7.In this section, “CIA Standards” refer to the standards of practice entitled “Practice-Specific Standards for Pension Plans -3800 Pension Commuted Values” of the Canadian Institute of Actuaries, in force since 1 February 2005 and periodically revised.
The actuarial value of the benefits is determined by using the “distribution of benefits” method and corresponds to the sum of 80% of the actuarial value determined for a male and of 20% 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: