R-16, r. 1 - Regulation respecting interest applicable under the general retirement plan for the mayors and councillors of municipalities

Updated to 1 January 2016

This document has official status.

chapter R-16, r. 1

Regulation respecting interest applicable under the general retirement plan for the mayors and councillors of municipalities

Act respecting retirement plans for the mayors and councillors of municipalities

(chapter R-16, s. 42).

DIVISION I APPLICATION

1. For the purposes of subparagraph a of the first paragraph of section 42 of the Act respecting retirement plans for the mayors and councillors of municipalities (chapter R-16), the rates of interest are determined for each period in accordance with Division II and according to the periods in Division III. The interest is computed in accordance with the rules set out in the latter Division.

O.C. 21-2007, s. 1.

DIVISION II ESTABLISHMENT OF THE RATE OF INTEREST

§ 1 . — Rate of interest based on the rates of return of the pension fund of the Pension Plan of Elected Municipal Officers

2. The annual rate of interest in this subdivision is established as at 1 June of each year by computing 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 I.

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 for the specific fund of the pension plan established under the Act respecting the Pension Plan of Elected Municipal Officers (chapter R-9.3), after subtracting the management expenses.

O.C. 21-2007, s. 2.

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

3. The annual rate of interest in this subdivision is established as at 1 June of each year by computing the arithmetic mean, for the 12-month period ending on 31 December of the preceding year, of the nominal rates on Government of Canada marketable bonds (3-5 years) as compiled by Statistics Canada and published in the Bank of Canada’s Banking and Financing Statistics (CANSIM Series V122485).

O.C. 21-2007, s. 3.

DIVISION III COMPUTATION OF INTEREST

4. The amounts paid into the general plan bear interest, compounded annually, at the rate established each year as provided in section 2 as of the midpoint of the year in which they are paid to Retraite Québec until the date on which the refund application is received by Retraite Québec, at the rate established as provided in section 3 and in force on that date, as of the day following that date until the date on which the refund is made.

Despite the first paragraph, if the event giving entitlement to the refund is the death of the member, the period of application of section 3 begins on the day following the date of death and if the event is the death of the beneficiary or the surviving spouse, the period begins on the first day of the month following the date of death.

O.C. 21-2007, s. 4.

5. For the purposes of section 4, the expression “amounts paid” includes the member’s regular and additional contributions, the other amounts paid for redemption or transfer of past service, and the contributions of the municipality and the amounts the municipality paid for the redemption or transfer of past service.

O.C. 21-2007, s. 5.

6. This Regulation replaces the Regulation respecting the determination of the rate of interest applicable to the retirement plan for the mayors and councillors of municipalities (O.C. 1008-2005, 2005-10-26), and the Regulation respecting the terms and conditions of application of the rate of interest applicable to the amounts paid for participation in the general plan (R.R.Q., 1981, c. R-16, r. 4).

O.C. 21-2007, s. 6.

7. (Omitted).

O.C. 21-2007, s. 7.

SCHEDULE I

(s. 2)

COMPUTATION OF THE RATE OF INTEREST

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 is the rate of return for the year preceding the reference year

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

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

O.C. 21-2007, Sch. I.

REFERENCES

O.C. 21-2007, 2007 G.O. 2, 545

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