R-12.1, r. 2 - Special provisions in respect of classes of employees designated under section 23 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. 2

Special provisions in respect of classes of employees designated under section 23 of the Act respecting the Pension Plan of Management Personnel

Act respecting the Pension Plan of Management Personnel

(chapter R-12.1, s. 23).

CHAPTER I DEFINITIONS AND SCOPE

1. In this Order in Council,

“Act” means the Act respecting the Pension Plan of Management Personnel (chapter R-12.1); (loi)

“former pension plan” means

(1)  a pension plan designated in paragraph 1 of Schedule I of which the employee was a member before this Order in Council became applicable to the employee or the Order in Council under which, on that date, the employee was receiving a pension;

(2)   pension plan designated in paragraph 2 of Schedule I according to the cases provided for in the Schedule; (régime de retraite antérieur)

“plan” means the Pension Plan of Management Personnel; (régime)

“Retraite Québec” means Retraite Québec established by section 1 of the Act respecting Retraite Québec (chapter R-26.3); (Retraite Québec)

“total pension” means the amount of the pension or deferred pension under the plan, including the amount resulting from the application of the special provisions of this Order in Council and, where applicable, the amount of any pension under a former pension plan. (montant total de la pension)

O.C. 960-2003, s. 1; O.C. 524-2009, s. 1.

2. For the purposes of section 23 of the Act, this Order in Council applies to employees who are members of the plan and belong to one of the classes of employees designated in Schedule  II.

O.C. 960-2003, s. 2.

3. A person who belongs to one of the classes of employees designated in Schedule II who, on 31 December 1991, was not a member of the Government and Public Employees Retirement Plan pursuant to paragraph 7 of section 4 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10) as it read on 31  December 2000 may, upon prior authorization of the Government, become a member of the plan by sending a notice to that effect to the Commission. The employee’s membership may not become effective prior to 1 January of the year during which the notice is received by the Commission.

O.C. 960-2003, s. 3.

4. Where an employee ceases to belong to one of the classes designated in Schedule II, this Order in Council continues to apply to the employee as long as the employee holds pensionable employment under the plan.

The same applies to an employee who ceases to be a member of the plan and who again holds pensionable employment under the plan, the Government and Public Employees Retirement Plan or the Pension Plan of Peace Officers in Correctional Services, unless the employee has received the actuarial value of the total pension in accordance with section 16.

An employee who continues to be subject to this Order in Council pursuant to the first paragraph after ceasing to belong to one of the classes of employees referred to in paragraphs 12 and 13 of Schedule II is governed only by the provisions of this Order in Council that were applicable to the employee while those paragraphs applied to the employee.

O.C. 960-2003, s. 4; O.C. 482-2005, s. 1.

CHAPTER II SPECIAL PROVISIONS OF THE PLAN

4.1. For the purpose of computing the contributions relating to the years of service credited after 31 December 2010 over and beyond 35 years of service used in computing the total pension, the pensionable salary of those years in excess that is necessary to reach the defined benefit limit applicable for each year under the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) is established as if the rate of acquisition of the pension relating to those years was 1.7% per year of service credited, without taking into account the first paragraph of section 30 of the Act.

O.C. 376-2011, s. 1.

5. No amount shall be withheld from the pensionable salary paid to an employee who has at least 38 years of service for the purpose of computing the total pension. The years of service credited over and beyond 35 years of service used in computing the total pension must occur after 31 December 2010.

O.C. 960-2003, s. 5; O.C. 376-2011, s. 2.

6. A pension is granted to an employee

(1)  who has reached 60 years of age;

(2)  who has 35 or more years of service;

(3)  who has, in years of age and years of service, a combined total of 85 or more;

(4)  who has reached 50 years of age.

O.C. 960-2003, s. 6.

7. In the case provided for in paragraph 4 of section 6, the amount of the pension is payable to the employee from the date on which the application is received by the Commission, and is reduced, for its duration, by 0.25% per month, computed for each month comprised between the date on which it is payable and the nearest date on which it would otherwise have been granted to the employee without any actuarial reduction under this Order in Council. If the date of receipt of the application is subsequent to the nearest date on which the amount of the pension may be granted to the employee under those paragraphs, the amount of the pension is payable to the employee on the latter date.

For the purposes of the first paragraph, where the employee benefits from the provisions of section 23, all the months during which the employee held an office referred to in section 23 must be counted for the purpose of computing the age and years of service of an employee who was an administrator  December 1991. The total number of years added may not exceed 5.

O.C. 960-2003, s. 7.

7.1. Where the employee ceases to be a member of the plan before 1 January 2010, sections 8, 9, 11, 23 and 27 apply as they read on the date the employee ceases to be a member of the plan. The same applies in respect of sections 14 and 29 if a person to which this Order in Council applies dies before 1 January 2010.

O.C. 524-2009, s. 2.

