R-9.2, r. 1 - Regulation under the Act respecting the Pension Plan of Peace Officers in Correctional Services

À jour au 1^er janvier 2014

Ce document a valeur officielle.

chapter R-9.2, r. 1

Regulation under the Act respecting the Pension Plan of Peace Officers in Correctional Services

Act respecting the Pension Plan of Peace Officers in Correctional Services

(chapter R-9.2, s. 130).

CHAPTER I PERSONS INELIGIBLE FOR THE PLAN

(s. 130, par. 1)

1. The class or conditions of employment and the remuneration or mode of remuneration by reason of which an employee is excluded from the plan are:

(1)  a person paid in fees or paid by the act;

(2)  a person hired to perform duties as a student or a coopérant;

(3)  a person hired to perform duties directly related to his training program in a college as student-employee;

(4)  a person hired under contract as an independent worker under the terms of whose contract no deduction at source is made;

(5)  a resident physician;

(6)  a person hired to perform a duty as a trainee, or a person who, under the guidance of a college, university or professional corporation, is required to complete a training period or clinic to obtain his final degree, except a person belonging to an employment group that provides for a class of trainees.

O.C. 1842-88, s. 1.

CHAPTER I.1 CLASSES OF EMPLOYEES FOR WHOM THE BASIS OF REMUNERATION IS 200 DAYS

(s. 130, par. 1.1)

T.B. 208553, s. 1.

1.1. The classes of employees who hold pensionable employment for which the basis of remuneration is 200 days are

(1)  teachers employed by a school board within the meaning of the Education Act (chapter I-13.3) whose employment is to teach students under that Act;

(2)  teachers employed by a school board within the meaning of the Education Act for Cree, Inuit and Naskapi Native Persons (chapter I-14) whose employment is to teach students under that Act; and

(3)  teachers employed by a private institution accredited for the purposes of subsidies under the Act respecting private education (chapter E-9.1) whose contract of employment ends on 30 June and whose employment is to teach students as part of the educational services dispensed at preschool, elementary school or secondary school, belonging to one of the categories referred to in paragraphs 1 to 4 of section 1 of that Act and subject, under section 25 of that Act, to the basic school regulation prescribed under the Education Act.

T.B. 208553, s. 1.

CHAPTER II BONUSES, ALLOWANCES, COMPENSATIONS OR OTHER ADDITIONAL REMUNERATION INCLUDED IN THE BASIC SALARY

(s. 130, par. 2)

O.C. 1842-88, c. II; O.C. 834-90, s. 1.

2. The basic salary also includes:

(1)  any lump sum paid to an employee, within the scope of the measures intended to protect his salary, following reassignment, career reorientation, demotion or another similar event, in order to compensate for a decrease in his previous basic salary;

(2)  any lump sum paid to an employee, within the scope of the measures intended to guarantee him a percentage increase in his basic salary during periodic salary reviews;

(3)  any additional remuneration paid to an employee who is a member of the Ordre des infirmières et infirmiers du Québec having already reached the maximum of the salary scale, following recognized post-school training in nursing care in accordance with the provisions of the collective labour agreement applying to the employee;

(3.1)  any additional remuneration paid to an employee whose job title requires a diploma of college studies (DEC) and is classified in the technicians group (code 2000) appearing in the document entitled Nomenclature des titres d’emploi, des libellés, des taux et des échelles de salaire du réseau de la santé et des services sociaux tabled on 15 December 2005 in the National Assembly by the Minister of Health and Social Services as Sessional Document 2575-20051215 or is classified under the job title “2697 Sociothérapeute” at the Institut Philippe-Pinel de Montréal, having already reached the maximum of the salary scale, following required and recognized post-school training in accordance with the provisions of the collective labour agreement applying to the employee; and

(4)  the lump sum paid to an employee, under an agreement concerning the extension of the collective labour agreements ending on 30 June 2002 or under conditions of employment arising from the agreements or established on the basis of the same parameters, that corresponds to a percentage of the basic salary of the employee.

O.C. 1842-88, s. 2; O.C. 834-90, s. 1; T.B. 200520, s. 1; T.B. 204927, s. 1.

CHAPTER III ACTUARIAL ASSUMPTIONS AND METHODS

(s. 130, par. 3)

3. For the purposes of this Regulation, the expression “CIA Standard” refers to the “Standard of Practice for Determining Pension Commuted Values” confirmed by the board of directors of the Canadian Institute of Actuaries on 15 June 2004.

O.C. 1842-88, s. 3; T.B. 201440, s. 1; T.B. 203097, s. 1.

3.0.1. For the purposes of sections 23, 41.7 and 41.12 of the Act, the actuarial values of the benefits are established using the following actuarial method and assumptions:

Actuarial method

The actuarial method is the “projected benefit method pro rated on service”.

In the case of section 23, if the employee is less than 5 years from retirement under the Government and Public Employees Retirement Plan or the Pension Plan of Peace Officers in Correctional Services, or less than 3 years from retirement under the Pension Plan of Management Personnel, the pensionable salary of the pension plans involved in the transfer prior to the qualification year under the Pension Plan of Peace Officers in Correctional Services must also be taken into account in determining the average pensionable salary.

Actuarial assumptions

(1)  Mortality rates:

The mortality rates are determined in accordance with the CIA Standard.

(2)  Interest rates:

For fully-indexed and non-indexed benefits:

The interest rates are those determined in accordance with the CIA Standard.

For partially indexed benefits:

The interest rates are determined according to the following formula:

((1 + interest rate for a non-indexed benefit) / (1 + indexing rate for a partially-indexed benefit)) - 1

The result must be rounded to the nearest multiple of 0.25%.

