Air Canada Pension Plan Solvency Deficiency Funding Regulations

The Air Canada Pension Plan Solvency Deficiency Funding Regulations were established by the Governor General on August 9, 2004, under the Pension Benefits Standards Act, 1985. The regulations aim to ensure the solvency of Air Canada's pension plans by setting out a framework for funding and administering the plans. Under these regulations, Air Canada must file certain information with the Superintendent, including an actuarial report valuing the plan as at January 1, 2004, and a statement confirming beneficiary representative consent to funding the solvency deficiency.

The regulations also provide for exemption from the application of subsections 8(1) and (2) of the Act in respect of certain amounts. The Pension Benefits Standards Regulations, 1985, apply in respect of plans funded under Part 1 of these regulations, except as otherwise provided. The solvency ratio is calculated after determining the initial solvency deficiency, and special payments are required to be made in accordance with sections 9 and 13.

Air Canada may elect to fund a plan beginning on the first day of a plan year in accordance with Part 2 of these regulations by giving written notice to the Superintendent. If this election is made, section 9 of the Pension Benefits Standards Regulations, 1985 applies in respect of that plan except as otherwise provided in Part 2.

The regulations also provide for the determination of surplus and the application of different provisions depending on whether a plan has a surplus or not. For plans without a surplus, certain sections cease to apply on the first day of the plan year in which the election is made.