R-10, r. 10 - Pension plan for federal employees transferred to employment with the Gouvernement du Québec

À jour au 1^er janvier 2016

Ce document a valeur officielle.

chapter R-10, r. 10

Pension plan for federal employees transferred to employment with the Gouvernement du Québec

Act respecting the Government and Public Employees Retirement Plan

(chapter R-10, s. 10.0.1).

TITLE I GENERAL

CHAPTER I DEFINITIONS

1. For the purposes of this plan, unless the context indicates otherwise:

“child” means a child who is a contributor’s stepchild or adopted child under age 18 or, if such child is age 18 or over but under age 25, who has attended a school or university on a full-time basis without significant interruption, as defined in section 80, since his 18th birthday or since the contributor’s death if subsequent to that date;

“contributor” means a person who is required to contribute to this plan and, unless the context requires a different interpretation, a person who, although no longer required to contribute to this plan, remains employed in the Québec civil service, or ceased to hold employment with his employer;

“disability” means a contributor’s incapacity within the meaning of section 45;

“employee” means a federal employee who participates in this plan pursuant to the provisions of Chapters II and III of Title I;

“federal Act” means Parts I and III of the Public Service Superannuation Act (R.S.C. 1985, c. P-36) and the Supplementary Retirement Benefits Act (R.S.C. 1985, c. S-24) as well as the Regulations made under those Acts, as they read when the employee joins this plan;

“federal employee” means a person who was employed in the public service of Canada and who is referred to in section 2;

“federal pension plan” means the pension plan provided for by the federal Act;

“full-time employee” means an employee who holds one or more positions requiring continuous service in employment where he is normally required to work an average of at least 30 hours per week;

“part-time employee” means an employee who is not a full-time employee;

“pensionable employment” means employment in respect of which there existed a retirement pension or pension fund or system established for the benefit of employees holding that employment;

“provincial Act” means the Act respecting the Government and Public Employees Retirement Plan (chapter R-10), as it reads when it is applied;

“provincial pension plan” means the pension plan provided for by the provincial Act;

“public service of Canada” means the public service within the meaning of the Public Service Superannuation Act (R.S.C. 1985, c. P-36);

“reciprocal transfer agreement” means the specific Reciprocal Agreement on the Transfer of Pension Plans and Terms and Conditions concerning the New Pension Plan, contained in Annex G to the transfer agreement entered into on 26 April 1991 between the Gouvernement du Québec and the Government of Canada with respect to the administration by Québec of Part IX of the Excise Tax Act (R.S.C. 1985, c. E-15) relating to the goods and services tax, also applicable to employees governed by the agreement relating to immigration and the temporary admission of aliens between the Gouvernement du Québec and the Government of Canada, as designated in paragraph 1 of section 2;

“retirement pension Act” means the Civil Service Superannuation Act (R.S.C. 1952, c. 50);

“Retraite Québec” means Retraite Québec, established under section 1 of the Act respecting Retraite Québec (chapter R-26.3);

“salary” means, for the purposes of pensionable service, remuneration recognized under the federal Act prior to the date on which the employee joins this plan, and remuneration recognized under sections 14 to 18.1 of the provincial Act from the date on which the employee joins this plan;

“transfer agreement” means a transfer agreement applicable to a federal employee and entered into between the Gouvernement du Québec and the Government of Canada to ensure that accrued benefits are transferrable between the federal pension plan and this plan;

“year” means a calendar year;

“year of pensionable service” means a year of service referred to in section 14 and for which no pension credit or paid-up annuity is payable.

O.C. 430-93, s. 1; T.B. 208552, s. 1.

CHAPTER II ELIGIBILITY FOR THIS PLAN

2. A federal employee is eligible for the plan where he:

(1)  either contributes to the federal pension plan on 31 December 1991, holds employment with the federal government on 5 February 1991 and is governed by the agreement between the Gouvernement du Québec and the Government of Canada relating to the terms and conditions of the transfer of federal employees to the Québec civil service (O.C. 725-91, 91-05-29) consequent to the coming into force of the Canada-Québec Accord Relating to Immigration and Temporary Admission of Aliens of 5 February 1991 (O.C. 61-91, 01-01-23);

(2)  or contributes to the federal pension plan on 30 June 1992 and is governed by section 2 of the Special Reciprocal Agreement of the Transfer of Pension Plans and Terms and Conditions concerning the New Pension Plan, contained in Annex G to the transfer agreement entered into on 26 April 1991 between the Gouvernement du Québec and the Government of Canada with respect to the administration by Québec of Part IX of the Excise Tax Act (R.S.C. 1985, c. E-15) relating to the goods and services tax;

(3)  holds a permanent position with the public service of Canada on the day before taking up employment with the Gouvernement du Québec;

(4)  elects or is deemed to have elected to transfer the benefits accrued to him under the Public Service Pension Act (R.S.C., 1985, c. P-36) to this plan, in accordance with the transfer agreement.

O.C. 430-93, s. 2.

3. A federal employee referred to in paragraph 1 of section 2 may elect this plan until 28 February 1993 and, in such case, his election is deemed to have been made on 31 December 1992. A federal employee referred to in paragraph 2 of section 2 may elect this plan until 1 July 1993. In the meantime, a federal employee is deemed to participate in this plan and the contribution provided for in section 36 or 37 shall be payable from the date on which he joins this plan.

In order to make the election provided for in the preceding paragraph, the employee shall fill out and file a transfer application conforming to Annex A to the transfer agreement applicable to him and shall ensure that the application is received by the Commission prior to the expiry of the election period. In such case, membership in this plan is irrevocable and is deemed to take effect retroactively to 1 January 1992 for employees referred to in paragraph 1 of section 2, and to 1 July 1992 for employees referred to in paragraph 2 of that section.

O.C. 430-93, s. 3.

4. A federal employee who fails to file a tranfer application within the election period under section 3 or who began to receive a benefit under the Public Service Superannuation Act (R.S.C. 1985, c. P-36) is deemed to have elected to participate in the provincial pension plan retroactively to 1 January 1992 where he is an employee referred to in paragraph 1 of section 2, or to 1 July 1992 where he is an employee referred to in paragraph 2 of that section. Any contributions made by him since that date shall be adjusted accordingly and any overpayment shall be refunded to him with interest at the rate of 4% compounded annually and calculated from the date on which he began to contribute to this plan.

O.C. 430-93, s. 4.

5. A federal employee who dies during the election period without having filed a transfer application is deemed to have elected to participate in this plan. Such employee is deemed to have filled out Annex A of the transfer agreement applicable to him on the date of his death.

O.C. 430-93, s. 5.

6. Where an employee is re-employed in the federal public service fewer than 6 months from ceasing to participate in this plan or within such longer period as may be determined jointly by the Treasury Board of Canada and Retraite Québec, the service credited to the employee may be transferred to the federal pension plan in accordance with the transfer agreement applicable to him.

O.C. 430-93, s. 6.

7. An employee who ceases to participate in this plan and who then takes up employment covered by the provincial Act shall, for pension purposes, conserve the benefits accrued to him under this plan upon ceasing to participate herein and shall participate in the provincial pension plan in the new employment covered by that plan.

In such case, the years and partial years of pensionable service accrued to him under this plan shall be added, for pension eligibility purposes only, to the service credited to him under the provincial pension plan where he has not received a refund of his contributions or is not entitled thereto under this plan, or where he is not a beneficiary of this plan upon ceasing to participate therein.

O.C. 430-93, s. 7.

8. A federal employee who does not elect this plan and who wishes to transfer to the provincial pension plan the benefits accrued to him under the federal pension plan shall avail himself of the transfer agreement entered into between the Government of Canada and the Commission and implemented by (O. C. 1115-84, 84-05-16), as it read when it is applied.

O.C. 430-93, s. 8.

CHAPTER III PARTICIPATION, CONTRIBUTIONS AND CONTRIBUTORY AMOUNTS

DIVISION I PARTICIPATION

9. This pension plan applies to federal employees who elect this plan in accordance with section 3.

O.C. 430-93, s. 9; O.C. 735-96, s. 1.

10. An employee subject to this plan shall participate herein as long as he remains governed by the Public Service Act (chapter F-3.1.1) and there is no break in the employment relationship.

