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

Section 23 Disposition versions

2014-12-05

23. The Régime de retraite des employés municipaux du Québec must be amended to provide that, from 1 January 2015,

(1)  the current service contribution is to be shared equally between the municipal body and the active members;

(2)  a stabilization fund, funded by a stabilization contribution shared equally between the municipal body and the active members and aimed at protecting the plan from adverse deviation likely to affect the plan in the future, is to be established.

The stabilization contribution provided for in subparagraph 2 of the first paragraph represents 10% of the current service contribution, established without taking into account any margin for adverse deviation provided for by the Canadian Institute of Actuaries. However, it may represent a higher percentage of the current service contribution if the bodies that must approve the amendments to the plan so agree. The contribution is paid into the fund from 1 January 2015. Actuarial gains generated from 1 January 2014 must also be paid into the fund.

The required value of the stabilization fund must be calculated in the same manner as the provision for adverse deviation established with respect to the plan’s obligations accumulated as at 31 December 2013.

2014, c. 15, s. 23.