R-15.1, r. 3 - Regulation to provide a framework for settlement of the benefits of members and beneficiaries of plans covered by subdivision 4.0.1 of Division II of Chapter XIII of the Supplemental Pension Plans Act and for administration by Retraite Québec of certain pensions paid out of the assets of the plans

Updated to 1 July 2024

This document has official status.

chapter R-15.1, r. 3

Regulation to provide a framework for settlement of the benefits of members and beneficiaries of plans covered by subdivision 4.0.1 of Division II of Chapter XIII of the Supplemental Pension Plans Act and for administration by Retraite Québec of certain pensions paid out of the assets of the plans

Supplemental Pension Plans Act

(chapter R-15.1, s. 230.0.0.11).

DIVISION I GENERAL

1. This Regulation applies to the pension plans covered by subdivision 4.0.1 of Division II of Chapter XIII of the Supplemental Pension Plans Act (chapter R-15.1).

O.C. 863-2010, s. 1.

2. Settlement of the benefits of the members and beneficiaries of the plans is to be effected in accordance with the Act, taking into account the adjustments under Division 2.

O.C. 863-2010, s. 2.

3. The administration of pensions paid by Retraite Québec to plan members and beneficiaries who opted for that method of benefit payment is governed by Division 3.

O.C. 863-2010, s. 3.

4. The pension of a member or beneficiary affected by an employer’s withdrawal or by termination of the plan cannot be guaranteed between the date of withdrawal or termination and the date on which the benefits are paid.

O.C. 863-2010, s. 4.

DIVISION 2 SETTLEMENT PROCESS FOR BENEFITS OF MEMBERS AND BENEFICIARIES

§ 1 . — Distribution of the pension fund

5. As soon as the pension committee has the information required to determine, at the date of withdrawal of an employer party to a multi-employer plan or of termination of the plan, the assets of the plan and the benefits of the members and beneficiaries affected by the withdrawal or termination, it must distribute the pension fund into 2 accounts, one of which is the portion of assets corresponding to the benefits, other than those referred to in subparagraph 1 of the first paragraph of section 218 of the Act, of the members and beneficiaries whose pension must, under section 237 of the Act, to be guaranteed by an insurer and that are payable pursuant to section 218.

For a withdrawal of an employer, the assets to be distributed are the portion of the plan’s assets that is allocated to the group of benefits constituted pursuant to subdivision 3 of Division II of Chapter XIII of the Act and made up of the benefits of the members and beneficiaries affected by the employer’s withdrawal.

O.C. 863-2010, s. 5.

6. If, under the scenario used by the actuary in charge of preparing the withdrawal or termination report, guaranteed benefits of certain members or beneficiaries cannot be used as provided for in section 27.1 of this Regulation or in section 240 of the Act to guarantee the non-guaranteed benefits of other members or beneficiaries in the same account, the plan’s assets must include the commuted value of the guaranteed benefits determined in the contract or, in the absence of such a value, their fair market value determined on the basis of reasonable assumptions and cancellation fees.

O.C. 863-2010, s. 6; O.C. 426-2019, s. 1; S.Q. 2020, c. 30, s. 90.

7. For an employer withdrawal, the value of the benefits of the members and beneficiaries affected by the employer’s withdrawal that is to be used for the distribution into 2 accounts is the value that was used to distribute the plan’s assets under section 220 of the Act.

For a termination of the plan, the value of the benefits that is to be used is the value referred to in section 212.1 of the Act. In spite of the foregoing, for the purpose of determining the plan’s liabilities for the application of this section, the value of the pension that must be insured pursuant to section 237 of the Act is determined:

(1)  in cases where the pension was insured before the date of termination, on the basis of the premium established on that date using the assumptions for hypothetical wind-up and solvency valuations established by the Canadian Institute of Actuaries as they apply on the date on which the accounts are constituted; or

(2)  in all other cases, by discounting, at the date of termination, according to a rate that is the estimated rate of return of the assets of the plan to the date on which the accounts are constituted, the premium established on the date on which the accounts are constituted using the assumptions for hypothetical wind-up and solvency valuations established by the Canadian Institute of Actuaries as they apply at that latter date.

