60.4. Where the value represented by “R” of section 60.3 is null, “D” of that section is equal to zero.
In other cases, “D” corresponds to the result, in absolute value, of the following formula:
R x dR - V x dM
“R” represents element “R” of section 60.3;
“dR” represents the duration of the liabilities constituting “R”;
“V” represents the lesser of
(1) the amount that is equivalent to the product of the assets of the pension plan at the date of the actuarial valuation and the average of the percentages represented by the amount of the fixed-income investments taken into account for that calculation over the assets of the plan at the valuation date and the last day of each of the 11 months preceding the day of the valuation or, in the case of a plan effective for less than a year, the last day of each month included between the date of coming into force of the plan and the valuation date;
(2) the amount that is equivalent to the value represented by element “R”;
“dM” represents the result of the sum of each amount used to calculate the average referred to in paragraph 1 of element “V” multiplied by its term, divided by the total of those amounts.
For the purposes of paragraph 1 of element “V”:
(1) the plan’s assets are reduced by the value of guaranteed pensions and the value of the contributions referred to in paragraphs 1 and 2 of element “S” of section 60.3 which are the subject of a separate investment;
(2) the amount of the fixed-income investments of a pension plan is determined by including the amount of any variable income investment associated with a financial instrument that converts it into a fixed income investment but excluding the amount of any fixed income investment associated with a financial instrument that converts it into a variable income investment.