Liability of employer

(1) For the purposes of this section, “solvency deficit” means the amount by which the solvency liabilities as at the date of termination of a plan or the valuation date, as the case may be, exceeds the sum of the solvency assets at that date and the amounts required to be paid under section 48(1) of the Act. CAP. 30:01. (2) For the purposes of section 48(2) of the ActCAP. 30:01. 58 Private Pensions (a) an employer shall pay an amount equal to the solvency deficit as at the date of termination of the plan either in a lump sum or by equal annual payments sufficient to liquidate the solvency deficit over a period of five years from the date of termination; (b) the interest rate used to determine the annual payments is the same as the interest rate used to determine the solvency liabilities of the plan at the date of termination; and (c) the annual payments shall be paid by equal monthly instalments no later than 30 days after the end of each month. (3) An actuarial report, filed after termination of the plan but before the final settlement of liabilities, shall set out the remaining solvency assets, solvency liabilities, solvency deficit and remaining payments required to liquidate the solvency deficit as at the valuation date. (4) Any solvency deficit that arises five or more years after the date of termination of the plan shall be immediately paid down.