### 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

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 determined in accordance with the Standard of Practice for Determining Pension Commuted Values confirmed by the board of directors of the Canadian Institute of Actuaries on 15 June 2004, hereafter called 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 those 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.

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) Proportion of married persons at retirement:
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Age Male Female
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18 - 64 years old 85% 65%
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65 - 79 years old 80% 30%
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80 - 109 years old 60% 10%
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110 years old 0% 0%
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(7) 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.
O.C. 961-2003, Sch. II; O.C. 1235-2005, s. 5.