R-15.1, r. 7 - Regulation respecting the exemption of certain categories of pension plans from the application of provisions of the Supplemental Pension Plans Act

Updated to 21 November 2024

This document has official status.

chapter R-15.1, r. 7

Regulation respecting the exemption of certain categories of pension plans from the application of provisions of the Supplemental Pension Plans Act

Supplemental Pension Plans Act

(chapter R-15.1, s. 2).

O.C. 1160-90; O.C. 436-2004, s. 1; O.C. 159-2007, s. 1.

DIVISION I ADMINISTRATION OF THE PLAN

1. Any pension plan having not more than 50 members and beneficiaries may, if it so provides and notwithstanding sections 147, 147.1 and 166 of the Supplemental Pension Plans Act (chapter R-15.1), be administered by the employer who is a party to the plan or by a pension committee composed of at least the following members:

(1)  one plan member or one beneficiary designated on the conditions and within the time limits set out in the plan or one member designated by the majority of the members and beneficiaries at the meeting held each year in application of section 166 of the Act;

(2)  a member who, designated under the conditions and within the time periods provided in the plan, is neither a party to the plan nor a third party to whom section 176 of the Act prohibits the granting of a loan.

The text of any plan administered by such committee shall state the number of members that the committee must have. It shall also provide for the conditions and time periods applicable to the designation and replacement of committee members. It may likewise provide that the members and beneficiaries may, during the meeting referred to in paragraph 1 of the first paragraph, designate by majority vote a member in addition to those referred to in the first paragraph. The second paragraph of section 147.1 of the Act applies to that additional member.

The text of any plan administered by the employer shall provide for the conditions and time periods applicable to the designation and replacement of the employer.

O.C. 1160-90, s. 1; O.C. 1151-2002, s. 1; O.C. 1535-2024, s. 1.

2. The second paragraph of section 149 of the Act applies to the employer who administers a pension plan in conformity with section 1.

O.C. 1160-90, s. 2; O.C. 1151-2002, s. 2.

3. Every person or body that, in application of section 1, is designated to administer the pension plan in replacement of the person or body that continued to administer that plan in accordance with section 318 of the Act or in replacement of a pension committee established as prescribed by section 147 of the Act shall take office:

(1)  in the case of the replacement of an administrator referred to in section 318 of the Act, not later than the day following the date on which the plan may no longer be administered in accordance with that section;

(2)  in the case of the replacement of a pension committee established as prescribed by section 147 of the Act, not later than the date of the beginning of the first fiscal year following the designation of the new administrator.

O.C. 1160-90, s. 3.

4. If the majority of the members and beneficiaries decide at a meeting held pursuant to section 166 of the Act decide that the plan shall be administered by a pension committee, the employer may not continue to administer the plan at the expiry of the third month following that meeting.

If, at a meeting held pursuant to section 166 of the Act, the majority of the members and beneficiaries consent to the administration of the plan by the employer who is a party to the plan, no member of a pension committee in office on the date of such meeting may continue to administer the plan on expiry of the third month following that meeting.

O.C. 1160-90, s. 4; O.C. 1151-2002, s. 3.

5. Any plan whose number of members and beneficiaries increases to more than 50 shall, no later than 180 days following such increase, be administered by a pension committee formed as provided for in Chapter XI of the Act.

O.C. 1160-90, s. 5; O.C. 1151-2002, s. 4; O.C. 1535-2024, s. 2.

DIVISION II

(Revoked)

O.C. 1160-90, Div. II; O.C. 1151-2002, s. 5.

6. (Revoked).

O.C. 1160-90, s. 6; O.C. 1151-2002, s. 5.

DIVISION III

(Revoked)

O.C. 1893-93, s. 1; O.C. 1151-2002, s. 6; O.C. 1535-2024, s. 3.

7. (Revoked).

O.C. 1160-90, s. 7; O.C. 1893-93, s. 1; O.C. 1151-2002, s. 6; O.C. 1535-2024, s. 3.

7.1. (Revoked).

O.C. 1151-2002, s. 6; O.C. 1535-2024, s. 3.

DIVISION IV SIMPLIFIED PENSION PLAN

O.C. 657-94, s. 1.

8. A defined contribution pension plan that fulfills the conditions prescribed in this section and in sections 9 to 19 is called a “simplified pension plan”. It is exempted from the application of the Act except with respect to the following provisions:

— Application and interpretation – sections 1 to 5;

— Nature of a pension plan – section 6, the first paragraph of section 7 and sections 11 and 12;

— Establishment and effective date – section 13, the first paragraph and subparagraphs 11, 13 and 15 of the second paragraph of section 14 and sections 16 and 18;

— Amendment – section 19, the first paragraph of section 22 and section 23;

— Registration – the first paragraph and subparagraphs 1, 6 and 7 of the second paragraph of section 24 and sections 25 to 32, it being understood that section 26 does not apply with respect to an employer who joins the plan and that it applies only to members who are affected by an amendment, to members who cease to be members of the plan in the event of a division and to members of a plan that is absorbed in the event of a merger;

— Membership – section 33, except the third paragraph, and sections 34 to 36;

— Contributions – sections 37, 38, 41 and 43, section 44, except subparagraphs 1 to 3 of the first paragraph and the third paragraph, sections 45.1 to 47 and sections 49 to 53;

— Refunds and pension benefits – sections 54, 55, 57, 63.1, 64 and 68, the first paragraph of section 73, section 85, restricting the application of the second paragraph to the spouse who has spousal status on the day preceding the death of the member, and section 92;

— Transfers of benefits and assets – the fourth paragraph of section 98, the fourth paragraph of section 99 and section 103;

— Transfer of benefits between spouses – sections 107 to 110.1;

— Information to members – section 111, section 112, with the exception of paragraph 2 of the first paragraph and the second paragraph, it being understood that the first sentence of the first paragraph applies only to members in the service of the employer affected by the amended provisions, the first and third paragraphs of section 113 and section 115;

— Administration – sections 150 to 154, the second paragraph of section 155, section 156.1, the first paragraph of section 158, section 159 with respect to the delegatee of the financial institution that administers the plan, sections 161 and 163 to 165, section 171, sections 174 to 176, paragraphs 2 and 3 of section 177 and sections 178 to 193;

— Division and merger – section 197;

— Proceeding before the Administrative Tribunal – section 243;

— Regulations, functions and powers of Retraite Québec – section 244, as well as sections 245 to 263;

— Miscellaneous and transitional provisions – section 264, with the understanding that the second paragraph thereof applies only with respect to the contributions and other sums credited to the locked-in account of the member, as well as sections 282, 285, 312, 319 and 321.

O.C. 657-94, s. 1; O.C. 1151-2002, s. 7; O.C. 436-2004, s. 2; O.C. 1052-2012, s. 1; O.C. 1535-2024, s. 4.

9. The administrator of the plan shall be an insurer referred to in section 10 of the Act, a bank, a savings and credit union or a trust company, and must be authorized to carry on its activities in Québec or elsewhere in Canada where an agreement referred to in section 249 or section 285 of the Act applies.

O.C. 657-94, s. 1.

10. In addition to the requirements prescribed in subparagraphs 11, 13 and 15 of the second paragraph of the first paragraph of section 14 of the Act, such plan shall provide:

(1)  that it is incumbent upon the employer to inform employees of their eligibility for the plan and that the employer may decide to which class of employees covered by the plan an employee belongs;

(2)  that the member may determine annually, or if the plan so provides, more frequently, the additional voluntary contribution that he undertakes to make, by giving written notice thereof to the employer, who shall collect such additional voluntary contribution;

(3)  that the sum of the contributions that may be paid on behalf of a member may not be subject to limits lower than those allowed under the taxation rules Income Tax Act (R.S.C. 1985 c. 1 (5th Suppl.)), subparagraphs 147.1 (8) and (9));

(4)  that, within 60 days after any unpaid contribution becomes due, the financial institution that administers the plan shall, in addition to notifying Retraite Québec as prescribed by section 51 of the Act, notify the retirement information committee referred to in paragraph 18 or, in the absence of such information committee, the member concerned and, where an agreement referred to in paragraph 27 has been entered into, the accredited association that is a party to that agreement;

(5)  that, if contributions due are paid after the transfer refund or payment of the balance of the member’s accounts, the administrator of the plan shall transfer or pay those contributions as it did for the accounts in which they were to be entered; that contributions due shall bear interest, from the date on which they become due until they are paid to the pension fund; that, for any year or part of a year in which contributions due have not been paid, the applicable interest rate corresponds to the average of the rates of return on personal 5-year term deposits with chartered banks for the 12 months ending in November of the preceding year; those rates are those referred to in the third paragraph of section 39 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6);

(5.1)  that the member is entitled, at any time and upon application, to a refund of all or part of his not locked-in account or to the transfer of all or part of that account to a pension plan of his choice, provided such plan is a plan within the meaning of the fourth paragraph of section 98 of the Act or to a registered retirement income fund as defined in section 1 of the Taxation Act (chapter I-3) and such refund or transfer shall be made within 60 days following the member’s application;

(6)  that within 90 days following the sending of the statement required in the event of cessation of active membership, an account of a member who is no longer an active member shall:

(a)  where such account is locked-in, be transferred to a pension plan within the meaning of the fourth paragraph of section 98 of the Act, selected by the member or, failing such selection, by the financial institution;

(b)  where such account is not locked-in, either be transferred to a pension plan within the meaning of the fourth paragraph of section 98 of the Act or to a registered retirement income fund as defined in section 1 of the Taxation Act, selected by the member, or be refunded to the member. Where the member omits to give instructions as to the payment of his account before the expiry of the 60-day period mentioned above, the financial institution may make such payment in the manner that it considers appropriate;

(7)  that the normal retirement age shall be set as the first day of the month that follows the month during which a member reaches 65 years of age or the day of his 65th birthday if that day falls on the first day of the month;

(8)  (subparagraph revoked);

(9)  that the balance of the member’s accounts, with accrued interest to the date of payment, shall, upon the member’s death, be paid to his spouse or, failing that, to his successors;

(10)  that the member’s spouse may, by written notice to the financial institution, waive the right to receive the payment provided for in paragraph 9 and may revoke such waiver by written notice to the financial institution before the death of the member;

(11)  that the member may demand a lump-sum payment of his locked-in account if a physician certifies that his physical or mental disability reduces his life expectancy and that such payment be made within 60 days following the member’s application therefor;

(12)  that, in the 10 years preceding the normal retirement age, an active member is entitled to transfer all or part of his locked-in account and that the transfer shall be made to a pension plan within the meaning of the fourth paragraph of section 98 of the Act selected by the member; that such right may be exercised only once in 12-month period;

(13)  that the member whose active membership has ceased may demand the refund of his locked-in account where that account is less than 20% of the Maximum Pensionable Earnings under the Québec Pension Plan (chapter R-9) for the year in which he became entitled to such refund and that the refund be made within 90 days following the application of the member therefor;

(14)  that a transfer referred to in subparagraphs 5.1, 6 or 12 may, at the discretion of the financial institution and in the absence of contrary stipulations, be made by remitting the investment securities related to the account;

(15)  (subparagraph revoked);

(16)  (subparagraph revoked);

(17)  the name of the financial institution that administers the plan;

