R-12.1, r. 3 - Provisions respecting the determination of supplementary benefits in respect of certain classes of employees under section 208 of the Act respecting the Pension Plan of Management Personnel

Updated to 12 December 2023

This document has official status.

chapter R-12.1, r. 3

Provisions respecting the determination of supplementary benefits in respect of certain classes of employees under section 208 of the Act respecting the Pension Plan of Management Personnel

Act respecting the Pension Plan of Management Personnel

(chapter R-12.1, s. 208).

1. In this Order in Council,

“Act” means the Act respecting the Pension Plan of Management Personnel (chapter R-12.1); (loi)

“basic Order in Council” means the special retirement provisions of Order in Council respecting the special provisions in respect of classes of employees designated under section 23 of the Act respecting the Pension Plan of Management Personnel (chapter R-12.1, r. 2); (décret de base)

“former pension plan” means a former pension plan as defined in section 1 of the basic Order in Council. (régime de retraite antérieur)

“plan” means the Pension Plan of Management Personnel; (régime)

“Retraite Québec” means Retraite Québec established by section 1 of the Act respecting Retraite Québec (chapter R-26.3). (Retraite Québec)

“total pension” means the amount of the pension as defined in section 1 of the basic Order in Council; (montant total de la pension)

O.C. 961-2003, s. 1; O.C. 525-2009, s. 1; O.C. 377-2011, s. 1.

2. For the purposes of section 208 of the Act, this Order in Council applies to the employees referred to in the basic Order in Council to the extent provided for in sections 3 to 8.

O.C. 961-2003, s. 2.

3. The amount of the employee’s pension paid under the basic Order in Council is increased by a supplementary benefit that corresponds to the total of the following amounts:

(1)  the amount obtained by multiplying the part of the employee’s average pensionable salary that exceeds the part withheld upon computation of the amount of the pension provided for in section 8 of the basic Order in Council by 1.6% per year of service credited before 1 January 1997 and by 1.7% per year of service credited after 31 December 1996, but before 1 January 2000, while Schedule I (O.C. 461-92, 92-04-01) applied to the employee, as it read on 16 September 2003;

(2)  an amount equal to 0.9% of the employee’s average pensionable salary per year of service credited before 1 January 1997 and equal to 0.8% of that salary per year of service credited after 31 December 1996, but before 1 January 2000, while Schedule I to that Order in Council applied to the employee, up to 10 years. The 10-year period is reduced by the number of years or parts of a year of service accumulated by the employee while the employee held employment referred to in section 22 or 23 of the basic Order in Council;

(3)  an amount equal to 1% of the employee’s average pensionable salary per year of service credited after 31 December 1999 while Schedule I to this Order in Council or, where applicable, Schedule I (O.C. 461-92, 92-04-01) as it read on 16 September 2003, applies to the employee;

(3.1)  an amount equal to 1% of the employee’s average pensionable salary per year of service credited after 31 December 2008 while Schedule I to this Order in Council applies to the employee as Secretary-General of the Conseil exécutif;

(4)  the amount obtained by multiplying the part of the employee’s average pensionable salary that exceeds the part withheld upon computation of the amount of the pension provided for in section 8 of the basic Order in Council by 1.7% per year of service credited after 31 December 1999 while the basic Order in Council applies to the employee, except for the years of service credited during which the employee holds employment in the education sector or in the health and social services sector;

(5)  the amount that corresponds to the amount by which 0.30% of the employee’s average pensionable salary exceeds the amount computed under subparagraph 2 of the first paragraph of section 8 of the basic Order in Council and that includes the limit provided for in the third paragraph of that section, per year of service credited after 31 December 1999, while the basic Order in Council applies to the employee, except years of service credited during which the employee holds employment in the education sector or in the health and social services sector, if the employee is under 65 years of age when the pension becomes payable. The amount is payable until the end of the month in which the pensioner reaches 65 years of age and is indexed in accordance with sections 115 and 116 of the Act. If the employee has less than 120 months of service, including the months of service recognized under the employee’s former pension plan, the amount is reduced by multiplying it by the fraction that the number of months of that service is of the total of 120. For the purpose of computing the number of months of service, the service accumulated by an employee during the period in which the plan did not apply to the employee while one of the following provisions applied to the employee must also be taken into account:

(a)  section 2 of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10) as it read on 31 December 2000;

(b)  paragraph 7 of section 4 of that Act as it read on that date;

(c)  section 2 of the Act; or

(d)  paragraph 7 of section 3 of the Act;

(5.1)  the amount obtained by multiplying the part of the employee’s average pensionable salary that exceeds the part withheld upon computation of the amount of the pension provided for in section 8 of the basic Order in Council by 2% per year of service credited over and above 35 years of service that is used in computing the total pension while the basic Order in Council applies to the employee, except for the years of service credited during which the employee holds employment in the education sector or in the health and social services sector; and

(6)  for the years of service credited before 1 January 1992 to an employee to whom any of paragraphs 1 to 11 of Schedule II to the basic Order in Council applies or applied, the amount that corresponds to the amount of the pension that would have been computed under section 26 of the basic Order in Council if the fiscal limits determined by the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) had not applied, less the amount of the employee’s pension computed in accordance with that section.

