Acts and Regulations

91-195 - General

Section 36
Disposition versions

Full text
Special payments by employer
36(0.1)In subsections (1.22), (1.23), (1.24), (1.27), (1.28) and (1.29), “existing solvency deficiencies” , in respect of a pension plan, means the present value of all special payments as of the review date of the actuarial valuation report in question, other than payments required only by reason of section 65 of the Act, that are scheduled to be paid after that date and that are required with respect to any solvency deficiency determined under section 10, except for a solvency deficiency resulting from an amendment to the pension plan that was not required under the Act, this Regulation, the pension benefits legislation of a designated jurisdiction or the Income Tax Act (Canada) made between January 1, 2010, and the review date of the actuarial valuation report in question, both dates inclusive. (déficit de solvabilité existant)
36(1)Subject to subsections (2) and (4), section 40 and subsection 41(1), the total amount of special payments made under paragraph 35(2)(c) to amortize an experience deficiency, an initial unfunded liability, an actuarial loss, a going concern unfunded liability or a solvency deficiency shall not be less than the sum of
(a) for an actuarial valuation report with a review date before December 31, 2019, the amount of any remaining special payments required to liquidate any experience deficiency or initial unfunded liability, in equal monthly installments over the lesser of
(i) the period over which the experience deficiency or initial unfunded liability is amortized on the commencement of section 10 of the Act, and
(ii) a period of fifteen years after the commencement of section 10 of the Act,
(b) for an actuarial valuation report with a review date before December 31, 2019, and subject to subsection (5), the amount of special payments that must be paid in order to liquidate any actuarial loss, with interest calculated using the interest rate assumed in the going concern valuation, in equal monthly installments over a period of not more than fifteen years commencing on the review date of the actuarial valuation report in which the actuarial loss is identified,
(b.1) for an actuarial valuation report with a review date on or after December 31, 2019, and subject to subsection (5), the amount of special payments that must be paid in order to liquidate any going concern unfunded liability, with interest calculated using the interest rate assumed in the going concern valuation, in equal monthly installments over a period of not more than ten years commencing on the review date of the actuarial valuation report in which the going concern unfunded liability is identified,
(b.2) for an actuarial valuation report respecting a pension plan referred to in subsection 8.1(2), and subject to subsection (5), the amount of special payments that must be paid in order to liquidate any actuarial loss, with interest calculated using the interest rate assumed in the going concern valuation, in equal monthly installments over a period of not more than fifteen years commencing on the review date of the actuarial valuation report in which the actuarial loss is identified, and
(c) subject to subsections (1.1), (1.2), (1.23), (1.28) and (5), the amount of special payments that must be paid in order to liquidate any solvency deficiency, with interest calculated using the interest rate assumed in the solvency valuation, in equal monthly installments over a period of not more than five years commencing on the review date of the actuarial valuation report in which the solvency deficiency is identified.
36(1.01)Paragraphs (1)(b) and (b.1) do not apply to an actuarial valuation report respecting a pension plan referred to in subsection 8.1(2).
36(1.1)The Superintendent may reduce the amount of special payments under paragraph (1)(c) by extending the period in paragraph (1)(c) to a date on or before January 31, 2016, if the special payments required under paragraph (1)(c) have been rendered onerous as a result of liabilities for escalated adjustments having been taken into account in the first solvency valuation after January 31, 2001.
36(1.2)The Superintendent may reduce the amount of special payments under paragraph (1)(c) by extending the period in paragraph (1)(c) to a date on or before December 31, 2018, if
(a) the administrator files an actuarial valuation report with the Superintendent that has a review date of no more than nine months prior to the date upon which a request is made under this subsection for a reduction in the amount of special payments,
(b) an actuary certifies that the pension plan has sufficient assets to meet its cash flow requirements during the extended amortization period,
(c) the employer provides to each member, former member and other person entitled to payments under the pension plan
(i) written notice of the request for a reduction in the amount of special payments and an explanation for the request, and
(ii) a request that any comments or questions regarding the request for the reduction be submitted to the employer and the Superintendent,
(d) the employer provides the Superintendent with
(i) a copy of the notice and request required under paragraph (c), and
(ii) certification of the last day upon which the notice and request were provided to a member, former member or other person, and
(e) it is at least forty-five days after the date certified to the Superintendent under subparagraph (d)(ii).
36(1.21)On or after the commencement of this subsection, the Superintendent shall not reduce the amount of special payments under paragraph (1)(c) by extending the period in that paragraph under subsection (1.2).
36(1.22)Despite subsection (8), if an administrator files an actuarial valuation report with a review date that is between April 1, 2010, and January 1, 2012, both dates inclusive, the administrator may request that
(a) the existing solvency deficiencies of the pension plan be consolidated, and
(b) the amount of special payments under paragraph (1)(c) be reduced by extending the period referred to in that paragraph to ten years.
36(1.23)The Superintendent shall grant a request referred to in subsection (1.22), if
(a) the administrator has not previously made a request under that subsection with respect to the pension plan,
(b) an actuary certifies that the assets of the pension plan are sufficient to provide for all the expected payments under the pension plan during the extended amortization period,
(c) the employer provides to each member, former member and other person entitled to payments under the pension plan written notice of the request that contains:
(i) an explanation for the request;
(ii) a comparison of the total annual employer contributions for each of the next ten years without consolidating the existing solvency deficiencies and with consolidating the existing solvency deficiencies; and
(iii) a statement that any comments or questions regarding the request may be submitted to the employer; and
(d) the employer provides the Superintendent with
(i) a copy of the notice required under paragraph (c), and
(ii) certification of the date on which the notice was provided to the members, former members and other persons entitled to payments under the pension plan.
36(1.24)If the Superintendent grants a request referred to in subsection (1.22),
(a) the administrator shall ensure that the pension plan is reviewed by, and an actuarial valuation report respecting the pension plan is prepared by, an actuary as of the date that is not more than twelve months after the review date of the previous report until
(i) the review date of the actuarial valuation report that identifies that no special payments are required with respect to the consolidated existing solvency deficiencies, or
(ii) the end of the ten year period referred to in paragraph (1.22)(b), whichever is earlier, and
(b) the pension plan shall not be amended during the ten year period referred to in paragraph (1.22)(b), if the amendment is not required under the Act, this Regulation, the pension benefits legislation of a designated jurisdiction or the Income Tax Act (Canada) unless
(i) the employer, or a person required to make contributions on behalf of the employer, contributes the full cost of the amendment to the pension plan on a solvency basis within ninety days after the amendment, or
(ii) no further special payments are required with respect to the consolidated existing solvency deficiencies.
36(1.25)If the Superintendent grants a request referred to in subsection (1.22) and a special payment had been made between the review date of the actuarial valuation report in question and the date the report is filed that is in an amount in excess of the amount determined for special payments over the extended amortization period, the difference between the amount of the special payment and amount determined for special payments over the extended amortization period shall not be considered an overpayment and shall not be used to further reduce the amount of special payments under subsection (1.22).
36(1.26)In subsections (1.27) to (1.29), “multi-jurisdictional pension plan” means a pension plan that is subject to the Act and to the pension benefits legislation of one or more designated jurisdictions.
36(1.27)Despite subsection (8), if an administrator files an actuarial valuation report respecting a multi-jurisdictional pension plan that has a review date that is between December 31, 2016, and December 31, 2018, both dates inclusive, the administrator may request that
(a) the existing solvency deficiencies of the pension plan be consolidated, and
(b) the amount of special payments under paragraph (1)(c) be reduced by extending the period referred to in that paragraph to ten years.