(18)  that the financial institution that administers the plan shall provide, free of charge, the following documents or information to the employer or to any retirement information committee set up following a decision by a majority of the 50 members or more who work for an employer that is a party to the plan, provided that the information committee has notified the financial institution and the employer that it has been set up:

(a)  a copy of the portion of the plan that sets out the provisions applying to all the employers and a copy of the portion that sets out the dispositions specific to the employer concerned;

(a.1)  the annual statement and the financial report referred to in section 161 of the Act;

(b)  upon request, any document relating to the administration of the plan, in particular, the acts of delegation of powers granted by the financial institution that administers the plan, the correspondence conducted between Retraite Québec and that financial institution during the last 60 months, the agreements referred to in paragraph 27 and the written acknowledgements referred to in subparagraph 2 of the third paragraph of section 1.1 of the Regulation respecting supplemental pension plans, except personal information on members or on the other employers that are parties to the plan;

(19)  that the retirement information committee referred to in paragraph 18, or the employer in the absence of such information committee for members bound to that employer, shall make available to members, upon request and free of charge, any document or information exigible from the financial institution that administers the plan;

(20)  that the fiscal year of the plan shall end on 31 December of each year;

(21)  that the operating expenditures of the retirement information committee referred to in subparagraph 18 are not payable by the pension fund;

(22)  that, among the investments offered by the financial institution that administers the plan and subject to the conditions related to those investments at the time at which they may be made, each member shall decide which investments are to be made with his accounts and that those investments shall be made in accordance with the tax rules governing investments of registered retirement savings plans (Income Tax Act, (R.S.C. 1985, c. 1 (5th Suppl.)), subsection 146 (1), definition of “qualified investment”, and with the regulations made under paragraph d of that definition);

(23)  that a member’s accounts may be invested only as follows:

(a)  with an insurer, according to the terms of a contract guaranteed in whole or in part by the Canadian Life and Health Insurance Compensation Corporation;

(b)  in deposits insured in whole or in part by the Autorité des marchés financiers or by a similar body;

(c)  in units of unincorporated mutual funds or segregated funds;

(d)  in securities issued or guaranteed by the Gouvernement du Québec, the Government of Canada or the government of a Canadian province;

(24)  that the financial institution that administers the plan shall keep in its books, for each member, a “locked-in” account and a “not locked-in” account;

(25)  that, in each member’s locked-in account, shall be entered:

(a)  his member contributions, unless the employer stipulates that they be entered in the not locked-in account;

(b)  the contributions made to his benefit by the employer;

(c)  the dividends, refunds and other advantages granted with respect to the account;

(d)  where the financial institution allows their transfer to the plan:

i.  the sums transferred from a retirement savings instrument that provides that such sums be converted into a life pension;

ii.  the sums transferred from a deferred profit sharing plan as defined in section 1 of the Taxation Act, into which they were paid by an employer and in respect of which the employer stipulates that they be entered in such account;

(25.1)  that, in each member’s not locked-in account, shall be entered:

(a)  his member contributions, provided the employer so stipulates;

(b)  his additional voluntary contributions;

(c)  the dividends, refunds and other advantages granted with respect to the account;

(d)  the sums, other than those referred to in subparagraph d of paragraph 25, that are transferred with the financial institution’s consent;

(25.2)  that no sum may be transferred between the locked-in account and not locked-in account of the member;

(26)  that the financial institution that administers the plan or the employer may divide or merge the plan;

(27)  that any agreement between an employer and an accredited association representing the members of the plan with respect to sharing the powers granted to the employer under subparagraphs 26 and 28, the first paragraph of section 11 and section 11.0.1 shall be an integral part of the plan; the stipulations of such agreement shall be described in the part of the plan that contains the provisions specific to each employer concerned;

(28)  that an employer may withdraw from the plan and that the financial institution may withdraw an employer from the plan or terminate the plan;

(29)  that, subject to the third paragraph of section 11.1, no amendment to the plan that cancels refunds or pension benefits, limits eligibility therefor or reduces the amount or value of the members’ benefits may become effective before the 30th day following, in the case of an amendment established by a collective agreement or an arbitration award in lieu thereof or rendered compulsory by an order or decree, the effective date of the agreement, award, order or decree and in all other cases, the date of sending of the notice provided for in section 26 of the Act;

(29.1)  that an amendment referred to in subparagraph 29 applies only to service rendered after the date on which it takes effect;

(29.2)  that the restrictions provided for in subparagraphs 29 and 29.1 do not apply in the cases referred to in subparagraphs 1 and 2 of the second paragraph of section 20 of the Act;

(30)  that the plan becomes effective on either of the dates prescribed by section 13 of the Act or on the date fixed by the financial institution that administers the plan, whichever comes first.

Notwithstanding the second paragraph of section 5 of the Act, the plan may not provide for the payment or refund of a member’s locked-in account except in conformity with subparagraphs 9,11 and 13 of the first paragraph.

The financial institution must offer at least 3 investment choices that, in addition to being diversified and having different degrees of risk and different contemplated yields, allow the creation of portfolios generally adapted to the needs of the members.

O.C. 657-94, s. 1; O.C. 1151-2002, s. 8; O.C. 436-2004, s. 3; O.C. 798-2006, s. 2; O.C. 159-2007, s. 2; O.C. 1535-2024, s. 5.

11. Each employer shall stipulate in the plan

(1)  whether membership in the plan is optional or compulsory;

(2)  the conditions for eligibility and membership and the conditions for withdrawal;

(3)  the employer contribution that it undertakes to pay or the method used for calculating that contribution;

(3.1)  the contributory or non-contributory nature of the plan and, in the case of the former, the member contribution or the method for its calculation;

(3.2)  for the members as a whole, the account, either locked-in or not locked-in, in which will be entered, if any, the member contributions, and the account in which will be entered the amounts transferred from a deferred profit sharing plan;

(4)  whether the employer or the members will pay for the operating expenditures of the retirement information committee referred to in paragraph 18 of section 10;

(5)  whether the employer, the members or the pension fund will pay for the administrative expenses of the plan other than those referred to in paragraph 4.

Unless prevented by an agreement, the employer may also stipulate that he will pay, in addition to the contribution referred to in subparagraph 3 of the first paragraph, an additional contribution for which he shall specify the amount or the calculation method as well as the payment method in a written notice sent to the financial institution and to each of the members on behalf of whom such additional contribution will be paid. Such additional contribution is held to be an employer contribution only for the purposes of the provisions of sections 44 to 53 of the Act that apply to the plan pursuant to section 8 of the Regulation. Moreover, such additional contribution may not be taken into account in determining whether, within the meaning of section 34 of the Act, a plan provides for benefits similar to the benefits of another plan.

O.C. 657-94, s. 1; O.C. 1151-2002, s. 9; O.C. 436-2004, s. 4.

11.0.1. The employer may stipulate that the right of a member, provided for in paragraph 5.1 of section 10, to receive a refund of his not locked-in member contributions or to transfer them is deferred to the earlier of:

(1)  the date of the end of his active membership;

(2)  the date on which the member is less than 10 years from the normal retirement age.

Such stipulation covers service rendered before and after its coming into effect.

The stipulation shall provide that the member may, nevertheless, transfer, in whole or in part, such contributions to a registered retirement savings plan to establish a home buyers plan or a lifelong learning plan. The member must declare in writing to the financial institution that he is transferring the contributions for that sole purpose.

Where the employer makes the stipulation after joining the plan, the financial institution that administers the plan shall notify the members 90 days before the coming into force of the stipulation.

The plan must provide that a member may demand a lump-sum payment of the contributions referred to in this section, in accordance with the conditions set out in paragraph 11 of the first paragraph of section 10.

O.C. 798-2006, s. 1; O.C. 1013-2011, s. 1.

11.1. A simplified pension plan may contain standard provisions and variations thereof that an employer may stipulate with respect to the regular intervals for the collection or the payment of contributions or to one or the other of the matters referred to in section 11.

The employer’s stipulations with respect to the matters referred to in the first paragraph, where such stipulations are compatible with the plan’s standard provisions or variations thereof that have been registered with Retraite Québec, are exempted from the application of sections 19 and 24 of the Act as well as from the provisions of sections 1.1 and 2.1 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6) that relate to the registration of an amendment to a plan.

Stipulations that, pursuant to the second paragraph, are exempted from the application of the provisions of the Act or Regulation referred to in this paragraph take effect on the date indicated in a notice that the financial institution shall send to the members and whose contents and method of sending shall be in conformity with the rules provided for in section 26 of the Act. Except in the case provided for in subparagraph 1 of the second paragraph of section 20 of the Act and where the affected members have given consent, such stipulation, where it has the effect of an amendment referred to in subparagraph 29 of the first paragraph of section 10 of the Regulation, applies only to service rendered after the effective date indicated in the notice in respect thereof, and such date may not be prior to the 30th day following:

(1)  in the case of a stipulation established by a collective agreement or arbitration award in lieu thereof or rendered compulsory by an order or decree, the effective date of the agreement, award, order or decree;

(2)  in all other cases, the date of sending of the notice.

O.C. 436-2004, s. 5.

12. An employer that withdraws from a simplified pension plan shall so notify the financial institution in writing and, where applicable, the accredited association bound by the plan to the employer.

O.C. 657-94, s. 1; O.C. 1151-2002, s. 10.

13. The financial institution that administers a simplified pension plan and that terminates it or withdraws an employer who is a party to it shall notify in writing the employers concerned as well as, where relevant, the accredited associations connected with such employers by the plan. It shall likewise, in such cases and in the case where it receives a notice of withdrawal from an employer, so inform Retraite Québec as well as the affected members. The notice sent to each member shall be accompanied with a statement of the member’s benefits and indicate that those benefits will be transferred, within 60 days following the sending of the statement, to a pension plan within the meaning of the fourth paragraph of section 98 of the Act that has been chosen by the member or failing such choice, by the financial institution.

O.C. 657-94, s. 1; O.C. 1151-2002, s. 11; O.C. 436-2004, s. 6; O.C. 1535-2024, s. 6.

14. Any amount that must return to a member affected by the termination of the plan shall be remitted to the Minister of Revenue if the member cannot be found.

O.C. 657-94, s. 1; O.C. 1151-2002, s. 12.

15. After having paid the benefits of the members affected by the withdrawal of an employer or the termination of the plan, the financial institution that administers the plan shall, within 90 days, render an account of that payment to Retraite Québec by filing,

(1)  in the case of the withdrawal of an employer, an attestation signed by a person in authority certifying that the wound-up benefits are those that could be claimed by the members affected by that withdrawal and that they have been paid in accordance with the Act; or

(2)  in the case of a termination, that attestation and a termination report composed of the annual statement and financial report provided for in section 161 of the Act; that report shall cover the period included between 1 January of the current year on the date of the notice of termination given to members until their benefits are fully paid.

O.C. 657-94, s. 1; O.C. 1151-2002, s. 13.

16. The statement that the financial institution must send to the member in application of section 112 of the Act shall indicate the amount of the additional contribution that the employer paid to the member’s benefit during the fiscal year and show the information provided for in paragraphs 10 to 14 of section 57 and in section 59.1 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6) so that the member can know the results of the changes during the fiscal year in his locked-in and not locked-in accounts.

O.C. 657-94, s. 1; O.C. 1151-2002, s. 14; O.C. 436-2004, s. 7.

16.1. (Revoked).

O.C. 436-2004, s. 7; O.C. 1535-2024, s. 7.

