T-16, r. 4 - Regulation respecting the partition and assignment of benefits accrued under the pension plans of judges of the Court of Québec, judges of certain municipal courts and presiding justices of the peace

Section 8 Disposition versions

2012-09-01

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

The actuarial value of the benefits is determined by using the “distribution of benefits” method and corresponds to the sum of 80% of the actuarial value determined for a male and of 20% of the actuarial value determined for a female.

The actuarial value is also determined by using the following actuarial assumptions:

(1)  mortality rates:

The mortality rates are those determined in accordance with the CIA Standards.

(2)  interest rates:

(a)  the interest rates for fully-indexed benefits or non-indexed benefits are those determined in accordance with 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 in accordance with the CIA Standards.

(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 standards;

(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 for in subparagraph a over 3% or to half of the indexing rate computed in the manner described 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:

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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 PI 50%,        rate
                     formula                            min. PI-3%
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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)  Turnover rate: Nil

(5)  Disability rate: Nil

(6)  Proportion of married persons at death:

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

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

(b)  the female spouse of the member is assumed to be 6 years younger.

O.C. 994-2008, s. 8; O.C. 1321-2011, s. 1.