36(1.28)The Superintendent shall grant a request referred to in subsection (1.27), if
(a) the administrator has not previously made a request under that subsection with respect to the multi-jurisdictional pension plan, and
(b) an actuary certifies that the assets of the pension plan are sufficient to provide for all the expected payments under the pension plan during the extended amortization period.
36(1.29)If the Superintendent grants a request referred to in subsection (1.27),
(a) the administrator shall ensure that the multi-jurisdictional pension plan is reviewed by, and an actuarial valuation report respecting the pension plan is prepared by, an actuary as of the date that is not more than 12 months after the review date of the previous report until the earlier of
(i) the review date of the actuarial valuation report that identifies that no special payments are required with respect to the consolidated existing solvency deficiencies, and
(ii) the end of the ten-year period referred to in paragraph (1.27)(b),
(b) the pension plan shall not be amended during the ten-year period referred to in paragraph (1.27)(b), if the amendment is not required under the Act, this Regulation, the pension benefits legislation of a designated jurisdiction or the Income Tax Act (Canada) unless
(i) the employer, or a person required to make contributions on behalf of the employer, contributes the full cost of the amendment to the pension plan on a solvency basis within 90 days after the amendment, or
(ii) no further special payments are required with respect to the consolidated existing solvency deficiencies,
(c) each time a statement referred to in subsection 15(1) is provided to members between the date the request was granted by the Superintendent and the end of the ten-year period referred to in paragraph (1.27)(b), both dates inclusive, it shall contain the following additional information:
(i) an explanation of why the request was made; and
(ii) a comparison of the total annual employer contributions for each of the next ten years without consolidating the existing solvency deficiencies and with consolidating the existing solvency deficiencies,
(d) the administrator shall provide to each former member and other person entitled to payments under the pension plan a copy of any statement referred to in subsection 15(1) provided in accordance with paragraph (c), modified as necessary to apply to him or her, and
(e) the administrator shall provide the Superintendent with
(i) a copy of the information referred to in paragraph (c)(i) and (ii) each time the information is provided to members, former members and other persons entitled to payments under the pension plan, and
(ii) certification of the date on which the information was provided to the members, former members and other persons entitled to payments under the pension plan.
36(1.291)If the Superintendent grants a request referred to in subsection (1.27) and a special payment was made between the review date of the actuarial valuation report in question and the date the report is filed with the Superintendent that is in an amount in excess of the amount determined for special payments over the extended amortization period, the difference between the amount of the special payment and amount determined for special payments over the extended amortization period shall not be considered an overpayment and shall not be used to further reduce the amount of special payments under subsection (1.27).
36(1.3)If the Superintendent reduces the amount of special payments in accordance with subsection (1.2), (1.22) or (1.27), the employer shall
(a) immediately advise the Superintendent of any event or circumstance that may place the employer at a risk of not making a special payment, and
(b) provide the Superintendent with any requested information that may disclose an event or circumstance that may place the employer at a risk of not making a special payment.
36(1.4)An event or circumstance referred to in subsection (1.3) that, in the opinion of the Superintendent, significantly endangers the interests of the members or former members of a pension plan is a prescribed event or circumstance for the purposes of paragraph 61(1)(h) of the Act.
36(2)The remaining special payments referred to in paragraph (1)(a) shall be determined after utilizing any unused actuarial gains in existence on the commencement of section 10 of the Act.
36(3)The period of fifteen years established under paragraph (1)(b) in which an actuarial loss may be liquidated shall, for the purposes of the first actuarial valuation report subsequent to a substitute report filed under subsection 9(3), commence to run on the commencement of section 10 of the Act.
36(4)If payment of a new series of special payments is commenced under paragraph (1)(c), the amounts referred to in paragraphs (1)(a), (b), (b.1) and (b.2) in respect of any portion of an amortization period extending beyond the end of the period established for the installments required under paragraph (1)(c) shall be reduced or eliminated so that the total amount of the present value of all special payments and the going concern assets is equal to the going concern liability.
36(5)Subject to subsection 41(1), an employer or person required to make contributions on behalf of an employer may, instead of making the special payments required under paragraphs (1)(b), (b.1), (b.2) and (c), make scheduled dollar payments in accordance with subsections (2), (3) and (4) in monthly installments that
(a) commence as of the review date of the actuarial valuation report in which the actuarial loss, going concern unfunded liability or solvency deficiency is identified, and
(b) are determined by reference to a schedule of dollar payments determined in accordance with subsection (6).
36(6)A schedule of dollar payments referred to in subsection (5) shall be determined so that
(a) each scheduled dollar payment is a consistent percentage of the projected future payroll of members, as projected at the date of establishing the schedule,
(b) the present value of the scheduled dollar payments is equal to the total amount of any actuarial loss, any going concern unfunded liability and any solvency deficiency to be liquidated at the date of establishing the schedule,
(c) if there is an actuarial loss or a going concern unfundeed liability, the projected future payroll is determined using the same actuarial assumptions used in the going concern valuation in which the actuarial loss or going concern unfunded liability was identified, and
(d) the amortization period for each series of scheduled dollar payments is not greater than the periods provided for under paragraph (1)(b), (b.1), (b.2) or (c), as the case may be.
36(7)For the purposes of paragraph (6)(b), the present value of scheduled dollar payments shall be determined
(a) for scheduled dollar payments relating to an actuarial loss or a going concern unfunded liability or a going concern unfunded liability, using the interest rate assumed in the going concern valuation, and
(b) for scheduled dollar payments relating to a solvency deficiency, using the interest rate assumed in the solvency valuation.
36(8)Each actuarial loss and each solvency deficiency shall be funded separately and shall not be combined with any other actuarial loss or solvency deficiency unless the plan is wound up.
36(9)Subject to subsection (10), subsection (8) applies to an actuarial valuation report with a review date before December 31, 2019.
36(10)Subsection (8) applies to an actuarial valuation report respecting a pension plan referred to in subsection 8.1(2), regardless of the review date of the actuarial valuation report.
2001-1; 2003-87; 2008-10; 2011-71; 2017-35; 2020-51
Special payments by employer
36(0.1)In subsections (1.22), (1.23), (1.24), (1.27), (1.28) and (1.29), “existing solvency deficiencies” , in respect of a pension plan, means the present value of all special payments as of the review date of the actuarial valuation report in question, other than payments required only by reason of section 65 of the Act, that are scheduled to be paid after that date and that are required with respect to any solvency deficiency determined under section 10, except for a solvency deficiency resulting from an amendment to the pension plan that was not required under the Act, this Regulation, the pension benefits legislation of a designated jurisdiction or the Income Tax Act (Canada) made between January 1, 2010, and the review date of the actuarial valuation report in question, both dates inclusive. (déficit de solvabilité existant)
36(1)Subject to subsections (2) and (4), section 40 and subsection 41(1), the total amount of special payments made under paragraph 35(2)(c) to amortize an experience deficiency, an initial unfunded liability, an actuarial loss or a solvency deficiency shall not be less than the sum of
(a) the amount of any remaining special payments required to liquidate any experience deficiency or initial unfunded liability, in equal monthly installments over the lesser of
(i) the period over which the experience deficiency or initial unfunded liability is amortized on the commencement of section 10 of the Act, and
(ii) a period of fifteen years after the commencement of section 10 of the Act,
(b) subject to subsection (5), the amount of special payments that must be paid in order to liquidate any actuarial loss, with interest calculated using the interest rate assumed in the going concern valuation, in equal monthly installments over a period of not more than fifteen years commencing on the review date of the actuarial valuation report in which the actuarial loss is identified, and
(c) subject to subsections (1.1), (1.2), (1.23), (1.28) and (5), the amount of special payments that must be paid in order to liquidate any solvency deficiency, with interest calculated using the interest rate assumed in the solvency valuation, in equal monthly installments over a period of not more than five years commencing on the review date of the actuarial valuation report in which the solvency deficiency is identified.
