Assumptions

We have used the same going concern valuation assumptions and methods as were used for the previous valuation.

A summary of the going concern methods and assumptions is provided in Appendix C.

The hypothetical wind-up and solvency assumptions have been updated to reflect market conditions at the valuation date. A summary of the hypothetical wind-up and solvency methods and assumptions is provided in Appendix D.

Regulatory Environment and Actuarial Standards

There have been no changes to the Act or the relevant regulations that impact the funding of the Plan.

OSFI has published a draft Instruction Guide for the Preparation of Actuarial Reports for Defined Benefit Pension Plans in December 2019. The proposed revisions detailed in the draft Guide do not apply to actuarial valuations as at December 31, 2019. They will apply to actuarial reports with a valuation date to be specified in the final version of the revised Guide. These changes will be reflected in a subsequent valuation report, once they are finalized.

In the context of the current COVID-19 crisis, Finance Minister Bill Morneau has announced on April 15, 2020 that the government will provide immediate, temporary relief to sponsors of federally regulated, defined benefit pension plans. This relief will be in the form of a moratorium, through the remainder of 2020, on solvency payment requirements for defined benefit plans. This measure will require regulatory amendments, the details of which have not yet been specified. This announcement has no impact on this Plan.

Subsequent Events

After checking with representatives of the Company, to the best of our knowledge there have been no events subsequent to the valuation date that, in our opinion, would have a material impact on the results of the valuation as at December 31, 2019. However, since the valuation date, there have been significant fluctuations in the financial markets, which may have led to a deterioration of the funded position of the Plan after the valuation date. Our valuation reflects the financial position of the Plan as of the valuation date and does not take into account any experience after the valuation date.