(3)  Indexing rate:

(a)  for a fully-indexed benefit according to the rate of increase in the pension index, the indexing rate is computed in the manner described in the CIA Standard;

(b)  for a benefit indexed according to the excess of the rate of increase in the pension index (PI) over 3% or to half of the rate of increase in the pension index, the indexing rate corresponds respectively to the excess of the indexing rate computed in the manner provided in subparagraph a over 3% or to half the indexing rate computed in the manner provided in that subparagraph.

In order to take into account the inflation rate variations, the following additions are made to the results of effective indexing formulas for actuarial value computation purposes.

Inflation        Addition to        Adjusted        Addition to        Adjusted
  level         the result of       indexing       the result of       indexing
                  the PI-3%           rate          the 50% PI,          rate
                   formula                          min. PI-3%
                                                     formula 
													 

   0.5               0.1               0.1             0.05               0.3

   1.0               0.1               0.1             0.10               0.6

   1.5               0.3               0.3             0.15               0.9

   2.0               0.5               0.5             0.20               1.2

   2.5               0.7               0.7             0.15               1.4

   3.0               1.0               1.0             0.20               1.7

   3.5               0.8               1.3             0.25               2.0

   4.0               0.6               1.6             0.30               2.3

   4.5               0.5               2.0             0.45               2.7

   5.0               0.4               2.4             0.50               3.0

(4)  Turnover rate: Nil

(5)  Disability rate: Nil

(6)  Proportion of employees with a spouse at retirement:

Males: 85%

Females: 60%

(7)  Age of spouse at retirement:

— the male spouse of the member is assumed to be 2 years older;

— the female spouse of the member is assumed to be 3 years younger;

(8)  Rate of increase of the MPE:

The annual increase of the maximum pensionable earnings within the meaning of the Québec Pension Plan corresponds to the annual rate of inflation plus 1%.

(9)  Rate of increase of salaries:

The annual increase in salaries corresponds to the annual increase of the MPE, increased by the annual rate of salary increase.

For the Pension Plan of Peace Officers in Correctional Services

Years of service               Annual rate
                               of increase

0-4 years                         2.5%
5-15 years                        0.4%
16 years and over                 0.2%                

For the Government and Public Employees Retirement Plan, the Teachers Pension Plan and the Civil Service Superannuation Plan

Years of service               Annual rate
                               of increase

0-10 years                        2.50%
1-20 years                        0.75%
21 years and ove                  0.25%                

For the Pension Plan of Management Personnel

Age                            Annual rate
                               of increase
18-35 years                       4.60%
36-50 years                       2.00%
51 years and over                 0.70%        

For the Pension Plan of the members of the Sûreté du Québec

Years of service               Annual rate
                               of increase

0 year                               0%
1 year                            6.35%
2 years                          11.80%
3 years                          12.90%
4 years                           9.80%
5 years                           8.70%
6 years                           8.00%
7 years                           4.50%
8-13 years                        0.45%
14 years                          2.45%
15-20 years                       0.45%
21 years                          2.45%
22 years or more                  0.45%        

(10)  Rate of increase in the Tax Act defined benefit limit:

The annual increase of Tax Act defined benefit limits corresponds to that of the maximum pensionable earnings as of each year of the indexing of that limit, in accordance with the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)).

(11)  Retirement age

For the purposes of section 41.12 of the Act, the retirement age is the age on the date on which membership ceases as determined pursuant to section 8.7 or 8.8 of the Act.

For the purposes of sections 23 and 41.7 of the Act, retirement is determined according to the following retirement rates:

For the Pension Plan of Peace Officers in Correctional Services:

For an employee who                  ­ 100% at age 50
would attain 32 years 
of service before age 50


For an employee who                  ­ 60% at 30 years of
would attain 30 years                service
of service before age 60
                                     ­ 100% (of the remaining 40%)
                                     at 32 years of service


For an employee who                  ­ 60% at age 60
would attain 60 years
of age without having
more than 30 years of
service

                                     ­ 100% (of the remaining 40%)
                                     at 32 years of service or
                                     age 65 if the employee
                                     attains that age without
                                     attaining 32 years of
                                     service


For an employee who                  ­ 100% 6 months after
would attain 32 years                the transfer
of service at age 50 or
older and who is less
than 60 years of age and
has 30 years of service
or more but less than
32 years of service at
the time of transfer


For an employee with                 ­ 100% 6 months after
at least 32 years of service         the transfer
at the time of transfer


For an employee who                  ­ 60% 6 months after
is 60 years of age or                the transfer
older at the time of
transfer

                                     ­ 100% (of the remaining 40%)
                                     at 32 years of service or age 65
                                     if the employee attains that age
                                     without attaining 32 years of
                                     service        

If the first 2 criteria apply, the assumption retained is that of the first criteria attained.

If the last 2 criteria apply, the assumption retained is that of the criteria of 32 years of service.

For the Government and Public Employees Retirement Plan:

For an employee who                  ­ 100% at age 55
would attain 35 years 
of service before age 55


For an employee who                  ­ 100% at 35 years of
would attain 35 years                service
of service at age 55 or
older but before age 60


For an employee who                  ­ 60% at age 60
would attain age 60
without having more
than 35 years of service

                                     ­ 100% (of the remaining 40%)
                                     at 35 years of service or
                                     age 65 if the employee attains
                                     that age without attaining
                                     35 years of service


For an employee with                 ­ 100% 6 months after
at least 35 years of                 the transfer 
service at the time of 
transfer


For an employee who                  ­ 60% 6 months after
is 60 years of age or                the transfer
older at the time of 
transfer

                                     ­ 100% (of the remaining 40%)
                                     at 35 years of service or
                                     age 65 if the employee attains
                                     that age without attaining
                                     35 years of service        

If the last 2 criteria apply, the assumption retained is that of the criteria of 35 years of service.

For the Pension Plan of Management Personnel:

For an employee who                  ­ 100% at age 55
would attain 35 years
of service before age 55


For an employee whose                ­ 60% at criteria 88
age and years of service
would add up to 88
(criteria 88) at age 54
or older but before age 60

                                     100% (of the remaining 40%)
                                     at 35 years of service or
                                     age 65 if the employee attains
                                     that age without attaining
                                     35 years of service


For an employee who                  ­ 60% at age 60
would attain 60 years of
age without having more
than 28 years of service

                                     ­ 100% (of the remaining 40%)
                                     at age 65


For an employee whose                ­ 60% 6 months after
age and years of service             the transfer
add up to 88 or more at
age 54 or older but before
age 60 at the time of
transfer

                                     ­ 100% (of the remaining 40%)
                                     at 35 years of service or
                                     age 65 if the employee attains
                                     that age without attaining
                                     35 years of service


For an employee who                  ­ 100% 6 months after
has at least 35 years of             the transfer
service at the time of
transfer


For an employee who                  ­ 60% 6 months after
is 60 years of age or                the transfer
older at the time of 
transfer


                                     ­ 100% (of the remaining 40%)
                                     at 35 years of service or
                                     age 65 if the employee attains
                                     that age without attaining
                                     35 years of service        

If the last 2 criteria apply, the assumption retained is that of the criteria of 35 years of service.

For the Pension Plan of members of the Sûreté du Québec:

For an employee whose                ­ 20% at criteria 75
age and years of service
would add up to 75
(criteria 75) at age 50 or
older but before age 60

                                     ­ 100% (of the remaining 80%)
                                     at 25 years of service or
                                     age 60 if the employee attains
                                     that age without attaining
                                     25 years of service


For an employee who                  ­ 20% at 25 years of 
would attain 25 years                service 
of service before age 50

                                     ­ 100% (of the remaining 80%)
                                     at criteria 75


For an employee who                  ­ 100% at age 60 
would attain age 60
without having more
than 15 years of service


For an employee whose                ­ 20% 6 months after
age and years of service             the transfer 
add up to 75 or more at
the time of transfer
while the employee is
less than 60 years of age
and has less than 25 years
of service

                                     ­ 100% (of the remaining 80%)
                                     at 25 years of service or
                                     age 60 if the employee attains
                                     that age without attaining
                                     25 years of service


For an employee who                  ­ 20% 6 months after
has 25 years of service              the transfer
or more without criteria 75
at the time of transfer

                                     ­ 100% (of the remaining 80%)
                                     at criteria 75


For an employee who                  ­ 100% 6 months after
is 60 years of age or                the transfer.
older at the time of
transfer or whose age
and years of service add
up to 75 or more with a
minimum of 25 years
of service        

T.B. 203097, s. 1; T.B. 206318, s. 1; T.B. 208553, s. 2.

CHAPTER III.1 LIMITS TO ADDED PENSION AMOUNTS

(s. 130, par. 3.1)

T.B. 199294, s. 1.

3.1. For the purposes of section 41.6 of the Act, the sum of the amounts that an employee may add to his or her pension may not exceed the amount “M” which corresponds to the lower of “M1” and “M2”, calculated as follows:

M1 = (F x NL x 2.0% x TM) - CRRR.

M2 = F x N x (1.1% x TM + $230).

T.B. 199294, s. 1.

3.2. The amount added to the employee’s pension shall correspond to the sum of the following amounts:

(1)  the amount “MO” which corresponds to the lower of “MO1” and “MO2”, calculated as follows:

i.  MO1 = [NL x [(F x 2.0% x TM) - (0.7% x (the lesser of TM and MGA))]] - CRRR

ii.  MO2 = F x N x 1.1% x TM

(2)  an amount equal to the difference between the amount “M” determined in section 3.1 and the amount “MO” determined in paragraph 1 of this paragraph, if the person is under 65 years of age when the pension becomes payable. That amount shall be paid until the end of the month during which the pensioner reaches 65 years of age.

T.B. 199294, s. 1.

3.3. For the purposes of sections 3.1 and 3.2,

CRRR represents the amount of the pension credit on the date of retirement and takes into account any applicable actuarial reduction or the increase provided for in section 93 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10);

F represents 1 less the percentage of the actuarial reduction applicable to the employee’s pension;

MGA represents the average Maximum Pensionable Earnings within the meaning of the Act respecting the Québec Pension Plan (chapter R-9);

N represents the number of years and parts of a year added, solely for purposes of eligibility for a pension, under section 41.2 of the Act;

NL represents the minimum between N and 35 less the number of years of service credited to the plan; and

TM represents

(1)  for a pension credit pertaining to a year prior to 1992, the average pensionable salary determined in accordance with subdivision 2.0.1 of Division I of Chapter IV of the Act on the basis of average annualized pensionable salaries that do not take into account the limit provided for in the first paragraph of section 14.1 of the Act;

(2)  for a pension credit pertaining to a year after 1991, the average pensionable salary determined in accordance with that subdivision 2.0.1 of the Act on the basis of average annualized pensionable salaries that take into account the limit provided for in the first paragraph of section 14.1 of the Act.

In respect of an employee who ceases to participate in the plan before 1 January 2010, TM has the meaning assigned by this section as it reads on the date on which the employee ceases to participate.

T.B. 199294, s. 1; T.B. 208553, s. 3.

3.4. The limits provided for in this Chapter may not exceed the limits authorized under the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)).

T.B. 199294, s. 1.

CHAPTER IV PHYSICAL OR MENTAL DISABILITY

(s. 130, par. 4)

4. An employee is physically or mentally disabled if he suffers from a serious, prolonged pathological condition.

A pathological condition is serious if it makes the employee totally incapable of performing the work required by his position for an extended period of time.

A pathological condition is prolonged if it will last indefinitely, that is, if it is unlikely that a cure is possible in the present state of medical knowledge.

O.C. 1842-88, s. 4.

