Actuarial valuation frequency
- Although Bill 3 (the Act to foster the financial health and sustainability of municipal defined benefit plans) has been tabled, if an actuarial valuation report as at 31 December 2013 is required, it must be submitted to the Régie by 30 September 2014 at the latest. Otherwise, late fees will apply for each complete month of delay as of 1 November 2014.
- 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.
Private sector pension plans
|Complete valuation at the end of each fiscal year of the plan
||A partial valuation is allowed at the end of the fiscal year if the plan is funded and solvent.
A complete valuation is required at least once every three years at the end of the fiscal year.Note
Pension plans of the municipal and university sectors
|Complete valuation at least once every three years at the end of the plan's fiscal year.Note
A complete valuation is required in either of the following cases:
- a plan amendment has an impact on plan funding and the valuation is carried out at the end of the fiscal year or on another date, but within the time limits allowed;
- surplus assets are used to pay employer contributions and the valuation is carried out at the end of the fiscal year preceding the use of the surplus assets.
A partial valuation is allowed, subject to the following two conditions:
- The valuation is carried out at the end of a fiscal year;
- No complete valuation is required by law or by the Régie on that date.
A helpful example...
The fiscal year of the pension plan for ABC University ends on 31 December. The complete actuarial valuation as at 31 December 2012 shows surplus assets of 100 $. No amortization payment is required in 2013, and the provision for adverse deviation is 10 $. ABC University takes a contribution holiday of 25 $ in fiscal year 2013.
In order for the university to take another contribution holiday of 25 $ in fiscal year 2014, a complete or partial actuarial valuation must be carried out as at 31 December 2013. The valuation must demonstrate sufficient surplus assets to cover the contribution holiday.
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.