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The National Pensions (Actuarial and Fund Management) Regulations, 1998 originally made under the principal Law, as amended, as Part of the Schedule thereto, and which came into force on the 1st June, 1998. Revised this 21st day of July, 1998. Arrangement of Regulations National Pensions Law NATIONAL PENSIONS (ACTUARIAL AND FUND MANAGEMENT) REGULATIONS (1998 Revision) Arrangement of Regulations Regulation 1. 2. 3. 4. 5. 6. 7. 8.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_9\", \"num\": \"9.\", \"text\": \"Regulation 1 National Pensions Law NATIONAL PENSIONS (ACTUARIAL AND FUND MANAGEMENT) REGULATIONS (1998 Revision)\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_1\", \"num\": \"1.\", \"text\": \"Citation 1. These regulations may be cited as the National Pensions (Actuarial and Fund Management) Regulations (1998 Revision).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_2\", \"num\": \"2.\", \"text\": \"Definitions and interpretation 2. (1) In these regulations \u2014 \u201cactuarial gain\u201d means the sum, if positive, at the valuation date of a going concern valuation, of \u2014 (a) the gain or loss to a pension plan during the period since the last review date of the increase or decrease in the value of the assets of a pension plan, less the liabilities of the plan during the period since the last valuation date, determined in a going concern valuation of the plan resulting from the difference between actual experience and the experience expected by the actuarial assumptions on which that valuation was based; (b) the amount by which the going concern liabilities increase or decrease as a result of an amendment to the plan; and (c) the amount by which the going concern liabilities increase or decrease or the going concern assets increase or decrease as a result of a change in Regulation 2 actuarial methods or assumptions upon which the current going concern valuation is based; \u201cactuarial loss\u201d means the sum, if negative, at the valuation date of a going concern valuation, of \u2014 (a) the gain or loss to a pension plan, during the period since the last review date, of the increase or decrease in the value of the assets of a pension plan less the liabilities of the plan, during the period since the last valuation date determined in a going concern valuation of the plan resulting from the difference between actual experience and the experience expected by the actuarial assumptions on which that valuation was based; (b) the amount by which the going concern liabilities increase or decrease as a result of an amendment to the plan; and (c) the amount by which the going concern liabilities increase or decrease or the going concern assets increase or decrease as a result of a change in actuarial methods or assumptions upon which the current going concern valuation is based; \u201cbook value\u201d, in relation to an asset, means the cost of acquisition to the person acquiring the asset, including all direct ancillary costs associated with the acquisition; \u201cgoing concern assets\u201d means the value of the assets of a pension plan, including income due and accrued, determined on the basis of a going concern valuation; \u201cgoing concern liabilities\u201d means the liabilities of a pension plan, including amounts due and unpaid, determined on the basis of a going concern valuation; \u201cgoing concern unfunded liability\u201d means the excess of going concern liabilities over going concern assets; \u201cgoing concern valuation\u201d means a valuation of the going concern assets and going concern liabilities of a pension plan prepared on the basis of a continuing pension plan as required by the Law and these regulations; \u201cinitial surplus\u201d means the surplus in a pension plan, determined on an ongoing basis, that is in existence on the 1st June, 1998; \u201cinitial unfunded past service liability\u201d means the excess of going concern liabilities over going concern assets on the date of the establishment of a pension plan or, in the case of a plan in existence at the 1st June, 1998, the 1st June, 1998; \u201cmarket value\u201d in respect of an asset means the price that would be obtained in the purchase or sale of the asset in an open market under conditions requisite to a fair transaction between parties; Regulation 3 \u201csection\u201d means a section of the National Pension Law (1998 Revision); \u201csolvency assets\u201d means the market value of investments held by a pension plan plus any cash balances of the plan and accrued or receivable income items of the plan, except for employer and member contributions, less any amounts payable by the plan; \u201csolvency deficiency\u201d means the deficiency determined by a solvency valuation performed in accordance with regulation 4(1)(b) or (7); \u201csolvency liabilities\u201d means the liabilities of the plan calculated on a plan termination basis; \u201cspecial payment\u201d means a payment or one of a series of payments determined for the purpose of liquidating a going concern unfunded liability or solvency deficiency in accordance with regulation 3; \u201csurplus\u201d in respect of an ongoing pension plan means the excess of the assets of the plan over the liabilities of the pension plan where \u2014 (a) the assets of the plan are calculated on the basis of the market value of the investments held by the fund plus any cash balances and accrued or receivable items; and (b) the liabilities of the plan are calculated to be the greater of the going concern liabilities and the solvency liabilities; \u201csurplus\u201d in respect of a pension plan that is or is being wound up means the excess of the assets of the plan over the solvency liabilities where the assets