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• 5 (1) Despite subsection 9(4) of the Pension Benefits Standards Regulations, 1985 and section 13 of the Air Canada Pension Plan Solvency Deficiency Funding Regulations, a solvency deficiency, as defined in subsection 9(1) of the Pension Benefits Standards Regulations, 1985, of a plan that emerged at the end of the 2008 plan year may be funded in accordance with section 9 of those Regulations but the remittance to the pension fund of a portion of the special payments determined in accordance with those Regulations may be made in accordance with subsection (2) or (3), as the case may be.

• (2) If the actuarial report that values the plan as at the end of the 2008 plan year indicates that there is a 2008 solvency deficiency and that there is a solvency deficiency as defined in subsection 9(1) of the Pension Benefits Standards Regulations, 1985, a portion of the special payments determined in accordance with subsection 9(4) of those Regulations or section 13 of the Air Canada Pension Plan Solvency Deficiency Funding Regulations may be paid to the pension fund as if the 2008 solvency deficiency were funded by special payments sufficient to liquidate the 2008 solvency deficiency by equal annual payments over a period not exceeding 10 years from the day on which the 2008 solvency deficiency emerged.

• (3) If the actuarial report that values the plan as at the end of the 2008 plan year indicates that there is no 2008 solvency deficiency but that there is a solvency deficiency as defined in subsection 9(1) of the Pension Benefits Standards Regulations, 1985, the special payments determined in accordance with subsection 9(4) of those Regulations or section 13 of the Air Canada Pension Plan Solvency Deficiency Funding Regulations may be paid to the pension fund provided that those special payments result in the solvency shortfall being funded and liquidated over a period not exceeding 10 years from the day on which the solvency shortfall was calculated.

• (4) For the purposes of subsection 8(1) of the Act, if the 2008 solvency deficiency or solvency shortfall, as the case may be, is calculated by valuing the assets of a plan in excess of 110% of market value as at the date on which the valuation that identified the 2008 solvency deficiency or solvency shortfall was performed, the amount by which the aggregate amount of special payments calculated using a value of assets equal to 110% of market value on that date exceeds the aggregate amount of special payments calculated using a value of assets in excess of 110% of market value on that date shall be considered to be an amount accrued to the pension fund.

• (5) The amount that was accrued as a result of subsection (4) is considered to have been paid to the plan at the end of the fifth plan year after the end of the 2009 plan year by special payments that have been calculated in accordance with these Regulations and section 9 of the Pension Benefits Standards Regulations, 1985 provided that all those payments have been made to the fund by the end of that plan year.

• (6) If the funding is for a deficiency of a multi-employer pension plan and if the annual amount of the payments required to be made to the pension fund in accordance with subsection (2) or (3), as the case may be, is less than the aggregate amount of the payments that are required to be made to the pension fund, excluding the normal cost and the special payments required to liquidate an unfunded liability, under all applicable collective agreements, the amount of the payments required to be made to the pension fund in accordance with subsection (2) or (3), as the case may be, shall be the aggregate amount of the payments required to be made to the pension fund under all applicable collective agreements and subsection (4) shall not apply.

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• 1 (1) The following definitions apply in these Regulations.

  bank

  bank means a bank or authorized foreign bank, as defined in section 2 of the Bank Act. (banque)

  solvency shortfall

  solvency shortfall means the amount, calculated as at the 2008 plan year end, by which the liabilities of the 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 that takes into account any significant increases or decreases in benefits to the plan members as a result of the termination, exceed the total of

  • [...]

  • (b) the present value of a special payment in respect of a solvency deficiency that emerged before the 2008 plan year end and that was calculated, as the case may be, in accordance with section 9 of the Pension Benefits Standards Regulations, 1985, section 9 or 13 of the Air Canada Pension Plan Solvency Deficiency Funding Regulations or section 5, 6, 7 or 19 of the Solvency Funding Relief Regulations. (déficit à combler)

  2008 solvency deficiency

  2008 solvency deficiency means the solvency deficiency of a plan that emerged on the date on which the valuation that identified the deficiency was performed, as reported in the first actuarial report filed with the Superintendent after the coming into force of these Regulations, and that values the plan as at a date that is in the period beginning on November 1, 2008 and ending on October 31, 2009. (déficit de solvabilité pour l’année 2008)

• (2) Except as otherwise provided, words and expressions used in these Regulations have the same meaning as in the Pension Benefits Standards Regulations, 1985.

