|
|
Changes in funding rules to provide extended solvency funding flexibility for plans that file under the CCAA or BIA would need to recognize the risk that the plan sponsor could fail before the plan's solvency deficiency has been eliminated. In the case of Air Canada, a number of terms and conditions were placed on the funding relief. These included a requirement to disclose appropriate information to plan beneficiaries, proper representation of different beneficiary groups, and an indication of beneficiaries' consent. Certain restrictions, such as controls on benefit improvements, were also imposed to mitigate the risk of plan beneficiaries receiving less than the full value of promised benefits. Consideration could also be given to mechanisms that would provide additional protection for plan beneficiaries in the event of default by a plan sponsor that has been granted funding relief.
|
