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SCHEDULE V

(s. 16)

ASSUMPTIONS AND ACTUARIAL METHOD

Actuarial method

The actuarial method is the “projected benefit method pro rated on service”.

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 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) End of employment rates:

49 years old or younger: 0.04

50 years or older: 0.00

(5) Disability rate: Nil

(6) Rate of increase of the MPE:

The annual increase of the maximum pensionable earnings within the meaning of the Québec Pension Plan corresponds to the annual rate of inflation plus 1%.

(7) Rate of increase of salaries:

The annual increase in salaries corresponds to the annual increase of the MPE, increased by the annual rate of salary increase.

Age | Annual rate of increase |

18-39 years | 3.0% |

40-44 years | 2.9% |

45-49 years | 2.5% |

50-54 years | 2.1% |

55-59 years | 1.7% |

60-64 years | 1.3% |

65 years and older | 1.0% |

(8) Retirement rates:

An employee whose age and years of service add up or would add up to 85 or more (criterion 85) at age 50 or older but before age 60: | — 35% at criterion 85 |

— 100% (of the remaining 65%) at 35 years of service or at age 65 if the employee attains that age without attaining 35 years of service | |

An employee who has fewer than 25 years of service at age 60 or older: | — 40% at age 60 |

— 100% (of the remaining 60%) at age 65 | |

An employee who has at least 35 years of service at the time of transfer: | — 75% 6 months after the transfer |

— 100% (of the remaining 25%) at 40 years of service | |

An employee who is 60 years of age or older at the time of transfer: | — 40% 6 months after the transfer |

— 100% (of the remaining 60%) at 35 years of service or at age 65 if the employee attains that age without attaining 35 years of service |

If the last 2 criteria apply, the assumption retained is that of the criteria of 35 years of service.

(9) 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% |

(10) 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 actuarial assumptions apply taking into account the rules in paragraph 3530.06 of subsection 3530 of the Standard of Practice for Determining Pension Commuted Values confirmed by the Canadian Institute of Actuaries on 15 June 2004, hereafter called the “CIA Standard”.

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.

SCHEDULE V

(s. 16)

ASSUMPTIONS AND ACTUARIAL METHOD

Actuarial method

The actuarial method is the “projected benefit method pro rated on service”.

Actuarial assumptions

(1) Mortality rates:

The mortality rates are determined in accordance with the CIA Standard.

(2) Interest rates:

For fully-indexed and non-indexed benefits:

The interest rates are those determined in accordance with the CIA Standard.

For partially indexed benefits:

The interest rates 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 rounded to the nearest multiple of 0.25%.

(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 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

1.0 0.1 0.1 0.10 0.6

1.5 0.3 0.3 0.15 0.9

2.0 0.5 0.5 0.20 1.2

2.5 0.7 0.7 0.15 1.4

3.0 1.0 1.0 0.20 1.7

3.5 0.8 1.3 0.25 2.0

4.0 0.6 1.6 0.30 2.3

4.5 0.5 2.0 0.45 2.7

5.0 0.4 2.4 0.50 3.0

(4) Turnover rate: Nil

(5) Disability rate: Nil

(6) Rate of increase of the MPE:

The annual increase of the maximum pensionable earnings within the meaning of the Québec Pension Plan corresponds to the annual rate of inflation plus 1%.

(7) Rate of increase of salaries:

The annual increase in salaries corresponds to the annual increase of the MPE, increased by the annual rate of salary increase.

Age Annual rate of increase

18-35 years 5.75%

36-50 years 2.50%

51 years and over 0.88%

(8) Retirement rate:

For an employee whose age - 60% at criteria 85

and years of service add up

or would add up to 85 or more

(criteria 85) at age 55 or older

but before age 60

- 100% (of the remaining 40%)

at 35 years of service or at

age 65 if the employee attains

that age without attaining

35 years of service

For an employee who - 60% at age 60

has fewer than 25 years

of service at age 60 or older

- 100% (of the remaining 40%)

at age 65

For an employee who - 100% 6 months after the

has at least 35 years of transfer

service at the time of transfer

For an employee who is - 60% 6 months after the

60 years of age or older at transfer

the time of transfer

- 100% (of the remaining 40%)

at 35 years of service or age 65

if the employee attains that age

without attaining 35 years

of service

and years of service add up

or would add up to 85 or more

(criteria 85) at age 55 or older

but before age 60

- 100% (of the remaining 40%)

at 35 years of service or at

age 65 if the employee attains

that age without attaining

35 years of service

For an employee who - 60% at age 60

has fewer than 25 years

of service at age 60 or older

- 100% (of the remaining 40%)

at age 65

For an employee who - 100% 6 months after the

has at least 35 years of transfer

service at the time of transfer

For an employee who is - 60% 6 months after the

60 years of age or older at transfer

the time of transfer

- 100% (of the remaining 40%)

at 35 years of service or age 65

if the employee attains that age

without attaining 35 years

of service

If the last 2 criteria apply, the assumption retained is that of the criteria of 35 years of service.

