Other Considerations

Differences between Valuation Bases

There is no provision in the minimum funding requirements to fund the difference between the hypothetical wind-up and solvency shortfalls, if any.

In addition, although minimum funding requirements do include a requirement to fund the going concern current service cost, there is no requirement to fund the expected growth in the hypothetical wind-up or solvency liability after the valuation date, which could be greater than the going concern current service cost.

Timing of Contributions

Required contributions must be remitted monthly, not later than 30 days after the end of the period to which they apply. Outstanding contributions will accrue with interest.

Retroactive Contributions

The Company must contribute the excess, if any, of the minimum contribution recommended in this report over contributions actually made in respect of the period following the valuation date. This contribution, along with an allowance for interest, is due immediately following the date this report is filed.

Any over contributions made prior to filing this report may be used to reduce the otherwise required contributions to be made following the filing of this report.

Payment of Benefits

The Act imposes certain restrictions on the payment of lump sums from the Plan when the solvency ratio revealed in an actuarial valuation is less than one. If the solvency ratio shown in this report is less than one, the plan administrator should ensure that the monthly special payments are sufficient to meet the requirements of the Act to allow for the full payment of benefits, and otherwise should take the prescribed actions.

Specifically, based on the Directives of the Superintendent of Financial Institutions pursuant to the Act, transfers out of the Plan may be made in full provided an amount equal to the transfer deficiency has been remitted to the pension fund in addition to the minimum special payments.

However, OSFI has amended its Directives to implement a full freeze on portability transfers and annuity purchases relating to defined benefit provisions of pension plans effective March 27, 2020. Although this measure is temporary, there is no set date for the lift of the freeze. During the period of the freeze, transfers and annuity purchases are still possible if Superintendent’s approval is obtained.