PART I INTERPRETATION
 1.2 (1) For the purposes of this Part, the solvency asset adjustment in relation to a report in respect of a pension plan for which a benefit allocation method is used to set contribution rates is the sum of, (a)  the amount, which may be positive or negative, by which the value of the solvency assets are adjusted as a result of applying an averaging method that stabilizes short-term fluctuations in the market value of the plan assets, calculated over a period of not more than five years; (b)  Revoked: O. Reg. 329/12, s. 1 (1). (c)  the present value of any special payments required to liquidate any past service unfunded actuarial liability; (d)  if the report has a valuation date before December 31, 2017 or is in respect of a jointly sponsored pension plan listed in subsection 1.3.1 (3), the present value of all special payments referred to in clause 5 (1) (b) or (e) that are scheduled for payment within the following period, other than special payments required to liquidate any past service unfunded liability or any solvency deficiency determined in the report: (i)  the period of five years that begins on the valuation date of a report with a valuation date before September 30, 2011, in the case of a pension plan that is not a jointly sponsored pension plan, (ii)  a period that begins on the valuation date of a report with a valuation date on or after September 30, 2011 and continues until the end of a five-year period that begins on a date not later than 12 months after the valuation date, in the case of a pension plan that is not a jointly sponsored pension plan, (iii)  a period that begins on the valuation date of the report and continues until the end of a five-year period that begins on a date not later than 12 months after the valuation date, in the case of a jointly sponsored pension plan; (d.1)  if the report has a valuation date on or after December 31, 2017 and is not in respect of a jointly sponsored pension plan listed in subsection 1.3.1 (3), (i)  the present value of all special payments referred to in clauses 5 (1.0.0.1) (a), (b) and (e) that are scheduled for payment within a period that begins on the valuation date of a report and continues until the end of a five-year period that begins on a date not later than 12 months after the valuation date, and (ii)  the present value of all special payments referred to in clauses 5 (1.0.0.1) (f) and (g), other than special payments required to liquidate any reduced solvency deficiency determined in the report; and (e)  the amount that is the lesser of, (i)  the total amount of all letters of credit held in trust for the pension fund as of the valuation date of the report, excluding the value of any special payments to which the letters of credit relate and which are due after the valuation date of the report, and (ii)  15 per cent of the amount of the solvency liabilities, determined excluding the liabilities described in clauses (a) to (h) of the definition of “solvency liabilities” in subsection 1 (2). O. Reg. 116/06, s. 2; O. Reg. 329/12, s. 1 (1, 2); O. Reg. 364/12, s. 2 (1); O. Reg. 119/14, s. 1; O. Reg. 250/18, s. 4 (1, 2); O. Reg. 533/21, s. 1 (1). (1.1) For the purposes of determining the present value of special payments in subclause (1) (d.1) (i), the references to the “last filed report” in clauses 5 (1.0.0.1) (a) and (b) shall be read as references to the report mentioned in subsection (1). O. Reg. 105/19, s. 2. (2) Despite subsection (1), the solvency asset adjustment in relation to a report in respect of a pension plan that provides defined benefits and for which a benefit allocation method is not used to set contribution rates is the amount calculated using the formula, A + B + F in which, “A”  is the amount, which may be positive or negative, by which the value of the solvency assets are adjusted as a result of applying an averaging method that stabilizes short-term fluctuations in the market value of the plan assets, calculated over a period of not more than five years, “B”  is the greater of zero and the amount calculated using the formula, C + D – E in which, “C”  is the present value of the required contributions for the following period, which are determined using the actuarial cost method adopted by the plan: (a)  the five-year period that begins on the valuation date of a report with a valuation date before September 30, 2011, in the case of a pension plan that is not a jointly sponsored pension plan, (b)  a period that begins on the valuation date of a report with a valuation date on or after September 30, 2011 and continues until the end of a five-year period that begins on a date not later than 12 months after the valuation date, in the case of a pension plan that is not a jointly sponsored pension plan, or (c)  a period that begins on the valuation date of the report and continues until the end of a five-year period that begins on a date not later than 12 months after the valuation date, in the case of a jointly sponsored pension plan, “D”  is the amount described in subsection (2.1), and “E”  is the amount described in subsection (2.2), and “F”  is the amount of clause (1) (e). O. Reg. 116/06, s. 2; O. Reg. 329/12, s. 1 (3); O. Reg. 364/12, s. 2 (2, 3); O. Reg. 250/18, s. 4 (3). (2.1) In the formula in subsection (2), “D” is, (a)  for a report with a valuation date before December 31, 2017 or that is in respect of a jointly sponsored pension plan listed in subsection 1.3.1 (3), the present value of any special payments referred to in clause 5 (1) (e) that are scheduled for payment within the applicable period described in the definition of “C” in subsection (2), other than any special payments required to liquidate any solvency deficiency determined in the report; and (b)  for a report with a valuation date on or after December 31, 2017, other than a report in respect of a jointly sponsored pension plan listed in subsection 1.3.1 (3), the present value of any special payments referred to in clauses 5 (1.0.0.1) (f) and (g), other than any special payments required to liquidate any reduced solvency deficiency determined in the report. O. Reg. 250/18, s. 4 (4); O. Reg. 533/21, s. 1 (2). (2.2) In the formula in subsection (2), “E” is, (a)  for a report with a valuation date before December 31, 2017 or in respect of a jointly sponsored pension plan listed in subsection 1.3.1 (3), the present value of the normal cost, which is determined using a benefit allocation method, for the applicable period described in the definition of “C” in subsection (2); and (b)  for a report with a valuation date on or after December 31, 2017, other than a report in respect of a jointly sponsored pension plan listed in subsection 1.3.1 (3), the present value of the normal cost and the amount equal to the provision for adverse deviations in respect of the normal cost, determined using a benefit allocation method, for the applicable period described in the definition of “C” in subsection (2). O. Reg. 250/18, s. 4 (4). (3) For the purposes of subsections (1) and (2), for a report with a valuation date before December 31, 2017 or in respect of a jointly sponsored pension plan listed in subsection 1.3.1 (3), the present value of special payments, required contributions and the normal cost must be calculated as of the valuation date of the report and must be calculated using, (a)  the interest rates used in the report to calculate the solvency liabilities, if the solvency liability adjustment is zero; or (b)  the average interest rates used in the report to calculate the solvency liability adjustment, if the solvency liability adjustment is not zero.  O. Reg. 116/06, s. 2; O. Reg. 250/18, s. 4 (5). (3.1) For the purposes of subsections (1) and (2), for a report with a valuation date on or after December 31, 2017, other than a report in respect of a jointly sponsored pension plan listed in subsection 1.3.1 (3), the present value of special payments, required contributions, the normal cost and the provision for adverse deviations in respect of the normal cost must be calculated as of the valuation date of the report using, (a)  the interest rates that were used in the report to calculate the solvency liabilities, if the solvency liability adjustment is zero; or (b)  the average interest rates that were used in the report to calculate the solvency liability adjustment, if the solvency liability adjustment is not zero. O. Reg. 250/18, s. 4 (6). (4) In the case of a jointly sponsored pension plan, the present values determined for the purposes of the definitions of “C”, “D” and “E” in subsection (2) shall be calculated based on the sum of the projected pensionable earnings for the applicable period described in the definition of “C” in subsection (2).  O. Reg. 116/06, s. 2.