member,

multiplied by the Member’s number of months of Service between October 1, 2008

and September 30, 2013 during their membership in the Plan.


The annual amount of pension payable to a Member on their normal retirement


i) 1.5% of the portion of the annualized Earnings of the Member up to 1/12 of

the YMPE; and

ii) 2% of the balance, if any, of such annualized Earnings of the Member.

multiplied by the Member’s number of months of Service on and after October 1,

2013 during their membership in the Plan.

SECTION 6 AMOUNT OF PENSION PAYMENT



6.02 50% Rule

The accumulation with interest of the Member’s regular contributions will be applied

to offset no more than 50% of the Commuted Value of the aforesaid pension. The

Member may elect, or in respect of the death benefit the Spouse may elect, that the

accumulation with interest of the Member’s regular contributions in excess of those

contributions required to offset 50% of such pension be:

a) Used to provide additional pension; or

b) transferred to a Retirement Savings Plan; or

c) refunded in a lump sum.

6.03 Amount of Pension Payable to Members in respect of Service prior to September

30, 2013

The pension payable to Members in respect of Service prior to September 30, 2013,

shall not be less than the pension that would have been payable to Members in respect

of such Service prior to the amendments to the definitions of Average Earnings and the

updated pension formula that took effect on that date.

6.04 Amount of Pension Payable to Members Who Retired from October 1, 2011 to

September 30, 2013

Subject to Section 6.03, the pension payable to Members who retired from October 1,

2011 to September 30, 2013 will be adjusted to consider the amendments to the

definition of Average Earnings and the updated pension formula that took effect on

September 30, 2013.

SECTION 7 FORMS OF PENSION PAYMENTS



7.01 Normal Form Of Pension

a) Member without Spouse

For a Member who does not have a Spouse on their retirement date, the pension

will be payable in the form of a monthly annuity commencing on the retirement

date and continuing for the lifetime of the Member. However, should the Member

die after commencement of annuity payments but before 120 monthly payments

have been made, the payments will be continued to the Member’s Beneficiary

until 120 monthly payments have been made.

b) Member with a Spouse

For a Member who has a Spouse on their retirement date, the pension will be

payable in the form of a monthly annuity commencing on the retirement date and

continuing for the lifetime of the Member with 60% of the monthly annuity

payable to their Spouse as co-annuitant during the Spouse’s lifetime after the

death of the Member. This pension shall be the Actuarial Equivalent of the

pension described in Section 7.01 a).

7.02 Spousal Waiver

The Member and the Spouse of the retiring Member may jointly waive the Spouse's

entitlement under Section 7.01 b) in writing, in the prescribed form required by the

Rules and Legislation. Such waiver is not effective unless the written waiver or

certified copy is delivered to the Bureau within the period of 12 months immediately

preceding the pension commencement date. In the event the Member elects, pursuant

to section 7.03, an optional form of monthly annuity which does not reduce more than

40% on the Member’s death, a spousal waiver will not be required.

7.03 Optional Forms Of Pension

A Member who does not have a Spouse may elect an optional form of annuity prior to

their actual retirement date. A Member who has a Spouse may elect an optional form

of annuity prior to their actual retirement date subject to the spousal waiver provisions

of Section 7.02. The optional form of annuity shall be Actuarial Equivalent to the

normal form of annuity. Any optional form of annuity must conform with the

applicable Rules and Legislation and in particular:

a) life contingencies must be involved;

SECTION 7 FORMS OF PENSION PAYMENTS



b) no guarantee period shall exceed 15 years; and

c) in the case of a joint and last survivor annuity, there shall be no guarantee of

payments on the life of the survivor other than for any unexpired term of the

guarantee on the first life.

7.04 Commutation of Small Pensions

The Plan shall provide for payment to a Former Member of the Commuted Value of

their pension if the annual pension payable at the normal retirement date is less than

2% of the YMPE in the year that the Former Member terminated their employment.

