R-9.3, r. 2 - Regulation respecting the partition and assignment of benefits accrued under the Pension Plan of Elected Municipal Officers

Updated to 12 December 2023

This document has official status.

chapter R-9.3, r. 2

Regulation respecting the partition and assignment of benefits accrued under the Pension Plan of Elected Municipal Officers

Act respecting the Pension Plan of Elected Municipal Officers

(chapter R-9.3, s. 75).

DIVISION I STATEMENT OF BENEFITS OF THE COUNCIL MEMBER OR FORMER COUNCIL MEMBER

(s. 75, subpars. 4.1 and 4.2)

1. Any application for a statement referred to in section 63.1 of the Act respecting the Pension Plan of Elected Municipal Officers (chapter R-9.3) 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 council member or former council member and of his spouse;

(2)  in the case of married spouses, a 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. 1753-91, s. 1; O.C. 1188-95, s. 1; O.C. 1431-98, s. 1; O.C. 1420-2018, s. 1.

1.1. Any application for a statement referred to in section 63.1.1 of the Act must be signed by the council member or former council member 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 council member or former council member and of his spouse;

(2)  an attestation by the council member or former council member 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 council member or former council member and his spouse of the dates on which they began and ceased living together and, where applicable, proof that they were in a conjugal relationship. Furthermore, if the spouses lived in a conjugal relationship for at least 1 year but not more than 3 years preceding the date on which they ceased living together, they must also attest that a child was born or is to be born of their union and, where applicable, provide 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.

O.C. 1420-2018, s. 2.

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

(1)  the date on which the council member or former council member became a member of the Pension Plan of Elected Municipal Officers and, where applicable, the date on which he ceased to be a member thereof;

(2)  the benefits accrued to the council member or former council member, 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 63.2 of the Act, as well as the value of those benefits;

(3)  in the case of married spouses or spouses in a civil union, 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 the statement is presumed accurate.

O.C. 1753-91, s. 2; O.C. 1188-95, s. 2; O.C. 1420-2018, s. 3.

DIVISION II ESTABLISHMENT AND ASSESSMENT OF ACCRUED BENEFITS

(s. 75, subpar. 4.3)

§ 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 former council member has the option between a refund of contributions and a deferred pension and where that option has not been exercised at the date of assessment, the accrued benefits shall be those having the highest value;

(2)  where the Act prescribes that the council member would have the option between a refund of contributions and a deferred pension if he ceased to be covered by the plan and where that option has not been exercised at the date of assessment, the benefits shall be a refund of contributions or a deferred pension at the later of the following dates, whichever has the higher value:

(a)  the first day of the month following the date of the municipal election held following the date of assessment for that municipality, in accordance with sections 2 and 3 of the Act respecting elections and referendums in municipalities (chapter E-2.2);

(b)  the date of his 60th birthday;

(3)  where the Act prescribes that the council member would be entitled only to a deferred pension if he ceased to be covered by the plan, that pension is deemed to be payable on the later of the dates specified in subparagraph 2;

(4)  where a council member who is at least 60 years of age has accumulated at least 2 years of service, his benefits shall correspond to a deferred-payment pension at the date provided for in clause a of subparagraph 2.

The accrued benefits for 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 during that period, on the assumption that the council member or former council member 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 them, the accrued 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 at that date. For those purposes, the council member is deemed to have ceased to be a member of the plan at the date of assessment.

O.C. 1753-91, s. 3; O.C. 1420-2018, s. 4.

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

O.C. 1753-91, s. 4; O.C. 1420-2018, s. 5.

5. Where the number of years or parts of a year of service credited for the purposes of the plan under a transfer agreement entered into in accordance with section 63 of the Act is less than the number of years or parts of a year of service recognized under the initial pension plan, and where a fraction of that 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 under that agreement and included in the period of the marriage or civil union is 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 under that agreement;

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

“D” represents the number of years or parts of a year of service recognized under the initial pension 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 civil union is unknown to Retraite Québec, the number of years or parts of a year of service credited under that agreement 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 under that agreement;

“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. 1753-91, s. 5; O.C. 1420-2018, s. 6.

§ 2 . — Assessment of benefits

6. Where the accrued benefits consist in a refund of contributions, the value of those benefits corresponds to the contributions paid with interest calculated in accordance with the Act and accrued to the date of assessment as though the refund had been issued at that date. The same applies in respect of the value of the benefits accrued for the period of the marriage or the civil union.

O.C. 1753-91, s. 6; O.C. 1420-2018, s. 7.

7. In this section, “CIA Standard” refer 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 by using the “distribution of benefits” method and corresponds to the sum of 70% of the actuarial value determined for a male and of 30% of the actuarial value determined for a female.

The actuarial value is also determined by using the following actuarial assumptions:

(1)  mortality rates:

The mortality rates are those determined in accordance with the CIA Standards.

(2)  interest rates:

(a)  the interest rates for fully-indexed benefits or non-indexed benefits are those determined in accordance with 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 in accordance with the CIA Standards.