8. Subject to section 25, the amount of the pension of an employee who ceases to be a member of the plan after 31 December 2009 in respect of the years of service credited to the employee while this Order in Council applies to the employee, is equal to the total of the following amounts on the date on which the employee ceases to be a member of the plan:

(1)  the amount obtained by multiplying the average pensionable salary by 1.6% per year of service credited before 1 January 1997 and by 1.7% per year of service credited after 31 December 1996, while this Order in Council or, as the case may be, Order in Council 245-92 dated 26 February 1992, as it read on 16 September 2003, applies to the employee;

(2)  an amount equal to 0.15% of the employee’s average pensionable salary per year of service credited before 1 January 1997 and to 0.30% per year of service credited after 31 December 1996, while this Order in Council or, as the case may be, Order in Council 245-92 dated 26 February 1992, as it read on 16 September 2003, applies to the employee if the employee is under 65 years of age. The amount is payable until the end of the month in which the pensioner reaches 65 years of age and is indexed in accordance with sections 115 and 116 of the Act. If the employee has less than 120 months of service, including the months of service recognized under the employee’s former pension plan, the amount is reduced by multiplying it by the fraction that the number of months of such service is of the total of 120. For the purpose of computing the number of months of service, the service accumulated by an employee during the period in which the plan did not apply to the employee while one of the following provisions applied to the employee must also be taken into account:

(a)  section 2 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10) as it read on 31 December 2000;

(b)  paragraph 7 of section 4 of that Act as it read on that date;

(c)  section 2 of the Act; or

(d)  paragraph 7 of section 3 of the Act; and

(3)  the amount obtained by multiplying the average pensionable salary by 2% per year of service credited after 31 December 2010, while this Order in Council applies to the employee, over and beyond 35 years of service used in computing the total pension.

The amount of the pension obtained pursuant to subparagraphs 1 and 3 of the first paragraph may not exceed the amount obtained by multiplying the defined benefit limit, applicable for the year of retirement and established under the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), by the number of years of service credited while this Order in Council applies to the employee.

The amount of the pension obtained pursuant to subparagraph 2 of the first paragraph may not exceed the amount obtained by computing the reduction provided for in section 57 of the Act, taking into account only the years of service credited after 31 December 1991 while this Order in Council applies to the employee but, for the purposes of subparagraph 3 of the first paragraph of that section, selecting only the last years of service required to bring the aggregate of the corresponding contributory periods up to 3 or, if the aggregate is less than 3, selecting all the years of service.

For the purposes of subparagraphs 1 and 2 of the first paragraph, the number of years of an employee’s credited service are taken into account up to the number of years necessary so that the years of service used in computing the total pension do not exceed 35. The years of service that exceed 35 and are credited on 31 December 1995 to an employee who ceases to be a member of the plan after that date are taken into account for the purpose of computing the pension.

For the purposes of subparagraph 3 of the first paragraph, the number of years in excess of an employee’s credited service referred to in that subparagraph are taken into account up to the number of years necessary so that the years of service used in computing the total pension do not exceed 38.

O.C. 960-2003, s. 8; O.C. 524-2009, s. 3; O.C. 376-2011, s. 3.

9. For the purposes of subparagraphs 1 to 3 of the first paragraph of section 8, the average pensionable salary is established in accordance with sections 50.3 and 53.1 to 53.20 of the Act, subject to the following modifications:

(1)  subparagraph 1 of the first paragraph of section 50.2 of the Act does not apply;

(2)  a reference to subparagraph 2 of the first paragraph of section 50.2 of the Act must be read as a reference to the first paragraph of section 8;

(3)  subparagraph 1 of the first paragraph of section 53.1 of the Act does not apply;

(4)  a reference to the first paragraph of section 53.1 of the Act must be read as a reference to subparagraph 2 of the first paragraph of section 53.1;

(5)  a reference to the limit imposed by the first paragraph of section 30 of the Act must be read as a reference to the limit provided for in the third paragraph of this section and the terms and conditions of its application.

For the purposes of subparagraph 1 of the first paragraph, all the years and parts of a year of service credited must be counted, and service credited pursuant to sections 123, 125 and 126 of the Act may not be counted in respect of service credited prior to 1 January 1992.

In addition, for the purposes of the first paragraph, an average pensionable salary is computed for each portion of the amount referred to in subparagraphs 1 and 3 of the first paragraph of section 8. The average pensionable salary is computed from the annualized pensionable salaries that must be established, where applicable, as if each rate referred to in those subparagraphs applied in respect of all years of service, without exceeding the pensionable salary necessary to reach the defined benefit limit applicable for each year under the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) in respect of each portion of the amount. The average pensionable salary that must be used to compute each portion of the amount referred to in subparagraph 2 of that paragraph is the same as the average pensionable salary used to compute the portion of the amount referred to in subparagraph 1 of that paragraph in relation to the same years of service.

O.C. 960-2003, s. 9; O.C. 482-2005, s. 2; O.C. 524-2009, s. 4; O.C. 376-2011, s. 4.

10. Despite section 59 of the Act, a person entitled to a pension may request that it become payable only on a date indicated in the pension application where the date is later than the date that would otherwise have been determined by section 59.

A person who has reached age 69 may not request payment of his or her pension later than 31 December of the year of the person’s 69th birthday.

O.C. 960-2003, s. 10.

11. (Revoked).

O.C. 960-2003, s. 11; O.C. 524-2009, s. 5.

12. A pension granted pursuant to paragraph 4 of section 6 is, at the time prescribed under section 119 of the Act respecting the Québec Pension Plan (chapter R-9), indexed annually at the rate of increase of the Pension Index determined by that Act from 1 January following the date on which the employee ceased to be a member of the plan to 1  January of the year in which the pension is payable.