For the purposes of the first paragraph, an employee of the Agence du revenu du Québec is deemed to be subject to the Public Service Act.

O.C. 430-93, s. 10; S.Q. 2010, c. 31, s. 174.

11. For the purposes of this plan, an employee is deemed to hold a position covered by the Public Service Act (chapter F-3.1.1) where he holds full-time or part-time employment, including any period during which he benefits from an authorized leave of absence without pay or is eligible for salary insurance.

O.C. 430-93, s. 11.

12. Any employee is deemed to have ceased to hold employment with the employer on the day following, whichever comes first,

(1)  the effective date of his resignation;

(2)  the date of his dismissal;

(3)  the date of his retirement;

(4)  the date of his death;

(5)  the date of surrendering his position;

(6)  the effective date of the abolition of his office.

Notwithstanding the foregoing, an employee who is suspended or is absent without authorization is deemed to have ceased to hold employment on the effective date of his suspension by his employer or his unauthorized absence, unless he is subsequently reinstated in his employment.

O.C. 430-93, s. 12.

13. An employee ceases to be governed by this plan on 31 December of the year in which he reaches age 69. An employee who reached that age before 1 January 1997 ceases to be governed by this plan on 31 December of that year.

O.C. 430-93, s. 13; O.C. 1596-97, s. 1.

14. For the purposes of this plan, years of pensionable service include years of pensionable service transferred from the federal pension plan on the date on which the employee joins this plan and years of pensionable service acquired in accordance with the provisions of this plan.

O.C. 430-93, s. 14.

15. The period during which an employee is absent from work for a reason that renders him eligible for salary insurance under the provisions of a collective agreement or other text governing his working conditions shall be counted as a period of pensionable service. In such case, the employee shall make contributions calculated on the basis of his annual salary immediately prior to the beginning of his salary insurance period, and those contributions shall be deducted from his salary insurance benefits, with the employer paying its own share.

O.C. 430-93, s. 15.

16. A year of pensionable service shall be counted under this plan for an employee who holds full-time employment for an entire year and who receives or is deemed to receive his full salary during the year.

A fraction of a year of pensionable service shall be counted for a full-time employee who does not receive his full salary during the year. That fraction is equal to the number of working days for which the contibutions required were deducted or made, divided by the number of contributory working days in a year, which is 260 days. The fraction is rounded to the fourth decimal.

The service referred to in this section shall be counted only where the required contributions were deducted or made.

Under no circumstances may more than one year of pensionable service be counted during the same calendar year.

O.C. 430-93, s. 16; T.B. 208552, s. 2.

17. Where an employee holds more than one pensionable employment under the plan, section 20 of the provincial Act applies, with the necessary modifications.

O.C. 430-93, s. 17; T.B. 208552, s. 3.

17.1. Division II.1 of Chapter II of Title 1 of the provincial Act, respecting the harmonized service of an employee who holds pensionable employment for which the basis of remuneration is 260 days, applies to employees governed by this plan, with the necessary modifications.

T.B. 208552, s. 4.

DIVISION II REDEMPTION OF PAST SERVICE UNDER THE FEDERAL ACT

18. Sections 19 to 26 apply to any contributor who elected to redeem any period of pensionable service in accordance with the provisions of the federal Act prior to the date on which he joined this plan.

O.C. 430-93, s. 18.

19. Where, on the date on which a contributor joins this plan, one or more payments remain due for the redemption of any period of service in accordance with the provisions of the federal Act, the employee shall continue to make those payments to Retraite Québec according to the schedule and the terms and conditions established at the time of redemption.

O.C. 430-93, s. 19.

20. Except where the contributor dies, if the contributor ceases to hold employment with his employer before all the payments have been made in accordance with section 19, he shall be credited with the period of service that he chose to redeem and the balance of the redemption cost shall be recovered out of any sum payable to him under this plan.

O.C. 430-93, s. 20.

21. Where the contributor dies before all the payments for the redemption of any period of service have been made, those payments are deemed to have been effectively remitted to Retraite Québec for the purposes of this plan.

Notwithstanding the foregoing, where, on that date, an amount payable by the contributor is due and exigible, Retraite Québec shall, if the amount including the interest provided for in section 25 is not paid immediately by the contributor’s personal representative or, after having been enjoined to do so, by the contributor’s spouse and children eligible for an allowance under this plan, deduct that amount by withholding a lump sum or periodic payments from such allowances, without prejudice to any other recourse available to Retraite Québec with respect to recovery.

O.C. 430-93, s. 21.

22. Except where a contributor dies, if a contributor fails to make one or more payments under the terms and conditions by which he is bound, he shall make those payments in any of the following manners, at his option:

(1)  prior to the end of the initial period over which payments were spread:

(a)  in one payment;

(b)  by spreading those payments over the rest of the initial period;

(2)  by spreading those payments over a period longer than the initial period, without exceeding the period during which the contributor failed to make those payments.

O.C. 430-93, s. 22.

23. Where a contributor ceases to hold employment with his employer before all the payments have been made under section 22, he shall be credited with the period of service that he chose to redeem and those payments shall be recovered out of any sum payable to the contributor under this plan until all the payments have been made or until the contributor dies.

O.C. 430-93, s. 23.

24. Where a contributor who elected to make payments under subparagraph b of paragraph 1 of section 22 dies, those payments are deemed to have been effectively remitted to Retraite Québec for the purposes of this plan.

Where a contributor who elected to make payments under paragraph 2 of section 22 dies, those payments shall remain payable to Retraite Québec and may be recovered out of any sum payable to a beneficiary under this plan. In such case, the period of service redeemed shall be credited under this plan.

O.C. 430-93, s. 24.

25. Interest at 4% per year shall be charged on any payments provided for in sections 22, 23 and 24, from the due date until the payment date.

O.C. 430-93, s. 25.

26. Where payments remain due when a contributor transfers his participation to the provincial pension plan in accordance with sections 4 and 8, he may pay the balance of the cost of redeeming any period of service by making a single payment within 60 days following the date on which he joins the provincial pension plan.

Where the contributor does not pay the balance of the redemption cost in accordance with the first paragraph, only that part of the period of service redeemed for which payments where made shall be credited to his file.

O.C. 430-93, s. 26.

DIVISION III AUTHORIZED LEAVE OF ABSENCE WITHOUT PAY

27. Subject to sections 28 and 29, a contributor on authorized leave of absence without pay shall be required, in respect of his absence, to pay an amount calculated as follows:

(1)  for the first 3 consecutive months of his absence, the amount that he would have been required to pay pursuant to section 36 or 37, whichever applies to him, had he not been absent;

(2)  for the remainder of his absence, double the amount that he would have been required to pay pursuant to section 36 or 37, whichever applies to him, had he not been absent.

O.C. 430-93, s. 27.

28. A contributor on authorized leave of absence without pay for any of the following reasons shall be required, in respect of his absence, to pay the amount that he would have been required to pay under section 36 or 37, whichever applies to him, had he not been absent:

(1)  to pursue studies or acquire training from which the Government will benefit;

(2)  illness or injury;

(3)  pregnancy;

(4)  personal reasons, if the leave of absence does not exceed 3 months.

In all cases, the employer shall supply Retraite Québec with an attestation stating the reason for the leave of absence.

O.C. 430-93, s. 28.

29. A contributor on authorized leave of absence without pay for any of the following reasons shall be required, in respect of any fraction of his absence comprised in the 52-week period following the date of the child’s birth or adoption, to pay the amount that he would have been required to pay under section 36 or 37, whichever applies to him, had he not been absent, where the employer supplies Retraite Québec with an attestation stating the reason for the leave of absence:

(1)  the birth of his child;

(2)  parental responsibility in respect of a child whose custody he accepted for adoption purposes;

(3)  care and custody of his child.

O.C. 430-93, s. 29.

30. A contributor on authorized leave of absence without pay is deemed to have received, during his leave of absence, salary at a rate equal to the rate that would have been paid to him had he not been absent.

In calculating a contributor’s salary for the purposes of the first paragraph, any salary increase that would have been paid to him had he not been absent shall be taken into account.

O.C. 430-93, s. 30.

