134. Where, at the date of an actuarial valuation, the amortization amounts to be paid exceed the amount to be funded to ensure that the plan is fully funded at that date, the amortization amounts to be paid in connection with one or several unfunded actuarial liabilities or with an amount determined pursuant to subparagraph 4 of the second paragraph of section 137 may be reduced, by such excess amount, which may, in no case, be used for any other purpose. The reduction shall first be applied to the amounts of amortization payable after the fifth year following the date of the actuarial valuation and subsequently to the amounts of amortization payable until the end of the fifth year; in addition, the reduction must be made proportionately and in the order prescribed by section 133.
However, where the degree of solvency of a pension plan is less than 100%, no reduction authorized by the first paragraph may be made that would cause an amount payable to be determined pursuant to subparagraph 4 of the second paragraph of section 137 or to be higher than it would have been without the reduction. This paragraph may not operate to prevent the reduction of the amortization amounts which, in relation to an improvement unfunded actuarial liability, remain to be paid after the fifth year following the date of the actuarial valuation.
If the reduction option under section 133 is exercised, no reduction under this section may be made before that reduction. Moreover, if an improvement unfunded actuarial liability is determined at the date of the actuarial valuation, a reduction under this section can only be made before the determination of the unfunded liability. In such a case and for the sole purposes of the second paragraph, the liabilities of the plan on a solvency basis may be determined without reference to the related amendment to the plan.
1989, c. 38, s. 134; 1994, c. 24, s. 9; 2000, c. 41, s. 80.