Minimum Funding Requirements

The Act prescribes the minimum contributions that Transit Windsor must make to the Plan. The minimum contributions in respect of a defined benefit component of a pension plan are comprised of going concern current service cost and special payments to fund any going concern or solvency shortfalls.

There is a going concern excess and the solvency assets exceed 105% of the solvency liabilities. Under these circumstances, 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 exceeds 105% of the solvency liabilities, has been applied towards the employer’s current service cost. The determination of the amounts described above is shown in Appendix A.

Once such amount has been so applied, monthly employer contributions must resume. On the basis of the assumptions and methods described in this report, the rule for determining the minimum required employer monthly contributions, as well as an estimate of the employer contributions, from the valuation date until the next required valuation are as follows:

Period beginning	Employer’s contribution rule		Estimated employer’s contributions
	Explicit monthly expense allowance	Minimum monthly special payments	Monthly expense allowance	Amount which can be used to reduce current service contribution 2	Minimum monthly contributions
January 1, 2020	$8,333	$0	$8,333	$8,333	$0

The development of the minimum special payments is summarized in Appendix A.

2 Notwithstanding the funding excess in the Plan, the terms of the Plan or collective agreement may require the Company to make current service cost contributions.