Adoption of the C.T. 213377 amending the Pension Plan for Federal Employees Transferred to Employment with the gouvernement du Québec (RLRQ., c. R-10, r. 10)

Changes to Your Pension Plan

The C.T. 213377 amending the Pension Plan for Federal Employees transferred to Employment with the gouvernement du Québec (RLRQ., c. R-10, r. 10) was adopted on November 19, 2013. The regulation sets, among other things, the rules to follow regarding the annual contribution rates. The plan's contribution rate is amended. Furthermore, new periods are determined to calculate the average pensionable salary and the coordination with the Quebec Pension Plan (QPP).

The main modifications are presented below.

Amendment to the Rules Regarding Contribution Rates Calculation

Coming into effect: January 1, 2014

A capitalization ratio, determined from the results of the plan's actuarial valuation or its update, will be introduced on January 1, 2014, in order to determine the annual contribution rates. The capitalization ratio, expressed as a percentage, is estimated in particular from the assets and liabilities' market value

Therefore, the contribution rates can vary every year from January 1st following an actuarial valuation or its annual update, depending on the capitalization ratio estimated from its results:

• If the capitalization ratio is lower than 100%, the contribution rates can be increased.
• If the capitalization ratio is equal to or higher than 100%, but lower than 110%, the contribution rates are the ones provided in the plan.
• If the capitalization ratio is equal to or higher than 110%, but lower than 120%, the contribution rates are reduced by half.
• If the capitalization ratio is equal to or higher than 120%, the contribution rates are 0%.

The contribution rate after 35 years of service is 0% if the annual contribution rates are 0%.

Amendment to the Contribution Rate

Coming into effect: January 1, 2014

The PPFEQ's contribution rate will be 0% starting January 1, 2014.

Amendment to the Defined Period for the Calculation of the Average Pensionable Salary

Coming into effect: January 1, 2014

Starting on January 1, 2014, the average pensionable salary used for the calculation of a pension is calculated based on the 5 best-paid consecutive years.

Amendment to the Defined Period for the Calculation of the Coordination with the Quebec Pension Plan (QPP)

Coming into effect: January 1, 2014

Starting on January 1, 2014, coordination with the QPP will be calculated on the part of the average pensionable salary that does not exceed the average of the maximum pensionable earnings (MPE) for the retirement year and the 4 preceding years.