The guidelines for when to file annual valuation reports were modified on March 5, 2009 by the release of Policy Bulletin 27 by Alberta Finance and Enterprise. The new rules now require some plans to file a valuation report if their funded or solvency ratio falls below 85 percent.
The main provisions of the Bulletin are as follows:
- Plans designated by the Superintendent of Pensions as publicly-funded, Specified Multi-Employer Pension Plans (SMEPPs) SMEPPs or Non-SMEPPS that have been granted a temporary suspension of solvency payments will be required to file a valuation report if their funded or solvency ratio falls below 85 percent.
- The Superintendent can also request a valuation at any time, regardless of funded status.
- If a plan administrator makes a contribution to raise the funded ratio to at least 85 percent, the annual filing will not be mandatory and the plan will follow the regular triennial valuation schedule.
- In such a scenario, the administrator must give the Superintendent written notice of the contribution within 60 days of making the payment, along with a letter from an actuary confirming that the contributions are enough to increase the ratio to the required level.
- An exemption will also apply if satisfactory evidence is presented from at least two recognized rating agencies that the plan administrator’s credit rating is at least one grade above the minimum investment grade.
Until now, only publicly-funded plans and SMEPPs have been required to present annual valuation reports. The new guidelines modify this requirement as per the funding relief policy approved in the Employment Pension Plans Amendment Regulation 2009 on February 18, 2009.