31. The contributor shall pay to Retraite Québec the amount payable under sections 27 to 29, either in a lump sum paid within 30 days following his return to work, or in equal deductions from his salary beginning with his return to work, during a period equal to twice the length of his absence.

O.C. 430-93, s. 31.

32. Where the contributor has not paid the full amount payable under sections 27 to 29 upon ceasing to hold employment with his employer, the balance shall be deducted from any benefit that is or becomes payable to him or in his respect under the Act, as follows:

(1)  in the case of a pension or annual allowance:

(a)  either in equal deductions from the monthly payments of pension or annual allowance over a period equal to the fraction of the period referred to in section 31 and for which no payment was made under sections 27 to 29; such deduction shall not exceed 30% of the gross monthly payments;

(b)  or, where the beneficiary so elects, by the deduction of a lump sum once the pension or annual allowance becomes payable;

(2)  in the case of a benefit not referred to in paragraph 1, by the deduction of a lump sum as soon as the benefit becomes payable.

O.C. 430-93, s. 32.

33. If the contributor, at the time of his death, has not paid the full amount payable under sections 27 to 29, the balance may be recovered out of any allowance payable, under this plan, to his surviving spouse and children, in either of the following manners as chosen by the beneficiary:

(1)  either by the deduction of a lump sum from the allowance, as soon as it becomes payable;

(2)  or by equal deductions from the allowance over a period equal to the fraction of the period referred to in section 31 and for which no contributions were made pursuant to sections 27 to 29; such deductions shall not exceed 30% of the gross monthly payments.

O.C. 430-93, s. 33.

34. Where the payment or continued payment of the amount payable pursuant to sections 27 to 29 would place the contributor or any recipient of benefits payable in the contributor’s respect in a difficult financial position, Retraite Québec may:

(1)  extend the refund period so that it does not exceed triple the duration of the employee’s leave of absence, or 15 years, whichever is shorter;

(2)  reduce the deductions referred to in paragraph 1 of section 32 to 15% of the gross monthly payments; or

(3)  reduce the deductions referred to in paragraph 2 of section 33 to 15% of the gross monthly payments.

O.C. 430-93, s. 34.

35. Sections 31 to 34 do not have the effect of preventing the early refund of all or part of the amount payable pursuant to sections 27 to 29.

O.C. 430-93, s. 35.

DIVISION III.1 SABBATICAL WITH DEFERRED SALARY

O.C. 735-96, s. 2.

35.1. Sections 193 to 197 and 215 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10) apply, with the necessary modifications, to the employees governed by this Plan.

O.C. 735-96, s. 2.

35.2. In the case of the second paragraph of section 7 of the Regulation respecting certain temporary measures prescribed by Title IV of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10, r. 5), the employee may redeem the year of leave or part of a year of leave in accordance with section 27.

O.C. 735-96, s. 2.

DIVISION III.2 PROGRESSIVE RETIREMENT

O.C. 735-96, s. 2.

35.3. Sections 85.5.1 to 85.5.5. of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10) apply, with the necessary modifications, to the employees referred to in this Plan.

O.C. 735-96, s. 2.

DIVISION IV CONTRIBUTIONS

36. An employer must deduct from the pensionable salary paid by the employer to the employee and, where applicable, to a pensioner or a person who ceased to participate in the plan, in the case of the pensionable salary referred to in section 14.1 or in the case of a lump sum referred to in section 16 of the provincial Act, an annual amount established on the basis of the following contribution rates:

(1)  7.5% up to the part of the salary corresponding to the personal exemption within the meaning of the Act respecting the Québec Pension Plan (chapter R-9);

(2)  5.2% on the part of the salary in excess of the personal exemption up to the maximum pensionable earnings within the meaning of that Act;

(3)  7.5% on the part of the employee’s salary in excess of the maximum pensionable earnings.

The contribution rates provided for in the first paragraph may vary in relation to the plan’s capitalization ratio established from the actuarial valuation referred to in section 93 or from an update of it. That ratio, expressed as a percentage, is equal to the ratio between the market value of the plan’s assets and its actuarial liabilities determined by taking into account the margin for adverse deviation corresponding to a 0.50% reduction of the expected future return assumption.

Each of the contribution rates provided for in the first paragraph is equal to 0% if the plan’s capitalization ratio is equal to or greater than 120%. They are respectively reduced by 50% if that ratio is equal to or greater than 110% but less than 120%. The contribution rates provided for in the first paragraph remain applicable if that ratio is equal to or greater than 100% but less than 110%.

If the plan’s capitalization ratio is less than 100%, a second capitalization ratio is to be established by not taking into account the 0.50% margin for adverse deviation. In that case, if the second ratio is equal to or greater than 100%, the rates provided for in the first paragraph remain applicable. If the second ratio is less than 100%, each of the contribution rates provided for in the first paragraph is increased by 0.20% for each 1% reduction between 100% and the second ratio, up to 9.7% for the rates respectively provided for in subparagraphs 1 and 3 of the first paragraph and up to 7.4% for the rate provided for in subparagraph 2 of the first paragraph, as shown in Schedule I.

The contribution rates provided for in the first paragraph may increased or reduced only in accordance with this section, unless a modification resulting in an additional cost is made to the plan.

For the purposes of this section, a capitalization ratio including a percentage fraction is reduced to the nearest whole percentage if that fraction is equal to or greater than 0.50%; if that fraction percentage is greater than 0.50%, the capitalization ratio then considered is to be increased to the nearest whole percentage.

O.C. 430-93, s. 36; T.B. 208552, s. 5; T.B. 213377, s. 1.

36.1. A 0.83% reduction is applied to each of the contribution rates determined in accordance with section 36 for the purpose of computing the deduction to be made from the pensionable salary of the employee who, if the employee participated in the provincial pension plan, would be a non-unionizable employee within the meaning of the provincial Act. However, no reduction is to be applied if, pursuant to the third paragraph of that section, each of the contribution rates is equal to 0%.

Notwithstanding the foregoing, that reduction must not be taken into account for the purposes of determining the contribution to be paid under the second paragraph of section 39, neither for the purposes of any Order in Council made under section 10.2 of the provincial Act, nor for the purposes of calculating the benefits payable under this plan.

O.C. 822-2000, s. 1; T.B. 213377, s. 2.

37. From the date on which the employee reaches 35 years of pensionable service, his contribution rate shall be 1% of his salary.

However, the contribution rate is equal to 0% if, pursuant to the third paragraph of section 36, each of the contribution rates is equal to 0%.

O.C. 430-93, s. 37; T.B. 213377, s. 3.

37.1. The insurer must withhold the amount to be withheld under section 36 or, as the case may be, section 37, from any lump sum benefit it pays to an employee under a mandatory supplementary long-term salary insurance plan applicable to management staff in the public and parapublic sectors, within the scope of measures designed to protect the employee’s salary following rehabilitation.

T.B. 208552, s. 6.

37.2. An amount withheld under section 36 or 37 is recalculated to take into account, where applicable, the salary resulting from the application of subparagraph 2 of the second paragraph of section 18 of the provincial Act.

T.B. 208552, s. 6.

38. Where an amount of contributions exigible remains due under the federal Act on the date on which the employee joins this plan, the employee shall pay or continue to pay that amount to Retraite Québec by regular deductions of 10% from his pensionable salary.

Where a contributor ceases to hold employment or dies before the amount is paid in full, sections 32 to 35 apply with the necessary modifications.

O.C. 430-93, s. 38.

DIVISION V CONTRIBUTORY AMOUNTS

39. The Gouvernement du Québec shall pay a contributory amount equal to the difference between the cost of the plan and the employee contributions, plus the compensatory lump-sum payment provided for in the reciprocal transfer agreement. For the years preceding the first actuarial valuation, the contributory amount paid by the Gouvernement du Québec shall equal the employee contributions.

Notwithstanding the foregoing, where the employer in an employer required under the provincial Act to pay its contributory amount to Retraite Québec, it shall pay the contributory amount referred to in the first paragraph to Retraite Québec when remitting its employee contributions.

Québec is also responsible for paying the benefits provided for in this new pension plan.

O.C. 430-93, s. 39.

