Solvency Funding Relief Regulations, 2009

28 (1) The face amount of a letter of credit may be reduced, effective the beginning of a plan year, by

• (a) the amount by which the aggregate amount of payments that the employer has made to the pension fund in the previous plan year exceeds the total of the annual special payments made in accordance with this Part and the normal cost of the plan for that year as shown in the actuarial report; or

• (b) the amount by which the aggregate face amount of all of the letters of credit that are held by the holder in respect of the plan exceeds the amount referred to in paragraph 21(3)(a) or (b), as the case may be.

(2) The face amount of the letter of credit shall not be reduced following a default.