R-12.1, r. 1 - Regulation under the Act respecting the Pension Plan of Management Personnel

Updated to 1 October 2024

This document has official status.

chapter R-12.1, r. 1

Regulation under the Act respecting the Pension Plan of Management Personnel

Act respecting the Pension Plan of Management Personnel

(chapter R-12.1, s. 196).

DIVISION 0.1 PERSONS EXCLUDED FROM THE PLAN

(s. 196, 1st par., subpar. 1)

T.B. 209327, s. 1.

0.1. The classes of employees, the conditions of employment and the remuneration or mode of remuneration by reason of which a person is excluded from the plan are

(1)  a person paid in fees or paid by the act;

(2)  a person hired to perform duties as a student or a coopérant;

(3)  a person hired to perform duties directly related to his or her training program in a college as student employee;

(4)  a person hired under contract as an independent worker under the terms of whose contract no deduction at source is made;

(5)  a resident physician;

(6)  a person hired to perform duties as a trainee, that is a person who, under the guidance of a college, university or professional order, is required to complete a training period or clinic to obtain his or her final degree, except a person belonging to an employment group that provides for a class of trainees;

(7)  a postdoctoral trainee who works in a research centre within the meaning of section 22.2 of the Act; and

(8)  a retired presiding justice of the peace who returns to work to exercise judicial functions.

T.B. 209327, s. 1; T.B. 212725, s. 1.

DIVISION I PERSON TEMPORARILY HOLDING NON-UNIONIZABLE EMPLOYMENT, WITH THE CORRESPONDING CLASSIFICATION

(s. 196, 1st par., subpar. 2.1)

1. For the purposes of subparagraph 8 of the first paragraph of section 3 of the Act, a person temporarily holds non-unionizable employment with the corresponding classification when holding the employment

(1)  to fill a vacant position temporarily or on an interim basis, unless the person simultaneously holds an employment under the plan;

(2)  to lighten a heavy workload, or as a non-permanent or seasonal employee;

(3)  to perform work of a casual or cyclical nature, or to carry out a specific mandate having a fixed term;

(4)  to replace an employee contemplated by the Pension Plan for Management Personnel, during that employee’s absence, unless the person simultaneously holds an employment under the plan; or

(5)  for a fixed term, following an elective term in a labour organization, namely a union, a federation, a central union or an association representing unionizable employees within the meaning of the Act respecting Government and Public Employees Retirement Plan (chapter R-10).

T.B. 202420, s. 1; T.B. 224484, s. 1.

DIVISION I.1 CLASSES OF EMPLOYEES FOR WHOM THE BASIS OF REMUNERATION IS 200 DAYS

(s.196, 1st par., subpar. 2.2)

T.B. 208549, s. 1.

1.1. The classes of employees who hold pensionable employment for which the basis of remuneration is 200 days are

(1)  teachers employed by a school service centre within the meaning of the Education Act (chapter I-13.3) whose employment is to teach students under that Act;

(2)  teachers employed by a school board within the meaning of the Education Act for Cree, Inuit and Naskapi Native Persons (chapter I-14) whose employment is to teach students under that Act; and

(3)  a teacher employed by a private institution accredited for the purposes of subsidies under the Act respecting private education (chapter E-9.1) whose contract of employment ends on 30 June and whose employment is to teach students as part of the educational services dispensed at preschool, elementary school or secondary school, belonging to one of the categories referred to in paragraphs 1 to 4 of section 1 of that Act and subject, under section 25 of that Act, to the basic school regulation prescribed under the Education Act.

T.B. 208549, s. 1; O.C. 816-2021, s. 90.

DIVISION I.2 ABSENCE WITHOUT PAY

(s. 196, 1st par., subpar. 2.3)

T.B. 219771, s. 1.

1.2. An absence without pay is

(1)  an absence of the employee owing to a strike or a lock-out;

(2)  an absence of the employee owing to a disciplinary suspension and for which the employee receives no pay;

(3)  an absence within 36 months after the date of a person’s dismissal owing to disability;

(4)  an absence within 24 months after the date of a person’s dismissal owing to a cause other than disability; and

(5)  an absence after the date of dismissal of the person concerned, to the extent that it is agreed that the absence must be considered to be an absence without pay in an agreement entered into after 6 May 2016 and before 17 July 2018.

For the purposes of subparagraphs 3 and 4 of the first paragraph, the absence must be agreed to in an agreement entered into after 16 July 2018 terminating the dismissal complaint. In addition, the absence must not be later than the earliest date on which the person would be entitled to a pension if the person ceased to participate in the plan on that date.

A person on a leave of absence described in subparagraph 3, 4 or 5 of the first paragraph is considered to be an employee.

T.B. 219771, s. 1.

DIVISION II BASIC SALARY AND PENSIONABLE SALARY

(s. 196, 1st par., subpars. 4 and 4.1)

2. The basic salary includes

(1)  any lump sum paid to an employee as part of the measures designed to protect the employee’s salary following reassignment, career reorientation, demotion or other similar event, to compensate for a decrease in the employee’s previous basic salary;

(2)  any lump sum paid to an employee as part of the measures designed to guarantee the employee a percentage increase in the employee’s basic salary during periodic salary reviews;

(3)  any additional remuneration paid to an employee who is a member of the Ordre des infirmières et infirmiers du Québec having already reached the maximum of the salary scale, following recognized postschool training in nursing care in accordance with the provisions of the collective labour agreement applying to the employee;

(3.1)  any additional remuneration paid to an employee whose job title requires a diploma of college studies (DEC) and is classified in the technicians group (code 2000) appearing in the document entitled Nomenclature des titres d’emploi, des libellés, des taux et des échelles de salaire du réseau de la santé et des services sociaux tabled on 15 December 2005 in the National Assembly by the Minister of Health and Social Services as Sessional Document 2575-20051215, having already reached the maximum of the salary scale, following required and recognized post-school training in accordance with the provisions of the collective labour agreement applying to the employee;

(4)  the lump sum paid to an employee, under an agreement concerning the extension of the collective labour agreements ending on 30 June 2002 or under conditions of employment arising from the agreements or established on the basis of the same parameters, that corresponds to a percentage of the basic salary of the employee.

T.B. 202420, s. 2; T.B. 204929, s. 1.

3. For the purposes of the first paragraph of section 28.1 of the Act, in the case where an application for redemption of a period of absence without pay in respect of a year or part of a year of service after 1992 but before 2008 is received at the Commission more than 6 months after the end of the period of absence, the pensionable salary of the employee corresponds to the annual basic salary to which the employee would have been entitled under the conditions of employment applicable on the last day the employee is a member of the plan for that year, according to the number of days and parts of a day to be redeemed out of the pensionable days, according to the basis of remuneration applicable.

T.B. 202420, s. 3; T.B. 207217, s. 1.

DIVISION III REDEMPTION OF A YEAR OF SERVICE

(s. 196, 1st par., subpar. 5.1)

4. For the purposes of the second paragraph of sections 39, 146, 152.1, 152.4, the third paragraph of section 152.6 and the second paragraph of section 152.8.1 of the Act, the amount required of the employee to pay the cost of redemption is established in accordance with the tariff in Schedule I.

Despite the first paragraph, the amount required from the person to pay the cost of the redemption referred to in section 152.8.1 of the Act for a year or part of a year of service completed in the 3 years prior to the date of receipt of the application for redemption is established on the basis of the percentage necessary for the amount to equal the sum of the contributions that would have been withheld if the person concerned had benefitted from the conditions of employment that should have applied during that period.

T.B. 202420, s. 4; T.B. 209327, s. 2; T.B. 210259, s. 1; T.B. 216000, s. 1; T.B. 219771, s. 2.