CHAPTER IV BENEFITS

40. For the purposes of this Chapter:

“annual allowance” means a pension reduced in accordance with sections 62 to 65, 67 to 70 and 90.5;

“beneficiary” means a person to whom any benefit is or is about to become payable under this plan;

“cash severance allowance” means an amount equal to one month’s salary for each year of pensionable service and calculated on the basis of the employee’s authorized salary rate upon ceasing to participate in this plan;

“deferred pension” means a pension that becomes payable to a contributor once he reaches age 60;

“immediate pension” means a pension that becomes payable to a contributor once he becomes eligible therefor;

“pension” means a pension calculated under section 55;

“refund of contributions” means a refund of the amount paid by a contributor to this plan and of the amount of the contributions and interest credited to the contributor and transferred to Retraite Québec.

O.C. 430-93, s. 40; O.C. 1197-97, s. 1.

41. Subject to the other provisions of this plan, a pension or other benefit specified in this plan shall be paid to any person who is required to be a member of this plan and who ceases to hold employment with his employer. That pension or benefit shall be based on the number of years of pensionable service credited to the person.

Notwithstanding the first paragraph, a pension shall become payable to a contributor eligible therefor from the day of his retirement or not later than 31 December of the year in which he reaches age 69. Notwithstanding the foregoing, if that contributor reached that age before 1 January 1997, the pension shall become payable not later than 31  December of that year.

O.C. 430-93, s. 41; O.C. 1596-97, s. 2.

42. A deferred pension shall be payable from the date of the 60th birthday and throughout the lifetime of a contributor eligible therefor.

O.C. 430-93, s. 42.

43. Where a pension or annual allowance becomes payable to a contributor, it shall, subject to the other provisions of this plan, be paid in accordance with section 148 of the provincial Act and shall continue to be paid for the contributor’s lifetime and, thereafter, until the end of the month of his death, and any amount in arrears remaining unpaid at any time after his death shall, in accordance with the provisions of this plan, be paid as though it were a refund of contributions.

O.C. 430-93, s. 43.

44. Where an annual allowance becomes payable to the surviving spouse or to a child, it shall be paid in accordance with section 148 of the provincial Act and shall continue to be paid until the end of the month in which the beneficiary dies otherwise ceases to be entitled to receive an annual allowance, and any amount in arrears remaining unpaid at any time after his death shall be paid to the beneficiary’s succession.

That allowance shall be payable from the day on which payment of the contributor’s pension ceases because of death or, where applicable, from the day on which a contributor eligible for a pension dies.

O.C. 430-93, s. 44.

45. A contributor is deemed to have a physical or mental disability where he is affected by a serious and prolonged pathological state.

Such pathological state is deemed serious where the contributor is unable to regularly hold significant, remunerated employment.

Such pathological state is deemed prolonged where it may be expected to last indefinitely and where there is no likelihood of a cure given the current state of medical knowledge.

O.C. 430-93, s. 45.

46. Where, under this plan, a contributor acquires entitlement to a pension or annual allowance totalling less than $1,065 per year, he may, at any time after that pension or retirement allowance is payable to him, apply to Retraite Québec for cash payment of the actuarial value of that pension or annual allowance.

That amount shall, at the time prescribed under section 119 of the Act respecting the Québec Pension Plan (chapter R-9), be indexed annually by the rate of increase in the Pension Index determined under that Act.

O.C. 430-93, s. 46.

47. Where a contributor is entitled to a benefit under this plan, he is deemed to have elected a benefit other than a lump sum described in the definitions of “cash severance allowance” and “refund of contributions”, as provided for in section 40, if he does not send Retraite Québec written notice of his election within 1 year from the time when he becomes eligible therefor.

O.C. 430-93, s. 47.

48. Subject to section 49, the contributor may, with the consent of Retraite Québec, cancel an election referred to in section 47, 60 or 67 and make a new election where he received, from a public servant assigned to giving information concerning the benefits for which the contributor may make an election upon ceasing to hold employment with his employer, false or misleading information as to:

(1)  the amount of the benefits or their type;

(2)  the procedure for validity making an election.

O.C. 430-93, s. 48.

49. An election referred to in section 47 may not be cancelled nor may a new election be made under section 60 or 67, unless

(1)  the contributor applies to Retraite Québec to have his election cancelled and to make a new election within 3 months of the day on which he realized that he received false or misleading information;

(2)  Retraite Québec is convinced that the contributor made his election on the basis of false or misleading information referred to in section 48 and that without such false or misleading information, the contributor would have elected other benefits under this plan or would have made his election earlier;

(3)  the contributor, within 30 days following notice from Retraite Québec of the amount to be repaid, pays back the amounts paid to him as benefits payable over the effective duration of the election referred to in section 47, 60 or 67.

O.C. 430-93, s. 49.

50. Where a contributor has made an election in respect of a benefit other than a lump-sum benefit in accordance with section 60 or 67, he may, with the consent of Retraite Québec, cancel his election and make a new election if he has not received any benefit under this plan.

O.C. 430-93, s. 50.

51. Where Retraite Québec agrees to the cancellation of an election and to the making of a new election under section 48 or 50, the new election shall take effect on the date of the original election unless Retraite Québec indicates otherwise.

O.C. 430-93, s. 51.

52. Where the new election referred to in section 49 comprises payment of a pension or annual allowance and where, in the opinion of Retraite Québec, the contributor would experience financial difficulties in complying with paragraph 3 of that section, the debt may be refunded by instalments in an amount determined by Retraite Québec or by deductions from the pension payable under the terms of the new election. That deduction shall in no case be lower than 10% of the gross monthly amount of such pension.

O.C. 430-93, s. 52.

53. Interest at the rate of 4% compounded annually is payable on any refund of contributions until the date of the refund.

Where the refund concerns amounts paid to redeem credited service under Divisions II and III of Chapter III of Title I, the interest is calculated as of the date of payment of the amounts; where the refund concerns sums paid by an employee to pension and supplementary benefits plans established under the federal Act, the interest is calculated as of the date on which the employee begins to participate in the provincial pension plan.

The employee’s contributions within the meaning of Division IV of Chapter III of Title I pertaining to a year are deemed received at the mid-point of the period during which the employee participated in this plan during a year.

O.C. 430-93, s. 53; T.B. 208552, s. 7.

54. The amounts payable under this plan may not be assigned, encumbered, seized, paid in advance or given as security. Any transaction designed to assign, encumber or seize those amounts, to pay them in advance or to give them as security shall be without effect.

Notwithstanding the foregoing, a maximum of 50% of those amounts shall be exempt from seizure in the case of a debt for support.

O.C. 430-93, s. 54.

CHAPTER V PENSIONS

DIVISION 0.1 METHOD OF CALCULATION OF THE PENSION OF CONTRIBUTORS WHO CEASE TO PARTICIPATE IN THIS PLAN BEFORE 1 JANUARY 2014

T.B. 208552, s. 8; T.B. 213377, s. 4.

54.1. Where a contributor ceases to participate in this plan before 1 January 2014, sections 55 to 55.2 and section 57 apply as they read on the date on which the employee ceases to participate in the plan.

T.B. 208552, s. 8; T.B. 213377, s. 5.

DIVISION I METHOD OF CALCULATION OF THE PENSION OF CONTRIBUTORS WHO CEASE TO PARTICIPATE IN THIS PLAN AFTER 31 DECEMBER 2013

O.C. 430-93, Div. I; T.B. 208552, s. 9; T.B. 213377, s. 6.

55. The amount of any pension for which a contributor, who ceases to participate in this plan after 31 December 2013, may become eligible under this plan in respect of the years of pensionable service credited to him prior to 1 January 1992 shall equal the number of years of pensionable service to the contributor’s credit, not exceeding 35 divided by 50, multiplied

(1)  either by the average annual salary received or deemed to have been received by the contributor during any period of 5 consecutive years of pensionable service chosen by the contributor or on his behalf;

(2)  or, in the case of a contributor having fewer than 5 years of pensionable service to his credit, by the average annual salary that he received or is deemed to have received during the period of pensionable service to his credit.

For the purposes of the first paragraph, the average annual salary is determined in accordance with this Division on the basis of annualized salaries that do not take into account the limit provided for in section 18.1 of the provincial Act.

