R-9.2, r. 3 - Regulation respecting the partition and assignment of benefits accrued under the Pension Plan of Peace Officers in Correctional Services

Updated to 1 January 2024

This document has official status.

chapter R-9.2, r. 3

Regulation respecting the partition and assignment of benefits accrued under the Pension Plan of Peace Officers in Correctional Services

Act respecting the Pension Plan of Peace Officers in Correctional Services

(chapter R-9.2, s. 130).

DIVISION I STATEMENT OF BENEFITS OF THE EMPLOYEE OR FORMER EMPLOYEE

(s. 130, pars. 8.1 and 8.2)

1. Any application for a statement referred to in section 125.1 of the Act respecting the Pension Plan of Peace Officers in Penal Institutions (chapter R-9.2) must contain the following information and be accompanied by the following documents:

(1)  the name, address, social insurance number and date of birth of the employee or former employee and of his spouse;

(2)  in the case of married spouses, the marriage certificate and, where applicable, the date on which the spouses resumed living together;

(2.1)  in the case of spouses in a civil union, a certificate of civil union;

(3)  written confirmation from a certified mediator to the effect that he or she has received a mandate within the context of family mediation or written confirmation from a notary to the effect that the spouses in a civil union have undertaken a joint procedure for the dissolution of their civil union or, as the case may be, the joint declaration dissolving the civil union and the notarized transaction contract, or a copy of the application for separation from bed and board, divorce, annulment of marriage or civil union, dissolution of civil union or payment of a compensatory allowance or, where applicable, a copy of the judgment disposing of such an application;

(4)  the information that must be provided by the employer in his annual report, in accordance with section 188 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10), for the year during which the assessment is determined up to the date set for that assessment, as well as for the previous year; that information must be certified by an authorized representative of the employer.

Any application filed under this section is also valid for the other pension plans which are administered by Retraite Québec or for which Retraite Québec is responsible for paying benefits in accordance with section 4 of the Act respecting Retraite Québec (chapter R-26.3).

O.C. 839-91, s. 1; T.B. 220172, s. 1.

1.1. Any application for a statement referred to in section 125.1.1 of the Act must be signed by the employee or the former employee and his spouse. The application must contain the following information and be accompanied with the following documents:

(1)  the name, address, Social Insurance Number and date of birth of the employee or former employee and of his spouse;

(2)  an attestation by the employee or former employee and his spouse that neither was married or in a civil union on the date on which they ceased living together and, where applicable, the date of the divorce or the dissolution of the civil union and the documents attesting thereto, unless those documents have already been sent to Retraite Québec;

(3)  an attestation by the employee or former employee and his spouse of the dates on which they began and ceased living together and, where applicable, proof concerning their marital residence. Furthermore, if the spouses lived in a conjugal relationship for at least one year, but not more than three years preceding the date on which they ceased living together, they must also attest that one of the situations referred to in subparagraphs 1 to 3 of the first paragraph of section 125.1.1 of the Act occurred and, where applicable, proof thereof;

(4)  the information that must be provided by the employer in his annual report, in accordance with section 188 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10), for the year during which the assessment is determined up to the date set for that assessment, as well as for the previous year; that information must be certified by an authorized representative of the employer.

T.B. 220172, s. 2.

2. Within 90 days following the date of receipt of a duly completed application, Retraite Québec shall provide the employee or former employee and his spouse with a statement showing the following information:

(1)  the date on which the employee or former employee became a member of the Pension Plan of Peace Officers in Correctional Services and, where applicable, the date on which he ceased to be a member thereof;

(2)  the benefits accrued to the employee or former employee, without taking into account any reduction resulting from a prior partition or assignment of benefits, from the time when he became a member of the plan until the date of assessment provided for in the second paragraph of section 125.2 of the Act, as well as the value of those benefits;

(3)  the benefits accrued during the period of the marriage or civil union, as well as the value of those benefits;

(4)  where applicable, the value of the reduction of the benefits accrued as a result of any prior partition or assignment of benefits that would be applicable at the date of that assessment;

(5)  the terms and conditions for payment of the sums awarded to the spouse in accordance with Division III.

