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 23 Disposition versions

2016-01-01

23. A plan amendment intended to exempt the plan from the application of the provisions mentioned in section 21 must meet the following conditions:

(1)  the mention “Multi-employer Plan Exempted from the Application of Certain Provisions of the Supplemental Pension Plans Act” appears on the title page or the cover of the plan text;

(2)  anyone who has the power to amend the plan and, unless the plan, as it stood on 15 November 1988, has no provision allocating, in whole or in part, surplus assets to one or more of the employers in the event of the plan’s termination, all the employers who are parties to the plan consent in writing to the proposed exemption and a copy of their consent accompanies the application for registration of the amendment;

(3)  the members of the plan were notified in writing of the effects of the proposed exemption, notably the effects listed in the following subparagraphs, and a copy of the notice is provided to Retraite Québec and the employers who are parties to the plan:

(a)  that the employer’s obligation to fund the plan is limited to payment of the employer contribution provided for by the plan;

(b)  that the exemption from the application of the provisions of section 39 and 146, the third paragraph of section 230.0.0.9 and section 228 of the Act involves a higher risk that the members’ benefits may be reduced in the event of insufficient employer contributions, withdrawal of an employer or termination of the plan;

(c)  (subparagraph revoked);

(d)  that, in the event of plan termination, the surplus assets in their entirety will be allocated to the members and beneficiaries;

(4)  an actuarial valuation of the plan as at the end of the last fiscal year preceding the transmission of the application for registration of the amendment shows that the degree of solvency of the plan as at that date, calculated in accordance with chapter X of the Act and the rules set by paragraphs 4, 7 and 10 of section 24 and, where the said degree is not a whole number, rounded down to the next whole number, is equal to or greater than 120%. For the purposes of the valuation, any provision of the plan, except those arising from the application of section 60 of the Act, that would require that the value of a benefit be at least equal to a given percentage of the member contributions may not be taken into account;

(5)  the pension committee certifies that all the information, notices and documents required under the Act and that are related to the plan in respect of the period prior to the date of registration of the amendment for plan exemption were sent to Retraite Québec and that every amendment to the plan made prior to that date and concerning that period was the object of an application for registration;

(6)  Retraite Québec notified the pension committee that no question related to the plan is pending before it.

Paragraphs 1 and 2 of section 19 and section 30 of the Act do not apply to the amendment referred to in the first paragraph. Moreover, notwithstanding the said paragraphs of section 19, no amendment to the plan for which the application for registration is presented after the date of registration of the amendment referred to in the first paragraph may come into force on a date prior to the said date.

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

2012-09-01

23. A plan amendment intended to exempt the plan from the application of the provisions mentioned in section 21 must meet the following conditions:

(1)  the mention “Multi-employer Plan Exempted from the Application of Certain Provisions of the Supplemental Pension Plans Act” appears on the title page or the cover of the plan text;

(2)  anyone who has the power to amend the plan and, unless the plan, as it stood on 15 November 1988, has no provision allocating, in whole or in part, surplus assets to one or more of the employers in the event of the plan’s termination, all the employers who are parties to the plan consent in writing to the proposed exemption and a copy of their consent accompanies the application for registration of the amendment;

(3)  the members of the plan were notified in writing of the effects of the proposed exemption, notably the effects listed in the following subparagraphs, and a copy of the notice is provided to the Régie and the employers who are parties to the plan:

(a)  that the employer’s obligation to fund the plan is limited to payment of the employer contribution provided for by the plan;

(b)  that the exemption from the application of the provisions of section 39 and 146, the third paragraph of section 230.0.0.9 and section 228 of the Act involves a higher risk that the members’ benefits may be reduced in the event of insufficient employer contributions, withdrawal of an employer or termination of the plan;

(c)  (subparagraph revoked);

(d)  that, in the event of plan termination, the surplus assets in their entirety will be allocated to the members and beneficiaries;

(4)  an actuarial valuation of the plan as at the end of the last fiscal year preceding the transmission of the application for registration of the amendment shows that the degree of solvency of the plan as at that date, calculated in accordance with chapter X of the Act and the rules set by paragraphs 4, 7 and 10 of section 24 and, where the said degree is not a whole number, rounded down to the next whole number, is equal to or greater than 120%. For the purposes of the valuation, any provision of the plan, except those arising from the application of section 60 of the Act, that would require that the value of a benefit be at least equal to a given percentage of the member contributions may not be taken into account;

(5)  the pension committee certifies that all the information, notices and documents required under the Act and that are related to the plan in respect of the period prior to the date of registration of the amendment for plan exemption were sent to the Régie and that every amendment to the plan made prior to that date and concerning that period was the object of an application for registration;

(6)  the Régie notified the pension committee that no question related to the plan is pending before it.

Paragraphs 1 and 2 of section 19 and section 30 of the Act do not apply to the amendment referred to in the first paragraph. Moreover, notwithstanding the said paragraphs of section 19, no amendment to the plan for which the application for registration is presented after the date of registration of the amendment referred to in the first paragraph may come into force on a date prior to the said date.

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