R-15.1 - Supplemental Pension Plans Act

Section 138 Disposition versions

2016-01-01

138. The amortization period for an unfunded actuarial liability begins at the date of the actuarial valuation in which the unfunded liability is determined. It expires at the end of a fiscal year of the pension plan that ends

(1)  no later than 10 years after the date of the valuation, if the liability is a technical actuarial deficiency;

(2)  no later than 10 years after the date of the valuation, if the liability is a stabilization actuarial deficiency; or

(3)  no later than five years after the date of the valuation, if the liability is an improvement unfunded actuarial liability.

1989, c. 38, s. 138; 2000, c. 41, s. 81; 2006, c. 42, s. 11; 2015, c. 29, s. 24.

2010-01-01

138. The current service contribution must be equal to or greater than the value of the obligations arising from the pension plan in respect of credited service completed during the year or the part of a year referred to in paragraph 1 of section 137. The contribution may, however, be less if it is determined on the basis of a funding method that maintains the plan fully or partially funded at all times.

1989, c. 38, s. 138; 2000, c. 41, s. 81; 2006, c. 42, s. 11.

2001-01-01

138. For the purpose of determining the solvency of a pension plan, the assets of the plan shall be established according to their liquidation value or an estimate thereof 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 shall be equal to the value of the obligations arising from the plan assuming that the plan is terminated on that date. Where the plan provides expressly that the amount of a member’s pension must be established with reference to the progression of the member’s remuneration after termination, the value of the pension must be established assuming that the plan is terminated in such circumstances that the benefits accrued to the member in respect of the pension must be estimated at their maximum value. Where the plan provides for other obligations the value of which depends on the circumstances in which the plan is terminated, they must be included in the liabilities to the extent provided in the scenario used for that purpose by the actuary in charge of the valuation.

If the liabilities established pursuant to the second paragraph are less than the value of the obligations arising from the pension plan assuming that the plan is terminated on the valuation date in such circumstances that the benefits accrued to the members must be estimated at their maximum value, the valuation report must also indicate the latter value.

The values referred to in the second and third paragraphs shall be 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 insured at the valuation date, those values shall be determined according to an estimation of the premium that an insurer would charge to insure the pensions in the 30-day period following the valuation date.

Where, at the valuation date, the liabilities of the pension plan on a funding basis include obligations arising from an amendment whose effective date is subsequent to the date of the actuarial valuation but prior to the date referred to in paragraph 3 of section 118, the liabilities on a solvency basis shall be computed on the assumption that the effective date of the amendment is the valuation date. In addition, the degree of solvency determined on the basis of the liabilities so calculated shall apply, for the purpose of paying out the value of benefits to members and beneficiaries under section 142, from the effective date of the amendment or, where there is more than one effective date, from the first thereof.

1989, c. 38, s. 138; 2000, c. 41, s. 81.

1999-04-01

138. For the purpose of determining the solvency of a pension plan at the date of the actuarial valuation, the assets of the plan shall be determined according to their market value at that date or, if such value is not determinable, according to the liquidation value or an estimate thereof.

The liabilities of the pension plan shall be equal to the value of the obligations arising from the plan, assuming that the plan is totally terminated on that date.

The method used to evaluate the assets and liabilities shall provide for the stabilization of short-term fluctuations in the value used to determine the assets or in the interest rate used to determine the liabilities.

1989, c. 38, s. 138.