r-15.1 - Supplemental Pension Plans Act

À jour au 5 décembre 2000

Ce document a valeur officielle.

chapter R-15.1

Supplemental Pension Plans Act

CHAPTER I APPLICATION AND INTERPRETATION

1. This Act applies to pension plans provided

(1)  for employees who report for work at an establishment of their employer located in Québec or, if not, who receive their remuneration from such an establishment, provided, in the latter case, they do not report for work at any other establishment of their employer;

(2)  for employees not referred to in paragraph 1 who, while residing in Québec and being employed by an employer whose main establishment is located in Québec, work outside Québec, provided the plans are not governed by an Act of a legislative body other than the Parliament of Québec which provides for a deferred pension.

1989, c. 38, s. 1.

2. This Act does not apply to

(1)  a pension plan to which the employer is not required to make contributions. However, it applies to a pension plan where membership therein is a condition precedent to membership in another plan to which an employer is required to make contributions or, conversely, where membership therein is conditioned by membership in that other plan; where that is the case, such pension plans are deemed, for the purposes of this Act, to constitute a single pension plan;

(2)  a pension plan established for employees who are also members of a plan governed by this Act, if their employer makes contributions to both plans in their respect and if, under the terms of the other plan, they are entitled to benefits at least equal to the maximum benefits which may be paid under the terms of a registered pension plan defined in section 1 of the Taxation Act (chapter I-3);

(3)  a profit sharing plan or a deferred profit sharing plan referred to in Titles I and II of Book VII of Part I of the Taxation Act;

(4)  a pension plan established by an Act, unless such Act renders the plan subject to this Act;

(5)  a pension plan not established by an Act and administered by the Commission administrative des régimes de retraite et d’assurances, or a pension plan under which the Commission is responsible for the payment of the benefits, except if the Government subjects such pension plan to this Act.

The Government may, by regulation and on the conditions it determines, exempt any pension plan or category of pension plan it designates from the application of all or part of this Act, particularly by reason of the special characteristics of the plan or category or by reason of the complexity of the Act in relation to the number of members in the plan. The Government may also prescribe special rules applicable to the plan or category.

1989, c. 38, s. 2; 1991, c. 25, s. 178; 1995, c. 46, s. 30; 1993, c. 45, s. 1; 1999, c. 40, s. 254; 2000, c. 41, s. 1.

2.1. This Act, except sections 6, 64 and 107, the first paragraph of section 110 and section 171.1, which apply with the necessary modifications, does not apply to a pension plan if

(1)  all the members of the pension plan are persons connected with the employer within the meaning of subsection 3 of section 8500 of the Income Tax Regulations (Consolidated Regulations of Canada, 1978, chapter 945) and membership in the plan is optional and is restricted to those persons;

(2)  only employees described in section 1 may become members of the pension plan; and

(3)  active membership in the plan ceases when the member ceases to be a person connected with the employer

Moreover, such a pension plan is deemed, for the purposes of section 98, not to be a pension plan governed by this Act.

A pension plan to which the first paragraph applies becomes subject to this Act upon being amended to allow other persons to become members.

2000, c. 41, s. 2.

3. For the purposes of this Act,

“actuary” means any member of the Canadian Institute of Actuaries having the title of “Fellow” or a status recognized as equivalent by such Institute;

“accountant” means any person who, being a member of a professional order of accountants listed in Schedule I to the Professional Code (chapter C-26), is authorized under the Act constituting the order to act as an accountant for the purposes of a provision of this Act.

1989, c. 38, s. 3; 1994, c. 40, s. 457.

4. For the purposes of this Act, any person who avails himself of the services of a worker who is not an employee and makes contributions to a pension plan in respect of such worker is deemed to be the worker’s employer.

1989, c. 38, s. 4; 1999, c. 40, s. 254.

5. Any provision of a pension plan which is incompatible with this Act is without effect.

However, a pension plan may contain provisions that are more advantageous to members or beneficiaries than those contained in this Act.

1989, c. 38, s. 5; 1999, c. 40, s. 254.

CHAPTER II PENSION PLANS

DIVISION I NATURE

§ 1 . — General provisions

6. A pension plan is a contract under which retirement benefits are provided to the member, under given conditions and at a given age, the funding of which is ensured by contributions payable either by the employer only, or by both the employer and the member.

Every pension plan, with the exception of insured plans, shall have a pension fund into which, in particular, contributions and the income derived therefrom are paid. The pension fund shall constitute a trust patrimony appropriated mainly to the payment of the refunds and pension benefits to which the members and beneficiaries are entitled.

1989, c. 38, s. 6.

§ 2 . — Types of plans

7. A defined contribution pension plan is a plan under which employer contributions and, where applicable, member contributions, or the method used for calculating them, are set in advance and the normal pension payable is based on the amounts credited to the member.

A defined benefit pension plan is a plan under which the normal pension payable is either a set amount, independent of the member’s remuneration, or an amount corresponding to a percentage of the member’s remuneration.

A defined benefit-defined contribution pension plan is a plan under which employer contributions and, where applicable, member contributions and the normal pension, or the method used for calculating them, are set in advance.

1989, c. 38, s. 7.

8. A contributory pension plan is a plan to which member contributions are paid by the members.

1989, c. 38, s. 8.

9. An insured pension plan is a plan under which refunds and pension benefits are at all times guaranteed by an insurer.

1989, c. 38, s. 9.

10. Only an insurer who is authorized to carry on life insurance business in Québec or elsewhere in Canada where an agreement referred to in section 249 is applicable may guarantee the refunds or pension benefits provided under a pension plan.

1989, c. 38, s. 10.

11. A multi-employer pension plan is a plan in which the members are the employees of two or more employers.

However, a plan is not considered to be a multi-employer pension plan if the following conditions are met:

(1)  the employers who are parties to the plan are either subsidiaries of the same parent company or a parent company and its subsidiaries;

(2)  the plan provides that the subsidiaries that are parties to the plan and the parent company agree that the plan not be considered to be a multi-employer pension plan.

1989, c. 38, s. 11.

12. A parent company is a legal person which controls another company, which is, by that fact, a subsidiary of the parent company.

A legal person controls another legal person if it holds, directly or indirectly, otherwise than as security, securities entitling it to elect in all cases a majority of the directors of that other legal person.

1989, c. 38, s. 12.

DIVISION II ESTABLISHMENT AND EFFECTIVE DATE

13. A pension plan becomes effective on the earlier of the following dates:

(1)  the date from which, for the purposes of determining the normal pension, the employees’ service is taken into account as it is completed;

(2)  the date on which member contributions begin to be collected.

1989, c. 38, s. 13.

14. Unless an extension is granted by the Régie des rentes du Québec, any person who establishes a pension plan shall set it down in writing not later than 90 days after the day on which the plan becomes effective.

The text of the plan shall indicate

(1)  the name of the employer who is a party to the plan:

(2)  the number of members required to constitute the pension committee responsible for the administration of the plan, together with the conditions and time limits applicable to the designation or replacement of the members;

(3)  the requirements for membership and, in the case of a plan in which membership is optional, the withdrawal requirements;

(4)  the contributory or non-contributory nature of the plan;

(5)  the optional or compulsory nature of membership in the plan;

(6)  in the case of a multi-employer pension plan, the conditions for participation and for withdrawal of an employer;

(7)  the normal retirement age;

(8)  where the plan is guaranteed, the name of the insurer;

(9)  the member and employer contributions, or the method used for calculating the contributions;

(10)  in the case of a defined benefit plan, the normal pension or the method used for calculating the normal pension;

(11)  the nature of the refunds and pension benefits, the method used for calculating benefits or refunds, if any, and the conditions to be met to be entitled thereto;

(12)  if applicable, the powers under which the pension committee is authorized to transfer benefits accumulated by a member under the plan or any asset of the plan to another plan, and the rules applicable to such a transfer;

(13)  the effective date of the plan;

(14)  the fiscal year of the plan;

(15)  the conditions on which and the person or persons by whom the plan may be amended;

(16)  which of the employer only, the members and beneficiaries only or both the employer and the members and beneficiaries will be entitled to the surplus of assets determined upon the total termination of the plan, and, in the latter case, the percentage of such a surplus due to them. The percentages may, where the surplus is to be used to increase pension benefits, take into account the value of the obligations arising from such increases.

1989, c. 38, s. 14; 1992, c. 60, s. 1.

15. Any insurance contract under which an insurer guarantees refunds and pension benefits provided under a pension plan is an integral part of the plan; however, where a plan is not insured, the contract is part of the plan only to the extent that the recipient of the insured refunds or pension benefits continues to be a member of the said plan.

1989, c. 38, s. 15.

16. Where a pension plan becomes effective before it is registered with the Régie des rentes du Québec, the employer or, where a pension committee has been formed, the pension committee shall notify the Régie thereof in writing within 30 days.

The notice shall indicate, in addition to the name and address of the employer who is a party to the plan, the effective date of the plan and, if applicable, the date on which member contributions began to be collected. The notice shall also indicate in a concise manner

(1)  the type of plan established;

(2)  the normal pension or the method used for calculating the normal pension;

(3)  the member or employer contributions or the method used for calculating the contributions;

(4)  where applicable, the name and address of the person to whom powers have been delegated.

1989, c. 38, s. 16.

17. The person responsible for the administration of a pension plan which has become effective before being registered shall, on receiving contributions, deposit them with a bank, an insurer or an institution holding a licence issued in accordance with the Deposit Insurance Act (chapter A-26) and keep such contributions on deposit until the plan is registered.

The deposit shall be repayable on demand or upon notice of not more than 30 days.

1989, c. 38, s. 17.

18. No pension plan shall cease to be effective before the date on which the Régie revokes the plan’s registration, in the cases referred to in section 32.

No pension plan which is not registered shall cease to be effective before the date fixed by the Régie. The Régie may, in that case, order that the plan be wound up on the conditions and within the period it specifies.

1989, c. 38, s. 18.

DIVISION III AMENDMENT

19. No amendment to a pension plan may become effective before the date it is registered with the Régie, except in the following cases:

(1)  where the object of the amendment is the participation of another employer in a multi-employer plan, in which case the amendment becomes effective on the date determined pursuant to section 13;

(2)  where the amendment is to become effective on a given date prior to its registration, in which case the amendment may, provided it is registered, become effective on that date.

1989, c. 38, s. 19.

20. No amendment to a pension plan which cancels refunds or pension benefits, limits eligibility therefor or reduces the amount or value of the benefits of members or beneficiaries may become effective, if made under a collective agreement or an arbitration award in lieu thereof or rendered compulsory by an order or decree, before the date on which the collective agreement, award or order becomes effective and, in other cases, before the date the notice provided for in section 26 is sent.

