What happens if the actuary determines that there is an actuarial deficit?
A The Pension Benefits Act of New Brunswick requires that the deficit be removed by either reducing benefits or increasing contributions, or a combination of both. The actuarial valuation filed with the Superintendent of Pensions of the Province of New Brunswick must include a plan for eliminating the deficit. If it is decided to eliminate the deficit by increasing contributions, the additional contributions required to reduce the deficit can be amortized (spread) over a prescribed period of time. This requirement sets a minimum on the extra contributions required to eliminate a particular actuarial deficit.