SECTION 8 REGULAR CONTRIBUTIONS



8.01 Member Regular Contributions

Each Member will contribute a yearly amount equal to 6.0% of the portion of their

Earnings up to the YMPE and 7.5% of the balance, if any, of their Earnings. Such

regular contributions shall be deducted by payroll deductions.

8.02 Bureau Contributions

Contributions of the Bureau on behalf of Members shall be made at the rate

determined by the Actuary to be sufficient, together with the Members regular

contributions, to provide for payment of the benefits required to be paid by the Plan.

8.03 Surplus

Subject to the paragraph below, in the event that a surplus is identified as a result of an

actuarial valuation as performed by the Actuary, the Bureau and the bargaining agent

which represents the Employees of the Bureau agree that any such surplus shall be

used for the benefit of the Members or shall be allowed to accumulate in the Plan.

In the event that a surplus in excess of the limits defined under the provisions of the

Income Tax Act is identified as a result of an actuarial valuation as performed by the

Actuary, the method of disposal of such excess surplus shall be agreed upon by the

Bureau and the bargaining agent which represents the Employees of the Bureau. This

may or may not include enhancements to the Plan or a shared contribution holiday,

subject to the provisions of the Income Tax Act and to the terms of the Collective

Agreement then in effect.

8.04 Reduction in benefits and Return of Contributions

If the Plan is found to be in violation of the maximum pension rule or the pension

adjustment limits, the Plan may be amended at any time to reduce the benefits

provided under the Plan provisions with respect to a Member, and may also permit the

return of contributions to a Member or to the Bureau, as the case may be, to avoid

revocation of the registration of the Plan.

SECTION 9 ADDITIONAL CONTRIBUTIONS



9.01 Additional Contributions

A Member may contribute by payroll deductions any amount which is in excess of

their regular contributions and which is in respect of current Service. Any additional

contributions shall be subject to the provisions of the Income Tax Act.

9.02 Change Of Amount of Additional Contributions

On each January 1, a Member may change the amount of their additional contributions.

However, notice of a Member’s desire to change their rate of additional contributions

must be given to the Bureau in writing not later than one month before the date of the

change.

9.03 Benefits from Additional Contributions

Upon death, withdrawal or retirement, the additional contributions accumulated with

interest to the date of such event will be applied to provide additional pension. In lieu

of the aforesaid pension, a cash payment may be elected.

SECTION 10 DEATH BENEFITS



10.01 Beneficiary

If the Member has a Spouse on their date of death, the death benefit is payable to the

Member’s Spouse. If the Member does not have a Spouse on their date of death, the

death benefit is payable to a Beneficiary designated by the Member and if there is no

designated Beneficiary, to the Member’s estate. Subject to any statutory restrictions,

the Member may from time to time change their Beneficiary. Any appointment or

change of Beneficiary must be in writing, signed by the Member, and filed with the

Bureau.

10.02 Spousal Waiver

The Member and their Spouse may jointly waive the Spouse’s right to the death

benefit, in writing, in the prescribed form required by the Rules and Legislation. The

spousal waiver form must be filed with the Bureau. Upon completion and filing of the

spousal waiver form, the death benefit will be payable to the Member’s designated

Beneficiary or estate.

10.03 Amount Of Death Benefit Before Retirement

The amount of death benefit is the sum of:

a) the accumulation with interest of the Member’s regular contributions;

b) in respect to benefits accrued prior to January 1, 1987 – if the Member had

completed at least 6 years of Service, of the Commuted Value of the excess of:

i) the amount of pension accrued on the Member’s behalf under the provisions

of Section 6 to the date of termination of their Service; over

ii) the amount of pension provided by the accumulation with interest of their

regular contributions;

and

c) in respect of benefits accrued on and after January 1, 1987 an amount equal to the

Commuted Value.

