R-26.2.1 - Act respecting the restructuring of university-sector defined benefit pension plans

Section 19 Disposition versions

2016-06-08

19. Any pension plan whose cost determined in the actuarial valuation as at 31 December 2015 exceeds 21% of the overall payroll of the active members or that maximum increased in accordance with the third paragraph must be restructured to reduce its cost, at that date, to a percentage equal to or less than 21% or than the maximum thus increased. The overall payroll must be established using the same method as the one used to determine the current service contribution in the last complete actuarial valuation of the plan at the end date of a fiscal year and for which the report has been sent to Retraite Québec.

The cost of the plan at 31 December 2015 is equal to the sum of the current service contribution and the amortization payment relating to any technical actuarial funding deficiency identified in the actuarial valuation as at 31 December 2015. For the purpose of establishing the cost, the technical actuarial funding deficiency may, if the parties so agree, be reduced by the value of a stabilization fund established before 1 January 2016.

If the average age of the active members within the meaning of section 36 of the Supplemental Pension Plans Act (chapter R-15.1) is over 45 on 31 December 2015, the maximum established under the first paragraph can be increased by 0.6% for each full year of deviation. In addition, a maximum increase of 0.5% is allowed if women make up more than 50% of the active members on that date. In the latter case, the report required under the second paragraph of section 4 must show that the increase is necessary to allow the payment of benefits equivalent to those that would have been paid had it not been for that characteristic.

2016, c. 13, s. 19.