Stage two solvency relief
 9. (1) Stage two solvency funding relief for a public sector pension plan listed in Schedule 2 consists of the rules, conditions and restrictions set out in this section, which apply as of the stage two valuation date, and the requirements specified in sections 10 to 13.  O. Reg. 178/11, s. 9 (1). (2) The following rules apply with respect to the pension plan as of its stage two valuation date: 1. If there is a going concern unfunded liability determined in the stage two valuation report as of the stage two valuation date, the 15-year period under clause 5 (1) (b) of the General Regulation for liquidating the liability may begin on a day that is not later than 12 months after the valuation date. 2. Special payments to liquidate any solvency deficiency determined in the stage two valuation report as of the stage two valuation date must be made in equal monthly instalments over a period of not more than 10 years, beginning on a day that is not later than 12 months after the valuation date. However, the amount of the special payments may be determined in accordance with the modified version of this rule set out in subsection (4). 3. The solvency asset adjustment in relation to the stage two valuation report is determined in accordance with section 1.2 of the General Regulation, with the following changes: i. If a benefit allocation method is used to set contribution rates, the reference to a five-year period in subclause 1.2 (1) (d) (i) of the General Regulation is deemed to be a reference to a period that begins on the stage two valuation date and ends on the last day of the 10-year period described in paragraph 2 of this subsection or paragraph 2 of subsection (4), as applicable. ii. If a benefit allocation method is not used to set contribution rates, the reference to a five-year period in the definition of “C” in subsection 1.2 (2) of the General Regulation is deemed to be a reference to a period that begins on the stage two valuation date and ends on the last day of the 10-year period described in paragraph 2 of this subsection or paragraph 2 of subsection (4), as applicable.  O. Reg. 178/11, s. 9 (2); O. Reg. 307/13, s. 1 (1-3); O. Reg. 344/15, s. 1 (1). (3) The following conditions and restrictions apply with respect to the pension plan for three years after its stage two valuation date. 1. The conditions and restrictions described in subsection 4 (4). 2. Any actuarial gain or available actuarial surplus must not be applied to reduce the contributions to be made by the employer (or by a person or entity required to make contributions on behalf of the employer) or members for a fiscal year for normal costs unless both of the following requirements are satisfied: i. The administrator files an actuarial cost certificate for the fiscal year within the first 90 days of the fiscal year. ii. The amount applied to reduce the contributions for the fiscal year does not reduce the transfer ratio of the pension plan to less than 1.1 immediately after the application of the actuarial gain or available actuarial surplus.  O. Reg. 178/11, s. 9 (3); O. Reg. 257/18, s. 1. (4) If the administrator of the pension plan makes an election to do so, the special payments to liquidate any solvency deficiency determined in the stage two valuation report as of the stage two valuation date may be made in accordance with the following rules: 1. Notice of the election must be filed with the Superintendent no later than the day on which the stage two valuation report is filed. 2. During the first three years of a period of 10 years, beginning on a day that is not later than 12 months after the stage two valuation date, special payments to liquidate the solvency deficiency must be made every month. 3. The minimum amount of the special payment to be made every month during that three-year period is the greater of zero and the amount calculated using the formula, C − D in which, “C” is the amount of interest payable over the period of one month on the amount by which the solvency liabilities exceed the solvency assets, calculated using the same rates used in the stage two valuation report to determine the solvency liabilities, and “D” is the monthly amount of the special payments, if any, required under clause 5 (1) (b) of the General Regulation for the year to liquidate any going concern unfunded liability. 4. During the remaining seven years of the 10-year period, the special payments to liquidate the solvency deficiency must be made in equal monthly instalments. O. Reg. 307/13, s. 1 (4); O. Reg. 344/15, s. 1 (2). (5) If the administrator of a public sector pension plan makes the election described in subsection (4), subsections 14 (2) and (3) of the General Regulation do not apply to the pension plan for three years after the stage two valuation date. O. Reg. 307/13, s. 1 (4). (6) The special payments required by paragraph 2 of subsection (2) are deemed to be special payments required under clause 5 (1) (e) of the General Regulation. O. Reg. 350/16, s. 3.