However, the limit set under the first paragraph in respect of the effective date of an amendment reducing benefits does not apply

(1)  where the amendment is made to allow the plan to remain a registered pension plan within the meaning of section 1 of the Taxation Act (chapter I-3);

(2)  where the affected members or beneficiaries have agreed to the amendment, provided the Régie has authorized the amendment.

If the amendment relates to the normal pension, the method used for calculating the normal pension or any other benefit established on the basis of such pension or method, the amendment may affect only the service that is subsequent to the effective date of the amendment. This restriction is not applicable, however, in the cases mentioned in the preceding paragraph.

1989, c. 38, s. 20; 1991, c. 25, s. 179; 1992, c. 60, s. 2.

21. No amendment to a pension plan may reduce a pension benefit the payment of which began prior to the date on which the amendment became effective.

1989, c. 38, s. 21.

22. Any amendment made to a pension plan for the purpose of converting the plan into a plan of another type or substituting a new employer for the former employer is subject to the authorization of the Régie and the conditions it may fix.

In addition, if the amendment is intended to convert benefits resulting from the application of provisions which grant members defined benefits for service credited to them under the plan up to the date on which the amendment becomes effective, into amounts which, credited as defined contributions, will be used to purchase a pension of an indeterminate amount, such an amendment may be authorized only if the value of the benefits of every member who agrees to the conversion is equal to or greater than the value to which he would have been entitled had the plan been partially terminated on the date on which the amendment is to become effective.

1989, c. 38, s. 22; 1992, c. 60, s. 3.

23. The service credited to the members under a pension plan prior to an amendment referred to in section 22 shall be taken into account for the vesting of benefits under the amended plan.

For the purposes of section 34, the remuneration received or, as the case may be, the hours of work completed prior to such amendment shall also be taken into account.

1989, c. 38, s. 23.

CHAPTER III REGISTRATION OF PENSION PLANS AND AMENDMENTS

24. Every pension plan and every amendment to a pension plan shall be registered with the Régie.

The employer or, where a pension committee has been formed, the pension committee shall file an application for registration with the Régie, accompanied with

(1)  a copy of the plan or amendment, certified by the employer or by the committee, and, where refunds or pension benefits are guaranteed, a copy of the insurance contract, certified by the insurer;

(2)  the name and address of the employer or, in the case of a pension committee, the names and addresses of the committee members;

(3)  the employer’s written acknowledgement of the obligations incumbent upon him under the plan or amendment, unless the pension committee attests that it has obtained such acknowledgement from the employer and that it may, on request, be filed with the Régie;

(4)  in the case of a pension plan subject to the provisions of Chapter X as to funding and solvency, the report prescribed by section 119 with respect to the actuarial valuation of the plan;

(5)  in the case of an insured plan, a report prepared by the insurer containing the information prescribed by regulation;

(6)  any other document or information prescribed by regulation;

(7)  the fees prescribed by regulation.

1989, c. 38, s. 24.

25. Unless an extension is granted by the Régie, every application for the registration of a pension plan shall be filed not later than 90 days after the date on which the plan becomes effective; every application for the registration of an amendment whose object is the participation of another employer in a multi-employer pension plan shall be filed not later than the last day of the twelfth month following the month in which the amendment becomes effective.

1989, c. 38, s. 25.

26. A pension committee which proposes to apply for the registration of an amendment shall inform the active members thereof

(1)  by transmitting to each active member a written notice setting out the object of the proposed amendment and stating that the text of the amendment may be examined at the committee’s office and at the employer’s establishment specified, which must be located within 150 km of the member’s place of employment or, where the employer has no establishment within that distance, that the text may be obtained, without charge, on written request; or

(2)  with the authorization of the Régie, by sending the notice to the employer who, on receipt thereof, shall post it in a conspicuous place within his establishment, in an area ordinarily frequented by the members, or by publishing it in a newspaper circulated in the localities where at least half of the members are employed. However, the means of information provided for in this subparagraph cannot be used if the object of the proposed amendment is

 — the cancellation of refunds or pension benefits, new conditions limiting eligibility therefor or a reduction in the amount or value of the benefits of members or beneficiaries;

 — the allocation of a surplus of assets or the appropriation of such surplus to the payment of contributions;

 — the merging of the assets and liabilities of several plans;

 — the division of the plan’s assets and liabilities among several plans;

 — the conversion of the plan into a plan of another type.

A copy of the notice shall also be transmitted to the Régie.

This section does not apply where the amendment is made pursuant to a collective agreement or an arbitration award in lieu thereof, or is rendered compulsory by an order or decree.

1989, c. 38, s. 26; 1992, c. 60, s. 4.

27. The Régie shall send, to the applicant whose application for registration meets the requirements prescribed by this Act, an acknowledgment of receipt showing the date of receipt of the application.

If the application for registration is incomplete, the Régie shall forthwith notify the applicant, and specify the information which remains to be filed.

1989, c. 38, s. 27.

28. The Régie may, after giving the interested parties an opportunity to present observations, refuse to register a pension plan, or part thereof, or an amendment which, in its opinion, is not in conformity with this Act. It shall inform the parties by means of a written notice specifying the reasons for its refusal.

1989, c. 38, s. 28; 1997, c. 43, s. 649.

29. Upon registering a pension plan or an amendment, the Régie shall notify the applicant. The Régie shall assign a number to each plan it registers.

1989, c. 38, s. 29; 2000, c. 41, s. 15.

30. Every pension plan or amendment in respect of which an application for registration has been acknowledged is deemed to be registered if, 90 days after the date indicated in the acknowledgment, the applicant has not received from the Régie a request for additional information, a notice extending the period of examination of the application, a notice of refusal or a notice of registration.

1989, c. 38, s. 30; 2000, c. 41, s. 16.

31. The registration of a pension plan or of an amendment does not constitute proof of its conformity with this Act.

1989, c. 38, s. 31.

32. The Régie may revoke the registration of a pension plan in either of the following cases:

(1)  if, by reason of a transfer resulting from a conversion under section 22 or a division or merger under Chapter XII or by reason of the total termination of the plan in accordance with Chapter XIII, the members or beneficiaries no longer have any benefits under the plan or this Act, and the plan no longer holds any assets;

(2)  if the plan ceases to be governed by this Act.

Moreover, the Régie may, after giving the interested parties an opportunity to present observations, revoke the registration of any part of the plan or of an amendment which is not in conformity with this Act.

The Régie shall notify the interested parties of any revocation of registration by means of a written notice specifying the reasons therefor.

1989, c. 38, s. 32; 1997, c. 43, s. 650.

CHAPTER IV MEMBERSHIP

33. An employee eligible for membership in a pension plan becomes a member of the plan from the first of the following:

(1)  when contributions to the plan are paid by the employee or by the employer on behalf of the employee;

(2)  when the employee meets the membership requirements set out in the plan.

The employee shall remain a member until all benefits accumulated by him under the plan are paid, in particular, by means of a transfer to another plan, by the replacement of his pension pursuant to section 92 or upon termination of the plan. However, where the benefits are paid, otherwise than pursuant to section 98 or 100, by the purchase of a pension guaranteed by an insurer, the person entitled to such benefits shall nonetheless remain a member of the original plan.

1989, c. 38, s. 33; 1992, c. 60, s. 5.

34. Unless another plan providing similar benefits in which he is eligible for membership is established, an employee is entitled to become a member of a pension plan — and is required to do so in the case of a compulsory plan — if his employment is similar or identical to that of members belonging to the class of employees for whom the plan is established and if, in the calendar year preceding his application for membership, he met either of the following requirements:

(1)  he received from the employer a remuneration equal to or greater than 35 % of the Maximum Pensionable Earnings, established for the reference year in accordance with the Act respecting the Québec Pension Plan (chapter R-9);

(2)  he completed at least 700 hours of employment with the employer.

Where an employee has been employed by two or more employers participating in a multi-employer pension plan, the minimum remuneration required shall be determined on the basis of the overall remuneration from, or the overall hours of work for, each of the participating employers, in either of the following cases:

(1)  the employees eligible for membership in the plan are governed by the same collective agreement or arbitration award in lieu thereof;

(2)  the participating employers are a parent company and its subsidiaries or subsidiaries of the same parent company.

1989, c. 38, s. 34.

35. The Régie may order a pension committee to accept, as member of the plan, every employee who meets the requirements set out in section 34

(1)  where it is of the opinion that, in view, in particular, of the nature and requirements of the employment concerned, those of the elements serving to determine the class of employees for whom the plan is established which are invoked as grounds to dismiss the employee’s application for membership are unreasonable;

(2)  where there is a dispute as to whether or not the employee belongs to the class of employees for whom the plan is established.

1989, c. 38, s. 35.

36. For the purposes of this Act, every member of a pension plan is deemed to be an active member

(1)  until he ceases to be a member in accordance with the withdrawal requirements or until he no longer meets the requirements for membership;

(2)  until his period of continuous employment, as defined in section 54, is terminated;

(3)  until he dies.

The plan may, however, provide that the member remains an active member for a given period after the end of his period of continuous employment. Notwithstanding the second paragraph of section 5, the said period, increased by any period of layoff with a right of recall referred to in section 54, shall not exceed 24 consecutive months.

1989, c. 38, s. 36; 1994, c. 24, s. 1; 1999, c. 40, s. 254.

CHAPTER V CONTRIBUTIONS

37. The member contribution is the contribution that an active member is required to pay or the amount he elects to pay with a concurrent contribution by the employer.

The employer contribution is the contribution that the employer is required to pay.

An additional voluntary contribution is the amount that a member elects to pay without a concurrent contribution by the employer.

1989, c. 38, s. 37.

38. A current service contribution is the amount that the employer and, as the case may be, the active members are required to pay to ensure payment of the refunds and pension benefits provided under the pension plan in respect of service completed during a fiscal year of the plan and credited under the plan.

1989, c. 38, s. 38.

39. The employer shall, in each fiscal year of the pension plan, pay as employer contributions an amount which, when added to the member contributions, is equal to or greater than,

(1)  in the case of an uninsured plan, the sum of the current service contribution determined in accordance with sections 124 and 125 and the amortization amounts determined pursuant to section 131;

(2)  in the case of an insured plan, the current service contribution as established in section 40.

In the case of a multi-employer plan, the employer contribution shall be paid jointly by the employers who are parties to the plan.

1989, c. 38, s. 39.

39.1. Notwithstanding sections 39 and 140, the Régie may authorize an employer, to the extent and for the period determined by the Régie, to pay a lesser contribution into the pension fund than would otherwise be required if

(1)  the pension plan is a designated plan within the meaning of section 8515 of the Income Tax Regulations on the date on which the amount of contribution to be paid is determined;

(2)  the said Regulations exclude the payment as an eligible contribution of all or part of the contribution that should be paid by the employer pursuant to sections 39 and 140; and

(3)  all members and beneficiaries agree thereto.

2000, c. 41, s. 22.