5. In the case where the employee is not receiving a salary on the date Retraite Québec receives the application for redemption referred to in the second paragraph of section 39 of the Act, the tariff applies to the annual pensionable salary that would have been paid to the employee on that date under the conditions of employment that would have applied if the employee had continued to hold, up to that date, the employment held on the last day of service credited.

If that employment no longer exists with the employer, the tariff applies to the annual pensionable salary the employee was receiving on the last day of service credited, increased by the percentage increase of the salary scale provided for in the conditions of employment applicable to class 4 public service management personnel positions between that last day and the day the application for redemption is received at Retraite Québec.

T.B. 202420, s. 5.

6. Section 5 applies, with the necessary modifications, to establish the pensionable salary of the employee to whom any of the situations referred to in the third paragraph of section 146, section 152.1, section 152.4 and the fourth paragraph of section 152.6 of the Act applies.

T.B. 202420, s. 6; T.B. 209327, s. 3; T.B. 210259, s. 2; T.B. 216000, s. 2.

6.0.0.1. For the purposes of the second paragraph of section 152.8.1 of the Act, the pensionable salary of a person who is not participating in the plan on the date Retraite Québec receives the application for redemption is the annual pensionable salary that would have been paid on that date if the person had benefitted from the conditions of employment that should have applied during that period or, if that date is one on which the person was an employee entitled to salary insurance benefits or an employee on maternity leave, the annual pensionable salary that the person would have been entitled to, had it not been for that absence or leave, if the person had benefitted from such conditions of employment.

In the case where the person, under the conditions of employment that should have been applicable during that period, would not have received salary on the date Retraite Québec received the person’s application for redemption, the tariff applies to the annual pensionable salary that would have been paid on that date if the person had continued to hold, up to that date, the employment held on the last day worked.

If that employment no longer exists with the employer, the tariff applies to the annual pensionable salary that would have been received if the person had benefitted from the conditions of employment that should have applied on the last day worked, increased by the percentage increase in the salary scale provided for in the conditions of employment applicable to class 4 public service management personnel positions between the last day and the day the person’s application for redemption is received at Retraite Québec.

T.B. 219771, s. 3.

DIVISION III.0.1 COMPUTATION OF PENSION

(s. 196, 1st par., subpars. 6, 6.1, 6.2 and 6.3)

T.B. 208549, s. 2.

6.0.1. The days and parts of days credited under sections 111, 125 and 126 of the Act, as well as the days and parts of days of absence without pay not credited are not part of the contributory days included in the contributory period.

T.B. 208549, s. 2.

6.0.2. The contributory period of an employee who simultaneously holds, for the first time during a year, more than one employment under the plan is established, for the part of the year where more than one employment is simultaneously held, by retaining a reference employment from among the employments simultaneously held. The reference employment is the employment held by the employee on the day before the day on which more than one employment begin to be held simultaneously or, if none of those employments is held on that preceding day, the employment with the highest annual basic salary.

For each subsequent year, the reference employment retained to establish the contributory period remains the same as long as the employee continues to hold that employment.

The annual basic salary considered is the salary paid or that would have been paid to the employee according to the employment conditions applicable to the employee on the last credited day of the year.

T.B. 208549, s. 2.

6.0.3. Where, in a year, an employee ceases to hold the reference employment retained pursuant to section 6.0.2 and, before the end of that year, the employee simultaneously holds again more than one employment under the plan, that employee’s contributory period is established, for the part of the year where more than one employment is simultaneously held, by retaining as new reference employment from among the employments then held the employment held on the day before the day on which more than one employment begin to be held simultaneously or, if none of those employments is held on that preceding day, the employment with the highest annual basic salary.

Where, in a year, an employee ceases to hold the reference employment retained pursuant to section 6.0.2 and continues to simultaneously hold more than one employment under the plan, that employee’s contributory period is established, for the part of the year that begins on the first day following the day on which the employee ceases to hold the reference employment, by retaining as new reference employment from among the employments held on that first day the employment with the highest annual basic salary.

T.B. 208549, s. 2.

6.0.4. The daily factor used to compute the annualized pensionable salary of an employee who holds employment under the plan for which the basis of remuneration is 260 days is 260.9.

However, that factor is 260 if the employee is

(1)  a teacher employed by a private institution accredited for the purposes of subsidies under the Act respecting private education (chapter E-9.1) whose employment is to teach students as part of the educational services dispensed at preschool, elementary school or secondary school, belonging to one of the categories referred to in paragraphs 1 to 4 of section 1 of that Act and subject, under section 25 of that Act, to the basic school regulation prescribed under the Education Act (chapter I-13.3);

(2)  a teacher employed by a private educational institution within the meaning of the Act respecting private education or employed by a college established by the General and Vocational Colleges Act (chapter C-29) who teaches general or vocational education at the college level;

(3)  a teacher referred to in paragraph 1 or 2 of this paragraph who is, under the plan, released without pay for union activities; or

(4)  a teacher employed by the Collège Marie de France, the Collège Stanislas or The Priory School inc. and whose employment is to teach students.

T.B. 208549, s. 2.

6.0.5. The annual basic salary of an employee who holds pensionable employment for which the basis of remuneration is 200 days and who is paid according to an hourly rate is established by multiplying that rate by the maximum number of hours that may be paid in a year. That number is

(0.1)  720, in the case of a teacher in vocational training;

(1)  800, in the case of a teacher in adult education or a teacher hired by the lesson at the secondary level;

(2)  920, in the case of a teacher hired by the lesson at the preschool or elementary level;

(3)  1,000, in the case of a casual supply teacher.

T.B. 208549, s. 2; T.B. 216998, s. 1.

DIVISION III.1 ACTUARIAL VALUE

(s. 196, 1st par., subpars. 7 and 7.1)

T.B. 203095, s. 1.

6.1. For the purposes of this Division, the expression “CIA Standard” refers to section 3500 of the Standards of Practice of the Canadian Institute of Actuaries concerning pension commuted values in force on 1 February 2022.

T.B. 203095, s. 1; T.B. 226431, s. 1; I.N. 2024-05-27.

6.2. The actuarial values of the benefits referred to in sections 64, 68, 75, 76 and 117 of the Act are determined, taking into account sections 6.3 to 6.6, using the following actuarial assumptions:

(1)  Mortality rates:

The mortality rates are those taken from the mortality table promulgated by the Actuarial Standards Board of the Canadian Institute of Actuaries, whose date of coming into force is 1 October 2015.

(2)  Interest rates:

The interest rates are those determined in accordance with the CIA Standard. The result must be rounded to the nearest multiple of 0.10%.

(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 Standard;

(b)  for a benefit indexed according to the excess of the rate of increase in the pension index (PI) over 3% or to half of the rate of increase in the pension index, the indexing rate corresponds respectively to the excess of the indexing rate computed in the manner provided in subparagraph a over 3% or to half the indexing rate computed in the manner provided in that subparagraph.

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.

Inflation level	Addition to the result of the PI-3% formula	Adjusted indexing rate	Addition to the result of the 50% PI, min. PI-3% formula	Adjusted indexing rate
0	0.00	0.00	0.20	0.20
0.5	0.00	0.00	0.10	0.35
1.0	0.00	0.00	0.05	0.55
1.5	0.05	0.05	0.00	0.75
2.0	0.10	0.10	0.00	1.00
2.5	0.20	0.20	0.00	1.25
3.0	0.40	0.40	0.00	1.50
3.5	0.20	0.70	0.00	1.75
4.0	0.10	1.10	0.00	2.00
4.5	0.05	1.55	0.00	2.25

The result must be rounded to the nearest multiple of 0.10%.

