R-10, r. 8 - Order in Council respecting the partition and assignment of benefits accrued under the Pension plan for federal employees transferred to employment with the gouvernement du Québec

Updated to 12 December 2023

This document has official status.

chapter R-10, r. 8

Order in Council respecting the partition and assignment of benefits accrued under the Pension plan for federal employees transferred to employment with the gouvernement du Québec

Act respecting the Government and Public Employees Retirement Plan

(chapter R-10, s. 10.2).

1. The rules prescribed in Chapter VII.1 of Title I of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10) be applicable, with the necessary modifications, to the Pension plan for federal employees transferred to employment with the gouvernement du Québec (chapter R-10, r. 10).

Moreover, the rules prescribed in section 122.1.1 of the Act respecting the Government and Public Employees Retirement Plan apply, with regard to the spouses affected by those rules, with the necessary modifications, to the Pension plan for federal employees transferred to employment with the Gouvernement du Québec.

O.C. 1193-95; T.B. 220174, s. 1.

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 (chapter R-10, r. 7), and reproduced in the Schedule attached hereto, be applicable, with the necessary modifications, to the pension plan.

O.C. 1193-95.

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 Pension plan for federal employees transferred to employment with the gouvernement du Québec (chapter R-10, r. 10) and, because of the payment of the sums awarded to a spouse, for the reduction of the sums payable under that plan.

O.C. 1193-95.

4. (Omitted).

O.C. 1193-95.

SCHEDULE

(ss. 2 and 3)

DIVISION 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) in the case of married spouses, a marriage certificate and, where applicable, the date on which the spouses resumed living together;

(2.1) in the case of spouses in a civil union, a certificate of civil union;

(3) written confirmation from a certified mediator to the effect that he or she has received a mandate within the context of family mediation or written confirmation from a notary to the effect that the spouses in a civil union have undertaken a joint procedure for the dissolution of their civil union or, as the case may be, the joint declaration dissolving the civil union and the notarized transaction contract, or a copy of the application for separation from bed and board, divorce, annulment of marriage or civil union, dissolution of civil union or payment of a compensatory allowance or, where applicable, a copy of the judgment disposing of such an application;

(4) the information that must be provided by the employer in his annual report, in accordance with section 188 of the Act respecting the Government and Public Employees Retirement Plan, 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 in accordance with section 4 of the Act respecting Retraite Québec (chapter R-26.3).

1.1. Any application for a statement referred to in section 122.1.1 of the Act respecting the Government and Public Employees Retirement Plan must be signed by the employee or the former employee and his spouse. The application must contain the following information and be accompanied with 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) an attestation by the employee or former employee and his spouse that neither was married or in a civil union on the date on which they ceased living together and, where applicable, the date of the divorce or the dissolution of the civil union and the documents attesting thereto, unless those documents have already been sent to Retraite Québec;

(3) an attestation by the employee or former employee and his spouse of the dates on which they began and ceased living together and, where applicable, proof concerning their marital residence. Furthermore, if the spouses lived in a conjugal relationship for at least one year but not more than 3 years preceding the date on which they ceased living together, they must also attest that one of the situations referred to in subparagraphs 1 to 3 of the first paragraph of section 122.1.1 of the Act respecting the Government and Public Employees Retirement Plan occurred and, where applicable, provide proof thereof;

(4) the information that must be provided by the employer in his annual report, in accordance with section 188 of the Act respecting the Government and Public Employees Retirement Plan, 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 must be certified by an authorized representative of the employer.

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 a member of the Pension plan for federal employees transferred to employment with the Gouvernement du Québec (chapter R-10, r. 10) and, where applicable, the date on which he ceased to be a member thereof;

(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 a member of the plan to the date of assessment provided for in the second paragraph of section 122.2 of the Act respecting the Government and Public Employees Retirement Plan, as well as the value of those benefits;

(3) in the case of married spouses or spouses in a civil union, the benefits accrued during the period of the marriage or civil union, as well as the value of those benefits;

(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.

DIVISION II

ESTABLISHMENT AND ASSESSMENT OF ACCRUED BENEFITS

§1. Establishment of benefits

3. The benefits accrued under the Pension plan for federal employees transferred to employment with the Gouvernement du Québec shall be established in accordance with the plan, taking into account the following provisions:

(1) where the employee has less than 5 years of pensionable service but has to his credit more than 30 years of service on which a pension benefit or retirement benefit of a type described in paragraph b of subsection 3 of section 5 of the Public Service Superannuation Act (R.S.C. 1985, c. P-36) is based and has not reached age 60, the accrued benefits shall be those whose value is the higher of a refund of contributions or a deferred pension payable at age 60;