10.04 Payment Of Death Benefit

SECTION 10 DEATH BENEFITS



a) To the Spouse:

The death benefit shall be payable in one of the following forms as elected by the

Spouse:

i) a cash payment; or

ii) a direct transfer to another registered pension plan, to a Retirement Savings

Plan or to an insurance company to purchase an annuity.

A pension to a Spouse under this Section 10 will be payable in the form of an

immediate or deferred annuity which involves life contingencies and under which

any guarantee period may not exceed 15 years. The deferred annuity will

commence prior to the date the Spouse attains age 65. In the event the Spouse is

age 65 or over on the Member’s date of death, the Spouse must receive an

immediate annuity.

A transfer under this Section 10 must be elected by the Spouse within 90 days

after the Spouse has been notified of their entitlement and options available under

the Plan.

b) To the designated Beneficiary or the estate:

The death benefit shall be payable as a cash payment.

The payment or transfer under this Section 10.04 will be made within 60 days after the

required documentation has been received by the Bureau.

10.05 50% Rule

The Commuted Value of the pension provided under Section 10.03 c) is subject to the

50% Rule as defined in Section 6.

10.06 Amount Of Death Benefit After Retirement

The death benefit, if any, will depend on the form of pension elected by the Member.

SECTION 11 WITHDRAWL BENEFITS



11.01 Withdrawal Benefits

If a Member terminates Service before retirement, they will receive a pension

commencing on their normal retirement date equal to the amount of pension

accrued on their behalf in accordance with the provisions of Section 6, up to the

Member’s date of termination of Service.

11.02 Transfer of Withdrawal Benefits

Notwithstanding Sections 11.01 and 11.02 above, a Member may elect to directly

transfer the Commuted Value of their pension or the cash payment to another

registered pension plan, to a Retirement Savings Plan or to an insurance company to

purchase a deferred annuity. The transfer equal to the portion of the benefit which is

available as a cash payment will be made on a non Locked-in basis. The transfer equal

to the portion of the Member’s benefit which is not available as a cash payment will be

made on a Locked-in basis. Such Locked-in transfer will only be made where the

transferee agrees to administer the transfer amount in accordance with the provisions

of the Rules and Legislation.

A transfer under this Section 11.03 must be elected by the Member within 90 days

after the Member has been notified of their entitlement and options available under the

Plan.

The transfer under this Section 11.03 will be made within 90 days after the required

documentation has been received by the Bureau.

Notwithstanding the provisions of this Section 11.03, a Member upon attaining the

earliest retirement age under the provisions of Section 5.03, will not be eligible to

transfer the Commuted Value of their pension as provided in this Section. Such

Member will be entitled to receive the pension benefit payable from the Plan, adjusted

in accordance with the age of the Member as provided in Section 5.

11.03 50% Rule

The Commuted Value of the pension provided under Section 11.02 b) is subject to the

50% Rule as defined in Section 6.

11.04 Early Commencement Of Deferred Pension

SECTION 11 WITHDRAWL BENEFITS



The Member may elect that any deferred pension provided under this Section 11

commence on their early retirement date in accordance with Section 5.03.

11.05 Grow-in Benefits

The provisions respecting “grow-in” of benefits under section 74 of the Pension

Benefits Act, RSO 1990, as amended and its related regulations, as those provisions

may be amended from time to time, including the wider application of the rule

subsequent to June 30, 2012, must be considered, and applied, if required, when

calculating the benefits of terminating Members under the provisions of the Plan.

This Section 11.05 shall in no case provide any right or benefit that would not

otherwise be required to be provided by the Pension Benefits Act, RSO 1990.

SECTION 12 INTEREST



12.01 Interest On Regular Contributions

The rate of interest to be applied to the regular contributions of the Member is equal to

the rate of interest calculated on the basis of the average of the yields of 5-year

personal fixed term chartered bank deposit rates, published in the Bank of Canada

Review of CANSIM Series V122515. The rate of interest shall be calculated and

applied not less frequently than once every 12 months.

