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

Section 105 Disposition versions

2024-11-21

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.