Air Canada Pension Plan Funding Regulations, 2014 (SOR/2013-244)

Marginal note:Discontinuance of funding — notice to the Superintendent

• 6 (1) If, on or before the earlier of the day on which the actuarial report is filed with the Superintendent for a plan year and June 30 of that plan year, Air Canada provides written notice to the Superintendent indicating its choice to discontinue funding of all the Air Canada pension plans under these Regulations for that plan year, these Regulations, except subsections 1(1), 3(3) and (4), this section and section 12, cease to apply to the plans on December 31 of the previous plan year.

• Marginal note:Discontinuance of funding — notice to members and beneficiaries

  (2) Within 30 days after notice is provided in accordance with subsection (1), Air Canada must notify all plan members and beneficiaries in writing indicating that it has chosen to discontinue funding of all the Air Canada pension plans under these Regulations and indicating the plan year for which its choice will begin to apply.

• Marginal note:Special payment — notice

  (3) Each plan must be funded for the plan year in which the notice was provided in accordance with subsection (1) by an amount that must be paid within 30 days after that notice has been provided and is equal to the amount determined

  • (a) in the case where the aggregate amount of the solvency deficiencies of all plans is equal to or greater than the amount determined by the formula set out in A, by the formula

    A × (B/C)

    where

    A

    is the amount obtained by the formula

    ($200,000,000 × D) – [($150,000,000 x D) + E]

    where

    D

    is the number of plan years that are after the 2013 plan year, excluding the year in which the notice is provided, and

    E

    are the amounts paid for those plan years that are in addition to the amounts required to be paid in accordance with subsection 5(1),

    B

    is the amount of the solvency deficiency of the plan, and

    C

    is the aggregate amount of the solvency deficiencies of all plans; or

  • (b) in the case where the aggregate amount of the solvency deficiencies of all plans is less than the amount determined by the formula set out in G, by the formula

    F + (G – H) x I/J

    where

    F

    is the amount of the solvency deficiency of the plan,

    G

    is the amount obtained by the formula

    ($200,000,000 × K) – [($150,000,000 x K) + L]

    where

    K

    is the number of plan years that are after the 2013 plan year, excluding the year in which the notice is provided, and

    L

    are the amounts paid for those plan years that are in addition to the amounts required to be paid in accordance with subsection 5(1),

    H

    is the aggregate amount of the solvency deficiencies of all plans,

    I

    is the amount of the solvency liabilities of the plan, and

    J

    is the aggregate amount of the solvency liabilities of all plans.

• Marginal note:Interest rate

  (4) If an employer fails to make the payment to the plan that is referred to in subsection (3) within the period that is set out in that subsection, the amount that must be paid in accordance with that subsection is to bear interest at the rate that was used to determine the solvency liabilities of the plan.

• Marginal note:Average solvency ratio

  (5) In respect of the plan year in which the notice under subsection (1) has been provided, the average solvency ratio for each plan must be adjusted by increasing the solvency assets by the amount determined under subsection (3).