40. In the case of an insured plan, the current service contribution shall correspond to the premium required by the insurer to guarantee the refunds and pension benefits to which the members are entitled in respect of service completed in any fiscal year of the plan and credited under the plan.

Furthermore, where an insurer guarantees refunds and pension benefits in respect of service credited for a period prior to the current fiscal year of the plan, the required premium shall, to ensure that the plan remains insured, be paid to the insurer in a lump sum as soon as the service is credited or the related benefits are improved under the plan.

1989, c. 38, s. 40.

41. The employer contribution shall be paid in as many monthly payments as there are months in the fiscal year of the plan, and not later than the last day of the month following the month for which a payment is made.

The monthly payments shall be of equal amounts. However, if they relate to the current service contribution, the monthly payments may represent a rate of the remuneration of or a percentage of the total payroll for the active members; the rate or proportion shall be uniform unless it is established by reference to a variable authorized by the Régie.

Where the employer contribution is not determined at the beginning of the fiscal year, the employer shall, until it is determined, continue to pay the monthly amounts fixed for the preceding fiscal year.

1989, c. 38, s. 41.

42. Where the amortization period for an unfunded actuarial liability begins or ends in the course of a fiscal year of the plan, the amortization amount for that year, determined under section 129, shall be paid in as many monthly payments as there are months in the portion of that fiscal year which is included in the amortization period.

1989, c. 38, s. 42.

43. Every person or body who or which collects member contributions or additional voluntary contributions shall, on or before the last day of the month following the month in which they are received, pay such contributions into the pension fund on behalf of the members or, in the case of an insured plan, to the insurer.

1989, c. 38, s. 43.

44. All member contributions and additional voluntary contributions and, in the case of a defined contribution plan, all employer contributions shall bear interest, from the first day of the month following the month in which they are payable into the pension fund or to the insurer,

(1)  in the case of an uninsured plan other than a defined contribution plan, at the rate of return derived from the investment of the plan assets, less investment expenses and administration costs, or, if the plan so provides, at the monthly rate of return on personal five-year term deposits with chartered banks, as compiled by the Bank of Canada;

(2)  in the case of a defined contribution plan, at the rate of return derived from the investment of all the assets of the plan or, where the plan so provides, of only such part of the assets as may be related to a particular group of members, less investment expenses and administration costs;

(3)  in the case of an insured plan, at the monthly rate referred to in subparagraph 1 or, if the plan so provides, at the rate of return derived from the investment of the insurer’s assets that are not included in the separate groups of assets constituted by the insurer, less, in the last case, investment expenses and administration costs.

However, if the plan provides that the members may select the investments to be made with all or part of the contributions, all investments so selected shall, for the purposes of subparagraphs 1 and 2 of the first paragraph, be excluded from the plan assets and the contributions so invested shall bear interest at the rate of return on such investments.

The provisions of this section which are applicable to the contributions paid under a defined contribution plan also apply to the contributions paid under terms in a defined benefit plan that are identical to those of a defined contribution plan.

1989, c. 38, s. 44.

45. Despite subparagraph 2 of the first paragraph of section 44, employer contributions paid under a defined contribution pension plan may, if the plan so provides, bear interest at the rate of return on the investment of the contributions paid by the members under that plan or another pension plan which may or may not be governed by this Act, insofar as the investment is decided by the members.

1989, c. 38, s. 45.

45.1. Where the interest due on the amounts credited to a member is to be calculated on the basis of the return obtained on the assets invested, and the investment results in a loss, such amounts may be reduced proportionally to the fraction that the amount of the loss is of such assets.

1992, c. 60, s. 6.

46. Unless provided in the plan, the method used for calculating the rates of return and the method used for applying the monthly rate of interest shall, for the purposes of sections 44 and 45, be determined by the actuary or the accountant selected by the pension committee; in the case of an insured plan, the methods shall be determined by the insurer.

The method used to calculate the loss incurred by the assets and the resulting reduction of the value of the contributions shall, for the purposes of section 45.1, be determined in the same way.

1989, c. 38, s. 46; 1992, c. 60, s. 7.

47. Where a member or beneficiary has become entitled to a benefit under the terms of the pension plan,

 — additional voluntary contributions,

 — member or employer contributions paid under a defined contribution plan or under terms in a defined benefit plan that are identical to those of a defined contribution plan, and

 — member contributions above the limit set by section 60,

 — shall continue, subject to the provisions of section 45.1, to bear interest at the rate prescribed by section 44 or 45 until such contributions are used to replace a pension under section 92, are transferred in accordance with section 98 or 100 or are refunded, or until and additional pension is purchased with such contributions as provided in section 83.

1989, c. 38, s. 47; 1992, c. 60, s. 8.

48. Unless a pension plan or, in the case of an insured plan, an insurance contract sets a higher rate of interest, any contribution which has not been paid into the pension fund or to the insurer shall bear interest, from the date of default, at the rate prescribed by section 44 or 45.

1989, c. 38, s. 48.

49. Until contributions and accrued interest are paid into the pension fund or to the insurer, they are deemed to be held in trust by the employer, whether or not the latter has kept them separate from his property.

1989, c. 38, s. 49.

50. The employer shall, on remitting the contributions, inform the pension committee or, in the case of an insured pension plan, the insurer, of the reason for any significant variation in the contributions payable into the pension fund or to the insurer.

1989, c. 38, s. 50.

51. The pension committee and, in the case of an insured pension plan, the insurer shall notify the Régie of any unpaid contribution within 60 days after it becomes due.

1989, c. 38, s. 51.

52. Unless they have exercised the prudence, diligence and care that a reasonable person would have exercised in comparable circumstances or unless, in the same circumstances they were unaware of the default, the directors of a legal person which, as an employer, is a party to a pension plan, shall be solidarily liable for contributions which become due and remain unpaid during their term in office, with interest, up to a contributory period of six months.

In the case of a multi-employer pension plan that is not considered as such pursuant to section 11, the directors of a subsidiary are liable for the contributions only if the parent company fails to pay the contributions referred to in the first paragraph. Where the directors of the subsidiary also fail to pay the contributions for which they are liable under this paragraph, the directors of the parent company become liable for the contributions.

The six-month limit set out in the first paragraph does not apply where the pension fund is managed by the employer.

1989, c. 38, s. 52.

53. A director shall be liable under section 52 only in either of the following cases:

(1)  where the legal person has been prosecuted within two years after the date the unpaid contribution became due and full satisfaction of the amount awarded by judgment was not obtained upon execution;

(2)  where the legal person was, within two years of the date the unpaid contribution became due, the subject of a winding-up order or became bankrupt within the meaning of the Bankruptcy and Insolvency Act (Revised Statutes of Canada, 1985, chapter B-3) and the claim filed has not been discharged.

1989, c. 38, s. 53.

CHAPTER VI REFUNDS AND PENSION BENEFITS

DIVISION I GENERAL PROVISIONS

54. The period of continuous employment of an employee is the period during which the employee is employed by an employer, regardless of periods of temporary interruption and periods of disability during which the member continues to accumulate benefits. A period of layoff with a right of recall shall not, for the purposes of this paragraph and notwithstanding the second paragraph of section 5, be considered to be a period of temporary interruption beyond 24 consecutive months, unless the plan so permits and the employee consents thereto.

A change of employer does not, for the purposes of a pension plan, interrupt the period of continuous employment of an employee, provided the Régie authorized the transfer of obligations in the cases referred to in section 22 or in Chapter XII.

In the case of a multi-employer pension plan, even where it is not considered as such pursuant to section 11, a change of employer does not interrupt the period of continuous employment of an employee if the former employer and the successor employer are parties to the plan.

1989, c. 38, s. 54; 1994, c. 24, s. 2.

55. The credited service of a member is the service counted under the terms of a pension plan for the vesting or calculation of pension benefits.

1989, c. 38, s. 55.

56. Where a multi-employer plan, even a plan not considered as such pursuant to section 11, is partially terminated in accordance with Chapter XIII, any service credited under the plan before the date of termination to any member affected by the termination who remains an active member after that date shall be counted for vesting purposes.

1989, c. 38, s. 56.

57. Unless approved by the Régie,

 — employer contributions paid under a defined contribution plan or under terms in a defined benefit plan which are identical to those of a defined contribution plan,

 — the method used for calculating the employer contributions, and

 — the method used for calculating the normal pension payable under the terms of a defined benefit plan or a defined contribution-defined benefit plan,

shall not, with respect to members of the same class of employees and for the same period of credited service, vary according to the number of years of employment or of credited service.

1989, c. 38, s. 57.

58. Every pension paid under a pension plan shall be a life pension and shall not be paid in any other form during the lifetime of the member or, in the case of a spouse’s pension, during the lifetime of the spouse except for the temporary pension provided for in section 91.1, the pension derived therefrom, and the fraction of a pension which, under the terms of the pension plan, must be paid to the member or beneficiary until he is eligible for any benefit, other than an early retirement pension, payable under the Act respecting the Québec Pension Plan (chapter R-9), the Canada Pension Plan (Revised Statutes of Canada, 1985, chapter C-8), the Old Age Security Act (Revised Statutes of Canada, 1985, chapter O-9) or an income security program prescribed by regulation.

A defined benefit plan or a defined contribution-defined benefit plan, however, may provide that payment of a pension may be suspended for a given period at the request of the member when the member is re-employed by the employer party to the plan or, in the case of a multi-employer plan, even a plan not considered to be a multi-employer plan pursuant to section 11, by one of the employers who are parties to the plan, subject to the following conditions:

(1)  if the suspension begins before the first day of the month following the month during which the member attains 65 years of age or, in the case of a member who attains 65 years of age on the first day of a month, before that day, the member accumulates new benefits in respect of his work during the period of suspension preceding that day, in accordance with the terms and conditions provided under the plan for employees of his class, up to the maximum period of service that may be credited to him under the pension plan for the purpose of calculating the normal pension;

(2)  if the pension suspended is a retirement pension reduced by reason of payment having begun before the normal retirement age, the reduction must be recalculated at the end of the suspension;

(3)  if the suspension continues or begins after the day referred to in subparagraph 1, the pension of which payment was suspended shall be adjusted to take account of any recalculation of the reduction pursuant to subparagraph 2 and of any new accumulated benefits referred to in subparagraph 1. The adjustment formula shall be the same as that prescribed in the plan, pursuant to the second paragraph of section 79, for the amount of pension not paid during a postponement period.

Furthermore, the additional pension resulting from the contributions paid during suspension of the pension shall be established in accordance with the rules set forth in section 78 for the calculation of the minimum value of the pension resulting from contributions paid during a postponement period.

Suspension of the pension ends upon termination of the member’s period of continuous employment or at the time established under paragraph 2 of section 80.

1989, c. 38, s. 58; 1994, c. 24, s. 3; 1997, c. 19, s. 5.

