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 123 Disposition versions

2024-11-21

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.