Acts and Regulations

2012-75 - Shared Risk Plans

Section 11
Disposition versions

Full text
Funding deficit recovery plan
11(1)If the open group funded ratio falls below 100% in two successive actuarial valuation reports, a funding deficit recovery plan shall be implemented within 12 months after the review date of the second of those reports.
11(2)Within 12 months after the review date of the most recent actuarial valuation report that caused the implementation of the funding deficit recovery plan, the administrator shall submit to the Superintendent a report that details how the funding deficit recovery plan will be applied and demonstrates to the satisfaction of the Superintendent that the shared risk plan is expected to meet an open group funded ratio of 100%.
11(3)A funding deficit recovery plan shall include the following funding deficit recovery actions:
(a) the funding deficit recovery actions allowed under the funding policy, including the order of priority of the actions and the timing requirements for the actions;
(b) the reduction of future base benefits; and
(c) the reduction of past base benefits of members and former members.
11(4)The funding deficit recovery actions referred to in subsection (3) may include the following actions which shall be implemented in priority to the reduction of past base benefits:
(a) subject to subsection 9(8), an increase in contributions in accordance with the contribution adjustments allowed under the funding policy;
(b) the reduction or removal of ancillary benefits if they are not vested ancillary benefits; and
(c) the reduction of future base benefits if the amount of the reduction does not exceed 5% of the amount of the base benefits in effect immediately before the funding deficit recovery plan is implemented.
11(5)If the actions taken under subsection (4) are not sufficient to meet an open group funded ratio of 100%, the past base benefits and the future base benefits shall be further reduced by such percentage that an open group funded ratio of 105% is met as of the review date of the actuarial valuation report that caused the implementation of the funding deficit recovery plan.
11(6)The percentage referred to in subsection (5) shall be the same for both past base benefits of members and former members and future base benefits of members and former members.
11(7)Base benefits shall be reduced under subsection (5) no later than 18 months after the review date of the most recent actuarial valuation report that caused the implementation of the funding deficit recovery plan, unless sufficient improvement has occurred after that review date such that it can be demonstrated to the satisfaction of the Superintendent that the reduction is not required.
2017-49
Funding deficit recovery plan
11(1)If the open group funded ratio falls below 100% in two successive actuarial valuation reports, a funding deficit recovery plan shall be implemented within 12 months after the review date of the second of those reports.
11(2)Within 12 months after the review date of the most recent actuarial valuation report that caused the implementation of the funding deficit recovery plan, the administrator shall submit to the Superintendent a report that details how the funding deficit recovery plan will be applied and demonstrates to the satisfaction of the Superintendent that the shared risk plan is expected to meet the primary risk management goal referred to in subsection 7(1).
11(3)A funding deficit recovery plan shall include the following funding deficit recovery actions:
(a) the funding deficit recovery actions allowed under the funding policy, including the order of priority of the actions and the timing requirements for the actions;
(b) the reduction of future base benefits; and
(c) the reduction of past base benefits of members and former members.
11(4)The funding deficit recovery actions referred to in subsection (3) may include the following actions which shall be implemented in priority to the reduction of past base benefits:
(a) subject to subsection 9(8), an increase in contributions in accordance with the contribution adjustments allowed under the funding policy;
(b) the reduction or removal of ancillary benefits if they are not vested ancillary benefits; and
(c) the reduction of future base benefits if the amount of the reduction does not exceed 5% of the amount of the base benefits in effect immediately before the funding deficit recovery plan is implemented.
11(5)If the actions taken under subsection (4) are not sufficient to meet the primary risk management goal referred to in subsection 7(1), the past base benefits and the future base benefits shall be further reduced by such percentage that the following are met as of the review date of the actuarial valuation report that caused the implementation of the funding deficit recovery plan:
(a) an open group funded ratio of 105%; and
(b) the primary risk management goal referred to in subsection 7(1).
11(6)The percentage referred to in subsection (5) shall be the same for both past base benefits of members and former members and future base benefits of members and former members.
11(7)Base benefits shall be reduced under subsection (5) no later than 18 months after the review date of the most recent actuarial valuation report that caused the implementation of the funding deficit recovery plan, unless sufficient improvement has occurred after that review date such that it can be demonstrated to the satisfaction of the Superintendent that the reduction is not required.