The degree varies depending on the type of statement and the information requested.
Annual statement for active members – Part 1
Objective:
To indicate the amount that could have been transferred if the member had ceased to be active at the end of the fiscal year and had requested the transfer of his or her benefits.
Degree:
Degree of solvency that would have been used at the end of the fiscal year.
Example 1: Fiscal year ending on 31 December 2019
The most recent degree is generally the one indicated on the last report or notice sent to Retraite Québec on 31 December 2019, i.e. the degree established as at 31 December 2018.
Example 2: Fiscal year ending on 31 December 2020
The degree of solvency must correspond to the most recent degree of solvency estimated 2020. If no degree of solvency has been estimated, it must correspond to the last one that was sent to Retraite Québec, that is, the one as at 31 December 2019.
Note that if the degree of solvency as at 31 December 2020 was sent to Retraite Québec during production of the annual statements, it cannot be used to calculate the adjusted value in proportion to the degree of solvency.
Annual statement for non-active members – Part 1
Objective:
- To indicate the amount that could have been transferred if the member were still eligible to transfer his or her benefits and had so requested at the end of the fiscal year.
- To inform members about the evolution of the solvency ratio for the purpose of the possible transfer of their benefits.
Degree:
- Degree of solvency that would have been used at the end of the fiscal year (see examples for active members).
- The most recent degree set at the time the statement is prepared, if different from the degree that would have been used at the end of the fiscal year. See example below.
Examples
The statements as at 31 December 2019 are prepared in October 2020. At that time, the most recent event is the death of a member who had not retired, in August 2020. The degree of solvency as at 31 July 2020 was estimated. The statement should indicate this degree.
Statements as at 31 December 2020 are prepared in September 2021. The notice required under section 119.1 of the Supplemental Pension Plans Act as at 31 December 2020 was sent to Retraite Québec on 31 August 2021. The statement must indicate the degree of solvency as at 31 December 2020.
Annual statement – Part 2
Objective:
To take the plan's financial situation into account.
Degree:
The most recent degree set for funding purposes, and not for payment purposes, on the date the statement is prepared.
Example 1: Fiscal year ending 31 December 2019
The statements are prepared in October 2020. The notice provided for under section 119.1 of the Supplemental Pension Plans Act as at 31 December 2019 is sent to Retraite Québec on 15 September 2020. The statement should indicate the degree specified on the 31 December 2019 notice. Of course, information about the evolution of the plan's financial situation can be added after that date.
Example 2: Fiscal year ending 31 December 2020
The statements are prepared in September 2021. The notice provided for under section 119.1 of the Supplemental Pension Plans Act as at 31 December 2020 is sent to Retraite Québec on 31 August 2021. The statement should indicate the degree specified on the 31 December 2020 notice.
Note that the information mentioned above applies both to active members and non-active members.
Statement of cessation of membership
Objective:
To provide information about amounts that can be transferred or reimbursed.
Degree:
The degree specified in the temporary measures.
Example: End of active membership on 20 July 2020. The degree indicated must be the one estimated as at 30 June 2020.