From 1 January following the date on which the pension is payable, the pension is indexed in accordance with the first paragraph of section 115 of the Act, and the first adjustment resulting from indexing shall be carried out in accordance with the first paragraph of section 116 of the Act.

O.C. 960-2003, s. 12.

13. The pension credit granted under a former pension plan is reduced, for its duration, by 0.25% per month, computed for each month comprised between the date on which the pension credit is payable to the employee and the nearest date on which the pension would otherwise have been granted to the employee without actuarial reduction pursuant to the provisions of the former pension plan, and taking into account paragraph 3 of section 6 if any of paragraphs 1 to 11 of Schedule II applies or applied to the employee.

O.C. 960-2003, s. 13.

14. From the day payment of the pension of a pensioner ceases by reason of death, or, as the case may be, from the day of the death of a person who is eligible for a pension or deferred pension under the second paragraph of section 15, the spouse is entitled to receive as pension 60% of the total pension the pensioner was receiving with the exception of, as the case may be, the amount provided for in section 105 of the Act or, as the case may be, would have otherwise been entitled to receive or would have been entitled to receive under the provisions of this Order in Council and, where applicable, under the plan, excluding the amount provided for in subparagraph 2 of the first paragraph of section 8, if applicable. The reduction provided for, for the purpose of coordinating the pension with the pension paid under the Act respecting the Québec Pension Plan (chapter R-9), applies in respect of the years or parts of a year of service credited under the former pension plan. Where section 28 applies, the spouse’s pension is established without counting the years or parts of a year of service credited under the former pension plan.

If a person to whom this Order in Council applies dies without a spouse entitled to the benefits provided for in the first paragraph while the person is a pensioner or eligible for a pension or deferred pension under the second paragraph of section 15 and before the pension has been paid to the person for at least 10 years, the person’s successors are entitled to receive payment of the current value of the total pension for the period comprised between the first day of the month following the person’s death and the day on which the 10-year period expires. The current value is established in accordance with the assumptions provided for in Schedule IV. Where section 28 applies, the current value is established without taking into account the current value of the pension resulting from the years or parts of a year of service credited under the former pension plan.

O.C. 960-2003, s. 14; O.C. 524-2009, s. 6.

14.1. For the purposes of the third paragraph of section 79.1 of the Act, the waiver by the spouse is cancelled only if, on the date the pensioner dies, no amount is payable to his or her successors pursuant to the second paragraph of section 14.

O.C. 524-2009, s. 7.

15. Where an employee who is not eligible for a pension under section 6 ceases to be a member of the plan, the employee is entitled to receive a deferred pension payable from the nearest date on which the employee would have been entitled to the pension under paragraph 1 or 3 of that section, taking into account only the years of service credited or counted at the time the employee ceases to be a member.

The person may also be entitled to such pension when the person reaches 50 years of age. In such a case, the pension is payable to the person from the date of receipt of the person’s application by the Commission or from any other later date stipulated to that effect in the person’s application. The amount of the pension is reduced, for its duration, by 0.25% per month, computed for each month comprised between the date on which it is payable and the nearest date on which it would otherwise have been granted under paragraph 1 or 3 of section 6, taking into account only the number of years of service at the time the person ceases to be a member of the plan and adding to it, if applicable, the additional reduction provided for in subparagraph 2 of the first paragraph of section 8.

O.C. 960-2003, s. 15.

16. Where an employee belongs to one of the classes designated in Schedule III or belongs to such a class while this Order in Council applies to the employee, and the employee ceases to be a member of the plan, the employee may, instead of receiving the total pension or deferred pension payable in accordance with the first paragraph of section 15, elect for a transfer into a locked-in retirement account within the meaning of section 29 of the Regulation respecting supplemental pension plans (O.C. 1158-90, 90-08-08)) or, if the employee has fewer than 2 years of service, into a registered retirement savings plan, of the greater of

(1)  the actuarial value of the total pension, including any pension credit established at the date on which the employee ceases to be a member, in accordance with the actuarial method and assumptions provided for in Schedule V, without taking into account the years of service added pursuant to section 22; and

(2)  the total of the contributions with interest accrued, if any, in accordance with the plan, the former pension plan or the Government and Public Employees Retirement Plan until that date.

The amount withheld pursuant to the first paragraph bears interest, compounded annually, at the rates in Schedule VII to the Act, from the first day of the month following the month in which the employee ceases to be a member of the plan until the date on which the application is received at the Commission, and at the rate in Schedule VIII to the Act from the day following that latter date until the end of the month in which the transfer is carried out.

The amount withheld pursuant to the first paragraph may not exceed the limit established under the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) as if the transfer were carried out on the date on which the employee ceased to be a member of the plan. In addition, the amount transferable pursuant to the first and second paragraphs may not exceed the limit established for that purpose under that Act. Where applicable, any amount that cannot be transferred into a locked-in retirement account or into a registered retirement savings plan is reimbursed to the employee. In the event of death, the amount transferable and any amount that would have been reimbursed to the employee are paid to the spouse or, if there is no spouse, to the successors.

The transfer and, where applicable, the reimbursement provided for in this section give entitlement to the payment of any other benefit payable under this Order in Council, the plan or the Government and Public Employees Retirement Plan.