36(1.1)The Superintendent may reduce the amount of special payments under paragraph (1)(c) by extending the period in paragraph (1)(c) to a date on or before January 31, 2016, if the special payments required under paragraph (1)(c) have been rendered onerous as a result of liabilities for escalated adjustments having been taken into account in the first solvency valuation after January 31, 2001.
36(1.2)The Superintendent may reduce the amount of special payments under paragraph (1)(c) by extending the period in paragraph (1)(c) to a date on or before December 31, 2018, if
(a) the administrator files an actuarial valuation report with the Superintendent that has a review date of no more than nine months prior to the date upon which a request is made under this subsection for a reduction in the amount of special payments,
(b) an actuary certifies that the pension plan has sufficient assets to meet its cash flow requirements during the extended amortization period,
(c) the employer provides to each member, former member and other person entitled to payments under the pension plan
(i) written notice of the request for a reduction in the amount of special payments and an explanation for the request, and
(ii) a request that any comments or questions regarding the request for the reduction be submitted to the employer and the Superintendent,
(d) the employer provides the Superintendent with
(i) a copy of the notice and request required under paragraph (c), and
(ii) certification of the last day upon which the notice and request were provided to a member, former member or other person, and
(e) it is at least forty-five days after the date certified to the Superintendent under subparagraph (d)(ii).
36(1.21)On or after the commencement of this subsection, the Superintendent shall not reduce the amount of special payments under paragraph (1)(c) by extending the period in that paragraph under subsection (1.2).
36(1.22)Despite subsection (8), if an administrator files an actuarial valuation report with a review date that is between April 1, 2010, and January 1, 2012, both dates inclusive, the administrator may request that
(a) the existing solvency deficiencies of the pension plan be consolidated, and
(b) the amount of special payments under paragraph (1)(c) be reduced by extending the period referred to in that paragraph to ten years.
36(1.23)The Superintendent shall grant a request referred to in subsection (1.22), if
(a) the administrator has not previously made a request under that subsection with respect to the pension plan,
(b) an actuary certifies that the assets of the pension plan are sufficient to provide for all the expected payments under the pension plan during the extended amortization period,
(c) the employer provides to each member, former member and other person entitled to payments under the pension plan written notice of the request that contains:
(i) an explanation for the request;
(ii) a comparison of the total annual employer contributions for each of the next ten years without consolidating the existing solvency deficiencies and with consolidating the existing solvency deficiencies; and
(iii) a statement that any comments or questions regarding the request may be submitted to the employer; and
(d) the employer provides the Superintendent with
(i) a copy of the notice required under paragraph (c), and
(ii) certification of the date on which the notice was provided to the members, former members and other persons entitled to payments under the pension plan.
36(1.24)If the Superintendent grants a request referred to in subsection (1.22),
(a) the administrator shall ensure that the pension plan is reviewed by, and an actuarial valuation report respecting the pension plan is prepared by, an actuary as of the date that is not more than twelve months after the review date of the previous report until
(i) the review date of the actuarial valuation report that identifies that no special payments are required with respect to the consolidated existing solvency deficiencies, or
(ii) the end of the ten year period referred to in paragraph (1.22)(b), whichever is earlier, and
(b) the pension plan shall not be amended during the ten year period referred to in paragraph (1.22)(b), if the amendment is not required under the Act, this Regulation, the pension benefits legislation of a designated jurisdiction or the Income Tax Act (Canada) unless
(i) the employer, or a person required to make contributions on behalf of the employer, contributes the full cost of the amendment to the pension plan on a solvency basis within ninety days after the amendment, or
(ii) no further special payments are required with respect to the consolidated existing solvency deficiencies.
36(1.25)If the Superintendent grants a request referred to in subsection (1.22) and a special payment had been made between the review date of the actuarial valuation report in question and the date the report is filed that is in an amount in excess of the amount determined for special payments over the extended amortization period, the difference between the amount of the special payment and amount determined for special payments over the extended amortization period shall not be considered an overpayment and shall not be used to further reduce the amount of special payments under subsection (1.22).
36(1.26)In subsections (1.27) to (1.29), “multi-jurisdictional pension plan” means a pension plan that is subject to the Act and to the pension benefits legislation of one or more designated jurisdictions.
36(1.27)Despite subsection (8), if an administrator files an actuarial valuation report respecting a multi-jurisdictional pension plan that has a review date that is between December 31, 2016, and December 31, 2018, both dates inclusive, the administrator may request that
(a) the existing solvency deficiencies of the pension plan be consolidated, and
(b) the amount of special payments under paragraph (1)(c) be reduced by extending the period referred to in that paragraph to ten years.
36(1.28)The Superintendent shall grant a request referred to in subsection (1.27), if
(a) the administrator has not previously made a request under that subsection with respect to the multi-jurisdictional pension plan, and
(b) an actuary certifies that the assets of the pension plan are sufficient to provide for all the expected payments under the pension plan during the extended amortization period.
36(1.29)If the Superintendent grants a request referred to in subsection (1.27),
(a) the administrator shall ensure that the multi-jurisdictional pension plan is reviewed by, and an actuarial valuation report respecting the pension plan is prepared by, an actuary as of the date that is not more than 12 months after the review date of the previous report until the earlier of
(i) the review date of the actuarial valuation report that identifies that no special payments are required with respect to the consolidated existing solvency deficiencies, and
(ii) the end of the ten-year period referred to in paragraph (1.27)(b),
(b) the pension plan shall not be amended during the ten-year period referred to in paragraph (1.27)(b), if the amendment is not required under the Act, this Regulation, the pension benefits legislation of a designated jurisdiction or the Income Tax Act (Canada) unless
(i) the employer, or a person required to make contributions on behalf of the employer, contributes the full cost of the amendment to the pension plan on a solvency basis within 90 days after the amendment, or
(ii) no further special payments are required with respect to the consolidated existing solvency deficiencies,
(c) each time a statement referred to in subsection 15(1) is provided to members between the date the request was granted by the Superintendent and the end of the ten-year period referred to in paragraph (1.27)(b), both dates inclusive, it shall contain the following additional information:
(i) an explanation of why the request was made; and
(ii) a comparison of the total annual employer contributions for each of the next ten years without consolidating the existing solvency deficiencies and with consolidating the existing solvency deficiencies,
(d) the administrator shall provide to each former member and other person entitled to payments under the pension plan a copy of any statement referred to in subsection 15(1) provided in accordance with paragraph (c), modified as necessary to apply to him or her, and
(e) the administrator shall provide the Superintendent with
(i) a copy of the information referred to in paragraph (c)(i) and (ii) each time the information is provided to members, former members and other persons entitled to payments under the pension plan, and
(ii) certification of the date on which the information was provided to the members, former members and other persons entitled to payments under the pension plan.
36(1.291)If the Superintendent grants a request referred to in subsection (1.27) and a special payment was made between the review date of the actuarial valuation report in question and the date the report is filed with the Superintendent that is in an amount in excess of the amount determined for special payments over the extended amortization period, the difference between the amount of the special payment and amount determined for special payments over the extended amortization period shall not be considered an overpayment and shall not be used to further reduce the amount of special payments under subsection (1.27).
