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 24 Disposition versions

2016-01-01

24. The conditions for the exemption of the plan are the following:

(1)  (paragraph revoked);

(2)  (paragraph revoked);

(3)  (paragraph revoked);

(4)  notwithstanding section 142 of the Act, the amortization period for an unfunded actuarial liability expires at the end of a fiscal year of the pension plan that ends:

(a)  no later than 3 years after the date of the valuation that determined the liability, if the liability is a solvency deficiency; or

(b)  no later than 6 years after the date of the valuation that determined the liability, if the liability is a funding deficiency;

(5)  (paragraph revoked);

(6)  (paragraph revoked);

(7)  (paragraph revoked);

(8)  where the report on an actuarial valuation of the plan shows that the employer contribution provided for in the plan is less than the current service contribution reduced by the member contributions and increased by the greater of the following amounts:

(a)  the amortization payment determined in respect of the funding deficiency;

(b)  the total of the amortization payments determined in respect of the solvency deficiencies;

the pension committee shall present to Retraite Québec, during the 4 months following the expiry of the period provided for in section 119 of the Act for sending the said report, an application for registration of an amendment to the plan that concerns, notably, contributions, pension benefits and refunds and whose effect is to ensure that the employer contribution becomes sufficient;

(9)  where the requirements of paragraph 8 are not met, the employers who are parties to the plan shall be deemed to have failed to pay into the pension fund their employer contributions and Retraite Québec may then terminate the plan by applying section 205 of the Act;

(10)  in addition to the requirements of Division III of chapter II of the Act, an amendment that increases the value of the commitments arising from the plan may not be made to the plan unless, taking into account the said amendment, the plan is solvent and unless either the report on the actuarial valuation of the entire plan so indicates or such fact is certified by an actuary in a report that defines the assumptions used to that end;

(11)  the plan may not be the object of division or merger unless it ceases to be exempted from the application of the provisions referred to in section 21;

(12)  unless the plan provides otherwise, only the pension committee may terminate the plan;

(13)  the plan’s surplus assets are, in the event of termination and notwithstanding any provision to the contrary, allocated by right to the members and beneficiaries, including those who conserve such status pursuant to one or the other of sections 240.2, 308.3 or 310.1 of the Act in proportion to the value of their benefits;

(14)  (paragraph revoked);

(15)  any amount recovered after the date of the plan’s termination as contributions due and unpaid on that date shall be used to pay the benefits of the members and beneficiaries including, to the extent that the amount recovered constitutes surplus assets, those, if any, who conserve their status pursuant to one or the other of sections 240.2, 308.3 or 310.1 of the Act, proportionally to the value of the benefits of the said members and beneficiaries.

O.C. 280-99, s. 1; O.C. 1151-2002, s. 19; O.C. 1013-2011, s. 4; O.C. 345-2015, s. 1.

2015-05-14

24. The conditions for the exemption of the plan are the following:

(1)  (paragraph revoked);

(2)  (paragraph revoked);

(3)  (paragraph revoked);

(4)  notwithstanding section 142 of the Act, the amortization period for an unfunded actuarial liability expires at the end of a fiscal year of the pension plan that ends:

(a)  no later than 3 years after the date of the valuation that determined the liability, if the liability is a solvency deficiency; or

(b)  no later than 6 years after the date of the valuation that determined the liability, if the liability is a funding deficiency;

(5)  (paragraph revoked);

(6)  (paragraph revoked);

(7)  (paragraph revoked);

(8)  where the report on an actuarial valuation of the plan shows that the employer contribution provided for in the plan is less than the current service contribution reduced by the member contributions and increased by the greater of the following amounts:

(a)  the amortization payment determined in respect of the funding deficiency;

(b)  the total of the amortization payments determined in respect of the solvency deficiencies;

the pension committee shall present to the Régie, during the 4 months following the expiry of the period provided for in section 119 of the Act for sending the said report, an application for registration of an amendment to the plan that concerns, notably, contributions, pension benefits and refunds and whose effect is to ensure that the employer contribution becomes sufficient;

(9)  where the requirements of paragraph 8 are not met, the employers who are parties to the plan shall be deemed to have failed to pay into the pension fund their employer contributions and the Régie may then terminate the plan by applying section 205 of the Act;

(10)  in addition to the requirements of Division III of chapter II of the Act, an amendment that increases the value of the commitments arising from the plan may not be made to the plan unless, taking into account the said amendment, the plan is solvent and unless either the report on the actuarial valuation of the entire plan so indicates or such fact is certified by an actuary in a report that defines the assumptions used to that end;

