R-12.1 - Act respecting the Pension Plan of Management Personnel

Section 196.27 Disposition versions

2018-01-01

196.27. Despite section 177.1, for the years 2018 to 2022 inclusively, Retraite Québec must establish, not later than 31 December of the year that follows each of those years, an annual compensatory amount. For the years 2018 and 2019, that amount corresponds to three times the difference between the sum of the contributions required to finance the benefits accrued annually and the plan administration costs, according to the contribution rate established with an exemption of 35% of the Maximum Pensionable Earnings within the meaning of the Act respecting the Québec Pension Plan (chapter R-9), as shown by the amended actuarial valuation prepared under the first paragraph of section 35 of the Act to foster the financial health and sustainability of the Pension Plan of Management Personnel and to amend various legislative provisions (2017, chapter 7), for the year concerned, and the sum of the contributions that would have been paid into the employees’ contribution fund referred to in section 176 if the contribution rate resulting from that actuarial valuation, established with the same exemption, had applied for the year concerned. The same applies for the years 2020 to 2022 inclusively, with the exception that the annual compensatory amount is to be established on the basis of the most recent actuarial valuation prepared under the first paragraph of section 171.

In addition, for the years 2018 to 2022 inclusively, Retraite Québec must estimate, not later than 31 December of the year that follows each of those years, a minimum annual compensatory amount. That amount corresponds to the sum of the losses assumed by the employees’ contribution fund due to the transfer of employees who were members of the Government and Public Employees Retirement Plan to this plan during the year concerned.

The annual compensatory amount to be paid into the employees’ contribution fund, for each of the years concerned, is the highest of the amounts respectively determined under the first and second paragraphs of this section but it may not, in any case, exceed 100 million dollars. The annual compensatory amount is apportioned among the employers proportionately to the ratio of the sum of the employee contributions paid by an employer to Retraite Québec for a year concerned to the sum of the employee contributions paid by all employers for the same year.

Within 30 days after the date on which Retraite Québec determines the annual compensatory amount to be paid, it must transfer, from the employers’ contributory fund referred to in section 176 to the employees’ contribution fund, the part of the amount that is attributable to the employers listed in Schedule IV. If the employers’ contributory fund is exhausted, the sums necessary for the transfer must be taken first out of the funds capitalized under section 48 and thereafter out of the Consolidated Revenue Fund.

Within 60 days after the date on which Retraite Québec determines the annual compensatory amount to be paid, it must send each employer not listed in Schedule IV a statement of account showing the compensatory amount attributable to the employer. Section 43 of the Regulation under the Act respecting the Government and Public Employees Retirement Plan (chapter R-10, r. 2) applies, with the necessary modifications. Any amount received from such an employer must be deposited in the employees’ contribution fund.

2017, c. 7, s. 20.

Not in force

In force: 2018-01-01

196.27. Despite section 177.1, for the years 2018 to 2022 inclusively, Retraite Québec must establish, not later than 31 December of the year that follows each of those years, an annual compensatory amount. For the years 2018 and 2019, that amount corresponds to three times the difference between the sum of the contributions required to finance the benefits accrued annually and the plan administration costs, according to the contribution rate established with an exemption of 35% of the Maximum Pensionable Earnings within the meaning of the Act respecting the Québec Pension Plan (chapter R-9), as shown by the amended actuarial valuation prepared under the first paragraph of section 35 of the Act to foster the financial health and sustainability of the Pension Plan of Management Personnel and to amend various legislative provisions (2017, chapter 7), for the year concerned, and the sum of the contributions that would have been paid into the employees’ contribution fund referred to in section 176 if the contribution rate resulting from that actuarial valuation, established with the same exemption, had applied for the year concerned. The same applies for the years 2020 to 2022 inclusively, with the exception that the annual compensatory amount is to be established on the basis of the most recent actuarial valuation prepared under the first paragraph of section 171.

In addition, for the years 2018 to 2022 inclusively, Retraite Québec must estimate, not later than 31 December of the year that follows each of those years, a minimum annual compensatory amount. That amount corresponds to the sum of the losses assumed by the employees’ contribution fund due to the transfer of employees who were members of the Government and Public Employees Retirement Plan to this plan during the year concerned.

The annual compensatory amount to be paid into the employees’ contribution fund, for each of the years concerned, is the highest of the amounts respectively determined under the first and second paragraphs of this section but it may not, in any case, exceed 100 million dollars. The annual compensatory amount is apportioned among the employers proportionately to the ratio of the sum of the employee contributions paid by an employer to Retraite Québec for a year concerned to the sum of the employee contributions paid by all employers for the same year.

Within 30 days after the date on which Retraite Québec determines the annual compensatory amount to be paid, it must transfer, from the employers’ contributory fund referred to in section 176 to the employees’ contribution fund, the part of the amount that is attributable to the employers listed in Schedule IV. If the employers’ contributory fund is exhausted, the sums necessary for the transfer must be taken first out of the funds capitalized under section 48 and thereafter out of the Consolidated Revenue Fund.

Within 60 days after the date on which Retraite Québec determines the annual compensatory amount to be paid, it must send each employer not listed in Schedule IV a statement of account showing the compensatory amount attributable to the employer. Section 43 of the Regulation under the Act respecting the Government and Public Employees Retirement Plan (chapter R-10, r. 2) applies, with the necessary modifications. Any amount received from such an employer must be deposited in the employees’ contribution fund.

2017, c. 7, s. 20.