38.1. A pension plan may be amended for the purpose of creating a separate component with regard to service completed by the affected members as of the effective date of the amendment. That component is called the “new component”.
The effective date of the amendment is called the “date of segregation”. It cannot be prior to the end date of the second last fiscal year preceding the effective date of the amendment establishing the new component. Where the amendment requires that a special current service contribution be made with regard to the new component, the date of segregation must be the same as the end date of a fiscal year of the plan, except where the plan is subject to a complete actuarial valuation as at the date of segregation.
The text of the plan shall indicate, with regard to the new component, any information required under section 14 of the Act that differs from the information for the rest of the plan with respect to its purport or the process whereby it is amended.
Notwithstanding section 21.2 of the Act, provisions regarding the allocation of the surplus assets in the event of termination must be provided for, as of the date of segregation, with regard to the new component of the plan.