16.2. In the event of a plan’s merger, the financial institution must provide to each of the members affected by the merger, within 30 days thereof, a statement updating, as at the date of the merger, the information contained in the last annual statement or in any other statement subsequent thereto and covering the same subjects that was sent to the member.

O.C. 436-2004, s. 7.

16.3. The financial institution that administers a simplified pension plan shall keep for each employer party to the plan a register in which shall be entered:

(1)  the date on which the employer joined the plan and that on which he withdrew from the plan;

(2)  a list of the amendments made to the portion of the plan that contains the provisions specific to the employer;

(3)  a copy of the notices sent pursuant to the third paragraph of section 11.1.

O.C. 436-2004, s. 7.

17. For the purposes of the Act and regulations, except paragraph 1 of section 176 of the Act, the obligations of the pension committee or of its members are incumbent upon the financial institution that administers the simplified pension plan. For the purposes of section 16, and subparagraph 1, 6 and 7 of the second paragraph of section 24 of the Act, the employer’s obligations are incumbent upon itself.

For the purposes of section 35 of the Act, the pension committee’s obligations are incumbent upon the employer.

For the purposes of the second paragraph of section 115 of the Act, the pension committee’s obligations are incumbent upon the retirement information committee referred to in subparagraph 18 of the first paragraph of section 10 or, failing that, upon the employer.

O.C. 657-94, s. 1; O.C. 1151-2002, s. 15.

18. The text of the plan shall be in the form of a single, complete document into which no other external provision may be incorporated. It shall bear the following notation on its cover or title page: “Simplified Pension Plan” and it shall identify separately the provisions applicable to all employers and all the provisions specific to each employer.

O.C. 657-94, s. 1.

19. A pension plan is not validly established where it results from an amendment to a plan already in effect and where the purpose of the amendment is to convert the plan into a simplified pension plan.

O.C. 657-94, s. 1.

DIVISION IV.1 PAYMENT OF THE BENEFITS OF THE ACTIVE MEMBERS UPON CONVERSION OF A PENSION PLAN INTO A SIMPLIFIED PENSION PLAN

O.C. 436-2004, s. 8.

19.1. This division applies only to a pension plan referred to in paragraph 2 or 3 of section 116 of the Act.

O.C. 436-2004, s. 8.

19.2. A pension plan terminated by means of a notice that, in addition to respecting the requirements of section 204 of the Act, stipulates that the plan is terminated in order to be converted into a simplified pension plan established with the financial institution indicated therein is, provided the provisions of section 19.3 of the Regulation are met, exempted from the application of section 236 of the Act with respect to the uninsured benefits of the members who are active members on the date of termination and who join the simplified pension plan.

The sender of the notice provided for in the first paragraph shall, without delay, provide a copy to Retraite Québec.

O.C. 436-2004, s. 8.

19.3. The plan’s termination date may not be more than 60 days after the date on which the notice provided for in section 19.2 is sent.

The date on which the employer party to the terminated plan joins the simplified pension plan mentioned in the notice may not be later than the day following the plan’s termination date.

O.C. 436-2004, s. 8.

19.4. The uninsured benefits of the members referred to in section 19.2 shall be paid by transferring the value of such benefits to the simplified pension plan established with the financial institution mentioned in the notice provided for in that section.

O.C. 436-2004, s. 8.

DIVISION V PENSION PLANS DISPENSED FROM A FINANCIAL REPORT AUDIT

O.C. 1466-95, s. 1.

20. The following pension plans are dispensed from the financial report audit provided for in section 161 of the Act:

(1)  a guaranteed pension plan;

(2)  a simplified pension plan;

(3)  a pension plan having net assets of a market value of less than $5 000 000.

The pension committee that, for a fiscal year subsequent to its first, intends to avail itself of such a dispensation referred to in subparagraph 3 of the first paragraph must inform the members and beneficiaries during the annual meeting.

O.C. 1466-95, s. 1; O.C. 1151-2002, s. 16; O.C. 1535-2024, s. 9.

DIVISION VI

(Revoked)

O.C. 280-99, s. 1; O.C. 1535-2024, s. 10.

21. (Revoked).

O.C. 280-99, s. 1; O.C. 1151-2002, s. 17; O.C. 1013-2011, s. 2; O.C. 1535-2024, s. 10.

22. (Revoked).

O.C. 280-99, s. 1; O.C. 1535-2024, s. 10.

23. (Revoked).

O.C. 280-99, s. 1; O.C. 1151-2002, s. 18; O.C. 1013-2011, s. 3; O.C. 1535-2024, s. 10.

24. (Revoked).

O.C. 280-99, s. 1; O.C. 1151-2002, s. 19; O.C. 1013-2011, s. 4; O.C. 345-2015, s. 1; O.C. 1535-2024, s. 10.

25. (Revoked).

O.C. 280-99, s. 1; O.C. 1535-2024, s. 10.

25.1. (Revoked).

O.C. 1013-2011, s. 5; O.C. 1535-2024, s. 10.

25.2. (Revoked).

O.C. 1013-2011, s. 5; O.C. 1535-2024, s. 10.

25.3. (Revoked).

O.C. 1013-2011, s. 5; O.C. 1535-2024, s. 10.

25.4. (Revoked).

O.C. 1013-2011, s. 5; O.C. 1535-2024, s. 10.

25.5. (Revoked).

O.C. 1013-2011, s. 5; O.C. 1535-2024, s. 10.

25.5.1. (Revoked).

O.C. 345-2015, s. 2; O.C. 1535-2024, s. 10.

25.5.2. (Revoked).

O.C. 345-2015, s. 2; O.C. 1535-2024, s. 10.

25.5.3. (Revoked).

O.C. 345-2015, s. 2; O.C. 1535-2024, s. 10.

25.5.4. (Revoked).

O.C. 345-2015, s. 2; O.C. 1535-2024, s. 10.

25.5.5. (Revoked).

O.C. 345-2015, s. 2; O.C. 1535-2024, s. 10.

25.5.6. (Revoked).

O.C. 345-2015, s. 2; O.C. 1535-2024, s. 10.

25.6. (Revoked).

O.C. 1013-2011, s. 5; O.C. 1535-2024, s. 10.

DIVISION VII FLEXIBLE RETIREMENT PLANS

O.C. 1290-99, s. 1.

26. A defined benefit pension plan that allows a member to pay, without a corresponding payment by the employer, a sum to be converted later into an ancillary benefit and which meets Canada Revenue Agency’s requirements respecting flexible pension plans, is said to be a “flexible pension plan”. The sum thus paid and the benefit arising therefrom are, for the purposes of this Division, respectively, an “optional ancillary contribution” and an “optional ancillary benefit” provided they are within the meaning given to the terms similarly named by the said Agency.

O.C. 1290-99, s. 1; O.C. 1535-2024, s. 11.

27. For the purposes of this division, the provisions of the Act that concern additional voluntary contribution, with the necessary modifications, apply to optional ancillary contributions.

O.C. 1290-99, s. 1.

28. The following special modifications apply regarding optional ancillary contributions:

(1)  the provisions of section 47 of the Act apply to the provisions until they are converted into optional ancillary benefits or refunded;

(2)  the provisions of section 83 of the Act apply provided that the member is entitled, from the date on which a pension begins to be paid to the member under the plan, to purchase optional ancillary benefits, whose value is determined in accordance with section 33 with the contributions and accrued interest, or to a refund of those contributions and that interest, unless the plan provides only the conversion into optional ancillary benefits or the refund cannot be postponed beyond the date of the first payment of the member’s pension;

(3)  the provisions of the first paragraph of section 86 and subparagraph 2 of the first paragraph of section 98 of the Act apply without taking into account optional ancillary contributions not converted into optional ancillary benefits before the date of death, the date on which the member ceased to be an active member or the date of the transfer application so that the contributions are refunded, as the case may be, pursuant to the second paragraph of section 86 or subparagraph 1 of the first paragraph of section 98 of the Act.

O.C. 1290-99, s. 1; O.C. 1151-2002, s. 20; O.C. 1535-2024, s. 12.

29. In addition to the requirements prescribed in section 14 of the Act, the text of a flexible pension plan shall provide as follows:

(1)  the right of members to pay optional ancillary contributions to the plan as well as the conditions and time periods applicable to such right;

(2)  the nature of the optional ancillary benefits that the member may choose, the methods and time periods applicable to such choice as well as the method for calculating such benefits and the conditions applicable to their formation;

(3)  the right to the refund of optional ancillary contributions that the member has paid that have not been converted into optional ancillary benefits, as well as the conditions and time periods applicable to the refund.

The plan text shall also contain, on its title page or cover or within the introductory provisions of the plan, the following mention: “Flexible pension plan”.

O.C. 1290-99, s. 1; O.C. 1535-2024, s. 13.

30. (Revoked).

O.C. 1290-99, s. 1; O.C. 1535-2024, s. 14.

31. (Revoked).

O.C. 1290-99, s. 1; O.C. 1535-2024, s. 14.

32. (Revoked).

O.C. 1290-99, s. 1; O.C. 1151-2002, s. 21; O.C. 436-2004, s. 9; O.C. 1535-2024, s. 14.

33. The provisions of section 67.4 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6) apply to the calculation of the value of optional ancillary benefits.

The plan may provide that the value referred to in the first paragraph is calculated using, for the purposes of standards of practice referred to in that section, the average of the rates for the 24 calendar months preceding the calculation date rather than the rate applicable to the calendar month preceding that date.

O.C. 1290-99, s. 1; O.C. 1151-2002, s. 22; O.C. 159-2007, s. 3; O.C. 1013-2011, s. 6; O.C. 1535-2024, s. 15.

33.1. The summary of the pension plan provided for in section 111 of the Act shall contain, in addition to the information provided for in that section or required by the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6), a description of each of the subjects mentioned in the first paragraph of section 29 of the Regulation, with the exception of the calculation method and the conditions applicable to the formation of the benefits that the member may choose.

O.C. 1151-2002, s. 23.

33.2. For the purposes of the statements referred to in sections 35 to 36, the optional ancillary contributions are not considered to be additional voluntary contributions.

O.C. 1151-2002, s. 23.

34. (Revoked).

O.C. 1290-99, s. 1; O.C. 1151-2002, s. 24.

35. The first part of the annual statement referred to in section 112 of the Act and sent to an active member who has already made optional ancillary contributions shall contain, in addition to the information required by the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6), the following information:

(1)  the optional ancillary contributions recorded separately to the account of the member in the course of the fiscal year as well as the accumulated total, from his joining the plan, of the said contributions with interest at the end of the said fiscal year;

(1.1)  the optional ancillary contributions converted into optional ancillary benefits during the fiscal year;

(1.2)  the optional ancillary contributions that were subject to partition or a transfer of the member’s benefits or seizure for non-payment of support during the fiscal year;

(1.3)  the member’s optional ancillary contributions balance account at the ending date of the fiscal year;

(2)  where the member has already exercised options as to optional ancillary benefits, the nature of the benefits chosen;

(3)  where the circumstances warrant and at least once every 3 years, the optional ancillary contributions at the ending date of the fiscal year that could not be converted into additional optional benefits by supposing that the member ceased to be an active member on that date and that the optional ancillary contributions were converted at the optimum value of the options available under the plan.