of the plan are calculated on the basis of the market value of the investments held by the fund plus any cash balances and accrued or receivable items; \u201ctransfer ratio\u201d means the fraction obtained by dividing the solvency assets of a pension plan by the liabilities of the plan calculated on a plan termination basis at the latest valuation date; and \u201cvaluation date\u201d means the date at which an actuarial report that is filed with the Superintendent is prepared. (2) In calculating solvency assets or a transfer ratio, where there is no market value for an investment of a pension plan and the investment is issued or guaranteed by a government, the book value shall be used instead of market value. (3) For the purposes of this regulation, a going concern unfunded liability, a past service unfunded liability, a solvency deficiency, and a transfer ratio each arises on the valuation date of the report in which it is determined, and a report is a report of an actuary that is filed with the Superintendent. Regulation 3\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_3\", \"num\": \"3.\", \"text\": \"Defined benefit plan \u2013 funding 3. (1) The total annual contribution to be made to a defined benefit plan each year by the combination of employer and member contributions is equal to the greater of \u2014 (a) the amount required to fund the plan on a going concern basis as defined in subregulation (2); or (b) the annual amount required, as defined in regulation 4(7)(b), to amortise any solvency deficiency as at the valuation date over an amortisation period not exceeding five years. (2) The amount required to fund a defined benefit plan on a going concern basis is equal to the sum of the following elements of the going concern valuation for the year \u2014 (a) the normal cost; (b) the special payment, if any, required to amortise the initial unfunded past service liability on a going concern basis as defined in regulation 4(1)(a)(v); and (c) special payments required to amortise the actuarial losses as determined in accordance with regulation 4(6)(e)(i), less any special payments required to amortise the actuarial gains as determined in accordance with regulation 4(6)(e)(ii). (3) The employer\u2019s required annual contribution shall be equal to the total annual contribution determined in subregulation (1), less the expected member contributions based on the member contribution rate determined in subregulation (4) and expected annual member earnings, but shall not be less than zero. (4) The member contribution rate shall be determined at each valuation and shall be equal to the lesser of \u2014 (a) the maximum required member contribution rate permitted by the Law; or (b) the percentage rate determined in accordance with the following formula- percentage rate = (\u00bdC)\u00f7E, where \u2014 C = (a) the amount determined in subregulation (1)(a), less the amount determined in subregulation (2)(b), if the amount determined in subregulation (1)(a) is greater than, or equal to, the amount determined in subregulation (1)(b); or (b) the amount determined in subregulation (1)(b), less the amount required to amortise any initial solvency deficiency as determined in regulation 4(1)(b)(ii), if the amount determined in Regulation 4 subregulation (1)(a) is less than the amount determined in subregulation (1)(b); but (c) shall in no case be less than zero; and E = aggregate annual member earnings as at the date of the valuation, provided that in calculating the aggregate annual member earnings, no earnings of any individual member in excess of his year\u2019s maximum pensionable earnings shall be taken into account. (5) An initial surplus in a defined benefit plan in existence on the 1st June, 1998, established under the going concern valuation at the 1st June, 1998, may be used to offset employer contributions until the earlier of \u2014 (a) the date at which the sum of the offsets is equal to the initial surplus at the 1st June, 1998; (b) the plan is no longer in surplus on a going concern basis; or (c) the plan has a solvency deficiency, all of which shall be established by an actuarial report prepared in compliance with regulation 4.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_4\", \"num\": \"4.\", \"text\": \"Defined benefit plan- reports 4. (1) The information which shall accompany an application for registration of a defined benefit plan shall include a report certified by an actuary that sets out \u2014 (a) on the basis of a going concern valuation with respect to the defined benefits \u2014 (i) the normal cost, in the first year during which the plan is registered and the rule for computing the normal cost in subsequent years up to the date of the next report; (ii) an estimate of the normal cost, in the subsequent years up to the date of the next report; (iii) the estimated aggregate employee contributions to the pension plan during each year up to the date of the succeeding report; (iv) the initial unfunded past service liability or initial surplus under the pension plan as at the date of the establishment of the plan; and (v) where there is an initial unfunded past service liability, the special payments required to amortise the initial past service unfunded actuarial liability over a term not exceeding five years; (b) on the basis of a solvency valuation \u2014 (i) whether there is a solvency deficiency; Regulation 4 (ii) if there is a solvency deficiency, the amount of the solvency deficiency and the special payment required to amortise it over a term not exceeding five years; (iii) whether the transfer ratio is less than one; and (iv) if the transfer ratio is less than one, the transfer ratio; and (c) a calculation of the employer\u2019s required annual contribution as specified