For the purposes of the first paragraph, contributions include the amounts referred to in section 73 of the Act and the total of those contributions is established taking into account the second paragraph of section 77 and section 79 of the Act. In addition, in the case where section 140 of the Act applies, contributions and the actuarial value of the pension that relate to the years and parts of a year of service credited under sections 126, 130 and 139 of the Act are excluded. Contributions also include the amounts that the employee paid or that were transferred to the Government and Public Employees Retirement Plan and for which the employee has acquired a pension credit.

O.C. 960-2003, s. 16; O.C. 725-2004, s. 1; O.C. 482-2005, s. 3.

17. Despite the fourth paragraph of section 16, an employee who has availed himself or herself of a provision permitting the transfer of the actuarial value of the benefits acquired under the plan pursuant to a provision made under section 23 of the Act or section 10.1 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10) as it read on 31 December 2000 is entitled to have credited or counted, in whole or in part, the years or parts of a year of service that had been credited or counted on his or her behalf before the date of the transfer. The employee’s former pension plan is the plan designated in Schedule I of which the employee was a member before this Order in Council or, as the case may be, Order in Council 245-92 dated 26 February 1992, as it read on 16 September 2003, applied for the first time to the employee.

To have the years or parts of a year of service credited or counted, an employee must pay, on the date on which the employee exercises that right, an amount equal to the amount that was transferred and, where applicable, reimbursed to the employee increased by interest compounded annually, at the rates in Schedule VII to the Act, from the date of the transfer and, where applicable, the reimbursement until the date of payment to the Commission.

Despite the second paragraph, the employee may pay part of the amount required to have the years or parts of a year of service credited. In that case, the employee must pay an amount at least equal to the amount that was transferred to the employee and those years and parts of a year of service are credited to the employee or counted commencing with the most recent service. Where applicable, the years and parts of a year of service that cannot be credited or counted for the purposes of the plan are added, solely for pension eligibility purposes, to the years and parts of a year of service credited to the employee or counted on the employee’s behalf under the plan.

Any amount paid to the Commission pursuant to the second or third paragraph shall be paid into the Consolidated Revenue Fund.

The first, second and third paragraphs apply, with the necessary modifications, only to the extent permitted under the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)).

O.C. 960-2003, s. 17; O.C. 725-2004, s. 2; O.C. 482-2005, s. 4.

18. A pensioner whose pension is payable under this Order in Council and who holds pensionable employment or again holds pensionable employment under the plan, or a pensioner under a former pension plan who holds such employment while belonging to one of the classes of employees designated in Schedule II becomes, despite section 4 of the Act, an employee to whom the plan applies if the employee elects to be a member of the plan. The pensioner is subject to this Order in Council for as long as the pensioner holds employment under the plan but the pensioner may not avail himself or herself of section 16.

The election applies and the pensioner’s pension is cancelled from the date on which the Commission receives from the pensioner a written notice to that effect or, retroactively, from the first day of the pensioner’s new employment if the pensioner remits to the Commission a total amount equal to the contribution the pensioner would have made had the pensioner been a member of the plan during that period, as well as the amount of pension that would have ceased to be paid for the period during which the pensioner held pensionable employment or again held pensionable employment. Those amounts bear interest, compounded annually, at the rates in Schedule VII to the Act, from the date on which the pensioner began to be a member of the plan until the date on which the notice is received by the Commission.

In the case of a pensioner of the Government and Public Employees Retirement Plan, the Teachers Pension Plan, the Civil Service Superannuation Plan and the Pension Plan of Certain Teachers who made the election under the first paragraph, the years or parts of a year of service that had been credited or counted under the plan are credited or counted for pension purposes under the plan, and the third paragraph of section 180 of the Act applies with the necessary modifications.

O.C. 960-2003, s. 18; O.C. 482-2005, s. 5.

19. The pension of a pensioner who elected to be a member of the plan pursuant to the first paragraph of section 18 is recomputed at the time the pensioner once again ceases to be a member in accordance with

(1)  sections 8 to 10, for the part attributable to service credited to the plan while this Order in Council applied to the pensioner; and

(2)  the provisions of the former pension plan, applying section 27 or section 22 of Order in Council 245-92 dated 26 February 1992 as it read at the time of the person’s retirement, for the part attributable to service credited under that pension plan.

If the pension that is cancelled pursuant to the second paragraph of section 18 was granted with actuarial reduction, each part of the reduced pension that is recomputed is reduced, where applicable, by 0.25% multiplied by the number of months representing the difference between the number of months that applied for the purpose of computing the actuarial reduction and the number of months comprised between the date on which the person became a member of the plan and the date on which the person ceased to be a member of the plan.

The second paragraph applies within the limits permitted under the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), taking into account the amount setting off the actuarial reduction and that is added to the pension pursuant to section 215.11.17 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10).

Average pensionable salaries selected to recompute, pursuant to the first paragraph, each part of the pension related to the years prior to 2010 may not be smaller than the average pensionable salaries that had been selected to compute the total pension that was paid immediately before the return to work.

O.C. 960-2003, s. 19; O.C. 482-2005, s. 6; O.C. 524-2009, s. 8.