The statement of benefits and values established at the date of assessment on the basis of information known to Retraite Québec not later than the date of that statement shall be presumed accurate.

O.C. 839-91, s. 2; T.B. 220172, s. 3.

DIVISION II ESTABLISHMENT AND ASSESSMENT OF ACCRUED BENEFITS

(s. 130, par. 8.3)

§ 1 . — Establishment of benefits

3. The benefits accrued under the plan shall be established in accordance with the Act, taking into account the following provisions:

(1)  where the Act prescribes that the employee would be entitled to a pension if he ceased to be covered by the plan before reaching age 65, his benefits are deemed to correspond to a deferred pension payable at that age;

(2)  where the provisions relative to the return to work of a pensioner apply in respect of a pensioner whose benefits have ceased to be paid in whole or in part because of his return to work, or where the provisions of Division V of Chapter IV of the Act apply, the accrued benefits correspond to the benefits that would otherwise have been paid at the date of assessment if those provisions had not applied.

The accrued benefits of the period of the marriage or civil union shall be established in accordance with the first paragraph on the basis of the years or parts of a year of service credited or counted during that period, on the assumption that the employee or former employee acquired for that period benefits of the same type as those accrued to him between the time when he became a member of the plan and the date of assessment.

For the purpose of establishing and assessing the accrued benefits, those benefits correspond to the benefits acquired under the plan at the date of assessment on the basis of the years or parts of a year of service credited or counted at that date, without taking into account, except in respect of the pensioner, the years or parts of a year added at the time of calculation of the pension. For those purposes, the employee is deemed to have ceased to be covered by the plan at the date of assessment.

O.C. 839-91, s. 3; T.B. 220172, s. 4.

4. The years or parts of a year of service redeemed are credited or counted as a ratio of the capital paid therefor to the total capital. The years or parts of a year are deemed to be credited or counted for the period of the marriage or civil union to the extent that they were paid during that period.

O.C. 839-91, s. 4; T.B. 220172, s. 5.

5. Where the number of years or parts of a year of service credited under the plan, in accordance with a transfer of service accrued under another plan administered by Retraite Québec or a transfer agreement entered into in accordance with section 133 of the Act, is less than the number of years or parts of a year of service credited under the initial plan and a fraction of the number of years is included in the period of the marriage or civil union, the number of years or parts of a year of service credited in accordance with the provisions of the transfer or with the transfer agreement and which are included in the period of the marriage or civil union are equal to “A” in the following formula:

C

B x — = A

D

“B” represents the number of years or parts of a year of service credited for the purposes of the plan in accordance with the provisions of the transfer of service accrued under another plan administered by Retraite Québec or with a transfer agreement entered into in accordance with section 133 of the Act;

“C” represents the number of years or parts of a year of service accrued under the initial plan for the period of the marriage or civil union;

“D” represents the number of years or parts of a year of service accrued under the initial plan.

Where the number of years or parts of a year of service recognized under the initial pension plan for the period of the marriage or the civil union is unknown to Retraite Québec, the number of years or parts of a year of service credited in accordance with a transfer agreement entered into pursuant to section 133 of the Act and included in the period of the marriage or civil union is equal to “A” in the following formula:

E

B x — = A

F

“B” represents the number of years or parts of a year of service credited for the purposes of the plan in accordance with section 133 of the Act;

“E” represents the number of calendar days having elapsed under the initial pension plan for the period of the marriage or civil union;

“F” represents the number of calendar days having elapsed during membership in the initial pension plan.

O.C. 839-91, s. 5; T.B. 220172, s. 6.