(3)  indexing rate:

(a)  for a fully-indexed benefit according to the rate of increase in the Pension Index, the indexing rate is computed in the manner described in the CIA standards;

(b)  for a benefit indexed according to the excess of the rate of increase in the Pension Index “PI” over 3%, the indexing rate corresponds to the excess of the indexing rate computed in the manner provided for in subparagraph a over 3%.

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

Inflation level	Addition to the result of the PI–3% formula	Adjusted indexing rate
0	0.00	0.00
0.5	0.00	0.00
1.0	0,00	0.00
1.5	0.05	0.05
2.0	0.10	0.10
2.5	0.20	0.20
3.0	0.40	0.40
3.5	0.20	0.70
4.0	0.10	1.10
4.5	0.05	1.55

(4)  turnover rate: Nil

(5)  disability rate: Nil

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

Age	Male	Female
18-54 years	90%	60%
55-59 years	85%	60%
60-64 years	85%	55%
65-69 years	80%	50%
70-74 years	80%	40%
75-79 years	80%	30%
80-84 years	75%	20%
85-89 years	60%	10%
90-109 years	50%	5%
110 years and over	0%	0%

(7)  age difference between spouses at death:

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

(b)  the female spouse of the member is assumed to be 4 years younger.

O.C. 1753-91, s. 7; O.C. 1071-2010, s. 1; O.C. 955-2022, s. 1.

8. Where the accrued benefits consist in a benefit being paid at the date of assessment or that would be paid if the former council member had filed an application to that effect, 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 civil union shall be established in accordance with the first paragraph.

O.C. 1753-91, s. 8; O.C. 1420-2018, s. 9.

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

(s. 75, subpars. 4.1 and 4.4)

9. 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 of that Regulation.

O.C. 1753-91, s. 9.

10. 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 council member or former council member 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. 1753-91, s. 10.

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

(1)  the judgement 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 council member or former council member 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 Elected Municipal Officers;

(3.1)  in the case of spouses referred to in the first paragraph of section 63.1.1 of the Act, the agreement between the spouses concerning partition of the benefits accrued by the council member or former council member under the Pension Plan of Elected Municipal Officers, 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. 1753-91, s. 11; O.C. 1420-2018, s. 10.

12. Upon receipt of a duly completed application for payment, Retraite Québec shall send the council member or former council member a statement showing the sums awarded to the spouse as well as the amount of the reduction calculated pursuant to Division IV. 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 and with an identification of 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 with 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 forced execution, the judgment authorizing seizure in the hands of a third person shall take the place of an application for payment and this section shall apply.

O.C. 1753-91, s. 12; O.C. 1188-95, s. 3; I.N. 2016-01-01 (NCCP).

13. 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 or deferred pension.

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

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

O.C. 1753-91, s. 13; O.C. 1188-95, s. 4.

14. Interest compounded annually and accrued from the date of assessment up to the date of payment must be added to the sums awarded to the spouse at the rate provided for in section 1.1 of the Regulation respecting the application of the Act respecting the Pension Plan of Elected Municipal Officers (chapter R-9.3, r. 1), in force on the date of assessment. However, where that date is prior to 1 June 2007, the applicable interest rate is 4.10%.

O.C. 1753-91, s. 14; O.C. 1071-2010, s. 2.

DIVISION IV REDUCTION OF ACCRUED BENEFITS

(s. 75, subpar. 4.5)

15. If the amount paid to the spouse comes from an entitlement to a refund of contributions or to a deferred pension, the benefits of the council member or former council member shall be established in accordance with the Act and shall be recalculated as follows:

(1)  where the council member or former council member is entitled to a refund of contributions or is entitled to transfer an amount under a transfer agreement concluded in accordance with section 63 of the Act, the amount of his refund or the amount to be transferred shall be reduced by the sums awarded to the spouse at the date of assessment with interest compounded annually at the rate determined for each period under the Regulation respecting the application of the Act respecting the Pension Plan of Elected Municipal Officers (chapter R-9.3, r. 1) and accrued from the date of assessment to the date on which the refund or transfer is made;

(2)  where the council member or former council member is entitled to a deferred pension or to a pension, his pension shall be reduced, from the date on which it becomes payable or from the date of payment, as the case may be, by the amount of deferred pension that would be obtained on the basis of the sums awarded to the spouse at the date of assessment.

O.C. 1753-91, s. 15; O.C. 1188-95, s. 5.

16. If the amount paid to the spouse comes from an entitlement to a pension payable on the date determined in accordance with clause a of subparagraph 2 of the first paragraph of section 3, the pension of the council member or former council member shall be reduced, from the date on which it becomes payable or from the date of payment where the pension is being paid at that date, by the amount of pension that would be obtained on the basis of the sums awarded to the spouse at the date of assessment.

O.C. 1753-91, s. 16; O.C. 1188-95, s. 6.

17. If the amount paid to the spouse comes from an entitlement to a pension that is being paid at the date of assessment or that would be if the former council member had filed an application to that effect, that pension shall be reduced, from the date of payment, by the amount of pension that would be obtained on the basis of the sums awarded to the spouse at that date.

O.C. 1753-91, s. 17; O.C. 1188-95, s. 7.