20. The payment of the pension credit of a pensioner who elected to be a member of the plan pursuant to the first paragraph of section 18 ceases to be made for the period during which the pensioner is a member of the plan, and the second paragraph of that section applies with the necessary modifications in respect of any amount of pension credit which must be remitted to the Commission. The pension credit becomes payable again on the day that follows the day on which the pensioner ceases to be a member of the plan, and the actuarial reduction that applied thereto, where applicable, is recomputed in accordance with the second paragraph of section 19, with the necessary modifications.

O.C. 960-2003, s. 20.

21. Where a pensioner elects not to be a member of the plan, the pensioner continues to receive his or her total pension and, where applicable, his or her pension credit.

O.C. 960-2003, s. 21.

CHAPTER III MISCELLANEOUS

22. An employee who, on 31 December 1991, was a member of the Civil Service Superannuation Plan, is not a pensioner under that pension plan, and held employment referred to in Schedule III to the Act respecting the Civil Service Superannuation Plan (chapter R-12) for one or more periods totalling not less than 5 years or employment referred to in that Schedule while the employee held the employment, is entitled, from that date, to have 10 years added to the number of years of service credited to the employee under that pension plan and transferred to the plan in accordance with section 139 of the Act or section 98 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10).

Where the employee held such employment for one or more periods totalling less than 5 years on 31 December 1991, the employee is entitled, from that date, to have added the number of years or parts of a year of service obtained by multiplying 10 years by the fraction that the number of years or parts of a year during which the employee held such employment up to that date is of 5 years.

The provisions of the Civil Service Superannuation Plan apply in respect of the years of service added under the first and second paragraphs. However, the years of service are taken into account, subject to section 5, only for the purpose of computing the total pension and may not enable an employee to have more than 35 years of service credited for the purpose of computing total pension.

O.C. 960-2003, s. 22.

23. Where an employee ceases to be a member of the plan, is or was an administrator of state I and held the office of secretary-general of the Conseil exécutif, associate secretary-general of the Conseil exécutif with the rank and privileges of a deputy minister in accordance with section 10 of the Executive Power Act (chapter E-18), executive assistant to the Premier, secretary of the Conseil du trésor, or deputy minister or chair of the Office des ressources humaines, the employee is entitled, from 31 December 1991, to have a number corresponding to 0.5 months for each month during which the employee held any of such offices before 1 January 1992, up to 5 years, added to the years of age and years of service credited to the plan on that date. That number is, to the extent that it is added to the years of service, deemed to be service credited after 30 June 1982, and section 57 of the Act applies taking into account that number, except to the extent that it is added to the age of the employee.

From 1 April 1984, the office must be held as administrator of state I.

For the purposes of this section, an employee who was a member of the Teachers Pension Plan or of the Civil Service Superannuation Plan on the day preceding the day on which this Order in Council became applicable to the employee is deemed to have elected to be a member of the plan on 31 December 1991 in accordance with the terms and conditions prescribed in Order in Council 1609-90 dated 21 November 1990.

O.C. 960-2003, s. 23.

24. An employee who is entitled to both the benefit under section 22 and the benefit under section 23 is granted the most advantageous of the two at the time the total pension is computed.

O.C. 960-2003, s. 24.

25. Every person referred to in clauses a to d of subparagraph 2 of the first paragraph of section 8 may have credited the years or parts of a year of service during which the plan was not applicable to the employee according to the terms and conditions set out in the second and third paragraphs of section 39 or section 40 of the Act and section 201 of the Act applies.

The part of the pension pertaining to the years or parts of a year of service credited is computed in accordance with subdivisions 2 and 2.1 of Division I of Chapter IV of the Act. The part of the pension pertaining to the years or parts of a year of service subsequent to 31 December 1991 during which the person belonged to one of the classes of employees designated in Schedule II is computed in accordance with section 8.

O.C. 960-2003, s. 25; O.C. 482-2005, s. 7; O.C. 524-2009, s. 9.

26. A person to whom a pension is payable under this Order in Council shall receive the amount of pension arising from the years and parts of a year of service credited under the former pension plan. The amount of the pension, computed in accordance with the provisions of the pension plan and section 27, is reduced by 0.25% per month, computed for each month comprised between the date on which the pension becomes payable and the nearest date on which it would otherwise have been granted without actuarial reduction under the pension plan or, if any of paragraphs 1 to 11 of Schedule II applies or applied to the person, under paragraph 3 of section 6. For the purpose of computing the reduction, all years of service counted or credited to the person at the time the person ceases to be a member of the plan must be taken into account.

However, for the purposes of the first paragraph, where the person benefits from the provisions of section 23, the amount of the pension or deferred pension payable under the former pension plan is reduced by the lesser of

(1)  the amount determined under the first paragraph, without adding the benefit provided for in section 23 to the person’s age and years of service; and

(2)  the amount provided for in the second paragraph of section 7.

For the purposes of the first paragraph and, where applicable, for the purposes of the provisions to which the second paragraph refers, if the person was entitled to a pension under section 15, the amount of the reduction is computed according to the number of months comprised between the date on which the amount of the pension is payable to the person and the date on which it would otherwise have been granted to the person under the former pension plan or, if any of paragraphs 1 to 11 of Schedule II applies or applied to the person, under paragraph 3 of section 6.

