R-10, r. 10 - Pension plan for federal employees transferred to employment with the Gouvernement du Québec

Section 36 Disposition versions

2014-01-01

36. An employer must deduct from the pensionable salary paid by the employer to the employee and, where applicable, to a pensioner or a person who ceased to participate in the plan, in the case of the pensionable salary referred to in section 14.1 or in the case of a lump sum referred to in section 16 of the provincial Act, an annual amount established on the basis of the following contribution rates:

(1)  7.5% up to the part of the salary corresponding to the personal exemption within the meaning of the Act respecting the Québec Pension Plan (chapter R-9);

(2)  5.2% on the part of the salary in excess of the personal exemption up to the maximum pensionable earnings within the meaning of that Act;

(3)  7.5% on the part of the employee’s salary in excess of the maximum pensionable earnings.

The contribution rates provided for in the first paragraph may vary in relation to the plan’s capitalization ratio established from the actuarial valuation referred to in section 93 or from an update of it. That ratio, expressed as a percentage, is equal to the ratio between the market value of the plan’s assets and its actuarial liabilities determined by taking into account the margin for adverse deviation corresponding to a 0.50% reduction of the expected future return assumption.

Each of the contribution rates provided for in the first paragraph is equal to 0% if the plan’s capitalization ratio is equal to or greater than 120%. They are respectively reduced by 50% if that ratio is equal to or greater than 110% but less than 120%. The contribution rates provided for in the first paragraph remain applicable if that ratio is equal to or greater than 100% but less than 110%.

If the plan’s capitalization ratio is less than 100%, a second capitalization ratio is to be established by not taking into account the 0.50% margin for adverse deviation. In that case, if the second ratio is equal to or greater than 100%, the rates provided for in the first paragraph remain applicable. If the second ratio is less than 100%, each of the contribution rates provided for in the first paragraph is increased by 0.20% for each 1% reduction between 100% and the second ratio, up to 9.7% for the rates respectively provided for in subparagraphs 1 and 3 of the first paragraph and up to 7.4% for the rate provided for in subparagraph 2 of the first paragraph, as shown in Schedule I.

The contribution rates provided for in the first paragraph may increased or reduced only in accordance with this section, unless a modification resulting in an additional cost is made to the plan.

For the purposes of this section, a capitalization ratio including a percentage fraction is reduced to the nearest whole percentage if that fraction is equal to or greater than 0.50%; if that fraction percentage is greater than 0.50%, the capitalization ratio then considered is to be increased to the nearest whole percentage.

O.C. 430-93, s. 36; T.B. 208552, s. 5; T.B. 213377, s. 1.

2012-09-01

36. The employee contribution rate shall equal:

(1)  7.5%, to a maximum of the portion of salary corresponding to the personal exemption within the meaning of the Act respecting the Québec Pension Plan (chapter R-9);

(2)  5.2% of the portion of salary that exceeds the personal exemption, up to the maximum allowable earnings within the meaning of that Act;

(3)  7.5% of the portion of salary that exceeds the maximum allowable earnings.

The rate of contributions by employees governed by this plan shall not exceed the rate described in the first paragraph, unless an amendment resulting in a higher cost is made to this plan.

The employer must deduct those contributions from the salary paid to employees and, where applicable, to a pensioner or a person who ceased to participate in the plan, in the case of the salary referred to in section 14.1 or section 16 of the provincial Act.

O.C. 430-93, s. 36; T.B. 208552, s. 5.