10. At the date of an actuarial valuation of a pension plan, the projected liabilities of the affected component of the pension plan as at 31 December 2024 are obtained by assuming that, between the date of the valuation and 31 December 2024, with regard to solvency liabilities for the affected component as at the date of the valuation, contingencies based on actuarial assumptions as to survival, morbidity, mortality, employee turnover, eligibility for benefits or other factors will occur and by assuming that termination of the plan will occur on 31 December 2024. The actuarial assumptions and methods used shall be consistent with generally accepted actuarial principles and must be suited, in particular, to the type of plan concerned, its obligations and the position of the account of the affected component of the pension fund.
Moreover, the projected liabilities of the affected component as at 31 December 2024, with regard to the benefits of the members and beneficiaries whose pension would be in payment in on that date, are determined using the assumptions for hypothetical wind-up and solvency valuations established by the Canadian Institute of Actuaries as they apply on the date of the actuarial valuation. For the benefits of the other members and beneficiaries, these projected liabilities are determined in accordance with the assumptions and rules referred to in section 67.4 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6), as they apply on the date of the actuarial valuation.
At the date of the actuarial valuation, the projected assets of the affected component as at 31 December 2024 are obtained by assuming that no contributions are made between the date of the valuation and 31 December 2024, and by assuming an annual interest rate of 6,5%. That value is adjusted to take into consideration the benefits and other amounts to be paid during that period, assuming the contingencies in the first paragraph will occur.
At the date of the actuarial valuation, a projected actuarial deficiency of the affected component as at 31 December 2024 is determined if the projected liabilities exceed the projected assets. The deficiency corresponds to the amount by which the liabilities exceed the assets.