Subparagraphs 4 and 5 of the first paragraph also apply to an employee who is a public servant having permanent tenure within the meaning of the Public Service Act (chapter F-3.1.1), in respect of a year of service credited during which the employee was on leave without pay.

For the purposes of subparagraphs 1, 2, 4, 5 and 6 of the first paragraph, the limit provided for in the fourth paragraph of section 8 of the basic Order in Council applies. For the purposes of subparagraph 3, 3.1 and 5.1 of the first paragraph, the number of years of an employee’s credited service are taken into account up to the number of years necessary so that the years of service used in computing the total pension do not exceed 40. The years of service credited over and beyond 35 years of service used in computing the total pension must occur after 31 December 2010 and those over and beyond 38, after 31 December 2016.

O.C. 961-2003, s. 3; O.C. 813-2009, s. 1; O.C. 525-2009, s. 2; O.C. 377-2011, s. 2; O.C. 1136-2014, s. 1; O.C. 858-2017, s. 1.

4. From the date on which an employee to whom the basic Order in Council applies receives the amount of the pension or deferred pension under that Order in Council, the employee shall benefit from a supplementary benefit that the Government determines using the actuarial assumptions and method provided for in Schedule II, if the Government makes an order to that effect.

O.C. 961-2003, s. 4.

5. Where an employee ceases to be a member of the plan and elects to transfer the actuarial value of the pension in accordance with section 16 of the basic Order in Council, any amount of supplementary benefit granted under this Order in Council is payable to the employee from the date on which a deferred pension would otherwise have been payable to the employee under the basic Order in Council if the employee had not made that election. The amount of the supplementary benefit is reduced, where applicable, in accordance with the provisions of the second paragraph of section 15 of the basic Order in Council, with the necessary modifications.

O.C. 961-2003, s. 5.

5.1. The employee to whom this Order in Council applies who ceases to act as Secretary-General of the Conseil exécutif after 31 December 2008 is subject to this Order in Council as if the employee had been appointed to act as Secretary-General of the Conseil exécutif where the employee holds pensionable employment under the plan, except if the employee has received the actuarial value of his or her total pension in accordance with section 16 of the basic Order in Council.

O.C. 813-2009, s. 2.

6. For the purposes of section 3, the average pensionable salary is computed in the manner provided for in section 9 of the basic Order in Council without taking into account the limit provided for in the last paragraph of that section and the limit provided for in section 30 of the Act.

O.C. 961-2003, s. 6; O.C. 482-2005, s. 12.

7. Section 14 of the basic Order in Council applies in respect of the amount of the supplementary benefit payable under subparagraphs 1 to 4, 5.1 and 6 of the first paragraph of section 3 or section 4, with the necessary modifications.

O.C. 961-2003, s. 7; O.C. 1136-2014, s. 2.

8. The provisions pertaining to the reduction and indexing of the amount of the pension or deferred pension payable under the basic Order in Council apply to any amount of supplementary benefit payable under this Order in Council, with the necessary modifications.

O.C. 961-2003, s. 8.

9. If the employee dies before becoming eligible for a pension and has at least 2 years of service credited under the plan, the employee’s spouse or, if the employee has no spouse, the employee’s successors, are entitled to receive the actuarial value of the supplementary benefit established on the date of death in accordance with the actuarial assumptions and methods provided for in subparagraph 2 of the first paragraph of section 68 of the Act.

O.C. 961-2003, s. 9.

9.1. The spouse may waive the spousal benefits granted pursuant to this Order in Council only if the spouse has waived the spousal benefits granted pursuant to the plan and the basic Order in Council. The spouse may, to the same extent, revoke his or her waiver.

A waiver or revocation of the waiver by the spouse of spousal benefits granted under the plan and the basic Order in Council or a cancellation of such a waiver is also valid in respect of spousal benefits granted under this Order in Council.

Where the employee elects to transfer the actuarial value of his or her pension pursuant to section 16 of the basic Order in Council, the waiver by the spouse of the spousal benefits granted under this Order in Council is cancelled.