36(1.3)If the Superintendent reduces the amount of special payments in accordance with subsection (1.2), (1.22) or (1.27), the employer shall
(a) immediately advise the Superintendent of any event or circumstance that may place the employer at a risk of not making a special payment, and
(b) provide the Superintendent with any requested information that may disclose an event or circumstance that may place the employer at a risk of not making a special payment.
36(1.4)An event or circumstance referred to in subsection (1.3) that, in the opinion of the Superintendent, significantly endangers the interests of the members or former members of a pension plan is a prescribed event or circumstance for the purposes of paragraph 61(1)(h) of the Act.
36(2)The remaining special payments referred to in paragraph (1)(a) shall be determined after utilizing any unused actuarial gains in existence on the commencement of section 10 of the Act.
36(3)The period of fifteen years established under paragraph (1)(b) in which an actuarial loss may be liquidated shall, for the purposes of the first actuarial valuation report subsequent to a substitute report filed under subsection 9(3), commence to run on the commencement of section 10 of the Act.
36(4)If payment of a new series of special payments is commenced under paragraph (1)(c), the amounts referred to in paragraphs (1)(a) and (b) in respect of any portion of an amortization period extending beyond the end of the period established for the installments required under paragraph (1)(c) shall be reduced or eliminated so that the total amount of the present value of all special payments and the going concern assets is equal to the going concern liability.
36(5)Subject to subsection 41(1), an employer or person required to make contributions on behalf of an employer may, instead of making the special payments required under paragraphs (1)(b) and (c), make scheduled dollar payments in accordance with subsections (2), (3) and (4) in monthly installments that
(a) commence as of the review date of the actuarial valuation report in which the actuarial loss or solvency deficiency is identified, and
(b) are determined by reference to a schedule of dollar payments determined in accordance with subsection (6).
36(6)A schedule of dollar payments referred to in subsection (5) shall be determined so that
(a) each scheduled dollar payment is a consistent percentage of the projected future payroll of members, as projected at the date of establishing the schedule,
(b) the present value of the scheduled dollar payments is equal to the total amount of any actuarial loss and any solvency deficiency to be liquidated at the date of establishing the schedule,
(c) if there is an actuarial loss, the projected future payroll is determined using the same actuarial assumptions used in the going concern valuation in which the actuarial loss was identified, and
(d) the amortization period for each series of scheduled dollar payments is not greater than the periods provided for under paragraph (1)(b) or (c), as the case may be.
36(7)For the purposes of paragraph (6)(b), the present value of scheduled dollar payments shall be determined
(a) for scheduled dollar payments relating to an actuarial loss, using the interest rate assumed in the going concern valuation, and
(b) for scheduled dollar payments relating to a solvency deficiency, using the interest rate assumed in the solvency valuation.
36(8)Each actuarial loss and each solvency deficiency shall be funded separately and shall not be combined with any other actuarial loss or solvency deficiency unless the plan is wound up.
2001-1; 2003-87; 2008-10; 2011-71; 2017-35
Special payments by employer
36(0.1)In subsections (1.22), (1.23), (1.24), (1.27), (1.28) and (1.29), “existing solvency deficiencies” , in respect of a pension plan, means the present value of all special payments as of the review date of the actuarial valuation report in question, other than payments required only by reason of section 65 of the Act, that are scheduled to be paid after that date and that are required with respect to any solvency deficiency determined under section 10, except for a solvency deficiency resulting from an amendment to the pension plan that was not required under the Act, this Regulation, the pension benefits legislation of a designated jurisdiction or the Income Tax Act (Canada) made between January 1, 2010, and the review date of the actuarial valuation report in question, both dates inclusive. (déficit de solvabilité existant)
36(1)Subject to subsections (2) and (4), section 40 and subsection 41(1), the total amount of special payments made under paragraph 35(2)(c) to amortize an experience deficiency, an initial unfunded liability, an actuarial loss or a solvency deficiency shall not be less than the sum of
(a) the amount of any remaining special payments required to liquidate any experience deficiency or initial unfunded liability, in equal monthly installments over the lesser of
(i) the period over which the experience deficiency or initial unfunded liability is amortized on the commencement of section 10 of the Act, and
(ii) a period of fifteen years after the commencement of section 10 of the Act,
(b) subject to subsection (5), the amount of special payments that must be paid in order to liquidate any actuarial loss, with interest calculated using the interest rate assumed in the going concern valuation, in equal monthly installments over a period of not more than fifteen years commencing on the review date of the actuarial valuation report in which the actuarial loss is identified, and
(c) subject to subsections (1.1), (1.2), (1.23), (1.28) and (5), the amount of special payments that must be paid in order to liquidate any solvency deficiency, with interest calculated using the interest rate assumed in the solvency valuation, in equal monthly installments over a period of not more than five years commencing on the review date of the actuarial valuation report in which the solvency deficiency is identified.
36(1.1)The Superintendent may reduce the amount of special payments under paragraph (1)(c) by extending the period in paragraph (1)(c) to a date on or before January 31, 2016, if the special payments required under paragraph (1)(c) have been rendered onerous as a result of liabilities for escalated adjustments having been taken into account in the first solvency valuation after January 31, 2001.
36(1.2)The Superintendent may reduce the amount of special payments under paragraph (1)(c) by extending the period in paragraph (1)(c) to a date on or before December 31, 2018, if
(a) the administrator files an actuarial valuation report with the Superintendent that has a review date of no more than nine months prior to the date upon which a request is made under this subsection for a reduction in the amount of special payments,
(b) an actuary certifies that the pension plan has sufficient assets to meet its cash flow requirements during the extended amortization period,
(c) the employer provides to each member, former member and other person entitled to payments under the pension plan
(i) written notice of the request for a reduction in the amount of special payments and an explanation for the request, and
(ii) a request that any comments or questions regarding the request for the reduction be submitted to the employer and the Superintendent,
(d) the employer provides the Superintendent with
(i) a copy of the notice and request required under paragraph (c), and
(ii) certification of the last day upon which the notice and request were provided to a member, former member or other person, and
(e) it is at least forty-five days after the date certified to the Superintendent under subparagraph (d)(ii).
36(1.21)On or after the commencement of this subsection, the Superintendent shall not reduce the amount of special payments under paragraph (1)(c) by extending the period in that paragraph under subsection (1.2).
36(1.22)Despite subsection (8), if an administrator files an actuarial valuation report with a review date that is between April 1, 2010, and January 1, 2012, both dates inclusive, the administrator may request that
(a) the existing solvency deficiencies of the pension plan be consolidated, and
(b) the amount of special payments under paragraph (1)(c) be reduced by extending the period referred to in that paragraph to ten years.
36(1.23)The Superintendent shall grant a request referred to in subsection (1.22), if
(a) the administrator has not previously made a request under that subsection with respect to the pension plan,
(b) an actuary certifies that the assets of the pension plan are sufficient to provide for all the expected payments under the pension plan during the extended amortization period,
(c) the employer provides to each member, former member and other person entitled to payments under the pension plan written notice of the request that contains:
(i) an explanation for the request;
(ii) a comparison of the total annual employer contributions for each of the next ten years without consolidating the existing solvency deficiencies and with consolidating the existing solvency deficiencies; and
(iii) a statement that any comments or questions regarding the request may be submitted to the employer; and
(d) the employer provides the Superintendent with
(i) a copy of the notice required under paragraph (c), and
(ii) certification of the date on which the notice was provided to the members, former members and other persons entitled to payments under the pension plan.