12.02 Interest On Additional Contributions

The rate of interest to be applied to the additional contributions of the Member made

before January 1, 1988 shall be the rate specified in section 12.01.

The rate of interest to be applied to the additional contributions of the Member made

on and after January 1, 1988 shall be the rate equal to the rate of return that can be

reasonably attributed to the operation of the pension fund.

SECTION 13 ASSIGNMENTS



13.01 Assignment Of Rights

Unless permitted in this Section 13, no pension benefit provided under the Plan is

capable of being assigned, charged, anticipated or given as security or confers on a

Member, that person’s personal representative or dependant or other person any right

or interest therein that is capable of being assigned, charged, anticipated or given as

security except as otherwise provided under and in accordance with the Rules and

Legislation. Neither a Member nor any Beneficiary may commute or surrender any

payment, benefit or installment to which he may be entitled hereunder.

13.02 Marriage Breakdown

Upon marital breakup, a Member may assign part of their pension benefit to their

Spouse in a domestic contract, a family arbitration award or in an order under Part I of

the Family Law Act.

A domestic contract or order as stated above made prior to January 1, 2012 is not

effective to require payment of a pension benefit before the earlier of:

a) the date on which payment of the pension benefit commences; and

b) the normal retirement date of the Member or Former Member.

A Spouse on whose behalf a certified copy of a domestic contract or order made prior

to January 1, 2012 is given to the Administrator has the same entitlement, on

termination of Service by the Member, to any option available under the Plan in

respect of the Spouse’s share of the pension benefit as the Member named in the

domestic contract or order has in respect of their pension benefit.

A Spouse on whose behalf a certified copy of a domestic contract, family arbitration

award or order made on and after January 1, 2012 is given to the Administrator shall

receive an immediate settlement or division of the Spouse’s entitlements as required

by Rules and Legislation.

The value of the pension benefits remaining on behalf of the Member after such

marital breakup will be recalculated in accordance with the Rules and Legislation.

The Spouse’s share will not exceed 50% of the Commuted Value or imputed value, as

applicable, of the Member’s pension benefit.

SECTION 14 PROOF OF AGE



14.01 Proof of Age

Proof of the Member’s age, Spouse’s age and the age of any person who may be

designated a co-annuitant will be required before commencement of the pension

payments. Any pension payments missed due to late submission of acceptable proof

of age will be paid retroactively in a lump sum. The lump sum payment will include

interest.

SECTION 15 SHORTENED LIFE EXPECTANCY



15.01 Eligibility

This shortened life expectancy provision shall be available to the following Members:

(a) Active Members, from all jurisdictions;

(b) Deferred vested Members;

(c) Pensioners; and

(d) Spouses entitled to a deferred pension; treated in same manner as deferred vested

Members.

15.02 Payment option

The Plan shall permit the payment of the value of a pension or deferred pension in

circumstances of shortened life expectancy as may be prescribed, if the conditions

specified in Provision 15.04 are satisfied.

The value of a pension or deferred pension in circumstances of shortened life

expectancy is to be calculated in accordance with the Canadian Institute of Actuaries

(the "CIA") Standard of Practice for the Computation of the Commuted Value of

Pension Benefits Due to Reduced Life Expectancy. Notwithstanding the above, if the

Rules and Legislation prescribes another calculation method, that other method shall

be used.

15.03 Shortened Life Expectancy

The following are the relevant circumstances of shortened life expectancy:

An eligible Member, as described in Provision 15.01, has an illness or physical

disability that is likely to shorten their life expectancy to less than two years.

15.04 Necessary conditions

The following conditions shall be satisfied before the payment of the value of a

pension or deferred pension can be paid out of the Plan:

(a) The Member shall submit an application in the form prescribed to the

Administrator for the withdrawal of the value of the Member's pension or deferred

pension.