O.C. 525-2009, s. 3.

10. Sections 3, 5 and 6 apply only to an employee who ceased to be a member of the Government and Public Employees Retirement Plan between 31 December 1999 and 1 January 2001, or of the Pension Plan of Management Personnel after 31 December 2000.

O.C. 961-2003, s. 10.

SCHEDULE I

(s. 3)

CLASSES OF EMPLOYEES

(1) administrators of state I;

(2) persons appointed under section 57 of the Public Service Act (chapter F-3.1.1) who hold a position of deputy minister or whose deed of appointment stipulates that they have the rank and privileges of a deputy minister;

(3) the executive assistant to the Premier;

(4) the persons designated in paragraphs 4, 5 and 7 of Schedule II to the basic Order in Council who hold a position for which the salary level is at least DM06 in the salary structure, approved by the Government, for officers and members of bodies or agencies;

(5) the Auditor General;

(6) the Secretary General of the National Assembly, if the basic Order in Council applies to the Secretary General;

(7) the Public Protector, except if section 8 of the Public Protector Act (chapter P-32) applies to the Public Protector;

(8) any person who belonged to one of the classes of employees designated in paragraphs 1 to 7 and whose remuneration and conditions of employment are maintained by the Government;

(9) all other persons employed by a government department, a public or parapublic body or agency or by a body or an agency designated by the Government, if the Government makes an order to that effect.

O.C. 961-2003, Sch. I.

SCHEDULE II

(s. 4)

ASSUMPTIONS AND ACTUARIAL METHOD

Actuarial method

The actuarial method is the “benefit allocation” method.

Actuarial assumptions

(1) Mortality rates:

The mortality rates are those taken from the mortality table promulgated by the Actuarial Standards Board of the Canadian Institute of Actuaries, whose date of coming into force is 1 October 2015.

(2) Interest rates:

The interest rates are those determined in accordance with section 3500 of the Standards of Practice of the Canadian Institute of Actuaries concerning pension commuted values in force on 1 February 2022, hereafter called the “CIA Standard”. The result must be rounded to the nearest multiple of 0.10%.

(3) Indexing rate:

(a) for a fully-indexed benefit according to the rate of increase in the pension index, the indexing rate is computed in the manner described in the CIA Standard;

(b) for a benefit indexed according to the excess of the rate of increase in the pension index (PI) over 3% or to half of the rate of increase in the pension index, the indexing rate corresponds respectively to the excess of the indexing rate computed in the manner provided in subparagraph a over 3% or to half the indexing rate computed in the manner provided in that subparagraph.

In order to take into account the inflation rate variations, the following additions are made to the results of effective indexing formulas for actuarial value computation purposes.

Inflation level	Addition to the result of the PI-3% formula	Adjusted indexing rate	Addition to the result of the 50% PI, min. PI-3% formula	Adjusted indexing rate
0	0.00	0.00	0.20	0.20
0.5	0.00	0.00	0.10	0.35
1.0	0.00	0.00	0.05	0.55
1.5	0.05	0.05	0.00	0.75
2.0	0.10	0.10	0.00	1.00
2.5	0.20	0.20	0.00	1.25
3.0	0.40	0.40	0.00	1.50
3.5	0.20	0.70	0.00	1.75
4.0	0.10	1.10	0.00	2.00
4.5	0.05	1.55	0.00	2.25

The result must be rounded to the nearest multiple of 0.10%.

(4) Turnover rate: Nil

(5) Disability rate: Nil

(6) Proportion of persons with a spouse at death:

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

(7) Age difference between spouses at death:

— the male spouse of the member is assumed to be 1 year older;

— the female spouse of the member is assumed to be 4 years younger.

The economic assumptions are established based on the rates and returns of bond indexes, as described in the CIA Standard, applicable to the second calendar month preceding the month in which the valuation took place, rather than those applicable to the preceding month.

O.C. 961-2003, Sch. II; O.C. 1235-2005, s. 5; O.C. 1015-2022, s. 1.

REFERENCES

O.C. 961-2003, 2003 G.O. 2, 2972

O.C. 482-2005, 2005 G.O. 2, 1653

O.C. 1235-2005, 2005 G.O. 2, 5519

O.C. 525-2009, 2009 G.O. 2, 1699

O.C. 813-2009, 2009 G.O. 2, 2093

O.C. 377-2011, 2011 G.O. 2, 968

O.C. 1136-2014, 2014 G.O. 2, 2921

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

O.C. 858-2017, 2017 G.O. 2, 2650

O.C. 1015-2022, 2022 G.O. 2, 2041