In general, clause 23(1)(q)(i)(B) of the Pension Benefits Standards Regulations, 1985 requires that the annual statements to members include a description of the measures the plan administrator has implemented or will implement to bring the solvency ratio to one. Where a plan is being funded under the Solvency Funding Relief Regulations, 2009 (Solvency Relief Regulations),it is expected that these statements also include how the solvency deficiency is funded as per the Solvency Relief Regulations.
For a pension plan of a Crown Corporation that is an agent of Her Majesty in right of Canada, the plan administrator of that Crown Corporation’s pension plan must indicate in a member’s annual statement:
- the amount of the deficiency; and,
- that the deficiency is to be funded in accordance with Part 2 of the Solvency Relief Regulations by equal annual payments over a period not exceeding 10 years (subsection 20(2) of the Solvency Relief Regulations).
In addition, if a pension plan is being funded under Part 3 of the Solvency Relief Regulations, section 27 states that the plan administrator must also include in a member’s annual statement the following information:
- the amount of the 2008 solvency deficiency or the solvency deficiency calculated in accordance with the definition of solvency deficiency in subsection 9(1) of the Pension Benefits Standards Regulations, 1985, that is being funded under Part 3 of the Solvency Relief Regulations;
- the fact that the deficiency is to be funded in accordance with Part 3 of the Solvency Relief Regulations by equal annual payments over a period not exceeding 10 years; and
- the aggregate face amount of all of the letters of credit that are held by the holder in respect of the plan.