O.C. 960-2003, s. 26.

27. For the purpose of computing the amount of the pension payable under section 26, the average pensionable salary is computed in accordance with the provisions of the former pension plan, using the annualized pensionable salary of all years of service, including years credited under the plan while this Order in Council applies to the person and, if any of paragraphs 1 to 11 of Schedule II applies or applied to the person, applying paragraph 1 of section 50.3 of the Act. In addition, each annualized pensionable salary must be established, where applicable, as if the rate of acquisition of the pension of the former pension plan applied in respect of all years of service, without exceeding the annualized pensionable salary necessary to reach the defined benefit limit applicable for each year under the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)).

O.C. 960-2003, s. 27; O.C. 482-2005, s. 8; O.C. 524-2009, s. 10.

28. In the case of a total and permanent disability or in the case of physical or mental disability, death or cessation of employment or where the employee ceases to be a member of the plan, the provisions of the former pension plan which concern entitlement or computation of a pension continue to apply in respect of the years or parts of a year of service credited under the former pension plan.

In the case of death, those provisions continue to apply only if they are more advantageous than those of the plan. The same applies in the case of a total and permanent disability or in the case of physical or mental disability, but only until a pension becomes payable under the plan.

If the person referred to in the first paragraph was a member of the Civil Service Superannuation Plan or the Teachers Pension Plan on the day preceding the day on which this Order in Council became applicable to the person, the average pensionable salary provided for in section 27 is used for the purpose of computing the pension.

O.C. 960-2003, s. 28.

29. Where a person who was a member of the Teachers Pension Plan or of the Civil Service Superannuation Plan on the day preceding the day on which this Order in Council became applicable to the person dies at 50 years of age or older, the person’s spouse may renounce the amount of the pension computed in accordance with section 28 in order to receive a single pension payment computed in accordance with section 14. However, for the purposes of that computation, the years of service credited under the Teachers Pension Plan or the Civil Service Superannuation Plan are deemed to have been credited under the plan.

O.C. 960-2003, s. 29.

30. The provisions of the Teachers Pension Plan and the Civil Service Superannuation Plan which concern the redemption of years or parts of a year of service apply, as they read on the date of receipt of the application for redemption, to every employee who was a member of either plan and who is not a pensioner under that plan.

O.C. 960-2003, s. 30; O.C. 482-2005, s. 9.

31. Section 18.1 of the Act applies to an employee subject to this Order in Council from the date on which the Order in Council applies to the employee, with the necessary modifications.

O.C. 960-2003, s. 31.

32. The first paragraph of section 139 of the Act also applies to an employee who has ceased to be a member of the Teachers Pension Plan or the Civil Service Superannuation Plan before the day preceding the day on which the this Order in Council applies to the employee.

O.C. 960-2003, s. 32.

CHAPTER IV FINANCIAL

33. The Commission shall pay into the Consolidated Revenue Fund, in respect of employees subject to this Order in Council, the funds, contributions or contributory amounts referred to in subparagraphs 1 to 4 of the first paragraph of section 177 of the Act.

O.C. 960-2003, s. 33.

34. The sums necessary for the payments referred to in the first paragraph of section 180 of the Act and made in respect of a beneficiary or an employee subject to this Order in Council shall be taken out of the Consolidated Revenue Fund.

O.C. 960-2003, s. 34.

35. When an employee becomes subject to this Order in Council, the Commission shall transfer to the Consolidated Revenue Fund the sums paid into the employees’ contribution fund at the Caisse de dépôt et placement du Québec in respect of that employee, in accordance with subparagraphs 1, 2 and 4 of the first paragraph of section 177 of the Act or, where applicable, subparagraphs 1, 2 and 4 of the first paragraph of section 127 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10), except contributions or funds paid or transferred to purchase pension credits pursuant to that Act.

The sums transferred under the first paragraph include the interest accrued until the date of the transfer.

O.C. 960-2003, s. 35.

36. The actuarial value of the difference between the amount of the reduction computed pursuant to sections 13 and 20 and the amount of the reduction which would otherwise have been applied under section 92 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10) or under section 3 of the Regulation respecting pension credits obtained pursuant to sections 101 and 158 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10, r. 11), in respect of the pension credits received under that Act, shall be funded out of the Consolidated Revenue Fund.

The actuarial value is computed on the date on which the pension credit is granted to the employee, taking into account the employee’s age on that date. It is computed, for pension credits acquired under section 95 of that Act, according to the table in Schedule IV.3 to the Regulation under the Act respecting the Government and Public Employees Retirement Plan (chapter R-10, r. 2) and, for the other pension credits, according to the method and actuarial assumptions provided for in Schedule I to that Regulation.

O.C. 960-2003, s. 36; O.C. 1235-2005, s. 1.

