R-15.1, r. 6.1.1 - Regulation concerning certain Papiers White Birch pension plans

Updated to 1 July 2024

This document has official status.

chapter R-15.1, r. 6.1.1

Regulation concerning certain Papiers White Birch pension plans

Supplemental Pension Plans Act

(chapter R-15.1, s. 2, 2nd and 3rd pars.).

DIVISION I COMPONENTS OF A PENSION PLAN

1. A pension plan referred to in Appendix A is comprised of 2 or 3 components, that is, a current component and 1 or 2 past components.

The liabilities of the current component of a pension plan correspond to the portion of the liabilities of the plan related to obligations arising from services rendered as of the date of coming into force of the plan.

The past component of a pension plan means a component whose liabilities are related to credited service under a pension plan which has been terminated. The pension plans that have been terminated are referred to in Appendix B.

The pension plan designated by number 32198 has only one past component.

The pension plans designated by numbers 32197 and 32199 have 2 past components. The liabilities of the past component referred to as the “past component for the retirees” is the portion of the liabilities of the plan related to the members and beneficiaries of that plan to whom a pension was being paid prior to 13 September 2012 by a terminated pension plan. The liabilities of the past component referred to as the “past component of the other members” correspond to the balance of the liabilities of the plan related to credited service under a terminated pension plan.

The pension fund of a pension plan is divided into as many distinct accounts as the number of components in the plan.

O.C. 1025-2013, s. 1.

2. At the effective date of a pension plan referred to in Appendix A, the assets of a past component of a plan correspond, for the purpose of determining its solvency and funding, to the value of the amounts to be transferred to the component further to the termination of a pension plan referred to in Appendix B.

O.C. 1025-2013, s. 2.

3. For the purposes of section 39, Chapters X (Solvency and funding), X.1 (Appropriation of surplus assets) and XII (Division and merger), Division II of Chapter XI (Investments) and Chapter XIII (Rights of members and beneficiaries on winding-up) of the Supplemental Pension Plans Act (chapter R-15.1), the liabilities of a component and the corresponding account of the pension fund are considered to be separate from the liabilities and corresponding account of any other component.

However, where a pension plan has only one past component, the surplus assets of that component may be appropriated to the payment of employer contributions of the current component of the plan.

O.C. 1025-2013, s. 3.

DIVISION I.1 EMPLOYER CONTRIBUTION TO A PAST COMPONENT

O.C. 1309-2013, s. 1.

3.1. Notwithstanding section 39 of the Act, the employer contribution that an employer must pay into the account of a past component of a pension plan referred to in Appendix A for a fiscal year ending no later than 31 December 2022 corresponds to the total of the amortization payment relating to the discounted projected actuarial deficiency and the special amortization payments payable during the fiscal year.

O.C. 1309-2013, s. 1.

§ 1 . — Amortization payment relating to the discounted projected actuarial deficiency

O.C. 1309-2013, s. 1.

3.2. The amortization payment relating to the actuarial deficiency of a past component of a pension plan is determined based on the discounted projected actuarial deficiency of the component.

O.C. 1309-2013, s. 1.

3.3. Notwithstanding section 142 of the Act, for the purpose of the actuarial valuation as at 13 September 2012 and subsequent valuations for the 2013 to 2017 fiscal years, the amortization period for the discounted projected actuarial deficiency of a past component of a pension plan begins on the date of the actuarial valuation on which it is determined and ends on the fiscal year end date of the tenth year following that valuation.

In the case of actuarial valuations for subsequent fiscal years, the amortization period ends on 31 December 2027.

O.C. 1309-2013, s. 1.

3.4. The projected actuarial deficiency and the amortization payment relating to the discounted projected actuarial deficiency are determined according to whether the target degrees of solvency prescribed below are achieved on the following dates:

(1)  85% as at 31 December 2022 for the actuarial valuation as at 13 September 2012;

(2)  88% as at 31 December 2023 for the actuarial valuation for the 2013 fiscal year;

(3)  91% as at 31 December 2024 for the actuarial valuation for the 2014 fiscal year;

(4)  94% as at 31 December 2025 for the actuarial valuation for the 2015 fiscal year;

(5)  97% as at 31 December 2026 for the actuarial valuation for the 2016 fiscal year;

(6)  100% as at 31 December 2027 for the subsequent actuarial valuations.

O.C. 1309-2013, s. 1.

3.5. The discounted projected actuarial deficiency corresponds to the value of the projected actuarial deficiency at the end date of the projection, discounted at a rate of 5.5% on the date of the actuarial valuation.

O.C. 1309-2013, s. 1.

3.6. At the date of an actuarial valuation of a past component of a pension plan, the projected liabilities as at the end date of the projection are obtained by assuming that, between the date of the valuation and the end date, with regard to solvency liabilities for the affected component as at the date of the valuation, contingencies based on actuarial assumptions as to survival, morbidity, mortality, employee turnover, eligibility for benefits or other factors will occur and by assuming that termination of the plan will occur at the end date of the projection. The actuarial assumptions and methods used shall be consistent with generally accepted actuarial principles and must be suited, in particular, to the type of plan concerned, its obligations and the position of the account of the affected component of the pension plan.