59. The periodic amounts payable as pension benefits shall be equal unless

(1)  the pension is replaced

(a)  by a temporary pension provided for in section 91.1 or a pension derived therefrom, in which cases only the periodic amounts relating to that part of the pension that is not replaced must be equal;

(b)  by a pension referred to in section 92;

(2)  each payable amount is uniformly adjusted by reason of a variation in an index used in determining the pension, by reason of options authorized by subparagraphs 2 to 4 and 6 of the first paragraph of section 93 or by reason of the partition of the benefits of the member between the member and his spouse in accordance with Chapter VIII;

(3)  the pension is replaced by a lump sum paid pursuant to subparagraph 4, 5 or 6 of the first paragraph of section 93.

1989, c. 38, s. 59; 1997, c. 19, s. 6.

60. The member contributions paid by a member, including accrued interest, shall not be used to pay more than 50 % of the value

(1)  of any pension benefit to which the member becomes entitled, including benefits related thereto;

(2)  of any benefit to which a beneficiary becomes entitled, where the member dies before becoming entitled to a pension pursuant to subparagraph 2 of the first paragraph of section 86.

This section does not apply

(1)  to pension benefits accrued under the terms of a defined contribution pension plan;

(2)  to pension benefits accrued under terms in a defined benefit pension plan which are identical to those of a defined contribution pension plan;

(3)  to benefits resulting from a transfer of benefits or assets under Chapter VII;

(4)  to the additional pension referred to in the third paragraph of section 58 or in section 78 or 83;

(5)  to that part of any pension benefits accrued for a period of service which, even though no employer contributions were paid in respect of the member, was nevertheless credited by reason of the exercise by the member of an election offered to him under the plan for that purpose, insofar as it is provided that all the obligations arising from the election are to be borne by the member;

(6)  to a benefit to which subparagraph 1 of the first paragraph applies and which was purchased with amounts to be refunded, or is the result of the conversion of a benefit other than a life pension.

1989, c. 38, s. 60; 1992, c. 60, s. 9; 1994, c. 24, s. 4.

61. The value of the pension benefits to which section 60 applies shall be determined at the date of vesting, according to assumptions and methods consistent with generally accepted actuarial principles. Such assumptions and methods shall be transmitted to the Régie by the pension committee not later than 30 days before they are applied.

Where a member is entitled, pursuant to Chapter VII or under the terms of a pension plan, to transfer his pension benefits to another plan, the value of the benefits may, however, be determined on the basis of assumptions and methods used to determine the premium required by an insurer to guarantee the benefits, if the insurance proposal establishing the premium provides, in particular,

(1)  that the member will be entitled to a pension at a given age and that, if he is receiving a pension at the time of his death, his spouse will be entitled to the pension provided for under this Act;

(2)  that the member will be entitled to transfer to another pension plan referred to in section 98 the value of his pension benefits with accrued interest calculated at the monthly rate of return on personal five-year term deposits with chartered banks, as compiled by the Bank of Canada, that right being exercisable, provided payment of the pension has not begun, every five years, within 180 days after the date of expiry of every fifth year;

(3)  that the spouse or the successors of a member who died before receiving any pension payment will be entitled to the transfer of the amounts referred to in subparagraph 2 to another pension plan referred to in section 98;

(4)  that the member will be entitled, at any time during the period determined under subparagraph 1 of the second paragraph of section 99, to avail himself of the proposal and to transfer the value of his pension benefits to the proposed pension plan.

1989, c. 38, s. 61; 1999, c. 40, s. 254.

62. Any benefit determined on the basis of the normal pension shall, where the pension is established with reference to the progression of the member’s remuneration in the course of his period of employment, take into account the progression until the end of the member’s period of continuous employment, except

(1)  where the pension plan provides that the pension will cease to be established with reference to the progression of the member’s remuneration before the end of the member’s period of continuous employment, provided that date is not prior to the date on which the member ceases to be an active member;

(2)  where the pension plan is amended to provide that, in respect of service credited to the member from the effective date of the amendment, the pension shall cease to be established with reference to the progression of the member’s remuneration.

1989, c. 38, s. 62.

63. In the case of an insured plan, or of an uninsured plan under which refunds or pension benefits are guaranteed by an insurer, coverage for service completed in the course of a fiscal year of the plan and credited under such plan shall be granted as the insurer receives contributions from the employer or from the pension committee.

Coverage for service credited in respect of any period prior to the current fiscal year of the plan shall be granted upon receipt of the total amount of the premium required by the insurer.

1989, c. 38, s. 63.

63.1. Where the value of the benefits of a member or a beneficiary under a pension plan exceeds the upper limit fixed in that respect by fiscal rules, the pension committee must refund the excess portion to him in order that the plan may continue to be a registered pension plan as defined in section 1 of the Taxation Act (chapter I-3).

1992, c. 60, s. 10.

64. The designation of beneficiaries and the revocation thereof are governed by articles 2445 to 2460 of the Civil Code, adapted as required.

1989, c. 38, s. 64; 1999, c. 40, s. 254.

65. With the exception of sections 63, 64, 67, 83, 84, 86 and 93, this chapter does not apply to additional voluntary contributions.

1989, c. 38, s. 65.

DIVISION II REFUNDS

66. Every member is entitled to the refund of the member contributions paid by him, and the employer contributions paid in respect of a member may be refunded to the member, with accrued interest, except in the following cases:

(1)  if the member is an active member;

(2)  if the member is entitled to pension benefits, unless the pension plan provides that he may elect to receive a refund even if he became entitled to a deferred pension before meeting the requirements prescribed by this Act to be entitled to such pension. However, no refund resulting from such an election may be made after the member has met such requirements.

Notwithstanding the second paragraph of section 5, no plan may provide for the refund of contributions in contravention of this section.

1989, c. 38, s. 66.

67. Every member who ceases to be an active member is entitled to withdraw the value of additional voluntary contributions credited to his account, with accrued interest, except if the contributions have been used to purchase a pension or if they result from the conversion of member or employer contributions transferred under section 98 or 100.

The right to withdraw contributions may be exercised only within the 180 days which follow the date on which the member ceased to be an active member and, subsequently, only every five years, within the 180 days which follow the date of expiry of every fifth year.

1989, c. 38, s. 67.

DIVISION III PENSION BENEFITS

§ 1 . — Deferred pension

68. A deferred pension is a retirement pension, payment of which is deferred until normal retirement age.

A deferred pension shall have the same characteristics as the normal pension, except

(1)  those relating to a postponed pension referred to in sections 76 to 80;

(2)  the pension supplement provided by the pension plan for the payment of a minimum normal pension, which may, with the authorization of the Régie, not be counted for the purpose of determining the deferred pension.

1989, c. 38, s. 68.

69. Every member who ceases to be a member after completing two years or more of active membership is entitled to a deferred pension equal to or greater than the normal pension.

1989, c. 38, s. 69.

§ 1.1 . — Early benefit

1997, c. 19, s. 7.

69.1. Any active member whose working time is reduced pursuant to an agreement with his employer and who is 10 years or less under normal retirement age or who has attained or exceeded that age is entitled, on request, for each year covered by the agreement, to the payment, in a lump sum, of a benefit equal to the lowest of the following amounts:

(1)  70 % of the reduction in his remuneration resulting from the reduction in his working time during the year;

(2)  40 % of the Maximum Pensionable Earnings for the year concerned established pursuant to the Act respecting the Québec Pension Plan (chapter R-9) or, where applicable, a part of that amount proportional to the number of months in the year covered by the agreement;

(3)  the value of his benefits under the plan, established on the assumption that he ceases to be an active member on the date on which he applies for the payment of the benefit.

Notwithstanding the second paragraph of section 5, the plan may not contain provisions that are more advantageous than those contained in the first paragraph. Moreover, an active member may not receive, in the same year, the benefit provided for in this section and a pension payable under section 77 or a pension replacing that pension.

The reduction in the member’s pension resulting from the payment of the benefit provided for in this section may not exceed the amount of the benefit. Moreover, the remuneration paid during the period in which the member is entitled to the benefit shall not be taken into consideration for the computation of the benefits relating to credited service that does not relate to that period, unless it is to the advantage of the member.

The employer shall, within 60 days of the date on which he becomes party to an agreement referred to in the first paragraph, transmit to the pension committee the name of every member to whom that paragraph applies.

1997, c. 19, s. 7.

§ 2 . — Early retirement pension

70. An early retirement pension is a retirement pension, payment of which begins before normal retirement age.

1989, c. 38, s. 70.

71. Every person who has been an active member for at least two years and whose period of continuous employment is terminated within ten years of the date on which he will attain normal retirement age is entitled to an early retirement pension.

However, a member who is entitled to a deferred pension may, whether or not he has terminated continuous employment, receive early payment of that pension if he applies therefor within ten years of attaining the normal retirement age fixed by the plan giving him entitlement to the deferred pension.

1989, c. 38, s. 71; 1992, c. 60, s. 11.

72. The value of the early retirement pension shall be equal to or greater than the value of the normal pension, discounted on the date on which payment of the early retirement pension begins.

1989, c. 38, s. 72.

§ 3 . — Normal pension

73. A normal pension is a retirement pension, payment of which begins at normal retirement age.

Normal retirement age shall not be later than the first day of the month following the month in which the member attains 65 years of age.

1989, c. 38, s. 73.

74. Unless section 76 prescribes the postponement of the normal pension, every active member is entitled to the normal pension on attaining normal retirement age.

1989, c. 38, s. 74.

§ 4 . — Postponed pension

75. A postponed pension is a retirement pension, payment of which begins after normal retirement age.

1989, c. 38, s. 75.

76. The normal pension of a member shall be postponed if, after normal retirement age, he remains employed by the employer by whom he was employed at normal retirement age.

1989, c. 38, s. 76.

77. Every member is entitled, on application, to the payment of all or part of his normal pension during the postponement period but only to the extent necessary to offset any permanent reduction in remuneration that occurred during such period.

However, unless otherwise stipulated in the pension plan, the member may, following an agreement with his employer, receive all or part of his pension, regardless of the limit set by the first paragraph.

No member may exercise this right more than once per twelve-month period, except pursuant to an agreement with the pension committee.

1989, c. 38, s. 77.

78. If contributions are paid during the postponement period, the resulting additional amount of pension shall be of a value equal to or greater than that of the benefits that could be purchased, at the end of the postponement period, with the member contributions paid during such period, including accrued interest.

1989, c. 38, s. 78.

79. Where all or part of a normal pension is postponed, the amount of pension not paid during the postponement period shall be adjusted at the end of the postponement.

The pension plan shall prescribe the adjustment formula.

1989, c. 38, s. 79.

80. Postponement of the normal pension ends

(1)  upon termination of the member’s period of continuous employment with the employer by whom he was employed at normal retirement age;

(2)  when, by reason of the postponement, the plan no longer qualifies as a registered pension plan as defined in section 1 of the Taxation Act (chapter I-3).