(4)  Turnover rate: Nil

(5)  Disability rate: Nil

(6)  Proportion of persons with a spouse at death:

Age	Male	Female
18-59 years old	80%	60%
60-64 years old	80%	55%
65-69 years old	75%	50%
70-74 years old	75%	40%
75-79 years old	70%	30%
80-84 years old	65%	20%
85-89 years old	55%	10%
90-109 years old	40%	5%
110 years old and older	0%	0%

(7)  Age difference between spouses at death:

— the male spouse of the member is assumed to be 1 year older;

— the female spouse of the member is assumed to be 4 years younger.

T.B. 203095, s. 1; T.B. 226431, s. 2; I.N. 2024-05-27.

6.3. The actuarial value of the pension referred to in section 64 of the Act is determined using the “benefit allocation” actuarial method.

For the Pension Plan of Management Personnel, the actuarial value corresponds to the sum of 40% of the actuarial value determined for a male and 60% of the actuarial value determined for a female.

For the Special provisions in respect of classes of employees designated under section 23 of the Act respecting the Pension Plan of Management Personnel (chapter R-12.1, r. 2), the actuarial value corresponds to the sum of 50% of the actuarial value determined for a male and 50% of the actuarial value determined for a female.

The economic assumptions are established based on the rates and returns of bond indexes, as described in the CIA Standard, applicable to the second calendar month preceding the month in which the valuation took place, rather than those applicable to the preceding month.

T.B. 203095, s. 1; T.B. 226431, s. 3; I.N. 2024-05-27.

6.4. The actuarial value of the deferred pension referred to in section 68 or 76 of the Act is determined using the following actuarial method and assumptions:

Actuarial method

The actuarial method is the “benefit allocation” method.

For the Pension Plan of Management Personnel, the actuarial value corresponds to the sum of 40% of the actuarial value determined for a male and 60% of the actuarial value determined for a female.

For the Special provisions in respect of classes of employees designated under section 23 of the Act respecting the Pension Plan of Management Personnel (chapter R-12.1, r. 2), the actuarial value corresponds to the sum of 50% of the actuarial value determined for a male and 50% of the actuarial value determined for a female.

Actuarial assumptions

For the purposes of section 68, the actuarial assumptions apply taking into account the rules of paragraph 3530.06 of subsection 3530 of the CIA Standard.

For the purposes of section 68 or 76, the economic assumptions are established based on the rates and returns of bond indexes, as described in the CIA Standard, applicable to the fourth calendar month preceding the month in which the valuation took place, rather than those applicable to the preceding month.

T.B. 203095, s. 1; T.B. 226431, s. 3; I.N. 2024-05-27.

6.5. For the purposes of section 75 of the Act, the annual value of the initial pension paid to the employee is adjusted by multiplying it by the percentage obtained by dividing the value “A” by the value “B”, where

“A” corresponds to the actuarial value at the employee’s retirement age; and

“B” corresponds to the actuarial value at age 65.

The actuarial value is determined using the “benefit allocation” actuarial method.

For the Pension Plan of Management Personnel, the actuarial value corresponds to the sum of 40% of the actuarial value determined for a male and 60% of the actuarial value determined for a female.

For the Special provisions in respect of classes of employees designated under section 23 of the Act respecting the Pension Plan of Management Personnel (chapter R-12.1, r. 2), the actuarial value corresponds to the sum of 50% of the actuarial value determined for a male and 50% of the actuarial value determined for a female.

The economic assumptions are established based on the rates and returns of bond indexes, as described in the CIA Standard, applicable to the second calendar month preceding the month in which the valuation took place, rather than those applicable to the preceding month.

T.B. 203095, s. 1; T.B. 226431, s. 4; I.N. 2024-05-27.

6.6. The actuarial value of the benefits referred to in section 117 of the Act is determined using the “benefit allocation” actuarial method and the actuarial assumption of retirement age is the age attained at the date of payment of that actuarial value.

The economic assumptions are established based on the rates and returns of bond indexes, as described in the CIA Standard, applicable to the fourth calendar month preceding the month in which the valuation took place, rather than those applicable to the preceding month.

T.B. 203095, s. 1; T.B. 226431, s. 5; I.N. 2024-05-27.

DIVISION III.2 SPOUSE’S WAIVER

(s. 196, 1st par., subpar. 7.2)

T.B. 206219, s. 1.

6.7. The waiver or revocation notice required under the second paragraph of section 79.1 of the Act must be dated and indicate the name and address of the employee, of the person who ceased to participate in the plan or of the pensioner, as the case may be, and the name and address of the spouse.

T.B. 206219, s. 1.

DIVISION IV LIMITS TO ADDED PENSION AMOUNTS

(s. 196, 1st par., subpar. 8)

7. For the purposes of section 107 of the Act, the sum of the amounts that employees may add to their pensions may not exceed the amount “M” that corresponds to the lesser of “M 1” and “M 2” in the following formulas:

M 1 = (F × N L × 2.0% × TM) - CR RR

M 2 = F × N × (1.1% × TM + $230)

T.B. 202420, s. 7; T.B. 208549, s. 3.

8. The amount added to an employee’s pension corresponds to the sum of the following amounts:

(1)  the amount “MO” that corresponds to the lesser of “MO 1” and “MO 2” in the following formulas:

i.  MO 1 = [N L x [(F x 2.0% x TM) - (0.7% x (the lesser of TM and MGA))]]- CR RR

ii.  MO 2 = F x N x 1.1% x TM

(2)  an amount equal to the difference between the amount “M” determined in section 7 and the amount “MO” determined in paragraph 1, if the employee is under 65 years of age when the pension becomes payable. The amount is paid until the end of the month in which the pensioner reaches 65 years of age.

T.B. 202420, s. 8.

9. For the purposes of sections 7 and 8,

CR RR is

(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 respecting the Government and Public Employees Retirement Plan (chapter R-10) and takes into account any applicable actuarial reduction or the increase provided for in section 93 of that 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 computed for each month between the date of retirement and the employee’s sixty-fifth birthday;

(3)  the value of the pension credit attributed to the sums corresponding to the years and parts of a year recognized for the 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 of the Act respecting the Government and Public Employees Retirement Plan or Schedule II of the Act respecting the Pension Plan of Management Personnel (chapter R-12.1) × (5))

---

(value of a $10 annual pension credit payable monthly as of age 65 according to Table II of Schedule IV.3 to the Regulation under the Act respecting the Government and Public Employees Retirement Plan (chapter R-10, r. 2) and taking into account the employee’s age on the date of designation of the employer in the applicable Schedule).

The value of the pension credit attributed must include the rate of any increase referred to in section 89 of that Act between the date of designation of the employer in the applicable Schedule and the date of retirement, and take 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-fifth birthday;

F is 1 minus the percentage of actuarial reduction applicable to the employee’s pension;

MGA is the average maximum pensionable earnings within the meaning of the Act respecting the Québec Pension Plan (chapter R-9);

N is the number of years and parts of a year referred to in paragraphs 1 to 3 of section 104 of the Act;

NL is 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 2010, 2016, without exceeding 40, minus the number of years of service credited to the plan;

TM is

(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 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 30 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 30 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.

T.B. 202420, s. 9; T.B. 203095, s. 2; T.B. 208549, s. 4; T.B. 210259, s. 3 and 6; T.B. 217979, s. 1.

10. The limits provided for in this Division must not operate to exceed the limits allowable under the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)).

T.B. 202420, s. 10.

DIVISION IV.0.1 PROGRESSIVE RETIREMENT

(s. 196, 1st par., subpar. 11)

T.B. 208549, s. 5.