36.1. For the purposes of the fifth paragraph of section 23 of the Act, the actuarial values of the benefits are established using the method and actuarial assumptions provided for in section 10.1 of the Regulation under the Act respecting the Pension Plan of Management Personnel (chapter R-12.1, r. 1), subject to the following:

(1)  if the employee or the person is less than 3 years from retirement, the pensionable salary for the retirement plans concerned by the transfer and that are prior to the year in which it becomes covered by this Order must also be taken into account in determining average pensionable salary;

(2)  taking into account the following retirement rate for the employee or person as follows:

For the Pension Plan of Peace Officers in Correctional Services:

For an employee attaining or who would attain 32 years of service before age 50:

— 100% at age 50

For an employee attaining or who would attain 30 years of service before age 60:

— 60% at 30 years of service

— 100% (of the remaining 40%) at 32 years of service

For an employee who would attain 30 years of service at age 60 or after:

— 60% at age 60

— 100% (of the remaining 40%) at 32 years of service or at age 65 if the employee attains that age without attaining 32 years of service

For an employee with at the least 32 years of service at the time of transfer:

— 100% 6 months after transfer

For an employee who is 60 years of age or older at the time of transfer:

— 60% 6 months after the transfer

— 100% (of the remaining 40%) at 32 years of service or at age 65 if the employee attains that age without attaining 32 years of service

If the first 2 criteria apply, the assumption retained is that of the first criteria attained.

If the last 2 criteria apply, the assumption retained is that of 32 years of service.

For the Pension Plan of Management Personnel:

For an employee attaining or who would attain 35 years of service before age 55:

— 100% at age 55

For an employee whose age and years of service add up or would add up to 88 or more “criteria 88” at age 55 or older but before age 60:

— 60% at criteria 88

— 100% (of the remaining 40%) at 35 years of service or at age 65 if the employee attains that age without attaining 35 years of service

For an employee who has fewer than 28 years of service at age 60:

— 60% at age 60

— 100% of the remaining 40%) at age 65

For an employee who has at least 35 years of service at the time of transfer:

— 100% 6 months after the transfer

For an employee who is 60 years of age or older at the time of transfer:

— 60% 6 months after the transfer

— 100% (of the remaining 40%) at 35 years of service or age 65 if the employee attains that age without attaining 35 years of service

If the last 2 criteria apply, the assumption retained is that of the criteria of 35 years of service.

O.C. 1235-2005, s. 2.

37. The actuarial value of the sums transferred under section 203 of the Act must be established in accordance with the actuarial assumptions and method prescribed in Schedule V.

O.C. 960-2003, s. 37.

CHAPTER V TRANSITIONAL AND FINAL

38. The persons designated by the Government under paragraph 14 of Schedule II and paragraph 11 of Schedule III to Order in Council 245-92 dated 26 February 1992 as it read on 16 September 2003 are deemed to be designated under paragraph 14 of Schedule II and paragraph 11 of Schedule III to this Order in Council.

O.C. 960-2003, s. 38.

39. The provisions of the third paragraph of section 4 are applicable from 14 June 2002, having regard to the provisions of Order in Council 245-92 dated 26 February 1992 as it read on 16 September 2003.

The provisions in the first paragraph of section 25 pertaining to the credit of years or parts of a year of service are applicable from 1 July 2002, having regard to the provisions of the Order in Council referred to in the first paragraph of this section.

O.C. 960-2003, s. 39.

SCHEDULE I

(s. 1)

FORMER PENSION PLANS

(1) the following pension plans:

(a) the Pension Plan of Certain Teachers;

(b) (paragraph revoked);

(c) the Teachers Pension Plan;

(d) the Civil Service Superannuation Plan;

(e) the pension plans provided for in sections 9, 10 and 10.0.1 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10);

(2) the following pension plans:

(a) the Pension Plan of Management Personnel, in the case of an employee who was a member of that plan or of the Government and Public Employees Retirement Plan before this Order in Council became applicable to the employee;

(b) the Government and Public Employees Retirement Plan, in the case of a person who was a pensioner under the plan before this Order in Council became applicable to the person.

O.C. 960-2003, Sch. I; O.C. 482-2005, s. 10.

SCHEDULE II

(s. 2)

CLASSES OF EMPLOYEES

(1) the administrators of state;

(2) the persons appointed under section 57 of the Public Service Act (chapter F-3.1.1);

(3) the executive assistant to the Premier;

(4) the full-time chairs or presidents of government bodies or agencies who are appointed by the Government or whose appointment is ratified by the Government;

(5) the full-time chairs or presidents of government bodies or agencies who are appointed by resolution of the National Assembly and whose conditions of employment are fixed by the Government or by the National Assembly if its resolution so provides;

(6) the delegates general, delegates of Québec to foreign countries and heads of post at a Bureau du Québec in Canada;

(7) the persons who, by virtue of the prerogative of the Government or the National Assembly, perform executive duties on a full-time basis within a government institution other than a government body or agency, except the Public Protector and Deputy Public Protectors, if section 8 of the Public Protector Act (chapter P-32) applies to them;

(8) the vice-chairs or vice-presidents who are appointed by the Government or by resolution of the National Assembly or whose appointments are ratified by the Government and who hold, on a full-time basis, an office the salary level of which corresponds to class DM04 or higher in the pay structure, approved by the Government, of chief executive officers and members of bodies or agencies, within a body, an agency or institution referred to in paragraphs 4, 5 and 7;

(9) the Assistant Auditors General;

(10) the Secretary-General and Associate Secretaries-General of the National Assembly, if their conditions of employment so provide;

(11) any person who belonged to one of the classes of employees designated in paragraphs 1 and 10 and whose remuneration and conditions of employment are maintained by the Government;

(12) for the education sector, the directors general and the assistant directors general of the Commission scolaire de Montréal (CSDM), the Conseil scolaire de l’Île de Montréal (CSIM) and the English Montréal School Board (EMSB), as well as the directors general of Class 16 and higher classes of the other school boards;

(13) for the health and social services sector, the non-medical executives of Class 23 and higher classes, and the medical executives of Class C and higher classes of public institutions within the meaning of the Act respecting health services and social services (chapter S-4.2) and within the meaning of the Act respecting health services and social services for Cree Native persons (chapter S-5);

(14) all other persons employed by a government department, a public or parapublic body or agency or by a body or an agency designated by the Government, if the Government makes an order to that effect.