1989, c. 38, s. 80; 1991, c. 25, s. 180.

81. Where a normal pension is postponed under this Act or where a pension plan allows a member who is entitled to a pension that has become payable to replace all or part of it, if he decides to postpone it until after normal retirement age, by an adjusted pension, the adjustment shall be made so as to ensure that the pension payable at the end of the postponement is actuarially equivalent to the pension the payment of which would have begun at normal retirement age, had the pension not been postponed.

The actuarially equivalent pension shall be determined on the basis of actuarial assumptions identical to those which were transmitted to the Régie and which, at the date the member attained normal retirement age, were used to determine the value of the pension benefits to which section 60 applies and to which the member is entitled on that date.

1989, c. 38, s. 81.

§ 5 . — Disability pension

82. The value of the pension granted under the pension plan to a member who has become disabled and who, for that reason, had to terminate his employment with an employer who is a party to the plan or cease to be an active member, shall be equal to or greater than the value of the benefits to which the member would have been entitled had he not become disabled, discounted on the date payment of the pension begins.

1989, c. 38, s. 82.

82.1. Notwithstanding section 58, the plan may provide that payment of the disability pension is interrupted when the member ceases to be disabled within the meaning of the plan.

The value of the benefits accumulated by the member in respect of service credited under the plan before payment of the disability pension begins shall not, at the time payment of the pension is interrupted, be less than the amount m calculated according to the following formula:

                           b
                      a x --- = m
                           c

where

“a” represents the value of the benefits accumulated by the member on the date on which payment of the disability pension begins, established regardless of the value of that pension;

“b” represents the value of a pension of $1 paid annually beginning on the date on which payment of the disability pension is interrupted and on each anniversary date thereafter;

“c” represents the value of a pension of $1 paid annually beginning on the date on which payment of the disability pension begins and on each anniversary date thereafter.

Values are established on the date on which payment of the disability pension is interrupted, according to actuarial assumptions and methods identical to those transmitted to the Régie ans used on that date to determine the value of the pension benefits to which section 60 applies.

1994, c. 24, s. 5.

§ 6 . — Additional pension

83. Except in the case of a defined contribution plan, every member whose member contributions, with accrued interest, exceed the limit set by section 60, or who is credited with voluntary additional contributions, is entitled, from the date on which a pension begins to be paid to him under the pension plan, to purchase an additional pension with such excess amount or contributions and accrued interest.

The plan may, however, allow the member to choose between the additional pension purchased with his additional voluntary contributions and any other benefits of equal value determined by the plan.

1989, c. 38, s. 83.

84. The additional pension shall be determined according to actuarial assumptions and methods identical to those which were transmitted to the Régie and which, at the date of determination of the pension, are used to determine the value of other benefits to which section 60 applies and which are vested on that date.

In addition, the additional pension shall have the same characteristics as the normal pension, except the pension supplement provided by the pension plan for the payment of a minimum normal pension.

1989, c. 38, s. 84.

§ 7 . — Survivor benefits

85. For the purposes of this subdivision, the spouse of a member is the person who, on the day of reference defined in the second paragraph,

(1)  is married to the member;

(2)  has been living in a conjugal relationship with an unmarried member, whether the person is of the opposite or the same sex, for a period of not less than three years, or for a period of not less than one year if

 — at least one child is born, or to be born, of their union;

 — they have adopted, jointly, at least one child while living together in a conjugal relationship; or

 — one of them has adopted at least one child who is the child of the other, while living together in a conjugal relationship.

Spousal status is established as of the day payment of the pension of the member begins or as of the day preceding the death of the member, according as the first or the second option is provided in the pension plan, or if none, as of the first of such events.

1989, c. 38, s. 85; 1999, c. 14, s. 26.

86. Where a member dies before receiving any refund or benefit, other than that provided for in section 69.1, his spouse or, if the member does not have a spouse, his successors shall be entitled to receive a lump sum payment equal to or greater than

(1)  the value of any pension to which the member was entitled before his death;

(2)  if the member was not entitled to a pension before his death, the value of the deferred pension to which he would have been entitled had he ceased to be an active member on the day of his death, for a reason other than his death;

(3)  if the member was not entitled to a pension before his death or if, under the circumstances described in subparagraph 2, he would not have been entitled to a pension, to the member contributions and additional voluntary contributions paid by the member, with accrued interest.

Any voluntary additional contribution credited to the account of the member and any member contribution paid in excess of the limit set by section 60, with accrued interest, shall be added to the values referred to in subparagraphs 1 and 2 of the first paragraph. The values shall, in addition, be established without reference to the assumptions as to survival or mortality for the period prior to the first payment of the pension.

This section does not apply if the member’s surviving spouse is, from the death of the member, entitled to a pension the value of which is equal to or greater than the value of the pension benefit provided in the said section.

1989, c. 38, s. 86; 1997, c. 19, s. 8; 1999, c. 40, s. 254.

87. The spouse of a member is entitled to a pension from the death of the member if, before his death, the member was receiving any of the following pensions:

(1)  a pension, under this division or under subparagraph 2 of the first paragraph of section 93;

(2)  a pension the amount of which is adjusted to take into account an amount equal to the benefits determined under the Old Age Security Act (Revised Statutes of Canada, 1985, chapter O-9), the Act respecting the Québec Pension Plan (chapter R-9) or a similar plan within the meaning of paragraph u of section 1 of the latter Act;

(3)  a temporary pension under section 91.1.

The spouse may, before the date on which payment of the member’s pension begins, waive such entitlement or revoke such a waiver, provided the pension committee is notified thereof in writing before that date.

The amount of the spouse’s pension shall be equal to or greater than 60 % of the amount of the member’s pension including, during the period of replacement, the amount of any temporary pension.

The sum of the pension provided for the spouse and the member’s pension, reduced accordingly, shall, on the date payment of the pension begins, be at least actuarially equivalent to the pension the member would have received had it not been for the benefit granted to the spouse by this section.

1989, c. 38, s. 87; 1997, c. 19, s. 9.

88. Where a member whose pension was postponed dies during the postponement period, his spouse shall be entitled to a pension the value of which shall be equal to or greater than the higher of

(1)  the value of the pension the spouse would have been entitled to receive pursuant to section 87 if payment of the postponed pension had begun on the day preceding the death of the member, unless the spouse has waived such pension; and

(2)  the value of the death benefit the spouse would have been entitled to receive pursuant to section 86.

Where only part of the pension has been postponed, the spouse is entitled, in addition to the pension to which he is entitled pursuant to section 87 in respect of the partial pension the member was receiving, to a pension the value of which must be equal to or greater than the higher of the values described in the first paragraph, reduced by multiplying it by the fraction that the part of the postponed pension is of the total pension.

Where the member does not have a spouse, his successors shall be entitled to the pension benefit referred to in section 86, reduced as provided in the second paragraph of this section in the case of partial postponement of the pension.

1989, c. 38, s. 88; 1994, c. 24, s. 6; 1999, c. 40, s. 254.

89. The right of the spouse of a member to benefits under this subdivision is terminated, as the case may be, by separation from bed and board, divorce or annulment of marriage or cessation of conjugal relationship except,

(1)  in the case of the benefit provided for in section 86, where, on the day of the member’s death, the spouse is also the successor of the member;

(2)  in the case of the benefit provided for in section 87 or 88, where, following the dissolution of the marriage, separation from bed and board or cessation of conjugal relationship, partition of the benefits accumulated by the member under the plan was not effected and the member notified the pension committee in writing to make payment of the pension to the spouse despite such dissolution, separation or cessation.

1989, c. 38, s. 89; 1999, c. 40, s. 254.

90. Payment of a pension to a spouse shall not cease by reason of the fact that the spouse has remarried or is living in a conjugal relationship with another person of the opposite or the same sex.

1989, c. 38, s. 90; 1999, c. 14, s. 27.

DIVISION IV OPTIONS

91. Every member or beneficiary who has become entitled to a pension part of which exceeds the maximum benefits payable under the terms of a registered pension plan defined in section 1 of the Taxation Act (chapter I-3) may elect to require that the value of the excess be refunded to him.

1989, c. 38, s. 91; 1991, c. 25, s. 181.

91.1. Every member or spouse who has become entitled to a pension under a pension plan and whose age is 10 years or less under normal retirement age or who has attained or exceeded that age is entitled, under conditions prescribed by regulation, to replace the pension, in whole or in part, before payment begins, by a temporary pension the amount of which is fixed by him before payment begins and which meets the following requirements:

(1)  the annual amount of the pension must not exceed 40 % of the Maximum Pensionable Earnings established pursuant to the Act respecting the Québec Pension Plan (chapter R-9) for the year in which payment of the pension begins, that limit being reduced, where applicable, by the annual amount of any other temporary benefit to which he is entitled under the plan;

(2)  payment of the temporary pension must end on or before the last day of the month following the month in which the member or the spouse attains 65 years of age.

Notwithstanding the second paragraph of section 5, the plan may not contain provisions that are more advantageous than those contained in the first paragraph.

The value of the temporary pension shall be equal to or greater than the value of the pension or of the part of the pension it replaces, discounted on the date of the replacement.

1997, c. 19, s. 10.

92. Every member or spouse who has become entitled to a pension under a pension plan is entitled, under conditions prescribed by regulation, to replace the pension by a life or temporary pension, purchased under a contract, the amount of which may vary each year. The pension may also, in the cases determined by regulation, be replaced by a lump-sum payment.

1989, c. 38, s. 92; 1997, c. 19, s. 11.

93. The pension plan may permit a member or the spouse of a member who has become entitled to a pension to elect, before payment of the pension begins, to replace all or part of the pension

(1)  (subparagraph repealed);

(2)  by a pension the amount of which is adjusted periodically according to an index or at a rate provided in the plan;

(3)  by a pension the amount of which is adjusted by reason of provisions relating to the payment of benefits payable after the death of the member or his spouse, or by reason of amendments to such provisions; unless the spouse consents thereto, the spouse’s pension which results from this election shall not be less than the pension to which he would have been entitled under section 87;

(4)  by a single payment or a series of payments in the event of a physical or mental disability that reduces life expectancy;

(5)  if the value of the pension is less than 4 % of the Maximum Pensionable Earnings established under the Act respecting the Québec Pension Plan in respect of the year in which he became entitled to the pension, by a lump sum payment;

(6)  by other benefits prescribed by regulation.

The replacement value shall be equal to or greater than the value of the replaced pension, discounted at the time of replacement.

No option other than those mentioned in the first paragraph may be permitted by the plan.

1989, c. 38, s. 93; 1997, c. 19, s. 12.

