R-12.1, r. 1.1 - Regulation respecting certain provisions relating to the partition and assignment of benefits accrued under the supplementary benefits plan in respect of classes of employees designated under section 208 of the Act respecting the Pension Plan of Management Personnel

Updated to 1 September 2012

This document has official status.

chapter R-12.1, r. 1.1

Regulation respecting certain provisions relating to the partition and assignment of benefits accrued under the supplementary benefits plan in respect of classes of employees designated under section 208 of the Act respecting the Pension Plan of Management Personnel

Act respecting the Pension Plan of Management Personnel

(chapter R-12.1, ss. 208 and 416).

1. The actuarial value of the benefits of the supplementary benefits plan in respect to classes of employees designated under section 208 of the Act respecting the Pension Plan of Management Personnel (chapter R-12.1) is determined according to the “distribution of benefits” method and corresponds to the sum of 75% of the actuarial value determined for a male and 25% of the actuarial value determined for a female. The actuarial value of the benefits is also determined according to the following actuarial assumptions:

(1)  the mortality rates:

The mortality rates are those determined according to the CIA Standards.

(2)  the interest rates:

(a)  the interest rates for fully-indexed or non-indexed benefits are those determined according to 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 according to the CIA Standards.

(3)  the indexing rate:

(a)  the indexing rate for a benefit fully-indexed by the rate of increase in the Pension Index is calculated in the manner described in the CIA Standards;

(b)  the indexing rate for a benefit indexed by the excess of the rate of increase in the Pension Index (PI) over 3% or by half of the rate of increase in the Pension Index corresponds respectively to the excess of the indexing rate calculated in the manner provided in subparagraph a over 3% or by half the indexing rate calculated in the manner provided in that subparagraph.

In order to take into account inflation rate variations, the following additions are made to the results of the effective indexing formulas for actuarial value calculation purposes:

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

(5)  the disability rate: Nil

(6)  the proportion of married persons at death:

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Age                         Male            Female
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18-64 years old              85%              65%
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65-79 years old              80%              30%
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80-109 years old             60%              10%
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110 years old                 0%               0%
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(7)  the age difference between spouses at death:

(a)  the male spouse of the beneficiary is assumed to be 1 year older;

(b)  the female spouse of the beneficiary is assumed to be 4 years younger.

In this section, the expression “CIA Standards” refers to the standards of practice entitled Practice-Specific Standards for Pension Plans-3800 Pension Commuted Values of the Canadian Institute of Actuaries, effective since 1 February 2005 and periodically revised.

T.B. 210826, s. 1.

2. Where the Commission administrative des régimes de retraite et d’assurances makes the payment of sums awarded to the spouse as a result of the partition or assignment of benefits accrued under the supplementary benefits plan, interest compounded annually and accrued from the date of assessment to the date of payment must be added to the sums awarded to the spouse at the rate in Schedule VIII to the Act, in effect at the date of assessment. Where that date is prior to 1 July 2002, the applicable interest rate is 5.34%.

T.B. 210826, s. 2.

3. For the purposes of sections 14 and 15 of Schedule I to the Order in Council respecting the partition and assignment of benefits accrued under the supplementary benefits plan in respect of classes of employees designated under section 220.1 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10, r. 6), as it applies to the Pension Plan of Management Personnel, the amount of pension that would be obtained on the basis of the sums awarded to the spouse at the date of assessment is established at that date according to the actuarial method and assumptions that were used for the assessment of benefits accrued.

In addition, for the purposes of those sections 14 and 15, a reference to section 5 of Schedule I to that Order in Council must be read as a reference to section 1 of this Regulation if the benefits were assessed in accordance with section 1 of this Regulation.

T.B. 210826, s. 3.

4. For the purposes of the Act respecting the Pension Plan of Management Personnel (chapter R-12.1), sections 5 and 10 of Schedule I to the Order in Council respecting the partition and assignment of benefits accrued under the supplementary benefits plan in respect of classes of employees designated under section 220.1 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10, r. 6) are revoked. Despite the foregoing, section 5 remains in force in the situations referred to in the first paragraph of section 3 of this Regulation.

T.B. 210826, s. 4.

5. (Omitted).

T.B. 210826, s. 5.

REFERENCES

T.B. 210826, 2011 G.O. 2, 3705