Clicking the Parameters button for a Quebec applicable provincial law selection under the Minimum Funding Amortization Bases topic leads you to additional parameters that specify which Applicable Quebec Law applies:

• Supplemental Pension Plans Act,

• Supplemental Pension Plans Act (pre-Bills 30 & 68), or

• The Regulation respecting the funding of municipal and university sectors.

If Supplemental Pension Plans Act is selected, the Supplemental Pension Plan Act as of 1/1/2007 and as amended by Bills 30 & 68 will be applied. Note that this selection will be valid only if the initial valuation date is 1/1/2010 or later. Valuation Sets or forecasts with a Valuation Date prior to 1/1/2010 will not run.

If Supplemental Pension Plans Act (pre-Bills 30 & 68) is selected, the provisions of only the Supplemental Pension Plans Act as of 1/1/2007 will be applied.

If Regulation respecting funding of the municipal and university sectors is selected, the provisions applicable to municipal and university plans will be applied, which provisions include an exemption from the solvency provisions of the Supplemental Pension Plans Act of 1/1/2007 and divide the market value of assets into a general account and a reserve.

If you select either Supplemental Pension Plans Act or Regulation respecting funding of the municipal and university sectors, then you must complete the following parameters:

• The provision for adverse deviation is: xx % of the solvency liability. Enter, in the text field, a percentage that is assumed to remain constant during a forecast.
• Value of amendments measured for the first time on the valuation date. Enter the amount of the increase in solvency liability due to any plan improvements measured on the Valuation Date. Note that this value should be entered as $0 if the plan amendment is measured as an event in Valuation Sets. The value entered here will be used to calculate the correct special amortization payment.
• For the degree of solvency calculation, adjust assets and liabilities by. Enter the dollar value of the amount to be subtracted from the solvency assets and liabilities per section 127 of the Supplemental Pension Plans Act. This amount represents additional voluntary contributions, defined contribution plan-type contributions with accrued interest and transfer-in amounts. To determine the degree of solvency during a forecast, you must specify the percentage that the dollar value entered will be increased by each year in the future.

If you select Regulation respecting the funding of municipal and university sectors, you must complete the following Additional information for municipal and university sectors parameters:

• Reserve at valuation date. Enter the reserve amount to subtract from the market value of assets to determine the general account value as of the Valuation Date.
• Excess contributions for prior year. Enter the excess of contributions actually made over the minimum contribution. This value will be used to split the gain for the prior year into a technical gain and the gain attributable to excess contributions.
• The This is the first complete valuation after December 30, 2011 parameter is used to determine when to eliminate technical deficiency bases that were kept during the transition period as defined by the regulations. If this box is checked, amortization payments will be eliminated if the Eliminate the base in the first valuation after 12/30/2011 box is checked (found on the Minimum Funding Amortization Basis dialog box of each liability base). If this box is unchecked, i.e., this is not the first valuation after 12/30/11 (and thus the date December 31, 2011 occurs after the initial valuation date), then, in a forecast, ProVal will be able to determine when the first complete valuation after December 30, 2011 occurs.

Check the box, accessible for the Supplemental Pension Plans Act and Regulation respecting funding of the municipal and university sectors selections, to Apply surplus assets to value of plan amendments if you want any available surplus to offset the value of any new plan amendment prior to establishing a new funding deficiency. If you do not check this box, a new funding deficiency will be established even if surplus exists.