Stage one solvency funding relief
 4. (1) Stage one solvency funding relief for a public sector pension plan listed in Schedule 1 consists of the rules, conditions and restrictions set out in this section, which apply as of the stage one valuation date, and the requirements specified in sections 5 and 6.  O. Reg. 178/11, s. 4 (1). (2) The following rules apply with respect to the pension plan as of its stage one valuation date: 1. Subsections 14 (2) and (3) of the General Regulation do not apply to the pension plan for three years after the stage one valuation date. 2. All contributions to be made under section 4 of the General Regulation in respect of a report filed under section 3, 4 or 14 of the General Regulation before the stage one valuation date must continue to be made until the stage one valuation report is filed.  However, for the Retirement Plan of the University of St. Michael’s College, the modified version of this rule set out in subsection 6 (2) of this Regulation applies. 3. If a going concern unfunded liability is determined in the stage one valuation report as of the stage one valuation date, the 15-year period  under clause 5 (1) (b) of the General Regulation for liquidating the liability may begin up to 12 months after the valuation date.  However, for the Pension Plan for Professional Staff of Lakehead University and for the Wilfrid Laurier University Pension Plan, the 15-year period must begin on June 1, 2011. 4. If special payments are required under clause 5 (1) (e) of the General Regulation to liquidate any solvency deficiency determined in a report filed under section 3, 4 or 14 of the General Regulation before the stage one valuation date, those special payments are no longer required after the stage one valuation report is filed.  However, for the Retirement Plan of the University of St. Michael’s College, the modified version of this rule set out in subsection 6 (2) of this Regulation applies. 5. Special payments in respect of any solvency deficiency determined in the stage one valuation report as of the stage one valuation date must be made in equal monthly instalments in each of the four years after that valuation date.  The minimum monthly special payment is the amount calculated under subsection (3).  However, for the Retirement Plan of the University of St. Michael’s College, the modified version of this rule set out in subsection 6 (3) applies. 6. If special payments described in paragraph 4 are made for the period from the stage one valuation date to the date on which the stage one valuation report is filed, and if the amount of those special payments is greater than the amount of the special payments described in paragraph 5 to be made for the same period, the excess amount may be used to reduce any contributions to the pension plan that must be made after the date on which the stage one valuation report is filed and until the next report is filed under this Regulation.  However, for the Retirement Plan of the University of St. Michael’s College, this rule does not apply.  O. Reg. 178/11, s. 4 (2). (3) The minimum monthly amount of the special payments required with respect to the solvency deficiency determined in the stage one valuation report is determined in accordance with the following rules: 1. Determine the amount of the modified solvency liabilities of the pension plan as of the stage one valuation date by multiplying the amount of the solvency liabilities by 80 per cent. 2. Determine the amount of the modified solvency deficiency of the pension plan which is the amount by which the modified solvency liabilities exceeds the solvency assets. 3. Determine the amount of the modified solvency special payments for the pension plan which is the amount of the special payments required to liquidate 50 per cent of the modified solvency deficiency (together with interest at the same rates used in the stage one valuation report to determine the solvency liabilities) by equal monthly instalments over a period of four years beginning on the stage one valuation date. 4. Determine the amount that is the greater of “A” and “B” where, “A” is the monthly amount of the modified solvency special payments, and “B” 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 one valuation report to determine the solvency liabilities. 5. Subtract from the amount calculated under paragraph 4 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. 6. The minimum monthly amount of the special payments required in respect of the solvency deficiency is the greater of the amount calculated under paragraph 5 and zero.  O. Reg. 178/11, s. 4 (3). (4) If the administrator files an amendment to the pension plan to increase pension benefits or ancillary benefits, the following conditions and restrictions apply with respect to the pension plan until its stage two valuation date or its transitional valuation date, as the case may be: 1. If, after the amendment, the ratio of the market value of assets of the pension plan to the going concern liabilities is less than 0.9 or if, after the amendment, the transfer ratio of the pension plan is less than 0.9, i. determine the amount of additional assets that would be needed to raise both ratios to a level that is not less than the corresponding ratio immediately before the amendment but not more than 0.9, and ii. pay that amount, together with interest at the rate used to determine the going concern liabilities, to the pension plan as a lump sum within 60 days after the report required under subsection 3 (1) of the General Regulation is filed. 2. If, after the amendment, the ratio of the market value of assets of the pension plan to the going concern liabilities is less than 1.0, i. determine the amount of additional assets that would be needed to raise the ratio to the level that existed immediately before the amendment or to 1.0, whichever is lower, ii. determine whether the amount determined under subparagraph i is greater than the amount determined under subparagraph 1 i and, if it is greater, calculate the difference, and iii. make equal monthly payments to liquidate the amount of the difference calculated under subparagraph ii, together with interest at the rate used to determine the going concern liabilities, over a period of five years beginning as of the valuation date of the report filed under subsection 3 (1) of the General Regulation. 3. If, after the amendment, the transfer ratio of the pension plan is less than 1.0, i. determine the amount of additional assets that would be needed to raise the transfer ratio to the level that existed immediately before the amendment or to 1.0, whichever is lower, ii. determine whether the amount determined under subparagraph i is greater than the sum of the amount determined under subparagraph 1 i and the amount of the difference calculated under subparagraph 2 ii and, if it is greater, calculate the difference, and iii. make equal monthly payments to liquidate the amount of the difference calculated under subparagraph ii, together with interest at the rate used to determine the solvency liabilities, over a period of five years beginning as of the valuation date of the report filed under subsection 3 (1) of the General Regulation.  O. Reg. 178/11, s. 4 (4). (4.1) Subsection (4) does not apply with respect to an amendment to the pension plan to confer a benefit improvement that is required by law.  O. Reg. 179/12, s. 1. (5) The payments required by subparagraphs 1 ii, 2 iii and 3 iii of subsection (4) are deemed to be special payments required under subsection 5 (1) of the General Regulation.  O. Reg. 178/11, s. 4 (5).