60.6. The target level of the stabilization provision provided for under section 125 of the Act is determined using the following scale, based on the percentage of the assets allocated to variable-yield investments in accordance with the target set out in the plan’s investment policy in effect at the date of the actuarial valuation of the plan, and the ratio between the duration of the assets and the duration of the liabilities at that date:
| || ||Target level of the stabilization provision (%)|| |
| || ||Duration of the assets/ Duration of the liabilities (%)|| |
| || ||0||25||50||75||100|| |
| ||0||10||8||7||6||5|| |
| ||20||12||10||9||8||7|| |
|allocated to||50||17||15||14||13||13|| |
| ||100||33||32||32||32||32|| |
| || || || || || || || |
Assets allocated to variable-yield investments are those not allocated to fixed-income investments.
Where the percentage of the assets of the plan allocated to variable-yield investments or the ratio between the duration of the assets and the duration of the liabilities is between two percentage points indicated on the scale, the target level of the stabilization provision is calculated using a linear interpolation and rounded off to the first decimal.
608-2016O.C. 608-2016, s. 21; 1107-2019O.C. 1107-2019, s. 181; I.N. 2019-12-01.