(b) The application shall be signed by the Member and must be accompanied by the

following documents:

SECTION 15 SHORTENED LIFE EXPECTANCY



(i) A statement satisfactory to the Administrator signed by a physician who is

licensed to practice medicine in a jurisdiction in Canada that, in the opinion of

the physician, the Member has an illness or physical disability that is likely to

shorten their life expectancy to less than two years.

(ii) A declaration described in Provision 15.05 about a Spouse.

(c) The Funding Agent shall review and approve each application on its own merits.

15.05 Spouse Declaration

Any of the following documents constitutes a declaration about a Spouse:

(a) A statement signed by the Member's Spouse, if any, that the Spouse consents to

the withdrawal.

(b) A statement signed by the Member attesting to the fact that they do not have a

Spouse.

(c) A statement signed by the Member attesting to the fact that the Member is living

separate and apart from their Spouse on the date the Member signs the application

to make the withdrawal provided that at the time of payment of the value of the

pension or deferred pension, the Member is living separate and apart from their

Spouse.

A declaration about a Spouse is a nullity if it is signed by the Member or their Spouse

more than 60 days before the Administrator.

15.06 Document Receipt

When the Administrator receives a required document, the Administrator shall give the

Member a receipt stating the day on which it was received.

SECTION 16 GENERAL PROVISIONS



16.01 Rights to Information

The Bureau shall provide:

a) each Employee eligible to join the Plan:

i) a written explanation of the provisions of the Plan and of any applicable

amendments thereto;

ii) a written explanation of the Employee’s rights and obligations in respect of

the Plan; and

iii) any other information prescribed by the Rules and Legislation;

within sixty days:

iv) after the date on which the Plan is established, to each Employee who is

eligible to join on that date;

v) before the date on which any other Employee is likely to become eligible; or

vi) after an amendment is registered, to each Member or other person entitled to

payment form the fund and who is affected by the amendment.

b) each Member of the Plan, within six months after the end of each calendar year, a

written statement describing the Plan and showing the value of the Member’s

benefit.

c) each Member of the Plan an opportunity to examine and to photocopy the Plan

documents as prescribed in the Rules and Legislation at least once in each year.

d) each Member a written statement of the Member’s pension and other benefits

payable under the Plan within 30 days after the date of the Member’s retirement,

death or termination of membership or Service.

16.02 Advisory Committee

The operation and administration of the Plan shall be the responsibility of the Pension

Advisory Committee (P.A.C.).




The P.A.C. shall be a permanent sub-committee of the Bureau’s Central Services and

Audit Committee.

The Board of Directors shall appoint all members of the P.A.C. with the exception of

the Union representatives.

The Union representative(s) will be appointed by the Union.

The members of the P.A.C. shall consist of the following:

Union Representatives (two)

Board of Directors Representative (two)

Executive Director / Associate Executive Director

Director of Finance

Director of Human Resources (Non-voting participant)

Representative of the Retirees (Non-voting participant)

No less than four times a year, the P.A.C. shall be requested and empowered to:

a) review the holdings and investment performance of the Pension Fund and make

appropriate changes as required under the guidance of the asset mix policy;

b) monitor and make recommendations to the Bureau respecting the administration

of the Plan; and

c) promote awareness and understanding of the Plan on the part of Members of the

Plan and persons receiving pension benefits under the Plan.

The P.A.C. shall report any changes or amendments made to the Plan to the Central

Services and Audit Committee for presentation to the Board of Directors.

The Board of Directors shall have the power to appoint an Administrator, Consultant,

Investment Manager and Custodian, as the members in their discretion may find

necessary or expedient in the performance of their duties.

The P.A.C. shall have the power to appoint an Actuary, Accountant, such Legal

Counsel and clerical assistance as the members in their discretion may find necessary

or expedient in the performance of their duties.

The P.A.C. shall pay from the Fund all reasonable expenses of collecting the

contributions and administering the Fund and Plan.




