27. Where an actuarial valuation of a target-benefit pension plan shows that the sum of the cost of the plan’s obligations and the additional contribution exceeds the contributions set out under the plan, the shortfall in contributions, subject to the terms and conditions prescribed by the plan text, must be offset by one or more of the following corrective measures:
(1) a reduction in the benefits arising from service completed prior to the date of the actuarial valuation;
(2) an increase in member contributions;
(3) a reduction of the benefits target.
The plan text must provide the types of corrective measures that can be used and indicate the priority of use for each measure.
The provisions of the first paragraph only apply where the shortfall in contributions is greater than 2% of the contributions set under the plan.
O.C. 1052-2013, s. 27; O.C. 324-2016, s. 81.