The liabilities shall also comprise, in the cases referred to in subparagraph 2 of the second paragraph and in spite of the third paragraph of section 212.1 of the Act, the value of the pension payments paid out of the pension fund to a member or beneficiary between the termination date and the date on which the accounts are constituted, such value being determined according to the rate referred to in that subparagraph.

O.C. 863-2010, s. 7.

8. The distribution of the assets is effective as of the date on which the employer withdraws or the plan is terminated.

The rate of return of each account is the rate obtained on the investment of the plan’s assets to the date on which the accounts are constituted. As of that date, the rate of return of each account is the rate obtained on the portion of the assets constituting the account.

O.C. 863-2010, s. 8.

§ 2 . — Withdrawal or termination report

9. Within 120 days of the date on which it is informed of a situation described in section 199 of the Act that gives rise to an amendment to the plan to cover the withdrawal of an employer from a multi-employer pension plan, the pension committee must file an application for registration of the amendment with Retraite Québec and, for approval, the report required under section 202 of the Act, hereinafter referred to as the withdrawal report.

Within 120 days after receipt of a notice of termination or a decision by Retraite Québec terminating the pension plan, the pension committee must send Retraite Québec, for approval, the termination report required under the first paragraph of section 207.2 of the Act.

If all or any part of the plan is under provisional administration, the time limit set out in the first and second paragraphs begins to run only on the effective date of Retraite Québec’s decision whereby it assumes the provisional administration or designates the person or body to whom it is entrusted.

O.C. 863-2010, s. 9; O.C. 426-2019, s. 2.

10. A pension committee proposing to apply for registration of the amendment allowing for the withdrawal of an employer is not required to send the notice required by section 200 of the Act; it must, however, inform the members as provided in section 26 of the Act.

O.C. 863-2010, s. 10.

11. The withdrawal or termination report must contain, in addition to the information required, as the case may be, by section 202 or 207.2 of the Act,

(1)  (paragraph revoked);

(2)  the date on which the accounts are constituted under subdivision 1 and the assets in each account on the date of the withdrawal or termination;

(3)  a description of the scenario used by the actuary to determine the value referred to in section 6 for each account;

(4)  a description of the method to be used at the time the benefits are settled to take into account any variations in the assets and liabilities of each account between the date of the withdrawal or termination and the date of the settlement; and

(5)  certification by the author of the report, in addition to the requirements of, as the case may be, subparagraph 14 of section 62 or subparagraph 13 of section 64 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6), that the report was prepared in conformity with the provisions of this Regulation.

O.C. 863-2010, s. 11; O.C. 503-2012, s. 23; O.C. 426-2019, s. 3.

12. Section 212.1 of the Act applies for the purposes of the termination report. In spite of the foregoing, to determine the plan’s liabilities for the application of this section, the value of the pension that must be insured pursuant to section 237 of the Act is determined:

(1)  in cases where the pension was insured before the date of termination, on the basis of the premium established on that date using the assumptions for hypothetical wind-up and solvency valuations established by the Canadian Institute of Actuaries as they apply on the date on which the termination report is prepared; or

(2)  in all other cases, by discounting, at the date of termination, according to a rate that is the estimated rate of return of the account set up for the members and beneficiaries whose pension is, under section 237 of the Act, to be insured by an insurer as of the date of termination until the date on which the termination report is prepared, the premium established on that latter date using the assumptions for hypothetical wind-up and solvency valuations established by the Canadian Institute of Actuaries as they apply on the date on which the report is prepared, increased by a margin that allows for any possible variation in the cost of purchasing the pension between that date and the probable date of settlement.

The liabilities shall also comprise, in the cases referred to in subparagraph 2 of the first paragraph, in spite of the third paragraph of section 212.1 of the Act, the value of the pension amounts paid out of the pension fund to a member or beneficiary between the termination date and the date on which the report is prepared, such value being determined according to the rate referred to in that subparagraph.

O.C. 863-2010, s. 12.

13. (Revoked).

O.C. 863-2010, s. 13; O.C. 426-2019, s. 4.

14. The pension committee must, within the time set out in section 9, provide a copy of the report to the employer and, if applicable, to each certified association representing members, informing them that they may present written observations to the committee within 10 days of receipt of the copy of the report.

