Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

Canadian Press Pension Plan Solvency Deficiency Funding Regulations, 2010 (SOR/2010-245)

Regulations are current to 2020-09-09 and last amended on 2015-04-01. Previous Versions

Funding Rules for 2012 and Subsequent Plan Years

 For the 2012 and subsequent plan years, the Canadian Press pension plan shall be funded in accordance with section 9 of the Pension Benefits Standards Regulations, 1985 with the following modifications:

  • (a) the unfunded liability determined as at a valuation date after December 31, 2010 is the amount by which the going concern deficit determined as at that valuation date exceeds the sum of

    • (i) the present value of going concern special payments determined in respect of any plan year after the valuation date, and

    • (ii) the present value of solvency special payments referred to in paragraphs 5(3)(a) and 6(c) that are payable after the valuation date;

  • (b) the solvency deficiency, determined as at a valuation date after December 31, 2010, is the amount by which the solvency liabilities exceed the sum of

    • (i) the adjusted solvency asset amount, and

    • (ii) the present value of going concern special payments determined before January 1, 2011 that are payable after the valuation date but no later than December 31, 2023, and

    • (iii) the present value of solvency special payments referred to in paragraphs 5(3)(a) and 6(c) that are payable after the valuation date; and

  • (c) if there is a solvency deficiency as at a valuation date, the annual solvency special payments to fund this deficiency for the plan year following the valuation date shall be equal to the amount determined in accordance with the following formula:

    A/B – C

    where

    A
    is the solvency deficiency,
    B
    is the greater of
    • (i) the number of years in the period beginning on the valuation date and ending on December 31, 2023,

    • (ii) five, and

    C
    is the going concern special payments determined after December 31, 2010 and payable in the plan year following the valuation date.
  • SOR/2015-60, s. 54

Reduction of Aggregate Amount of Deferred Special Payments

 The aggregate amount of deferred special payments shall be reduced by any special payment paid to the pension fund.

Application of Gains

  •  (1) A solvency gain that emerges on December 31, 2010 shall be calculated as the amount by which the sum of the following amounts exceeds the solvency liabilities:

    • (a) the solvency assets;

    • (b) the present value of the going concern special payments that are payable for the period beginning on January 1, 2011 and ending on December 31, 2023; and

    • (c) the present value of the solvency special payments referred to in paragraph 5(3)(a) established on December 31, 2009 and payable after December 31, 2010.

  • (2) A solvency gain that emerges after December 31, 2010 shall be calculated as the amount by which the sum of the following amounts exceed the solvency liabilities:

    • (a) the adjusted solvency asset amount;

    • (b) the present value of the going concern special payments determined before January 1, 2011 that are payable for the period beginning on January 1, 2011 and ending on December 31, 2023; and

    • (c) the present value of the solvency special payments referred to in paragraphs 5(3)(a) and 6(c) determined as at December 31, 2009 and December 31, 2010 that are payable after the valuation date.

  • (3) For valuation dates after December 31, 2009, if there is a solvency gain, this gain may be applied to reduce the outstanding balance of any solvency deficiency determined before January 1, 2011 and the special payments determined to liquidate that solvency deficiency, which become due at the latest dates in the payment schedule, may be eliminated or reduced in such a way that the present value of the special payments is reduced by the amount of reduction applied to the outstanding balance of the solvency deficiency.

Early Retirement Benefits

  •  (1) If the aggregate value of the subsidized portion of early retirement benefits consented to since January 1, 2009 reduces the solvency ratio of a Canadian Press pension plan as at December 31, 2008 by more than 10%, the employer shall immediately pay to the pension fund an amount that would restore the solvency ratio to the value as at December 31, 2008 minus 10% and shall immediately notify the Superintendent in writing of the payment.

  • (2) For the purpose of subsection (1), the solvency ratio has been reduced by more than 10% if

    (A – B)/A > 0.10

    where

    A
    is the solvency ratio determined as at December 31, 2008; and
    B
    is the solvency ratio determined as at December 31, 2008 taking into consideration the aggregate value of the subsidized portion of early retirement benefits consented to since January 1, 2009.
  • SOR/2015-60, s. 55(F)
  •  (1) The amount of any secured borrowing obtained by the employer once it has obtained an aggregate of $1.5 million of secured borrowing after January 31, 2009 must be subordinated to the aggregate amount of deferred special payments.

  • (2) If the employer does not comply with subsection (1), it shall immediately notify the Superintendent in writing of its non-compliance and immediately pay to the pension fund the aggregate amount of deferred special payments. These Regulations will then no longer apply.

  • SOR/2015-60, s. 56(F)

Void Amendments

 For the purposes of paragraph 10.1(2)(d) of the Act, the prescribed solvency ratio level is one.

Statement of Investment Policies and Procedures

 Despite subsection 7.2(1) of the Pension Benefits Standards Regulations, 1985, the administrator shall review and confirm or amend the statement of investment policies and procedures referred to in subsection 7.1(1) of those Regulations at least once every quarter.

Information to Be Provided

 For the purpose of subsection 12(2) of the Act, the administrator shall file with the Superintendent

  • (a) the financial statements of the employer; and

  • (b) a copy of the minutes of Board of Director meetings documenting results of reviews of the statement of investment policies and procedures.

  •  (1) The written statement to be provided under paragraph 28(1)(b) of the Act shall, in addition to the information referred to in subsection 23(1) of the Pension Benefits Standards Regulations, 1985, include

    • (a) the aggregate value of the subsidized portion of early retirement benefits consented to in the preceding plan year and the number of members who were granted subsidized early retirement in the preceding plan year;

    • (b) the rate of return of the plan’s portfolio of investments and loans for the previous plan year and the asset mix as at the last plan year end;

    • (c) the amount that the employer paid to the pension fund during the preceding plan year; and

    • (d) the amount that the employer would have paid to the pension fund in the absence of these Regulations based on the most recently filed actuarial report under subsection 12(2) of the Act.

  • (2) The written statement required to be provided in accordance with paragraph 28(1)(b.1) of the Act shall include all information referred to in paragraphs (1)(b) to (d).

Termination of Plan

 On the termination of the whole of the Canadian Press pension plan, the aggregate amount of deferred special payments, less any reductions made under section 8, shall be immediately paid to the pension fund.

Ceasing Funding

  •  (1) The employer may cease to be governed by these Regulations if it gives written notice to the Superintendent.

  • (2) If notice is given on or before December 31, 2018

    • (a) these Regulations, other than this subsection, cease to apply effective the first plan year following the date of the notice;

    • (b) the aggregate amount of deferred special payments shall be paid into the pension fund in equal monthly instalments during the first plan year following the date of the notice; and

    • (c) the actuarial report required under subsection 12(2) of the Act shall not include the present value of the special payments determined under these Regulations.

  • (3) If notice is given after December 31, 2018

    • (a) these Regulations, other than this subsection, cease to apply effective the first plan year following the date of the notice;

    • (b) the aggregate amount of deferred special payments shall be paid to the pension fund in equal monthly instalments during the first plan year following the date of the notice

    • (c) the special payments determined under section 7 shall continue to be made.

 
Date modified: