R-10, r. 6 - Order in Council respecting the partition and assignment of benefits accrued under the supplementary benefits plan in respect of classes of employees designated under section 220.1 of the Act respecting the Government and Public Employees Retirement Plan

Updated to 12 December 2023

This document has official status.

chapter R-10, r. 6

Order in Council respecting the partition and assignment of benefits accrued under the supplementary benefits plan in respect of classes of employees designated under section 220.1 of the Act respecting the Government and Public Employees Retirement Plan

Act respecting the Government and Public Employees Retirement Plan

(chapter R-10).

Act respecting the Pension Plan of Management Personnel

(chapter R-12.1, ss. 208 and 416).

1. The rules prescribed in Chapter VII.1 of Title I of the Act respecting the Government and Public Employees Retirement Plan be applicable, with the necessary modifications, to the supplementary benefits plan in respect of classes of employees designated under section 220.1 of that Act.

O.C. 1192-95.

2. The rules prescribed in Divisions I and III of the Regulation respecting the partition and assignment of benefits accrued under the Government and Public Employees Retirement Plan, made by (chapter R-10, r. 7) and reproduced in the Schedule attached hereto, be applicable to the supplementary benefits plan.

O.C. 1192-95.

3. The special rules prescribed in Divisions II and IV of the Schedule attached hereto be made for the establishment and assessment of benefits accrued under the supplementary benefits plan and, because of the payment of the sums awarded to a spouse, for the reduction of the sums payable under that plan.

O.C. 1192-95.

4. (Omitted).

O.C. 1192-95.

SCHEDULE I

Section I

STATEMENT OF THE EMPLOYEE’S OR FORMER EMPLOYEE’S BENEFITS

1. Any application to obtain a statement referred to in section 122.1 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10) shall contain the following information and be accompanied by the following documents:

(1) the name, address, social insurance number and date of birth of the employee or former employee and of his spouse;

(2) a marriage certificate and, where applicable, the date on which the spouses resumed living together;

(3) a copy of the application for separation from bed and board, divorce, annulment of marriage or payment of a compensatory allowance or, where applicable, a copy of the judgment ruling on such an application; and

(4) the information that must be provided by the employer in his annual report, in accordance with section 188 of the Act, for the year during which the assessment is determined up to the date set for that assessment, as well as for the previous year; that information shall be certified by an authorized representative of the employer.

Any application made under this section is also valid for the other pension plans administered by Retraite Québec or for which Retraite Québec is responsible for paying benefits.

2. Within 90 days following the date of receipt of a duly completed application, Retraite Québec shall provide the employee or former employee and his spouse with a statement containing the following information:

(1) the date on which the employee or former employee became covered by Order in Council 461-92 dated 1 April 1992 concerning the determination of supplementary benefits in respect of certain classes of employees under section 220.1 of the Act respecting the Government and Public Employees Retirement Plan and, where applicable, the date on which he ceased to be covered thereby;

(2) the benefits accrued to the employee or former employee, without taking into account any reduction resulting from a prior partition or assignment of benefits, from the time when he became covered by that Order in Council to the date of assessment provided for in the second paragraph of section 122.2 of the Act, as well as the value of those benefits;

(3) the benefits accrued for the period of the marriage as well as their value;

(4) where applicable, the value, applicable at the date of the assessment, of the reduction of the accrued benefits as a result of any prior partition or assignment of benefits; and

(5) the terms and conditions for payment of the sums awarded to the spouse in accordance with Division III.

The statement of benefits and values, established at the date of assessment on the basis of information known to Retraite Québec not later than the date of that statement, is presumed accurate.

SECTION II

ESTABLISHMENT AND ASSESSMENT OF ACCRUED BENEFITS

§1. Establishment of benefits

3. The benefits accrued under that Order in Council shall be established in accordance with the Act and with that Order in Council and, except in the case provided for in the second paragraph of section 57 of the Act, where that Act and that Order in Council provide that the employee would be entitled to a supplementary benefit if he ceased to be covered by that Order in Council before reaching age 60, his benefits are deemed to correspond to such a benefit of which payment is deferred to the earlier of the following dates:

(1) the date of the employee’s 60th birthday; or

(2) the date on which the employee’s age and years of service would total 85, taking into account only those accumulated at the date of assessment.