CHAPTER V COMPUTATION OF PENSION

(s. 130, pars. 5, 5.1, 5.2 and 5.3)

O.C. 1842-88, c. V; T.B. 208553, s. 4.

5. In determining the contributory period, the number of contributory days in the period during which an employee contributed and was exempted from contributing during a year, and during which the days and parts of days were otherwise credited with contributions does not include the days and parts of days of absence without pay not credited to the employee.

O.C. 1842-88, s. 5.

5.1. The contributory period of an employee who simultaneously holds, for the first time during a year, more than one employment under the plan is established, for the part of the year where more than one employment is simultaneously held, by retaining a reference employment from among the employments simultaneously held. The reference employment is the employment held by the employee on the day before the day on which more than one employment begin to be held simultaneously or, if none of those employments is held on that preceding day, the employment with the highest annual basic salary.

For each subsequent year, the reference employment retained to establish the contributory period remains the same as long as the employee continues to hold that employment.

The annual basic salary considered is the salary paid or that would have been paid to the employee according to the employment conditions applicable to the employee on the last credited day of the year.

T.B. 208553, s. 5.

5.2. Where, in a year, an employee ceases to hold the reference employment retained pursuant to section 5.1 and, before the end of that year, the employee simultaneously holds again more than one employment under the plan, that employee’s contributory period is established, for the part of the year where more than one employment is simultaneously held, by retaining as new reference employment from among the employments then held the employment held on the day before the day on which more that one employment begin to be simultaneously held or, if none of those employments is held on that preceding day, the employment with the highest annual basic salary.

Where, in a year, an employee ceases to hold the reference employment retained pursuant to section 5.1 and continues to simultaneously hold more than one employment under the plan, that employee’s contributory period is established, for the part of the year that begins on the first day following the day on which the employee ceases to hold the reference employment, by retaining as new reference employment from among the employments held on that first day the employment with the highest annual basic salary.

T.B. 208553, s. 5.

5.3. The daily factor used to compute the annualized pensionable salary of an employee who holds employment under the plan for which the basis of remuneration is 260 days is 260.9.

However, that factor is 260 if the employee is

(1)  a teacher employed by a private institution accredited for the purposes of subsidies under the Act respecting Private Education (chapter E-9.1) whose employment is to teach students as part of the educational services dispensed at preschool, elementary school or secondary school, belonging to one of the categories referred to in paragraphs 1 to 4 of section 1 of that Act and subject, under section 25 of that Act, to the basic school regulation prescribed under the Education Act (chapter I-13.3);

(2)  a teacher employed by a private educational institution within the meaning of the Act respecting private education or employed by a college established by the General and Vocational Colleges Act (chapter C-29) who teaches general or vocational education at the college level; or

(3)  a teacher employed by the Collège Marie de France, the Collège Stanislas or The Priory School inc. and whose employment is to teach students.

T.B. 208553, s. 5.

5.4. The annual basic salary of an employee who holds pensionable employment for which the basis of remuneration is 200 days and who is paid according to an hourly rate is established by multiplying that rate by the maximum number of hours that may be paid in a year. That number is

(1)  800, in the case of a teacher in adult education or vocational training or a teacher hired by the lesson at the secondary level;

(2)  920, in the case of a teacher hired by the lesson at the preschool or elementary level;

(3)  1,000, in the case of a casual supply teacher.

T.B. 208553, s. 5.

CHAPTER VI PERCENTAGE APPLICABLE

(s. 130, par. 6)

6. (Revoked).

O.C. 1842-88, s. 6; O.C. 707-94, s. 2.

CHAPTER VII EDUCATIONAL INSTITUTIONS

(s. 130, par. 7)

7. For the purposes of section 59 of the Act, the other educational institutions are:

(1)  an institution holding a permit under the Act respecting private education (chapter E-9.1);

(2)  the Université du Québec its constituent universities and the superior schools and research institutes constituted under the Act respecting the Université du Québec (chapter U-1);

(3)  a university establishment within the meaning of subparagraph 1 of paragraph a of section 1 of the University Investments Act (chapter I-17);

(4)  an institution outside Québec offering regular courses equivalent to the regular courses of the institutions mentioned in Schedule I to the Act respecting the Teachers Pension Plan (chapter R-11) and in paragraphs 1, 2 and 3.

O.C. 1842-88, s. 7.

CHAPTER VII.1 ADDITIONAL BENEFITS

(s. 130, par. 7.1)

O.C. 1651-97, s. 1.

7.1. A person is entitled to additional benefits in respect of the years of service credited to him under the Pension Plan of Peace Officers in Correctional Services between 31 December 1987 and 1 January 1992, excluding those that have been transferred to that plan, on the following conditions:

(1)  the person was participating in the Pension Plan of Peace Officers in Correctional Services on 31 December 1995 or was receiving a pension on that date;

(2)  the person was not refunded the contributions paid into that plan between 31 December 1987 and 1 January 1992 or the contributions exempted from paying during that period; and

(3)  the person has not transferred his years of service or parts thereof credited under that plan to another pension plan.

For the purposes of the first paragraph, the years of service credited are those for which the employee has accumulated service and paid contributions, those for which he was exempted from contributing or, in the case of maternity leave, those that have otherwise been credited in respect of that leave.

O.C. 1651-97, s. 1.

7.2. A person referred to in section 7.1, excluding the person referred to in section 7.9, who retires after 31 December 1996 while under age 65 is entitled to receive a yearly additional benefit equal to $310 for each year of service credited. That benefit shall be indexed and adjusted, where applicable, in accordance with sections 7.4 and 7.7.

O.C. 1651-97, s. 1.

7.3. A person referred to in section 7.1, excluding a person referred to in section 7.9, who retired before 1 January 1997 while under age 65 is entitled to receive a yearly additional benefit equal to $310 for each credited year of service. That benefit shall be adjusted, where applicable, in accordance with section 7.7 on the date of retirement as if the benefit had been granted on that date.