36(1.24)If the Superintendent grants a request referred to in subsection (1.22),
(a) the administrator shall ensure that the pension plan is reviewed by, and an actuarial valuation report respecting the pension plan is prepared by, an actuary as of the date that is not more than twelve months after the review date of the previous report until
(i) the review date of the actuarial valuation report that identifies that no special payments are required with respect to the consolidated existing solvency deficiencies, or
(ii) the end of the ten year period referred to in paragraph (1.22)(b), whichever is earlier, and
(b) the pension plan shall not be amended during the ten year period referred to in paragraph (1.22)(b), if the amendment is not required under the Act, this Regulation, the pension benefits legislation of a designated jurisdiction or the Income Tax Act (Canada) unless
(i) the employer, or a person required to make contributions on behalf of the employer, contributes the full cost of the amendment to the pension plan on a solvency basis within ninety days after the amendment, or
(ii) no further special payments are required with respect to the consolidated existing solvency deficiencies.
36(1.25)If the Superintendent grants a request referred to in subsection (1.22) and a special payment had been made between the review date of the actuarial valuation report in question and the date the report is filed that is in an amount in excess of the amount determined for special payments over the extended amortization period, the difference between the amount of the special payment and amount determined for special payments over the extended amortization period shall not be considered an overpayment and shall not be used to further reduce the amount of special payments under subsection (1.22).
36(1.26)In subsections (1.27) to (1.29), “multi-jurisdictional pension plan” means a pension plan that is subject to the Act and to the pension benefits legislation of one or more designated jurisdictions.
36(1.27)Despite subsection (8), if an administrator files an actuarial valuation report respecting a multi-jurisdictional pension plan that has a review date that is between December 31, 2016, and December 31, 2018, both dates inclusive, the administrator may request that
(a) the existing solvency deficiencies of the pension plan be consolidated, and
(b) the amount of special payments under paragraph (1)(c) be reduced by extending the period referred to in that paragraph to ten years.
36(1.28)The Superintendent shall grant a request referred to in subsection (1.27), if
(a) the administrator has not previously made a request under that subsection with respect to the multi-jurisdictional pension plan, and
(b) an actuary certifies that the assets of the pension plan are sufficient to provide for all the expected payments under the pension plan during the extended amortization period.
36(1.29)If the Superintendent grants a request referred to in subsection (1.27),
(a) the administrator shall ensure that the multi-jurisdictional pension plan is reviewed by, and an actuarial valuation report respecting the pension plan is prepared by, an actuary as of the date that is not more than 12 months after the review date of the previous report until the earlier of
(i) the review date of the actuarial valuation report that identifies that no special payments are required with respect to the consolidated existing solvency deficiencies, and
(ii) the end of the ten-year period referred to in paragraph (1.27)(b),
(b) the pension plan shall not be amended during the ten-year period referred to in paragraph (1.27)(b), if the amendment is not required under the Act, this Regulation, the pension benefits legislation of a designated jurisdiction or the Income Tax Act (Canada) unless
(i) the employer, or a person required to make contributions on behalf of the employer, contributes the full cost of the amendment to the pension plan on a solvency basis within 90 days after the amendment, or
(ii) no further special payments are required with respect to the consolidated existing solvency deficiencies,
(c) each time a statement referred to in subsection 15(1) is provided to members between the date the request was granted by the Superintendent and the end of the ten-year period referred to in paragraph (1.27)(b), both dates inclusive, it shall contain the following additional information:
(i) an explanation of why the request was made; and
(ii) a comparison of the total annual employer contributions for each of the next ten years without consolidating the existing solvency deficiencies and with consolidating the existing solvency deficiencies,
(d) the administrator shall provide to each former member and other person entitled to payments under the pension plan a copy of any statement referred to in subsection 15(1) provided in accordance with paragraph (c), modified as necessary to apply to him or her, and
(e) the administrator shall provide the Superintendent with
(i) a copy of the information referred to in paragraph (c)(i) and (ii) each time the information is provided to members, former members and other persons entitled to payments under the pension plan, and
(ii) certification of the date on which the information was provided to the members, former members and other persons entitled to payments under the pension plan.
36(1.291)If the Superintendent grants a request referred to in subsection (1.27) and a special payment was made between the review date of the actuarial valuation report in question and the date the report is filed with the Superintendent that is in an amount in excess of the amount determined for special payments over the extended amortization period, the difference between the amount of the special payment and amount determined for special payments over the extended amortization period shall not be considered an overpayment and shall not be used to further reduce the amount of special payments under subsection (1.27).
36(1.3)If the Superintendent reduces the amount of special payments in accordance with subsection (1.2), (1.22) or (1.27), the employer shall
(a) immediately advise the Superintendent of any event or circumstance that may place the employer at a risk of not making a special payment, and
(b) provide the Superintendent with any requested information that may disclose an event or circumstance that may place the employer at a risk of not making a special payment.
36(1.4)An event or circumstance referred to in subsection (1.3) that, in the opinion of the Superintendent, significantly endangers the interests of the members or former members of a pension plan is a prescribed event or circumstance for the purposes of paragraph 61(1)(h) of the Act.
36(2)The remaining special payments referred to in paragraph (1)(a) shall be determined after utilizing any unused actuarial gains in existence on the commencement of section 10 of the Act.
36(3)The period of fifteen years established under paragraph (1)(b) in which an actuarial loss may be liquidated shall, for the purposes of the first actuarial valuation report subsequent to a substitute report filed under subsection 9(3), commence to run on the commencement of section 10 of the Act.
36(4)If payment of a new series of special payments is commenced under paragraph (1)(c), the amounts referred to in paragraphs (1)(a) and (b) in respect of any portion of an amortization period extending beyond the end of the period established for the installments required under paragraph (1)(c) shall be reduced or eliminated so that the total amount of the present value of all special payments and the going concern assets is equal to the going concern liability.
36(5)Subject to subsection 41(1), an employer or person required to make contributions on behalf of an employer may, instead of making the special payments required under paragraphs (1)(b) and (c), make scheduled dollar payments in accordance with subsections (2), (3) and (4) in monthly installments that
(a) commence as of the review date of the actuarial valuation report in which the actuarial loss or solvency deficiency is identified, and
(b) are determined by reference to a schedule of dollar payments determined in accordance with subsection (6).
36(6)A schedule of dollar payments referred to in subsection (5) shall be determined so that
(a) each scheduled dollar payment is a consistent percentage of the projected future payroll of members, as projected at the date of establishing the schedule,
(b) the present value of the scheduled dollar payments is equal to the total amount of any actuarial loss and any solvency deficiency to be liquidated at the date of establishing the schedule,
(c) if there is an actuarial loss, the projected future payroll is determined using the same actuarial assumptions used in the going concern valuation in which the actuarial loss was identified, and
(d) the amortization period for each series of scheduled dollar payments is not greater than the periods provided for under paragraph (1)(b) or (c), as the case may be.
36(7)For the purposes of paragraph (6)(b), the present value of scheduled dollar payments shall be determined
(a) for scheduled dollar payments relating to an actuarial loss, using the interest rate assumed in the going concern valuation, and
(b) for scheduled dollar payments relating to a solvency deficiency, using the interest rate assumed in the solvency valuation.
36(8)Each actuarial loss and each solvency deficiency shall be funded separately and shall not be combined with any other actuarial loss or solvency deficiency unless the plan is wound up.