10.0.1. For the purposes of section 136 of the Act, the agreement between the employee and the employer becomes void by reason of any of the following circumstances:

(1)  the time worked is less than 40% of the regular time of a full-time employee holding such a position;

(2)  the employee voluntarily ceases to participate in this plan during the first year of participation in the agreement;

(3)  an employee eligible for a pension does not cease participating in this plan on the expiry of the period agreed upon.

T.B. 208549, s. 5.

10.0.2. When the agreement becomes void, the pensionable salary, the service credited and the contributions shall be determined as follows:

(1)  the pensionable salary is the salary paid to the employee and that to which he would have been entitled if the employee had accomplished service, had it not been for the employee’s eligibility for salary insurance;

(2)  the service credited to the employee corresponds to the number of days and parts of days during which the employee accomplished service and during which the employee would have accomplished service if the employee had not been eligible for salary insurance;

(3)  the contributions recognized are those calculated on the pensionable salary paid to the employee and on that to which the employee would have been entitled if the employee had accomplished service, had it not been for the employee’s eligibility for salary insurance.

To compute the pension, the annualized pensionable salary is

(1)  for each of the years prior to 2010 during which the agreement applied, the salary determined in accordance with sections 53.1 to 53.3, 53.5 and 53.20 of the Act on the basis of the pensionable salary and service credited respectively referred to in subparagraphs 1 and 2 of the first paragraph;

(2)  for each of the years after 2009 during which the agreement applied, the salary determined in accordance with sections 53.6 to 53.16, 53.19 and 53.20 of the Act on the basis of the pensionable salary referred to in subparagraph 1 of the first paragraph, if the employee holds pensionable employment for which the basis of remuneration is 260 days, or, if the employee holds pensionable employment for which the basis of remuneration is 200 days, on the basis of the basic salary and the harmonized service established for the period during which the employee accomplished service or would have accomplished service if the employee had not been eligible for salary insurance.

T.B. 208549, s. 5.

10.0.3. The agreement between the employee and the employer terminates in the case of any of the following circumstances:

(1)  the employee’s death;

(2)  the employee voluntarily ceases to participate in the plan later than one year after the date fixed for the beginning of the agreement;

(3)  the employee is laid off, dismissed or holds pensionable employment with another department, body or employer, unless in the latter case the new department, agency or employer agrees to continue the agreement;

(4)  the employee and the employer decide jointly to terminate the agreement later than one year after the date fixed for the beginning of the agreement;

(5)  the employee becomes covered by the Pension Plan of Certain Teachers or by the Pension Plan of Peace Officers in Correctional Services;

(6)  the employee is still disabled at the 105th week and if, during the disability, the employee was eligible for salary insurance under a salary insurance plan other than the plan referred to in the second paragraph of section 34 of the Act.

T.B. 208549, s. 5.

10.0.4. The provisions of sections 134 and 135 of the Act apply in respect of the pensionable salary, annualized pensionable salary, service credited and contributions until the date on which the agreement terminates pursuant to section 10.0.3.

T.B. 208549, s. 5.

DIVISION IV.1 ACTUARIAL ASSUMPTIONS AND METHOD

(s. 196, 1st par., subpar. 12)

T.B. 203095, s. 3.

10.1. For the purposes of this section, “CIA Standard” means the Standard of Practice for Determining Pension Commuted Values confirmed by the board of directors of the Canadian Institute of Actuaries on 15 June 2004.

The actuarial values of the benefits referred to in sections 138.1 and 138.7 of the Act are determined using the following actuarial method and assumptions:

Actuarial method

The actuarial method is the “projected benefit method” pro rated on service.

In the case of section 138.1, the pensionable salary of the pension plans involved in the transfer is the salary that is taken into account to determine the average pensionable salary used to calculate the pension.

Actuarial assumptions

(1)  Mortality rates:

The mortality rates are determined in accordance with the CIA Standard.

(2)  Interest rates:

For fully-indexed and non-indexed benefits:

The interest rates are those determined in accordance with the CIA Standard.

For partially indexed benefits:

The interest rates 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 rounded to the nearest multiple of 0.25%.

(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 Standard;

(b)  for a benefit indexed according to the excess of the rate of increase in the pension index (PI) over 3% or to half of the rate of increase in the pension index, the indexing rate corresponds respectively to the excess of the indexing rate computed in the manner provided in subparagraph a over 3% or to half the indexing rate computed in the manner provided in that subparagraph.

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.

Inflation level	Addition to the result of the PI-3% formula	Adjusted indexing rate	Addition to the result of the 50% PI, min. PI-3% formula	Adjusted indexing rate
0.5	0.1	0.1	0.05	0.3
1.0	0.1	0.1	0.10	0.6
1.5	0.3	0.3	0.15	0.9
2.0	0.5	0.5	0.20	1.2
2.5	0.7	0.7	0.15	1.4
3.0	1.0	1.0	0.20	1.7
3.5	0.8	1.3	0.25	2.0
4.0	0.6	1.6	0.30	2.3
4.5	0.5	2.0	0.45	2.7
5.0	0.4	2.4	0.50	3.0

(4)  Turnover rate: Nil

(5)  Disability rate: Nil

(6)  Proportion of employees with a spouse at retirement:

Males: 85%

Females: 60%

(7)  Age of spouse at retirement:

— the male spouse of the member is assumed to be 2 years older;

— the female spouse of the member is assumed to be 3 years younger;

(8)  Rate of increase of the MPE:

The annual increase in the maximum pensionable earnings within the meaning of the Québec Pension Plan corresponds to the annual rate of inflation plus 1%.

(9)  Rate of increase of salaries

The annual increase in salaries corresponds to the annual increase of the MPE, increased by the annual rate of salary increase.

For the Pension Plan of Peace Officers in Correctional Services

Years of service	Annual rate of increase
0 year	2.50%
1-6 years	4.30%
7 years	2.50%
8-10 years	0.80%
11-20 years	0.60%
21-30 years	0.30%
31 years and over	0%

For the Pension Plan of Management Personnel

Age	Annual rate of increase
18-36 years	3.30%
37-38 years	3.10%
39-41 years	2.20%
42-44 years	1.70%
45-49 years	1.50%
50-54 years	1.20%
55 years and over	0.90%

For the Pension Plan of the members of the Sûreté du Québec

Years of service	Annual rate of increase
0-1 year	11.80%
2 years	13.20%
3 years	11.50%
4 years	8.90%
5 years	8.60%
6 years	6.00%
7-9 years	0.75%
10 years	1.50%
11-13 years	0.75%
14 years	2.00%
15-20 years	0.50%
21 years	2.00%
22 years or more	0.50%

(10)  Rate of increase in the Tax Act defined benefit limit:

The annual increase of Tax Act defined benefit limits corresponds to that of the maximum pensionable earnings as of each year of the indexing of that limit, in accordance with the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)).

(11)  Retirement age

For the purposes of section 138.1 of the Act, the retirement age is the age on the date on which membership ceases as determined pursuant to section 8.7 of the Act respecting the Pension Plan of Peace Officers in Correctional Services (chapter R-9.2).