(2) where the employee has less than 5 years of pensionable service but has to his credit more than 30 years of service on which a pension benefit or retirement benefit of a type described in paragraph b of subsection 3 of section 5 of the Public Service Superannuation Act is based and has reached age 60, the accrued benefits shall be those whose value is the highest of

(a) a refund of contributions;

(b) a cash termination allowance; or

(c) an immediate pension;

(3) where the employee has at least 5 years of pensionable service but does not have to his credit at least 10 years of service and has not reached age 45, the accrued benefits shall be those whose value is the higher of a refund of contributions or a deferred pension payable at age 60;

(4) where the employee has at least 5 years of pensionable service and has to his credit at least 10 years of service and has reached age 45 but not age 60, the accrued benefits are deemed to correspond to a deferred pension payable at that age;

(5) where the employee has ceased to hold employment because of a disability and has the option between either an immediate pension or a cash termination allowance or a refund of contributions, and where his option is not exercised within 60 days following the date of receipt of the application for assessment, the accrued benefits shall be those having the higher value.

The benefits accrued for the period of the marriage or civil union 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, 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 beginning of his membership to the date of assessment.

For the purposes of establishing and assessing the accrued benefits, those benefits shall correspond to the benefits acquired under the plan at the date of assessment on the basis of the years or parts of a year of service credited at that date without taking into account, except in respect of the pensioner, those added at the time of the calculation of the pension. For those purposes, the employee is deemed to have ceased to be covered by the plan at the date of assessment.

4. The years or parts of a year of service redeemed shall be credited as a ratio of the capital paid therefor to the total capital. The years or parts of a year are deemed to be credited for the period of the marriage or civil union, to the extent that they were paid during that period.

§2. Assessment of benefits

5. Where the accrued benefits consist in a refund of contributions, the value of those benefits corresponds to the contributions paid with interest calculated in accordance with the plan and accrued to the date of assessment, as though the refund had been made at that date. The same applies in respect of the value of the benefits accrued for the period of the marriage or civil union.

6. 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.

The actuarial value of the benefits is determined according to the “distribution of benefits” method and corresponds to the sum of 60% of the actuarial value determined for a male and 40% 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:

The interest rates are those determined according to the CIA Standards.

The result must be adjusted according to the CIA Standards.

(3) the indexing rate:

The indexing rate is calculated in the manner provided in the CIA Standards.

(4) the turnover rate: Nil

(5) the disability rate: Nil

(6) the proportion of persons with a spouse at death:

Age	Male	Female
18-59 years old	65%	60%
60-64 years old	65%	55%
65-69 years old	60%	50%
70-74 years old	60%	40%
75-79 years old	60%	30%
80-84 years old	60%	20%
85-89 years old	50%	10%
90-109 years old	40%	5%
110 years old	0%	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.

7. Where the accrued benefits consist in a 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 a benefit.

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

DIVISION III

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

8. In this Division, the expression “life income fund” has the meaning given to it by sections 18 and 19 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6) and the expressions “locked-in retirement account” and “annuity contract” have the meanings given to them by sections 29 and 30, respectively, of that Regulation.

9. 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.

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

(1) the judgment of separation from bed and board, divorce, annulment of marriage or civil union, dissolution of civil union or the payment of a compensatory allowance unless the judgment has already been sent to Retraite Québec;

(2) where appplicable, any other judgment relative to the partition or assignment of the employee’s or former employee’s benefits or the joint declaration dissolving the civil union along with the notarized transaction contract;

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

(3.1) in the case of spouses referred to in the first paragraph of section 122.1.1 of the Act respecting the Government and Public Employees Retirement Plan, the agreement between the spouses concerning partition of the benefits accrued by the employee or former employee under the Pension plan for federal employees transferred to employment with the Gouvernement du Québec, signed before a notary or attorney, or a sworn declaration signed by both spouses within 12 months following the date on which they ceased living together;

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

11. 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 Division IV. Retraite Québec shall also send the spouse a statement showing the sums awarded to him.

The spouse shall, within 60 days following the date on which the statement addressed to him was mailed, provide Retraite Québec with the name and address of the financial institution and with an identification of the annuity contract, locked-in retirement account or life income fund or, where applicable, the registered retirement savings plan or registered retirement income fund into which the sums awarded to him must be transferred.

Unless the spouse was paid otherwise, Retraite Québec shall, within 120 days following the expiry of the period provided for in the second paragraph, transfer the sums awarded to the spouse into an annuity contract, locked-in retirement account or life income fund or, where applicable, into a registered retirement savings plan or registered retirement income fund with a financial institution chosen by the spouse, as long as the steps necessary for the transfer of those sums have first been taken.