DIVISION V INTEGRATION

94. Where a pension plan provides that, for the purpose of determining the normal pension, all or part of the benefits payable under the public plan established by the Act respecting the Québec Pension Plan (chapter R-9) or the Canada Pension Plan (Revised Statutes of Canada, 1985, chapter C-8) will serve to reduce the member’s benefits, the reduction shall not be greater than the amount m calculated according to the following formula:

                              a
                        r x ---- = m
                             35      

where

“r” represents all or part of the benefit payable under the public plan;

“a” represents the number of years of service credited under the pension plan.

The fraction a/35 shall not be greater than 1.

Only the retirement benefit payable under the public plan may serve for such a reduction.

1989, c. 38, s. 94.

95. The amount of the benefit payable under a public plan that is required to be deducted under a pension plan shall, if necessary, be established on the basis of an estimation from the time the member becomes entitled to a pension under the plan.

If, under the plan, the deferred pension is determined with reference to the remuneration paid to the member after he became entitled to a deferred pension, the amount shall be established at a date not subsequent to the date of the last remuneration included in the calculation.

Moreover, where the amount is an estimation, it shall be based on data that are compatible with those used for the determination of the benefits paid under the public plan at the date of estimation.

1989, c. 38, s. 95.

96. In no case may benefits derived from an amendment to a public plan referred to in section 94 be taken into account for the determination of a benefit accrued under the pension plan if that results in a reduction of the benefits of the member, except

(1)  where the member applies therefor, provided the resulting benefit is of an equal or greater value;

(2)  where the pension plan is amended to take into account the new benefits derived from the public plan, provided only the pension benefits accrued in respect of service credited after the amendment are reduced;

(3)  where the benefit accrued under the pension plan is not determined on the basis of the normal pension, or where the value of the benefit exceeds the value of the deferred pension, provided the plan is amended to provide for the reduction of the benefit or excess value and only the benefits the payment of which begins after the amendment are reduced.

1989, c. 38, s. 96.

97. The normal pension determined with reference to a benefit payable under the terms of a public plan referred to in section 94 shall not be reduced again to take into account an amendment to the public plan or an increase of the benefit.

The same rule applies in respect of any other benefit determined with reference to the benefit payable under the terms of a social security program established by law.

1989, c. 38, s. 97.

CHAPTER VII TRANSFERS OF BENEFITS AND ASSETS

98. Every plan member is entitled, subject to the conditions and time limits set out in this chapter, to transfer to such pension plan as he indicates

(1)  the member contributions paid by him into the plan, if he is not entitled to the payment of a pension benefit, and the additional voluntary contributions credited to his account, with accrued interest;

(2)  the amount corresponding to the value of any pension benefit, including a benefit guaranteed by an insurer, to which the member is entitled but of which payment has not begun. Such value must be equal to or greater than,

(a)  where the transfer is applied for within the time limit set out in subparagraph 1 of the second paragraph of section 99, the value of the member’s pension benefit determined pursuant to section 61;

(b)  where the transfer is applied for within the time limit set out in subparagraph 2 or 3 of the second paragraph of section 99, the value of the member’s pension benefit determined with reference to related benefits and according to actuarial assumptions and methods identical to those which were transmitted to the Régie and which are used, on the day the transfer is applied for, to determine the value of other pension benefits to which section 60 applies and which are vested on that date;

(3)  the member contributions which exceed the limit set by section 60, with accrued interest;

(4)  the amounts previously transferred, with accrued interest, or the amount corresponding to the value of the pension purchased with the transferred amounts. That value shall be determined according to actuarial assumptions and methods identical to those which were transmitted to the Régie and which are used, on the date the transfer is applied for, to determine the value of other pension benefits to which section 60 applies and which are vested on that date.

Interest calculated, until the date of transfer, at the rate used to determine the pension benefit to which the member is entitled or, where such values have been determined on the basis of an insurance proposal, at the monthly rate of return on personal five-year term deposits with chartered banks, as compiled by the Bank of Canada, shall be added to the values referred to in paragraphs a and b of subparagraph 2 and in subparagraph 4 of the first paragraph.

For the purposes of this section, the expression “pension plan” includes, in addition to the pension plans governed by this Act, any pension plan or annuity contract prescribed by regulation.

1989, c. 38, s. 98.

99. The right to a transfer under section 98 may be exercised only by a member who is at least ten years under the normal retirement age set by the plan. Such a right shall not be exercised where the member who, if he terminated his period of continuous employment, would be entitled to an early retirement pension that would be equal to or greater than the normal pension, is prohibited under the plan from transferring his benefits to another pension plan.

Moreover, this right may be exercised only within one of the following time limits:

(1)  within 180 days from the date on which a member ceased to be an active member;

(2)  subsequently and not later than the date provided for in paragraph 3, every five years, within 180 days from the date of expiry of every fifth year;

(3)  within 180 days from the date on which a member who ceased to be an active member attains an age which is ten years under normal retirement age.

The age restriction in respect of the member and the prohibition referred to in the first paragraph, and the time limit fixed in subparagraph 3 of the second paragraph do not apply to the transfer of amounts from a defined contribution plan or to the transfer of contributions paid under terms in a defined benefit plan that are identical to those of a defined contribution plan.

1989, c. 38, s. 99.

100. Every amount that a member is entitled to transfer may, if it is less than 10 % of the Maximum Pensionable Earnings established under the Act respecting the Québec Pension Plan (chapter R-9) for the year in which he becomes entitled thereto, be transferred by the pension committee to a pension plan referred to in section 98 and chosen by the member or, if not, by the committee.

The pension committee shall not, however, transfer any such amount if it has been used to purchase a pension the payment of which has begun.

1989, c. 38, s. 100.

101. The conditions set out in sections 142 to 146 for the payment of the benefits of members and beneficiaries apply to the payment of transferred amounts.

1989, c. 38, s. 101.

102. Except in the case of a benefit referred to in section 69.1, options provided for in sections 91 to 93 or of amounts referred to in subparagraph 1 of the first paragraph of section 98, no amount transferred shall be paid to the member otherwise than in the form of a life pension.

Moreover, payment of the life pension shall not commence prior to the member’s full or partial retirement unless the member has become disabled.

1989, c. 38, s. 102; 1997, c. 19, s. 13.

103. Unless the pension plan sets a higher rate of interest, and subject to the provisions of section 45.1, any amount transferred bears interest, from the date of the transfer and until a pension is purchased with such amount, at the rate prescribed by section 44 or 45 if the amount is transferred to a pension plan governed by this Act.

1989, c. 38, s. 103; 1992, c. 60, s. 12.

104. Every member is entitled, from the day he retires, to purchase a pension with any amount referred to in subparagraph 1 of the first paragraph of section 98 that has been transferred.

1989, c. 38, s. 104.

105. The amount of the pension paid under a pension plan governed by this Act and purchased with transferred amounts shall be determined according to actuarial assumptions and methods identical to those which were transmitted to the Régie and which, at the date of determination of the pension, are used to determine the value of other pension benefits to which section 60 applies and which are vested on that date.

The pension shall have the same characteristics as the normal pension, except the pension supplement provided by the plan for the payment of a minimum normal pension.

1989, c. 38, s. 105.

106. Where the transfer is made at the request of a member who availed himself of a general agreement prescribing the conditions of transfer, between pension plans, of benefits or assets in respect of a given group of members, the benefits attributed to the member following the transfer shall be equal to or greater than the benefits which, determined according to actuarial assumptions and methods identical to those which were transmitted to the Régie and which, at the date of the transfer, are used to determine the value of other pension benefits to which section 60 applies and which are vested on that date, would have resulted from the transfer to a plan not governed by this Act of the assets related to the benefits that the member had accumulated before the transfer.

A copy of every general agreement referred to in the first paragraph shall be transmitted to the Régie within thirty days after the day it is entered into.

1989, c. 38, s. 106.

CHAPTER VIII TRANSFER OF BENEFITS BETWEEN SPOUSES

107. In the event of separation from bed and board, divorce or annulment of marriage, the benefits accumulated by a member under a plan shall, upon application in writing to the pension committee, be partitioned between the member and his spouse to the extent provided in the Civil Code or by a court judgment.

Where the court awards to the spouse of a member, in payment for a compensatory allowance, benefits accumulated by the member under a pension plan, the benefits shall, upon application in writing to the pension committee, be transferred to the spouse to the extent provided by the court judgment.

1989, c. 38, s. 107.

108. Upon presentation of an application for separation from bed and board, divorce, annulment of marriage or payment of a compensatory allowance, the member and his spouse are entitled, upon application in writing to the pension committee, to obtain a statement of the benefits accumulated by the member under the plan and the value thereof at the date of the institution of the action; the statement shall also contain any other information prescribed by regulation. The benefits and the value thereof shall be determined according to the rules fixed by regulation.

The spouse may thereupon examine the text of the pension plan and the documents referred to in section 114, on the conditions provided therein.

1989, c. 38, s. 108.

109. Except as provided by regulation, the benefits awarded to the spouse following partition of the benefits of the member or as payment for a compensatory allowance can only be used for the purchase of a life pension, whether or not the benefits have been transferred to a pension plan contemplated in section 98.

1989, c. 38, s. 109.

110. In the event of cessation of conjugal relationship between a spouse, within the meaning of subparagraph 2 of the first paragraph of section 85, and a member of the plan, the member and spouse may, within six months, agree in writing to a partition of the benefits accumulated by the member under the pension plan; such an agreement cannot, however, confer on the spouse more than 50 % of the value of such benefits.

For that purpose, the member and the spouse shall be entitled to obtain, upon application in writing to the pension committee, the statement described in section 108 and established at the date on which they ceased to live together in a conjugal relationship.

Section 109 applies to benefits conferred on the spouse pursuant to an agreement referred to above. In addition, the last paragraph of article 553 of the Code of Civil Procedure (chapter C-25), adapted as required, applies to the partition of benefits agreed upon between the spouses for the purposes of this section.

1989, c. 38, s. 110.

110.1. The cost of producing the statement referred to in section 108 and the expenses incurred for effecting the transfer of benefits between spouses may be claimed from the spouses only up to the limit fixed by the Minister, after consultation with the Régie, and published in the Gazette officielle du Québec. The limit may vary according to the type of plan.

The costs and expenses claimed from the spouses shall be divided equally between them, unless they decide to opt for another form of apportionment. Payment of the amount that must be borne by each spouse may be effected by the pension committee through a reduction of the value of the spouse’s benefits, unless that spouse chooses another method of payment.

1994, c. 24, s. 7.

CHAPTER IX INFORMATION TO MEMBERS

111. The pension committee shall provide to each member or employee eligible for membership a written summary of the pension plan, together with a brief description of the member’s rights and obligations under the plan and this Act. In the case of an amendment to the plan, such documents shall be provided to the members only and may consist only of the amended terms together with a brief description of the rights and obligations arising from the amendment.

The documents shall be provided within 90 days following

(1)  the date on which the employee becomes eligible for membership under the plan or becomes a member; or

(2)  the date of registration of the pension plan or of the amendment.