in regulation 3(3). (2) For the purposes of the report specified in subregulation (1), the initial valuation date \u2014 (a) for a plan established after the 1st June, 1998, shall be the date of the establishment of the plan; and (b) for a plan in existence at the 1st June, 1998, shall be the 1st June, 1998. (3) A report specified in paragraph (c) of section 16(2) shall contain the information specified in subregulation (1)(a) and (b) and shall be prepared with a valuation date not more than three years after the valuation date of the preceding report or, in the case of the first report, not more than three years after the date of the first registration of the plan. (4) Where a report prepared in accordance with paragraph (c) of section 16(2) indicates solvency concerns, the next report in respect of the plan shall be prepared and certified with a valuation date within one year from the date of the first-mentioned report or by such earlier date as the Superintendent may specify. (5) A report relating to a defined benefit plan prepared under paragraph (c) of section 16(2) shall indicate solvency concerns where \u2014 (a) the ratio of the solvency assets to the solvency liabilities is less than 0.8; or (b) the solvency liabilities exceed the solvency assets by more than five hundred thousand dollars and the ratio of the solvency assets to the solvency liabilities is less than 0.9. (6) Each report under this section shall set out, on the basis of a going concern valuation \u2014 (a) the normal cost in the year following the valuation date of the report and the rule for computing the cost in subsequent years up to the valuation date of the next report; (b) an estimate of the normal cost in the subsequent years up to the valuation date of the next report; (c) the estimated aggregate employee contributions to the pension plan during the year following the valuation date of the report and the subsequent years up to the valuation date of the next report; Regulation 5 (d) the present value of future special payments remaining to be paid after the valuation date; (e) the actuarial gain or actuarial loss in the plan, and \u2014 (i) where there is an actuarial loss, the special payments that will amortise any increase in a going concern unfunded liability resulting from the loss over a term not exceeding five years; or (ii) where there is an actuarial gain, the special payments that will amortise any decrease in a going concern unfunded liability resulting from the gain over a term not exceeding five years; (f) the going concern liability as at the valuation date; and (g) the book value and market value of plan assets as at the valuation date. (7) A report prepared in accordance with paragraph (c) of section 16(2) shall also set out, on the basis of a solvency valuation \u2014 (a) whether there is a solvency deficiency; (b) if there is a solvency deficiency, the amount of the solvency deficiency and the special payments required to amortise over a term not exceeding five years; (c) the solvency liabilities; (d) the solvency assets; (e) whether the transfer ratio is less than one; and (f) if the transfer ratio is less than one, the transfer ratio. (8) A report prepared in accordance with paragraph (c) of section 16(2) shall also include \u2014 (a) a summary of the plan provisions; (b) a description of the actuarial methods and assumptions used for the going concern and solvency valuations; (c) a summary of the member census data; and (d) a calculation of the employer\u2019s required annual contribution as specified in regulation 3(3). (9) The administrator shall file a report prepared in accordance with paragraph (c) of section 16(2) within six months of the valuation date. Regulation 5\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_5\", \"num\": \"5.\", \"text\": \"Amendment 5. (1) Where an amendment to a defined benefit plan reduces or increases contributions or creates or increases a going concern unfunded liability or solvency deficiency, the administrator shall file a report containing amendments to any of the information contained in the immediately preceding report prepared in accordance with paragraph (c) of section 16(2) or this regulation that is affected by the amendment. (2) The administrator shall file the report required under subregulation (1) within six months following the date the amendment is required to be registered under section 12(3).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_6\", \"num\": \"6.\", \"text\": \"Assumptions and methods 6. (1) An actuary preparing a report under these regulations shall use assumptions appropriate for the plan and methods consistent with sound principles established by precedent or by common usage within the actuarial profession and with the requirements and these regulations. (2) The Superintendent may issue guidelines setting out acceptable actuarial methods and assumptions for reports required under the Law and these regulations and they shall be adopted so far as possible by administrators, their agents and actuaries, who shall in their reports, identify any departure from such assumptions.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_7\", \"num\": \"7.