The benefit established pursuant to the first paragraph shall be granted to the person from 1 January 1997.

O.C. 1651-97, s. 1.

7.4. The additional benefit established pursuant to section 7.2 shall be increased each year at an indexation rate of 2% from 1 January 1998 to January 1 of the year in which payment begins.

O.C. 1651-97, s. 1; T.B. 198913, s. 1.

7.5. The additional benefit shall be granted from the date on which a person retires. Where that date is prior to the date on which a person reaches the age of 55, the person may choose to postpone payment to the first day of the month that follows the day of the month in which that age is reached. However, if a pension is granted to a person under paragraph 5 of section 44 of the Act respecting the Pension Plan of Peace Officers in Correctional Services (chapter R-9.2) before the age of 55, the additional benefit shall be granted from the month following the month in which that age is reached.

O.C. 1651-97, s. 1; T.B. 198913, s. 2.

7.6. An additional benefit shall be paid until the earlier of the following dates:

(1)  the first day of the month following the person’s death; or

(2)  the first day of the month following the person’s 65th birthday.

O.C. 1651-97, s. 1.

7.7. If the additional benefit is granted before the person reaches age 55, the benefit shall be reduced by 1/12 of 7% per month, calculated for each month comprised between the date on which the benefit is granted and the person’s 55th birthday, for as long as it is paid.

If the additional benefit is granted after the person reaches age 55, the benefit shall be increased by 1/12 of 7% per month, calculated for each month comprised between the person’s 55th birthday and the date on which the benefit is granted, for as long as it is paid.

O.C. 1651-97, s. 1.

7.8. A person referred to in section 7.3 is also entitled to a lump sum corresponding to the additional benefits he would have received since the date of retirement until the earliest of the following dates:

(1)  the first day of the month following the person’s death;

(2)  the first day of the month following the person’s 65th birthday; or

(3)  31 December 1996.

Those additional benefits shall be established and granted in accordance with section 7.3. In the event of death, the benefits shall be paid to the spouse or, failing that, to the successors.

O.C. 1651-97, s. 1.

7.9. A person referred to in section 7.1 who retired before 1 January 1998 at age 64 or older is entitled to a lump sum equal to $505.30 for each year of service credited.

If the person dies before receiving that lump sum, it shall be paid to the spouse or, failing that, the successors.

O.C. 1651-97, s. 1.

CHAPTER VII.2 SUPPLEMENTARY BENEFITS

(s. 130, par. 7.2)

T.B. 198913, s. 3.

DIVISION I SUPPLEMENTARY BENEFIT GRANTED TO AN EMPLOYEE WHO RETIRES BETWEEN 31 AUGUST 2003 AND 1 JANUARY 2004

T.B. 198913, s. 3.

7.10. A supplementary benefit shall be granted to an employee who meets the following conditions:

(1)  the employee is under 65 years of age;

(2)  the employee has accumulated at least 28 years of credited service;

(3)  the employee retires between 31 August 2003 and 1 January 2004;

(4)  the employee is a member of the plan on the day preceding retirement; and

(5)  the employee was not refunded the contributions paid into the plan between 31 December 1994 and 1 January 2001 or the contributions exempted from paying during that period.

T.B. 198913, s. 3.

7.11. The employee referred to in section 7.10 is entitled to an annual benefit equal to $150 per year of service credited to the plan up to 25 years of service.

The benefit is payable until the date determined in section 7.6.

T.B. 198913, s. 3.

DIVISION II SUPPLEMENTARY BENEFIT RELATED TO THE YEARS OF CREDITED SERVICE BETWEEN 31 DECEMBER 1994 AND 1 JANUARY 2001

T.B. 198913, s. 3.

7.12. A supplementary benefit, in respect of each year of service credited to the plan between 31 December 1994 and 1 January 2001, except the years that were transferred to the plan, shall be granted to an employee who retires after 31 December 2003 while under 65 years of age. The years of credited service shall be those referred to in the second paragraph of section 7.1.

An employee is entitled to an annual benefit equal to $250 per year of service referred to in the first paragraph.

T.B. 198913, s. 3.

7.13. A supplementary benefit granted by this Division shall be payable to an employee in accordance with sections 7.5 to 7.7 subject to section 7.14.

A supplementary benefit shall be indexed annually by 2% from 1 January 2002 to the first January of the year during which payment begins.

T.B. 198913, s. 3.

7.14. A pensioner who retired between 1 January 1995 and 15 April 2001 is entitled, from the latter date, to the supplementary benefit provided for in this Division. A pensioner who receives a pension under subparagraph 5 of the first paragraph of section 44 of the Act is entitled to the supplementary benefit only from the first day of the month following the month in which the age of 55 is reached, if on 15 April 2001 the pensioner had not reached that age.

If, on 15 April 2001, the pensioner had not reached the age of 55, the pensioner’s benefit shall be reduced, for the duration of its term, by 1/12 of 7% per month between 15 April 2001 and the month in which the age of 55 is reached. The pensioner may choose to postpone payment to the first day of the month that follows the month in which that age is reached.

If, on 15 April 2001, the pensioner had reached the age of 55, the pensioner’s benefit shall be increased, for the duration of its term, by 1/12 of 7% per month between the date on which the age of 55 is reached and 15 April 2001. That rule also applies to a pensioner who receives a pension under subparagraph 5 of the first paragraph of section 44 of the Act.

T.B. 198913, s. 3.

7.15. An employee who, between 14 April 2001 and 1 January 2004, is entitled to a pension under subparagraph 5 of the first paragraph of section 44 of the Act is also entitled to the supplementary benefit provided for in this Division, when there is no entitlement to the supplementary benefit provided for in Division I.

T.B. 198913, s. 3.

DIVISION III MISCELLANEOUS

T.B. 198913, s. 3.