For the purposes of section 138.7 of the Act, retirement is determined according to the following retirement rates:

For the Pension Plan of Management Personnel

For an employee who would attain 35 years of service at age 56 or older but before age 59	– 90% at 35 years of service at age 56 or older but before age 59
	– 100% (of the remaining 90%) at 40 years of service
For the employee whose age and years of service would add up to 90 (criteria 90) at age 58 or 59	– 75% at criteria 90
	– 100% (of the remaining 75%) at 35 years of service
For the employee whose age and years of service would add up to 90 (criteria 90) at age 60 or 61	– 80% at criteria 90
	– 100% (of the remaining 80%) at 35 years of service or age 65 if the employee attains that age without attaining 35 years of service
For an employee who would attain age 61 than 15 years of service without exceeding 29 years of service	– 70% at age 61
	– 100% (of the remaining 70%) at age 65
For an employee who would attain age 61 without having more than 15 years of service	– 60% at age 61
	– 100% (of the remaining 60%) at age 65
For an employee who has at least 35 years of service and at least 56 years of age at the time of transfer	– 90% 6 months after the transfer
	– 100% (of the remaining 90%) at 40 years of service or age 65 if the employee attains that age without attaining 40 years of service
For an employee whose age and years of service at the time of transfer add up to 90 at age 58 to 60 and has less than 35 years of service	– 80% 6 months after the transfer
	– 100% (of the remaining 80%) at 35 years of service or age 65 if the employee attains that age without attaining 35 years of service
For an employee who is at least 61 years of age and who has less than 35 years of service at the time of transfer	– 60% 6 months after the transfer
	– 100% (of the remaining 60%) at 35 years of service or age 65 if the employee attains that age without attaining 35 years of service

For the Pension Plan of the members of the Sûreté du Québec

For an employee who would attain 25 years of service at age 50 or older but before age 55 or whose age and years of service would add up to 75 (criteria 75) before age 50	– 15% at 25 years of service or criteria 75 if the employee is under 50 years of age
	– 100% (of the remaining 15%) at 32 years of service
For an employee who would attain 25 years of service at age 55 or older but before age 60	– 30% at 25 years of service
	– 100% (of the remaining 30%) at 32 years of service or age 60 if the employee attains that age without attaining 32 years of service
For an employee who would attain age 60 without having more than 25 years of service	– 60% at age 60
	– 100% (of the remaining 60%) at age 65
For an employee who is at least 60 years at the time of transfer	– 60% 6 months after the transfer age
	– 100% (of the remaining 60%) at 38 years of service or age 65 if the employee attains that age without attaining 38 years of service
For an employee who has at least 35 years of service without having attained age 60 at the time of transfer	– 60% 6 months after the transfer
	– 100% (of the remaining 60%) at 38 years of service or age 60 if the employee attains that age without attaining 38 years of service
For an employee whose age and years of service would add up to 75 at less than 50 years of age and less than 32 years of service at the time of transfer	– 30% 6 months after the transfer
	– 100% (of the remaining 30%) at 32 years of service
For an employee who has at least 25 years of service but less than 32 years of service at age 50 to 54 at the time of transfer	– 30% 6 months after the transfer
	– 100% (of the remaining 30%) at 32 years of service
For an employee who has at least 25 years of service but at least 32 years of service at age 55 to 59 at the time of transfer	– 50% 6 months after the transfer
	– 100% (of the remaining 50%) at 32 years of service or age 60 if the employee attains that age without attaining 32 years of service

(12)  Reduction for early retirement:

The pension under the Pension Plan of Peace Officers in Correctional Services used to determine the actuarial value of the benefits of that plan is reduced by 1/3 of 1% per month computed for each month comprised between the date on which the actuarial value is determined and the first date on which a pension could have been paid to the member without reduction under than plan.

T.B. 203095, s. 3; T.B. 206317, s. 1; T.B. 208549, s. 6; T.B. 221071, s. 1; T.B. 226431, s. 6; I.N. 2024-05-27.

DIVISION IV.2 CONDITIONS AND TERMS OF PAYMENT OF AN AMOUNT BY THE EMPLOYER ON REDEMPTION

(s. 196, 1st par., subpar. 12.1)

T.B. 219771, s. 4.

10.2. For the purposes of section 152.8.3 of the Act, an employer must pay, within 30 days of the date of the statement of account sent by Retraite Québec, the amount established in the statement.

Any amount not paid within the 30-day period is increased by interest, compounded annually, at the rate in Schedule VIII to the Act in force on the statement of account date and calculated as of that date.

T.B. 219771, s. 4.

DIVISION IV.3 CONDITIONS AND TERMS RELATED TO THE RETURN TO WORK OF A PENSIONER WHO HAS NOT RESUMED MEMBERSHIP IN THE PLAN

T.B. 221967, s. 1.

10.3. The election of a pensioner to not resume membership in the plan upon returning to work applies from the date on which Retraite Québec receives a notice in writing to that effect. However, the election made by a pensioner who did not have years or parts of a year of service credited or counted under the plan or who did not have years or parts of a year of service counted under section 3.2 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10) from the first day on which the pensioner held his or her last pensionable employment under the first paragraph of section 153 of the Act, shall apply from that day.

T.B. 221967, s. 1.

10.4. The pensioner who returns to pensionable employment under the plan shall continue to receive the benefits referred to in the first paragraph of section 97 of the Act until the day on which the sum of the salaries defined in section 10.5 is greater than the amount by which the annual salary defined in section 10.6 exceeds the amount corresponding to the benefits referred to in the first paragraph of section 97 of the Act without, where applicable, being reduced pursuant to section 57 of the Act. Sections 91, 95, 96 and 100 of the Act shall apply with the necessary modifications.

The day following that on which the sum of the salaries defined in section 10.5 is equal or greater than the amount by which the annual salary defined in section 10.6 exceeds the amount corresponding to the benefits referred to in the first paragraph of section 97 of the Act without, where applicable, being reduced pursuant to section 57 of the Act, the pensioner’s pension and the benefits referred to in subparagraphs 7 and 8 of the first paragraph of section 97 shall cease to be paid for a period corresponding to the service that would have otherwise been credited to the pensioner while he or she has returned to such employment and, where applicable, until 31 December, had the election not been made.

Notwithstanding the first and second paragraphs, where the pensioner returns to pensionable employment under the plan during the same year in which he or she ceased membership in the plan, the amount corresponding to the benefits referred to in the first paragraph of section 97 of the Act without, where applicable, being reduced under section 57 of the Act and the annual salary defined in section 10.6 shall be adjusted in proportion to the number of days for which the pensioner received or would have received benefits in relation to the total number of days in that year.

The first, second and third paragraphs also apply to a pensioner who holds pensionable employment under paragraph 3 of section 1 of the Act respecting the Pension Plan of Peace Officers in Correctional Services (chapter R-9.2). The same applies to a pensioner who holds pensionable employment under paragraph 4 of that section 1, where he or she is a member of the classes of employees designated in Division I of the schedule to the Regulation respecting the designation of classes of employees and the determination of special provisions applicable to employees of the Institut Philippe-Pinel (chapter R-9.2, r. 2).

T.B. 221967, s. 1.

10.5. The employer shall, within 30 days following the first day of the return to work, file a report to Retraite Québec that contains, with respect to the pensioner,

(1)  the date that the return to work began and the estimated date that the return will end;

(2)  the estimated amount of the salary which corresponds to the salary defined in section 25 and which the employer is to pay the pensioner in the context of his or her return to work pursuant to section 154 of the Act until 31 December of the year in which the first day of the return to work took place; and

(3)  based on the employer’s estimate, the number of days worked by the pensioner until 31 December of the year in which the first day of the return to work took place and the percentage of working time.

The employer shall, within 30 days following the last day of the return to work, file a report to Retraite Québec that contains

(1)  to the extent that the employer was not required, following a departure, to notify Retraite Québec in accordance with section 10.4,

(a)  the date of the end of the return to work;

(b)  the amount of the salary which corresponds to the salary defined in section 25 and which was paid to the pensioner in the context of his or her return to work pursuant to section 154 of the Act during the year in which the last day of the return to work took place; and

(2)  the number of days worked during the year in which the last day of the return to work took place and the percentage of working time.

