6(1)The objective of the funding policy of a shared risk plan is to provide the rules under which the administrator is required to manage the contributions and benefits under the plan.
6(2)The funding policy shall contain the following:
(a)
the risk management goals in accordance with section 7;
(b)
the risk management procedures in accordance with section 8;
(c)
the contributions in accordance with section 9;
(d)
the circumstances under which contributions may be suspended;
(e)
a funding deficit recovery plan in accordance with section 11;
(f)
a funding excess utilization plan in accordance with section 12;
(g)
a description of the cost sharing between the employer and the members;
(h)
a description of who is responsible for paying the expenses relating to the administration of the shared risk plan and how those expenses are treated for the purposes of the risk management procedures referred to in section 8;
(i)
the actuarial assumptions used on the conversion of a pension plan to a shared risk plan and the process for changing the assumptions over time, including the discount rate used to calculate the funding policy liabilities of the shared risk plan; and
(j)
the actuarial assumptions used for a new shared risk plan and the process for changing the assumptions over time, including the discount rate used to calculate the funding policy liabilities of the shared risk plan.
6(3)The discount rate referred to in paragraph (2)(is) shall be
(a)
consistent with the purposes of the shared risk plan, the funding policy, the investment policy and the risk management goals and procedures, and
(b)
held constant for the first two actuarial valuation reports filed after the conversion of a pension plan to a shared risk plan or after the plan is established if the shared risk plan is new.
6(1)The objective of the funding policy of a shared risk plan is to provide the rules under which the administrator is required to manage the contributions and benefits under the plan.
6(2)The funding policy shall contain the following:
(a)
the risk management goals in accordance with section 7;
(b)
the risk management procedures in accordance with section 8;
(c)
the contributions in accordance with section 9;
(d)
the circumstances under which contributions may be suspended;
(e)
a funding deficit recovery plan in accordance with section 11;
(f)
a funding excess utilization plan in accordance with section 12;
(g)
a description of the cost sharing between the employer and the members;
(h)
a description of who is responsible for paying the expenses relating to the administration of the shared risk plan and how those expenses are treated for the purposes of the risk management procedures referred to in section 8; and
(i)
the actuarial assumptions used on the conversion of a pension plan to a shared risk plan and the process for changing the assumptions over time, including the discount rate used to calculate the funding policy liabilities of the shared risk plan.
6(3)The discount rate referred to in paragraph (2)(i) shall be
(a)
consistent with the purposes of the shared risk plan, the funding policy, the investment policy and the risk management goals and procedures, and
(b)
held constant for the first two actuarial valuation reports filed after the conversion of a pension plan to a shared risk plan or after the plan is established if the shared risk plan is new.