2001-1; 2003-87; 2008-10; 2011-71; 2017-35
Special payments by employer
36(0.1)In subsections (1.22), (1.23) and (1.24), “existing solvency deficiencies” , in respect of a pension plan, means the present value of all special payments as of the review date of the actuarial valuation report in question, other than payments required only by reason of section 65 of the Act, that are scheduled to be paid after that date and that are required with respect to any solvency deficiency determined under section 10, except for a solvency deficiency resulting from an amendment to the pension plan that was not required under the Act, this Regulation, the pension benefits legislation of a designated jurisdiction or the Income Tax Act (Canada) made between January 1, 2010, and the review date of the actuarial valuation report in question, both dates inclusive. (déficit de solvabilité existant)
36(1)Subject to subsections (2) and (4), section 40 and subsection 41(1), the total amount of special payments made under paragraph 35(2)(c) to amortize an experience deficiency, an initial unfunded liability, an actuarial loss or a solvency deficiency shall not be less than the sum of
(a) the amount of any remaining special payments required to liquidate any experience deficiency or initial unfunded liability, in equal monthly installments over the lesser of
(i) the period over which the experience deficiency or initial unfunded liability is amortized on the commencement of section 10 of the Act, and
(ii) a period of fifteen years after the commencement of section 10 of the Act,
(b) subject to subsection (5), the amount of special payments that must be paid in order to liquidate any actuarial loss, with interest calculated using the interest rate assumed in the going concern valuation, in equal monthly installments over a period of not more than fifteen years commencing on the review date of the actuarial valuation report in which the actuarial loss is identified, and
(c) subject to subsections (1.1), (1.2), (1.23) and (5), the amount of special payments that must be paid in order to liquidate any solvency deficiency, with interest calculated using the interest rate assumed in the solvency valuation, in equal monthly installments over a period of not more than five years commencing on the review date of the actuarial valuation report in which the solvency deficiency is identified.
36(1.1)The Superintendent may reduce the amount of special payments under paragraph (1)(c) by extending the period in paragraph (1)(c) to a date on or before January 31, 2016, if the special payments required under paragraph (1)(c) have been rendered onerous as a result of liabilities for escalated adjustments having been taken into account in the first solvency valuation after January 31, 2001.
36(1.2)The Superintendent may reduce the amount of special payments under paragraph (1)(c) by extending the period in paragraph (1)(c) to a date on or before December 31, 2018, if
(a) the administrator files an actuarial valuation report with the Superintendent that has a review date of no more than nine months prior to the date upon which a request is made under this subsection for a reduction in the amount of special payments,
(b) an actuary certifies that the pension plan has sufficient assets to meet its cash flow requirements during the extended amortization period,
(c) the employer provides to each member, former member and other person entitled to payments under the pension plan
(i) written notice of the request for a reduction in the amount of special payments and an explanation for the request, and
(ii) a request that any comments or questions regarding the request for the reduction be submitted to the employer and the Superintendent,
(d) the employer provides the Superintendent with
(i) a copy of the notice and request required under paragraph (c), and
(ii) certification of the last day upon which the notice and request were provided to a member, former member or other person, and
(e) it is at least forty-five days after the date certified to the Superintendent under subparagraph (d)(ii).
36(1.21)On or after the commencement of this subsection, the Superintendent shall not reduce the amount of special payments under paragraph (1)(c) by extending the period in that paragraph under subsection (1.2).
36(1.22)Despite subsection (8), if an administrator files an actuarial valuation report with a review date that is between April 1, 2010, and January 1, 2012, both dates inclusive, the administrator may request that
(a) the existing solvency deficiencies of the pension plan be consolidated, and
(b) the amount of special payments under paragraph (1)(c) be reduced by extending the period referred to in that paragraph to ten years.
36(1.23)The Superintendent shall grant a request referred to in subsection (1.22), if
(a) the administrator has not previously made a request under that subsection with respect to the pension plan,
(b) an actuary certifies that the assets of the pension plan are sufficient to provide for all the expected payments under the pension plan during the extended amortization period,
(c) the employer provides to each member, former member and other person entitled to payments under the pension plan written notice of the request that contains:
(i) an explanation for the request;
(ii) a comparison of the total annual employer contributions for each of the next ten years without consolidating the existing solvency deficiencies and with consolidating the existing solvency deficiencies; and
(iii) a statement that any comments or questions regarding the request may be submitted to the employer; and
(d) the employer provides the Superintendent with
(i) a copy of the notice required under paragraph (c), and
(ii) certification of the date on which the notice was provided to the members, former members and other persons entitled to payments under the pension plan.
36(1.24)If the Superintendent grants a request referred to in subsection (1.22),
(a) the administrator shall ensure that the pension plan is reviewed by, and an actuarial valuation report respecting the pension plan is prepared by, an actuary as of the date that is not more than twelve months after the review date of the previous report until
(i) the review date of the actuarial valuation report that identifies that no special payments are required with respect to the consolidated existing solvency deficiencies, or
(ii) the end of the ten year period referred to in paragraph (1.22)(b), whichever is earlier, and
(b) the pension plan shall not be amended during the ten year period referred to in paragraph (1.22)(b), if the amendment is not required under the Act, this Regulation, the pension benefits legislation of a designated jurisdiction or the Income Tax Act (Canada) unless
(i) the employer, or a person required to make contributions on behalf of the employer, contributes the full cost of the amendment to the pension plan on a solvency basis within ninety days after the amendment, or
(ii) no further special payments are required with respect to the consolidated existing solvency deficiencies.
36(1.25)If the Superintendent grants a request referred to in subsection (1.22) and a special payment had been made between the review date of the actuarial valuation report in question and the date the report is filed that is in an amount in excess of the amount determined for special payments over the extended amortization period, the difference between the amount of the special payment and amount determined for special payments over the extended amortization period shall not be considered an overpayment and shall not be used to further reduce the amount of special payments under subsection (1.22).
36(1.3)If the Superintendent reduces the amount of special payments in accordance with subsection (1.2) or (1.22), the employer shall
(a) immediately advise the Superintendent of any event or circumstance that may place the employer at a risk of not making a special payment, and
(b) provide the Superintendent with any requested information that may disclose an event or circumstance that may place the employer at a risk of not making a special payment.
36(1.4)An event or circumstance referred to in subsection (1.3) that, in the opinion of the Superintendent, significantly endangers the interests of the members or former members of a pension plan is a prescribed event or circumstance for the purposes of paragraph 61(1)(h) of the Act.
36(2)The remaining special payments referred to in paragraph (1)(a) shall be determined after utilizing any unused actuarial gains in existence on the commencement of section 10 of the Act.
36(3)The period of fifteen years established under paragraph (1)(b) in which an actuarial loss may be liquidated shall, for the purposes of the first actuarial valuation report subsequent to a substitute report filed under subsection 9(3), commence to run on the commencement of section 10 of the Act.
36(4)If payment of a new series of special payments is commenced under paragraph (1)(c), the amounts referred to in paragraphs (1)(a) and (b) in respect of any portion of an amortization period extending beyond the end of the period established for the installments required under paragraph (1)(c) shall be reduced or eliminated so that the total amount of the present value of all special payments and the going concern assets is equal to the going concern liability.
36(5)Subject to subsection 41(1), an employer or person required to make contributions on behalf of an employer may, instead of making the special payments required under paragraphs (1)(b) and (c), make scheduled dollar payments in accordance with subsections (2), (3) and (4) in monthly installments that
(a) commence as of the review date of the actuarial valuation report in which the actuarial loss or solvency deficiency is identified, and
(b) are determined by reference to a schedule of dollar payments determined in accordance with subsection (6).