7.16. The benefits referred to in this Chapter shall be added to the amount of the pension paid to the employee. However, section 100 of the Act does not apply in respect of the amount of those benefits.

T.B. 198913, s. 3.

7.17. For the purposes of section 52.1 of the Act, where the pension amounts including supplementary benefits referred to in this Chapter and the additional benefits referred to in Chapter VII.1 exceed the limits authorized under the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), the amount of the supplementary benefits referred to in this Chapter shall be reduced first.

Where the amount of the supplementary benefits has been reduced pursuant to the first paragraph, the limits referred to in that paragraph, established on the date on which the employee retires and under which the reduction is made, are indexed according to the rate of increase in the Pension Index within the meaning of the Act respecting the Québec Pension Plan (chapter R-9) on 1 January of each year during which those benefits are paid to the employee. The first index adjustment of the amount is made proportionately to the number of days for which the benefit was or would have been paid during the year in which the employee ceased to participate in this plan in relation to the total number of days in that year. The supplementary benefits shall be recomputed in the manner prescribed by this Chapter to take the index adjustment into account.

T.B. 198913, s. 3; T.B. 201440, s. 2.

7.17.1. Division I of this Chapter applies to an employee who, on 1 January 2002, belonged to the subclass referred to in paragraph 9 of Division III of the Schedule to the Regulation respecting the designation of classes or subclasses of employees and the determination of special provisions applicable to employees of the Institut Pinel (O.C. 1443-92, 92-09-30). For the purposes of paragraph 5 of section 7.10, the contributions are those that the employee paid or the contributions the employee was exempted from paying to the Government and Public Employees Retirement Plan.

Division II of this Chapter applies to an employee referred to in the first paragraph. For the purposes of section 7.12, the term “plan” refers to the Government and Public Employees Retirement Plan.

T.B. 201440, s. 3.

7.18. A pensioner may not accumulate the benefits referred to in Divisions I and II.

T.B. 198913, s. 3.

CHAPTER VII.2.1 COMPUTATION OF INTEREST

(s. 130, par. 7.3.1)

T.B. 207218, s. 1.

7.18.1. For the purposes of the third paragraph of section 72 of the Act, the interest rate applicable to the contributions referred to in subparagraph 1 of the second paragraph of that section is determined according to the formula provided for in Schedule I.

T.B. 207218, s. 1; T.B. 213343, s. 1.

7.18.2. Interest is computed at the rates in Schedules II and III of the Act, according to the periods of application of those rates provided for in the sections concerned in the Act. Where the sections do not provide the date on which interest ceases to accrue, the interest is computed up to the first day of the month in which the refund is made.

T.B. 207218, s. 1; T.B. 213343, s. 2.

CHAPTER VII.2.2 DETERMINATION OF THE RATES OF INTEREST

(s. 130, 1st par., subpar. 7.3.1.1)

T.B. 213343, s. 3.

DIVISION I RATE OF INTEREST ACCORDING TO THE RATES OF RETURN

T.B. 213343, s. 3.

7.18.3. The rate of interest in Division II of Schedule II to the Act, applicable from 1 June of a given year to 31 May of the following year, is determined by computing the geometrical mean of the annual rates of return for the 3-year period ending on 31 December of the year preceding the reference year, according to the formula in Schedule II.

T.B. 213343, s. 3.

7.18.4. The annual rate of return is the rate determined by the Caisse de dépôt et placement du Québec as of 31 December of each year, taking into account the categories of amounts referred to in subparagraphs 1, 2, 3 and 5 of the first paragraph of section 134 of the Act, for the employees’ contribution fund under the Pension Plan of Peace Officers in Correctional Services, after deduction of the management expenses.

Despite the foregoing, the annual rates of return for the years 2011, 2012 and 2013 where any of the rates is used to compute the geometrical mean referred to in section 7.18.3, are the rates determined by the Caisse de dépôt et placement du Québec as of 31 December of each of those years, taking into account the categories of amounts referred to in subparagraphs 1, 2 and 4 of the first paragraph of section 127 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10), for the employees’ contribution fund under that plan, after deduction of the management expenses.

T.B. 213343, s. 3.

DIVISION II RATE OF INTEREST ACCORDING TO AN EXTERNAL INDEX

T.B. 213343, s. 3.

7.18.5. The rate of interest in Schedule III to the Act is applicable from 1 June of a given year to 31 May of the following year. The rate is determined by computing the arithmetic mean, for the 12-month period ending on 31 December of the preceding year, of the nominal rates of interest on negotiable bonds issued by the Government of Canada for a term of 3 to 5 years as compiled by Statistics Canada and published in the Bank of Canada Review under the identification No. V-122485 in the CANSIM System.

T.B. 213343, s. 3.

CHAPTER VII.3 SPOUSE’S WAIVER

(s. 130, par. 7.3.2)

T.B. 206220, s. 1.

7.19. The waiver or revocation notice required under the second paragraph of section 74.0.2 of the Act must be dated and indicate the name and address of the employee, of the person who ceased to participate in the plan or of the pensioner, as the case may be, and the name and address of the spouse.

T.B. 206220, s. 1.

CHAPTER VIII ACTUARIAL VALUE

(s. 130, par. 8)

8. The actuarial value of the pension referred to in section 103 of the Act is determined using the following actuarial method and assumptions:

Actuarial method

The actuarial method is the “benefit allocation” method.

Actuarial assumptions

(1)  Mortality rates:

The mortality rates are those determined in accordance with the CIA Standard.

(2)  Interest rates:

For fully-indexed and non-indexed benefits:

The interest rates are those determined in accordance with the CIA Standard.

For partially-indexed benefits:

The interest rates are those determined according to the following formula:

((1 + interest rate for a non-indexed benefit) / (1 + indexing rate for a partially-indexed benefit)) - 1

The result must be rounded to the nearest multiple of 0.25%.

