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 10 Disposition versions

2016-01-01

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 compiled monthly by Statistics Canada and published in the Bank of Canada Banking and Financial Statistics in series V122515 in the CANSIM system;

(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 third 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 third 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 third 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 third 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 (chapter R-15.1, r. 6), 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 (chapter I-3), 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.

2012-09-01

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 the Régie 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 compiled monthly by Statistics Canada and published in the Bank of Canada Banking and Financial Statistics in series V122515 in the CANSIM system;

(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 third 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 third 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 third 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 third 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 the Régie 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 (chapter R-15.1, r. 6), 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 (chapter I-3), 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.