36(6)A schedule of dollar payments referred to in subsection (5) shall be determined so that
(a) each scheduled dollar payment is a consistent percentage of the projected future payroll of members, as projected at the date of establishing the schedule,
(b) the present value of the scheduled dollar payments is equal to the total amount of any actuarial loss and any solvency deficiency to be liquidated at the date of establishing the schedule,
(c) if there is an actuarial loss, the projected future payroll is determined using the same actuarial assumptions used in the going concern valuation in which the actuarial loss was identified, and
(d) the amortization period for each series of scheduled dollar payments is not greater than the periods provided for under paragraph (1)(b) or (c), as the case may be.
36(7)For the purposes of paragraph (6)(b), the present value of scheduled dollar payments shall be determined
(a) for scheduled dollar payments relating to an actuarial loss, using the interest rate assumed in the going concern valuation, and
(b) for scheduled dollar payments relating to a solvency deficiency, using the interest rate assumed in the solvency valuation.
36(8)Each actuarial loss and each solvency deficiency shall be funded separately and shall not be combined with any other actuarial loss or solvency deficiency unless the plan is wound up.
2001-1; 2003-87; 2008-10; 2011-71
Special payments by employer
36(0.1)In subsections (1.22), (1.23) and (1.24), “existing solvency deficiencies” , in respect of a pension plan, means the present value of all special payments as of the review date of the actuarial valuation report in question, other than payments required only by reason of section 65 of the Act, that are scheduled to be paid after that date and that are required with respect to any solvency deficiency determined under section 10, except for a solvency deficiency resulting from an amendment to the pension plan that was not required under the Act, this Regulation, the pension benefits legislation of a designated jurisdiction or the Income Tax Act (Canada) made between January 1, 2010, and the review date of the actuarial valuation report in question, both dates inclusive. (déficit de solvabilité existant)
36(1)Subject to subsections (2) and (4), section 40 and subsection 41(1), the total amount of special payments made under paragraph 35(2)(c) to amortize an experience deficiency, an initial unfunded liability, an actuarial loss or a solvency deficiency shall not be less than the sum of
(a) the amount of any remaining special payments required to liquidate any experience deficiency or initial unfunded liability, in equal monthly installments over the lesser of
(i) the period over which the experience deficiency or initial unfunded liability is amortized on the commencement of section 10 of the Act, and
(ii) a period of fifteen years after the commencement of section 10 of the Act,
(b) subject to subsection (5), the amount of special payments that must be paid in order to liquidate any actuarial loss, with interest calculated using the interest rate assumed in the going concern valuation, in equal monthly installments over a period of not more than fifteen years commencing on the review date of the actuarial valuation report in which the actuarial loss is identified, and
(c) subject to subsections (1.1), (1.2), (1.23) and (5), the amount of special payments that must be paid in order to liquidate any solvency deficiency, with interest calculated using the interest rate assumed in the solvency valuation, in equal monthly installments over a period of not more than five years commencing on the review date of the actuarial valuation report in which the solvency deficiency is identified.
36(1.1)The Superintendent may reduce the amount of special payments under paragraph (1)(c) by extending the period in paragraph (1)(c) to a date on or before January 31, 2016, if the special payments required under paragraph (1)(c) have been rendered onerous as a result of liabilities for escalated adjustments having been taken into account in the first solvency valuation after January 31, 2001.
36(1.2)The Superintendent may reduce the amount of special payments under paragraph (1)(c) by extending the period in paragraph (1)(c) to a date on or before December 31, 2018, if
(a) the administrator files an actuarial valuation report with the Superintendent that has a review date of no more than nine months prior to the date upon which a request is made under this subsection for a reduction in the amount of special payments,
(b) an actuary certifies that the pension plan has sufficient assets to meet its cash flow requirements during the extended amortization period,
(c) the employer provides to each member, former member and other person entitled to payments under the pension plan
(i) written notice of the request for a reduction in the amount of special payments and an explanation for the request, and
(ii) a request that any comments or questions regarding the request for the reduction be submitted to the employer and the Superintendent,
(d) the employer provides the Superintendent with
(i) a copy of the notice and request required under paragraph (c), and
(ii) certification of the last day upon which the notice and request were provided to a member, former member or other person, and
(e) it is at least forty-five days after the date certified to the Superintendent under subparagraph (d)(ii).
36(1.21)On or after the commencement of this subsection, the Superintendent shall not reduce the amount of special payments under paragraph (1)(c) by extending the period in that paragraph under subsection (1.2).
36(1.22)Despite subsection (8), if an administrator files an actuarial valuation report with a review date that is between April 1, 2010, and January 1, 2012, both dates inclusive, the administrator may request that
(a) the existing solvency deficiencies of the pension plan be consolidated, and
(b) the amount of special payments under paragraph (1)(c) be reduced by extending the period referred to in that paragraph to ten years.
36(1.23)The Superintendent shall grant a request referred to in subsection (1.22), if
(a) the administrator has not previously made a request under that subsection with respect to the pension plan,
(b) an actuary certifies that the assets of the pension plan are sufficient to provide for all the expected payments under the pension plan during the extended amortization period,
(c) the employer provides to each member, former member and other person entitled to payments under the pension plan written notice of the request that contains:
(i) an explanation for the request;
(ii) a comparison of the total annual employer contributions for each of the next ten years without consolidating the existing solvency deficiencies and with consolidating the existing solvency deficiencies; and
(iii) a statement that any comments or questions regarding the request may be submitted to the employer; and
(d) the employer provides the Superintendent with
(i) a copy of the notice required under paragraph (c), and
(ii) certification of the date on which the notice was provided to the members, former members and other persons entitled to payments under the pension plan.
36(1.24)If the Superintendent grants a request referred to in subsection (1.22),
(a) the administrator shall ensure that the pension plan is reviewed by, and an actuarial valuation report respecting the pension plan is prepared by, an actuary as of the date that is not more than twelve months after the review date of the previous report until
(i) the review date of the actuarial valuation report that identifies that no special payments are required with respect to the consolidated existing solvency deficiencies, or
(ii) the end of the ten year period referred to in paragraph (1.22)(b), whichever is earlier, and
(b) the pension plan shall not be amended during the ten year period referred to in paragraph (1.22)(b), if the amendment is not required under the Act, this Regulation, the pension benefits legislation of a designated jurisdiction or the Income Tax Act (Canada) unless
(i) the employer, or a person required to make contributions on behalf of the employer, contributes the full cost of the amendment to the pension plan on a solvency basis within ninety days after the amendment, or
(ii) no further special payments are required with respect to the consolidated existing solvency deficiencies.
36(1.25)If the Superintendent grants a request referred to in subsection (1.22) and a special payment had been made between the review date of the actuarial valuation report in question and the date the report is filed that is in an amount in excess of the amount determined for special payments over the extended amortization period, the difference between the amount of the special payment and amount determined for special payments over the extended amortization period shall not be considered an overpayment and shall not be used to further reduce the amount of special payments under subsection (1.22).
36(1.3)If the Superintendent reduces the amount of special payments in accordance with subsection (1.2) or (1.22), the employer shall
(a) immediately advise the Superintendent of any event or circumstance that may place the employer at a risk of not making a special payment, and
(b) provide the Superintendent with any requested information that may disclose an event or circumstance that may place the employer at a risk of not making a special payment.
36(1.4)An event or circumstance referred to in subsection (1.3) that, in the opinion of the Superintendent, significantly endangers the interests of the members or former members of a pension plan is a prescribed event or circumstance for the purposes of paragraph 61(1)(h) of the Act.
36(2)The remaining special payments referred to in paragraph (1)(a) shall be determined after utilizing any unused actuarial gains in existence on the commencement of section 10 of the Act.