If the report referred to in the second paragraph was not filed, the employer shall, no later than 1 February of each year, file a report to Retraite Québec that contains

(1)  the amount of the salary which corresponds to the salary defined in section 25 and which was paid to the pensioner in the context of his or her return to work pursuant to section 154 of the Act during the previous calendar year;

(2)  the number of days worked in the previous calendar year and the percentage of working time;

(3)  the estimated amount of the salary which corresponds to the salary defined in section 25 and which the employer is to pay to the pensioner in the context of his or her return to work pursuant to section 154 of the Act during the calendar year in progress; and

(4)  based on the employer’s estimate, the number of days worked by the pensioner during the calendar year in progress and the percentage of working time.

If the amount of the benefit received by the pensioner is less than that to which the pensioner is entitled, Retraite Québec shall pay the amount due within two months of receiving a report under the first, second or third paragraph. If the amount of the benefit received by the pensioner is greater than that to which the pensioner is entitled, Retraite Québec shall set off the overpayment in the manner determined by regulation under section 147 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10). No interest may be charged on any sum thus paid or collected.

T.B. 221967, s. 1.

10.6. The annual salary of the pensioner is equal to the salary defined in section 25 of the Act

(1)  that the pensioner received on the day he or she ceased to be a member of the plan, computed on a yearly basis; or

(2)  that the pensioner would otherwise have received on the day he or she ceased to be a member of the plan or that the pensioner would have received on that day had he or she not been, in particular, absent without pay or receiving salary insurance benefits, computed on a yearly basis.

For the purposes of the first paragraph, the annual salary of a pensioner who once again ceased to hold an employment pursuant to section 153 of the Act is equal to the salary defined in section 25 of the Act

(1)  that the pensioner received on the day he or she ceased to be an employee under section 153 of the Act during his or her most recent return to work, computed on a yearly basis; or

(2)  that the pensioner would otherwise have received on the day he or she ceased to be an employee under section 153 of the Act during his or her most recent return to work or that the pensioner would have received on that day had he or she not been, in particular, absent without pay or receiving salary insurance benefits, computed on a yearly basis.

T.B. 221967, s. 1.

10.7. The pensioner who holds pensionable employment under the Government and Public Employees Retirement Plan shall continue to receive the benefits referred to in the first paragraph of section 97 of the Act.

The first paragraph also applies to a pensioner who holds pensionable employment under paragraphs 1 or 2 of section 1 of the Act respecting the Pension Plan of Peace Officers in Correctional Services (chapter R-9.2). The same applies to a pensioner who holds pensionable employment under paragraph 4 of that section 1, where he or she is a member of the classes of employees designated in Division II or III of the schedule to the Regulation respecting the designation of classes of employees and the determination of special provisions applicable to employees of the Institut Philippe-Pinel (chapter R-9.2, r. 2).

T.B. 221967, s. 1; T.B. 223524, s. 1.

10.8. The pension accrued to the pensioner under the plan shall be indexed in accordance with the plan for the period during which the pension ceases to be paid.

Sections 108.1, 108.2, 116.1 and 116.2 of the Act apply to the pension referred to in the first paragraph.

T.B. 221967, s. 1.

10.9. To determine the benefits, other than the pension accrued under this plan, to which a pensioner will be entitled when he or she ceases to be employed, the benefits are adjusted in accordance with the plan concerned.

T.B. 221967, s. 1.

DIVISION V CONTRIBUTIONS

(s. 196, 1st par., subpar. 18)

11. For the years 2023, 2024 and 2025 and as of 1 January of each of those years, the amount provided for in section 41 of the Act is equal to 12.67% on that part of the pensionable salary which exceeds 35% of the maximum pensionable earnings within the meaning of the Act respecting the Québec Pension Plan (chapter R-9).

T.B. 202420, s. 11; T.B. 205757, s. 1; T.B. 209600, s. 1; T.B. 210899, s. 1; T.B. 211924, s. 1; T.B. 217979, s. 2; T.B. 227389, s. 1.

11.1. (Revoked).

T.B. 211924, s. 1; T.B. 213341, s. 1.

DIVISION V.1

(Implicitly revoked)

T.B. 211924, s. 1; I.N. 2018-11-01.

11.2. (Implicitly revoked).

T.B. 211924, s. 1; I.N. 2018-11-01.

11.3. (Implicitly revoked).

T.B. 211924, s. 1; I.N. 2018-11-01.

DIVISION V.2 TRANSFER OF THE SUMS REPRESENTING THE ACTUARIAL VALUE OF ADDITIONAL BENEFITS

(s. 196, 1st par., subpar. 19)

T.B. 216000, s. 3.

11.4. The actuarial value of the additional benefits referred to in section 188 of the Act is established on 1 January of the year in which the employee became governed by the Government and Public Employees Retirement Plan and on the basis of the assumptions used in the actuarial valuation referred to in section 171 of the Act and available before the end of the year following the year in which the employee became so governed.

The sums representing the actuarial value of the additional benefits are increased by interest calculated as of 1 January of the year in which the employee became governed by the Government and Public Employees Retirement Plan until the date the sums are transferred into the employees’ contribution fund under that retirement plan.

The sums representing the actuarial value of the additional benefits, including the related interest, are transferred not later than 31 December of the year occurring 3 years after the year of the filing of the actuarial valuation whose assumptions were used to establish the value of those benefits.

Despite the third paragraph, the sums representing the actuarial value of the additional benefits related to the benefits referred to in section 184 or 185 of the Act and acquired by an employee who, before 1 January 2015, became governed by the Government and Public Employees Retirement Plan, including the related interest, are transferred not later than 31 December 2016.

T.B. 216000, s. 3.

DIVISION V.3

(Revoked).

T.B. 218307, s. 1; T.B. 220176, s. 1.

11.5. (Revoked).

T.B. 218307, s. 1; T.B. 220176, s. 1.

DIVISION VI LIMIT APPLICABLE TO THE PENSIONABLE SALARY, AND RULES AND PROCEDURES FOR COMPUTING THE PENSION

(s. 196, 1st par., subpar. 22)

12. The pensionable salary, for the purpose of establishing the cost of redeeming a year prior to 1 January 1990 in which the employee was not a member of a pension plan within the meaning of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), must not exceed the amount “M” in the following formula:

A + (0.7% x B) = M

____________

2%

“A” is ⅔ of the greater of $1,725 and the limit of the determined benefits applicable under the Income Tax Act for the year in which the application for redemption is received at Retraite Québec;

“B” is the part of the pensionable salary that does not exceed the maximum pensionable earnings within the meaning of the Act respecting the Québec Pension Plan (chapter R-9) and that is applicable for the year in which the application for redemption is received at Retraite Québec.

The pensionable salary, for the purpose of establishing the cost of redeeming part of a year prior to 1 January 1990, must be divided by the credited service being redeemed and the amount resulting from that division must not exceed the amount “M” in the first paragraph.

T.B. 202420, s. 12; T.B. 202661, s. 1.

13. If the employee retires on the date of the employee’s sixty-fifth birthday or after that date, the part of the pension related to years or parts of a year prior to 1 January 1990 in which the employee was not a member of a pension plan within the meaning of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) and that were redeemed may not exceed the amount obtained by multiplying ⅔ of the greater of $1,725 and the limit of the determined benefits applicable for the year of retirement under the Income Tax Act by the number of years or parts of a year of service credited under the redemption.

If the employee retires before the date of the employee’s sixty-fifth birthday, the part of the pension related to those years or parts of a year may not exceed the amount obtained pursuant to the first paragraph, increased by the amount obtained by multiplying the amount calculated pursuant to section 57 of the Act by the fraction that the number of years or parts of a year of credited service being redeemed is of the number of years or parts of a year of credited service after 31 December 1965, up to a maximum of 35 years of service.

