R-10, r. 2 - Regulation under the Act respecting the Government and Public Employees Retirement Plan

Full text
12.1. The actuarial values of the benefits referred to in sections 43.2, 46.1, 53, 54 and 79 of the Act are determined, taking into account sections 12.2 to 12.2.3, using the following actuarial assumptions:
(1)  Mortality rates:
The mortality rates are those determined in accordance with the CIA Standard.
(2)  Interest rates:
For fully-indexed and non-indexed benefits:
The interest rates are those determined in accordance with the CIA Standard.
For partially-indexed benefits:
The interest rates are those 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 rounded to the nearest multiple of 0.25%.
(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 Standard;
(b)  for a benefit indexed according to the excess of the rate of increase in the pension index (PI) over 3% or to half of the rate of increase in the pension index, the indexing rate corresponds respectively to the excess of the indexing rate computed in the manner provided in subparagraph a over 3% or to half the indexing rate computed in the manner provided in that subparagraph.
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 Addition to Adjusted Addition to Adjusted
level the result of indexing the result of indexing
the PI-3% rate the 50% PI, rate
formula min. PI-3%
formula



0.5 0.1 0.1 0.05 0.3


1.0 0.1 0.1 0.10 0.6


1.5 0.3 0.3 0.15 0.9


2.0 0.5 0.5 0.20 1.2


2.5 0.7 0.7 0.15 1.4


3.0 1.0 1.0 0.20 1.7


3.5 0.8 1.3 0.25 2.0


4.0 0.6 1.6 0.30 2.3


4.5 0.5 2.0 0.45 2.7


5.0 0.4 2.4 0.50 3.0

(4)  Turnover rate: Nil
(5)  Disability rate: Nil
(6)  Proportion of married persons at death:
________________________________________

Age Male Female
________________________________________

18 - 64 years old 85% 65%
________________________________________

65 - 79 years old 80% 30%
________________________________________

80 - 109 years old 60% 10%
________________________________________

110 years old 0% 0%
________________________________________
(7)  Age difference between spouses at death:
— the male spouse of the member is assumed to be 1 year older;
— the female spouse of the member is assumed to be 4 years younger.
O.C. 884-91, s. 3; T.B. 203094, s. 2.