Acts and Regulations

2012-75 - Shared Risk Plans

Section 18
Disposition versions

Full text
Termination value
18(1)For the purposes of subsection 100.62(6) of the Act and subject to subsection (2), the termination value for a shared risk plan at the valuation date shall be the greater of
(a) the employee contributions and interest on them as prescribed in section 27, and
(b) the amount calculated as follows:
H × I
where
H is the actuarial value of the base and ancillary benefits accrued at the termination date using the following factors:
(i) an assumed retirement date that is the normal retirement date, and
(ii) the discount rate and the mortality basis used in the calculation of the funding policy liabilities; and
Iis the lesser of the following termination value funded ratios:
(i)the termination value funded ratio as of the review date of the most recent actuarial valuation report and calculated under paragraph 14(6)(e); and
(ii)the termination value funded ratio estimated under subsection (2).
18(2)If the administrator has reason to believe that the termination value funded ratio has been reduced by more than 10% from the ratio referred to in subparagraph (i) of the explanation for “I” in paragraph (1)(b) before the termination value is calculated under paragraph (1)(b), payment of the termination value shall be suspended until a new termination value funded ratio is calculated under paragraph 14(6)(e).
18(3)Section 55 of the Act does not apply to a shared risk plan.
2017-49
Termination value
18(1)For the purposes of subsection 100.62(6) of the Act and subject to subsection (2), the termination value for a shared risk plan at the valuation date shall be the greater of
(a) the employee contributions and interest on them as prescribed in section 27, and
(b) the amount calculated as follows:
H × I
where
H is the actuarial value of the base and ancillary benefits accrued at the termination date using the following factors:
(i) an assumed retirement date that is the normal retirement date, and
(ii) the discount rate and the mortality basis used in the calculation of the funding policy liabiltities; and
Iis the lesser of the following termination value funded ratios:
(i)the termination value funded ratio as of the review date of the most recent actuarial valuation report and calculated under paragraph 14(6)(e); and
(ii)the termination value funded ratio estimated under subsection (2).
18(2)If the administrator has reason to believe that the termination value funded ratio has been reduced by more than 10% from the ratio referred to in subparagraph (i) of the explanation for “I” in paragraph (1)(b) before the termination value is calculated under paragraph (1)(b), payment of the termination value shall be suspended until a new termination value funded ratio is calculated under paragraph 14(6)(e).
18(3)Section 55 of the Act does not apply to a shared risk plan.