Pension Benefits Standards Regulations, 1985

22.1 For the purpose of subparagraph 28(1)(a)(ii) of the Act, the written explanation shall include, in the case of a negotiated contribution plan, a description of the funding arrangement, including an indication that

• (a) pension benefits or pension benefit credits may need to be reduced if negotiated contributions are insufficient to meet prescribed solvency standards; and

• (b) the administrator may amend the plan to reduce, subject to the Superintendent’s authorization, pension benefits or pension benefit credits.