Common use of Funding of Normal Actuarial Cost and Unfunded Liabilities Clause in Contracts

Funding of Normal Actuarial Cost and Unfunded Liabilities. (a) If an actuarial valuation report establishes the existence of an Unfunded Liability that did not exist prior to that report’s Review Date, such Unfunded Liability will be funded in accordance with this Section 4. (b) Subject to paragraph (c), the Plan Contributor must, in accordance with this paragraph, pay each of the following into the Pension Plan: (i) at least monthly, an amount equal to 1/12 of the Normal Actuarial Cost determined on the basis of the current actuarial valuation report or cost certificate,starting in the first month of the second fiscal year of the Pension Plan following the Review Date; (ii) without limiting any other obligation on the Plan Contributor to make payments under this paragraph in relation to any previous Unfunded Liability, if the current actuarial valuation report establishes the existence of an Unfunded Liability, a series of equal payments that are made at least monthly, which series of payments must be sufficient, in the opinion of the Plan Actuary who prepared that actuarial valuation report, to amortize the Unfunded Liability within the Unfunded Liability Payment Period applicable to it. (c) Instead of making the payments referred to in subparagraph (b )(i ) , the Plan Contributor may elect to make payments into the Pension Plan underthis paragraph if: (i) the payments are made at least monthly over the Unfunded Liability Payment Period that is applicable to that Unfunded Liability, (ii) the payment amounts are identical and are calculated as a percentage of the payroll or as an average amount per hour of employment that, as at the Review Date of the actuarial valuation report by which the existence of the Unfunded Liability was established, was projected for the Active Members; and (iii) the actuarial present value of the payments over the period referred to in subparagraph (i), or any shorter period selectedby the Board for the purposes of this paragraph, is equal to that UnfundedLiability. (d) Without limiting paragraphs (b) or (c) each Unfunded Liability must be funded by a separate series of payments under subparagraph (b)(ii) or paragraph (c) and must not be combined with any other UnfundedLiability. (e) If a Plan Contributor is required under paragraph (b) or (c) or to make payments in relation to an Unfunded Liability, the Plan Contributor may make larger payments, more frequent payments or earlier payments than what is required, and, in that event, the Plan Contributor may, despite paragraph (b) or (c), reduce or eliminate subsequent payments provided that (i) the Unfunded Liability is eliminated within the applicable Unfunded Liability Payment Period, and; (ii) the balance of the Unfunded Liability never exceeds the amount of that Unfunded Liability that would have existed had the full amount of the payments required under paragraph (b) or (c) been made.

Funding of Normal Actuarial Cost and Unfunded Liabilities. (a) If an actuarial valuation report establishes the existence of an Unfunded Liability that did not exist prior to that report’s Review Date, such Unfunded Liability will be funded in accordance with this Section 4. (b) Subject to paragraph subsection (c), the Plan Contributor must, in accordance with this paragraph, pay each of the following into the Pension Plan: (i) at least monthly, an amount equal to 1/12 of the Normal Actuarial Cost determined on the basis of the current actuarial valuation report or cost certificate,, starting in the first month of the second fiscal year of the Pension Plan following the Review Date; (ii) without limiting any other obligation on the Plan Contributor to make payments under this paragraph in relation to any previous Unfunded Liability, if the current actuarial valuation report establishes the existence of an Unfunded Liability, a series of equal payments that are made at least monthly, which series of payments must be sufficient, in the opinion of the Plan Actuary who prepared that actuarial valuation report, to amortize the Unfunded Liability within the Unfunded Liability Payment Period applicable to it. (c) Instead of making the payments referred to in subparagraph paragraph (b b)(ii)(i ) , the Plan Contributor may elect to make payments into the Pension Plan underthis paragraph under this subsection if: (i) the payments are made at least monthly over the Unfunded Liability Payment Period that is applicable to that Unfunded Liability, (ii) the payment amounts are identical and are calculated as a percentage of the payroll or as an average amount per hour of employment that, as at the Review Date of the actuarial valuation report by which the existence of the Unfunded Liability was established, was projected for the Active Members; and (iii) the actuarial present value of the payments over the period referred to in subparagraph paragraph (i), or any shorter period selectedby selected by the Board for the purposes of this paragraph, is equal to that UnfundedLiabilityUnfunded Liability. (d) Without limiting paragraphs subsections (b) or and (c) ), each Unfunded Liability must be funded by a separate series of payments under subparagraph paragraph (b)(ii) or paragraph subsection (c) and must not be combined with any other UnfundedLiabilityUnfunded Liability. (e) If a Plan Contributor is required under paragraph subsections (b) or (c) or to make payments in relation to an Unfunded Liability, the Plan Contributor may make larger payments, more frequent payments or earlier payments than what is required, and, in that event, the Plan Contributor may, despite paragraph subsections (b) or (c), reduce or eliminate subsequent payments provided that (i) the Unfunded Liability is eliminated within the applicable Unfunded Liability Payment Period, and; (ii) the balance of the Unfunded Liability never exceeds the amount of that Unfunded Liability that would have existed had the full amount of the payments required under paragraph subsection (b) or (c) been made.

Funding of Normal Actuarial Cost and Unfunded Liabilities. (a) If an actuarial valuation report establishes the existence of an Unfunded Liability that did not exist prior to that report’s Review Date, such Unfunded Liability will be funded in accordance with this Section 4. (b) Subject to paragraph (c), the Plan Contributor must, in accordance with this paragraph, pay each of the following into the Pension Plan: (i) at least monthly, an amount equal to 1/12 of the Normal Actuarial Cost determined on the basis of the current actuarial valuation report or cost certificate,, starting in the first month of the second fiscal year of the Pension Plan following the Review Date; (ii) without limiting any other obligation on the Plan Contributor to make payments under this paragraph in relation to any previous Unfunded Liability, if the current actuarial valuation report establishes the existence of an Unfunded Liability, a series of equal payments that are made at least monthly, which series of payments must be sufficient, in the opinion of the Plan Actuary who prepared that actuarial valuation report, to amortize the Unfunded Liability within the Unfunded Liability Payment Period applicable to it. (c) Instead of making the payments referred to in subparagraph (b b)(ii)(i ) , the Plan Contributor may elect to make payments into the Pension Plan underthis under this paragraph if: (i) the payments are made at least monthly over the Unfunded Liability Payment Period that is applicable to that Unfunded Liability, (ii) the payment amounts are identical and are calculated as a percentage of the payroll or as an average amount per hour of employment that, as at the Review Date of the actuarial valuation report by which the existence of the Unfunded Liability was established, was projected for the Active Members; and (iii) the actuarial present value of the payments over the period referred to in subparagraph (i), or any shorter period selectedby selected by the Board for the purposes of this paragraph, is equal to that UnfundedLiabilityUnfunded Liability. (d) Without limiting paragraphs (b) or and (c) ), each Unfunded Liability must be funded by a separate series of payments under subparagraph (b)(ii) or paragraph (c) and must not be combined with any other UnfundedLiabilityUnfunded Liability. (e) If a Plan Contributor is required under paragraph (b) or (c) or to make payments in relation to an Unfunded Liability, the Plan Contributor may make larger payments, more frequent payments or earlier payments than what is required, and, in that event, the Plan Contributor may, despite paragraph (b) or (c), reduce or eliminate subsequent payments provided that (i) the Unfunded Liability is eliminated within the applicable Unfunded Liability Payment Period, and; (ii) the balance of the Unfunded Liability never exceeds the amount of that Unfunded Liability that would have existed had the full amount of the payments required under paragraph (b) or (c) been made.