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R-12.1, r. 1.1 - Regulation respecting certain provisions relating to the partition and assignment of benefits accrued under the supplementary benefits plan in respect of classes of employees designated under section 208 of the Act respecting the Pension Plan of Management Personnel

Section 1
Disposition versions

Full text
1. The actuarial value of the benefits of the supplementary benefits plan in respect to classes of employees designated under section 208 of the Act respecting the Pension Plan of Management Personnel (chapter R-12.1) is determined according to the “distribution of benefits” method and corresponds to the sum of 40% of the actuarial value determined for a male and 60% of the actuarial value determined for a female. The actuarial value of the benefits is also determined according to the following actuarial assumptions:
(1)  the mortality rates:
The mortality rates are those determined according to the CIA Standards.
(2)  the interest rates:
(a)  the interest rates for fully-indexed or non-indexed benefits are those determined according to the CIA Standards;
(b)  the interest rates for partially-indexed benefits 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 adjusted according to the CIA Standards.
(3)  the indexing rate:
(a)  the indexing rate for a benefit fully-indexed by the rate of increase in the Pension Index is calculated in the manner described in the CIA Standards;
(b)  the indexing rate for a benefit indexed by the excess of the rate of increase in the Pension Index (PI) over 3% or by half of the rate of increase in the Pension Index corresponds respectively to the excess of the indexing rate calculated in the manner provided in subparagraph a over 3% or by half the indexing rate calculated in the manner provided in that subparagraph.
In order to take into account inflation rate variations, the following additions are made to the results of the effective indexing formulas for actuarial value calculation purposes:
Inflation levelAddition to the result of the PI – 3% formulaAdjusted indexing rateAddition to the result of the 50% PI, min. PI – 3% formulaAdjusted indexing rate
00.000.000.200.20
0.50.000.000.100.35
1.00.000.000.050.55
1.50.050.050.000.75
2.00.100.100.001.00
2.50.200.200.001.25
3.00.400.400.001.50
3.50.200.700.001.75
4.00.101.100.002.00
4.50.051.550.002.25
(4)  the turnover rate: Nil
(5)  the disability rate: Nil
(6)  the proportion of persons with a spouse at death:
AgeMaleFemale
18-59 years old80%60%
60-64 years old80%55%
65-69 years old75%50%
70-74 years old75%40%
75-79 years old70%30%
80-84 years old65%20%
85-89 years old55%10%
90-109 years old40%5%
110 years old0%0%
(7)  the age difference between spouses at death:
(a)  the male spouse of the beneficiary is assumed to be 1 year older;
(b)  the female spouse of the beneficiary is assumed to be 4 years younger.
In this section, the expression “CIA Standards” refers to the standards of practice entitled Practice-Specific Standards for Pension Plans-3500 Pension Commuted Values of the Canadian Institute of Actuaries.
T.B. 210826, s. 1; T.B. 227183, s. 1.
1. The actuarial value of the benefits of the supplementary benefits plan in respect to classes of employees designated under section 208 of the Act respecting the Pension Plan of Management Personnel (chapter R-12.1) is determined according to the “distribution of benefits” method and corresponds to the sum of 75% of the actuarial value determined for a male and 25% of the actuarial value determined for a female. The actuarial value of the benefits is also determined according to the following actuarial assumptions:
(1)  the mortality rates:
The mortality rates are those determined according to the CIA Standards.
(2)  the interest rates:
(a)  the interest rates for fully-indexed or non-indexed benefits are those determined according to the CIA Standards;
(b)  the interest rates for partially-indexed benefits 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 adjusted according to the CIA Standards.
(3)  the indexing rate:
(a)  the indexing rate for a benefit fully-indexed by the rate of increase in the Pension Index is calculated in the manner described in the CIA Standards;
(b)  the indexing rate for a benefit indexed by the excess of the rate of increase in the Pension Index (PI) over 3% or by half of the rate of increase in the Pension Index corresponds respectively to the excess of the indexing rate calculated in the manner provided in subparagraph a over 3% or by half the indexing rate calculated in the manner provided in that subparagraph.
In order to take into account inflation rate variations, the following additions are made to the results of the effective indexing formulas for actuarial value calculation purposes:
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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
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1.0 0.1 0.1 0.10 0.6
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1.5 0.3 0.3 0.15 0.9
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2.0 0.5 0.5 0.20 1.2
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2.5 0.7 0.7 0.15 1.4
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3.0 1.0 1.0 0.20 1.7
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3.5 0.8 1.3 0.25 2.0
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4.0 0.6 1.6 0.30 2.3
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4.5 0.5 2.0 0.45 2.7
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5.0 0.4 2.4 0.50 3.0
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(4)  the turnover rate: Nil
(5)  the disability rate: Nil
(6)  the proportion of married persons at death:
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Age Male Female
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18-64 years old 85% 65%
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65-79 years old 80% 30%
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80-109 years old 60% 10%
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110 years old 0% 0%
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(7)  the age difference between spouses at death:
(a)  the male spouse of the beneficiary is assumed to be 1 year older;
(b)  the female spouse of the beneficiary is assumed to be 4 years younger.
In this section, the expression “CIA Standards” refers to the standards of practice entitled Practice-Specific Standards for Pension Plans-3800 Pension Commuted Values of the Canadian Institute of Actuaries, effective since 1 February 2005 and periodically revised.
T.B. 210826, s. 1.
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