(9) Proportion of employees with a spouse at retirement:

_____________________________________

Age Male Female

_____________________________________

18 - 64 years old 85% 65%

_____________________________________

65 - 79 years old 80% 30%

_____________________________________

80 - 109 years old 60% 10%

_____________________________________

110 years old 0% 0%

_____________________________________

Age Male Female

_____________________________________

18 - 64 years old 85% 65%

_____________________________________

65 - 79 years old 80% 30%

_____________________________________

80 - 109 years old 60% 10%

_____________________________________

110 years old 0% 0%

_____________________________________

(10) Age difference between spouses at retirement:

— 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 actuarial assumptions apply taking into account the rules in Part D of Section 3 of the Standard of Practice for Determining Pension Commuted Values confirmed by the Canadian Institute of Actuaries on 15 June 2004, hereafter called the “CIA Standard”.

SCHEDULE V

(ss. 16 and 37)

ASSUMPTIONS AND ACTUARIAL METHOD

Actuarial method

The actuarial method is the “projected benefit method pro rated on service”.

Actuarial assumptions

(1) Mortality rates:

The mortality rates are determined in accordance with the CIA Standard.

(2) Interest rates:

For fully-indexed and non-indexed benefits:

The interest rates are those determined in accordance with the CIA Standard.

For partially indexed benefits:

The interest rates 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 rounded to the nearest multiple of 0.25%.

(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 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

1.0 0.1 0.1 0.10 0.6

1.5 0.3 0.3 0.15 0.9

2.0 0.5 0.5 0.20 1.2

2.5 0.7 0.7 0.15 1.4

3.0 1.0 1.0 0.20 1.7

3.5 0.8 1.3 0.25 2.0

4.0 0.6 1.6 0.30 2.3

4.5 0.5 2.0 0.45 2.7

5.0 0.4 2.4 0.50 3.0

(4) Turnover rate: Nil

(5) Disability rate: Nil

(6) Rate of increase of the MPE:

The annual increase of the maximum pensionable earnings within the meaning of the Québec Pension Plan corresponds to the annual rate of inflation plus 1%.

(7) Rate of increase of salaries:

The annual increase in salaries corresponds to the annual increase of the MPE, increased by the annual rate of salary increase.

Age Annual rate of increase

18-35 years 5.75%

36-50 years 2.50%

51 years and over 0.88%

(8) Retirement rate:

For an employee whose age - 60% at criteria 85

and years of service add up

or would add up to 85 or more

(criteria 85) at age 55 or older

but before age 60

- 100% (of the remaining 40%)

at 35 years of service or at

age 65 if the employee attains

that age without attaining

35 years of service

For an employee who - 60% at age 60

has fewer than 25 years

of service at age 60 or older

- 100% (of the remaining 40%)

at age 65

For an employee who - 100% 6 months after the

has at least 35 years of transfer

service at the time of transfer

For an employee who is - 60% 6 months after the

60 years of age or older at transfer

the time of transfer

- 100% (of the remaining 40%)

at 35 years of service or age 65

if the employee attains that age

without attaining 35 years

of service

and years of service add up

or would add up to 85 or more

(criteria 85) at age 55 or older

but before age 60

- 100% (of the remaining 40%)

at 35 years of service or at

age 65 if the employee attains

that age without attaining

35 years of service

For an employee who - 60% at age 60

has fewer than 25 years

of service at age 60 or older

- 100% (of the remaining 40%)

at age 65

For an employee who - 100% 6 months after the

has at least 35 years of transfer

service at the time of transfer

For an employee who is - 60% 6 months after the

60 years of age or older at transfer

the time of transfer

- 100% (of the remaining 40%)

at 35 years of service or age 65

if the employee attains that age

without attaining 35 years

of service

If the last 2 criteria apply, the assumption retained is that of the criteria of 35 years of service.

(9) Proportion of employees with a spouse at retirement:

_____________________________________

Age Male Female

_____________________________________

18 - 64 years old 85% 65%

_____________________________________

65 - 79 years old 80% 30%

_____________________________________

80 - 109 years old 60% 10%

_____________________________________

110 years old 0% 0%

_____________________________________

Age Male Female

_____________________________________

18 - 64 years old 85% 65%

_____________________________________

65 - 79 years old 80% 30%

_____________________________________

80 - 109 years old 60% 10%

_____________________________________

110 years old 0% 0%

_____________________________________

(10) Age difference between spouses at retirement:

— 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.

For the purposes of section 16 of the Act, the actuarial assumptions apply taking into account the rules in Part D of Section 3 of the Standard of Practice for Determining Pension Commuted Values confirmed by the Canadian Institute of Actuaries on 15 June 2004, hereafter called the “CIA Standard”.