\", \"text\": \"Information to accompany application for registration 7. (1) The information which shall accompany an application for registration of a defined contribution plan shall include a report certified by an actuary setting out \u2014 (a) a summary of the plan provisions; (b) market value broken down between members\u2019 required and members\u2019 voluntary contribution accounts; (c) market value of assets by categories as set out in regulation 3(1) of the National Pensions (Pension Fund Investments) Regulations (1998 Revision), broken down between each of members\u2019 required and members\u2019 voluntary contribution accounts; (d) demographics of plan members broken down on the basis of age, sex and length of service of plan members, sufficient to assess the appropriateness of the investment of the assets; and (e) the opinion of the actuary as to the appropriateness of asset mix to plan membership on a plan basis, on the assumption that pension income is, or will be, the principal income of the members and former members on retirement. Regulation 8 (2) A report specified in paragraph (c) of section 16(2) shall contain the information specified in subregulation (1) and shall be prepared with a valuation date not more than five years after the valuation date of the preceding report or, in the case of the first report, not more than five years after the date of the first registration of the plan.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_8\", \"num\": \"8.\", \"text\": \"Inflation protection 8. Notwithstanding any other provisions of a defined benefit or defined contribution plan or a retirement savings arrangement or life annuity purchased pursuant to paragraph (b) or (c) of section 34(1), lifetime benefits payable shall be increased by a minimum of two per cent annually, and the payments shall be actuarially adjusted so that the commuted value of the lifetime benefits with the annual increases is equal to the commuted value of the lifetime benefits otherwise payable under the plan, account or annuity. 9. Transfers -commuted value 9. (1) The commuted value of a pension benefit determined under a defined benefit provision shall \u2014 (a) be determined in a manner that complies with the Canadian Institute of Actuaries Recommendations for the Computation of Transfer Values from Registered Pension Plans, or a corresponding British or American equivalent that may be approved for the purpose by the Governor in Council after consultation with the Superintendent; and (b) be determined as at the date of termination of membership, death, retirement, or termination of a pension plan. (2) The commuted value of a pension benefit determined under a defined contribution provision shall be the value of the accumulated contributions, with interest, made to the pension fund by or in respect of the member or former member. (3) If, at the date of determination of the commuted value, the former member has an unconditional entitlement to optional forms of a pension benefit or to optional commencement dates, the option that has the greatest value shall be used to determine the commuted value. Regulation 9 Publication in revised form authorised by the Governor in Council this 21st day of July, 1998. Carmena H. Parsons Clerk of Executive Council\", \"element\": \"section\", \"heading\": null}], \"meta\": {\"notes\": null, \"workflow\": null, \"lifecycle\": {\"source\": \"#cilegis\", \"eventRef\": [{\"eId\": \"e_commence_1998_01_01\", \"date\": \"1998-01-01\", \"type\": \"generation\", \"source\": \"#cilegis\"}]}, \"references\": {\"source\": \"#canary\", \"TLCRole\": [], \"TLCEvent\": [{\"eId\": \"ev_commencement\", \"href\": \"\/akn\/ontology\/canary\/event\/commencement\", \"showAs\": \"commencement\"}], \"TLCPerson\": [], \"TLCConcept\": [{\"eId\": \"inForce\", \"href\": \"\/akn\/ontology\/canary\/concept\/temporal\/in-force\", \"showAs\": \"in force\"}], \"TLCProcess\": [], \"TLCLocation\": [], \"TLCOrganization\": [{\"eId\": \"cilegis\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\", \"showAs\": \"Cayman Islands legislation mirror (kyleg)\"}]}, \"temporalData\": {\"source\": \"#cilegis\", \"temporalGroup\": [{\"eId\": \"tg_inforce_1998_01_01\", \"timeInterval\": 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\"FRBRManifestation\": {\"FRBRuri\": \"\/akn\/ky\/act\/sl\/1998\/2\/eng@1998-01-01.xml\", \"FRBRdate\": [{\"date\": \"2026-06-22\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/act\/sl\/1998\/2\/eng@1998-01-01.xml\", \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRformat\": \"application\/xml\"}}}, \"name\": \"act\", \"header\": {\"title\": \"National Pensions (Actuarial and Fund Management) Regulations\", \"actNumber\": \"2 of 1998\", \"longTitle\": null}}, \"doc\": null, \"bill\": null, \"judgment\": null}}","akn_full_text":"CAYMAN ISLANDS\n\nNational Pensions Law\nNATIONAL PENSIONS (ACTUARIAL AND\nFUND MANAGEMENT) REGULATIONS\n\n(1998 Revision)\nSupplement No. 4 published with Gazette No. 19 of 14th September, 1998.\n\nPage 2\nRevised as at 21st day of July, 1998\nc\n\nPUBLISHING DETAILS\nRevised under the authority of the Law Revision Law (19 of 1975).\nThe National Pensions (Actuarial and Fund Management) Regulations, 1998 originally\nmade under the principal Law, as amended, as Part of the Schedule thereto, and which\ncame into force on the 1st June, 1998.\nRevised this 21st day of July, 1998.\n\nNational Pensions (Actuarial and Fund Management) Regulations\nArrangement of Regulations\n\nc\nRevised as at 21st day of July, 1998\nPage 3\n\nCAYMAN ISLANDS\n\nNational Pensions Law\nNATIONAL PENSIONS (ACTUARIAL AND\nFUND MANAGEMENT) REGULATIONS\n(1998 Revision)\nArrangement of Regulations\nRegulation\nPage\n1.\nCitation ......................................................................................................................................5\n2.\nDefinitions and interpretation .....................................................................................................5\n3.\nDefined benefit plan \u2013 funding ...................................................................................................8\n4.\nDefined benefit plan- reports ......................................................................................................9\n5.\nAmendment ............................................................................................................................. 