The copy supplied to the employer must be accompanied with a notice, a copy of which must be sent to Retraite Québec, indicating that any amount due by the employer according to the report must be paid into the pension fund.

O.C. 863-2010, s. 14.

§ 3 . — Statement of benefits and members’ and beneficiaries’choices and options

15. Within 45 days of receipt of the decision by Retraite Québec approving the withdrawal or termination report, the pension committee must send each member or beneficiary affected by the employer’s withdrawal or the termination of the plan a statement of benefits and their value along with the necessary information so that their choices and options may be exercised.

The time allotted for the members or beneficiaries to inform the pension committee of their choices and options expires on the 90th day after the date on which the pension committee receives Retraite Québec’s decision approving the withdrawal or termination report.

O.C. 863-2010, s. 15; O.C. 426-2019, s. 5.

16. For an employer withdrawal, the statement of benefits must state

(1)  the ratio between the value of the assets reduced by the amount of the administration expenses of the pension fund allocated to the group of members and beneficiaries affected by the withdrawal and the value of the liabilities related to that group established as at the date of the withdrawal;

(2)  the portion of the assets that is allocated to the group of members and beneficiaries affected by the withdrawal along with the amount of the reduction in benefits that the member or beneficiary would sustain if the employer’s debt and the unpaid contributions were not collected;

(3)  the information required by paragraph 2 of section 200 of the Act regarding the effect of full payment of a member’s or beneficiary’s benefits;

(4)  the choices provided for in paragraph 3 or 4 of section 200 of the Act that apply to the member or beneficiary including, for each member or beneficiary to whom a pension is being paid on the date of the withdrawal, that, in accordance with section 230.0.0.3 of the Act, he or she may request to have his or her benefits transferred to a pension plan referred to in section 98 of the Act, or to have his or her pension paid out of the assets administered by Retraite Québec under section 230.0.0.4 of the Act;

(5)  the expiry date of the time, set out in the second paragraph of section 15, within which the members or beneficiaries must indicate their choices, exercise their options and present observations, if any, to the pension committee;

(5.1)  the mention that, where the member or beneficiary to whom a pension is being paid on the date of the withdrawal fails to request to have his or her benefits transferred to a pension plan referred to in section 98 of the Act, or to have his or her pension paid out of the assets administered by Retraite Québec within the time allotted under the second paragraph of section 15, his or her benefits will be paid by an insurer according to the conditions prescribed by regulation and chosen by the pension committee;

(6)  the information referred to in paragraphs 3 to 9 and 10 of section 58 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6), prepared or updated to the withdrawal date; and

(7)  the information required by subparagraphs 10 and 11 of the first paragraph of section 62 of the Regulation respecting supplemental pension plans, prepared with respect to the withdrawing employer.

The statement must also state that the withdrawal report and the data used to determine the member’s or beneficiary’s benefits or their value may be consulted without charge at the office of the pension committee or at the employer’s establishment designated by the committee, whichever location is closer to the applicant’s residence.

O.C. 863-2010, s. 16; O.C. 426-2019, s. 6; S.Q. 2020, c. 30, s. 91.

17. In the case of a plan termination, the statement of benefits is the statement referred to in section 207.3 of the Act, with the following modifications:

(1)  the payment methods that must be indicated in accordance with subparagraph 1 of the first paragraph of this section must include, for each member or beneficiary to whom a pension is being paid on the date of termination, the payment methods provided for under section 230.0.0.3 of the Act;

(2)  the time allotted under the second paragraph of section 15 must be indicated instead of the date mentioned in subparagraph 4 of section 207.3 of the Act;

(3)  the mention that, where the member or beneficiary to whom a pension is being paid on the date of the termination fails to request to have his or her benefits transferred to a pension plan referred to in section 98 of the Act, or to have his or her pension paid out of the assets administered by Retraite Québec within the time allotted under the second paragraph of section 15, his or her benefits will be paid by an insurer according to the conditions prescribed by regulation and chosen by the pension committee.

O.C. 863-2010, s. 17; O.C. 426-2019, s. 7; S.Q. 2020, c. 30, s. 92.

18. (Revoked).

O.C. 863-2010, s. 18; O.C. 426-2019, s. 8.