The benefits accrued for the period of the marriage shall be established in accordance with the first paragraph on the basis of the years or parts of a year of service credited during that period while the employee was covered by that Order in Council, on the assumption that the employee or former employee acquired for that period benefits of the same type as those accrued to him from the date on which he became covered by that Order in Council to the date of assessment.

For the purposes of establishing and assessing the accrued benefits, those benefits shall correspond to the supplementary benefits acquired under that Order in Council at the date of assessment on the basis of the years or parts of a year of service credited at that date. For those purposes, the employee is deemed to have ceased to be covered by that Order in Council at the date of assessment.

4. For the purposes of section 3 of that Order in Council, the years or parts of a year of service redeemed under the Government and Public Employees Retirement Plan shall be credited or counted under that plan proportionately to the amounts paid in capital for their payment, out of the total capital amount. Those years or parts of a year are deemed to be credited or counted for the period of the marriage, to the extend that they were paid during that period.

§2. Assessment of benefits

5. The actuarial value of the benefits shall be established according to the following actuarial method and assumptions:

(1) actuarial method;

the “distribution of benefits” method;

(2) actuarial assumptions:

(a) mortality rate: 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), weighted equally;

(b) interest rate: 9% for the first 15 years following the date of assessment and 6.5% for subsequent years;

(c) rate of increase in the Pension Index within the meaning of the Act respecting the Québec Pension Plan (chapter R-9): 5.5% for the first 15 years following the date of assessment and 3% for subsequent years.

6. Where the accrued benefits consist in a supplementary benefit that is being paid at the date of assessment or that would be if the former employee had made an application to that effect, the value of those benefits shall be obtained by calculating the actuarial value of such benefit.

The value of the benefits accrued for the period of the marriage shall be established in accordance with the first paragraph.

SECTION III

PAYMENT OF THE SUMS AWARDED TO THE SPOUSE AS A RESULT OF THE PARTITION OR ASSIGNMENT OF BENEFITS

7. An application for payment of the sums awarded to the spouse shall be preceded by an application for assessment made in accordance with Division I and shall contain the name and address of the employee or former employee and of his spouse, their social insurance numbers and their dates of birth.

That application is also valid for all pension plans for which Retraite Québec has provided a statement.

8. An application for payment of the sums awarded to the spouse shall be accompanied by the following documents:

(1) the judgment ruling on separation from bed and board, divorce, annulment of marriage or payment of a compensatory allowance;

(2) where applicable, any other judgment relative to the partition or assignment of the employee’s or former employee’s benefits;

(3) where applicable, the agreement entered into between the spouses regarding the terms for payment out of the benefits accrued under that Order in Council; and

(4) the divorce certificate and, where applicable, the certificate of non-appeal.

9. Upon receipt of a duly completed application for payment, Retraite Québec shall send the employee or former employee a statement showing the sums awarded to the spouse as well as the amount of the reduction calculated pursuant to Divison IV. Retraite Québec shall also send the spouse a statement showing the sums awarded to him or her.

Except where the spouse has been paid otherwise, Retraite Québec shall, within 180 days of the date on which the statement is mailed to the spouse but not before the expiry of 60 days following that date, pay the sums awarded to the spouse. Those sums shall be paid to the spouse’s successors in the case of the spouse’s death.

Where the spouse proceeds by way of forced execution, the judgment authorizing seizure in the hands of a third person shall take the place of an application for payment and this section applies.

10. Interest compounded annually and accrued from the date of assessment to the date of payment shall be added to the sums awarded to the spouse at the rate determined for each period under Schedule IV to the Act.

SECTION IV

REDUCTION OF ACCRUED BENEFITS

11. For the purposes of this Division, the amounts determined for taxation purposes because of the assignment of the benefits accrued under Order in Council 461-92 dated 1 April 1992 shall be added to the sums awarded to the spouse at the date of assessment.