12\n6.\nAssumptions and methods ....................................................................................................... 12\n7.\nInformation to accompany application for registration .............................................................. 12\n8.\nInflation protection ................................................................................................................... 13\n9.\nTransfers -commuted value ..................................................................................................... 13\n\nNational Pensions (Actuarial and Fund Management) Regulations\nRegulation 1\n\nc\nRevised as at 21st day of July, 1998\nPage 5\n\nCAYMAN ISLANDS\n\nNational Pensions Law\nNATIONAL PENSIONS (ACTUARIAL AND\nFUND MANAGEMENT) REGULATIONS\n(1998 Revision)\n\n1.\nCitation\n1.\nThese regulations may be cited as the National Pensions (Actuarial and Fund\nManagement) Regulations (1998 Revision).\n2.\nDefinitions and interpretation\n2.\n(1) In these regulations \u2014\n\u201cactuarial gain\u201d means the sum, if positive, at the valuation date of a going\nconcern valuation, of \u2014\n(a)\nthe gain or loss to a pension plan during the period since the last review\ndate of the increase or decrease in the value of the assets of a pension\nplan, less the liabilities of the plan during the period since the last\nvaluation date, determined in a going concern valuation of the plan\nresulting from the difference between actual experience and the\nexperience expected by the actuarial assumptions on which that valuation\nwas based;\n(b) the amount by which the going concern liabilities increase or decrease as\na result of an amendment to the plan; and\n(c)\nthe amount by which the going concern liabilities increase or decrease or\nthe going concern assets increase or decrease as a result of a change in\n\nRegulation 2\nNational Pensions (Actuarial and Fund Management) Regulations\n\nPage 6\nRevised as at 21st day of July, 1998\nc\n\nactuarial methods or assumptions upon which the current going concern\nvaluation is based;\n\u201cactuarial loss\u201d means the sum, if negative, at the valuation date of a going\nconcern valuation, of \u2014\n(a)\nthe gain or loss to a pension plan, during the period since the last review\ndate, of the increase or decrease in the value of the assets of a pension\nplan less the liabilities of the plan, during the period since the last\nvaluation date determined in a going concern valuation of the plan\nresulting from the difference between actual experience and the\nexperience expected by the actuarial assumptions on which that valuation\nwas based;\n(b) the amount by which the going concern liabilities increase or decrease as\na result of an amendment to the plan; and\n(c)\nthe amount by which the going concern liabilities increase or decrease or\nthe going concern assets increase or decrease as a result of a change in\nactuarial methods or assumptions upon which the current going concern\nvaluation is based;\n\u201cbook value\u201d, in relation to an asset, means the cost of acquisition to the\nperson acquiring the asset, including all direct ancillary costs associated with\nthe acquisition;\n\u201cgoing concern assets\u201d means the value of the assets of a pension plan,\nincluding income due and accrued, determined on the basis of a going concern\nvaluation;\n\u201cgoing concern liabilities\u201d means the liabilities of a pension plan, including\namounts due and unpaid, determined on the basis of a going concern\nvaluation;\n\u201cgoing concern unfunded liability\u201d means the excess of going concern\nliabilities over going concern assets;\n\u201cgoing concern valuation\u201d means a valuation of the going concern assets and\ngoing concern liabilities of a pension plan prepared on the basis of a\ncontinuing pension plan as required by the Law and these regulations;\n\u201cinitial surplus\u201d means the surplus in a pension plan, determined on an\nongoing basis, that is in existence on the 1st June, 1998;\n\u201cinitial unfunded past service liability\u201d means the excess of going concern\nliabilities over going concern assets on the date of the establishment of a\npension plan or, in the case of a plan in existence at the 1st June, 1998, the 1st\nJune, 1998;\n\u201cmarket value\u201d in respect of an asset means the price that would be obtained\nin the purchase or sale of the asset in an open market under conditions\nrequisite to a fair transaction between parties;\n\nNational Pensions (Actuarial and Fund Management) Regulations\nRegulation 3\n\nc\nRevised as at 21st day of July, 1998\nPage 7\n\n\u201csection\u201d means a section of the National Pension Law (1998 Revision);\n\u201csolvency assets\u201d means the market value of investments held by a pension\nplan plus any cash balances of the plan and accrued or receivable income\nitems of the plan, except for employer and member contributions, less any\namounts payable by the plan;\n\u201csolvency deficiency\u201d means the deficiency determined by a solvency\nvaluation performed in accordance with regulation 4(1)(b) or (7);\n\u201csolvency liabilities\u201d means the liabilities of the plan calculated on a plan\ntermination basis;\n\u201cspecial payment\u201d means a payment or one of a series of payments\ndetermined for the purpose of liquidating a going concern unfunded liability or\nsolvency deficiency in accordance with regulation 3;\n\u201csurplus\u201d in respect of an ongoing pension plan means the excess of the assets\nof the plan over the liabilities of the pension plan where \u2014\n(a)\nthe assets of the plan are calculated on the basis of the market value of\nthe investments held by the fund plus any cash balances and accrued or\nreceivable items; and\n(b) the liabilities of the plan are calculated to be the greater of the going\nconcern liabilities and the solvency liabilities;\n\u201csurplus\u201d in respect of a pension plan that is or is being wound up means the\nexcess of the assets of the plan over the solvency liabilities where the assets of\nthe plan are calculated on the basis of the market value of the investments held\nby the fund plus any cash balances and accrued or receivable items;\n\u201ctransfer ratio\u201d means the fraction obtained by dividing the solvency assets\nof a pension plan by the liabilities of the plan calculated on a plan termination\nbasis at the latest valuation date; and\n\u201cvaluation date\u201d means the date at which an actuarial report that is filed with\nthe Superintendent is prepared.