O.C. 1290-99, s. 1; O.C. 1151-2002, s. 25; O.C. 436-2004, s. 10; O.C. 1535-2024, s. 16.

35.1. The first part of the annual statement provided for in section 112 of the Act, which is sent to a non-active member who has already made optional ancillary contributions, shall contain, in addition to the information required by the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6) with respect to the statement sent to a non-active member, the following information:

(1)  where a member has exercised options related to the optional ancillary benefits, the nature of the benefits chosen;

(2)  where a member is entitled to a deferred pension:

(a)  the optional ancillary contributions entered separately in the member’s account during the fiscal year concerned and, since the member has joined the plan, the total of the contributions accrued with interest at the end of the fiscal year;

(b)  the optional ancillary contributions converted into optional ancillary benefits during the fiscal year;

(c)  the optional ancillary contributions that were subject to partition or a transfer of the member’s benefits or seizure for non-payment of support during the fiscal year;

(d)  the member’s optional ancillary contributions balance account with interest accrued at the ending date of the fiscal year;

(3)  where the circumstances warrant and at least once every 3 years, the optional ancillary contributions at the ending date of the fiscal year that could not be converted into additional optional benefits by supposing that the member exercised his or her transfer right on that date and that the optional ancillary contributions are converted at the optimum value of the options available under the plan.

O.C. 1151-2002, s. 26; O.C. 1535-2024, s. 17.

35.2. (Revoked).

O.C. 1151-2002, s. 26; O.C. 1535-2024, s. 18.

36. The statement provided for in the first paragraph of section 113 of the Act that is sent to a member who has already made optional ancillary contributions shall contain, in addition to the information required under the Regulation respecting supplemental pensions plans (chapter R-15.1, r. 6), the following information:

(1)  the information provided for in paragraphs 1 to 2 of section 35 that is related to the period from the end of the fiscal year covered by the last statement sent to the affected member to the date on which he ceased to be an active member;

(2)  where the circumstances warrant, the optional ancillary contributions at the date on which the member ceased to be an active member that could not be converted into optional ancillary benefits by supposing that the optional ancillary contributions are converted at the optimum value of the options available under the plan.

O.C. 1290-99, s. 1; O.C. 1151-2002, s. 27; O.C. 1535-2024, s. 19.

37. For the purposes of section 36.1 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6), a member’s aggregate benefits include optional ancillary contributions not converted into optional ancillary benefits and are treated as capital benefits.

O.C. 1290-99, s. 1; O.C. 1151-2002, s. 28; O.C. 1013-2011, s. 7; O.C. 1535-2024, s. 20.

38. (Revoked).

O.C. 1290-99, s. 1; O.C. 159-2007, s. 4; O.C. 1535-2024, s. 21.

DIVISION VIII CONNECTED PENSION PLANS

O.C. 1151-2002, s. 29.

39. This division applies only to connected pension plans, that is, pension plans to which the same employer is party and which contain the stipulation provided for in section 41.

A defined contribution plan may be considered to be a connected pension plan only where the employer party to it is also party to a defined benefit or defined benefit-defined contribution plan that contains the stipulation provided for in section 41.

O.C. 1151-2002, s. 29.

40. In this division, “period of continuous membership” means the period included between the date on which a member joins a connected pension plan to which the employer is party, unless such membership immediately follows the member’s cessation of active membership in another connected plan to which the same employer is party, provided the member does not immediately join another, similar plan. The member’s period of continuous membership ends, however, when he changes employer, except in the event of a substitution authorized by Retraite Québec.

O.C. 1151-2002, s. 29.

41. A connected pension plan shall clearly state, under an appropriate heading, that a member is entitled, at the date on which his period of continuous membership ends, to the pension benefit to which he would have been entitled if his active membership had ended at that date, determined in accordance with the following rules:

(1)  also taken into consideration for the determination of a member’s entitlement to pension benefits and ancillary benefits provided for under the plan is recognized service or the period of active membership determined under the terms of any other connected pension plan that the member joined during his period of continuous membership;

(2)  the member shall benefit from amendments to the plan introduced between the date on which his active membership ended and the date on which his continuous membership ended that increase pension benefits or ancillary benefits offered to active members belonging to the category of workers to which he belonged immediately prior to the first of those dates;

(3)  where a pension plan provides that the normal pension is determined according to the progression of a member’s remuneration up to the end of his active membership, the pension benefit to which the member is entitled at the date on which his period of continuous membership ends is determined according to the progress of his remuneration up to that date.

The plan shall also state under that same heading the name of any pension plan to which it is connected.

O.C. 1151-2002, s. 29.

42. The following provisions of the Act apply to a connected pension plan, subject to the following changes:

(1)  section 60, by adding the words “on the date on which his period of continuous membership ends” after the word “benefit”, in paragraph 1 of the first paragraph and replacing the words “where the member dies before becoming entitled to a pension benefit” with the words “where the member’s death ends his period of continuous membership”, in subparagraph 2 of the first paragraph;

(2)  section 60.1, by replacing the words “who ceases to be an active member” with the words “whose period of active membership ends”, in the first paragraph, the words “the date the member ceases to be an active member” with the words “the date the member’s period of continuous membership ends”, in the first sentence of the second paragraph, the words “the month the member ceases to be an active member” with the words “the month the member’s period of continuous membership ends”, in the second sentence of the second paragraph and by replacing the third paragraph with the following paragraph:

Where the member’s death ends his period of continuous membership, the value of the additional pension benefit shall be determined by supposing that the said period ended on the day of death for a reason other than death.;

(3)  section 61, by replacing the word “vesting” with the words “the period of the member’s continuous membership ends”;

(4)  section 66, by replacing the words “who ceases to be an active member” with the words “whose period of continuous membership ends”, and the words “in which the member ceases to be an active member” and “the date on which the member ceased to be an active member” with the words “the date on which his period of continuous membership ended”;

(5)  section 66.1, by replacing the words “who has ceased to be an active member and whose period of continuous employment has” with the words “whose period of continuous membership and period of continuous employment have”;

(6)  section 67, by replacing the words “who ceases to be an active member” with the words “whose period of continuous membership has ended”;

(7)  the second paragraph of section 71, by adding, after the words “continuous employment,” the words “provided his period of continuous membership has ended”;

(8)  section 86, by replacing paragraphs 1 and 2 of the first paragraph with the following paragraphs:

“(1)  where the members death is subsequent to the date his period of continuous membership ends, to the value of any pension to which he was entitled prior to his death;

“(2)  where the member’s death ends his period of continuous membership, to the value of the deferred pension to which he would have been entitled if his period of continuous membership had ended on the day of death for a reason other than death.”;

(9)  subparagraph 2 of the second paragraph of section 99, by replacing the words “the member ceased to be an active member” by the words “the member’s period of continuous membership has ended”;

(10)  subparagraph 3 of the second paragraph of section 99, by replacing the words “who ceased to be an active member,” with the words “whose period of continuous membership has ended”;

(11)  section 102, by replacing the words “who ceases to be an active member” with the words “whose period of continuous membership has ends”;

(12)  section 113, by replacing the words “that a member ceased to be an active member,” with the words “that a member’s period of continuous membership has ended,”.

O.C. 1151-2002, s. 29.

43. A member of a connected pension plan who, before his period of continuous membership ends, is affected by the withdrawal of an employer party to the plan or by termination of the plan is entitled to the pension benefit to which he would have been entitled if his period of continuous membership had ended on the date of that withdrawal or termination.

O.C. 1151-2002, s. 29.

44. With respect to a member of a connected pension plan, sections 15.0.2 and 15.0.3 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6) shall be applied by taking into account the date on which the member’s period of continuous employment ends, instead of the date on which he ceases to be an active member.

O.C. 1151-2002, s. 29.

45. In applying sections 36.1 and 37 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6), the aggregate benefits of a member of a connected pension plan are determined, where his period of continuous membership is in effect at the date of the actuarial valuation, by supposing that it ended on such date.

O.C. 1151-2002, s. 29; O.C. 1052-2012, s. 2.

46. The annual statement provided for in section 112 of the Act, which is sent to a member whose active membership in a connected pension plan has ceased but whose period of continuous membership has not ended shall contain all the information that the statement sent to an active member must contain, provided, where the statement must indicate the value of the member’s benefits, the value indicated shall be the value that the member could have transferred at the end of the last fiscal year if his period of continuous membership had ended on that date.

From the end of the member’s period of continuous membership, the first part of the annual statement that is sent to him shall be in conformity with section 59 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6).

O.C. 1151-2002, s. 29.

47. The statement referred to in the first paragraph of section 113 of the Act, which the pension committee must provide when it is informed that a member’s period of continuous membership has ended shall contain the information provided for in section 58 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6) and, where the circumstances warrant, in section 36 of this Regulation, it being understood that for the application of the said provisions, the date to be taken into account shall be the date on which the member’s period of continuous membership ended, instead of the date on which he ceased to be an active member.

O.C. 1151-2002, s. 29.

DIVISION IX

(Revoked)

O.C. 1098-2006, s. 1; O.C. 541-2010, s. 57.

48. (Revoked).

O.C. 1098-2006, s. 1; O.C. 541-2010, s. 57.

49. (Revoked).

O.C. 1098-2006, s. 1; O.C. 541-2010, s. 57.

50. (Revoked).

O.C. 1098-2006, s. 1; O.C. 541-2010, s. 57.

51. (Revoked).

O.C. 1098-2006, s. 1; O.C. 541-2010, s. 57.

52. (Revoked).

O.C. 1098-2006, s. 1; O.C. 541-2010, s. 57.

53. (Revoked).

O.C. 1098-2006, s. 1; O.C. 541-2010, s. 57.

54. (Revoked).

O.C. 1098-2006, s. 1; O.C. 541-2010, s. 57.

55. (Revoked).

O.C. 1098-2006, s. 1; O.C. 541-2010, s. 57.

56. (Revoked).

O.C. 1098-2006, s. 1; O.C. 541-2010, s. 57.

57. (Revoked).

O.C. 1098-2006, s. 1; O.C. 541-2010, s. 57.

58. (Revoked).

O.C. 1098-2006, s. 1; O.C. 541-2010, s. 57.

59. (Revoked).

O.C. 1098-2006, s. 1; O.C. 541-2010, s. 57.

60. (Revoked).

O.C. 1098-2006, s. 1; O.C. 541-2010, s. 57.

61. (Revoked).

O.C. 1098-2006, s. 1; O.C. 541-2010, s. 57.

62. (Revoked).

O.C. 1098-2006, s. 1; O.C. 541-2010, s. 57.

63. (Revoked).

O.C. 1098-2006, s. 1; O.C. 541-2010, s. 57.

64. (Revoked).

O.C. 1098-2006, s. 1; O.C. 541-2010, s. 57.

DIVISION X MEMBER-FUNDED PENSION PLANS

O.C. 159-2007, s. 5.

§ 1 . — General provisions

O.C. 159-2007, s. 5.

64.1. (Revoked).

O.C. 1052-2012, s. 3; O.C. 833-2017, s. 1; O.C. 1535-2024, s. 22.

