Solvency Funding Relief Regulations

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

acceptable rating

acceptable rating means the rating given by a credit rating agency to an issuer at the time of the issuance or renewal of a letter of credit that is at least equal to one of the following ratings:

• (a) A, from Dominion Bond Rating Service Limited;

• (b) A, from Fitch Ratings;

• (c) A2, from Moody's Investors Service; or

• (d) A, from Standard & Poor's Ratings Services. (note acceptable)

Act

Act means the Pension Benefits Standards Act, 1985. (Loi)

bank

bank means a bank or authorized foreign bank within the meaning of section 2 of the Bank Act. (banque)

beneficiary

beneficiary means a member or a former member of a plan or any person who is entitled to pension benefits under the plan except

• (a) a former member who has transferred or has chosen to transfer their pension benefit credit under section 26 of the Act; and

• (b) a former member for whom the administrator has purchased an immediate or deferred life annuity. (bénéficiaire)

beneficiary representative

beneficiary representative means a union representative or court-appointed representative of a beneficiary. (représentant des bénéficiaires)

cooperative credit society

cooperative credit society means a cooperative credit society to which the Cooperative Credit Associations Act applies or a cooperative credit society incorporated and regulated by or under an Act of the legislature of a province. (coopérative de crédit)

Crown Corporation

Crown Corporation means a Crown corporation that is an agent of Her Majesty in right of Canada in respect of which employment has not been excepted from included employment by a regulation made under subsection 4(6) of the Act. (société d'État)

default

default means the occurrence of one of the following:

• (a) the written notification to the Superintendent that the administrator intends to terminate or wind up the whole plan under subsection 29(5) of the Act;

• (b) the amendment of the plan, resolution by the employer or coming into force of any other measure that effects the termination of the whole plan;

• (c) the Superintendent’s declaration under subsection 29(2) or (2.1) of the Act that terminates the whole plan;

• (d) the filing of any application or petition by the employer, or against the employer, under the Companies' Creditors Arrangement Act, the Bankruptcy and Insolvency Act or the Winding-up and Restructuring Act;

• (e) the termination of the whole plan;

• (f) the non-renewal of a letter of credit referred to in Part 3 for its full face amount unless

  • (i) it has been replaced by another letter of credit for the same face amount at least 30 days before the beginning of the following plan year,

  • (ii) an amount equal to the face amount of the letter of credit has been remitted to the pension fund at least 30 days before the beginning of the following plan year, or

  • (iii) the face amount has been reduced in accordance with section 26; or

• (g) the failure by an employer to comply with a direction issued by the Superintendent pursuant to section 11 of the Act with respect to the face amount of the letters of credit required by subsection 19(2). (défaut)

holder

holder means a trust company that is licensed to carry on business in Canada and that has entered into a trust agreement with the employer or, if the employer is not the administrator, with the employer and the administrator. (détenteur)

initial solvency deficiency

initial 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 after the coming into force of these Regulations, and that values the plan as of a date that is later than December 30, 2005 and before January 2, 2008. (déficit initial de solvabilité)

issuer

issuer means a bank or cooperative credit society that has an acceptable rating and that is not the employer or affiliated with the employer within the meaning of subsection 2(2) of the Canada Business Corporations Act. (émetteur)

special payment

special payment means a payment or one of a series of payments that is determined in accordance with section 9 of the Pension Benefits Standards Regulations, 1985 or section 5, 6, 7 or 19 of these Regulations. (paiement spécial)

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