Introduction

1.  This Schedule sets out the agreement of the parties to the Agreement to the division of the Plan through the establishment of a new registered pension plan (referred to herein as “Plan 2000”) and the transfer of assets and liabilities, including a pro rata share of the actuarial surplus under the Plan, to Plan 2000.

2.  For greater certainty, all capitalized terms used in this Schedule D that are not defined herein shall have the same meaning as in the main body of the Agreement.
 

Division of the Plan

3.  The University shall:

a.  adopt and apply for the registration of Plan 2000 under the Pension Benefits Act (Ontario) and the Income Tax Act (Canada);

b.  amend the Plan to provide for termination of participation therein by Active Consenters and Inactive Consenters and to provide for the transfer of assets and liabilities from the Plan to Plan 2000 in accordance with this Schedule D.

4.  On the effective date of Plan 2000, the terms of Plan 2000 that apply to Active Consenters and the Inactive Consenters shall, subject to applicable law and the requirements of the applicable regulatory authorities, be the same as the terms of the Plan that applied to the Active Consenters and the Inactive Consenters immediately prior to the effective date of Plan 2000 except that Plan 2000 shall contain such terms as may be necessary or desirable to implement the distribution of Surplus in accordance with the Agreement.
 

Transfer of Assets and Liabilities from the Plan to Plan 2000

5.  On or as soon as practicable after the effective date of Plan 2000, the Actuary shall determine the amount of assets required to satisfy all liabilities under the Plan in respect of the benefits that have accrued to the Active Consenters, the Inactive Consenters and their respective beneficiaries as of the effective date of Plan 2000, together with a pro rata share of the actuarial surplus under the Plan determined as at July 1, 2000 (“Transfer Amount”) using the actuarial assumptions used to calculate the Going Concern Liabilities.

6.  The Actuary shall consult with the Committee’s Actuary in relation to the preparation of any report to be filed with the Superintendent in relation to the creation of Plan 2000 (the “Plan 2000 Report”), the transfer of assets from the Plan to Plan 2000 (the “Plan Split Report”), and the determination of the surplus in Plan 2000 as at the effective date of Plan 2000.

7.  If there is any dispute between the Actuary and Committee’s Actuary in relation to the Plan 2000 Report, the Plan Split Report, the determination of the going concern Plan 2000 surplus on the effective date of Plan 2000 and such dispute cannot be resolved between them within 30 days of the dispute arising, or such other period as may be agreed to by the University and the Committee, the issue or issues in dispute shall be referred to and settled with final and binding effect by an independent actuary mutually acceptable to the University and the Committee.  In the event that the University and the Committee are unable to agree, within 60 days of the dispute arising, or such other period as may be agreed to by the University and the Committee, upon the independent actuary to be retained to make such final and binding determination, the independent actuary who shall make such determination shall be appointed by the President of the Canadian Institute of Actuaries on application by either the University or the Committee.  The costs, fees and expenses that are associated with and result from the appointment of the independent actuary shall be paid from the Surplus.

8.  As soon as practicable after the determination of the appropriate Transfer Amount and subject to the receipt by the University of such regulatory approvals as may be required, the University shall cause the funding agent of the Plan to transfer the Transfer Amount, adjusted in accordance with section 9 hereof, from the effective date of Plan 2000 to the date of such transfer (the “Transfer Date”), or such lesser or greater amount as may be approved by the regulatory authorities, to the funding agent of Plan 2000.

9.  The Transfer Amount shall be adjusted from the effective date of Plan 2000 to the Transfer Date by contributions and disbursements in respect of the members of the Surplus Sharing Group and the actual rate of return (net of investment expenses) earned by the assets held in connection with the Plan between the effective date of Plan 2000 and the Transfer Date.

To Schedule E

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MUFA - pdk
August 8, 2001