65. This Division refers to a pension plan called a “member-funded pension plan”, a defined-benefit pension plan, which has the following characteristics:

(1)  the obligations of the plan, less the employer contribution fixed in the plan, are borne by the plan’s active members;

(2)  the employer contribution is limited to the contribution stipulated in the plan;

(3)  on 1 January of each year, the plan provides for an assumption for the indexation of pensions before and after retirement of all the plan’s members and beneficiaries according to the increase in the seasonally unadjusted All-items Consumer Price Index for Canada, published by Statistics Canada for each month during the 12-month period ending on 31 December of the preceding year; the indexation rate cannot be less than 0% or more than 4%;

(4)  the cap on the plan’s degree of solvency for the purposes of the payment of the value of benefits does not apply;

(5)  only the members and beneficiaries are entitled to the surplus assets, unless the tax rules require that the employer be relieved from paying the employer contributions through appropriation of all or part of the plan’s surplus assets;

(6)  surplus assets are allocated as a priority to the indexation of pensions, in accordance with Subdivision 11 of this Division;

(7)  the plan may not be amended or terminated, directly or indirectly, unilaterally by an employer that is a party to the plan or, in the case of a multi-employer pension plan, even not considered as such under section 11 of the Act, by all the employers that are party to the plan or by one of them.

O.C. 159-2007, s. 5; O.C. 833-2017, s. 2; O.C. 1535-2024, s. 23.

66. A member-funded pension plan cannot be

(1)  a pension plan in which the remuneration used for the purpose of calculating a member’s pension corresponds to the average of his last remunerations;

(2)  a pension plan in which the remuneration used for the purpose of calculating a member’s pension corresponds to his highest remunerations during a specified number of years;

(3)  a pension plan under which the pension is automatically increased by using for its determination an index or rate provided for in the plan;

(4)  an insured pension plan.

O.C. 159-2007, s. 5; O.C. 1535-2024, s. 24.

66.1. A member-funded pension plan cannot contain provisions which, in a defined-benefit pension plan, are identical to those of a defined-contribution plan.

O.C. 1535-2024, s. 25.

66.2. The provisions of the Act apply to member-funded pension plans with the exclusions and adaptations provided for in this Division.

In the event of incompatibility, the provisions of this Division prevail.

O.C. 1535-2024, s. 25.

§ 2 . — Establishment, amendment and registration

O.C. 159-2007, s. 5; O.C. 1535-2024, s. 26.

67. A member-funded pension plan may not be validly established by an amendment to a pension plan already in force whose purpose would be to convert such plan into a member-funded pension plan.

An amendment to a member-funded pension plan may not have the effect of converting such plan into a pension plan not belonging to that category of plans.

O.C. 159-2007, s. 5.

68. A member-funded pension plan may be established only if the eligible employees consent to the obligations incumbent on them under the plan.

Likewise, a plan amendment resulting in an increase in member contributions may be made only if the members subject to the increase consent to it, unless the amendment

(1)  has been made mandatory by a new legislative or regulatory provision giving no latitude;

(2)  results from the withdrawal of an employer referred to in section 199 or 199.1 of the Act or the cessation of eligibility considered a withdrawal of an employer pursuant to section 123;

(3)  involves the appropriation of surplus assets and meets all the terms and conditions provided for under the plan;

(4)  is referred to in section 97.

Approval in writing of the plan’s establishment or amendment by an accredited association constitutes consent, as the case may be, of the eligible employees or the members concerned that it represents.

For the employees eligible for membership under the plan or the members concerned by the amendment to the plan who are not represented by such an association, their consent is deemed obtained if less than 30% of them are opposed to the plan’s establishment or amendment, as the case may be.

Sections 146.4 and 146.5 of the Act apply, with the necessary modifications, to the consultation required to obtain consent.

The notice referred to in section 146.4 of the Act must, in the case of the plan’s establishment, mention that the cost of the obligations of the plan, less the employer contribution, is borne by the plan’s active members, that the members and beneficiaries’ pensions may be indexed provided that the plan remains fully funded and that the assets determined upon plan termination are entirely allocated to the plan’s members and beneficiaries.

O.C. 159-2007, s. 5; O.C. 1535-2024, s. 27.

69. The plan text must indicate, in addition to the information required under the second paragraph of section 14 of the Act, except for the information referred to in subparagraph 9.1 of the second paragraph and the information related to the appropriation and allocation of surplus assets referred to in subparagraphs 16 to 18 of the second paragraph of that section,

(1)  the characteristics referred to in paragraphs 1 to 6 of section 65;

(2)  the terms and conditions for the indexation of pensions provided for under the plan’s funding method;

(3)  that the assets determined upon termination of the plan are entirely allocated to the plan’s members and beneficiaries, proportionately to the value of their benefits on a solvency basis;

(4)  the person or body that is empowered to terminate the pension plan and under what conditions;

(5)  the rules used to determine the date of withdrawal of an employer party to the plan;

(6)  in the case of a plan that meets the requirements of section 105, that the benefits of members and beneficiaries affected by the withdrawal of an employer party to the plan whose pension is paid on the date of withdrawal or, subject to what is provided for in the funding policy, who would have been entitled to payment of a pension if they had applied for it on that date may be maintained in the plan if, according to the criteria established by the funding policy, such maintenance of benefits is permitted.

The conditions and procedure for appropriating surplus assets that must be mentioned in the plan text are those established in accordance with the provisions of Subdivision 11 of this Division.

O.C. 159-2007, s. 5; O.C. 833-2017, s. 3; O.C. 1535-2024, s. 27.

70. The notice required under section 16 of the Act, where a pension plan becomes effective before it is registered with Retraite Québec, must indicate that the plan is a member-funded pension plan.

O.C. 159-2007, s. 5; O.C. 1535-2024, s. 27.

71. The application for registration referred to in section 24 of the Act must be accompanied by an attestation that the consents required under section 68 have been obtained and that they can be provided to Retraite Québec on request.

O.C. 159-2007, s. 5; O.C. 833-2017, s. 4; O.C. 1535-2024, s. 27.

72. Registration of a member-funded pension plan requires that the report referred to in subparagraph 1 of the first paragraph of section 118 of the Act shows that the pension plan is fully funded and solvent on the date it comes into force.

Registration of an amendment to such a plan, except for an amendment referred to in subparagraph 1 of the second paragraph of section 68, requires that the report referred to in subparagraph 4 of the first paragraph of section 118 of the Act shows that at the date of the actuarial valution, the plan, once the additional obligations arising from the amendment are taken into account, remains fully funded or, if those obligations are related to service prior to that date, remains fully funded and solvent.

O.C. 159-2007, s. 5; O.C. 1535-2024, s. 27.

§ 3 . — Contributions

O.C. 159-2007, s. 5; O.C. 1535-2024, s. 27.

§§ I.  — Member contribution

O.C. 1535-2024, s. 27.

73. In the case of a member-funded pension plan, the contribution payable referred to in section 39 of the Act, less the employer contribution stipulated in the plan, is borne by the active members.

All contributions that an active member is required to pay under the first paragraph are considered as member contributions.

O.C. 159-2007, s. 5; O.C. 1535-2024, s. 27.

74. Member contributions are paid in equal instalments, at the frequency provided for under the plan. The instalments may represent an hourly rate or a rate of remuneration. The rate must be uniform unless it is established by reference to a variable authorized by Retraite Québec.

Where member contributions are not determined at the beginning of the fiscal year, the member must continue to pay fixed contributions for the preceding year. Any variation in the amount of payments established by an actuarial valuation of the plan takes effect on the date on which the fiscal year begins following the first fiscal year for which the contribution is calculated.

O.C. 159-2007, s. 5; O.C. 833-2017, s. 5; O.C. 1535-2024, s. 27.

§§ II.  — Employer contribution

O.C. 1535-2024, s. 27.

75. The provisions of the second paragraph of section 41 of the Act apply to the monthly payments of every employer contribution to member-funded pension plans, whatever the type.

Adjustments to the monthly payments of employer contributions provided for in the fourth paragraph of section 41 of the Act do not apply.

O.C. 159-2007, s. 5; O.C. 833-2017, s. 6; O.C. 1535-2024, s. 27.

76. Sections 42.1 and 42.2 of the Act do not apply to member-funded pension plans.

O.C. 159-2007, s. 5; O.C. 833-2017, s. 7; O.C. 1535-2024, s. 27.

§§ III.  — Voluntary contribution

O.C. 1535-2024, s. 27.

77. Voluntary contributions are, until retirement, credited to an account from which all other types of contributions are excluded.

O.C. 159-2007, s. 5; O.C. 1535-2024, s. 27.

§§ IV.  — Special payments

O.C. 1535-2024, s. 27.

78. No special improvement payment or special annuity purchasing payment may be established under a member-funded pension plan.

O.C. 159-2007, s. 5; O.C. 833-2017, s. 8; O.C. 1535-2024, s. 27.

§ 4 . — Refunds and pension benefits

O.C. 1535-2024, s. 27.

79. Sections 60 and 61 of the Act do not apply to benefits acquired under a member-funded pension plan.

The value of benefits accrued under a member-funded pension plan must be determined at the date of vesting of the benefits, on the basis of the actuarial assumptions determined under Division VIII.1 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6).

Such value is, for the purposes of the Act, in particular for the transfer of benefits, substituted for the value of the member’s benefits that would otherwise be determined pursuant to section 61 of the Act.

O.C. 159-2007, s. 5; O.C. 833-2017, s. 9; O.C. 1535-2024, s. 27.

80. For the purposes of the Act, a reference to the actuarial assumptions referred to in section 61 of the Act constitutes a reference to the actuarial assumptions referred to in the second paragraph of section 79.

Despite the foregoing, to determine the additional pension referred to in section 84 of the Act or a pension referred to in section 105 of the Act purchased with amounts transferred, the assumptions to be used are those used in verifying the funding of a plan for the purposes of its most recent actuarial valuation.

O.C. 159-2007, s. 5; O.C. 833-2017, s. 10; O.C. 1535-2024, s. 27.

81. In order to establish the amount of the early benefit referred to in section 69.1 of the Act, the value of the member’s benefits under the plan is the value that would be allocated to the member’s benefits for the purposes of their payment by supposing that the member ceases to be an active member and exercises his or her right to the refund or transfer of his or her benefits on the date on which the member applies for the payment of the benefit.

O.C. 159-2007, s. 5; O.C. 1535-2024, s. 27.

82. Section 78 of the Act related to contributions paid during the postponement period of a pension does not apply to member-funded pension plans.

O.C. 159-2007, s. 5; O.C. 1535-2024, s. 27.

83. Despite subparagraph 2 of the first paragraph of section 93 of the Act, the option of replacing the pension with a pension the amount of which is increased periodically according to an index or at a rate cannot be offered under a member-funded pension plan.

O.C. 159-2007, s. 5; O.C. 833-2017, s. 11; O.C. 1535-2024, s. 27.

84. Despite the second paragraph of section 5 of the Act, the plan may not contain provisions that are more advantageous than those contained in this Subdivision.

O.C. 159-2007, s. 5; O.C. 833-2017, s. 12; O.C. 1535-2024, s. 27.

§ 5 . — Transfer of benefits and assets

O.C. 1535-2024, s. 27.

85. Despite section 101 of the Act, the conditions set out in section 107 for the payment of the benefits of members and beneficiaries apply to the payment of transferred amounts.

O.C. 159-2007, s. 5; O.C. 833-2017, s. 13; O.C. 1535-2024, s. 27.

86. A member-funded pension plan cannot be the subject of a general agreement referred to in section 106 of the Act.

O.C. 159-2007, s. 5; O.C. 833-2017, s. 14; O.C. 1535-2024, s. 27.

