Air Canada Pension Plan Funding Regulations, 2014 — 5
Funding during each plan year 5 (1) Every plan must be funded in each plan year by (a) contributions that are equal to the normal cost of the plan; (b) the amount that is determined under subsection (2); and (c) the amount that is required to be paid by an employer under a defined contribution provision in that plan. Special payment (2) For the purposes of paragraph (1)(b), the amount required to be paid to each plan for a plan year is equal to the amount determined (a) in the case where the aggregate amount of the solvency deficiencies of all plans is equal to or greater than $150,000,000, by the formula A x B/C where A is $150,000,000, B is the amount of the solvency deficiency of the plan, and C is the aggregate amount of the solvency deficiencies of all plans; or (b) in the case where the aggregate amount of the solvency deficiencies of all plans is less than $150,000,000, by the formula D + ($150,000,000 – E) x F/G where D is the amount of the solvency deficiency of the plan, E is the aggregate amount of the solvency deficiencies of all plans, F is the amount of the solvency liabilities of the plan, and G is the aggregate amount of the solvency liabilities of all plans. Funding for 2020 plan year (3) Unless the whole of the pension plan is terminated or unless Air Canada provides notice in accordance with subsection 6(1), the plan must also be funded, for the 2020 plan year, by the amount that is determined under subsection (4), and that amount must be paid by December 31, 2020. Special payment for 2020 plan year (4) For the purposes of subsection (3), the amount required to be paid to each plan for the plan year is equal to the amount determined (a) in the case where the aggregate amount of the solvency deficiencies of all plans is equal to or greater than the amount determined by the formula set out in A, by the formula A x (B/C) where A is the amount obtained by the formula ($200,000,000 × D) – [($150,000,000 x D) + E] where D is the number of plan years that are after the 2013 plan year, and E are the amounts paid for those plan years that are in addition to the amounts required to be paid in accordance with subsection (1), B is the amount of the solvency deficiency of the plan, and C is the aggregate amount of the solvency deficiencies of all plans; or (b) in the case where the aggregate amount of the solvency deficiencies of all plans is less than the amount determined by the formula set out in G, by the formula F + (G – H) x I/J where F is the amount of the solvency deficiency of the plan, G is the amount obtained by the formula ($200,000,000 × K) – [($150,000,000 x K) + L] where K is the number of plan years that are after the 2013 plan year, and L are the amounts paid for those plan years that are in addition to the amounts required to be paid in accordance with subsection (1), H is the aggregate amount of the solvency deficiencies of all plans, I is the amount of the solvency liabilities of the plan, and J is the aggregate amount of the solvency liabilities of all plans. Interest rate (5) If an employer fails to make the payment to the plan that is referred to in subsection (3) within the period that is set out in that subsection, the amount that must be paid in accordance with that subsection is to bear interest at the rate that was used to determine the solvency liabilities of the plan.