As regards years of pensionable service credited after 31 December 1991, the pension amount shall be obtained by carrying out the operations provided for in the first paragraph using, however, the average annual salary determined in accordance with this Division on the basis of annualized salaries that take into account the limit provided for in the first paragraph of section 18.1 of the provincial Act.

For the purpose of calculating the pension amounts provided for in the first and second paragraphs, the same period of 5 consecutive years shall be used and the number of years and partial years of service credited shall not total more than 35 years.

O.C. 430-93, s. 55; T.B. 208552, s. 10; T.B. 213377, s. 7.

55.1. The average annual salaries referred to in the first, second and third paragraphs of section 55 are obtained by carrying out the following operations in order:

(1)  by carrying over, from among the highest annualized salaries, as many salaries as necessary to make the sum of the employee’s consecutive periods of contribution corresponding to each year for which the salaries are carried over equal to 5 or, where that sum is less than 5, by carrying over all the salaries;

(2)  by multiplying each salary thus carried over for each year by the corresponding period of contribution; and

(3)  by dividing the sum of the salaries obtained under paragraph 2 by the sum of the corresponding periods of contribution.

For the purposes of the first paragraph, despite sections 14.1 and 16 of the provincial Act, the salary paid after 31 December 2007 for which no service is credited is part of the pensionable salary of the last year during which service is credited and which is prior to the year during which the salary is paid.

O.C. 735-96, s. 3; T.B. 208552, s. 11; S.Q. 2009, c. 56, s. 24; T.B. 213377, s. 8.

55.2. (Revoked).

O.C. 735-96, s. 3; T.B. 208552, s. 12.

55.3. For the purposes of section 55.1, the annualized salaries are determined in accordance with sections 36.1.1 to 36.1.4, 36.1.6, 36.1.7, 36.1.9 to 36.1.11, 36.1.14, 36.1.15, 36.1.17, 36.1.18 and 36.1.20 of the provincial Act, subject to the following modifications:

(1)  a reference to subparagraph 1 of the first paragraph of section 34.2 of the provincial Act must be read as a reference to the first and second paragraphs of section 55 of this plan;

(2)  a reference to subparagraph 2 of the first paragraph of section 34.2 of the provincial Act must be read as a reference to the third paragraph of section 55 of this plan;

(3)  a reference to paragraph 1 of section 34.3 of the provincial Act must be read as a reference to paragraph 1 of section 55.1 of this plan;

(4)  a reference to paragraph 2 of section 34.3 of the provincial Act must be read as a reference to paragraph 2 of section 55.1 of this plan;

(5)  a reference to the contributions within the meaning of section 50 of the provincial Act must be read as a reference to the contributions within the meaning of section 53 of this plan;

(6)  the terms and conditions provided for in the provincial Act concerning employment for which the basis of remuneration is 200 days and those referred to in sections 20.1, 20.2, 22, 39, 74, 85.1 and 221.1 of that Act do not apply.

T.B. 208552, s. 13.

56. As regards years of pensionable service credited after 31 December 1991, the amount of the pension shall not exceed the amount obtained by totalling the following amounts:

(1)  the amount obtained by multiplying the defined benefits ceiling, applicable for the year of retirement and established under the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), by the number of years of service credited subsequent to 31 December 1991;

(2)  the amount obtained by calculating the reduction provided for in section 57, taking into account only the years of service credited subsequent to 31 December 1991.

O.C. 430-93, s. 56.

57. From the month following the date of a contributor’s retirement for disability reasons or from the date of his 65th birthday, the amount of any pension or annual allowance shall be reduced by 0.7% of the part of the average annual salary that does not exceed the average maximum pensionable earnings, within the meaning of the Act respecting the Québec Pension Plan (chapter R-9), for the year during which the contributor ceases to contribute regularly to this plan and for the previous 4 years, for each year of pensionable service subsequent to 1965.

Such reduction shall not reduce the pension by an amount greater than the amount of the initial pension under the Québec Pension Plan acquired by the contributor during the years in which he contributed to this plan and to which he is or would be entitled if he ceased to hold regular employment.

Notwithstanding the foregoing, where no retirement or disability benefit is payable to the contributor under the Québec Pension Plan or the Canada Pension Plan, the reduction shall cease immediately and the amount of the pension shall be adjusted accordingly where the contributor applies therefor to Retraite Québec. The sums by which the pension is reduced shall be refunded to the contributor with interest at the rate of 4% per year.

O.C. 430-93, s. 57; T.B. 213377, s. 9.

58. The annual amount of the deferred pension shall be calculated in the same manner as the pension. As regards the deferred pension, the amount obtained pursuant to the first paragraph of section 57 shall be indexed in the same manner as that deferred pension until 1 January of the year during which the contributor reaches age 65.

O.C. 430-93, s. 58.

59. Any pension or annual allowance shall, at the time prescribed under section 119 of the Act respecting the Québec Pension Plan, be indexed annually at the rate of increase in the Pension Index within the meaning of that Act.

The first adjustment of a pension or of an annual allowance resulting from the indexation, except an adjustment of a deferred pension, shall be carried out proportionately:

(1)  to the number of days for which the pension or annual allowance is paid or would be paid during the year in which the contributor retired, in relation to the total number of days in that year;

(2)  in the case of an annual allowance granted to the spouse or children while the contributor is eligible for a pension or annual allowance at the time of his death, to the number of days for which the annual allowance is paid or would be paid during the year of death, in relation to the total number of days in that year.

Notwithstanding the foregoing, a deferred pension shall, at the same time, be indexed annually from 1 January following the date on which the contributor ceases to participate in the plan, to 1 January of the year in which he reaches age 60. From 1 January following the date on which a contributor reaches age 60, the deferred pension shall be indexed annually at the rate and at the time provided for in the first paragraph.

O.C. 430-93, s. 59.

DIVISION II CONTRIBUTORS WITH FEWER THAN 5 YEARS OF PENSIONABLE SERVICE

60. The following provisions apply in respect of any contributor who has to his credit more than 30 years of service on which a pension benefit or retirement benefit of the type described in subparagraph b of paragraph 3 of section 5 of the Public Service Superannuation Act (R.S.C. 1985, c. P-36) is based, but has fewer than 5 years of pensionable service to his credit:

(1)  where, for any reason, he ceases to hold employment with his employer after reaching age 60, or where he ceases to hold employment because he has become disabled, he is entitled to receive:

(a)  either an immediate pension;

(b)  or a cash termination allowance or a refund of contributions, whichever of those amounts is greater;

(2)  where, for any reason other than disability, he ceases to hold employment with his employer without having reached age 60, he is entitled to receive his choice of:

(a)  a deferred pension;

(b)  a refund of contributions;

(3)  where, without having reached age 60, he becomes disabled but has acquired entitlement to a deferred pension, he ceases to be entitled to that deferred pension and acquires entitlement to an immediate pension.

O.C. 430-93, s. 60.

61. Where a contributor other than a contributor described in section 60 has fewer than 5 years of pensionable service to his credit, he is entitled, upon ceasing to hold employment with his employer, to a refund of contributions.

O.C. 430-93, s. 61.

62. Upon the death of a contributor who, at the time of his death, was entitled under section 60 to receive an immediate or a deferred pension, his surviving spouse and children are eligible for an annual allowance established on the basis of the pension that the contributor was receiving or, where applicable, was or would have been entitled to obtain upon his death, not taking into account the reduction provided for in section 57.

In the case of the surviving spouse, the immediate annual allowance shall equal half the contributor’s pension.

In the case of each child, the immediate annual allowance shall equal one-tenth of the contributor’s pension or, where the contributor died without leaving a surviving spouse or where the spouse is deceased, shall equal one-fifth of that pension.

Notwithstanding the foregoing, the total allowances paid pursuant to the third paragraph shall not exceed two-fifths of the contributor’s pension or, where the contributor died without leaving a surviving spouse or where the spouse is deceased, shall not exceed four-fifths of the pension that the contributor would have received on the date of his spouse’s death.

O.C. 430-93, s. 62.

63. Where, in calculating the allowances to which a contributor’s children are entitled under sections 62 and 70, it is established that more than 4 of them may claim an allowance, the total amount of the allowances shall be distributed among the eligible children on a pro-rata basis.

O.C. 430-93, s. 63.