Should the spouse fail to indicate his choice and to take the necessary steps within the prescribed period, Retraite Québec shall transfer those sums into a locked-in retirement account or, where applicable, into a registered retirement savings plan in the spouse’s name with the financial institution with which Retraite Québec reached an agreement to that effect.

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.

12. Retraite Québec shall transfer the sums awarded to the spouse into an annuity contract, locked-in retirement account or life income funds where those sums come from an entitlement to an immediate pension or deferred pension.

Notwithstanding the foregoing, Retraite Québec shall transfer those sums into a registered retirement savings plan or registered retirement income fund where those sums come from an entitlement to a refund of contributions or, upon application by the spouse, shall transfer those sums into an annuity contract, locked-in retirement account or life income fund.

Notwithstanding the first and second paragraphs, those sums shall be paid to the spouse’s successors in case of the spouse’s death.

13. Interest compounded annually and accrued from the date of assessment to the date of payment must be added to the sums awarded to the spouse at the rate in Schedule VII to the Act respecting the Government and Public Employees Retirement Plan, in effect at the date of assessment. Where that date is prior to 1 June 2001, the applicable interest rate is 5.34%.

DIVISION IV

REDUCTION OF ACCRUED BENEFITS

14. If the amount paid to the spouse comes from an entitlement to a refund of contributions, to a cash termination allowance or to a deferred pension, the employee’s or former employee’s benefits shall be established in accordance with the plan and shall be recalculated as follows:

(1) where the employee is entitled to a refund of contributions, the amount of his refund shall be reduced by the sums awarded to the spouse at the date of assessment with interest compounded annually at the rate of 4% and accrued from the date of assessment to the date on which the refund is made; or

(2) where the employee or former employee is entitled to a deferred pension or immediate pension, his pension shall be reduced from the date on which it becomes payable or from the date of payment, as the case may be, by the amount of pension that would be obtained on the basis of the sums awarded to the spouse at the date of assessment.

15. If the amount paid to the spouse comes from an entitlement to a pension, that pension shall be reduced, from the date of payment or from the date on which it becomes payable in the case of an employee 60 years of age or over on the date of assessment, by the amount of pension that would be obtained on the basis of the sums awarded to the spouse at that date.

16. For the purposes of section 14, the amount of pension 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 6. That amount is presumed applicable on the date of the employee’s or former employee’s 60th birthday.

The amount of pension obtained pursuant to the first paragraph shall, at the time prescribed under section 119 of the Act respecting the Québec Pension Plan (chapter R-9), be indexed in accordance with the rate of increase in the Pension Index within the meaning of that Act, from I January following the date of assessment to 1 January of the year during which that amount begins to apply.

If the pensioner is under 60 years of age either on the date on which the annual pension becomes payable or on the date of payment if the pension is being paid on that date, the amount of pension obtained pursuant to the first and second paragraph shall be reduced by 0.33% per month, calculated for each month between the date on which that amount of pension begins to apply and the date of the pensioner’s 60th birthday, without exceeding 65%.

If the pensioner retired before the date of payment and if that date occurs after the date of his 60th birthday, the amount of pension obtained pursuant to the first and second paragraphs shall be increased by 0.50% per month, calculated for each month between the date of his 60th birthday and the date on which that amount of pension begins to apply if the pensioner retired before the date of his 60th birthday, or for each month between the date on which he retired and the date on which that amount of pension begins to apply, if the pensioner retired on the date of his 60th birthday or thereafter.

17. For the purposes of section 15, the amount of pension 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 6. That amount is presumed applicable on the date of assessment.

The amount of pension obtained pursuant to the first paragraph shall be indexed in the same manner as the pension 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 pension 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 of pension begins to apply, if the pension 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 pension begins to apply, if the pensioner retired between the date of assessment and the date of payment.

18. Any refund of contributions to be made following a death or any payment of actuarial value shall be reduced by the sums awarded to the spouse with interest compounded annually at the rate of 4% and accrued from the date of assessment to the day on which the refund or payment is made, except for the period during which a pension is paid.

DIVISION V

TRANSITIONAL

19. For the purposes of sections 16 and 17, the amount of pension that would be obtained on the basis of the sums awarded to the spouse at the date of assessment is established at that date according to the actuarial method and assumptions that were used for the assessment of benefits accrued.

O.C. 1193-95, Sch; O.C. 1432-98, s. 1; T.B. 210822, ss. 1, 2 and 3; I.N. 2016-01-01 (NCCP); T.B. 220174, ss. 1 to 9; T.B. 226438, s. 1.

REFERENCES

O.C. 1193-95, 1995 G.O. 2, 2827

O.C. 1432-98, 1998 G.O. 2, 4784

T.B. 210822, 2011 G.O. 2, 3696

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

T.B. 220174, 2018 G.O. 2, 5220

T.B. 226438, 2022 G.O. 2, 2414