6. Where section 102 of the Act applies and where the period of the marriage or the civil union is shorter than the period from the beginning of the employee’s or former employee’s membership in the plan to the date of assessment, the amount of pension for the period of the marriage or the civil union is equal to “M” in the following formula:

P - R

N x —— = M

Q

“N” represents the amount of pension for the period of the marriage or the civil union without taking into account section 102 of the Act;

“P” represents the amount of pension established under section 102 of the Act;

“R” represents the amount of the reduction applicable to the pension under section 51 of the Act;

“Q” represents the amount of pension calculated at the date of assessment without taking into account section 102 of the Act.

O.C. 839-91, s. 6; T.B. 220172, s. 7.

§ 2 . — Assessment of benefits

7. Where a refund of contributions is made from the benefits accrued, the value of the benefits corresponds to the contributions paid with interest calculated in accordance with the Act and accrued to the date of their valuation as though the refund had been issued at that date. Furthermore, where the amounts paid for the purchase of a pension credit are also refunded from the benefits accrued, the amounts to be refunded must be calculated separately.

Where the benefits accrued correspond to years or parts of years of service credited under the plan other than on an actuarially equivalent basis pursuant to Subdivision 2 of Division II of Chapter II of the Act as it read on 31 December 2004, the amounts to be refunded which correspond to those years or parts of years of service must be calculated separately. The same applies to the benefits accrued for the period of the marriage or civil union.

O.C. 839-91, s. 7; T.B. 220172, s. 8.

8. In this section, the expression “CIA Standards” refers to the standards of practice entitled “Practice-Specific Standards for Pension Plans - 3500 Pension Commuted Values” of the Canadian Institute of Actuaries.

The actuarial value of the benefits is determined according to the “distribution of benefits” method and corresponds to the sum of 55% of the actuarial value determined for a male and 45% of the actuarial value determined for a female.

The actuarial value of the benefits is also determined according to the following actuarial assumptions:

(1)  the mortality rates:

The mortality rates are those determined according to the CIA Standards.

(2)  the interest rates:

(a)  the interest rates for fully-indexed or non-indexed benefits are those determined according to the CIA Standards;

(b)  the interest rates for partially-indexed benefits are determined according to the following formula:

((1 + interest rate for a non-indexed benefit)/(1 + indexing rate for a partially-indexed benefit)) - 1

The result must be adjusted according to the CIA Standards.

(3)  the indexing rate:

(a)  the indexing rate for a benefit fully-indexed by the rate of increase in the Pension Index is calculated in the manner described in the CIA Standards;

(b)  the indexing rate for a benefit indexed by the excess of the rate of increase in the Pension Index (PI) over 3% or by half of the rate of increase in the Pension Index corresponds respectively to the excess of the indexing rate calculated in the manner provided in subparagraph a over 3% or by half the indexing rate calculated in the manner provided in that subparagraph.

In order to take into account inflation rate variations, the following additions are made to the results of the effective indexing formulas for actuarial value calculation purposes:

Inflation level	Addition to the result of PI–3% formula	Adjusted indexing rate	Addition to the result of the 50% PI, min. PI–3% formula	Adjusted indexing rate
0	0.00	0.00	0.20	0.20
0.5	0.00	0.00	0.10	0.35
1.0	0.00	0.00	0.05	0.55
1.5	0.05	0.05	0.00	0.75
2.0	0.10	0.10	0.00	1.00
2.5	0.20	0.20	0.00	1.25
3.0	0.40	0.40	0.00	1.50
3.5	0.20	0.70	0.00	1.75
4.0	0.10	1.10	0.00	2.00
4.5	0.05	1.55	0.00	2.25

(4)  the turnover rate: Nil

(5)  the disability rate: Nil

(6)  the proportion of persons with a spouse at death:

Age	Male	Female
18-59 years old	65%	60%
60-64 years old	65%	55%
65-69 years old	60%	50%
70-74 years old	60%	40%
75-79 years old	60%	30%
80-84 years old	60%	20%
85-89 years old	50%	10%
90-109 years old	40%	5%
110 years old	0%	0%

(7)  the age difference between spouses at death:

(a)  the male spouse of the beneficiary is assumed to be 1 year older;

(b)  the female spouse of the beneficiary is assumed to be 5 years younger.