64. Notwithstanding section 66, upon the death of a contributor who, at the time of his death, was a contributor described in section 60, his surviving spouse and children shall be entitled to the annual allowances for which they would have been eligible under section 62 if the contributor, immediately prior to his death, had become eligible under section 60 for an immediate or deferred pension.

O.C. 430-93, s. 64.

65. Upon the death of a contributor who, after reaching age 45, received a sum as a cash termination allowance or refund of contributions relating to pensionable service prior to 1 October 1967 but who continued, after receiving that cash termination allowance or refund of contributions, to have to his credit a period of pensionable service, subsequent to 30 September 1967, of fewer than 5 years, the contributor’s surviving spouse and children shall be entitled to the annual allowances to which they would have been entitled under section 62 where the contributor had become eligible under section 60 for an immediate or deferred pension immediately prior to his death.

O.C. 430-93, s. 65.

66. Subject to section 65, upon the death of a contributor who was not employed in accordance with Part I of the Retirement Pension Act immediately prior to 1 January 1954, or who was employed at that time but did not remain employed in the public service or with the employer without significant interruption thereafter and was employed at the time of his death with fewer than 5 years of pensionable service to his credit, the contributor’s surviving spouse or, where there is not surviving spouse, his children, shall be entitled to a refund of his contributions in the form of a death benefit. Any amount payable to the children shall be paid on a pro-rata basis to each of the children eligible therefor.

O.C. 430-93, s. 66.

DIVISION III CONTRIBUTORS WITH AT LEAST 5 YEARS OF PENSIONABLE SERVICE

67. The following provisions apply in respect of a contributor with at least 5 years of pensionable service to his credit:

(1)  where he ceases to hold employment with his employer after reaching age 60, he is entitled to an immediate pension;

(2)  where he ceases to hold employment with his employer for disability reasons before reaching age 60, he is entitled to receive his choice of:

(a)  either an immediate pension;

(b)  or a cash termination allowance or a refund of contributions, whichever is greater,

except that, where he has reached age 45 and has at least 10 years of pensionable service to his credit, he shall not be entitled to an amount described in subparagraph b in respect of any period of pensionable service subsequent to 30 September 1967,

(3)  where he ceases to hold employment with his employer for any reason other than disability before reaching age 60, he is entitled to receive:

(a)  where, upon ceasing to thus hold employment, he has reached age 55 and has at least 30 years of pensionable service to his credit, an immediate pension;

(b)  in any other case, at his option:

i.  a deferred pension;

ii.  where, upon ceasing to thus hold employment, he has reached age 50 and has at least 25 years of pensionable service to his credit, an annual allowance payable immediately at the time of his election and equal to the amount of the deferred pension referred to in subparagraph i, less the greater of the 2 products obtained by multiplying 5% of the amount of that pension:

— either by 55 less his age, rounded to the nearest tenth of a year, at the time of his election;

— or by 30 less the number of years, rounded to the nearest tenth of a year, of pensionable service to his credit;

iii.  where, upon ceasing to thus hold employment, he has reached age 55, has been employed full-time in the public service for a total of at least 10 years spread over one or more periods and does not voluntarily leave his employment with his employer, an annual allowance payable immediately upon cessation of his employment and equal to the amount of the deferred pension referred to in subparagraph i, less the product obtained by multiplying 5% of the amount of that pension by 30 less the number of years, rounded to the nearest tenth of a year, of pensionable service to his credit.

Notwithstanding the foregoing, Retraite Québec may, in a case of this type, waive the right to effect all or part of the reduction provided for in this provision;

iv.  an annual allowance payable:

— immediately, at the time of his election, in the case of a contributor aged 50 or over;

— as soon as he reaches age 50, in the case of a contributor who makes an election while under age 50;

that allowance shall equal the amount of the deferred pension referred to in subparagraph i, less the product obtained by multiplying 5% of the amount of that pension by 60 less his age, rounded to the nearest tenth of a year, at the time when the allowance becomes payable;

v.  a refund of contributions, subject to the fact that, where he has reached age 45 and has at least 10 years of pensionable service to his credit, he is not entitled to a refund of contributions for any period of pensionable service subsequent to 30 September 1967;

vi.  where he becomes disabled before reaching age 60 but after having acquired entitlement:

— to a deferred pension, he ceases to be entitled to that deferred pension and acquires the right to an immediate pension;

— to an annual allowance, he ceases to be entitled to that annual allowance and acquires entitlement to an immediate pension, which shall be rectified so as to take into account the amount of the annual allowance that he was receiving.

O.C. 430-93, s. 67.

68. Upon the death of a contributor who, at that time, was entitled under section 67 to any immediate or deferred pension or to an annual allowance payable immediately or when he reaches age 50, his surviving spouse and children shall be entitled, respectively, to an annual allowance described in section 70.

O.C. 430-93, s. 68.

69. Upon the death of a contributor who held employment with his employer at the time of his death and who had at least 5 years of pensionable service to his credit, his surviving spouse and children shall be entitled to the annual allowances for which they would have been eligible under section 68 if the contributor, immediately prior to his death, had acquired under section 67 entitlement to an immediate or deferred pension or to an annual allowance payable immediately or when he reaches age 50.

O.C. 430-93, s. 69.

70. The annual allowance payable to the surviving spouse and to the children in the event of a contributor’s death shall be established on the basis of the benefit that the contributor was receiving or, where applicable, was or would have been entitled to obtain upon his death, not taking into account the reduction provided for in section 57.

In the case of the surviving spouse, the immediate annual allowance shall equal half the contributor’s benefit.

In the case of each child, the immediate annual allowance shall equal one-tenth of that contributor’s benefit or, where the contributor died without leaving a surviving spouse or where the surviving spouse is deceased, that immediate annual allowance shall equal one-fifth of that benefit.

Notwithstanding the foregoing, the total allowances paid pursuant to the third paragraph shall not exceed two-fifths of the contributor’s benefit or, where the contributor died without leaving a surviving spouse or where the surviving spouse is deceased, shall not exceed four-fifths of the benefit that the contributor would have received on the date of his spouse’s death.

O.C. 430-93, s. 70.

71. A contributor who voluntarily ceases to hold employment with his employer and who was not employed without significant interruption for a period of 2 years immediately prior to ceasing to hold employment shall be entitled only to a refund of his contributions.

For the purposes of this section, the period for which a contributor was employed with his employer shall include any period of service accomplished within a 2-year period immediately prior to the date on which the employee ceases to hold employment with his employer and accomplished by the contributor:

(1)  as an employee of the public service;

(2)  as a member of the regular force or of the RCMP;

(3)  with an approved employer with which the Minister has concluded an agreement in accordance with section 30 of the federal Act, that the employee shall be entitled under the agreement to count as pensionable service for the purposes of Part I of that Act.

O.C. 430-93, s. 71.

DIVISION IV PAYMENT TO THE SURVIVING SPOUSE, TO THE CHILDREN AND TO OTHER BENEFICIARIES

72. Where, in this Part, it is provided that a contributor’s surviving spouse and children are jointly entitled to a refund of contributions, the total amount shall be paid to them in accordance with the provisions of the Civil Code concerning successions.

Notwithstanding the foregoing, where the contributor dies without leaving a surviving spouse or children, the total amount provided for in the first paragraph shall be paid to his successors.

O.C. 430-93, s. 72.

73. Where a contributor’s child is entitled to an annual allowance or another amount under this plan, that amount shall be paid, where the child is under age 18, to the person who has legal custody of him and is vested with authority over him and, for the purposes of this section, the contributor’s surviving spouse, except where the child lives separated from him, is presumed to be the person who has custody of that child and who is vested with authority over him.

O.C. 430-93, s. 73.

74. For the purposes of this plan, a person who:

(1)  during a minimum 3-year period immediately prior to the death of a contributor with whom he resided and whom he was prohibited by law from marrying because the contributor or that person was already married to another person, was publicly represented by the contributor as being his spouse;

(2)  during a minimum 1-year period immediately prior to the death of a contributor with whom he resided, was publicly represented by the contributor as being his spouse and, upon the contributor’s death, neither that person nor the contributor was married to another person,

is deemed to be the contributor’s surviving spouse and to have become his spouse when that person began being publicly represented as his spouse and, for the purposes of this plan, a spouse to whom this section would apply were it not for his marriage to a contributor after beginning to be thus represented as the employee’s spouse, is deemed to have become the employee’s spouse when he actually began to be thus represented.

