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7. In this section, “CIA Standard” refer to the standards of practice entitled “Practice-Specific Standards for Pension Plans - 3500 Pension Commuted Values” of the Canadian Institute of Actuaries.

The actuarial value of the benefits is determined by using the “distribution of benefits” method and corresponds to the sum of 70% of the actuarial value determined for a male and of 30% of the actuarial value determined for a female.

The actuarial value is also determined by using the following actuarial assumptions:

(1) mortality rates:

The mortality rates are those determined in accordance with the CIA Standards.

(2) interest rates:

(a) the interest rates for fully-indexed benefits or non-indexed benefits are those determined in accordance with the CIA Standards;

(b) the interest rates for partially-indexed benefits are 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 adjusted in accordance with the CIA Standards.

(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 standards;

(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 for 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 years | 90% | 60% |

55-59 years | 85% | 60% |

60-64 years | 85% | 55% |

65-69 years | 80% | 50% |

70-74 years | 80% | 40% |

75-79 years | 80% | 30% |

80-84 years | 75% | 20% |

85-89 years | 60% | 10% |

90-109 years | 50% | 5% |

110 years and over | 0% | 0% |

(7) age difference between spouses at death:

(a) the male spouse of the member is assumed to be 1 year older;

(b) the female spouse of the member is assumed to be 4 years younger.

7. In this section, “CIA Standards” refer to the standards of practice entitled “Practice-Specific Standards for Pension Plans -3800 Pension Commuted Values” of the Canadian Institute of Actuaries, in force since 1 February 2005 and periodically revised.

The actuarial value of the benefits is determined by using the “distribution of benefits” method and corresponds to the sum of 80% of the actuarial value determined for a male and of 20% of the actuarial value determined for a female.

The actuarial value is also determined by using the following actuarial assumptions:

(1) mortality rates:

The mortality rates are those determined in accordance with the CIA Standards.

(2) interest rates:

(a) the interest rates for fully-indexed benefits or non-indexed benefits are those determined in accordance with the CIA Standards;

(b) the interest rates for partially-indexed benefits are 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 adjusted in accordance with the CIA Standards.

(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 standards;

(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 for 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 Addition to Adjusted

level the result of indexing rate

the 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

___________________________________________________________________________________

Inflation Addition to Adjusted

level the result of indexing rate

the 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 85% 65%

___________________________________________________________________________________

65-79 years 80% 30%

___________________________________________________________________________________

80-109 years 60% 10%

___________________________________________________________________________________

110 years 0% 0%

___________________________________________________________________________________

Age Male Female

___________________________________________________________________________________

18-64 years 85% 65%

___________________________________________________________________________________

65-79 years 80% 30%

___________________________________________________________________________________

80-109 years 60% 10%

___________________________________________________________________________________

110 years 0% 0%

___________________________________________________________________________________

(7) age difference between spouses at death:

(a) the male spouse of the member is assumed to be 1 year older;

(b) the female spouse of the member is assumed to be 4 years younger.