60.8. For the purposes of this Division, fixed-income investments are:
(1) cash on hand;
(2) money market securities whose rating, attributed by a rating agency referred to in the third paragraph, is the one indicated with regard to that agency or a higher rating;
(3) bond market securities whose rating, attributed by a rating agency referred to in the third paragraph, is the one indicated with regard to that agency or a higher rating;
(4) first or second mortgages the amount of which is not more than 75% of the value of the property that is used as a security for the payment.
Up to 50% of the assets invested in infrastructure or in immovables (real estate) can be considered fixed-income investments. Investments in stock market securities are excluded.
The minimum ratings, by rating agency and type of investment, are as follows:
|Bond market securities||Money market securities|
|Dominion Bond Rating Service||BBB||R-2 (middle)|
|Moody's Investors Service||Baa3||P-3|
|Standard & Poor's||BBB-||A-3|
Money market or bond market securities whose rating attributed by another rating agency recognized by a competent authority is at least equal to the one indicated for the agencies mentioned in the third paragraph can also be considered as fixed-income investments.
Unquoted private debts if the plan’s investment manager certifies, on the date of each actuarial valuation, that the debts are of a quality at least equivalent to that of the investments to which a rating referred to in the third paragraph is attributed may also, for a portion not exceeding 10% of the assets of the plan allocated to investments, be considered as fixed-income investments.The report on the actuarial valuation of the plan must mention that the pension committee attests that the required certifications regarding those investments were obtained and it may file them with Retraite Québec on request.
O.C. 608-2016, s. 21; O.C. 1107-2019, s. 191.