(3)  Indexing rate:

(a)  for a fully-indexed benefit according to the rate of increase in the pension index, the indexing rate is computed in the manner described in the CIA Standard;

(b)  for a benefit indexed according to the excess of the rate of increase in the pension index (PI) over 3% or to half of the rate of increase in the pension index, the indexing rate corresponds respectively to the excess of the indexing rate computed in the manner provided in subparagraph a over 3% or to half the indexing rate computed in the manner provided in that subparagraph.

In order to take into account the inflation rate variations, the following additions are made to the results of effective indexing formulas for actuarial value computation purposes.

 Inflation       Addition to       Adjusted       Addition to       Adjusted 
   level        the result of      indexing      the result of      indexing 
                  the PI-3%          rate         the 50% PI,         rate   
                   formula                        min. PI-3%
                                                   formula

    0.5              0.1              0.1            0.05              0.3

    1.0              0.1              0.1            0.10              0.6

    1.5              0.3              0.3            0.15              0.9

    2.0              0.5              0.5            0.20              1.2

    2.5              0.7              0.7            0.15              1.4

    3.0              1.0              1.0            0.20              1.7

    3.5              0.8              1.3            0.25              2.0

    4.0              0.6              1.6            0.30              2.3

    4.5              0.5              2.0            0.45              2.7

    5.0              0.4              2.4            0.50              3.0

(4)  Turnover rate: Nil

(5)  Disability rate: Nil

(6)  Proportion of married persons at death:

___________________________________________

        Age             Male      Female   
___________________________________________

  18 - 64 years old      85%        65%    
___________________________________________

  65 - 79 years old      80%        30%    
___________________________________________

  80 - 109 years old     60%        10%    
___________________________________________

    110 years old         0%         0%    
___________________________________________    

(7)  Age difference between spouses at death:

— the male spouse of the member is assumed to be 1 year older;

— the female spouse of the member is assumed to be 4 years younger.

(8)  Retirement age:

Age attained at the date of payment of the actuarial value.

O.C. 1842-88, s. 8; T.B. 203097, s. 2.

CHAPTER VIII.1 RATE OF CONTRIBUTION

(s. 130, 1st par., subpars. 3.2, 7.3 and 9)

O.C. 1530-2001, s. 1; T.B. 213343, s. 4.

8.0.1. (Implicitly revoked, 2002, c. 30, s. 165 et 2004, c. 39, s. 59).

O.C. 1530-2001, s. 1.

8.0.2. From 1 January 2013, the contribution rate provided for in the first paragraph of section 42 of the Act is equal to 6.5%.

From 1 January 2014, and from 1 January of each subsequent year, the rate of contribution provided for in the first paragraph of section 42 of the Act is the rate in Schedule III.

O.C. 1180-2012, s. 1; T.B. 213343, s. 5.

8.0.3. From 1 January 2013, the supplementary contribution rate provided for in the second paragraph of section 42 of the Act is equal to 0%.

T.B. 212058, s. 1.

8.0.4. From 1 January 2014, the additional rate of contribution provided for in the third paragraph of section 42 of the Act is the rate in Schedule IV, for the period indicated therein.

T.B. 213343, s. 6.

CHAPTER IX LIMIT APPLICABLE TO THE PENSIONABLE SALARY, AND RULES AND PROCEDURES FOR COMPUTING THE PENSION

(s. 130, par. 10)

O.C. 707-94, s. 3.

8.1. The pensionable salary, for the purpose of establishing the cost of redeeming a year prior to 1 January 1990 in which the employee was not a member of a pension plan within the meaning of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.), shall not exceed amount “M” in the following formula:

A + (0.78125% x B) = M

__________________

2.1875%

“A” represents 2/3 of $1,725 or of the defined benefit limit applicable under the Income Tax Act for the year in which the application for redemption is received at the Commission administrative des régimes de retraite et d’assurances, whichever amount is higher;

“B” represents the portion of the pensionable salary that does not exceed the maximum pensionable earnings within the meaning of the Act respecting the Québec Pension Plan (chapter R-9) and applicable for the year in which the application for redemption is received at the Commission.

The pensionable salary, for the purpose of establishing the cost of redeeming part of a year prior to 1 January 1990, shall be divided by the service credited being redeemed, and the amount resulting from that division shall not exceed amount “M” in the first paragraph.

O.C. 707-94, s. 3; T.B. 202422, s. 1.

8.2. If the employee retires on the date of his 65th birthday or after that date, the part of the pension relating to years or parts of a year prior to 1 January 1990 in which the employee was not a member of a pension plan within the meaning of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.) and that were redeemed shall not exceed the amount obtained by multiplying 2/3 of $1,725 or of the defined benefit limit applicable for the year of retirement under the Income Tax Act, whichever amount is higher, by the number of years or parts of years of service credited under the redemption.

If the employee retires before the date of his 65th birthday, the part of the pension relating to those years or parts of years shall not exceed the amount obtained pursuant to the first paragraph increased by the amount obtained by multiplying the amount calculated pursuant to section 51 of the Act, taking into account the limit provided for in section 52 of the Act, by the fraction representing the number of years or parts of years of service credited being redeemed over the number of years or parts of years of service credited after 31 December 1965.

O.C. 707-94, s. 3; T.B. 202422, s. 2.

CHAPTER X PERIODS OF ABSENCE THAT MAY BE CREDITED UNDER THE PENSION PLAN OF PEACE OFFICERS IN CORRECTIONAL SERVICES

(s. 130, par. 11)

O.C. 707-94, s. 3; T.B. 202422, s. 3.

8.3. The periods during which the employee is absent, after 31 December 1991 except the periods during which the employee was exempt from any contribution under section 18 or 19 of the Act and the periods for which the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.) provides for the issue of an equivalence factor for past service, and which may be credited under the Pension Plan of Peace Officers in Correctional Services shall not exceed a total of 5 years of service. Notwithstanding the foregoing, in the case of leave related to maternity, paternity or adoption, that total may be increased by not more than 3 years of service.