19. The statement of benefits must include, for a member or beneficiary to whom a pension is being paid on the date of the withdrawal or termination:

(1)  the estimated value of the pension reduced to take into account insufficient assets with a statement that that value may be transferred to a pension plan referred to in section 98 of the Act;

(2)  the estimated amount of the pension reduced to take into account insufficient assets;

(3)  a statement that the pension paid by Retraite Québec has the same characteristics as the pension to which the member or beneficiary would have been entitled under the pension plan; and

(4)  the rules set out in section 38.1 and in the second paragraph of section 39 regarding the reduction of pensions paid by Retraite Québec.

O.C. 863-2010, s. 19; O.C. 426-2019, s. 9; S.Q. 2020, c. 30, s. 93.

20. The statement of benefits must, when intended for a member or beneficiary referred to in section 230.0.0.3 of the Act, be accompanied by the information provided by Retraite Québec concerning the payment methods referred to in that section and the administration of pensions paid by Retraite Québec.

Where the pension committee is informed that an association has been formed representing, for the purposes of the pensions plan, the members and beneficiaries to whom section 230.0.0.3 of the Act applies, it must include with the statement the notice required under section 113.1 of the Act.

O.C. 863-2010, s. 20; O.C. 426-2019, s. 10.

21. The pension committee must, if the pension plan has more than 25 members and beneficiaries referred to in section 230.0.0.3 of the Act, call them to an information session on the methods of payment provided for under that section and on the administration of pensions, held by Retraite Québec on the date and at the place that Retraite Québec indicates. The notice of the session must be given in writing at least 10 days before the date on which the session is to be held.

For plans having 25 or fewer members and beneficiaries thus referred, the committee must inform them that Retraite Québec will hold such an information session if at least 60% of them request such a session at least 35 days before the expiry of the time allotted for members and beneficiaries to inform the committee of their choices and options. If necessary, Retraite Québec must inform the members and beneficiaries at least 10 days before the information session is to be held.

The information session must be held within such time as to allow the members and beneficiaries at least 10 days after the session to inform the pension committee of their choices, exercise their options and to make observations, if any.

The costs relating to the holding of the information session are borne by the pension fund.

O.C. 863-2010, s. 21; O.C. 426-2019, s. 11.

22. The pension committee must publish the notice required by section 207.4 of the Act which also applies, with the necessary modifications, to withdrawals.

The notice published must also invite persons who believe they have rights in the pension plan allowing them to opt for a pension paid by Retraite Québec under section 230.0.0.3 of the Act to take part in the information session held by Retraite Québec, and indicate the place and date of the session, or to request that Retraite Québec hold such a session, and must indicate the time in which the request must be made.

The pension committee must ensure that the publication takes place at least 5 days before the information session is to be held or the expiry of the time for requesting the session.

O.C. 863-2010, s. 22; O.C. 426-2019, s. 12.

§ 4 . — Benefit payment procedure

23. No later than 15 days after the expiry of the time allotted for members and beneficiaries to indicate their choices and options, the pension committee must send to Retraite Québec the identifying information concerning the members and beneficiaries who opted to have a pension paid out of the assets administered by Retraite Québec, the amount and characteristics of the pension being paid by the pension plan to each of those members and beneficiaries on the date of the withdrawal or termination, the estimated amount of the reduced pension and the information required to pay the pensions.

O.C. 863-2010, s. 23; O.C. 426-2019, s. 13.

24. The premium that the pension committee must use to determine, for settlement purposes, the value of the benefits of the members and beneficiaries to whom a pension was being paid on the date of the withdrawal or termination is the premium determined using the assumptions for hypothetical wind-up and solvency valuations established by the Canadian Institute of Actuaries as they apply at the date of the calculation.

Despite the foregoing, to determine the value of the non-guaranteed benefits of a member or beneficiary who has requested that his or her pension be guaranteed by an insurer in accordance with section 230.0.0.3 of the Act, the premium to be used is the premium provided by the insurer to guarantee the benefits.

The value of the benefits of the members and beneficiaries must be calculated in the 7 days following the first day of the month that follows the expiry of a time period that is not more than 40 days after the deadline given to the members and beneficiaries to indicate their choices and options.

O.C. 863-2010, s. 24; O.C. 426-2019, s. 13.