O.C. 839-91, s. 8; T.B. 210824, s. 1; T.B. 226443, s. 1.

9. Where the accrued benefits consist in a benefit being paid at the date of assessment or that would be paid if the former employee had filed an application to that effect, or if those accrued benefits consist in a benefit that would otherwise be paid at that date, the value of those benefits is obtained by calculating the actuarial value of such a benefit.

The value of the benefits accrued for the period of the marriage or the civil union shall be established in accordance with the first paragraph.

O.C. 839-91, s. 9; T.B. 220172, s. 9.

DIVISION III PAYMENT OF THE SUMS AWARDED TO THE SPOUSE AS A RESULT OF THE PARTITION OR ASSIGNMENT OF BENEFITS

(s. 130, pars. 8.1 and 8.4)

10. In this Division, the expression “life income fund” has the meaning given to it by sections 18 and 19 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6) and the expressions “locked-in retirement account” and “annuity contract” have the meaning given to them by sections 29 and 30.

O.C. 839-91, s. 10.

11. An application for payment of the sums awarded to the spouse must be preceded by an application for assessment made in accordance with Division I and must show the name and address of the employee or former employee and of his spouse, their social insurance numbers and their dates of birth.

That application is also valid for all the pension plans for which Retraite Québec has provided a statement.

O.C. 839-91, s. 11.

12. An application for payment of the sums awarded to the spouse must be accompanied by the following documents:

(1)  the judgment of separation from bed and board, divorce, annulment of marriage or civil union, dissolution of civil union or the payment of a compensatory allowance, unless the judgment has already been sent to Retraite Québec;

(2)  where applicable, any other judgment relative to the partition or assignment of the benefits of the employee or former employee or the joint declaration dissolving the civil union along with the notarized transaction contract;

(3)  where applicable, the agreement entered into between the spouses regarding the terms for payment out of benefits accrued under the Pension Plan of Peace Officers in Correctional Services;

(3.1)  in the case of spouses referred to in the first paragraph of section 125.1.1 of the Act, the agreement between the spouses concerning partition of the benefits accrued by the employee or former employee under the Pension Plan of Peace Officers in Correctional Services, signed before a notary or attorney or a sworn declaration signed by both spouses within 12 months following the date on which they ceased living together;

(4)  the divorce certificate and, where applicable, the certificate of non-appeal.

O.C. 839-91, s. 12; T.B. 220172, s. 10.

13. Upon receipt of a duly completed application for payment, Retraite Québec shall send the employee or former employee a statement showing the sums awarded to the spouse as well as the amount of the reduction calculated pursuant to Division IV and applicable from the date on which the employee or former employee reaches age 65, from the date of retirement or from the date of payment in the case of a pensioner, as the case may be. Retraite Québec shall also send the spouse a statement showing the sums awarded to him.

The spouse must, within 60 days of the date on which the statement is mailed to him, provide Retraite Québec with the name and address of the financial institution as well as the information identifying the annuity contract, locked-in retirement account, life income fund or, where applicable, registered retirement savings plan or registered retirement income fund into which the sums awarded to him must be transferred.

Except where the spouse has been paid otherwise, Retraite Québec shall, within 120 days of the expiry of the period provided for in the second paragraph, transfer the sums awarded to the spouse into an annuity contract, a locked-in retirement account, a life income fund or, where applicable, a registered retirement savings plan or registered retirement income fund at a financial institution chosen by the spouse, provided that the steps necessary for the transfer of those sums have been taken.

