12.5. For the purposes of sections 12.3 and 12.4:
(1) the amount of the pension credit on the date of retirement including the increase referred to in sections 89 and 107.1 of the Act and takes into account any applicable actuarial reduction or the increase provided for in section 93 of the Act;
(2) the amount of the paid-up annuity certificate indicated on the statement of benefits taking into account, if applicable, an actuarial reduction of 0.5% per month calculated for each month included between the date of retirement and the employee’s sixty-fifth birthday;
(3) the value of the pension credit attributed to the amounts corresponding to the years or parts of years recognized for purposes of eligibility and transferred into a locked-in retirement account (LIRA) calculated as follows:
(balance of the LIRA on the date of designation of the employer in Schedule I to the Act × (5))
(value of a $10 annual pension credit payable monthly as of age 65 according to Table II of Schedule IV.3 and taking into account the age of the employee on the date of designation of the employer in Schedule I to the Act.)
The value attributed to the pension credit shall include the rate of any increase referred to in section 89 of the Act, between the date of designation of the employer in Schedule I and the date of retirement and taking into account, if applicable, an actuarial reduction of 0.5% per month calculated for each month between the date of retirement and the person’s sixty-fifty birthday;
F represents 1 less the percentage of the actuarial reduction applicable to the pension of the employee;
MGA represents the average Maximum Pensionable Earnings within the meaning of the Act respecting the Québec Pension Plan (chapter R-9);
N represents the number of years or parts of years referred to in paragraphs 1 to 3 of section 73.1 of the Act;
NL represents the minimum between N and the number resulting from 38 plus the number of the employee’s years of service used to calculate the pension and served after 31 December 2016, without exceeding 40, less the number of years of service credited to the plan;
(1) for a pension credit pertaining to a year prior to 1992, the average pensionable salary established in accordance with subdivision 2.1 of Division I of Chapter IV of Title I of the Act on the basis of annualized pensionable salaries that do not take into account the limit provided for in the first paragraph of section 18.1 of the Act;
(2) for a pension credit pertaining to a year after 1991, the average pensionable salary established in accordance with that subdivision 2.1 of the Act on the basis of annualized pensionable salaries that take into account the limit provided for in the first paragraph of section 18.1 of the Act.
In respect of an employee who ceases to participate in the plan before 1 January 2010, TM has the meaning assigned by this section, as it reads on the date on which the employee ceases to participate.