S-2.1.1 - Act to foster the financial health and sustainability of municipal defined benefit pension plans

Section 14 Disposition versions

2014-12-05

14. The abolition of the automatic indexation provided for in a pension plan reduces the portion of the deficiencies attributable to the active members. If the abolition of the automatic indexation represents more than the portion of the deficiencies attributable to the active members under the first paragraph of section 12, the surplus amount must be recorded as an actuarial gain in the reserve. Such a gain can only be used for the purpose of an ad hoc pension indexation or, in the absence of such an indexation, for the purposes agreed on by the municipal body and the active members.

If the abolition of the automatic indexation represents less than the portion of the deficiencies attributable to the active members under the first paragraph of section 12 or in the absence of such an indexation, the active members assume the remaining portion through a reduction of their benefits from 1 January 2014, through payment of a contribution representing annually not more than 3% of their payroll, for a maximum period of five years, or through a reduction of their benefits and payment of such a contribution, as provided for in the agreement or by the arbitrator under Chapter IV.

2014, c. 15, s. 14.