Acts and Regulations

2012-75 - Shared Risk Plans

Section 14
Disposition versions

Full text
Actuarial valuation reports
14(1)A going concern valuation of a shared risk plan shall be performed at least once every three years to determine the maximum contributions allowed under the Income Tax Act (Canada).
14(2)The following benefits shall be valued for the purposes of a going concern valuation:
(a) the base benefits;
(b) if a pension plan is converted to a shared risk plan, all ancillary benefits as of the conversion date including the escalated adjustments provided for under the pension plan and measured immediately before the conversion date; and
(c) if the shared risk plan is a new plan, the ancillary benefits described in the funding policy.
14(3)A going concern valuation shall take into account expected future increases to earnings and any ancillary benefits described in the funding policy of the shared risk plan.
14(4)The maximum contributions allowed under a shared risk plan shall be calculated in accordance with the Income Tax Act (Canada) and based on the results of a going concern valuation.
14(5)A funding policy valuation of a shared risk plan shall be performed at least once every 12 months to determine the benefit security levels and whether or not any actions set forth in the funding policy are required to be taken.
14(6)A funding policy valuation shall include the following:
(a) the funding policy liabilities of the shared risk plan as of the valuation date;
(b) the funding policy normal cost of the shared risk plan for the 12 months after the valuation date;
(c) the present value of the excess contributions over the next 15 years that is based on the following:
(i) the excess contributions in each year calculated as follows:
A - B
where
A is the contributions expected to be made in the year; and
B is the funding policy normal cost for the year;
(ii) the discount rate used to calculate the funding policy liabilities and the funding policy normal cost; and
(iii) the projected aggregate level of earnings in respect of which contributions are to be made and benefits are to be earned by members for each year in the 15 years after the valuation date;
(d) the market value of the going concern assets of the shared risk plan;
(e) the termination value funded ratio at the valuation date calculated as follows:
C / D
where
C is the market value of the going concern assets referred to in paragraph (d); and
Dis the amount of the funding policy liabilities of the plan referred to in paragraph (a); and
(f) the 15 year open group funded ratio calculated as follows:
(E + C) / D
where
Eis the present value of the excess contributions referred to in paragraph (c);
Cis the market value of the going concern assets referred to in paragraph (d); and
Dis the amount of the funding policy liabilities of the plan referred to in paragraph (a).
14(7)For the purposes of a valuation made under subsection (6),
(a) the valuation method used shall be the unit credit cost method unless otherwise approved by the Superintendent;
(b) the funding policy liabilities and the funding policy normal cost of the plan shall be calculated in accordance with accepted actuarial practice and a statement to this effect shall be signed by an actuary; and
(c) the actuarial assumptions used to calculate the funding policy liabilities and the funding policy normal cost of the plan shall meet the following criteria:
(i) they shall include a discount rate that complies with subsection 6(3);
(ii) they shall reflect the current generational mortality tables approved by the Superintendent; and
(iii) they shall be consistent with the shared risk plan experience, future expectations for the plan and accepted actuarial practice.
14(7.1)The administrator shall ensure that an audited financial statement of the shared risk plan is prepared in accordance with generally accepted accounting principles at the same time as an actuarial valuation report is prepared under this section and that the statement is filed at the same time as the report is required to be filed or is filed, whichever occurs first.
14(8)Sections 8, 9 and 10 of Regulation 91-195 do not apply to a shared risk plan.
2017-49
Actuarial valuation reports
14(1)A going concern valuation of a shared risk plan shall be performed at least once every three years to determine the maximum contributions allowed under the Income Tax Act (Canada).
14(2)The following benefits shall be valued for the purposes of a going concern valuation:
(a) the base benefits;
(b) if a pension plan is converted to a shared risk plan, all ancillary benefits as of the conversion date including the escalated adjustments provided for under the pension plan and measured immediately before the conversion date; and
(c) if the shared risk plan is a new plan, the ancillary benefits described in the funding policy.
14(3)A going concern valuation shall take into account expected future increases to earnings and any ancillary benefits described in the funding policy of the shared risk plan.
14(4)The maximum contributions allowed under a shared risk plan shall be calculated in accordance with the Income Tax Act (Canada) and based on the results of a going concern valuation.
14(5)A funding policy valuation of a shared risk plan shall be performed at least once every 12 months to determine the benefit security levels and whether or not any actions set forth in the funding policy are required to be taken.
14(6)A funding policy valuation shall include the following:
(a) the funding policy liabilities of the shared risk plan as of the valuation date;
(b) the funding policy normal cost of the shared risk plan for the 12 months after the valuation date;
(c) the present value of the excess contributions over the next 15 years that is based on the following:
(i) the excess contributions in each year calculated as follows:
A - B
where
A is the contributions expected to be made in the year; and
