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8. For the purposes of this Division, the expression “CIA Standard” refers to section 3500 of the Standards of Practice of the Canadian Institute of Actuaries concerning pension commuted values in force on 1 February 2022.

The actuarial value of the pension referred to in sections 41.12 and 103 of the Act is determined using the following actuarial method and assumptions:

Actuarial method

The actuarial method is the “benefit allocation” method.

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) Turnover rate: Nil

(5) Disability rate: Nil

(6) Proportion of persons with a spouse at death:

Age | Male | Female |

18-59 years old | 65% | 60% |

60-64 years old | 65% | 55% |

65-69 years old | 60% | 50% |

70-74 years old | 60% | 40% |

75-79 years old | 60% | 30% |

80-84 years old | 60% | 20% |

85-89 years old | 50% | 10% |

90-109 years old | 40% | 5% |

110 years old and older | 0% | 0% |

(7) 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 5 years younger.

(8) Retirement age:

For the purposes of section 41.12 of the Act, the retirement age is the age on the date on which membership ceases as determined pursuant to section 8.7 or 8.8 of the Act.

For the purposes of section 103 of the Act, the retirement age is the age attained at the date of payment of the actuarial value.

For the purposes of section 41.12 of the Act, 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.

For the purposes of section 103 of the Act, the economic assumptions are established based on the rates and returns of bond indexes, as described in the CIA Standard, applicable to the fourth calendar month preceding the month in which the valuation took place, rather than those applicable to the preceding month.

8. The actuarial value of the pension referred to in section 103 of the Act is determined using the following actuarial method and assumptions:

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 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.

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

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) Proportion of married persons at death:

___________________________________________

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%

___________________________________________

(7) 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.

(8) Retirement age:

Age attained at the date of payment of the actuarial value.