\n(2) In calculating solvency assets or a transfer ratio, where there is no market\nvalue for an investment of a pension plan and the investment is issued or\nguaranteed by a government, the book value shall be used instead of market\nvalue.\n(3) For the purposes of this regulation, a going concern unfunded liability, a past\nservice unfunded liability, a solvency deficiency, and a transfer ratio each\narises on the valuation date of the report in which it is determined, and a report\nis a report of an actuary that is filed with the Superintendent.\n\nRegulation 3\nNational Pensions (Actuarial and Fund Management) Regulations\n\nPage 8\nRevised as at 21st day of July, 1998\nc\n\n3.\nDefined benefit plan \u2013 funding\n3.\n(1) The total annual contribution to be made to a defined benefit plan each year by\nthe combination of employer and member contributions is equal to the\ngreater of \u2014\n(a)\nthe amount required to fund the plan on a going concern basis as defined\nin subregulation (2); or\n(b) the annual amount required, as defined in regulation 4(7)(b), to amortise\nany solvency deficiency as at the valuation date over an amortisation\nperiod not exceeding five years.\n(2) The amount required to fund a defined benefit plan on a going concern basis is\nequal to the sum of the following elements of the going concern valuation for\nthe year \u2014\n(a)\nthe normal cost;\n(b) the special payment, if any, required to amortise the initial unfunded past\nservice\nliability\non\na\ngoing\nconcern\nbasis\nas\ndefined\nin\nregulation 4(1)(a)(v); and\n(c)\nspecial payments required to amortise the actuarial losses as determined\nin accordance with regulation 4(6)(e)(i),\nless any special payments required to amortise the actuarial gains as\ndetermined in accordance with regulation 4(6)(e)(ii).\n(3) The employer\u2019s required annual contribution shall be equal to the total annual\ncontribution determined in subregulation (1), less the expected member\ncontributions based on the member contribution rate determined in\nsubregulation (4) and expected annual member earnings, but shall not be less\nthan zero.\n(4) The member contribution rate shall be determined at each valuation and shall\nbe equal to the lesser of \u2014\n(a)\nthe maximum required member contribution rate permitted by the\nLaw; or\n(b) the percentage rate determined in accordance with the following formula-\npercentage rate = (\u00bdC)\u00f7E, where \u2014\nC =\n(a)\nthe amount determined in subregulation (1)(a), less the amount\ndetermined in subregulation (2)(b), if the amount determined in\nsubregulation (1)(a) is greater than, or equal to, the amount\ndetermined in subregulation (1)(b); or\n(b) the amount determined in subregulation (1)(b), less the amount\nrequired to amortise any initial solvency deficiency as determined\nin\nregulation\n4(1)(b)(ii),\nif\nthe\namount\ndetermined\nin\n\nNational Pensions (Actuarial and Fund Management) Regulations\nRegulation 4\n\nc\nRevised as at 21st day of July, 1998\nPage 9\n\nsubregulation (1)(a) is less than the amount determined in\nsubregulation (1)(b); but\n(c)\nshall in no case be less than zero; and\nE = aggregate annual member earnings as at the date of the valuation,\nprovided that in calculating the aggregate annual member earnings,\nno earnings of any individual member in excess of his year\u2019s\nmaximum pensionable earnings shall be taken into account.\n(5) An initial surplus in a defined benefit plan in existence on the 1st June, 1998,\nestablished under the going concern valuation at the 1st June, 1998, may be\nused to offset employer contributions until the earlier of \u2014\n(a)\nthe date at which the sum of the offsets is equal to the initial surplus at\nthe 1st June, 1998;\n(b) the plan is no longer in surplus on a going concern basis; or\n(c)\nthe plan has a solvency deficiency,\nall of which shall be established by an actuarial report prepared in compliance\nwith regulation 4.\n4.\nDefined benefit plan- reports\n4.\n(1) The information which shall accompany an application for registration of a\ndefined benefit plan shall include a report certified by an actuary that\nsets out \u2014\n(a)\non the basis of a going concern valuation with respect to the defined\nbenefits \u2014\n(i)\nthe normal cost, in the first year during which the plan is registered\nand the rule for computing the normal cost in subsequent years up\nto the date of the next report;\n(ii) an estimate of the normal cost, in the subsequent years up to the\ndate of the next report;\n(iii) the estimated aggregate employee contributions to the pension plan\nduring each year up to the date of the succeeding report;\n(iv) the initial unfunded past service liability or initial surplus under the\npension plan as at the date of the establishment of the plan; and\n(v) where there is an initial unfunded past service liability, the special\npayments required to amortise the initial past service unfunded\nactuarial liability over a term not exceeding five years;\n(b) on the basis of a solvency valuation \u2014\n(i)\nwhether there is a solvency deficiency;\n\nRegulation 4\nNational Pensions (Actuarial and Fund Management) Regulations\n\nPage 10\nRevised as at 21st day of July, 1998\nc\n\n(ii) if there is a solvency deficiency, the amount of the solvency\ndeficiency and the special payment required to amortise it over a\nterm not exceeding five years;\n(iii) whether the transfer ratio is less than one; and\n(iv) if the transfer ratio is less than one, the transfer ratio; and\n(c)\na calculation of the employer\u2019s required annual contribution as specified\nin regulation 3(3).