36(3)The period of fifteen years established under paragraph (1)(b) in which an actuarial loss may be liquidated shall, for the purposes of the first actuarial valuation report subsequent to a substitute report filed under subsection 9(3), commence to run on the commencement of section 10 of the Act.
36(4)If payment of a new series of special payments is commenced under paragraph (1)(c), the amounts referred to in paragraphs (1)(a) and (b) in respect of any portion of an amortization period extending beyond the end of the period established for the installments required under paragraph (1)(c) shall be reduced or eliminated so that the total amount of the present value of all special payments and the going concern assets is equal to the going concern liability.
36(5)Subject to subsection 41(1), an employer or person required to make contributions on behalf of an employer may, instead of making the special payments required under paragraphs (1)(b) and (c), make scheduled dollar payments in accordance with subsections (2), (3) and (4) in monthly installments that
(a) commence as of the review date of the actuarial valuation report in which the actuarial loss or solvency deficiency is identified, and
(b) are determined by reference to a schedule of dollar payments determined in accordance with subsection (6).
36(6)A schedule of dollar payments referred to in subsection (5) shall be determined so that
(a) each scheduled dollar payment is a consistent percentage of the projected future payroll of members, as projected at the date of establishing the schedule,
(b) the present value of the scheduled dollar payments is equal to the total amount of any actuarial loss and any solvency deficiency to be liquidated at the date of establishing the schedule,
(c) if there is an actuarial loss, the projected future payroll is determined using the same actuarial assumptions used in the going concern valuation in which the actuarial loss was identified, and
(d) the amortization period for each series of scheduled dollar payments is not greater than the periods provided for under paragraph (1)(b) or (c), as the case may be.
36(7)For the purposes of paragraph (6)(b), the present value of scheduled dollar payments shall be determined
(a) for scheduled dollar payments relating to an actuarial loss, using the interest rate assumed in the going concern valuation, and
(b) for scheduled dollar payments relating to a solvency deficiency, using the interest rate assumed in the solvency valuation.
36(8)Each actuarial loss and each solvency deficiency shall be funded separately and shall not be combined with any other actuarial loss or solvency deficiency unless the plan is wound up.
2001-1; 2003-87; 2008-10; 2011-71
Special payments by employer
36(1)Subject to subsections (2) and (4), section 40 and subsection 41(1), the total amount of special payments made under paragraph 35(2)(c) to amortize an experience deficiency, an initial unfunded liability, an actuarial loss or a solvency deficiency shall not be less than the sum of
(a) the amount of any remaining special payments required to liquidate any experience deficiency or initial unfunded liability, in equal monthly installments over the lesser of
(i) the period over which the experience deficiency or initial unfunded liability is amortized on the commencement of section 10 of the Act, and
(ii) a period of fifteen years after the commencement of section 10 of the Act,
(b) subject to subsection (5), the amount of special payments that must be paid in order to liquidate any actuarial loss, with interest calculated using the interest rate assumed in the going concern valuation, in equal monthly installments over a period of not more than fifteen years commencing on the review date of the actuarial valuation report in which the actuarial loss is identified, and
(c) subject to subsections (1.1) and (5), the amount of special payments that must be paid in order to liquidate any solvency deficiency, with interest calculated using the interest rate assumed in the solvency valuation, in equal monthly installments over a period of not more than five years commencing on the review date of the actuarial valuation report in which the solvency deficiency is identified.
36(1.1)The Superintendent may reduce the amount of special payments under paragraph (1)(c) by extending the period in paragraph (1)(c) to a date on or before January 31, 2016, if the special payments required under paragraph (1)(c) have been rendered onerous as a result of liabilities for escalated adjustments having been taken into account in the first solvency valuation after January 31, 2001.
36(1.2)The Superintendent may reduce the amount of special payments under paragraph (1)(c) by extending the period in paragraph (1)(c) to a date on or before December 31, 2018, if
(a) the administrator files an actuarial valuation report with the Superintendent that has a review date of no more than nine months prior to the date upon which a request is made under this subsection for a reduction in the amount of special payments,
(b) an actuary certifies that the pension plan has sufficient assets to meet its cash flow requirements during the extended amortization period,
(c) the employer provides to each member, former member and other person entitled to payments under the pension plan
(i) written notice of the request for a reduction in the amount of special payments and an explanation for the request, and
(ii) a request that any comments or questions regarding the request for the reduction be submitted to the employer and the Superintendent,
(d) the employer provides the Superintendent with
(i) a copy of the notice and request required under paragraph (c), and
(ii) certification of the last day upon which the notice and request were provided to a member, former member or other person, and
(e) it is at least forty-five days after the date certified to the Superintendent under subparagraph (d)(ii).
36(1.3)If the Superintendent reduces the amount of special payments in accordance with subsection (1.2), the employer shall
(a) immediately advise the Superintendent of any event or circumstance that may place the employer at a risk of not making a special payment, and
(b) provide the Superintendent with any requested information that may disclose an event or circumstance that may place the employer at a risk of not making a special payment.
36(1.4)An event or circumstance referred to in subsection (1.3) that, in the opinion of the Superintendent, significantly endangers the interests of the members or former members of a pension plan is a prescribed event or circumstance for the purposes of paragraph 61(1)(h) of the Act.
36(2)The remaining special payments referred to in paragraph (1)(a) shall be determined after utilizing any unused actuarial gains in existence on the commencement of section 10 of the Act.
36(3)The period of fifteen years established under paragraph (1)(b) in which an actuarial loss may be liquidated shall, for the purposes of the first actuarial valuation report subsequent to a substitute report filed under subsection 9(3), commence to run on the commencement of section 10 of the Act.
36(4)If payment of a new series of special payments is commenced under paragraph (1)(c), the amounts referred to in paragraphs (1)(a) and (b) in respect of any portion of an amortization period extending beyond the end of the period established for the installments required under paragraph (1)(c) shall be reduced or eliminated so that the total amount of the present value of all special payments and the going concern assets is equal to the going concern liability.
36(5)Subject to subsection 41(1), an employer or person required to make contributions on behalf of an employer may, instead of making the special payments required under paragraphs (1)(b) and (c), make scheduled dollar payments in accordance with subsections (2), (3) and (4) in monthly installments that
(a) commence as of the review date of the actuarial valuation report in which the actuarial loss or solvency deficiency is identified, and
(b) are determined by reference to a schedule of dollar payments determined in accordance with subsection (6).
36(6)A schedule of dollar payments referred to in subsection (5) shall be determined so that
(a) each scheduled dollar payment is a consistent percentage of the projected future payroll of members, as projected at the date of establishing the schedule,
(b) the present value of the scheduled dollar payments is equal to the total amount of any actuarial loss and any solvency deficiency to be liquidated at the date of establishing the schedule,
(c) if there is an actuarial loss, the projected future payroll is determined using the same actuarial assumptions used in the going concern valuation in which the actuarial loss was identified, and
(d) the amortization period for each series of scheduled dollar payments is not greater than the periods provided for under paragraph (1)(b) or (c), as the case may be.
36(7)For the purposes of paragraph (6)(b), the present value of scheduled dollar payments shall be determined
(a) for scheduled dollar payments relating to an actuarial loss, using the interest rate assumed in the going concern valuation, and
(b) for scheduled dollar payments relating to a solvency deficiency, using the interest rate assumed in the solvency valuation.
36(8)Each actuarial loss and each solvency deficiency shall be funded separately and shall not be combined with any other actuarial loss or solvency deficiency unless the plan is wound up.
2001-1; 2003-87; 2008-10