For the purposes of the first paragraph, a period of absence corresponds to the difference between the service credited under the Pension Plan of Peace Officers in Correctional Services and the service that would have been credited under that plan in proportion to the salary received by the employee. For the purposes of that paragraph, leave related to maternity, paternity or adoption constitutes all or part of a period beginning at the time of the birth or adoption of a child and ending not later than 12 months after any of those events.

O.C. 707-94, s. 3; T.B. 202422, s. 4.

8.3.1. An employee may be credited under the plan with each period of absence without pay prior to 1 January 1990, without exceeding 2 years of service except in the case of a period of absence related to total disability, educational leave, sabbatical leave, maternity leave, paternity leave or adoption leave.

T.B. 202422, s. 5.

8.3.2. Despite section 8.3.1, an employee may be credited under the plan, without exceeding 3 years of service, with each period of absence prior to 1 January 1990 during which the employee held employment with the Government of Canada, the government of another province, a union, an association representing management personnel, a charitable organization or an educational institution if no contribution concerning that period has been accumulated in another plan.

T.B. 202422, s. 5.

CHAPTER X.I ANNUAL BASIC SALARY

(s. 130, par. 14)

T.B. 202422, s. 5.

8.3.3. If the total service credited to the employee is reduced under section 16 of the Act to which section 143.18 of the Act refers, the annual basic salary of the employee or person, for the years 1989 to 1992, corresponds to the pensionable salary received for the year concerned divided by the service credited for that year.

The salary must not exceed, for each of the years concerned, the maximum of the salary scale for peace officers in correctional services applicable for the years 1989 to 1992 respectively.

T.B. 202422, s. 5.

CHAPTER XI

(Revoked)

O.C. 1494-96, s. 1; T.B. 213343, s. 7.

8.4. (Revoked).

O.C. 1494-96, s. 1; O.C. 758-97, s. 1; O.C. 348-2000, s. 1; O.C. 66-2006, s. 1; T.B. 213343, s. 7.

9. Omitted.

O.C. 1842-88, s. 9.

SCHEDULE I

(s. 7.18.1)

RATE OF INTEREST

Under section 7.18.1, the rate of interest applicable to the contributions referred to in subparagraph 1 of the second paragraph of section 72 of the Act corresponds to rate I determined according to the following formula:

I = [(1+i1) nb1/365 × (1+i2) nb2/365] 1/2 -1, where

i1 represents the rate of interest in Schedule II to the Act applicable at the beginning of the employee’s period of membership until the earlier of the following dates: the date of the end of the period of application of the rate of interest, the date of the end of the period of membership or 31 December of the year concerned;

nb1 represents the number of days during which the rate of interest represented by the variable i1 is applicable;

i2 represents, where the employee’s period of membership ends on a date later than the date of the end of the period of application of the rate of interest represented by the variable i1, the rate of interest in Schedule II to the Act applicable on the day following the end of the period of application until the earlier of the following dates: the date of the end of the period of membership or 31 December of the year concerned;

nb2 represents the number of days during which the rate of interest represented by the variable i2 is applicable.

Where the period of membership ends on a date prior to the date of the end of the period of application of the rate of interest represented by the variable i1, the term (1+i2) nb2/365 is equal to 1.

T.B. 213343, s. 8.

SCHEDULE II

(s. 7.18.3)

COMPUTATION OF THE RATE OF INTEREST

The formula for the computation of the rate of interest for the reference year is the following:

iy = ( (1 + Ty-1 ) ( 1 + Ty-2 ) ( 1 + Ty-3 ) ) 1/3 - 1, where:

Ty-1 represents the rate of return for the year preceding the reference year

Ty-2 represents the rate of return for the year preceding the reference year by 2 years

Ty-3 represents the rate of return for the year preceding the reference year by 3 years

T.B. 213343, s. 8.

SCHEDULE III

(s. 8.0.2)

RATE OF CONTRIBUTION

Year Rate

2014 8.3%

2015 9.3%

T.B. 213343, s. 8.

SCHEDULE IV

(s. 8.0.4)

ADDITIONAL RATE OF CONTRIBUTION

Period Rate

1 January to 31 December 2014 1.5%

1 January to 31 December 2015 2%

From 1 January 2016 2.5%

T.B. 213343, s. 8.

REFERENCES

O.C. 1842-88, 1988 G.O. 2, 4149

O.C. 834-90, 1990 G.O. 2, 1593

S.Q. 1990, c. 87, s. 105

O.C. 707-94, 1994 G.O. 2, 2045

O.C. 1494-96, 1996 G.O. 2, 4987

O.C. 758-97, 1997 G.O. 2, 2737

O.C. 1651-97, 1997 G.O. 2, 6291

O.C. 348-2000, 2000 G.O. 2, 1929

O.C. 1530-2001, 2002, G.O. 2, 245

T.B. 198913, 2002 G.O. 2, 5763

T.B. 199294, 2003 G.O. 2, 929

T.B. 200520, 2004 G.O. 2, 21

T.B. 201440, 2004 G.O. 2, 2611

T.B. 202422, 2005 G.O. 2, 1739

T.B. 203097, 2005 G,O. 2, 5506

O.C. 66-2006, 2006 G.O. 2, 1029

T.B. 204927, 2007 G.O. 2, 1435

T.B. 206220, 2008 G.O. 2, 1164

T.B. 206318, 2008 G.O. 2, 1302

T.B. 207218, 2009 G.O. 2, 124

T.B. 208553, 2010 G.O. 2, 152

O.C. 1180-2012, 2013 G.O. 2, 7

T.B. 212058, 2013 G.O. 2, 195

T.B. 213343, 2013 G.O. 2, 3274