30.1. The actuarial values of the benefits referred to in sections 109.2 and 109.8 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 109.2, the pensionable salary of the retirement 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 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) 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
0-4 years 2.5%
5-15 years 0.4%
16 years and over 0.2%
For the Government and Public Employees Retirement Plan, the Teachers Pension Plan and the Civil Service Superannuation Plan
Years of service Annual rate
of increase
0-10 years 2.50%
11 - 20 years 0.75%
21 years and over 0.25%
For the Pension Plan of the members of the Sûreté du Québec
Years of service Annual rate
of increase
0 year 0%
1 year 6.35%
2 years 11.80%
3 years 12.90%
4 years 9.80%
5 years 8.70%
6 years 8.00%
7 years 4.50%
8-13 years 0.45%
14 years 2.45%
15-20 years 0.45%
21 years 2.45%
22 years or more 0.45%
(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 109.2 of the Act, the retirement age is the age on the date on which membership ceases as determined pursuant to section 8.7 or 8.8 of the Act respecting the Pension Plan of Peace Officers in Correctional Services (chapter R-9.2).
For the purposes of section 109.8 of the Act, retirement is determined according to the following retirement rates:
For the Government and Public Employees Retirement Plan:
For an employee who 100% at age 55
would attain 35 years
of service before attaining
age 55
For an employee who 100% at 35 years of
would attain 35 years service
of service at age 55 or
older but before age 60
For an employee who 60% at age 60
would attain age 60
without having more
than 35 years of service
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
For an employee who 100% 6 months after
has at least 35 years of the transfer
service at the time of
transfer
For an employee who is 60% 6 months after
60 years of age or older the transfer
at 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.
For the Pension Plan of the members of the Sûreté du Québec:
For an employee whose 20% at criteria 75
age and years of service
would add up to 75
(criteria 75) at age 50 or
older but before age 60
100% (of the remaining 80%)
at 25 years of service or
age 60 if the employee
attains that age without
attaining 25 years of
service
For an employee who 20% at 25 years of
would attain 25 years service
of service before age 50
100% (of the remaining 80%)
at criteria 75
For an employee who 100% at age 60
would attain age 60
without having more
than 15 years of service
For an employee whose 20% 6 months after
age and years of service the transfer
at the time of transfer
add up to 75 or more while
the employee is less than
60 years of age and has less
than 25 years of service
100% (of the remaining 80%)
at 25 years of service or
age 60 if the employee
attains that age without
attaining 25 years of service
For an employee who 20% 6 months after
has 25 years of service the transfer
or more at the time of
transfer, without criteria 75
100% (of the remaining 80%)
at criteria 75
For an employee who 100% 6 months after
is 60 years of age or older the transfer
at the time of transfer or
for an employee whose age
or years of service add up
to 75 or more with a
minimum of 25 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.