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• 21 (1) Despite subsection 9(4) of the Pension Benefits Standards Regulations, 1985 and section 13 of the Air Canada Pension Plan Solvency Deficiency Funding Regulations, if the actuarial report that values a plan as at the end of the 2008 plan year indicates that there is a 2008 solvency deficiency and that there is a solvency deficiency, as defined in subsection 9(1) of the Pension Benefits Standards Regulations, 1985, the 2008 solvency deficiency may be funded by special payments sufficient to liquidate that deficiency by equal annual payments over a period not exceeding 10 years from the day on which the 2008 solvency deficiency emerged.

• (2) If the actuarial report that values the plan as at the end of the 2008 plan year indicates that there is no 2008 solvency deficiency but that there is a solvency deficiency as defined in subsection 9(1) of the Pension Benefits Standards Regulations, 1985, the solvency deficiency may be funded by special payments sufficient to liquidate the solvency shortfall of the plan over a period not exceeding 10 years from the day on which that solvency shortfall was calculated.

• (3) The deficiency may be funded in accordance with this Part if the employer

  • (a) obtains letters of credit up to the end of the fifth plan year of funding under this Part, for the amount representing the difference between the present value, at the end of each plan year, of the remaining special payments that are required to be made to liquidate the 2008 solvency deficiency or solvency shortfall, as the case may be, under this Part and the present value of the remaining special payments that would have been required to be made to liquidate the corresponding 2008 solvency deficiency or solvency shortfall, as the case may be, as if it had been funded under section 9 of the Pension Benefits Standards Regulations, 1985; and

• 32 (1) A plan may cease to be funded in accordance with this Part, beginning on the first day of a plan year, if

  • [...]

  • (b) the amount by which the aggregate amount of special payments that would have been made to the pension fund in accordance with section 9 of the Pension Benefits Standards Regulations, 1985 from the day on which the deficiency emerged, as adjusted to take into account the reductions in special payments resulting from the application of those Regulations, plus interest, exceeds the aggregate amount of special payments made to the pension fund in accordance with Part 1 and this Part, plus interest, is remitted to the pension fund at least 30 days before the plan’s year end; and

  • (c) an actuarial report is prepared in accordance with subsection 31(2) and any remaining deficiency is calculated and funded in accordance with subsections 31(3) and (4) as if a default had occurred, except that the actuarial report shall value the plan as at the first day of the plan year in which funding ceases.

• (2) Paragraphs (1)(b) and (c) do not apply if the face amount of the letters of credit obtained to fund the plan under this Part is included as a solvency asset as defined in subsection 2(1) of the Pension Benefit Standards Regulations, 1985.

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• 19 (1) If a plan ceases to be funded in accordance with this Part and the plan does not have a surplus on the first day of the plan year, section 9 of the Pension Benefits Standards Regulations, 1985 applies to the plan except as follows:

  • (a) when funding ceases before the sixth plan year,

    • (i) the administrator shall have an actuarial report prepared — in which the present value of the special payments referred to in section 5 shall be zero — valuing the plan as at the first day of the plan year in which funding ceases,

    • (ii) the amount by which the aggregate amount of special payments that would have been made to the pension fund in accordance with section 9 of the Pension Benefits Standards Regulations, 1985 from the day on which the deficiency emerged to the day on which funding ceases, as adjusted to take into account the reductions in special payments resulting from the application of those Regulations, plus interest, exceeds the aggregate amount of special payments made to the pension fund in accordance with Part 1 and this Part, plus interest, shall immediately be remitted to the pension fund, and

  • (b) when funding ceases after the fifth plan year,

    • (i) the administrator shall have an actuarial report prepared as at the first day of the plan year in which funding ceases, and

    • (ii) the amount by which the aggregate amount of special payments that would have been made to the pension fund in accordance with section 9 of the Pension Benefits Standards Regulations, 1985 from the day on which the deficiency emerged to the day on which funding ceases, as adjusted to take into account the reductions in special payments resulting from the application of those Regulations, plus interest, exceeds the aggregate amount of special payments made to the pension fund in accordance with Part 1 and this Part, plus interest, shall immediately be remitted to the pension fund.

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