Calculation of adjusted solvency asset amount and solvency excess (deficiency)

	31.12.2019	31.12.2018
Average solvency ratio (F)	102.5%	98.97%
Solvency liabilities (E)	$37,466,000	$36,875,000
Adjusted solvency asset amount (E x F)	$38,418,000	$36,495,000
Solvency excess (deficiency)	$952,000	($380,000)

Since there is a solvency excess at December 31, 2019, no solvency special payment is required.

Determination of Amount which Can Be Used to Reduce Current Service Contribution

The Act does not require the employer to contribute to the Plan until after the lesser of the going concern excess, and the amount by which the solvency assets exceed 105% of the solvency liabilities, has been applied towards the employer’s current service cost. The determination of such amounts is as follows:

	31.12.2019
Going concern excess (A)	$8,092,000
Solvency assets (B)	$39,468,000
Solvency liabilities × 1.05 (C)	$39,339,300
Maximum amount which can be used to reduce Current Service Contribution = Min (A, B – C) not less than $0

Notwithstanding this calculation, the terms of the Plan or collective agreement may require the Company to make current service cost contributions.