Should the spouse fail to indicate his choice or to take the necessary steps within the prescribed period, Retraite Québec shall transfer those sums into a locked-in retirement account or, where applicable, a registered retirement savings plan in the spouse’s name with the financial institution with which Retraite Québec entered into an agreement to that effect.

Where the spouse proceeds by way of compulsory execution, the judgment authorizing a seizure by garnishment shall take the place of an application for payment and this section shall apply.

O.C. 839-91, s. 13; T.B. 220172, s. 11.

14. Retraite Québec shall transfer the sums awarded to the spouse into an annuity contract, a locked-in retirement account or a life income fund where those sums come from an entitlement to a pension, to a deferred pension or to a pension credit.

Notwithstanding the foregoing, Retraite Québec shall transfer those sums into a registered retirement savings plan or registered retirement income fund where those sums come from an entitlement to a refund of contributions or, upon application by the spouse, into an annuity contract, a locked-in retirement account or a life income fund.

Notwithstanding the first and second paragraphs, the sums are paid to the successors in the event of the spouse’s death.

O.C. 839-91, s. 14; T.B. 220172, s. 12.

15. Interest compounded annually and accrued from the date of assessment to the date of payment must be added to the sums awarded to the spouse at the rate in Schedule III of the Act, in effect at the date of assessment. Where that date is prior to 1 June 2001, the applicable interest rate is 5.34%.

O.C. 839-91, s. 15; T.B. 210824, s. 2; T.B. 220172, s. 13.

DIVISION IV REDUCTION OF ACCRUED BENEFITS

(s. 130, par. 8.5)

16. If the amount paid to the spouse results from entitlement to a refund of contributions, a differed pension or a pension credit, the benefits of the employee or former employee are established in accordance with the Act and recalculated as follows:

(1)  where the employee or former employee is entitled to a contribution refund, to the payment of an actuarial value or to the transfer of an amount under a transfer agreement entered into pursuant to section 133 of the Act, the amount of the contributions refunded, of the payment of the actuarial value or of the transfer is reduced by the sums attributed to the spouse at the date of the valuation, with interest compounded annually at a rate which is determined for each period in accordance with Schedule II of the Act. The interest is accrued from the date of the valuation to the date on which the refund, payment or transfer is made. Furthermore, in the case of a pension credit, the calculation must be separate. However, no interest is calculated on the part of the sums resulting from years or parts of a year of service accrued under the pension fund for officers of education established by Part VIII of the Education Act (R.S.Q. 1964, c. 235), the Teachers Pension Plan or the Civil Service Superannuation Plan, if those years or parts of a year of service were transferred to the Pension Plan of Peace Officers in Correctional Services other than on an actuarially equivalent basis;

(2)  where the employee or former employee is entitled to a deferred pension, a pension or a pension credit, his pension or pension credit is reduced, from the date on which it becomes payable or is paid, as the case may be, by the amount of the pension or pension credit that would be obtained from the sums attributed to the spouse at the date of the valuation.

O.C. 839-91, s. 16; T.B. 220172, s. 14.

17. If the amount paid to the spouse derives from an entitlement to a pension, pension credit or any other benefit that would be paid at the date of the valuation, the pension or pension credit is reduced, from the date on which it is paid or the date on which it becomes payable in the case of an employee who is 65 years of age or over on the date of the valuation, by the amount of the pension or pension credit that would be obtained from the sums attributed to the spouse at the date of the valuation.

O.C. 839-91, s. 17; T.B. 220172, s. 14.

18. For the purposes of section 16, the deferred pension amount or pension credit amount that would be obtained on the basis of the sums awarded to the spouse at the date of assessment shall be established according to the actuarial method and assumptions provided for in section 8 and its value shall be determined, where applicable, in accordance with that section.

If the pensioner is under 65 years of age on the date on which the annual pension becomes payable or on the date of payment if the pension is being paid at that date, the deferred pension amount or pension credit amount obtained pursuant to the first paragraph shall be reduced by 0.50% per month, calculated for each month between the date on which that deferred pension amount or pension credit amount begins to apply and the date of his 65th birthday, without exceeding 90%.

