Canadian Forces Superannuation Regulations

16.95 (1) For the purposes of subsection (2), the actuarial valuation report is the actuarial valuation report most recently laid before Parliament, under section 56 of the Act, before the date of the option or, if that report was laid before Parliament in the month in which the option was exercised or in the preceding month, the preceding report that was laid before Parliament.

(2) In determining the actuarial present value of a contributor’s accrued pension benefits, the following actuarial assumptions are to be used:

• (a) the mortality rates for contributors and survivors are the mortality rates, including annual percentages of mortality reduction, used in the preparation of the actuarial valuation report;

• (b) the interest rates are the interest rates for fully indexed pensions — adjusted by the interest rates for unindexed pensions to take into account Part III of the Act — determined in accordance with the section entitled “Pension Commuted Values” of the Standards of Practice — Practice-Specific Standards for Pension Plans, published by the Canadian Institute of Actuaries, as amended from time to time;

• (c) the probability that a contributor will be survived by children is based on the rates regarding the average number, average age and eligibility status of children at the death of a contributor, used in the preparation of the actuarial valuation report;

• (d) the probability that a contributor will become entitled to an annuity under paragraph 16(1)(d) of the Act is based on the rates of termination owing to disability used in the preparation of the actuarial valuation report, taking into account the probability — as set out in that report — that there would be immediate eligibility for a disability pension under the Canada Pension Plan or a provincial pension plan; and

• (e) the probability that a contributor will have a survivor at death is based on the probability that a contributor will have a survivor at death and on the age difference between those persons that was used in the preparation of the actuarial valuation report.