87. Any amount transferred in the pension plan must, on the date of the transfer even otherwise than under Chapter VII of the Act, be converted, on the basis of the actuarial assumptions used to measure the funding of the plan for the purposes of the most recent actuarial valuation of the plan, into a normal pension amount.

The value of benefits transferred to another plan is determined in accordance with the second paragraph of section 79.

O.C. 159-2007, s. 5; O.C. 1535-2024, s. 27.

§ 6 . — Transfer of benefits between spouses

O.C. 1535-2024, s. 27.

88. For the purposes of partition or the transfer of a member’s benefits or the seizure of such benefits for non-payment of support, the most recent degree of solvency of the plan referred to in the fourth paragraph of section 143 that precedes the date of their valuation must be taken into account in determining the value of the member’s benefits.

O.C. 159-2007, s. 5; O.C. 833-2017, s. 15; O.C. 1535-2024, s. 27.

§ 7 . — Information to members

O.C. 1535-2024, s. 27.

§§ I.  — Documents

O.C. 1535-2024, s. 27.

89. The summary of a member-funded pension plan must include the following instead of the particulars referred to in subparagraphs 1 and 6 of the first paragraph of section 56.1 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6):

(1)  that the members’ and beneficiaries’ pensions under the plan may be indexed only if the plan is fully funded;

(2)  that the assets determined upon termination of the plan are entirely allocated to the members and beneficiaries whose benefits were not paid before the date of termination.

It must also indicate

(1)  that the plan is exempted from several provisions of the Act;

(2)  that the obligations of the plan, less the employer contribution, are borne by the plan’s active members.

O.C. 159-2007, s. 5; O.C. 1535-2024, s. 27.

90. In all statements of benefits, member contributions are mentioned without stating whether they are service contributions or amortization payments.

In addition, the information to be included must be established by taking into account the following characteristics of member-funded pension plans:

(1)  the provisions of section 60 of the Act do not apply;

(2)  the plan’s degree of solvency referred to in section 143 of the Act cannot be capped;

(3)  the rules provided for in section 146 of the Act do not apply;

(4)  the indexation of pensions can only be included in an amendment resulting from the appropriation of surplus assets.

O.C. 159-2007, s. 5; O.C. 833-2017, s. 16; O.C. 1535-2024, s. 27.

91. To establish the second part of the annual statement referred to in section 112 of the Act and sent to a member or beneficiary, the provisions of the first paragraph of section 59.0.2 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6) apply, in accordance with the following rules:

(1)  the degree of funding referred to in subparagraph 1 must be given with and without the indexation referred to in section 99;

(2)  the maximum amount of surplus assets that can be used under subparagraph 2 is the amount established in accordance with the second paragraph of section 111;

(3)  the share of the surplus assets used under subparagraph 5 is the amount established in accordance with the second paragraph of section 111.

O.C. 159-2007, s. 5; O.C. 833-2017, s. 17; O.C. 1535-2024, s. 27.

§§ II.  — Annual meeting

O.C. 1535-2024, s. 27.

92. If the plan allows the benefits of members and beneficiaries affected by the withdrawal of an employer party to the plan to be maintained in the plan, the following subjects must be on the agenda of the annual meeting, in addition to those referred to in section 61.0.11 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6):

(1)  the main risks associated with such maintenance of benefits;

(2)  the measures taken during the last fiscal year of the plan to manage these risks.

O.C. 159-2007, s. 5; O.C. 833-2017, s. 18; O.C. 1535-2024, s. 27.

§ 8 . — Funding

O.C. 1535-2024, s. 27.

§§ I.  — General provisions

O.C. 1535-2024, s. 27.

93. An actuarial valuation referred to in subparagraph 2 of the first paragraph of section 118 of the Act must be carried out at the ending date of the plan’s fiscal year.

An actuarial valuation related to the appropriation of surplus assets under Subdivision 11 of this Division must be carried out at the ending date of the fiscal year preceding the fiscal year during which the surplus assets were appropriated.

An actuarial valuation referred to in the second paragraph of section 118 of the Act must be carried out at the ending date of the plan’s fiscal year. To determine whether or not an actuarial valuation is required, the funding level to be used is the one established without taking into account the assumption for indexation of the pensions referred to in section 99.

Despite the third paragraph of section 118 of the Act, any actuarial valuation of a member-funded pension plan must be complete.

O.C. 159-2007, s. 5; O.C. 833-2017, s. 19; O.C. 1535-2024, s. 27.

94. The report related to an actuarial valuation of the plan must include, in addition to the requirements of Subdivision 3 of Division I of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6), the funding level referred to in paragraph 5 of section 5 of that Regulation with and without the assumption for indexation of the pensions referred to in section 99.

It must also include, instead of the information referred to in subparagraphs 6 and 7 of the first paragraph of section 6 of the Regulation, the member contribution provided for in the plan, if it is higher than the contribution provided for in section 73, and the description of the variation in the contribution resulting from the application of the second paragraph of section 74.

In addition, member contributions must be mentioned therein without stating whether they are service contributions or amortization payments.

O.C. 159-2007, s. 5; O.C. 1535-2024, s. 27.

95. If the plan allows the benefits to be maintained in the plan in the case of the withdrawal of an employer or has benefits maintained in the plan, all reports related to an actuarial valuation of the plan must indicate the criteria established by the funding policy, in accordance with section 105 and determine, at the date of the actuarial valuation, whether such maintenance of benefits may be offered in the case of withdrawal of an employer and if wound-up benefits, in accordance with Subdivision 13 of this Division, must be maintained in the plan, where applicable.

O.C. 159-2007, s. 5; O.C. 1535-2024, s. 27.

96. For the purposes of the report related to an actuarial valuation referred to in subparagraph 5 of the first paragraph of section 118 of the Act, the maximum amount of surplus assets that can be used under the first paragraph of section 11.1 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6), is the amount established in accordance with the second paragraph of section 111, and the amount of the surplus assets that are expected to be used and the conditions for their appropriation are those determined in accordance with Subdivision 11 of this Division.

O.C. 1535-2024, s. 27.

97. No more than 30 days after the date of the report on the actuarial valuation, the pension committee must inform the active members of any ensuing change to the member contribution. To do so, a notice is sent to each accredited association representing members, as well as to each member not represented by such an association, informing them that the change will take effect without further consultation according to the conditions provided for in the second paragraph of section 74.

Despite the foregoing, a pension plan may provide that the active members can elect to have the pension credit adjusted in lieu of a change to the member contribution. In such a case, the notice provided for in the first paragraph must indicate that the members must express their opinion on the proposed change to the member contribution and that the pension credit is to be adjusted accordingly for each accredited association or each group of unrepresented members that does not accept the proposal. The rules provided for in sections 146.4 and 146.5 of the Act apply to the consultation, with the necessary modifications.

The amendments to be made to the plan further to the decision of the active members are made without further consultation.

O.C. 1535-2024, s. 27.

§§ II.  — Funding

O.C. 1535-2024, s. 27.

98. Member-funded pension plans are exempt from the obligation referred to in section 125 of the Act to establish a stabilization provision.

O.C. 1535-2024, s. 27.

99. The funding method referred to in section 126 of the Act must include the assumption for the indexation of pensions established in accordance with the plan’s funding rules.

O.C. 1535-2024, s. 27.

100. All funding deficiencies must be established without taking into account the assumption for the indexation of pensions provided for in section 99.

O.C. 1535-2024, s. 27.

101. An improvement unfunded actuarial liability cannot be established in a member-funded pension plan, with the exception of an amendment referred to in subparagraph 1 of the second paragraph of section 68.

O.C. 1535-2024, s. 27.

102. Despite section 137 of the Act, the amortization amounts to be paid for an unfunded actuarial liability for all or part of each of the pension plan’s fiscal years included in the amortization period may be distributed according to the conditions set out in the pension plan.

For the purposes of the first paragraph, the provisions related to payroll and the number of active members are the same as those used to verify the plan’s funding for the purposes of its last actuarial valuation.

O.C. 1535-2024, s. 27.

103. The service contribution can be expressed, in addition to what is provided for in section 140 of the Act, as a fixed amount per active member.

O.C. 1535-2024, s. 27.

§§ III.  — Solvency

O.C. 1535-2024, s. 27.

104. Despite section 142.3 of the Act, the values related to the plan’s solvency are determined according to the rules set out in section 121.

O.C. 1535-2024, s. 27.

§§ IV.  — Funding policy

O.C. 1535-2024, s. 27.

105. A member-funded pension plan can allow the benefits of members and beneficiaries affected by the withdrawal of an employer party to the plan to be maintained in the plan only if the plan’s funding policy determines, on the one hand, the plan’s funding level under which the option to maintain their benefits in the plan may not be offered to members and beneficiaries affected by the withdrawal of an employer and, on the other hand, the plan’s funding level under which benefits maintained in the plan during previous employer withdrawals must be wound up. The limits may not be lower than 100%.

The funding level to be used is the one established without taking into account the assumption for the indexation of pensions, determined by the most recent actuarial valuation of the plan.

The funding policy may provide for criteria which, among the following, must in addition be considered for the purposes referred to in the first paragraph:

(1)  the percentage that the plan’s liabilities related to the benefits of members and beneficiaries whose benefits are maintained in the plan after employer withdrawals are of the plan’s liabilities determined on a funding level;

(2)  the plan’s level of maturity, knowing the percentage that the plan’s liabilities related to the benefits of members whose pension is in payment and of beneficiaries, determined on a funding level, are of the plan’s total liabilities;

(3)  the plan’s degree of solvency.

The funding policy can provide that the maintenance of benefits is offered only to members and beneficiaries whose pension is in payment on the date of the withdrawal.

O.C. 1535-2024, s. 27.

§ 9 . — Payment of benefits made in accordance with the annuity purchasing policy

O.C. 1535-2024, s. 27.

106. A payment of benefits made in accordance with the annuity purchasing policy referred to in section 142.4 of the Act cannot be carried out in a member-funded pension plan.

O.C. 1535-2024, s. 27.

§ 10 . — Payment of benefits

O.C. 1535-2024, s. 27.

107. Despite the third paragraph of section 143 of the Act, the degree of solvency applicable to the payment of benefits cannot be capped.

Sections 144 to 146 of the Act do not apply to member-funded pension plans.

O.C. 1535-2024, s. 27.

108. Voluntary contributions are refunded with accrued interest.

O.C. 1535-2024, s. 27.

§ 11 . — Appropriation of surplus assets

O.C. 1535-2024, s. 27.

109. During the life of a member-funded pension plan, the appropriation of surplus assets is subject to the provisions of this Subdivision rather than the provisions referred to in section 146.1 of the Act.

Despite the foregoing, the provisions of the first paragraph of section 146.2 and sections 146.3 to 146.5.1 of the Act apply, with the necessary modifications.

O.C. 1535-2024, s. 27.

110. Surplus assets can only be appropriated for the following, according to the plan’s provisions:

(1)  indexation of pensions;

(2)  provided that the pensions are fully indexed, payment of member contributions, payment of the value of additional obligations arising from an amendment to the plan or a combination of both.

O.C. 1535-2024, s. 27.