In the case of an amendment to the plan that does not affect the members’ benefits, the documents need only be provided along with the annual statement.

The employer shall transmit, in writing, to the pension committee such information concerning employees eligible for membership as is necessary for the purposes of this section.

1989, c. 38, s. 111.

112. The pension committee shall transmit to each member, along with the notice of meeting provided for in section 166, an annual statement setting out the information prescribed by regulation, with respect to, in particular,

(1)  the benefits accumulated by him during the last fiscal year ended, and from the date he became a member of the plan to the end of that year;

(2)  the financial position of the pension plan.

1989, c. 38, s. 112.

112.1. The pension committee shall, within 60 days of the payment of the benefit referred to in section 69.1, provide the member with a statement containing the information determined by regulation and concerning, in particular, the effect of the payment on the annual amount of normal pension resulting from the service credited to him.

1997, c. 19, s. 13.

113. Within 60 days after the date on which the pension committee is informed that a member has ceased to be an active member, it shall provide to the member, or to any other person entitled to a refund or pension benefit, a statement setting out the information prescribed by regulation and specifying, as of the date of the event giving entitlement thereto, the amount of the refund or the nature and value of the benefit, and the nature of and the requirements for entitlement to other benefits provided under the plan. If the pension committee has determined the value of the member’s pension benefits on the basis of an insurance proposal as permitted by the second paragraph of section 61, it shall accompany the statement with a notice informing the member that the insurance proposal may be examined at the office of the pension committee within 180 days after the date he ceases to be an active member.

In addition, within 60 days of a written request therefor, the pension committee shall, without charge, provide the member with the aforementioned statement, updated on the basis of the most recent data available; the updating shall include a new determination of the value of the member’s benefits only where the member may exercise the right of transfer provided for in section 98.

Moreover, within 30 days of a written request therefor, the pension committee shall, without charge, provide the member with the data used to prepare the statement or to update it, in particular the data used to calculate the benefits to which he is entitled.

1989, c. 38, s. 113.

114. Within 30 days of a written request therefor, the pension committee shall permit an employee eligible for membership or a member or beneficiary to examine, without charge, during usual working hours, the text of the pension plan or any other document prescribed by regulation. The pension committee shall, subject to the same conditions, permit a member or beneficiary to examine the terms of the plan as they stood on any date included in the period during which the employee concerned was an active member.

The examination shall take place at the place where the plan is administered; however, where the employer has one or several establishments located within 150 km of an active member’s place of employment, the member may examine the terms of the plan at that establishment or, where the employer has more than one establishment, at the establishment designated by the pension committee.

Where a copy of a document for which an examination request was made is sent without charge, within 30 days of the request, to the person who made the request, the pension committee is dispensed from the obligation to permit examination of the document.

1989, c. 38, s. 114.

115. The pension committee is not required to provide documents without charge to any one person more than once within a period of 12 months.

The same applies in respect of requests for the examination of documents.

1989, c. 38, s. 115.

CHAPTER X FUNDING AND SOLVENCY

DIVISION I GENERAL PROVISIONS

116. This chapter does not apply to insured pension plans.

Moreover, this chapter does not apply to defined contribution pension plans in which the employer’s financial obligations are limited to the share of the current service contribution, with interest, if any, that he is required to pay as service is credited to the members under the plan.

1989, c. 38, s. 116.

117. For the purposes of this chapter, a defined benefit-defined contribution plan shall be considered to be a defined benefit plan.

1989, c. 38, s. 117.

118. Every pension plan shall be the subject of an actuarial valuation

(1)  at the date on which it becomes effective;

(2)  at the date on which an amendment to the plan having an impact on funding or solvency becomes effective;

(3)  not later than at the date of the end of the last fiscal year of the plan occurring within three years after the date of the last actuarial valuation of the entire plan;

(4)  whenever so required by the Régie, at the date fixed by the Régie.

1989, c. 38, s. 118.

119. The pension committee shall cause a report of every actuarial valuation of the pension plan to be prepared by an actuary. The report shall contain, in addition to the information prescribed by regulation, a declaration by the actuary attesting, in particular, that the plan is in conformity with the funding and solvency standards prescribed by this Act.

Unless the Régie grants an extension, the pension committee shall transmit the report to the Régie within six months after the end of the fiscal year of the plan or after the date fixed by the Régie, according as the report pertains to an actuarial valuation required under paragraph 3 or under paragraph 4 of section 118.

1989, c. 38, s. 119.

DIVISION II FUNDING

§ 1 . — Funding requirements

120. A plan is funded if, at the date of the actuarial valuation, the value of its assets is equal to or greater than the value at that date of the obligations arising from the plan in respect of service credited to the members.

1989, c. 38, s. 120.

121. Every pension plan must be fully funded at the date of each actuarial valuation.

A plan may, however, be partially funded at that date, provided the amount to be funded to ensure that the plan is fully funded constitutes an unfunded actuarial liability within the meaning of this Act or an amount determined pursuant to subparagraph 4 of the second paragraph of section 137.

1989, c. 38, s. 121.

122. The funding method used for an actuarial valuation shall be consistent with generally accepted actuarial principles and shall assume perpetual existence of the pension plan.

The actuarial assumptions and methods used in verifying the funding of a plan shall be appropriate, in particular, for the type of plan concerned and in view of its obligations and the position of the pension fund.

1989, c. 38, s. 122.

123. In addition to the other elements prescribed by regulation, an actuarial valuation shall determine

(1)  the current service contribution, expressed in currency or as a rate or percentage of the remuneration of active members estimated in the valuation, for each fiscal year of the pension plan between the date of that valuation and the date of the next actuarial valuation required under paragraph 3 of section 118;

(2)  the value of the assets of the pension plan and of the obligations arising from the plan in respect of service credited to the members to the date of valuation.

1989, c. 38, s. 123.

124. The current service contribution must be equal to or greater than the value of the obligations arising from the pension plan in respect of credited service completed during each of the years referred to in paragraph 1 of section 123. Such contribution may, however, be less if it is determined on the basis of a funding method which maintains the plan fully or partially funded at all times.

1989, c. 38, s. 124.

125. The value of the obligations referred to in section 123 or 124, which, under the plan, are to increase according, in particular, to the progression of the members’ remuneration, shall include the estimated amount of the obligations when they become payable, assuming that contingencies based on actuarial assumptions as to survival, morbidity, mortality, employee turnover, eligibility for benefits or other factors will occur.

Furthermore, any pension benefit increase provided by the plan which becomes effective after the benefits begin to be paid shall be taken into account in determining the value of the plan’s obligations.

1989, c. 38, s. 125.

§ 2 . — Unfunded actuarial liabilities

126. Unfunded actuarial liabilities include, for the purposes of this Act,

(1)  the initial unfunded actuarial liability, representing the amount to be funded to ensure that the plan is fully funded at the date on which it becomes effective;

(2)  any improvement unfunded actuarial liability, representing the amount to be funded as a result of an amendment to the plan which, when added to the balances of the other unfunded liabilities and the amount determined pursuant to subparagraph 4 of the second paragraph of section 137, would ensure that the plan is fully funded at the date on which the amendment becomes effective;

(3)  any technical actuarial deficiency, representing the amount to be funded to ensure that the plan is fully funded, and that is neither the balance of an initial or improvement actuarial unfunded liability, nor an unpaid contribution, nor the balance of an amount determined pursuant to subparagraph 4 of the second paragraph of section 137 or of a technical actuarial deficiency determined by a previous actuarial valuation.

1989, c. 38, s. 126.

127. An improvement unfunded actuarial liability may be considered to be an initial unfunded actuarial liability if the amendment from which it arises provides only for the crediting of service in respect of a period prior to the effective date of the plan or, in the case of a multi-employer plan, even a plan not considered to be a multi-employer plan pursuant to section 11, in respect of a period prior to the date of coming into force of an amendment to provide for the participation of a new employer. In the latter case, however, the unfunded liability must pertain only to the crediting of service to members who were employed by the new employer.

1989, c. 38, s. 127; 1994, c. 24, s. 8.

128. Every report relating to an actuarial valuation shall identify each unfunded actuarial liability and indicate how it is to be amortized, except in the case of a technical actuarial deficiency, if the method used for the valuation makes no reference to such a deficiency.

1989, c. 38, s. 128.

129. Every unfunded actuarial liability shall be amortized by dividing it into as many amounts as there are fiscal years or parts of a fiscal year of the pension plan included in the amortization period.

The amortization amounts shall, for each unfunded actuarial liability to which they apply, be clearly identified in the actuarial valuation.

The amortization period for any unfunded actuarial liability shall not exceed 15 years and shall run from the date of determination of the unfunded liability.

1989, c. 38, s. 129.

130. An improvement unfunded actuarial liability may be determined without performing an actuarial valuation of the whole plan.

In that case, the unfunded liability shall be equal to the value of the additional obligations arising from an amendment to the plan; such value shall be determined on the basis of the same assumptions and methods as those used for the preceding actuarial valuation.

The period of amortization of such an unfunded liability shall not exceed five years, unless an actuary certifies that the plan is solvent or partially solvent.

1989, c. 38, s. 130.

131. The amortization amounts shall, for each fiscal year or part of a fiscal year of the pension plan included in the amortization period, be established according to either a flat percentage of the estimated remuneration of the members who, on the date of determination of the unfunded actuarial liability, are active members, or a flat amount.

The annual rate of increase of such remuneration shall not exceed

(1)  the rate of increase of the remuneration used for the purposes of the actuarial valuation where the valuation requires the use of such rate in view of the type of plan concerned;

(2)  a rate compatible with the interest and inflation rates used for the purposes of the actuarial valuation where the valuation does not, in view of the type of plan concerned, require the use of a rate of increase of the remuneration.

1989, c. 38, s. 131.

132. The amortization amounts to be paid for each fiscal year or part of a fiscal year of the pension plan included in the amortization period shall be fixed at the date on which the unfunded actuarial liability is determined.

Amortization amounts shall not be reduced in the course of the amortization period, except in the cases provided for in section 133, 134 or 140.

1989, c. 38, s. 132.

133. Amortization amounts paid during a fiscal year of the pension plan may exceed the amounts fixed at the date on which the unfunded actuarial liability is determined, provided the excess amount is used to reduce, in the following order, the amounts remaining to be paid in connection with:

(1)  any amount determined pursuant to subparagraph 3 or 4 of the second paragraph of section 137;

(2)  any technical actuarial deficiency;

(3)  any initial unfunded actuarial liability;

(4)  any improvement unfunded actuarial liability.

Where there are several unfunded liabilities of the same nature, the reduction shall operate from the earliest to the most recent.

1989, c. 38, s. 133.