Moreover, the projected liabilities at the end date of the projection are determined using the assumptions for hypothetical wind-up and solvency valuations established by the Canadian Institute of Actuaries, with regard to the benefits of the members and beneficiaries whose pension would be in payment on that date. For the benefits of the other members and beneficiaries, they are determined in accordance with the assumptions and rules referred to in section 67.4 of the Regulation respecting supplemental pension plans (R-15.1, r. 6). The applicable rules are those that apply on the date of the actuarial valuation.

O.C. 1309-2013, s. 1.

3.7. At the date of the actuarial valuation of a past component of a pension plan, the projected assets as at the date of the end of the projection include the special amortization payments provided for in subdivision 2 to be paid into the plan until that date.

Furthermore, the projected assets of the past component at the date of the end of the projection are obtained on the basis of the market value of the assets of that component at the date of the valuation by assuming that no contributions are made between the date of the valuation and the end date, with the exception of the contribution provided for in section 3.9, and by assuming an annual interest rate of 5.5%. That value is adjusted to take into consideration the benefits and other amounts to be paid during that period, assuming the contingencies in the first paragraph of section 3.6 will occur.

O.C. 1309-2013, s. 1.

3.8. The monthly amortization payments relating to the discounted projected actuarial deficiency of the past component are determined assuming a 5.5% interest rate.

O.C. 1309-2013, s. 1.

§ 2 . — Special amortization payment

O.C. 1309-2013, s. 1.

3.9. Notwithstanding section 132 of the Act, where, further to an amendment, other than an amendment referred to in section 4, made after 13 September 2012, but before 31 December 2022 with regard to the component in question, an actuarial valuation determines the value of additional obligations of that component, a special amortization payment is determined.

The payment corresponds to the higher of the value of the additional obligations determined on a solvency basis or their value determined on a funding basis.

The special amortization payment shall be made as soon as the report on the first actuarial valuation to take the amendment into consideration is sent to Retraite Québec. To such payment shall be added accrued interest, if any, from the date of the valuation, calculated at the rate referred to in section 48 of the Act.

For the purposes of the Act, the special amortization payment is considered the special amortization payment provided for in section 132 of the Act.

O.C. 1309-2013, s. 1.

§ 3 . — Period of application of the measures

O.C. 1309-2013, s. 1.

3.10. The provisions of this Division cease to apply on 31 December 2022. However, they cease to apply, where applicable, on the first of the following dates prior to 31 December 2022:

(1)  the date of the first actuarial valuation showing that the past component of the plan is solvent;

(2)  the date fixed in a writing giving instructions to that effect for all pension plans referred to in Appendix A, and sent to the pension committee and Retraite Québec by the group of employers party to the plans.

O.C. 1309-2013, s. 1.

DIVISION II SPECIAL MEASURES FOR THE PAST COMPONENTS OF PLANS 32197 AND 32199

4. Is exempt from the application of paragraph 2 of section 130 and sections 132 and 216 of the Act, the amendment of a pension plan that grants benefits referred to as “additional benefits related to early retirement” to the member of a past component of the other members of a pension plan designated by number 32197 or 32199, where the following conditions are met:

(1)  the member is at least age 55 but under age 65 at the time his period of continuous services ends;

(2)  his period of continuous service ends during the calendar year in which the amendment is made or during the preceding calendar year;

(3)  his period of continuous service ends prior to the date on which the plan is terminated;

(4)  during the existence of the plan, the plan text provides for the funding by the employer of additional liabilities whose value is established on a solvency basis in any actuarial valuation on the assumption that the additional benefits related to early retirement are allocated to any member of a past component of the other members who is at least age 55 but under age 65;

(5)  the additional benefits related to early retirement are described in detail in the copy of the plan text that accompanies the application for registration of the pension plan submitted to Retraite Québec.

The additional benefits referred to in this section are not considered additional obligations within the meaning of section 128, paragraph 1 of section 130, sections 131 and 135 and the third paragraph of section 146.1 of the Act.

O.C. 1025-2013, s. 4.

5. Notwithstanding section 3, the surplus assets of the past component of the retirees may at any time be appropriated to the payment of either the deficit or employer contributions of the past component of the other members and vice versa.

Where both past components have surplus assets, the surplus assets of a past component can be allocated to the payment of the employer contributions to the current component of the pension plan.

O.C. 1025-2013, s. 5.

6. The assets and liabilities of the past component of the retirees and those of the past component of the other members can be merged into a single component only at the date of an actuarial valuation showing that a new component resulting from their merger is solvent and fully funded.

O.C. 1025-2013, s. 6.

DIVISION III ACTUARIAL VALUATION REPORT

7. The actuarial valuation report for a pension plan shall present separately the information related to each component.

O.C. 1025-2013, s. 7.