O.C. 430-93, s. 74.

75. Notwithstanding any provision to the contrary, but subject to section 74, a person’s surviving spouse shall not be entitled to any annual allowance provided for in this plan where that person married after acquiring entitlement to a pension or annual allowance under this plan, unless, subsequent to his marriage, he became or remained a contributor to this plan.

O.C. 430-93, s. 75; O.C. 822-2000, s. 2.

76. Notwithstanding any provision to the contrary, a child born of a contributor or adopted by him, or who becomes a contributor’s stepchild after the contributor ceased to hold employment with his employer, shall not be entitled to an allowance referred to in this plan unless:

(1)  the contributor ceased to hold employment because of his death and the child was born posthumously;

(2)  the contributor ceased to hold employment for a reason other than death and the child was born following a pregnancy that began prior to the date on which the contributor ceased to be employed.

O.C. 430-93, s. 76.

77. Where, upon a contributor’s death, his surviving spouse had, immediately prior to his death, lived separately from the contributor, the surviving spouse is, for the purpose of determining eligiblity for any benefit payable to the contributor’s surviving spouse and children, deemed to have died before the contributor, unless Retraite Québec decides otherwise on the basis of the circumstances of the case, including the welfare of the children.

O.C. 430-93, s. 77.

78. Notwithstanding any provision to the contrary, but subject to section 74, where a contributor dies within 1 year after his marriage, no annual allowance is payable to his surviving spouse or to the children of the marriage where Retraite Québec is not convinced that the contributor’s state of health at the time of his marriage gave him a life expectancy of at least one year.

O.C. 430-93, s. 78; O.C. 822-2000, s. 3.

79. No section of this plan shall jeopardize a child’s entitlement to an allowance provided for in this plan where the child was born of a contributor’s previous marriage.

O.C. 430-93, s. 79.

80. For the purposes of the definition of “child” in section 1, “attended a school or university on a full-time basis” means attended a school, college, university or any other educational institution that provides training or teaching of an educational, specialized, vocational or technical nature. A child is deemed to attend or to have attended a school or university on a full-time basis without interruption:

(1)  during a school vacation:

(a)  where, immediately after that vacation, he begins or continues to attend a school or university on a full-time basis during the following school year;

(b)  where the child is unable to comply with subparagraph a due to illness or for any other good reason, if he begins or continues to attend a school or university on a full-time basis at any time during the school year beginning immediately after the end of the school vacation;

(c)  where it has been established that the child is unable to comply with subparagraph b, if he begins or continues to attend a school or university on a full-time basis during the school year following the school year referred to in subaragraph a;

(2)  during an absence that occurred during a school year due to illness or for any other good reason where, immediately after such absence, he begins or continues to attend a school or university on a full-time basis during the school year or, where it is impossible for him to do so, if he begins or continues to attend a school or university on a full-time basis during the following school year.

O.C. 430-93, s. 80.

81. Where a child’s absence due to illness or for any other reasonable reason begins after he has begun a school year and where, because of such illness, it is impossible for him to continue attending a school or university of a full-time basis, that child is, notwithstanding paragraph 2 of section 80, deemed to have attended a school or university on a full-time basis without interruption until the end of the school year.

O.C. 430-93, s. 81.

82. Where a child dies while absent from school or university due to illness or for any other reasonable reason, the child is, notwithstanding section 80, deemed to have attended a school or university on a full-time basis without significant interruption:

(1)  until his death, where the death occurred during the school year in which his absence began;

(2)  until the end of the school year during which the absence began, where the death occurred after the school year in question.

O.C. 430-93, s. 82.

83. Where a child ceases to be a child defined in section 1 while absent:

(a)  either during a school year for health reasons or for any other reasonable reason;

(b)  or during school vacation;

that child is, notwithstanding section 80, deemed to have attended a school or university on a full-time basis without significant interruption until he ceases to be a child if, immediately after such absence,

(3)  in the case of an absence referred to in paragraph 1, he begins or continues to attend a school or university on a full-time basis during that same school year or, where he is unable to do so, he begins or continues full-time attendance during the following school year;

(4)  in the case of an absence referred to in paragraph 2, he begins or continues to attend a school or university on a full-time basis during the following school year.

O.C. 430-93, s. 83.

84. The following documents shall be filed with Retraite Québec in support of every claim in respect of a child aged 18 or over:

(1)  where it is claimed that the child is or was registered in a course requiring full-time attendance, without significant interruption, in a school or university, a statement in the form prescribed by Retraite Québec and signed by an official of that school or university, certifying that the child is or was registered;

(2)  where it is claimed that the child attends or attended, for a period of time, a school or university on a full-time basis without significant interruption, a statement of attendance in the form prescribed by Retraite Québec, signed by the child in question.

O.C. 430-93, s. 84.

85. Where, at the time of a contributor’s death, there is no person to whom an allowance provided for in this plan may be paid, or where the persons to whom that allowance may be paid die or cease to be entitled thereto and no other amount may be paid to them under this plan, an amount equal to the fraction:

(1)  of the greater of the following sums:

(a)  the amount of a refund of contributions;

(b)  a amount equal to 5 times the annual pension to which the contributor was or would have been entitled on the date of his death, determined in accordance with the provisions of this plan; and that exceeds

(2)  the total sums paid to those persons and to the contributor under this plan

shall be paid, as a death benefit, to the successors.

O.C. 430-93, s. 85.

86. Where it is established that a contributor:

(1)  who is under age 60;

(2)  who receives a pension payable under this plan in respect of a disability from which he previously suffered

has regained his health or is able to carry out for his employer the duties of his former employment or any other employment appropriate to his skills, he shall cease to be entitled to that pension and shall at that time acquire entitlement to a deferred pension.

O.C. 430-93, s. 86.

87. Where, under this plan, an amount is paid in error to a person as a pension or annual allowance, Retraite Québec shall immediately notify that person to pay an amount equal to the amount paid in error.

O.C. 430-93, s. 87.

88. A person who is notified by Retraite Québec to pay an amount in accordance with section 87 shall, within 30 days following the date on which the notice was mailed:

(1)  either pay that amount to Retraite Québec as a lump sum;

(2)  or take the necessary steps to pay the amount to Retraite Québec by instalments to be deducted from each payment of his pension or annual allowance, over the shorter of the following periods:

(a)  the person’s lifetime;

(b)  the period required to pay the amount in equal instalments of 10% of the gross monthly amount of the pension or annual allowance payable to that person under this plan;

depending on the person’s election, the amount being calculated as of the date of his election, in accordance with the Canadian mortality table GAM-83 men and GAM-83 women (The 1983 Group Annuity Mortality Table, Transactions of the Society of Actuaries, Vol. XXXV, pp. 880 and 881).

A person who does not make his election within 30 days of the date of the notice is deemed to have elected the payment method described in subparagraph 2 of the first paragraph.

O.C. 430-93, s. 88.

89. A person required to make payments calculated under section 88 may, at any time, pay the amount due in a lump sum or request that Retraite Québec amend the method of paying instalments, either by increasing the amount of the payments or by paying the amount due over a shorter period.

O.C. 430-93, s. 89.

90. Deductions from the pension or annual allowance shall begin with the first payment thereof after the expiry of the 30-day period following the date on which the notice was mailed. The deductions shall be made thereafter from all payments of the pension or annual allowance until Retraite Québec has recovered the full amount due.

Where the person dies before Retraite Québec has recovered the full amount due, the balance shall be deducted, in the manner prescribed by Retraite Québec, from any other benefits payable under this plan in respect of that person.

O.C. 430-93, s. 90.

DIVISION V MAXIMUM BENEFITS

T.B. 213377, s. 10.

90.0.1. The pension amounts calculated pursuant to this Chapter may be granted only within the limits allowed under the Income Tax Act (R.S.C. 1985, c. 1 (5th suppl.)).

T.B. 213377, s. 10.

CHAPTER VI TEMPORARY MEASURES

O.C. 1197-97, s. 2.