12. If the amount paid to the spouse comes from an entitlement to a supplementary benefit of which payment is deferred, the employee’s or former employee’s supplementary benefit shall be established in accordance with the Act and with that Order in Council and shall be reduced, from the date on which it is payable or from the date of payment, as the case may be, by the amount of benefit that would be obtained on the basis of the sums awarded to the spouse at the date of assessment.

13. If the amount paid to the spouse comes from an entitlement to a supplementary benefit that is being paid at the date of assessment or that would be paid at that date, that benefit shall be reduced, from the date of payment or from the date on which it becomes payable in the case of an employee who is 60 years of age or over on the date of assessment or whose age and years of service total 85 at that date, by the amount of benefit that would be obtained on the basis of the sums awarded to the spouse at the date of assessment.

14. For the purposes of section 12, the amount of benefit that would be obtained on the basis of the sums awarded to the spouse at the date of assessment shall be established at that date according to the actuarial method and assumptions provided for in section 5. That amount is presumed applicable on the date determined pursuant to subparagraphs 1 and 2 of the first paragraph of section 3.

The amount obtained pursuant to the first paragraph shall, at the time prescribed under section 119 of the Act respecting the Québec Pension Plan, be indexed in accordance with the rate of increase in the Pension Index within the meaning of that Act, from 1 January following the date of assessment to 1 January of the year during which that amount begins to apply.

If the date on which the supplementary benefit becomes payable occurs before the date determined pursuant to subparagraphs 1 and 2 of the first paragraph of section 3 or if the supplementary benefit is being paid on the date of payment and that date occurs before the date determined, the amount obtained pursuant to the first and second paragraphs shall be reduced by 0.33% per month, calculated for each month between the date on which that amount of benefit begins to apply and the determined date, without exceeding 65%.

If the pensioner retired before the date of payment and if that date occurs after the date determined pursuant to subparagraphs 1 and 2 of the first paragraph of section 3, the amount obtained pursuant to the first and second paragraphs shall be increased by 0.50% per month, calculated for each month between the date determined and the date on which that amount begins to apply, if the pensioner retired before the date determined, or for each month between the date on which he retired and the date on which that amount begins to apply, if the pensioner retired on the date determined or thereafter.

15. For the purposes of section 13, the amount of benefit that would be obtained on the basis of the sums awarded to the spouse at the date of assessment shall be established at that date in accordance with the actuarial method and assumptions provided for in section 5. That amount is presumed applicable on the date of assessment.

The amount obtained pursuant to the first paragraph shall be indexed in the same manner as the supplementary benefit or in the same manner as though it were being paid at the date of assessment, from 1 January following that date to 1 January of the year during which that amount begins to apply.

The amount of benefit obtained pursuant to the first and second paragraphs shall be increased by 0.50% per month, calculated for each month between the date of assessment and the date on which that amount begins to apply, if the supplementary benefit was being paid on the date of assessment or would have been if the former employee had made an application to that effect, or for each month between the date of retirement and the date on which that amount of benefit begins to apply, if the pensioner retired between the date of assessment and the date of payment.

16. Where the supplementary benefit reduced in accordance with this Division is not paid pursuant to the provisions concerning a pensioner’s return to work or to the provisions of Division IV of Chapter IV of Title I of the Act, and where the pensioner is entitled to receive a supplementary benefit recalculated pursuant to those provisions, that recalculated supplementary benefit shall be reduced, from the date on which it becomes payable, by the amount of benefit that was used to reduce the supplementary benefit. That amount of benefit shall be indexed in the same manner as the supplementary benefit, from 1 January following the date on which that amount began to apply to 1 January of the year during which the recalculated supplementary benefit becomes payable.

17. Any payment of actuarial value to be made following a death shall be reduced by the sums awarded to the spouse, with interest compounded annually at the rate determined for each period under Schedule VI to the Act and accrued from the date of assessment to the date on which the payment is made.

O.C. 1192-95, Sch. I; I.N. 2016-01-01 (NCCP).

REFERENCES

O.C. 1192-95, 1995 G.O. 2, 2823

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