25. The day after the value of the benefits of the members and beneficiaries is established in accordance with section 24, the pension committee must proceed to pay the benefits in accordance with the withdrawal or termination report, and where applicable, taking into account any adjustments provided for under this subdivision.

O.C. 863-2010, s. 25; O.C. 426-2019, s. 13.

26. Section 218 of the Act applies for each of the accounts constituted under subdivision 1 as if the account were a separate asset.

O.C. 863-2010, s. 26.

27. (Revoked).

O.C. 863-2010, s. 27; O.C. 426-2019, s. 14.

27.1. Where a member or beneficiary whose pension has been guaranteed opts, in accordance with paragraph 1 of section 230.0.0.3 of the Act, to have his or her benefits transferred to a pension plan referred to in section 98 of the Act, the insurer must, at the request of the pension committee, allocate the guarantee to non-guaranteed benefits of other members or beneficiaries in the same account or, if the insurer is unable to make such an allocation, pay into the pension fund the commuted value of the guaranteed pension at the date the benefits are transferred or, where the contract does not provide for a commuted value, the fair market value of the guaranteed pension determined on the basis of reasonable assumptions and cancellation fees.

The value of the guaranteed pension to be transferred by the pension committee to the pension plan specified by the member or beneficiary must be equal to the value of the pension to which the member or beneficiary is entitled, reduced to take into account insufficient assets. That value is determined in accordance with the first and third paragraphs of section 24.

S.Q. 2020, c. 30, s. 94.

28. The value of guaranteed surplus benefits referred to in section 240 of the Act must be used to guarantee any non-guaranteed benefits of other members or beneficiaries in the same account.

O.C. 863-2010, s. 28.

29. If, on the date of settlement, the assets of an account allow settlement in full of the benefits of the members and beneficiaries covered by the account, the surplus must be transferred to the other account, up to the amount required for settlement in full of the benefits of the members and beneficiaries in the latter account.

O.C. 863-2010, s. 29.

30. The pension committee and any other delegatee, representative or service provider must, not later than the date of settlement, send to Retraite Québec all the information held on the members and beneficiaries who have opted for a pension paid out of the assets administered by Retraite Québec.

O.C. 863-2010, s. 30; O.C. 426-2019, s. 15.

31. Within 15 days of the benefit settlement, the pension committee must send to Retraite Québec a report prepared by an actuary on the settlement of the members’ and beneficiaries’ benefits. The report must contain:

(1)  the assets of each account at the date of settlement;

(2)  the pension benefits and refunds paid to each member or beneficiary at the date of settlement and the settlement percentage of the benefits of each member or beneficiary at that date;

(3)  a reconciliation of the assets and liabilities of each account between the date of withdrawal or termination and the benefit settlement date including, for each account, asset yield, asset increase through recovery of amounts owing and any variation in liabilities; and

(4)  certification by the author of the report that the report was prepared in conformity with the provisions of the Act and of this Regulation.

O.C. 863-2010, s. 31; O.C. 426-2019, s. 16.

DIVISION 3 PENSIONS PAID OUT OF ASSETS ADMINISTERED BY RETRAITE QUÉBEC

§ 1 . — Information sent to members and beneficiaries by Retraite Québec

32. Retraite Québec must send the annual statement referred to in section 112 of the Act to each member or beneficiary concerned. The statement must contain the information required by subparagraphs 1 to 3 of the first paragraph and subparagraph 3 of the second paragraph of section 59 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6) and by paragraphs 1 to 5 and 6 of section 59.0.1 of that Regulation, with the necessary modifications.

O.C. 863-2010, s. 32; O.C. 426-2019, s. 17.

33. Within 9 months after the end of each fiscal year of the plan, Retraite Québec must, by written notice, call each of the members and beneficiaries to a meeting held to allow them to be informed of developments concerning their benefits and the financial situation of the plan.

O.C. 863-2010, s. 33; O.C. 426-2019, s. 18.

§ 2 . — Administration by Retraite Québec

34. For a pension plan termination, the plan’s fiscal year as regards the portion of the assets administered by Retraite Québec ends on 31 December, despite any contrary stipulation in the plan.

O.C. 863-2010, s. 34.

35. Within 6 months after the end of each fiscal year of the plan, Retraite Québec must have the financial report referred to in the second paragraph of section 161 of the Act prepared.

