Transitional solvency funding relief
 16. (1) Transitional solvency funding relief for a public sector pension plan listed in Schedule 1 but not in Schedule 2 consists of the rules, conditions and restrictions set out in this section, which apply as of the transitional valuation date, and the requirements specified in section 17.  O. Reg. 178/11, s. 16 (1). (2) The following rules apply with respect to the pension plan as of its transitional valuation date: 1. If a going concern unfunded liability is determined in the transitional valuation report as of the transitional 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. If a solvency deficiency is determined in the transitional valuation report as of the transitional valuation date, the five-year period under clause 5 (1) (e) of the General Regulation for liquidating the solvency deficiency may begin on a day that is not later than 12 months after the valuation date. 3. The solvency asset adjustment in relation to the transitional 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 period that begins on the transitional valuation date and ends on the last day of the five-year period described in paragraph 2 of this subsection. 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 transitional valuation date and ends on the last day of the five-year period described in paragraph 2 of this subsection.  O. Reg. 178/11, s. 16 (2). (3) The conditions and restrictions described in subsection 4 (4) continue to apply with respect to the pension plan from its transitional valuation date until the earlier of, (a) 14 years after the stage one valuation date; and (b) the date on which the second of two consecutive reports are filed under this Regulation or under section 3 or 14 of the General Regulation indicating that the transfer ratio of the pension plan is at least 1.0.  O. Reg. 178/11, s. 16 (3). (4) The following conditions and restrictions apply with respect to the pension plan during the period described in subsection (3): 1. Any actuarial gain 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.  O. Reg. 178/11, s. 16 (4).