15(1)The viability of a shared risk plan shall be tested using an asset liability model approved by the Superintendent.
15(2)An asset liability model shall comply with the following:
(a)
subject to subsections (3) and (3.1), the economic assumptions shall be established based on the actuary’s best estimates taking into account the current economic environment and future expectations, shall reflect a reasonable distribution of future economic scenarios, and shall be applied for asset and liability projections using a stochastic methodology;
(b)
the economic assumptions shall be reviewed at least once every 12 months;
(c)
the demographic assumptions used for the asset liability model shall be the same as those used for the calculation of the funding policy liabilities;
(d)
the assumptions regarding the number of members eligible for future base benefits and their demographic characteristics shall reflect the profile of the members of the shared risk plan as of the review date of the actuarial valuation report and shall not allow for increases in the number of members eligible for future base benefits unless approved by the Superintendent; and
(e)
the model shall produce at least 1,000 series of simulations of economic parameters for a period of not less than 20 years, resulting in a minimum of 20,000 observations of the financial position of the plan.
15(3)The economic assumptions referred to in paragraph (2)(a) shall not be used unless approved by the Superintendent.
15(3.1)The economic assumptions referred to in paragraph (2)(a) shall not be used to affect the discount rate referred to in paragraph 6(2)(i).
15(4)The testing performed using an asset liability model shall comply with the following:
(a)
the testing shall be performed by an actuary at least once every 12 months;
(b)
subject to subsection (5), the testing shall be performed on the basis of the funding policy valuation referred to in subsections 14(5), (6) and (7);
(c)
the testing shall take into account the current funding policy, including the current risk management goals, the current funding deficit recovery plan and the current funding excess utilization plan; and
(d)
the results shall show the probabilities associated with the risk management goals.
15(5)The excess contributions in each future year as determined under paragraph 14(6)(c) shall be considered as assets for the purpose of the asset liability model.
15(1)The viability of a shared risk plan shall be tested using an asset liability model approved by the Superintendent.
15(2)An asset liability model shall comply with the following:
(a)
subject to subsection (3), the economic assumptions shall be established based on the actuary’s best estimates taking into account the current economic environment and future expectations, shall reflect a reasonable distribution of future economic scenarios, and shall be applied for asset and liability projections using a stochastic methodology;
(b)
the economic assumptions shall be reviewed at least once every 12 months;
(c)
the demographic assumptions used for the asset liability model shall be the same as those used for the calculation of the funding policy liabilities;
(d)
the assumptions regarding the number of members eligible for future base benefits and their demographic characteristics shall reflect the profile of the members of the shared risk plan as of the review date of the actuarial valuation report and shall not allow for increases in the number of members eligible for future base benefits unless approved by the Superintendent; and
(e)
the model shall produce at least 1,000 series of simulations of economic parameters for a period of not less than 20 years, resulting in a minimum of 20,000 observations of the financial position of the plan.
15(3)The economic assumptions referred to in paragraph (2)(a) shall not be used unless approved by the Superintendent.
15(4)The testing performed using an asset liability model shall comply with the following:
(a)
the testing shall be performed by an actuary at least once every 12 months;
(b)
subject to subsection (5), the testing shall be performed on the basis of the funding policy valuation referred to in subsections 14(5), (6) and (7);
(c)
the testing shall take into account the current funding policy, including the current risk management goals, the current funding deficit recovery plan and the current funding excess utilization plan; and
(d)
the results shall show the probabilities associated with the risk management goals.
15(5)The excess contributions in each future year as determined under paragraph 14(6)(c) shall be considered as assets for the purpose of the asset liability model.