### R-9.3, r. 1 - Regulation respecting the application of the Act respecting the Pension Plan of Elected Municipal Officers

9.0.1. The actuarial value of the deferred annuity referred to in section 49 of the Act is determined using the following actuarial method and assumptions:
Actuarial method
The actuarial method is the “benefit allocation” method and the actuarial value corresponds to the sum of 70% of the actuarial value determined for a male and 30% of the actuarial value determined for a female.
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)  Rate of interests:
For fully-indexed and non-indexed benefits:
The rate of interests are those determined in accordance with the CIA Standard.
For partially-indexed benefits:
The rate of interests are those determined according to the following formula:
((1+ rate of interest for a non-indexed benefit)/(1 + indexing rate for a partially-indexed benefit))- 1
The result must be rounded to the nearest multiple of 0.10%.
(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%, the indexing rate corresponds to the excess of the indexing rate computed in the manner provided in subparagraph a over 3%.
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 0 0.00 0.00 0.5 0.00 0.00 1.0 0.00 0.00 1.5 0.05 0.05 2.0 0.10 0.10 2.5 0.20 0.20 3.0 0.40 0.40 3.5 0.20 0.70 4.0 0.10 1.10 4.5 0.05 1.55
(4)  Turnover rate: Nil
(5)  Disability rate: Nil
(6)  Proportion of persons with a spouse at death:
 Age Male Female 18-54 0.90 0.60 55-59 0.85 0.60 60-64 0.85 0.55 65-69 0.80 0.50 70-74 0.80 0.40 75-79 0.80 0.30 80-84 0.75 0.20 85-89 0.60 0.10 90-109 0.50 0.05 110 and older 0.00 0.00
(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.
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 evaluation took place, rather than those applicable to the preceding month.
O.C. 20-2007, s. 5; O.C. 954-2022, s. 2.
9.0.1. The actuarial value of the deferred annuity referred to in section 49 of the Act is determined using the following actuarial method and assumptions:
Actuarial method
The actuarial method is the “benefit allocation” method and the actuarial value corresponds to the sum of 80% of the actuarial value determined for a male and 20% of the actuarial value determined for a female.
Actuarial assumptions
(1)  Mortality rates:
The mortality rates are those determined in accordance with the CIA Standard.
(2)  Rate of interests:
For fully-indexed and non-indexed benefits:
The rate of interests are those determined in accordance with the CIA Standard.
For partially-indexed benefits:
The rate of interests are those determined according to the following formula:
((1+ rate of interest 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%, the indexing rate corresponds to the excess of the indexing rate computed in the manner provided in subparagraph a over 3%.
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 result of the indexing rate
PI-3% formula

0.5 0.1 0.1

1.0 0.1 0.1

1.5 0.3 0.3

2.0 0.5 0.5

2.5 0.7 0.7

3.0 1.0 1.0

3.5 0.8 1.3

4.0 0.6 1.6

4.5 0.5 2.0

5.0 0.4 2.4

(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%

(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.
O.C. 20-2007, s. 5.