• 17. (1) Air Canada may elect to fund a plan, beginning on the first day of a plan year, in accordance with this Part by giving written notice of the election to the Superintendent not later than four months after the beginning of that plan year.

• (2) The notice of election referred to in subsection (1) shall indicate whether or not the plan has a surplus as at the first day of the plan year in respect of which the election is made.

18. If the election referred to in subsection 17(1) is made in respect of a plan, section 9 of the Pension Benefits Standards Regulations, 1985 applies in respect of that plan except as otherwise provided in this Part.

19. For the purposes of this Part, a surplus in respect of a plan shall be determined in the manner prescribed by subsection 16(1) of the Pension Benefits Standards Regulations, 1985 in respect of a plan that has been fully terminated and, in making that determination, the value of the assets of the plan shall be determined on the basis of market value.

20. If the election referred to in subsection 17(1) is made in respect of a plan that has a surplus as at the first day of the plan year in respect of which the election is made, Part 1 continues to apply in respect of that plan, except that sections 4, 6 to 9 and 11 to 15 cease to apply in respect of the plan on that day.

21. If the election referred to in subsection 17(1) is made in respect of any of the 2005 to 2009 plan years of a plan that does not have a surplus as at the first day of the plan year in respect of which the election is made, Part 1 continues to apply in respect of that plan, except that

• (a) Air Canada shall have an actuarial report prepared in respect of the plan as at that day;

• (b) for the purpose of that actuarial report, the present value of the special payments referred to in sections 9 and 13 shall be zero;

• (c) the solvency deficiency disclosed by the actuarial report, if any, shall be considered to have emerged as at the valuation date of the actuarial report;

• (d) the special payments required to be made to the pension fund in accordance with sections 9 and 13 shall continue to be made until the first special payment required to fund the solvency deficiency referred to in paragraph (c) is remitted to the pension fund; and

• (e) except as otherwise provided in paragraph (d), sections 4, 6 to 9 and 11 to 15 cease to apply in respect of the plan on the first day of the plan year in respect of which the election is made.

• 22. (1) For the purposes of this section, paragraph (a) of the definition “solvency deficiency” in subsection 9(1) of the Pension Benefits Standards Regulations, 1985 shall be read as follows:

  • (a) the value of the assets of the plan, determined on the basis of market value,

• (2) Subject to section 23, if the election referred to in subsection 17(1) is made in respect of any of the 2010 to 2013 plan years of a plan that does not have a surplus as at the first day of the plan year in respect of which the election is made, Part 1 continues to apply in respect of that plan, except that

  • (a) a solvency deficiency that is required to be funded in accordance with section 9 or 13 shall not be reamortized;

  • (b) the present value of the special payments referred to in sections 9 and 13 shall be included for the purpose of paragraph (d) of the definition “solvency deficiency” in subsection 9(1) of the Pension Benefits Standards Regulations, 1985; and

  • (c) section 4 and 6, subsection 7(4) and sections 8, 12 and 15 cease to apply in respect of that plan on the first day of the plan year in respect of which the election is made.