111. Surplus assets can be appropriated, as the case may be:

(1)  if they are appropriated for the indexation of pensions, once the plan is fully funded;

(2)  where the plan is fully funded and solvent and only if pensions are fully indexed for any of the purposes provided for in the plan under paragraph 2 of section 110.

In the case referred to in subparagraph 1 of the first paragraph, the maximum amount of surplus assets that can be used is equal to the amount of surplus assets determined on a funding basis and, in the case referred to in subparagraph 2 of the first paragraph, to the lesser amount of surplus assets determined on a funding basis and those determined on a solvency basis, established on the date of the actuarial valuation and taking into account, if applicable, the previous appropriation of the surplus assets to the indexation of pensions.

O.C. 1535-2024, s. 27.

112. Subject to section 111, a pension plan can be amended in order to index the pension of each member and beneficiary in accordance with the provisions of the plan.

An amendment related to indexation cannot become effective on a date before the date of the plan’s last actuarial valuation or more than one year after that date.

O.C. 1535-2024, s. 27.

113. The appropriation of surplus assets to the payment of member contributions ceases on the date of any actuarial valuation or of any notice referred to in section 119.1 of the Act that shows that the conditions set out in subparagraph 2 of the first paragraph of section 111 are no longer met.

O.C. 1535-2024, s. 27.

114. Despite the second paragraph of section 5 of the Act, no amendment related to the appropriation of surplus assets may be made to the plan unless it is in accordance with the provisions of this Subdivision.

O.C. 1535-2024, s. 27.

115. An adjustment resulting from the indexation referred to in section 112 applies to the amounts established in accordance with sections 15.3, 54 and 56.0.3 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6).

O.C. 1535-2024, s. 27.

§ 12 . — Division and merger

O.C. 1535-2024, s. 27.

116. The following are not authorized under a member-funded pension plan:

(1)  the division of the plan’s assets and liabilities among several plans, one of which is not a member-funded pension plan;

(2)  the merger of the plan’s assets and liabilities with those of a plan that is not a member-funded pension plan.

O.C. 1535-2024, s. 27.

117. The second, third and fifth paragraphs of section 196 of the Act do not apply to member-funded pension plans.

O.C. 1535-2024, s. 27.

§ 13 . — Liquidation of the benefits of members and beneficiaries

O.C. 1535-2024, s. 27.

§§ I.  — General provisions

O.C. 1535-2024, s. 27.

118. Despite sections 198, 207 and 240.2 of the Act, only the members and beneficiaries whose benefits have not been paid before the date of withdrawal of an employer party to a member-funded plan or the date of termination of such a plan are affected by the withdrawal or termination.

Despite subparagraph 1 of the third paragraph of section 198 of the Act, active members who are in the employ of another employer party to the plan on the date of the employer’s withdrawal are not affected by such withdrawal.

O.C. 1535-2024, s. 27.

119. As of the date of withdrawal of an employer or termination of the plan, no pension or part of pension of members or beneficiaries affected by the withdrawal or termination can be guaranteed by an insurer unless it is for the purposes of their payment in accordance with the provisions of this Subdivision.

O.C. 1535-2024, s. 27.

120. Member-funded pension plans are exempt from the application of the following provisions of Division II of Chapter XIII of the Act related to winding-up:

(1)  sections 210.1 and 211 and the second and third paragraphs of section 212.1;

(2)  Subdivision 3, related to the distribution of assets;

(3)  Subdivision 4, related to debts of the employer;

(4)  Subdivision 4.0.1, related to the payment options in the event of insufficient assets;

(5)  Subdivision 4.1, related to the distribution of surplus assets in the event of termination;

(6)  section 237.

O.C. 1535-2024, s. 27.

121. Despite section 212 of the Act, the value of the benefits of the members and beneficiaries affected by the withdrawal of an employer or the termination of a plan must be determined at either of the following dates, using the assumptions referred to in the second paragraph of section 79 that are applicable at that date:

(1)  the date the member ceased to be an active member, if the benefits whose value is being determined are those accrued to a member whose active membership ended before the date of the withdrawal or termination and who, at that date, had already opted, within the time limit set out in subparagraph 1 of the second paragraph of section 99 of the Act, for the payment of his or her benefits or still had time to exercise such an option, or those accrued to a beneficiary whose benefits under the plan derive from the service credited to such a member;

(2)  the date of the withdrawal or termination, if the benefits whose value is being determined are those accrued to any other member or beneficiary affected by the withdrawal or termination, including any member or beneficiary whose pension is in payment on that date.

The benefits accrued to the members and beneficiaries referred to in subparagraph 1 of the first paragraph bear interest from the date their value is determined to the date of the withdrawal or termination, at the rate used for the purposes of the valuation.

O.C. 1535-2024, s. 27.

122. In the event of withdrawal of an employer or the termination of the plan, section 216 of the Act does not apply to an amendment to the plan that uniformly applies to all members and beneficiaries.

O.C. 1535-2024, s. 27.

§§ II.  — Withdrawal of an employer

O.C. 1535-2024, s. 27.

123. The cessation of active members’ eligibility under the plan resulting from a decision concerning the accreditation of an association of employees or a decision of a group of employees provided for under the pension plan is considered to be a withdrawal of an employer. In this case, the following are affected by the withdrawal:

(1)  active members who cease to be employees eligible for membership in the plan by reason of the decision;

(2)  non-active members who would have ceased to be employees eligible for membership in the plan if they had been active members on the date of the decision;

(3)  beneficiaries whose benefits derive from the service credited to a member who, were it not for his or her death, would have been referred to in subparagraph 1 or 2.

Despite the foregoing, where, by reason of the decision referred to in the first paragraph, the members referred to in that paragraph become eligible for another member-funded pension plan, the plan in which they cease to be active members must, regardless of the conditions set out in the first paragraph of section 196 of the Act, be subject to an amendment concerning the division of its assets and liabilities. If the person authorized under the plan to make such an amendment fails to do so within 30 days after the pension committee is informed of the decision, the committee must proceed with the amendment. The members and beneficiaries referred to in subparagraphs 1, 2 and 3 of the first paragraph must be included in the division.

O.C. 1535-2024, s. 27.

124. Where an employer withdraws from a pension plan, all the benefits accrued under a member-funded pension plan by a member who has worked for several employers party to the plan must be considered in the value of his or her benefits regardless of the employer under which the benefits were accrued.

O.C. 1535-2024, s. 27.

125. Despite the second paragraph of section 198 of the Act, the date of withdrawal of an employer cannot be later than the date of the end of the fiscal year following the one in which the last contribution was required by members employed by that employer.

O.C. 1535-2024, s. 27.

126. Only a plan whose funding policy includes provisions in conformity with those required by section 105 can provide for the benefits of members and beneficiaries affected by the withdrawal of an employer to be maintained in the plan.

Such benefits maintained in the plan can only be offered to members and beneficiaries whose pension is in payment on the date of the withdrawal and, subject to what is provided for in the funding policy, to those who would have been entitled to payment of a pension on that date if they had so requested.

In addition, benefits maintained in the plan cannot be offered if, on the date of the withdrawal, the plan’s funding level is lower than the limit set by the funding policy or other criteria established by the funding policy are met on that date.

O.C. 1535-2024, s. 27.

127. The notice referred to in section 200 of the Act that must be sent by the pension committee must contain the following, instead of the information listed in paragraphs 2 to 4 of that section:

(1)  that the benefits of members and beneficiaries affected by the withdrawal will be paid based on the plan’s degree of solvency;

(2)  if the members’ and beneficiaries’ benefits cannot be maintained in the plan:

(a)  that the benefits, adjusted in accordance with paragraph 1, of members and beneficiaries to whom a pension is in payment on the date of the withdrawal will be paid by the purchase, from an insurer selected by the pension committee, of an annuity established using the value of those benefits or, if they so request, by means of a transfer under subparagraph b;

(b)  that other members’ benefits, adjusted in accordance with paragraph 1, will be paid by means of a transfer under section 98 of the Act, which applies with the necessary modifications or, if applicable, by a lump-sum payment or transfer to a registered retirement savings plan of the portion of their benefits that is refundable;

(3)  if the members’ and beneficiaries’ benefits can be maintained in the plan,

(a)  that the benefits of the members and beneficiaries referred to in the second paragraph of section 126 will be maintained in the plan, unless the members and beneficiaries request payment of their benefits adjusted in accordance with paragraph 1 by the purchase, from an insurer selected by the pension committee, of an annuity established using the value of those benefits or by means of a transfer under subparagraph b of paragraph 2;

(b)  that other members’ benefits, adjusted in accordance with paragraph 1, will be paid using one of the methods referred to in subparagraph b of paragraph 2.

O.C. 1535-2024, s. 27.

128. The pension committee must send to each member or beneficiary affected by the withdrawal, within 60 days of the date on which the notice referred to in section 200 of the Act is sent, a statement of benefits and their value, as well as the information necessary to choose a benefit payment method. Members and beneficiaries must be given at least 30 days to indicate their choice and exercise their options.

The statement must contain the following information:

(1)  the information referred to in paragraphs 2 to 10 of section 58 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6) and, unless the statement is for a non-active member whose pension is in payment or a beneficiary, in paragraph 1 of that section, as established or updated on the date of the withdrawal;

(2)  a mention whether or not it is possible to maintain the member’s or beneficiary’s benefits in the plan;

(3)  the period during which the member’s or beneficiary’s choices must be provided to the pension committee;

(4)  in the case of a member or beneficiary referred to in the second paragraph of section 126, an estimate of the annuity that can be purchased from an insurer with the value of his or her benefits adjusted in accordance with paragraph 1 of section 127 and a mention that the purchased annuity could differ.

An estimate of the annuity is made based on the premium determined using the assumptions for the hypothetical wind-up and solvency valuations established by the Canadian Institute of Actuaries as they apply at the date on which the statement was prepared. The premium must be increased by a margin that allows for any possible variation in the cost of purchasing the annuity between that date and the probable date of payment.

O.C. 1535-2024, s. 27.

129. If the members’ and beneficiaries’ benefits cannot be maintained in the plan, the statement must also indicate,

(1)  in the case of a non-active member whose pension is in payment on the date of the withdrawal or a beneficiary,

(a)  the payment methods provided for in subparagraph a of paragraph 2 of section 127;

(b)  that the benefits, adjusted in accordance with paragraph 1 of section 127, will be paid by the purchase of an annuity from an insurer selected by the pension committee if the member or beneficiary does not indicate another choice within the period referred to in subparagraph 3 of the second paragraph of section 128;

(2)  in the case of any other member, that the benefits, adjusted in accordance with paragraph 1 of section 127, will be paid by means of a transfer to a plan referred to in section 98 of the Act, which applies with the necessary modifications, or, where applicable, by a lump-sum payment or transfer to a registered retirement savings plan of the portion of his or her benefits that is refundable.

O.C. 1535-2024, s. 27.

130. If the members’ and beneficiaries’ benefits can be maintained in the plan, the statement must also indicate,

(1)  if it concerns a member or beneficiary referred to in the second paragraph of section 126

(a)  the payment methods provided for in subparagraph a of paragraph 3 of section 127;

(b)  that the benefits will be maintained in the plan if the member or beneficiary does not indicate another choice within the period referred to in subparagraph 3 of the second paragraph of section 128;

(c)  an indication that the benefits maintained in the plan may, if the criteria provided for in the funding policy are later met, be wound up according to the rules provided for in paragraph 1 of section 129 and that the purchased annuity or transferred amount could be less than the pension to which the member or beneficiary would have been entitled on the date of the withdrawal;

(2)  if it concerns any other member, the payment methods provided for in subparagraph b of paragraph 2 of section 127.

