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

Section 33 Disposition versions

2016-06-08

33. When a pension plan must be restructured under section 19, the surplus assets for service prior to 1 January 2016 and those for service subsequent to 31 December 2015 must be used in relation to the service to which they relate.

The surplus assets for service prior to 1 January 2016 that are identified in an actuarial valuation subsequent to 31 December 2015 must first be appropriated, in the year following the actuarial valuation, to resuming, if applicable, indexation of the pensions accrued at 31 December 2015 and that are in payment on the date of the indexation provided for in the pension plan.

A pension referred to in the second paragraph must be increased to the level it would have reached, since the last actuarial valuation, had it not been for the amendment to the retirement pension’s automatic indexation formula under the first paragraph of section 21. If the surplus assets are insufficient to cover 13 the whole increase, the indexation is to be made on the basis of the surplus available to finance the increase.

If any surplus assets remain, the pension re-established under the third paragraph must be increased to the level it would have reached, since the last actuarial valuation, had it not been for the additional reduction in the retirement pension’s automatic indexation formula under the second paragraph of section 21.

Furthermore, if the pension plan has surplus assets after the third and fourth paragraphs, as applicable, have been applied and unless the employer and the active members have agreed on a different apportionment and a different order, the surplus assets must be used for the following purposes in the following order:

(1)  reimbursing the debts contracted by the pension plan toward the employer;

(2)  funding improvements to the pension plan.

In no case may the increased pensions be higher than the pensions that would have been paid under the plan had the retirement pension’s automatic indexation formula not been amended.

2016, c. 13, s. 33.