R-15.1 - Supplemental Pension Plans Act

Section 60.1 Disposition versions

2016-01-01

60.1. (Repealed).

2000, c. 41, s. 32; 2015, c. 29, s. 15.

2001-01-01

60.1. A member who ceases to be an active member is entitled to an additional pension benefit determined as prescribed by regulation and equal to or greater than the amount by which A exceeds B, where

“A” is the value of the pension determined pursuant to the second paragraph and of related benefits, increased by the member contributions which, assuming the member had been entitled to such a pension under the plan, would be above the limit set in section 60; and

“B” is equal to the value of the pension benefit to which the member would be entitled without reference to the second paragraph and of related benefits, increased by the member contributions which are above the limit set in section 60.

For the purpose of calculating the additional pension benefit, the value of a pension having the same characteristics as the normal pension, except the pension supplement provided by the pension plan for the payment of a minimum pension, shall be determined, based on the assumption that payment of the pension begins at the normal retirement age and allowing for adjustment of the pension between the date the member ceases to be an active member until the date the member reaches the age that is 10 years under normal retirement age. The adjustment shall be the percentage corresponding to 50% of the change in the seasonally unadjusted All-Items Consumer Price Index for Canada published by Statistics Canada between the month the member ceases to be an active member and the month the adjustment ceases; however, the annualized adjustment rate cannot be less than 0% or greater than 2%.

If the member dies before becoming entitled to a pension, the value of the additional pension benefit shall be determined based on the assumption that the member ceased to be an active member on the day of the member’s death, for a reason other than death.

This section does not apply to benefits referred to in subparagraphs 1 to 6 of the second paragraph of section 60.

2000, c. 41, s. 32.