(11)  the plan may not be the object of division or merger unless it ceases to be exempted from the application of the provisions referred to in section 21;

(12)  unless the plan provides otherwise, only the pension committee may terminate the plan;

(13)  the plan’s surplus assets are, in the event of termination and notwithstanding any provision to the contrary, allocated by right to the members and beneficiaries, including those who conserve such status pursuant to one or the other of sections 240.2, 308.3 or 310.1 of the Act in proportion to the value of their benefits;

(14)  (paragraph revoked);

(15)  any amount recovered after the date of the plan’s termination as contributions due and unpaid on that date shall be used to pay the benefits of the members and beneficiaries including, to the extent that the amount recovered constitutes surplus assets, those, if any, who conserve their status pursuant to one or the other of sections 240.2, 308.3 or 310.1 of the Act, proportionally to the value of the benefits of the said members and beneficiaries.

O.C. 280-99, s. 1; O.C. 1151-2002, s. 19; O.C. 1013-2011, s. 4; O.C. 345-2015, s. 1.

2012-09-01

24. The conditions for the exemption of the plan are the following:

(1)  (paragraph revoked);

(2)  (paragraph revoked);

(3)  (paragraph revoked);

(4)  notwithstanding section 142 of the Act, the amortization period for an unfunded actuarial liability expires at the end of a fiscal year of the pension plan that ends:

(a)  no later than 3 years after the date of the valuation that determined the liability, if the liability is a solvency deficiency; or

(b)  no later than 6 years after the date of the valuation that determined the liability, if the liability is a funding deficiency;

(5)  (paragraph revoked);

(6)  (paragraph revoked);

(7)  for the purpose of determining the solvency of the plan in accordance with section 123 of the Act, the liabilities must, for each member or beneficiary, be at least equal to:

(a)  for a member or beneficiary whose pension is in payment or suspended, the liabilities that would result from the use of the Canadian Institute of Actuaries’ Educational Note concerning assumptions for hypothetical wind-up and solvency valuations, applicable as at the date of the valuation, if the interest rates for a given month are replaced by the average rate for that month and the preceding 35 months;

(b)  for a member not referred to in subparagraph a, the liabilities that would result from the use of the actuarial assumptions referred to in section 67.4 of the Regulation respecting supplemental pension plans (chapter R-15.1, r. 6), if the reported rates for the applicable CANSIM series for a calendar month in the relevant paragraphs of the Canadian Institute of Actuaries’ Standards of Practice to which this section refers are replaced by the average rate for that calendar month and the preceding 35 months;

(8)  where the report on an actuarial valuation of the plan shows that the employer contribution provided for in the plan is less than the current service contribution reduced by the member contributions and increased by the greater of the following amounts:

(a)  the amortization payment determined in respect of the funding deficiency;

(b)  the total of the amortization payments determined in respect of the solvency deficiencies;

the pension committee shall present to the Régie, during the 4 months following the expiry of the period provided for in section 119 of the Act for sending the said report, an application for registration of an amendment to the plan that concerns, notably, contributions, pension benefits and refunds and whose effect is to ensure that the employer contribution becomes sufficient;

(9)  where the requirements of paragraph 8 are not met, the employers who are parties to the plan shall be deemed to have failed to pay into the pension fund their employer contributions and the Régie may then terminate the plan by applying section 205 of the Act;

(10)  in addition to the requirements of Division III of chapter II of the Act, an amendment that increases the value of the commitments arising from the plan may not be made to the plan unless, taking into account the said amendment, the plan is solvent and unless either the report on the actuarial valuation of the entire plan so indicates or such fact is certified by an actuary in a report that defines the assumptions used to that end;

(11)  the plan may not be the object of division or merger unless it ceases to be exempted from the application of the provisions referred to in section 21;

(12)  unless the plan provides otherwise, only the pension committee may terminate the plan;

(13)  the plan’s surplus assets are, in the event of termination and notwithstanding any provision to the contrary, allocated by right to the members and beneficiaries, including those who conserve such status pursuant to one or the other of sections 240.2, 308.3 or 310.1 of the Act in proportion to the value of their benefits;

(14)  (paragraph revoked);

(15)  any amount recovered after the date of the plan’s termination as contributions due and unpaid on that date shall be used to pay the benefits of the members and beneficiaries including, to the extent that the amount recovered constitutes surplus assets, those, if any, who conserve their status pursuant to one or the other of sections 240.2, 308.3 or 310.1 of the Act, proportionally to the value of the benefits of the said members and beneficiaries.

O.C. 280-99, s. 1; O.C. 1151-2002, s. 19; O.C. 1013-2011, s. 4.