18. For the purposes of section 15, the amount of pension that would be obtained on the basis of the sums awarded to the spouse at the date of assessment shall be established at that date according to the actuarial method and assumptions provided for in section 7. That amount is presumed applicable at the date of the council member’s or former council member’s 60th birthday.

The amount of pension obtained pursuant to the first paragraph shall, at the time prescribed under section 119 of the Act respecting the Québec Pension Plan (chapter R-9), be indexed in accordance with the rate of increase in the Pension Index within the meaning of that Act, from 1 January following the date of assessment to 1 January of the year during which that amount begins to apply.

If the pensioner is under age 60 either 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 amount of pension obtained pursuant to the first and second paragraphs shall be reduced by 0.33% per month, calculated for each month between the date on which that amount of pension begins to apply and the date of the pensioner’s 60th birthday, without exceeding 65%.

If the pensioner retired before the date of payment and if that date occurs after the date of his 60th birthday, the amount of pension obtained pursuant to the first and second paragraphs shall be increased by 0.50% per month, calculated for each month between the date of his 60th birthday and the date on which that amount of pension begins to apply, if the pensioner retired before the date of his 60th birthday, or for each month between the date on which he retired and the date on which that amount of pension begins to apply, if the pensioner retired on the date of his 60th birthday or thereafter.

O.C. 1753-91, s. 18; O.C. 1188-95, s. 8.

19. For the purposes of section 16, the amount of pension that would be obtained on the basis of the sums awarded to the spouse at the date of assessment shall be established at that date according to the actuarial method and assumptions provided for in section 7. That amount is presumed applicable at the date determined in accordance with subparagraph a of paragraph 2 of section 3.

The amount of pension obtained pursuant to the first paragraph shall, at the time prescribed under section 119 of the Act respecting the Québec Pension Plan (chapter R-9), be indexed in accordance with the rate of increase in the Pension Index within the meaning of that Act, from 1 January following the date of assessment to 1 January of the year during which that amount begins to apply.

If the amount of pension obtained pursuant to the first and second paragraphs begins to apply before the date thus determined, that amount of pension shall be reduced by 0.33% per month, calculated for each month between the date on which it begins to apply and the date thus determined, without exceeding 65%.

If the pensioner retired before the date of payment and if that date occurs after the date determined, the amount of pension obtained pursuant to the first and second paragraphs shall be increased by 0.50% per month, calculated for each month between the date thus determined and the date on which that amount of pension or begins to apply, if the pensioner retired before the date thus determined, or for each month between the date on which he retired and the date on which that amount of pension begins to apply, if the pensioner retired on the date thus determined or thereafter.

O.C. 1753-91, s. 19; O.C. 1188-95, s. 8.

20. For the purposes of section 17, the amount of pension that would be obtained on the basis of the sums awarded to the spouse at the date of assessment shall be established at that date according to the actuarial method and assumptions provided for in section 7. That amount is presumed applicable at the date of assessment.

The amount of pension obtained pursuant to the first paragraph shall be indexed in the same manner as the pension or in the same manner as though it were being paid at the date of assessment, from 1 January following that date to 1 January of the year during which that amount of begins to apply.

The amount of pension obtained pursuant to the first and second paragraphs shall be increased by 0.50% per month, calculated for each month between the date of assessment and the date on which that amount of pension begins to apply, if the pension was being paid on the date of assessment or would have been if the former council member had made an application to that effect.

O.C. 1753-91, s. 20; O.C. 1188-95, s. 8.

21. Where a pension reduced in accordance with this Division is not paid pursuant to section 39 of the Act and where the pensioner is entitled to receive a pension recalculated pursuant to section 40 of the Act, that recalculated pension shall be reduced, from the date on which it becomes payable, by the amount of pension that was used to reduce the pension. That amount of pension shall be indexed according to the rate of increase in the Pension Index determined under the Act respecting the Québec Pension Plan (chapter R-9) over 3%, from 1 January following the date on which that amount began to apply to 1 January of the year during which the recalculated pension becomes payable.

O.C. 1753-91, s. 21; O.C. 1188-95, s. 8.

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 the Regulation respecting the application of the Act respecting the Pension Plan of Elected Municipal Officers (chapter R-9.3, r. 1) and accrued from the date of assessment to the date on which the refund is issued, except for the period during which a pension is paid.

O.C. 1753-91, s. 22; O.C. 1188-95, s. 9.

DIVISION V TRANSITIONAL

O.C. 1071-2010, s. 3.

22.1. For the purposes of sections 18, 19 and 20, the amount of pension that would be obtained on the basis of the sums awarded to the spouse at the date of assessment is determined at that date according to the actuarial method and assumptions that were used for the assessment of accrued benefits.

O.C. 1071-2010, s. 3.

23. (Omitted).

O.C. 1753-91, s. 23.

REFERENCES

O.C. 1753-91, 1992 G.O. 2, 7

O.C. 1188-95, 1995 G.O. 2, 2811

O.C. 1431-98, 1998 G.O. 2, 4783

O.C. 1071-2010, 2010 G.O. 2, 3844A

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

O.C. 1420-2018, 2018 G.O. 2, 5333

O.C. 955-2022, 2022 G.O. 2, 1888