8. With respect to a past component of a pension plan, the actuarial valuation report shall contain the information and statements of the actuary provided for in the Section of the Canadian Institute of Actuaries’ Standards of Practice to which section 4 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6) refers, as well as the information required by paragraphs 1 to 5 of that section and sections 4.1 to 4.6 of that regulation.

For such purposes, it is understood that these provisions and standards apply to each past component of the pension plan as though it were a separate pension plan.

O.C. 1025-2013, s. 8.

8.1. With respect to the actuarial deficiencies of the past component determined at the date of the valuation, the report must, where it pertains to a valuation carried out prior to 31 December 2022, contain the following information:

(1)  the amount of the funding deficiency;

(2)  the amount of the discounted projected actuarial deficiency, the calculations pertaining to its determination and the monthly payments related to amortization payments to be made until the end date of the projection.

O.C. 1309-2013, s. 2.

8.2. The actuarial valuation report for a past component whose date corresponds to the one determined in accordance with section 3.10 shall mention that the special funding rules for the past component provided for in this Regulation cease to apply to the pension plan as of that date.

O.C. 1309-2013, s. 2.

DIVISION IV COMMUNICATIONS

9. The second part of the statement provided for in section 108 of the Act shall mention that, for as long as the plan is comprised of separate components, the liabilities of each component and the corresponding account of the pension fund are considered to be separate from the liabilities and the account of any other component for the purposes of the payment of the share that goes to the spouse.

O.C. 1025-2013, s. 9.

10. The information that the statements provided for under sections 108, 112, 113 and 207.3 of the Act must contain is determined for each component as though they were separate plans. The information relating to each component shall be presented separately on the statements.

The statements shall also mention that for the purposes of the payment of the benefits of the members and beneficiaries of the plan, for as long as the plan is comprised of separate components, the liabilities of each component and the corresponding account of the pension fund are considered to be separate from the liabilities and the account of any other component.

O.C. 1025-2013, s. 10.

11. Retraite Québec may require from a pension committee, a provisional administrator or an employer party to a pension plan, on the conditions and within the time limits established by Retraite Québec, any document, information or report that it deems necessary for ascertaining that the requirements imposed by this Regulation are met, particularly concerning the amounts to be transferred to each of the past components further to the termination of a pension plan referred to in Appendix B.

O.C. 1025-2013, s. 11.

DIVISION V MISCELLANEOUS PROVISIONS

12. This Regulation does not have the effect of creating, for the employer party to the pension plans referred to in Appendix A, any obligations in respect of the pension plans referred to in Appendix B.

O.C. 1025-2013, s. 12.

13. Notwithstanding the second paragraph of section 118 of the Act, any actuarial valuation provided for under the first paragraph of that section that concerns a past component must be complete.

O.C. 1025-2013, s. 13.

13.1. This Regulation is exempt from the application of section 42.1 of the Act.

O.C. 1309-2013, s. 3.

13.2. Notwithstanding section 130 of the Act, no improvement unfunded actuarial liability is determined for an amendment to the past component of a pension plan made prior to the date determined in accordance with section 3.10 for that plan.

O.C. 1309-2013, s. 3.

13.3. This Regulation is not a regulation referred to in the third paragraph of section 230.0.0.9 of the Act.

O.C. 1309-2013, s. 3.

13.4. With the exception of the first fiscal year, which extends from 13 September 2012 to 31 December 2013, the fiscal year of a pension plan referred to in this Regulation corresponds to the calendar year.

O.C. 1309-2013, s. 3.

14. (Omitted).

O.C. 1025-2013, s. 14.

Appendix A

(ss. 1, 2, 12)

Pension plans

Number under which                          Probable name of the plan at the time
the plan is designated                      of registration
at Retraite
Québec

32197                                       Régime complémentaire de retraite des
                                            employés syndiqués de la Société en
                                            Commandite de Papier Masson WB

32198                                       Régime complémentaire de retraite des
                                            employés syndiqués de la Société en
                                            Commandite Stadacona WB

32199                                       Régime complémentaire de retraite des
                                            employés syndiqués de la Société en
                                            Commandite FF Soucy WB
    

O.C. 1025-2013, Appendix A.

Appendix B

(ss. 1, 2, 11, 12)

Terminated pension plans

Number under which                          Name of the plan at the date
the plan is registered                      of its termination
with Retraite
Québec

24480                                       Régime de retraite des employés 
                                            syndiqués de Stadacona

26552                                       Régime complémentaire de retraite  
                                            des employés syndiqués d’usine 
                                            de F.F. Soucy

30735                                       Régime complémentaire de retraite 
                                            des employés syndiqués de bureau 
                                            de F.F. Soucy

31765                                       Régime de retraite des employés 
                                            syndiqués de PML
    

O.C. 1025-2013, Appendix B.

REFERENCES

O.C. 1025-2013, 2013 G.O. 2, 3089

O.C. 1309-2013, 2013 G.O. 2, 3627A

S.Q. 2015, c. 20, s. 61