\n(2) For the purposes of the report specified in subregulation (1), the initial\nvaluation date \u2014\n(a)\nfor a plan established after the 1st June, 1998, shall be the date of the\nestablishment of the plan; and\n(b) for a plan in existence at the 1st June, 1998, shall be the 1st June, 1998.\n(3) A report specified in paragraph (c) of section 16(2) shall contain the\ninformation specified in subregulation (1)(a) and (b) and shall be prepared\nwith a valuation date not more than three years after the valuation date of the\npreceding report or, in the case of the first report, not more than three years\nafter the date of the first registration of the plan.\n(4) Where a report prepared in accordance with paragraph (c) of section 16(2)\nindicates solvency concerns, the next report in respect of the plan shall be\nprepared and certified with a valuation date within one year from the date of\nthe first-mentioned report or by such earlier date as the Superintendent may\nspecify.\n(5) A report relating to a defined benefit plan prepared under paragraph (c) of\nsection 16(2) shall indicate solvency concerns where \u2014\n(a)\nthe ratio of the solvency assets to the solvency liabilities is less\nthan 0.8; or\n(b) the solvency liabilities exceed the solvency assets by more than five\nhundred thousand dollars and the ratio of the solvency assets to the\nsolvency liabilities is less than 0.9.\n(6) Each report under this section shall set out, on the basis of a going concern\nvaluation \u2014\n(a)\nthe normal cost in the year following the valuation date of the report and\nthe rule for computing the cost in subsequent years up to the valuation\ndate of the next report;\n(b) an estimate of the normal cost in the subsequent years up to the valuation\ndate of the next report;\n(c)\nthe estimated aggregate employee contributions to the pension plan\nduring the year following the valuation date of the report and the\nsubsequent years up to the valuation date of the next report;\n\nNational Pensions (Actuarial and Fund Management) Regulations\nRegulation 5\n\nc\nRevised as at 21st day of July, 1998\nPage 11\n\n(d) the present value of future special payments remaining to be paid after\nthe valuation date;\n(e)\nthe actuarial gain or actuarial loss in the plan, and \u2014\n(i)\nwhere there is an actuarial loss, the special payments that will\namortise any increase in a going concern unfunded liability\nresulting from the loss over a term not exceeding five years; or\n(ii) where there is an actuarial gain, the special payments that will\namortise any decrease in a going concern unfunded liability\nresulting from the gain over a term not exceeding five years;\n(f)\nthe going concern liability as at the valuation date; and\n(g) the book value and market value of plan assets as at the valuation date.\n(7) A report prepared in accordance with paragraph (c) of section 16(2) shall also\nset out, on the basis of a solvency valuation \u2014\n(a)\nwhether there is a solvency deficiency;\n(b) if there is a solvency deficiency, the amount of the solvency deficiency\nand the special payments required to amortise over a term not exceeding\nfive years;\n(c)\nthe solvency liabilities;\n(d) the solvency assets;\n(e)\nwhether the transfer ratio is less than one; and\n(f)\nif the transfer ratio is less than one, the transfer ratio.\n(8) A report prepared in accordance with paragraph (c) of section 16(2) shall also\ninclude \u2014\n(a)\na summary of the plan provisions;\n(b) a description of the actuarial methods and assumptions used for the going\nconcern and solvency valuations;\n(c)\na summary of the member census data; and\n(d) a calculation of the employer\u2019s required annual contribution as specified\nin regulation 3(3).\n(9) The administrator shall file a report prepared in accordance with paragraph (c)\nof section 16(2) within six months of the valuation date.\n\nRegulation 5\nNational Pensions (Actuarial and Fund Management) Regulations\n\nPage 12\nRevised as at 21st day of July, 1998\nc\n\n5.\nAmendment\n5.\n(1) Where an amendment to a defined benefit plan reduces or increases\ncontributions or creates or increases a going concern unfunded liability or\nsolvency deficiency, the administrator shall file a report containing\namendments to any of the information contained in the immediately preceding\nreport prepared in accordance with paragraph (c) of section 16(2) or this\nregulation that is affected by the amendment.\n(2) The administrator shall file the report required under subregulation (1) within\nsix months following the date the amendment is required to be registered\nunder section 12(3).\n6.\nAssumptions and methods\n6.\n(1) An actuary preparing a report under these regulations shall use assumptions\nappropriate for the plan and methods consistent with sound principles\nestablished by precedent or by common usage within the actuarial profession\nand with the requirements and these regulations.\n(2) The Superintendent may issue guidelines setting out acceptable actuarial\nmethods and assumptions for reports required under the Law and these\nregulations and they shall be adopted so far as possible by administrators, their\nagents and actuaries, who shall in their reports, identify any departure from\nsuch assumptions.