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 140 Disposition versions

2024-11-21

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.