16. Where an employee belongs to one of the classes designated in Schedule III or belongs to such a class while this Order in Council applies to the employee, and the employee ceases to be a member of the plan, the employee may, instead of receiving the total pension or deferred pension payable in accordance with the first paragraph of section 15, elect for a transfer into a locked-in retirement account within the meaning of section 29 of the Regulation respecting supplemental pension plans (O.C. 1158-90, 90-08-08)) or, if the employee has fewer than 2 years of service, into a registered retirement savings plan, of the greater of
(1) the actuarial value of the total pension, including any pension credit established at the date on which the employee ceases to be a member, in accordance with the actuarial method and assumptions provided for in Schedule V, without taking into account the years of service added pursuant to section 22; and
(2) the total of the contributions with interest accrued, if any, in accordance with the plan, the former pension plan or the Government and Public Employees Retirement Plan until that date.
The amount withheld pursuant to the first paragraph bears interest, compounded annually, at the rates in Schedule VII to the Act, from the first day of the month following the month in which the employee ceases to be a member of the plan until the date on which the application is received at Retraite Québec, and at the rate in Schedule VIII to the Act from the day following that latter date until the end of the month in which the transfer is carried out.
The amount withheld pursuant to the first paragraph may not exceed the limit established under the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) as if the transfer were carried out on the date on which the employee ceased to be a member of the plan. In addition, the amount transferable pursuant to the first and second paragraphs may not exceed the limit established for that purpose under that Act. Where applicable, any amount that cannot be transferred into a locked-in retirement account or into a registered retirement savings plan is reimbursed to the employee. In the event of death, the amount transferable and any amount that would have been reimbursed to the employee are paid to the spouse or, if there is no spouse, to the successors.
The transfer and, where applicable, the reimbursement provided for in this section give entitlement to the payment of any other benefit payable under this Order in Council, the plan or the Government and Public Employees Retirement Plan.
For the purposes of the first paragraph, contributions include the amounts referred to in section 73 of the Act and the total of those contributions is established taking into account the second paragraph of section 77 and section 79 of the Act. In addition, in the case where section 140 of the Act applies, contributions and the actuarial value of the pension that relate to the years and parts of a year of service credited under sections 126, 130 and 139 of the Act are excluded. Contributions also include the amounts that the employee paid or that were transferred to the Government and Public Employees Retirement Plan and for which the employee has acquired a pension credit.
O.C. 960-2003, s. 16; O.C. 725-2004, s. 1; O.C. 482-2005, s. 3.