R-15.1 - Supplemental Pension Plans Act

Section 306.4 Disposition versions

2010-01-01

306.4. (Repealed).

1998, c. 2, s. 41; 2006, c. 42, s. 46.

1998-03-12

306.4. Where the ceiling provided for in section 306.3 is reached but the value, as at 31 December 1997, of the reduction in amortization amounts effected up to or after that date, pursuant to this section, is less than the portion of gain determined in respect of the pension plan pursuant to the first paragraph of section 32 of the Act respecting the negotiation of agreements concerning the reduction of labour costs in the municipal sector (1998, chapter 2), the balance of the surplus referred to in section 135.4 shall be used

(1)  to reduce proportionately each of the amortization amounts remaining to be paid after 31 December 2003 to amortize the unfunded actuarial liability referred to in the second paragraph of section 135.3;

(2)  to eliminate all amortization amounts remaining to be paid to amortize an improvement unfunded actuarial liability resulting from the improvement of the benefits of the members or beneficiaries of the plan.

In the case of a plan referred to in paragraphs 2 to 6 of section 135.1, the balance of the surplus amount may be used in a proportion greater than 60% in accordance with subparagraph 1 of the first paragraph only if the city and the employee’s associations representing the majority of the members of the plan agree thereto in writing. A copy of the agreement must be transmitted to the Régie together with an application for registration of the amendment to the pension plan.

In the case of the plan referred to in paragraph 1 of section 135.1, the proportion of the balance used in accordance with subparagraph 1 of the first paragraph shall be at least 60%.

If, once the amortization amounts referred to in subparagraph 1 of the first paragraph are eliminated, a residual amount which may be used pursuant to this section is remaining on the balance of the surplus, the amount must be used for the purposes of subparagraph 2 of the first paragraph, in a proportion of 40%.

1998, c. 2, s. 41.