Air Canada Pension Plan Funding Regulations, 2009
Air Canada Pension Plan Funding Regulations, 2009
P.C. 2009-1188 2009-07-24
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 9(1), paragraph 10.1(2)(b)Footnote a, subsection 12(3), paragraph 28(1)(b)Footnote b and section 39Footnote c of the Pension Benefits Standards Act, 1985Footnote d, hereby makes the annexed Air Canada Pension Plan Funding Regulations, 2009.
1. (1) The following definitions apply in these Regulations.
- “Air Canada pension plan”
“Air Canada pension plan” or “plan” means a defined benefit plan that was established before April 1, 2009 in respect of which Air Canada is the administrator. (régime de pension d’Air Canada)
“beneficiary” means a member or a former member of the plan or any other person who is entitled to pension benefits under the plan except
(a) a former member who has transferred all of their pension benefit credits under section 26 of the Act; and
(b) a former member for whom the administrator has purchased an immediate or deferred life annuity. (bénéficiaire)
- “solvency deficit”
“solvency deficit” means the amount by which the liabilities of a plan, determined on the basis that the plan is terminated or on a basis that is certified by an actuary to be reasonably approximate to a termination basis and taking into account any significant increases or decreases in benefits to the plan members as a result of the termination, exceed the aggregate of the value of the assets of the plan, determined on the basis of market value. (déficit de solvabilité)
- “solvency ratio”
“solvency ratio” means the lesser of one and the ratio of the assets of the plan as determined in accordance with the definition of “solvency deficit” to the liabilities of the plan as determined in accordance with that definition, based on the most recent actuarial report filed with the Superintendent pursuant to section 12 of the Act. (ratio de solvabilité)
- “special payment”
“special payment” means a payment made under section 7. (paiement spécial)
(2) Except as otherwise provided in these Regulations, words and expressions used in these Regulations have the same meaning as in the Pension Benefits Standards Regulations, 1985.
2. These Regulations apply in respect of Air Canada pension plans.
3. The funding of a plan shall be considered to meet the standards for solvency if the funding is in accordance with these Regulations.
INFORMATION TO BE FILED WITH SUPERINTENDENT
4. A plan may be funded in accordance with these Regulations if the following information is filed by the administrator with the Superintendent no later than August 14, 2009:
(a) an actuarial report that values the plan as at January 1, 2009;
(b) a statement by Air Canada confirming that the collective bargaining agents have not objected to the funding of the solvency deficits of the plan in accordance with these Regulations on behalf of more than one third of the members of the plans who are represented by collective bargaining agents and that less than one third of all other beneficiaries have objected in writing to that funding; and
(c) a certified copy of a resolution of the board of directors of Air Canada agreeing to the funding of the plan in accordance with these Regulations.
5. If the information referred to in section 4 is filed with the Superintendent in respect of a plan,
(a) subsections 8(1) and (2) of the Act do not apply in respect of the plan except in relation to
(i) moneys in the pension fund,
(ii) amounts deducted by the employer from members’ remuneration but not remitted to the pension fund, and
(iii) contributions and special payments that are accrued and due to the plan but not remitted to the pension fund in accordance with section 8;
(b) section 9 of the Pension Benefits Standards Regulations, 1985 does not apply in respect of the plan; and
(c) section 18 and paragraph 21(d) of the Air Canada Pension Plan Solvency Deficiency Funding Regulations do not apply in respect of the plan.
6. A plan shall be funded in each plan year by a contribution equal to the normal cost of the plan.
7. (1) No special payment is required to be made in respect of the period beginning April 1, 2009 and ending December 31, 2009 and in respect of the 2010 plan year.
(2) The amount payable to each plan for a plan year is equal to the amount determined by the formula
A × B/C
- is the lesser of
(a) the maximum past service contribution permitted under the Income Tax Act for the plan year, and
(b) one of the following amounts:
(i) in respect of the 2011 plan year, $150,000,000,
(ii) in respect of the 2012 plan year, $175,000,000, or
(iii) in respect of the 2013 plan year, $225,000,000;
- is the amount of the solvency deficit of the plan as at January 1 of the plan year; and
- is the aggregate amount of the solvency deficits for all plans as at January 1 of the plan year.
(3) An actuarial gain shall not be used to reduce the amount of any special payments due to the pension fund.
8. Payments to a plan shall be made as follows:
(a) the normal cost contributions shall be paid as an equal percentage of the anticipated remuneration to be paid to the members during the plan year and shall be paid monthly and not later than 30 days after the end of the month;
(b) the special payments shall be made in equal monthly instalments, with each instalment being due 30 days after the end of each month;
(c) the contributions of plan members shall be remitted to the administrator not later than 30 days after the end of the period in respect of which contributions were deducted; and
(d) the administrator shall immediately pay into a plan any amount remitted to the administrator.
9. For the purpose of paragraph 10.1(2)(b) of the Act, the prescribed solvency ratio level is the solvency ratio calculated on the basis of the most recent actuarial report filed in respect of the plan with the Superintendent in accordance with subsection 12(3) of the Act.
RIGHTS TO INFORMATION
10. The following information is prescribed for the purposes of subparagraph 28(1)(b)(iv) of the Act:
(a) the amount of the solvency deficit as shown in the last actuarial report filed with the Superintendent;
(b) the fact that the plan is being funded in accordance with these Regulations;
(c) the amount of payments, other than normal cost, that was required to be paid to the plan in the plan year covered by the statement;
(d) the amount of special payments that would have been paid to the plan in the year covered by the statement if the plan had been funded in accordance with Part 1 or 2 of the Solvency Funding Relief Regulations, 2009 and section 9 of the Act;
(e) if the solvency ratio of the plan is less than one,
(i) the value and description of the ratio,
(ii) a description of the measures the administrator has implemented or will implement to bring that ratio to one, and
(iii) the extent to which the member’s benefit would be reduced if the plan were terminated and wound up with that solvency ratio; and
(f) if the solvency ratio is greater than or equal to one, a statement that the plan is fully funded based on the most recent solvency ratio of the plan.
CEASE TO BE IN FORCE
11. These Regulations cease to be in force on January 30, 2014.
COMING INTO FORCE
12. These Regulations come into force on the day on which they are registered.
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