Temporary Funding Relief The global credit crisis has led to a sharp decline in global equity markets that has reduced the funded status of federally regulated private pension plans; the effect of the decline in plan assets is to require sponsors to increase their payments to the plan to ensure it is funded on a solvency basis (see below). [...] A common suggestion in this regard has been to change the funding period (both extensions and contractions in the funding period were suggested in the 2005 consultation, as well as linking the period to the financial strength of the sponsor). [...] Letters of credit, on the other hand, can be released if the pension returns to a fully funded position An important component of the solvency funding framework is the discount rate used in the determination of a plan’s liabilities. [...] While the specific rates used in the preparation of the valuation follow the industry standards, questions have been raised about the appropriateness of the current requirement that bases the discount rate on a long-term Government of Canada bond plus an adjustment factor. [...] The payments when due would still be governed by the Act; consequently, when due, they would fall under the deemed trust provisions of the Act.3 However, in certain situations, it may be appropriate to have the final settlement of the plan subject to some negotiated agreement between the sponsor and plan members.