77.0.1.The part of the pension attributable to service subsequent to 30 June 1982 but prior to 1 January 2000, paid out of the employees’ contribution fund, is indexed on 1 January following the receipt by the Minister of the report of the independent actuary or of the actuarial valuation update referred to in the first paragraph of section 174 by one half of the rate of increase in the Pension Index determined in the Act respecting the Québec Pension Plan (chapter R-9) instead of being indexed in accordance with section 77 if
(1) the rate thus obtained is more advantageous;
(2) the actuarial valuation, the validity of whose assumptions has been confirmed by an independent actuary, or the actuarial valuation update shows a surplus that exceeds 20% of the actuarial value of the benefits payable out of the employees’ contribution fund; and
(3) the part of the surplus that exceeds that 20% allows the financing of the additional cost of the indexation.
For the purposes of the first paragraph,
(1) “surplus” means any amount by which the actuarial value of the members’ fund, within the meaning of the actuarial valuation, exceeds the actuarial value of the benefits accrued on the date of the valuation and payable out of the fund, as determined by that actuarial valuation or the update, as the case may be;
(2) “additional cost” means the value, established on 31 December of the year preceding the year during which the indexation applies, which corresponds to the difference between the actuarial value of the part of the pension referred to in the first paragraph that would be payable if it were indexed in accordance with the first paragraph and its actuarial value if it were indexed in accordance with subparagraph 2 of the first paragraph of section 77.