R-15.1 - Supplemental Pension Plans Act

Section 126 Disposition versions

2016-01-01

126. The funding method used in an actuarial valuation must be consistent with generally accepted actuarial principles and be based on the assumption that the pension plan is perpetual.

The actuarial assumptions and methods used to determine the funding level of a plan must be suited, in particular, to the type of plan concerned, its obligations and the position of the pension fund.

1989, c. 38, s. 126; 2006, c. 42, s. 11; 2015, c. 29, s. 24.

2010-01-01

126. The values referred to in the second paragraph of section 123 and in section 124 are determined by applying sections 211 and 212 and subparagraph 1 of the second paragraph of section 212.1, with the necessary modifications. In the case of pensions already in payment, inasmuch as they are not guaranteed by an insurer at the valuation date, those values must be determined according to an estimation of the premium that an insurer would charge to guarantee the pensions in the 30-day period following the valuation date.

1989, c. 38, s. 126; 2006, c. 42, s. 11.

1999-04-01

126. Unfunded actuarial liabilities include, for the purposes of this Act,

(1)  the initial unfunded actuarial liability, representing the amount to be funded to ensure that the plan is fully funded at the date on which it becomes effective;

(2)  any improvement unfunded actuarial liability, representing the amount to be funded as a result of an amendment to the plan which, when added to the balances of the other unfunded liabilities and the amount determined pursuant to subparagraph 4 of the second paragraph of section 137, would ensure that the plan is fully funded at the date on which the amendment becomes effective;

(3)  any technical actuarial deficiency, representing the amount to be funded to ensure that the plan is fully funded, and that is neither the balance of an initial or improvement actuarial unfunded liability, nor an unpaid contribution, nor the balance of an amount determined pursuant to subparagraph 4 of the second paragraph of section 137 or of a technical actuarial deficiency determined by a previous actuarial valuation.

1989, c. 38, s. 126.