Special amortization payments and amortization payments
- The rules regarding pension plans of the university sector also apply to pension plans for Québec emergency medical technicians and early childhood centres (CPEs) and accredited private daycares in Québec.
- Different rules can apply to pension plans covered by a special regulation.
Special amortization payments
If the actuary considers an amendment for the first time in an actuarial valuation showing the plan's degree of solvency to be less than 90%, the actuary must determine the special amortization payment, which corresponds to:
Private sector pension plans
For each fiscal year or part thereof following the actuarial valuation date, the employer must make an amortization payment corresponding to:
An employer can provide an irrevocable standby letter of credit in order to partially or fully release itself from the obligation to make amortization payments if the amount of the letter does not exceed the sum of the amortization payments on a solvency basis and the special amortization payment.
Pension plans of the municipal and university sectors
For the entire period covered by the actuarial valuation, the employer must make an amortization payment into the pension fund corresponding to:
The instructions to the administrator to reduce certain monthly payments, as provided for in section 8 of the Regulation respecting the funding of pension plans of the municipal and university sectors, must be considered, as applicable.
A municipal sector pension plan is a plan where the employer is a municipality, a body referred to in section 18 of the Act respecting the Pension Plan of Elected Municipal Officers or a municipal housing bureau.