\n7.\nInformation to accompany application for registration\n7.\n(1) The information which shall accompany an application for registration of a\ndefined contribution plan shall include a report certified by an actuary\nsetting out \u2014\n(a)\na summary of the plan provisions;\n(b) market value broken down between members\u2019 required and members\u2019\nvoluntary contribution accounts;\n(c)\nmarket value of assets by categories as set out in regulation 3(1) of the\nNational Pensions (Pension Fund Investments) Regulations (1998\nRevision), broken down between each of members\u2019 required and\nmembers\u2019 voluntary contribution accounts;\n(d) demographics of plan members broken down on the basis of age, sex and\nlength of service of plan members, sufficient to assess the\nappropriateness of the investment of the assets; and\n(e)\nthe opinion of the actuary as to the appropriateness of asset mix to plan\nmembership on a plan basis, on the assumption that pension income is, or\nwill be, the principal income of the members and former members on\nretirement.\n\nNational Pensions (Actuarial and Fund Management) Regulations\nRegulation 8\n\nc\nRevised as at 21st day of July, 1998\nPage 13\n\n(2) A report specified in paragraph (c) of section 16(2) shall contain the\ninformation specified in subregulation (1) and shall be prepared with a\nvaluation date not more than five years after the valuation date of the\npreceding report or, in the case of the first report, not more than five years\nafter the date of the first registration of the plan.\n8.\nInflation protection\n8.\nNotwithstanding any other provisions of a defined benefit or defined contribution\nplan or a retirement savings arrangement or life annuity purchased pursuant to\nparagraph (b) or (c) of section 34(1), lifetime benefits payable shall be increased by\na minimum of two per cent annually, and the payments shall be actuarially adjusted\nso that the commuted value of the lifetime benefits with the annual increases is\nequal to the commuted value of the lifetime benefits otherwise payable under the\nplan, account or annuity.\n9.\nTransfers -commuted value\n9.\n(1) The commuted value of a pension benefit determined under a defined benefit\nprovision shall \u2014\n(a)\nbe determined in a manner that complies with the Canadian Institute of\nActuaries Recommendations for the Computation of Transfer Values\nfrom Registered Pension Plans, or a corresponding British or American\nequivalent that may be approved for the purpose by the Governor in\nCouncil after consultation with the Superintendent; and\n(b) be determined as at the date of termination of membership, death,\nretirement, or termination of a pension plan.\n(2) The commuted value of a pension benefit determined under a defined\ncontribution provision shall be the value of the accumulated contributions,\nwith interest, made to the pension fund by or in respect of the member or\nformer member.\n(3) If, at the date of determination of the commuted value, the former member has\nan unconditional entitlement to optional forms of a pension benefit or to\noptional commencement dates, the option that has the greatest value shall be\nused to determine the commuted value.\n\nRegulation 9\nNational Pensions (Actuarial and Fund Management) Regulations\n\nPage 14\nRevised as at 21st day of July, 1998\nc\n\nPublication in revised form authorised by the Governor in Council this 21st day of\nJuly, 1998.\nCarmena H. Parsons\nClerk of Executive Council","akn_extracted_at":"2026-06-22 15:39:24.106403+00","cms_id":"1998-0002","law_type":"subordinate","year":"1998","number":"2","title":"National Pensions (Actuarial and Fund Management) Regulations","status":"in_force"},"provenance":{"files":[{"file_id":"5631","expr_id":"576","kind":"akn_xml","filename":"1998-0002_1998 Revision.akn.xml","source_url":null,"storage_path":"\/Users\/q\/kyleg-data\/working\/SUBORDINATE\/1998\/1998-0002\/1998-0002_1998 Revision.akn.xml","content_md5":"f898419722e8222fe93c26f20ee4728c","byte_size":"22965","http_last_modified":null,"fetched_at":"2026-06-22 15:39:24.211215+00"},{"file_id":"1151","expr_id":"576","kind":"pristine_pdf","filename":"1998-0002_1998 Revision.pdf","source_url":"\/cms\/images\/LEGISLATION\/SUBORDINATE\/1998\/1998-0002\/1998-0002_1998 Revision.pdf","storage_path":"\/Users\/q\/kyleg-data\/pristine\/SUBORDINATE\/1998\/1998-0002\/1998-0002_1998 Revision.pdf","content_md5":"e29c9eb8562a90df5f15c7628c8ee4c7","byte_size":"492985","http_last_modified":null,"fetched_at":"2026-06-21 23:09:36.450965+00"},{"file_id":"1152","expr_id":"576","kind":"working_pdf","filename":"1998-0002_1998 Revision.pdf","source_url":"\/cms\/images\/LEGISLATION\/SUBORDINATE\/1998\/1998-0002\/1998-0002_1998 Revision.pdf","storage_path":"\/Users\/q\/kyleg-data\/working\/SUBORDINATE\/1998\/1998-0002\/1998-0002_1998 Revision.pdf","content_md5":"e29c9eb8562a90df5f15c7628c8ee4c7","byte_size":"492985","http_last_modified":null,"fetched_at":"2026-06-21 23:09:36.450965+00"}],"paragraph_count":23,"latest_history":null},"quality":{"expr_id":"576","doc_id":"576","quality_state":"needs_review","quality_score":"76","needs_human_review":"t","deterministic_categories":"{duplicate_text,page_header_footer_noise}","llm_categories":"{truncated_text,other}","repair_actions":"{collapse_duplicate_text,manual_review,reextract_full_text,strip_page_furniture}","finding_severity_counts":"{\"low\": 1, \"medium\": 1}","finding_summary":"Sample ends abruptly mid-definition; likely truncation issue requiring review of full text.","assessed_at":"2026-06-22 15:29:45.906198+00","updated_at":"2026-06-22 15:29:45.906198+00"}}