O.C. 1535-2024, s. 27.

131. The value of the benefits accrued to the members and beneficiaries referred to in the second paragraph of section 202 of the Act may, with the authorization of Retraite Québec and subject to the conditions determined by Retraite Québec, be determined on any date other than the date referred to in that paragraph.

The third paragraph of that section does not apply to member-funded pension plans.

O.C. 1535-2024, s. 27.

132. The benefits referred to in subparagraph 2 of the first paragraph of section 218 of the Act are paid in proportion to the plan’s degree of solvency as established in the report related to the withdrawal of an employer referred to in section 202 of the Act and sent to Retraite Québec.

O.C. 1535-2024, s. 27.

133. In the report referred to in section 202 of the Act, the plan’s degree of solvency referred to in subparagraph 9 of the first paragraph of section 62 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6) is the one determined for the entire plan at the date of the valuation of the members’ and beneficiaries’ benefits.

The withdrawal report must in addition indicate whether, on the date of the withdrawal, the benefits can be maintained in the plan based on the criteria established by the funding policy.

O.C. 1535-2024, s. 27.

§§ III.  — Liquidation of benefits maintained in the plan during the previous withdrawal of an employer

O.C. 1535-2024, s. 27.

134. Members and beneficiaries’ benefits whose benefits were maintained in the plan following the employer’s withdrawal must be settled where the report related to an actuarial valuation of the plan shows that the plan’s funding level, at the date of the actuarial valuation, is lower than the limit set by the plan’s funding policy or that the other criteria established by the policy are met on that date.

O.C. 1535-2024, s. 27.

135. The pension committee must, within 30 days of the date of the report, send to the members and beneficiaries a notice informing them, in addition to their benefits that will be settled,

(1)  of any criterion that, according to the funding policy, imposes to settle their benefits;

(2)  that the degree of solvency, applicable to the plan, is the most recent in the fourth paragraph of section 143 of the Act;

(3)  that their benefits will be paid based on the plan’s degree of solvency;

(4)  that their benefits, adjusted in accordance with paragraph 3, will be paid by the purchase, from an insurer selected by the pension committee, of an annuity established using the value of the benefits or, if they so request, by means of a transfer referred to in section 98 of the Act, which applies with the necessary modifications, or, where applicable, by a lump-sum payment or transfer to a registered retirement savings plan of the portion of those benefits that is refundable.

O.C. 1535-2024, s. 27.

136. The settlement is carried out as though it was a withdrawal of an employer party to a plan that does not allow the benefits of members and beneficiaries affected by the withdrawal to be maintained in the plan.

Sections 119 to 122, 128, 129 and 131 to 133 apply, with the necessary modifications, including the following:

(1)  the date of the actuarial valuation is substituted for the date of the withdrawal;

(2)  the date of the valuation of the benefits of members and beneficiaries affected is the date of the actuarial valuation;

(3)  for the purposes of section 128, the time limit for sending statements of benefits is established based on the date on which the notice referred to in section 135 was sent;

(4)  the statement of benefits referred to in that section must also mention that the benefits of members and beneficiaries affected will be paid based on the plan’s degree of solvency and in accordance with the rules provided for in paragraph 2 of section 127.

O.C. 1535-2024, s. 27.

§§ IV.  — Termination of the plan

O.C. 1535-2024, s. 27.

137. The right to terminate the plan referred to in section 204 of the Act belongs to the person or body to which such right is granted in the plan text.

O.C. 1535-2024, s. 27.

138. If there remains a balance after payment of the benefits referred to in subparagraph 2 of the first paragraph of section 218 of the Act, the balance must be allocated to the members and beneficiaries proportionately to the value of their benefits.

O.C. 1535-2024, s. 27.

139. In the termination report referred to in section 207.2 of the Act, the following modifications apply to the information referred to in the first paragraph of section 64 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6):

(1)  the information required by subparagraph 7 must not be distributed by employer or category;

(2)  the information referred to in subparagraphs 5, 8.1 to 8.4, 10 and 11 is not required;

(3)  the values referred to in paragraph 8 must be established in accordance with section 121, each of those values is reduced in accordance with section 122.1 of the Act;

(4)  the value of the benefits of members and beneficiaries affected by the termination must be distributed in accordance with each item of the payment order provided for in section 218 of the Act, which applies in accordance with paragraph 1 of section 120 and sections 122 and 138.

O.C. 1535-2024, s. 27.

140. To prepare the statement of benefits referred to in section 207.3 of the Act, the following modifications apply:

(1)  the information referred to in subparagraphs 1 and 2 of the first paragraph of section 65 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6) must not be distributed by employer or category and the information referred to in subparagraphs 3, 4 and 5 of that paragraph is not required;

(2)  the statement must include the value of the member’s benefits that corresponds to the amount allocated to the member, where applicable, pursuant to section 138.

If it is intended for a member or beneficiary whose pension is in payment or has been suspended on the date of the termination, the statement must also indicate an estimate of the annuity that could be purchased from an insurer and mention that the purchased annuity could differ. It must also indicate that the value of the member’s or beneficiary’s benefits must be paid according to one of the following payment methods:

(1)  by the purchase, from an insurer selected by the pension committee, of an annuity established using the value of the benefits in accordance with section 218 of the Act, which applies in accordance with paragraph 1 of section 120 and sections 122 and 138;

(2)  at the member’s or beneficiary’s request, by means of a transfer of the value of his or her benefits established in accordance with subparagraph 1 to a plan referred to in section 98 of the Act, with the necessary modifications.

The statement must also indicate that, if a member or beneficiary does not communicate his or her choices to the pension committee before the expiry of the period referred to in the first paragraph of section 207.2 of the Act, the value of his or her benefits will be paid by the purchase of an annuity referred to in subparagraph 1 of the second paragraph.

The estimate referred to in the second paragraph must be calculated based on the premium determined using the assumptions for the hypothetical wind-up and solvency valuations established by the Canadian Institute of Actuaries as they apply at the date on which the statement was prepared, increased by a margin that allows for any possible variation in the cost of purchasing the annuity between that date and the probable date of payment.

O.C. 1535-2024, s. 27; I.N. 2024-11-30.

141. Any amount paid by an employer, including any amount recovered after the date of termination in respect of contributions outstanding and unpaid at the date of termination, must be used for the payment of members’ and beneficiaries’ benefits in the order of priority established under section 218 of the Act.

O.C. 1535-2024, s. 27; I.N. 2024-11-30.

TRANSITIONAL

2024

(O.C. 1535-2024) SECTION 28. Section 20 of the Regulation respecting the exemption of certain categories of pension plans from the application of provisions of the Supplemental Pension Plans Act, as amended by section 9 of this Regulation, applies to the financial report that must accompany the annual information return related to any fiscal year of the plan ending after 30 December 2024.

If the annual meeting was held before 31 December 2024, the dispense from the financial report audit may apply provided that the members and beneficiaries have been informed in writing before the expiry of the period set out in section 161 of the Act to send the annual information return.

SECTION 29. Every flexible pension plan, within the meaning of section 26 of the Regulation respecting the exemption of certain categories of pension plans from the application of provisions of the Supplemental Pension Plans Act, must comply with the provisions of this Regulation as of 21 November 2024.

Despite the foregoing, the application for registration of amendments to a flexible pension plan that result from the provisions of Division VII of the Regulation respecting the exemption of certain categories of pension plans from the application of provisions of the Supplemental Pension Plans Act, as amended by this Regulation, in particular regarding the refund of optional ancillary contributions not converted into optional ancillary benefits and regarding the plan text, must be filed with Retraite Québec not later than 21 November 2025.

SECTION 30. Section 32 of the Regulation respecting the exemption of certain categories of pension plans from the application of provisions of the Supplemental Pension Plans Act, revoked by section 14 of this Regulation, continues to apply until payment by the employer of any amount determined before 21 November 2024 in accordance with that section.

SECTION 31. For the purposes of partition, transfer and seizure of benefits of a flexible pension plan, the provisions of the Regulation respecting the exemption of certain categories of pension plans from the application of provisions of the Supplemental Pension Plans Act apply, as in force on the date of the valuation of the member’s benefits.

SECTION 32. A flexible pension plan is exempted, for every application for registration filed after 20 November 2024, from payment of the $1,000 fee provided for in paragraph 4 of section 13 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6).

SECTION 33. Every member-funded pension plan must be subject to an actuarial valuation as at 31 December 2024.

SECTION 34. Every statement produced before 21 November 2025 may be established in accordance with the Regulation respecting the exemption of certain categories of pension plans from the application of provisions of the Supplemental Pension Plans Act in force on 20 November 2024.

Despite the foregoing, every statement related to the withdrawal of an employer party to a member-funded pension plan or the termination of such a plan that is produced after the date on which the report related to the actuarial valuation referred to in section 33 of this Regulation is sent to Retraite Québec must be established in accordance with the provisions of the Regulation respecting the exemption of certain categories of pension plans from the application of provisions of the Supplemental Pension Plans Act as amended by this Regulation.

SECTION 35. For every payment of benefits referred to in section 83 of the Regulation respecting the exemption of certain categories of pension plans from the application of provisions of the Supplemental Pension Plans Act, as it reads before 21 November 2024, the most recent degree of solvency may be determined at the day on which the pension committee receives the application for payment of the benefits if that day is prior to that date and where the pension committee provided the member with the value of the member’s benefits before that date.

SECTION 36. Subdivision 13 of Division X of the Regulation respecting the exemption of certain categories of pension plans from the application of provisions of the Supplemental Pension Plans Act, enacted by section 27 of this Regulation, does not apply to member-funded pension plans for the purpose of liquidating benefits where the notice referred to in section 200 or 204 of the Act was sent before the actuarial valuation referred to in section 33 was sent to Retraite Québec. The provisions of the Regulation respecting the exemption of certain categories of pension plans from the application of provisions of the Supplemental Pension Plans Act, in force on 20 November 2024, apply for the purpose of liquidating the benefits of members and beneficiaries affected by the withdrawal of an employer or the termination of the plan.

REFERENCES

O.C. 1160-90, 1990 G.O. 2, 2333

O.C. 1893-93, 1993 G.O. 2, 7146

O.C. 657-94, 1994 G.O. 2, 1871

O.C. 1466-95, 1995 G.O. 2, 3160

O.C. 280-99, 1999 G.O. 2, 431

O.C. 1290-99, 1999 G.O. 2, 4398

O.C. 1151-2002, 2002 G.O. 2, 5369

O.C. 436-2004, 2004 G.O. 2, 1615

O.C. 798-2006, 2006 G.O. 2, 3019

O.C. 1098-2006, 2006 G.O. 2, 3937

O.C. 159-2007, 2007 G.O. 2, 1064

O.C. 541-2010, 2010 G.O. 2, 1880

O.C. 1013-2011, 2011 G.O. 2, 2952

O.C. 1052-2012, 2012 G.O. 2, 3209

O.C. 345-2015, 2015 G.O. 2, 582

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

O.C. 833-2017, 2017 G.O. 2, 2625

O.C. 1535-2024, 2024 G.O. 2, 4052