O.C. 863-2010, s. 35.

36. The portion of the pension plan in respect of which Retraite Québec exercises the powers of the pension committee pursuant to section 230.0.0.4 of the Act must be the subject of an actuarial valuation pursuant to subparagraph 2 of the first paragraph of section 118 of the Act.

For that purpose, only Divisions I and II of Chapter X of the Act apply, with the necessary modifications resulting in particular from the fact that the plan’s liabilities are equal to the value of the pensions paid by Retraite Québec. In addition, despite section 126 of the Act, even the value of guaranteed benefits must be determined according to an estimation of the premium that an insurer would have charged to guarantee the pensions in the 30-day period following the valuation date.

O.C. 863-2010, s. 36.

37. If the plan is referred to in the second paragraph of section 318.7 of the Act and an instruction has been given in respect of the plan under section 2 of the Regulation respecting measures to reduce the effects of the financial crisis on pension plans covered by the Supplemental Pension Plans Act (chapter R-15.1, r. 4), the amount of the pension paid by Retraite Québec is equal to the amount calculated by taking into account the third paragraph of section 230.0.0.9 of the Act.

O.C. 863-2010, s. 37; O.C. 426-2019, s. 19.

38. If, at the date of the end of a fiscal year, the plan’s assets administered by Retraite Québec, determined on a solvency basis and reduced by the estimated amount of the administration expenses to be assumed by the pension fund, exceed the liabilities increased by the provision for adverse deviations referred to in subparagraph 2 of the first paragraph of section 128 of the Act increased by 30%, the members and beneficiaries to whom a pension is being paid by Retraite Québec on that date are entitled for the next fiscal year to the payment of an amount determined on the basis of the amount by which the assets exceed the liabilities increased by the provision for adverse deviations.

That amount, which is payable in a lump sum after the actuarial valuation report has been sent pursuant to section 119 of the Act, is equal to the annual amount of a pension that could be guaranteed with the portion of the excess amount allocated to each member or beneficiary, proportionately to the value of the portion of his or her benefits that is administered by Retraite Québec. The amount of the pension is determined according to an estimation of the premium that an insurer would have charged to guarantee the benefits of each member or beneficiary in the 30-day period following the actuarial valuation date.

O.C. 863-2010, s. 38; O.C. 426-2019, s. 20.

38.1. Where, at the date of the end of a fiscal year, the degree of solvency of the plan with regard to the part of the plan that Retraite Québec administers is less than 90%, the amount of the pension paid by Retraite Québec to each member or beneficiary is reduced by at least 5%.

The reduction in the amount of the pensions of the members and beneficiaries must begin on 1 January of the year after the actuarial valuation report is sent pursuant to section 119 of the Act.

O.C. 426-2019, s. 21.

38.2. Retraite Québec must, at least 30 days before the date of the reduction provided for under section 38.1, inform the affected members and beneficiaries in writing of the degree of solvency of the plan established in accordance with section 38.1, of the amount of the reduced pension and of the date on which its payment begins.

O.C. 426-2019, s. 21.

§ 3 . — Final settlement

39. If, at the time Retraite Québec has all the pensions it pays guaranteed by an insurer in accordance with section 230.0.0.9 of the Act, the assets of the plan it administers, determined on a solvency basis and reduced by the amount of the administration expenses of the pension fund, exceed the liabilities, the excess amount must be used to increase, up to the total value of their benefits, the pensions being paid by Retraite Québec to the members and beneficiaries on the date of purchase of the guarantee, proportionately to the value of the portion of their benefits that is administered by Retraite Québec. The pension so increased is determined on the basis of the premium charged by the insurer.

If the liabilities exceed the assets reduced by the amount of the administration expenses of the pension fund, the pensions being paid to the members and beneficiaries by Retraite Québec on the date of the purchase must be reduced in proportion to the value of the portion of their benefits that is administered by Retraite Québec. The pension thus reduced is established determined on the basis of the premium charged by the insurer.

O.C. 863-2010, s. 39; O.C. 426-2019, s. 22.

40. As soon as Retraite Québec has had the pensions it pays guaranteed by an insurer, it must inform each member or beneficiary of the name and contact information of the insurer from the annuity for such member or beneficiary was purchased.