If the pensioner is 65 years of age or over on the date on which the annual pension becomes payable or on the date of payment if the pension is being paid at that date, the deferred pension amount or pension credit amount obtained pursuant to the first paragraph shall be increased by 0.75% per month, calculated for each month between the date of his 65th birthday and the date on which that deferred pension amount or pension credit amount begins to apply.

O.C. 839-91, s. 18; T.B. 220172, s. 15.

19. For the purposes of section 17, the pension amount or pension credit amount payable at the date of assessment that would be obtained on the basis of the sums awarded to the spouse at that date shall be established according to the actuarial method and assumptions provided for in section 8 and its value shall be determined, where applicable, in accordance with that section.

If the pension amount or pension credit amount obtained pursuant to the first paragraph begins to apply prior to the date of the pensioner’s 65th birthday, it shall be increased by 0.50% per month, calculated for each month between the date of assessment and the date on which that pension amount or pension credit amount begins to apply.

If the pension amount or pension credit amount obtained pursuant to the first paragraph begins to apply on the date of the pensioner’s 65th birthday or after that date, and if the date of assessment occurs prior to that date, it shall be increased by 0.50% per month, calculated for each month between the date of assessment and the date of his 65th birthday and by 0.75% per month, calculated for each month between the latter date and the date on which that pension amount or pension credit amount begins to apply.

If the pension amount or pension credit amount obtained pursuant to the first paragraph begins to apply at the date of the pensioner’s 65th birthday or after that date, and if the date of assessment occurs after that date, it shall be increased by 0.75% per month, calculated for each month between the date of assessment and the date on which that pension amount or pension credit amount begins to apply.

O.C. 839-91, s. 19; T.B. 220172, s. 16.

20. Where a benefit is not being paid pursuant to the provisions relative to the return to work of a pensioner or to the provisions of Division V of Chapter VI of the Act, any amount of pension obtained pursuant to sections 18 and 19 shall be, proportionately to the part of any pension not being paid, indexed in the same manner as that part.

O.C. 839-91, s. 20.

21. Where a minimum pension applies in respect of a new spouse in accordance with section 102 of the Act, that pension shall be reduced, from the date on which it becomes payable, in the manner provided for in this Division as though it were the pension of the employee or former employee.

O.C. 839-91, s. 21.

22. Any refund of contributions to be issued as a result of a death must be reduced by the sums awarded to the spouse with interest compounded annually at a rate determined for each period under Schedule II of the Act and accrued from 1 July of the year of assessment to the first day of the month during which the refund is issued, except for the period during which a pension is paid. Notwithstanding the foregoing, no interest is calculated on the portion of those sums that come from years or part of a year of service relative to the pension fund for officers of education established by Part VIII of the Education Act (R.S.Q. 1964, c. 235), the Teachers Pension Plan or the Civil Service Superannuation Plan, if those years or parts of a year of service were transferred to this plan otherwise than on an actuarially equivalent basis.

O.C. 839-91, s. 22; T.B. 220172, s. 17.

DIVISION V TRANSITIONAL

T.B. 210824, s. 3.

22.1. For the purposes of sections 18 and 19, the amount of pension that would be obtained on the basis of the sums awarded to the spouse at the date of assessment is established at that date according to the actuarial method and assumptions that were used for the assessment of benefits accrued.

T.B. 210824, s. 3.

23. (Omitted).

O.C. 839-91, s. 23.

REFERENCES

O.C. 839-91, 1991 G.O. 2, 2109

T.B. 210824, 2011 G.O. 2, 3700

S.Q. 2015, c. 20, s. 61

T.B. 220172, 2018 G.O. 2, 5213

T.B. 226443, 2022 G.O. 2, 2424