Solvency Funding Relief Regulations

26 (1) The face amount of a letter of credit may be reduced, effective the beginning of a plan year, by

• (a) the amount by which the aggregate amount of payments that the employer has made to the pension fund in the previous plan year exceeds the total of the required special payments and the normal cost of the plan for that year as shown in an actuarial report; or

• (b) the amount by which the aggregate face amount of all of the letters of credit that are held by the holder in respect of the plan exceeds the amount set out in paragraph 19(2)(a) or (b), as the case may be.

(2) The face amount of the letter of credit shall not be reduced following a default.