Air Canada Pension Plan Solvency Deficiency Funding Regulations (SOR/2004-174)

• 5. (1) If the information referred to in section 4 is filed with the Superintendent in respect of a plan in accordance with that section, the plan is exempt from the application of subsections 8(1) and (2) of the Act in respect of the following amounts:

  • (a) any special payments, employer contributions or other amounts accrued or due to the pension fund before January 1, 2004; and

  • (b) the principal outstanding amount of a promissory note, issued in respect of the plan and referred to in section 4 of the Protocol, if that amount becomes due and payable in full as a result of the occurrence of an event of default under the terms of the promissory note.

• (2) For greater certainty and except as described in subsection (1), a plan is not exempt from the application of subsections 8(1) and (2) of the Act in respect of any special payments, contributions or other amounts that are accrued or due to the pension fund under these Regulations.

6. If the information referred to in section 4 is filed with the Superintendent in respect of a plan in accordance with that section, section 9 of the Pension Benefits Standards Regulations, 1985 applies in respect of that plan except as otherwise provided in this Part.

• 7. (1) For the purposes of this Part, paragraph (a) of the definition “solvency deficiency” in subsection 9(1) of the Pension Benefits Standards Regulations, 1985 shall be read as follows:

  • (a) the value of the assets of the plan, determined on the basis of market value,

• (2) In this Part, for the purpose of paragraph (d) of the definition “solvency deficiency” in subsection 9(1) of the Pension Benefits Standards Regulations, 1985, the present value of any special payment calculated before January 1, 2004 and the present value of any special payment required to be made in respect of an initial unfunded liability emerging as at January 1, 2004 shall be zero.

• (3) For the purposes of this Part, the definition “solvency deficiency” in subsection 9(1) of the Pension Benefits Standards Regulations, 1985 shall be read as including the following after paragraph (d):

  • (d.1) the present value of any special payment referred to in section 9 or 13 of the Air Canada Pension Plan Solvency Deficiency Funding Regulations,

  • (d.2) the present value of any special payment required to be made during the period beginning on January 2, 2004 and ending on December 31, 2013 in respect of an initial unfunded liability of a plan emerging after January 1, 2004,

• (4) Subject to subsection 147.2(2) of the Income Tax Act, subsection 9(7.1) of the Pension Benefits Standards Regulations, 1985 does not apply in respect of a plan that is funded in accordance with this Part.