O.C. 960-2003, Sch. II; O.C. 482-2005, s. 11; O.C. 524-2009, s. 11; O.C. 376-2011, s. 5.

SCHEDULE III

(s. 16)

CLASSES OF EMPLOYEES DESIGNATED FOR THE PURPOSES OF THE TRANSFER INTO A LOCKED-IN RETIREMENTACCOUNT

(1) the administrators of state;

(2) the persons appointed under section 57 of the Public Service Act (chapter F-3.1.1);

(3) the executive assistant to the Premier;

(4) the full-time chairs or presidents of government bodies or agencies who are appointed by the Government or whose appointment is ratified by the Government;

(5) the full-time chairs or presidents of government bodies or agencies who are appointed by resolution of the National Assembly and whose conditions of employment are fixed by the Government or by the National Assembly if this Order in Council applies to them;

(6) the delegates general, delegates of Québec to foreign countries and heads of post at a Bureau du Québec in Canada;

(7) the persons who, by virtue of the prerogative of the Government or the National Assembly, perform executive duties on a full-time basis within a government institution other than a government body or agency;

(8) the vice-chairs or vice-presidents who are appointed by the Government or by resolution of the National Assembly or whose appointments are ratified by the Government and who hold, on a full-time basis, an office the salary level of which corresponds to class DM04 or higher in the pay structure, approved by the Government, of chief executive officers and members of bodies or agencies, within a body, an agency or institution referred to in paragraphs 4, 5 and 7;

(9) the Assistant Auditors General;

(10) the Secretary-General and Associate Secretaries-General of the National Assembly, if this Order in Council applies to them;

(11) all other persons employed by a government department, a public or parapublic body or agency or by a body or an agency designated by the Government, if the Government makes an order to that effect.

O.C. 960-2003, Sch. III; O.C. 524-2009, s. 11.

SCHEDULE IV

(s. 14)

ASSUMPTIONS

Actuarial assumptions

(1) Rate of interest:

For fully-indexed and non-indexed benefits:

The interest rates are those determined in accordance with 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, hereafter called 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%.

(2) 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       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

   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   

O.C. 960-2003, Sch. IV; O.C. 1235-2005, s. 3.

SCHEDULE V

(ss. 16 and 37)

ASSUMPTIONS AND ACTUARIAL METHOD

Actuarial method

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

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       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

    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) Rate of increase of the MPE:

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

(7) 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.

Age Annual rate of increase

18-35 years 5.75%

36-50 years 2.50%

51 years and over 0.88%

(8) Retirement rate:

For an employee whose age                         - 60% at criteria 85
and years of service add up 
or would add up to 85 or more 
(criteria 85) at age 55 or older 
but before age 60
                                                  - 100% (of the remaining 40%)
                                                    at 35 years of service or at 
                                                    age 65 if the employee attains
                                                    that age without attaining 
                                                    35 years of service

For an employee who                               - 60% at age 60
has fewer than 25 years 
of service at age 60 or older
                                                  - 100% (of the remaining 40%)
                                                    at age 65

For an employee who                               - 100% 6 months after the
has at least 35 years of                            transfer
service at the time of transfer

For an employee who is                            - 60% 6 months after the 
60 years of age or older at                         transfer
the time of transfer
                                                  - 100% (of the remaining 40%)
                                                    at 35 years of service or age 65
                                                    if the employee attains that age
                                                    without attaining 35 years 
                                                    of service        

If the last 2 criteria apply, the assumption retained is that of the criteria of 35 years of service.

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

_____________________________________

        Age           Male   Female  
_____________________________________

  18 - 64 years old    85%     65%    
_____________________________________

  65 - 79 years old    80%     30%    
_____________________________________

 80 - 109 years old    60%     10%    
_____________________________________

   110 years old        0%      0%    
_____________________________________        

(10) Age difference between spouses at retirement:

— 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.

For the purposes of section 16 of the Act, the actuarial assumptions apply taking into account the rules in Part D of Section 3 of the Standard of Practice for Determining Pension Commuted Values confirmed by the Canadian Institute of Actuaries on 15 June 2004, hereafter called the “CIA Standard”.

O.C. 960-2003, Sch. V; O.C. 1235-2005, s. 4.

REFERENCES

O.C. 960-2003, 2003 G.O. 2, 2963

O.C. 725-2004, 2004 G.O. 2, 2459

O.C. 482-2005, 2005 G.O. 2, 1653

O.C. 1235-2005, 2005 G.O. 2, 5519

O.C. 524-2009, 2009 G.O. 2, 1697

O.C. 376-2011, 2011 G.O. 2, 967