The notice must state the amount of the annuity purchased and provide the following information:

(1)  the amount by which the assets, after deducting the administration costs, exceeds or is less than the liabilities on the date on which Retraite Québec has the pension guaranteed;

(2)  where an increase has been granted on the date on which Retraite Québec has the pension guaranteed, the amount of the assets attributed to the member or beneficiary in proportion to the value of his or her benefits, as well as the amount of the increase in his or her pension at the date on which payment by the insurer begins and, if applicable, the amount of any lump-sum refund that was granted;

(3)  where the pension of the member or beneficiary is reduced pursuant to the second paragraph of section 39, the amount of the reduced pension at the date on which payment by the insurer begins;

(4)  in the case of a plan referred to in section 318.7 of the Act, a mention that the amount of the annuity purchased is at least equal to the pension paid by Retraite Québec prior to the date on which Retraite Québec had the pension guaranteed.

O.C. 863-2010, s. 40; O.C. 426-2019, s. 23.

41. Within 120 days after the date on which Retraite Québec has the pensions it pays guaranteed by an insurer, Retraite Québec must produce a report on the settlement of the benefits of the members and beneficiaries referred to in section 230.0.0.4 of the Act. The settlement report must contain:

(1)  the date on which the annuities were purchased;

(2)  the name of the insurer from whom they were purchased;

(3)  the premium charged by the insurer to guarantee the pensions;

(4)  the amount of the plan’s administration costs imputed to the pension fund;

(5)  the amount of the assets administered by Retraite Québec at the date on which it had the pensions guaranteed;

(6)  if applicable, the amount by which the assets, after deduction of the administration costs paid by the pension fund, exceed the premium charged by the insurer;

(7)  in the case of a plan referred to in section 318.7 of the Act, if there are insufficient assets to have the pensions guaranteed, the amounts required from the Government for that purpose pursuant to section 230.0.0.10 of the Act as it read on 31 December 2015;

(7.1)  where the assets are insufficient, to have the pensions paid by Retraite Québec guaranteed, the amount by which the assets, after deducting the administration costs, are less than the liabilities at the date on which Retraite Québec has the pensions guaranteed as well as the proportion by which the pensions of the members and beneficiaries were reduced pursuant to the second paragraph of section 39;

(8)  the name of each member or beneficiary affected by the purchase of annuities, the amount of the annuity purchased and, if applicable, the amount of the reduction or the increase in the pension as well as, where applicable, the amount of any lump-sum refund that was granted;

(9)  the name, address and professional title of the author of the report and the date of signing; and

(10)  certification by the author of the report that the report was prepared in conformity with the provisions of the Act and of this Regulation.

O.C. 863-2010, s. 41; O.C. 426-2019, s. 24.

DIVISION 4 TRANSITIONAL AND FINAL PROVISIONS

42. (Revoked).

O.C. 863-2010, s. 42; O.C. 426-2019, s. 25.

43. A pension committee is required to purchase the pensions of members and beneficiaries that were guaranteed by an insurer at the request of the committee after the date of withdrawal or termination if the date on which the pension was guaranteed is after 3 November 2010. If the contract does not provide for a commuted value of a guaranteed pension, the value must be equal to the fair market value of the pension determined on the basis of reasonable assumptions and cancellation fees.

For a termination of a plan, section 212.1 of the Act applies for the purposes of the distribution of the pension fund and the preparation of the report as regards a pension guaranteed after the date of termination that has not been purchased pursuant to the first paragraph, but using a rate that is the estimated rate of return of the account intended for the members and beneficiaries to whom a pension was being paid on the date of termination.

O.C. 863-2010, s. 43.

43.1. The provisions provided for under section 2 as they read on 15 May 2019 apply with regard to a pension plan referred to in the second paragraph of section 318.7 of the Act.

O.C. 426-2019, s. 26.

44. (Omitted).

O.C. 863-2010, s. 44.

REFERENCES

O.C. 863-2010, 2010 G.O. 2, 2891

O.C. 503-2012, 2012 G.O. 2, 1689

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

O.C. 426-2019, 2019 G.O. 2, 695

S.Q. 2020, c. 30, ss. 90 to 94