Meetings of the P.A.C. may be held at such time and place as the Committee may

agree upon. A minimum of four meetings per year should be held.

The presence of one representative from the Board of Directors, one representative

from the Management of the Bureau and one representative from the Union shall

constitute a quorum at such meetings.

16.03 Annuity Factors

The annuity factors used to determine the amount of pension payable under this Plan

will not differentiate as to the sex of the Member or Former Member or of that

person’s Spouse. A benefit amount which is transferred out of this Plan will stipulate

that the pension provided by such amount will not differentiate as to the sex of the

Member, Former Member or the Spouse of that person.

16.04 Appropriate Pension Adjustment Limits

The Pension Adjustment (PA) will be calculated in accordance with the terms of the

Income Tax Act. For each Plan Year, the Pension Adjustment of a Member shall not

exceed the lesser of:

a) the money purchase limit, as defined by the Income Tax Act, applicable to

registered pension plans for that year; and

b) 18% of the Member’s Earnings.

SECTION 17 FUNDING OF BENEFITS



17.01 Funding Of Benefits

The funding of pension benefits, deferred life annuities and other benefits required to

be paid under the terms of the Plan shall be adequate to provide for payment of such

benefits in accordance with the tests for solvency and the time limits required by the

Rules and Legislation.

17.02 Use Of Contributions

All contributions whether by the Member or the Bureau are used for the exclusive

benefit of Members, retired Members or their Beneficiaries.

The Bureau will remit the Member contributions to the Funding Agent not later than

30 days after the end of the period in respect of which such contributions were made.

17.03 Investments

The investments and loans of the Plan shall be restricted to the securities and loans

prescribed by the Rules and Legislation.

17.04 Expenses Of The Plan

All expenses with respect to investment management, the operation and administration

of the Plan shall be payable from the pension fund unless otherwise paid by the

Bureau.

SECTION 18 MAXIMUM ANNUAL PENSION



18.01 Maximum Annual Pension

The maximum annual pension payable to a Member, Former Member, Member’s

Spouse at retirement, termination of employment or termination of the Plan shall not

exceed the Defined Benefit Limit as defined in the Income Tax Act.

CHANGE OR

SECTION 19 DISCONTINUANCE OF THE PLAN



19.01 Change Or Discontinuance Of The Plan

Any change in the Plan, including the termination of the Plan, requires the consent of

the bargaining agent, if any, which represents the Employees of the Bureau at the time

the request for a change is made. At no time, however, may any part of the

contributions made by the Members or the Bureau be used for purposes other than for

those provided for in the Plan, or will any change to the Plan adversely affect the

benefits to which the Members are entitled hereunder on the effective date of such

change.

Notwithstanding the provisions of this Section, if upon the completion of the

application of assets as prescribed in the Pension Benefits Act, RSO 1990, any such

assets remain unapplied, the balance of the unused assets shall upon termination or

winding up of the Plan, be allocated on an equitable basis amongst the Members,

subject to the prior written consent of the Financial Services Commission of Ontario

and the Canada Revenue Agency.

Notwithstanding the provisions of this Section, upon termination or winding up of the

Plan in whole or in part, the assets of the Plan shall be applied, to the extent not

already applied, towards the provision of the pension benefits prescribed in the

Pension Benefits Act, RSO 1990, and no assets of the Plan shall be applied toward the

provision of any benefit until the Financial Services Commission of Ontario has

approved the report filed as prescribed in the Act except those assets required to make

periodic payments to Members and refund Member’s contributions to Members in

accordance with the Plan.

On Plan termination, the Member’s benefit may be taken in cash, transferred or used to

purchase an annuity as provided and in accordance with the provisions of Section 11.

Documents

RETIREMENT PLAN FOR EMPLOYEES OF YOUTH ......Retirement Plan for Employees of Youth Services of Ottawa effective July 1, 1972 reflecting all updates up to October 1, 2013. Plan terms