T.B. 202420, s. 13; T.B. 210259, s. 4 and 6.

DIVISION VII PERIODS OF ABSENCE THAT MAY BE CREDITED UNDER THE PENSION PLAN OF MANAGEMENT PERSONNEL

(s. 196, 1st par., subpar. 23)

14. The periods during which an employee is absent after 31 December 1991, except the periods during which the employee is exempt from any contribution under section 34 or 35 of the Act and the periods for which the Income Tax Act R.S.C. 1985, c. 1 (5th Suppl.)) provides for the issue of an equivalence factor for past service, and that may be credited under the Pension Plan of Management Personnel must not exceed a total of 5 years of service. In cases of maternity, paternity or adoption leave, that total may be increased by not more than 3 years of service.

For the purposes of the first paragraph, a period of absence corresponds to the difference between the service credited under the Pension Plan of Management Personnel and the service that would have been credited under that plan in proportion to the salary received by the employee. For the purposes of that paragraph, maternity, paternity or adoption leave constitutes all or part of a period beginning at the time of birth or adoption of a child and ending not later than 12 months after any of those events.

T.B. 202420, s. 14.

15. An employee may have each period of absence without pay prior to 1 January 1990 credited under the plan, without exceeding 2 years of service except in the case of a period of absence related to total disability, educational leave, sabbatical leave, maternity leave, paternity leave or adoption leave.

T.B. 202420, s. 15.

16. Despite section 15, an employee may have each period of absence prior to 1 January 1990 credited under the plan, without exceeding 3 years of service, during which the employee held employment with the Government of Canada, the government of another province, a union, an association representing management personnel, a charitable organization or an educational institution if no contribution concerning that period has been accumulated in another plan.

T.B. 202420, s. 16.

DIVISION VIII ESTABLISHMENT OF RATES OF INTEREST

(s. 196, 1st par., subpar. 23.1)

§ 1 . — Rates of interest based on the rates of return of certain funds

17. The interest rate in Schedule VII to the Act, applicable from 1 June of a given year to 31 May of the following year, is established by calculating the geometric mean of the annual rates of return for the 3-year period ending on 31 December of the year preceding the reference year, according to the formula in Schedule II.

T.B. 202420, s. 17; T.B. 213341, s. 2.

18. The annual rate of return is the rate determined by the Caisse de dépôt et placement du Québec as at 31 December of each year, taking into account the classes of amounts referred to in subparagraphs 1, 2 and 4 of the first paragraph of section 177 of the Act, for the employees’ contribution fund of the Pension Plan of Management Personnel, after subtracting the management expenses.

T.B. 202420, s. 18; T.B. 213341, s. 3.

§ 2 . — Rates of interest based on an external index

19. The interest rate in Schedule VIII to the Act is applicable from 1 June of a given year to 31 May of the following year. The rate is established by determining the arithmetic mean, for the 12-month period ending on 31 December of the preceding year, of the nominal rates of interest on negotiable bonds issued by the Government of Canada for a term of 3 to 5 years as compiled by Statistics Canada and published in the Bank of Canada Review under the identification No. V-122485 in the CANSIM System.

T.B. 202420, s. 19; T.B. 213341, s. 4.

DIVISION IX COMPUTATION OF INTEREST

(s. 196, 1st par., subpar. 24)

20. (Revoked).

T.B. 202420, s. 20; T.B. 207217, s. 2.

20.1. For the purposes of the second paragraph of section 206 of the Act, the interest rate applicable to the contributions referred to in subparagraph 1 of the first paragraph of that section is determined according to the formula in Schedule III.

T.B. 207217, s. 3.

21. Interest is computed at the rates in Schedules VII and VIII to the Act, according to the periods of application of those rates provided for in the sections concerned in the Act. Where the sections do not provide the date on which interest ceases to accrue, the interest is computed up to the date of the reimbursement of the contributions.

T.B. 202420, s. 21.

DIVISION X FINAL

22. This Regulation replaces the Regulation under the Act respecting the Pension Plan of Management Personnel (T.B. 197329, 01-11-27).

T.B. 202420, s. 22.

23. This Regulation comes into force on 24 May 2005. However, section 14 has effect from 1 January 2001, sections 3 to 6 and Schedule I have effect from 1 July 2002, paragraph 5 of section 1 has effect from 1 January 2005 and Divisions VIII and IX come into force on 1 June 2005.

T.B. 202420, s. 23.

SCHEDULE I

(s. 4)

TARIFF APPLICABLE TO PAY THE COST OF REDEMPTION OF SERVICE

(1) Redemption of a period of absence without pay under sections 38 and 118 of the Act.

Age of the employee on the date the application for redemption is received	Period of service covered by the redemption
	Prior to 1 July 1982	After 30 June 1982 and prior to 1 January 2000	After 31 December 1999
24 years or less	13.8%	10.9%	12.1%
25	14.2%	11.3%	12.5%
26	14.8%	11.7%	13.1%
27	15.5%	12.3%	13.6%
28	16.0%	12.8%	14.2%
29	16.4%	13.1%	14.5%
30	16.7%	13.3%	14.8%
31	17.0%	13.5%	15.0%
32	17.3%	13.8%	15.3%
33	17.6%	14.0%	15.6%
34	17.9%	14.2%	15.8%
35	18.2%	14.4%	16.0%
36	18.4%	14.6%	16.2%
37	18.6%	14.8%	16.4%
38	18.8%	15.0%	16.7%
39	19.1%	15.2%	16.9%
40	19.4%	15.5%	17.2%
41	19.7%	15.7%	17.4%
42	20.0%	16.0%	17.7%
43	20.4%	16.3%	18.1%
44	20.9%	16.7%	18.5%
45	21.3%	17.0%	18.9%
46	21.8%	17.4%	19.3%
47	22.3%	17.8%	19.7%
48	22.8%	18.2%	20.2%
49	23.4%	18.7%	20.7%
50	24.0%	19.1%	21.2%
51	24.6%	19.6%	21.8%
52	25.3%	20.2%	22.4%
53	26.0%	20.7%	23.0%
54	26.4%	21.1%	23.4%
55	26.6%	21.3%	23.6%
56	26.7%	21.4%	23.7%
57	26.5%	21.3%	23.5%
58	26.1%	21.1%	23.3%
59	25.9%	21.0%	23.1%
60	25.6%	20.8%	22.9%
61	25.4%	20.7%	22.7%
62	25.1%	20.5%	22.5%
63	24.8%	20.3%	22.3%
64	24.5%	20.2%	22.1%
65	24.2%	20.0%	21.9%
66	23.6%	19.6%	21.4%
67	23.1%	19.2%	20.9%
68	22.5%	18.9%	20.5%
69	21.9%	18.5%	20.0%
70	21.3%	18.1%	19.5%
71	20.7%	17.7%	19.0%

Despite the foregoing, in the case of a period of absence that began after 31 December 2007, the tariff may not be less than 200% of the contributions that would have been paid by the employee during that period.

(2) Redemption of a period of service accumulated by an employee hired as casual employee under section 146 of the Act.

