R-15.1, r. 3.1 - Regulation providing temporary relief measures for the funding of solvency deficiencies

Section 12 Disposition versions

2012-09-01

12. At the date on which the valuation of the benefits of the members and beneficiaries affected by the withdrawal of an employer that is a party to a multi-employer pension plan is made, the amount referred to in the third paragraph of section 230.0.0.9 of the Act is equal, at the time the assets of the plan are distributed, to element “SR” in the following formula:

A + B - C = SR

“A” represents the amount in question established at the date of the last actuarial valuation;

“B” represents the employer contributions which, without reference to this Regulation, with the exception section 11, would have been established at the date of the last actuarial valuation for the fiscal year ending at the date of the actuarial valuation concerned;

“C” corresponds to the greater of the following amounts:

i.  the employer contributions established at the date of the last actuarial valuation for the fiscal year ending at the date of the actuarial valuation concerned; or

ii.  the total of the employer contributions paid since the last actuarial valuation for the fiscal year ending at the date of the actuarial valuation concerned and the amount of any letter of credit provided since the date of the previous valuation pursuant to section 42.1 of the Act that relates to those employer contributions.

As at the date on which the valuation of the benefits of the members and beneficiaries mentioned in the first paragraph is carried out, the amount referred to in the third paragraph of section 230.0.0.9 of the Act corresponds, after the assets of the plan have been distributed, to element “S” in the following formula:

SR - (X - Y) = S

“SR” represents element “SR” determined pursuant to the first paragraph;

“X” represents the value of the portion of the plan’s assets that would be allocated to the group of benefits of those members and beneficiaries at the time of the distribution provided for in section 222 of the Act, had the assets of the plan been, for the distribution, increased by element “SR” determined pursuant to the first paragraph;

“Y” represents the value of the portion of the assets allocated to that group at the time of the distribution.

Those amounts and contributions bear interest at the rate of return of the pension fund. Should the date of the last actuarial valuation or the date as at which the valuation of the benefits of the members and beneficiaries is carried out not correspond to the date of the end of a fiscal year of the plan, the only payments taken into account are those related to the amortization payments, current service contributions and special amortization payments that became due during the period starting the day following the last actuarial valuation and ending on the date of the valuation of benefits.

O.C. 503-2012, s. 12.