DIVISION I APPLICABILITY AND MISCELLANEOUS PROVISIONS

O.C. 1197-97, s. 2.

90.1. This Chapter applies to a contributor who made an application to that effect received by the Commission before 11 July 1997 and who

(1)  did not enter, before 19 December 1996, into an agreement with his employer within the scope of measures designed to reduce personnel or any other measure designed to promote retirement or, as the case may be, waive such agreement entered into after 18 December 1996 within the scope of measures in force before that date; and

(2)  ceases to hold employment with his employer and retires before 3 July 1997.

O.C. 1197-97, s. 2.

90.2. A contributor who meets the condition provided for in paragraph 1 of section 90.1 and who is entitled to receive, before 2 July 1997 under the provisions of this Chapter, an immediate pension or an annual allowance may cease to hold employment with his employer, retire and prevail himself of the provisions of this Chapter no later than 2 July 1997 or at the end of a 30-day period after the date of receipt of an estimate of his pension or annual allowance made by the Commission, whichever is later, if he has sent to the Commission, within 30 days from the date of receipt of his statement of participation in the plan sent by the Commission for the application of the measures provided for in this Chapter, an application for an estimate of his pension or annual allowance.

O.C. 1197-97, s. 2.

90.3. A contributor who has benefited from the measures provided for in this Chapter and whose pension is no longer paid to him under the provisions concerning a pensioner’s return to work in the provincial Act is entitled to receive, as an adjustment to his pension, a lump sum corresponding to the amounts of pension that were not paid to him between 21 March 1997 and 1 September 1997.

O.C. 1197-97, s. 2.

90.4. Except in respect of a contributor who prevails himself of them, the measures in this Chapter apply until 2 July 1997, subject to the provisions prescribed by this Division.

O.C. 1197-97, s. 2.

DIVISION II TEMPORARY CRITERIA OF ELIGIBILITY FOR A PENSION

O.C. 1197-97, s. 2.

90.5. Notwithstanding Divisions II and III of Chapter V of this Title, a contributor who ceases to hold employment with his employer is entitled to

(1)  an immediate pension if, at the time of cessation,

(a)  his age and years of service giving entitlement to a pension total 80 or more, and if he is at least 50 years of age; or

(b)  he has attained 60 years of age; or

(2)  an annual allowance payable immediately if, at the time he ceases to hold employment, he has reached age 50 and has at least 10 years of service giving entitlement to a pension, and equal to the amount of pension calculated under subdivisions 0.1 and 1 of Chapter V of Title I less the smallest of the 2 products obtained by multiplying 3% of the pension amount

(a)  by 60 less his age, rounded to the nearest tenth of a year; or

(b)  by half the difference between 80 and the total of his age and years of service giving entitlement to a pension.

O.C. 1197-97, s. 2; T.B. 208552, s. 14.

90.6. Where a contributor dies while being entitled to an immediate pension or an annual allowance payable immediately under section 90.5, or where a contributor dies while holding a position with his employer and who could have benefited from the measures provided for in this Chapter before they cease to apply in his respect, both his surviving spouse and children are entitled to an annual allowance and sections 63 and 70 apply, adapted as required.

O.C. 1197-97, s. 2.

DIVISION III ACTUARIAL VALUATION

O.C. 1197-97, s. 2.

90.7. The Comité de retraite referred to in section 164 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10) shall request the Commission to cause to be prepared, not later than 31 October 1998, by the actuaries it designates, the valuation of additional actuarial commitments arising out of the introduction of the temporary criteria of eligiblity for a pension provided for in Division II and of the actuarial reductions that will not be made pursuant to that Division.

Notwithstanding the second paragraph of section 94, the assessment rate shall not be revised if that valuation reveals that the plan has an actuarial surplus sufficient to pay the costs resulting from the amendments provided for in this Chapter.

O.C. 1197-97, s. 2.

TITLE II SPECIAL

91. No person may claim a benefit, advantage or refund provided for in this plan unless he applies to Retraite Québec therefor.

Even in the absence of an application for payment, any benefit payable under this plan shall be paid not later than 31 December of the year in which the contributor reaches age 69. If the contributor reached that age before 1 July 1997, any benefit payable under this plan shall be paid to him in the same manner not later than 31 December of that year.

O.C. 430-93, s. 91; O.C. 1596-97, s. 3.

92. Retraite Québec is responsible for administering this plan.

O.C. 430-93, s. 92.

93. Every 3 years, Retraite Québec must have an actuarial valuation of the plan prepared. Retraite Québec must also have an annual updating of that valuation prepared.

The actuarial valuation and any updating thereof are prepared by actuaries designated by Retraite Québec.

O.C. 430-93, s. 93; T.B. 213377, s. 11.

93.1. The rates of contribution to the plan, determined in accordance with section 36, are based on the result of the actuarial valuation referred to in section 93, and the result of its updates. The rates applicable each year are revised on 1 January following the date of the actuarial valuation or of an update of it, as the case may be.

T.B. 213377, s. 11.

94. Where an amendment is made to this plan, Retraite Québec shall prepare a report indicating to what extent the amendment affects the results of the most recent actuarial valuation.

The contribution rate shall be revised on 1 January following the date on which an amendment resulting in an additional cost is made to the plan.

O.C. 430-93, s. 94.

95. All sums transferred between the federal pension plan and this plan shall be transferred in accordance with the provisions of the reciprocal transfer agreement, as defined in the agreement relating to the terms and conditions of transfer and integration applicable to federal employees, referred to in paragraph 1 or 2 of section 2, and shall be paid to the Caisse de dépôt et de placement du Québec.

O.C. 430-93, s. 95.

96. The employees’ contributions and the employer’s contributory amounts shall be paid to the Caisse de dépôt et de placement du Québec.

O.C. 430-93, s. 96.

97. Retraite Québec may withhold sums which it anticipates needing immediately for the purpose of paying benefits or refunds under this plan.

O.C. 430-93, s. 97.

98. Benefits due in the form of pensions, allowances, refunds or in other forms, as well as sums required in the case of transfers, shall be paid by Retraite Québec.

The sums required for those payments shall be taken firstly out of the sums withheld by Retraite Québec under section 97 and, thereafter, out of the sums paid to the Caisse de dépôt et de placement du Québec.

Where the fund established by the Caisse de dépôt et de placement du Québec has been exhausted, the sums shall be taken out of the Consolidated Revenue Fund of the Gouvernement du Québec.

O.C. 430-93, s. 98.

99. (Omitted).

O.C. 430-93, s. 99.

SCHEDULE I

(s. 36)

CONTRIBUTION RATES SET IN RELATION TO THE PLAN’S CAPITALIZATION RATIO ESTABLISHED WITHOUT TAKING INTO ACCOUNT THE 0.50% MARGIN FOR ADVERSE DEVIATION

Capitalization ratio             Contribution rate             Contribution rate
(without margin for                 applicable to                 applicable to
adverse deviation)              subparagraphs 1 and 3            subparagraph 2
                                of the first paragraph       of the first paragraph
                                  of section 36                  of section 36

       99%                              7.7%                          5.4%
       98%                              7.9%                          5.6%
       97%                              8.1%                          5.8%
       96%                              8.3%                          6.0%
       95%                              8.5%                          6.2%
       94%                              8.7%                          6.4%
       93%                              8.9%                          6.6%
       92%                              9.1%                          6.8%
       91%                              9.3%                          7.0%
       90%                              9.5%                          7.2%
    89% or less                         9.7%                          7.4%

T.B. 213377, s. 12.

REFERENCES

O.C. 430-93, 1993 G.O. 2, 2389

S.Q. 1995, c. 46, s. 31

O.C. 735-96, 1996 G.O. 2, 2878

O.C. 1197-97, 1997 G.O. 2, 5059

O.C. 1596-97, 1997 G.O. 2, 5893

O.C. 822-2000, 2000 G.O. 2, 4051

O.C. 889-2000, 2000 G.O. 2, 4052

S.Q. 2009, c. 56, s. 24

T.B. 208552, 2010 G.O. 2, 149

S.Q. 2010, c. 31, s. 174

T.B. 213377, 2013 G.O. 2, 3587

S.Q. 2015, c. 20, s. 61