Age of the employee on the date the application for redemption is received	Period of service covered by the redemption
	Prior to 1 July 1982	After 30 June 1982 and prior to 1 January 2000	After 31 December 1999
24 years or less	5.75%	5.45%	6.05%
25	5.92%	5.65%	6.25%
26	6.17%	5.85%	6.55%
27	6.46%	6.15%	6.80%
28	6.67%	6.40%	7.10%
29	6.83%	6.55%	7.25%
30	6.96%	6.65%	7.40%
31	7.08%	6.75%	7.50%
32	7.21%	6.90%	7.65%
33	7.33%	7.00%	7.80%
34	7.46%	7.10%	7.90%
35	7.58%	7.20%	8.00%
36	7.67%	7.30%	8.10%
37	7.75%	7.40%	8.20%
38	7.83%	7.50%	8.35%
39	7.96%	7.60%	8.45%
40	8.08%	7.75%	8.60%
41	8.21%	7.85%	8.70%
42	8.33%	8.00%	8.85%
43	8.50%	8.15%	9.05%
44	8.71%	8.35%	9.25%
45	8.88%	8.50%	9.45%
46	9.08%	8.70%	9.65%
47	9.29%	8.90%	9.85%
48	9.50%	9.10%	10.10%
49	9.75%	9.35%	10.35%
50	10.00%	9.55%	10.60%
51	10.25%	9.80%	10.90%
52	10.54%	10.10%	11.20%
53	10.83%	10.35%	11.50%
54	11.00%	10.55%	11.70%
55	11.08%	10.65%	11.80%
56	11.13%	10.70%	11.85%
57	11.04%	10.65%	11.75%
58	10.88%	10.55%	11.65%
59	10.79%	10.50%	11.55%
60	10.67%	10.40%	11.45%
61	10.58%	10.35%	11.35%
62	10.46%	10.25%	11.25%
63	10.33%	10.15%	11.15%
64	10.21%	10.10%	11.05%
65	10.08%	10.00%	10.95%
66	9.83%	9.80%	10.70%
67	9.63%	9.60%	10.45%
68	9.38%	9.45%	10.25%
69	9.13%	9.25%	10.00%
70	8.88%	9.05%	9.75%
71	8.63%	8.85%	9.50%

(3) The tariff applicable to pay the cost of redemption of service under section 152.1 of the Act in respect of a period of service performed by an employee in a research centre varies according to the date on which the application for redemption of service is received by Retraite Québec.

Where the application for redemption of service is received before 1 January 2013, the tariff is the tariff appearing in the table of section 2 of this Schedule. Where the application is received after 31 December 2012, the tariff is the tariff appearing in the table of section 1 of this Schedule.

(4) The tariff applicable to pay the cost of redemption of service under section 152.4 or section 152.6 of the Act is the tariff appearing in the table in section 1 of this Schedule.

(5) The tariff applicable to pay the cost of redemption of service under section 152.8.1 of the Act in respect of a year or part of a year of service prior to 1 January 1988 is the tariff appearing in the table in section 2 of this Schedule.

The tariff applicable to pay the cost of redemption of service under section 152.8.1 of the Act in respect of a year or part of a year of service after 31 December 1987 is the tariff appearing in the table in section 1 of this Schedule.

T.B. 202420, Sch. I; T.B. 209327, s. 4; T.B. 210259, s. 5; T.B. 211552, s. 1; T.B. 213424, s. 1; I.N. 2014-03-01; T.B. 216000, s. 4; T.B. 216998, s.  2; T.B. 218307, s. 2; T.B. 219771, s. 5; T.B. 221650, s. 1; T.B. 227389, s. 2.

SCHEDULE I.1

(Revoked)

T.B. 211924, s. 2; T.B. 213341, s. 5; T.B. 216998, s. 3; T.B. 217979, s. 3.

SCHEDULE I.2

(Revoked).

T.B. 211924, s. 2; T.B. 213341, s. 5; T.B. 216998, s. 3; T.B. 217979, s. 4; T.B. 221650, s. 2; T.B. 227389, s. 3.

SCHEDULE II

(s.17)

COMPUTATION OF THE INTEREST RATE

The formula for the computation of the rate of interest for the reference year is the following:

iy = ( (1 + Ty-1 ) ( 1 + Ty-2 ) ( 1 + Ty-3 ) ) 1/3 - 1

where:

Ty-1: rate of return for the year preceding the reference year

Ty-2: rate of return for the year occurring 2 years before the reference year

Ty-3: rate of return for the year occurring 3 years before the reference year

T.B. 202420, Sch. II; T.B. 213341, s. 6.

SCHEDULE III

(s. 20.1)

INTEREST RATE

Pursuant to section 20.1, the interest rate applicable to contributions referred to in subparagraph 1 of the first paragraph of section 206 of the Act corresponds to rate I determined according to the following formula:

I =[(1+i1) nb1/365 × (1+i2) nb2/365] 1/2 -1, where

i1 represents the interest rate of Schedule VII to the Act applicable at the beginning of the employee’s period of membership until the earlier of the following dates: the date of the end of the period of application of the interest rate, the date of the end of the period of membership or 31 December of the year concerned;

nb1 represents the number of days during which the interest rate represented by the variable i1 is applicable;

i2 represents, where the employee’s period of membership ends on a date later than the date of the end of the period of application of the interest rate represented by the variable i1, the interest rate of Schedule VII to the Act applicable on the day following the end of the period of application until the earlier of the following dates: the date of the end of the period of membership or 31 December of the year concerned;

nb2 represents the number of days during which the interest rate represented by the variable i2 is applicable.

Where the period of membership ends on a date prior to the date of the end of the period of application of the interest rate represented by the variable i1, the term (1+i2) nb2/365 is equal to 1.

T.B. 207217, s. 4; T.B. 213341, s. 7.

2020

(T.B. 221967) SECTION 2. Notwithstanding the first and second paragraphs of section 10.4, introduced by section 1 of this Regulation:

(1) for the year 2020, the pensioner’s salary defined in section 10.5 does not include the salary corresponding to the period prior to 1 March 2020;

(2) the salary defined in section 10.5 of the pensioner referred to in the first paragraph of section 27 of the Act to amend the Act respecting the Pension Plan of Management Personnel and other legislative provisions (S.Q. 2012, chapter 6) and who has reached 65 years of age does not include the salary corresponding to the period prior to reaching that age.

REFERENCES

T.B. 202420, 2005 G.O. 2, 1733

T.B. 202661, 2005 G.O. 2, 2683

T.B. 203095, 2005 G.O. 2, 5500

T.B. 204929, 2007 G.O. 2, 1438

T.B. 205757, 2007 G.O. 2, 3982

T.B. 206219, 2008 G.O. 2, 1163

T.B. 206317, 2008 G.O. 2, 1299

T.B. 207217, 2009 G.O. 2, 123

T.B. 208549, 2010 G.O. 2, 141

T.B. 209327, 2010 G.O. 2, 2788

T.B. 209600, 2010 G.O. 2, 4077

T.B. 210259, 2011 G.O. 2, 1357

T.B. 210899, 2012 G.O. 2, 77

T.B. 211552, 2012 G.O. 2, 2303

T.B. 211924, 2012 G.O. 2, 3171

T.B. 212725, 2013 G.O. 2, 1695

T.B. 213341, 2013 G.O. 2, 3271

T.B. 213424, 2013 G.O. 2, 3735

S.Q. 2015, c. 20, s. 61

T.B. 216000, 2016 G.O. 2, 1231

T.B. 216998, 2016 G.O. 2, 4116

T.B. 218307, 2017 G.O. 2, 3701

T.B. 217979, 2017 G.O. 2, 2183

T.B. 219771, 2018 G.O. 2, 3619

T.B. 220176, 2018 G.O. 2, 5223

T.B. 221071, 2019 G.O. 2, 1618

T.B. 221650, 2019 G.O. 2, 3033

T.B. 221967, 2020 G.O. 2, 587

T.B. 223524, 2021 G.O. 2, 712

T.B. 224484, 2021 G.O. 2, 2569

O.C. 816-2021, 2021 G.O. 2, 2103

T.B. 226431, 2022 G.O. 2, 2403

T.B. 227389, 2022 G.O. 2, 3991