Valuation Results – Solvency

Overview

The Act also requires the financial position of the Plan to be determined on a solvency basis. The financial position on a solvency basis is determined in a similar manner to the Hypothetical Wind-up Basis, except for the following:

Exceptions	Reflected in Valuation Based on the Terms ofEngagement
The circumstance under which the Plan is assumed to be wound up could differ for the solvency and hypothetical wind-up valuations.	The same circumstances were assumed for the solvency valuation as were assumed for the hypothetical wind-up valuation
The benefit rate increases coming into effect after the valuation date can be reflected in the solvency valuation.	Not applicable.

Under the Federal pension legislation, the minimum funding requirements on a solvency basis are based on an alternative solvency basis under which the solvency deficiency and the resulting solvency special payments are based on an average solvency ratio determined over three years (current year plus the previous two) subject to prescribed adjustments. The determination of the solvency deficiency on that basis is detailed in Appendix A.

Financial Position

The financial position on a solvency basis is the same as the financial position on the Hypothetical Wind-up basis shown in the previous section. The solvency ratio is 105.3%, compared to 101.7% at the previous valuation.