B is the funding policy normal cost for the year;
(ii) the discount rate used to calculate the funding policy liabilities and the funding policy normal cost; and
(iii) the projected aggregate level of earnings in respect of which contributions are to be made and benefits are to be earned by members for each year in the 15 years after the valuation date;
(d) the market value of the going concern assets of the shared risk plan;
(e) the termination value funded ratio at the valuation date calculated as follows:
C / D
where
C is the market value of the going concern assets referred to in paragraph (d); and
Dis the amount of the funding policy liabilities of the plan referred to in paragraph (a); and
(f) the 15 year open group funded ratio calculated as follows:
(E + C) / D
where
Eis the present value of the excess contributions referred to in paragraph (c);
Cis the market value of the going concern assets referred to in paragraph (d); and
Dis the amount of the funding policy liabilities of the plan referred to in paragraph (a).
14(7)For the purposes of a valuation made under subsection (6),
(a) the valuation method used shall be the unit credit cost method unless otherwise approved by the Superintendent;
(b) the funding policy liabilities and the funding policy normal cost of the plan shall be calculated in accordance with accepted actuarial practice and a statement to this effect shall be signed by an actuary; and
(c) the actuarial assumptions used to calculate the funding policy liabilities and the funding policy normal cost of the plan shall meet the following criteria:
(i) they shall include a discount rate that complies with subsection 6(3);
(ii) they shall reflect the current generational mortality tables approved by the Superintendent; and
(iii) they shall be consistent with the shared risk plan experience, future expectations for the plan and accepted actuarial practice.
14(8)Section 8, paragraph 9(1)(b), subsections 9(2), (3), (3.1), (3.11), (3.2), (4), (5), (5.1), (6), (7) and (7.1) and section 10 of Regulation 91-195 do not apply to a shared risk plan.
Actuarial valuation reports
14(1)A going concern valuation of a shared risk plan shall be performed at least once every three years to determine the maximum contributions allowed under the Income Tax Act (Canada).
14(2)The following benefits shall be valued for the purposes of a going concern valuation:
(a) the base benefits;
(b) if a pension plan is converted to a shared risk plan, all ancillary benefits as of the conversion date including the escalated adjustments provided for under the pension plan and measured immediately before the conversion date; and
(c) if the shared risk plan is a new plan, the ancillary benefits described in the funding policy.
14(3)A going concern valuation shall take into account expected future increases to earnings and any ancillary benefits described in the funding policy of the shared risk plan.
14(4)The maximum contributions allowed under a shared risk plan shall be calculated in accordance with the Income Tax Act (Canada) and based on the results of a going concern valuation.
14(5)A funding policy valuation of a shared risk plan shall be performed at least once every 12 months to determine the benefit security levels and whether or not any actions set forth in the funding policy are required to be taken.
14(6)A funding policy valuation shall include the following:
(a) the funding policy liabilities of the shared risk plan as of the valuation date;
(b) the funding policy normal cost of the shared risk plan for the 12 months after the valuation date;
(c) the present value of the excess contributions over the next 15 years that is based on the following:
(i) the excess contributions in each year calculated as follows:
A - B
where
A is the contributions expected to be made in the year; and
B is the funding policy normal cost for the year;
(ii) the discount rate used to calculate the funding policy liabilities and the funding policy normal cost; and
(iii) the projected aggregate level of earnings in respect of which contributions are to be made and benefits are to be earned by members for each year in the 15 years after the valuation date;
(d) the market value of the going concern assets of the shared risk plan;
(e) the termination value funded ratio at the valuation date calculated as follows:
C / D
where
C is the market value of the going concern assets referred to in paragraph (d); and
Dis the amount of the funding policy liabilities of the plan referred to in paragraph (a); and
(f) the 15 year open group funded ratio calculated as follows:
(E + C) / D
where
Eis the present value of the excess contributions referred to in paragraph (c);
Cis the market value of the going concern assets referred to in paragraph (d); and
Dis the amount of the funding policy liabilities of the plan referred to in paragraph (a).
14(7)For the purposes of a valuation made under subsection (6),
(a) the valuation method used shall be the unit credit cost method unless otherwise approved by the Superintendent;
(b) the funding policy liabilities and the funding policy normal cost of the plan shall be calculated in accordance with accepted actuarial practice and a statement to this effect shall be signed by an actuary; and
(c) the actuarial assumptions used to calculate the funding policy liabilities and the funding policy normal cost of the plan shall meet the following criteria:
(i) they shall include a discount rate that complies with subsection 6(3);
(ii) they shall reflect the current generational mortality tables approved by the Superintendent; and
(iii) they shall be consistent with the shared risk plan experience, future expectations for the plan and accepted actuarial practice.
14(8)Section 8, paragraph 9(1)(b), subsections 9(2), (3), (3.1), (3.11), (3.2), (4), (5), (5.1), (6), (7) and (7.1) and section 10 of Regulation 91-195 do not apply to a shared risk plan.