12. Section 212.1 of the Act applies for the purposes of the termination report. In spite of the foregoing, to determine the plan’s liabilities for the application of this section, the value of the pension that must be insured pursuant to section 237 of the Act is determined:
(1) in cases where the pension was insured before the date of termination, on the basis of the premium established on that date using the assumptions for hypothetical wind-up and solvency valuations established by the Canadian Institute of Actuaries as they apply on the date on which the termination report is prepared; or
(2) in all other cases, by discounting, at the date of termination, according to a rate that is the estimated rate of return of the account set up for the members and beneficiaries whose pension is, under section 237 of the Act, to be insured by an insurer as of the date of termination until the date on which the termination report is prepared, the premium established on that latter date using the assumptions for hypothetical wind-up and solvency valuations established by the Canadian Institute of Actuaries as they apply on the date on which the report is prepared, increased by a margin that allows for any possible variation in the cost of purchasing the pension between that date and the probable date of settlement.
The liabilities shall also comprise, in the cases referred to in subparagraph 2 of the first paragraph, in spite of the third paragraph of section 212.1 of the Act, the value of the pension amounts paid out of the pension fund to a member or beneficiary between the termination date and the date on which the report is prepared, such value being determined according to the rate referred to in that subparagraph.