R-15.1 - Supplemental Pension Plans Act

Section 123 Disposition versions

2016-01-01

123. For the purpose of determining the funding level of a pension plan at the date of an actuarial valuation, the plan’s liabilities must be equal to the value of the obligations arising from the plan taking into account the service credited to the members.

A pension plan is funded if, at the date of the actuarial valuation, the plan’s assets are equal to or greater than its liabilities.

1989, c. 38, s. 123; 2006, c. 42, s. 11; 2008, c. 21, s. 33; 2015, c. 29, s. 24.

2010-01-01

123. For the purpose of determining the solvency of a pension plan, the assets of the plan must be established according to their liquidation value or an estimate of that value and be reduced by the estimated amount of the administration costs to be paid out of the pension fund assuming that the pension plan is terminated on the valuation date.

The liabilities of the pension plan must be equal to the sum of the following values:

(1)  the value of the obligations arising from the plan, assuming that the plan is terminated on that date; and

(2)  the value of the obligations arising from any amendment to the plan considered for the first time at the date of the valuation, such value having been computed on the assumption that the effective date of the amendment is the valuation date.

A letter of credit provided by the employer under section 42.1 forms part of the assets of the plan for the purpose of determining its solvency. However, the amount of the letter, or the total amount of such letters, is taken into account for that purpose only up to 15% of the value of the liabilities of the plan.

1989, c. 38, s. 123; 2006, c. 42, s. 11; 2008, c. 21, s. 33.

1999-04-01

123. In addition to the other elements prescribed by regulation, an actuarial valuation shall determine

(1)  the current service contribution, expressed in currency or as a rate or percentage of the remuneration of active members estimated in the valuation, for each fiscal year of the pension plan between the date of that valuation and the date of the next actuarial valuation required under paragraph 3 of section 118;

(2)  the value of the assets of the pension plan and of the obligations arising from the plan in respect of service credited to the members to the date of valuation.

1989, c. 38, s. 123.