Annual contributions

(1) The total annual contributions to be made to a defined benefit pension plan each year by the combination of employer and member contributions shall be equal to the greater of– (a) the amount required to fund the plan on a going concern basis as specified in subregulation (2); and (b) the sum of– (i) the normal cost determined in a going concern valuation; and (ii) the annual amount of special payments required to amortize any solvency deficiency as at the valuation date over an amortization period not exceeding five years. (2) The amount required to fund a defined benefit pension plan on a going concern basis is equal to the sum of the following elements of the going concern valuation for the year– (a) the normal cost; (b) the special payments, if any, required to amortize the past service unfunded liability; 40 Private Pensions (c) special payments required to amortize the actuarial losses, less any special payments required to amortize the actuarial gains; (d) the remaining special payments required to amortize the going concern unfunded liability in the immediately preceding reports prepared in accordance with section 7(2) of the Act and regulation33(1) or 35(1). CAP. 30:01. (3) The employer’s required annual contributions 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), but shall not be less than zero. (4) For the purposes of subregulation (1), member’s contributions shall be in accordance with the plan provisions and the Act. (5) Employer contributions in respect of the normal cost for each period covered by a report beginning on or after the effective date shall be paid into the pension fund in monthly instalments. (6) The amount of the instalment referred to in subregulation (5) shall be– (a) a total fixed dollar amount; (b) a fixed dollar amount in respect of each member of the pension plan; or (c) a fixed percentage either of the portion of payroll related to members of the pension plan or of the members’ contributions. Private Pensions 41 (7) Employer contributions for special payments with interest at the rate used to determine the going concern deficiency shall be paid into the pension fund in equal monthly instalments over a period of fifteen years beginning on the valuation date of the report in which the unfunded liability or actuarial loss was determined. (8) Employer contributions for amounts required to amortize any solvency deficiency with interest at the rate used to determine the solvency deficiency, shall be paid into the pension fund in equal monthly instalments over a period of five years beginning on the valuation date of the report in which the solvency deficiency was determined. (9) A surplus established under a going concern valuation may be used to reduce or determine employer contributions to the plan until the earlier of the date at which– (a) the plan is no longer in surplus on a going concern basis; and (b) the plan has a solvency deficiency, as determined in a report. (10) Within 60 days after the report is filed or submitted, the employer shall pay into the pension fund– (a) all amounts due under the report on the date the report is filed or submitted; and (b) interest on those amounts calculated at the going concern interest rate or the solvency valuation interest rate, whichever applies in the circumstances. (11) The actuary who prepares the report shall calculate the amount of interest that is payable under paragraph (10) (b). 42 Private Pensions