134. Where, at the date of an actuarial valuation, the amortization amounts to be paid exceed the amount to be funded to ensure that the plan is fully funded at that date, the amortization amounts to be paid in connection with one or several unfunded actuarial liabilities or with an amount determined pursuant to subparagraph 3 of the second paragraph of section 137 may be reduced, by such excess amount, which may, in no case, be used for any other purpose. The reduction shall first be applied to the amounts of amortization payable after the fifth year following the date of the actuarial valuation and subsequently to the amounts of amortization payable until the end of the fifth year; in addition, the reduction must be made proportionately and in the order prescribed by section 133.

However, where the degree of solvency of a pension plan is less than 100 %, no reduction authorized by the first paragraph may be made that would cause an amount payable to be determined pursuant to subparagraph 4 of the second paragraph of section 137 or to be higher than it would have been without the reduction.

1989, c. 38, s. 134; 1994, c. 24, s. 9.

135. In a defined benefit-defined contribution pension plan, where, by reason of variances between the estimated data and the actual data, in particular, as to the number of active members or of hours of employment, the amounts actually paid to amortize an unfunded actuarial liability are less than the amortization amounts fixed at the time of determination of the unfunded liability, the pension committee shall transmit to the Régie the corrective measures proposed by the actuary for the purpose of amortizing the unfunded liability within the period initially fixed.

1989, c. 38, s. 135.

§ 3 . — Special provisions applicable to certain pension plans in the municipal sector

1998, c. 2, s. 40.

135.1. This subdivision applies in respect of the following pension plans:

(1)  the Régime de retraite des cadres de la Ville de Montréal, registered under number 27542;

(2)  the Régime de retraite des contremaîtres de la Ville de Montréal, registered under number 27693;

(3)  the Régime de retraite des employés manuels de la Ville de Montréal, registered under number 27494;

(4)  the Régime de retraite des fonctionnaires de la Ville de Montréal, registered under number 27543;

(5)  the Régime de retraite des pompiers de la Ville de Montréal, registered under number 22503;

(6)  the Régime de retraite des professionnels de la Ville de Montréal, registered under number 28739.

1998, c. 2, s. 40.

135.2. The provisions of section 133 do not apply to a pension plan subject to this subdivision except as required for the purposes of section 134.

The reduction authorized under section 134 does not apply to the amortization of an initial unfunded actuarial liability or improvement unfunded actuarial liability affecting such a plan.

The reductions authorized under section 134 in relation to the other amounts and unfunded actuarial liabilities to which it applies are, in the case of such a plan, mandatory.

1998, c. 2, s. 40.

135.3. Notwithstanding section 132, the amortization amounts payable in respect of any initial unfunded actuarial liability or any improvement unfunded actuarial liability may be reduced only to the extent provided for in section 135.4.

Moreover, the amortization amounts payable in respect of any initial unfunded actuarial liability which affects a pension plan subject to this subdivision and for which the amortization period originally fixed by law exceeds 15 years may be increased only to the extent required by section 135.5.

However, no reduction in amortization amounts authorized by this section may be made that would cause an amount payable to be determined pursuant to subparagraph 4 of the second paragraph of section 137 or to be higher than it would have been without the reduction.

1998, c. 2, s. 40.

135.4. If a balance of the surplus amount referred to in the first paragraph of section 134 remains after the reductions made mandatory pursuant to section 135.2, all or part of the surplus may be utilized to reduce proportionately each of the amortization amounts remaining to be paid to amortize one or more unfunded actuarial liabilities referred to in section 135.3 or to shorten the amortization period of such unfunded actuarial liabilities, without, in the latter case, increasing the amounts remaining to be paid. In the case of a plan referred to in paragraphs 2 to 6 of section 135.1, such a utilization may be authorized only if the city and the employees’ associations representing the majority of the members of the plan agree thereto in writing. A copy of every agreement must be transmitted to the Régie together with the report on the actuarial valuation outlining the result of the agreement.

1998, c. 2, s. 40.

135.5. Any report of the actuarial valuation of a pension plan subject to this subdivision must include a projection of the level of the pension fund for a period of at least 15 years, without extending beyond the amortization period of an unfunded actuarial liability referred to in the second paragraph of section 135.3. The Régie may fix all the conditions that it considers appropriate for the determination of the actuarial assumptions and methods to be used for that purpose.

Where such a projection indicates that the assets will become inadequate in the course of that period to pay as required the refunds and pension benefits provided by the plan, the actuary shall include, in his or her report, a recommendation concerning corrective measures, including increases, that must be taken in respect of the amortization amounts to ensure that the assets are adequate at all times during that period. The recommendation must be approved by the Régie; if approved, the recommendation is binding on the administrator of the plan and on the parties. If the recommendation is not approved, the Régie may order any remedial measure it determines.

1998, c. 2, s. 40.

DIVISION III SOLVENCY

136. A pension plan is solvent if its assets are equal to or greater than its liabilities.

1989, c. 38, s. 136.

137. Every pension plan must be solvent at the date of each actuarial valuation.

A plan may, however, be partly solvent provided the amount to be funded to ensure the solvency of the plan is offset by the value, at the date of the actuarial valuation, of

(1)  the amounts required to amortize any initial unfunded actuarial liability;

(2)  the amounts required to amortize any other unfunded liability over a period of five years after that date;

(3)  the remaining amounts required to amortize an amount determined pursuant to subparagraph 4 at the time of a previous actuarial valuation;

(4)  the difference between the assets, plus the amounts referred to in subparagraphs 1 to 3, and the liabilities.

The interest rate used to determine the value of the amounts referred to in the second paragraph shall be identical to the rate used to determine the liabilities of the plan for the purpose of determining the plan’s solvency.

1989, c. 38, s. 137.

138. For the purpose of determining the solvency of a pension plan at the date of the actuarial valuation, the assets of the plan shall be determined according to their market value at that date or, if such value is not determinable, according to the liquidation value or an estimate thereof.

The liabilities of the pension plan shall be equal to the value of the obligations arising from the plan, assuming that the plan is totally terminated on that date.

The method used to evaluate the assets and liabilities shall provide for the stabilization of short-term fluctuations in the value used to determine the assets or in the interest rate used to determine the liabilities.

1989, c. 38, s. 138.

139. The liabilities of a pension plan under which refunds or benefits are guaranteed by an insurer shall, for the purpose of determining the plan’s solvency, include the value corresponding to those benefits, and the plan’s assets shall include an amount equal to such value.

1989, c. 38, s. 139.

140. Any amount determined pursuant to subparagraph 4 of the second paragraph of section 137 shall be paid into the pension fund by the employer within five years after the date of the actuarial valuation.

The last paragraph of section 39, sections 41 and 128, the first and second paragraphs of section 129 and section 132, adapted as required, apply to the determination or payment, as the case may be, of such amount. Unless the pension plan sets a higher interest rate, any amount so determined and not paid into the pension fund bears interest, from the date of default, at the rate prescribed by section 44 or 45.

Such amount may be used to reduce proportionately and in accordance with section 133 the amortization amounts which, five years after the date of the actuarial valuation, remain to be paid in respect of any technical actuarial deficiency or improvement unfunded actuarial liability.

1989, c. 38, s. 140.

141. The degree of solvency of a pension plan is the proportion, expressed as a percentage, that the value of the assets of the plan is of the value of its liabilities.

1989, c. 38, s. 141.

DIVISION IV CONDITIONS GOVERNING THE PAYMENT OF BENEFITS

142. The value of any benefit to which a member or beneficiary becomes entitled under a pension plan having a degree of solvency of less than 100 % as established in the last actuarial valuation may be paid out of the pension fund only in proportion to the degree of solvency of the plan as established in such valuation.

This section shall not be construed to prevent the payment of a benefit under section 69.1 or the periodic payment of any pension that has become payable.

1989, c. 38, s. 142; 1997, c. 19, s. 15.

143. The actuary responsible for preparing the report relating to an actuarial valuation of the pension plan shall determine in his report whether the payment of the benefits that are transferable under an agreement referred to in section 106 may, as a consequence, reduce the degree of solvency of the plan or, where that degree exceeds 100%, reduce it to a percentage lower than 100%.

In that case, the payment of benefits is permitted only in the proportion fixed by the actuary to avoid such consequence.

1989, c. 38, s. 143.

144. The value of the benefits which, pursuant to section 142 or 143, cannot be paid may be paid up to 5% of the Maximum Pensionable Earnings established under the Act respecting the Québec Pension Plan (chapter R-9) for the year during which the payment is to be made; the total amounts so paid since the last actuarial valuation to ascertain the solvency of the pension plan shall not, however, exceed 5% of the assets determined at the time of the actuarial valuation.

1989, c. 38, s. 144.

145. Notwithstanding the limits set under sections 142 to 144, the value of the benefits paid shall be equal to or greater than the aggregate of the contributions paid by the member concerned and the amounts credited to his account following a transfer under section 98 or 100, with accrued interest.

1989, c. 38, s. 145.

146. The balance of the value of the benefits which, under the terms of sections 142 to 145, cannot be paid must be funded and paid within five years after the date of the initial payment or not later than on the date the member concerned attains normal retirement age if he attains that age before the expiry of the five-year period.

1989, c. 38, s. 146.

CHAPTER XI ADMINISTRATION OF A PENSION PLAN

DIVISION I ADMINISTRATION

147. Every pension plan shall, from its registration, be administered by a pension committee composed of at least

(1)  two plan members designated on the conditions and within the time limits set out in the plan or, if so decided by the plan members at the meeting held pursuant to section 166,

 — one member designated by the active members and one member designated by the non-active members; or

 — one member designated by either group of plan members and one member designated on the conditions and within the time limits set out in the plan;

(2)  one member designated on the conditions and within the time limits set out in the plan who is neither a party to the plan or a third person to whom a prohibition as to the granting of loans under section 176 applies.

1989, c. 38, s. 147.

148. The term of office of a member of a pension committee shall not exceed three years.

A member of the committee, whose term of office has expired, shall remain in office until he is reappointed or replaced.

1989, c. 38, s. 148.

149. Until its registration, a pension plan which is effective and for which a pension committee has yet to be formed shall be administered by the employer.

The employer shall, for the administration of the pension plan, have the powers, obligations and liability of a pension committee.

1989, c. 38, s. 149.

150. Except in the case of an insured plan, the pension committee shall act in the capacity of a trustee.

1989, c. 38, s. 150.

151. The pension committee shall exercise the prudence, diligence and skill that a reasonable person would exercise in similar circumstances; it must also act with honesty and loyalty in the best interest of the members or beneficiaries.

The members of the pension committee shall use in the administration of the pension plan all relevant knowledge or skill that they possess or, by reason of their profession or business, ought to possess.

1989, c. 38, s. 151.

152. Subject to such limitations or prohibitions as may be set out in the pension plan, the pension committee may delegate all or part of its powers or be represented by a third person for a specific act.

To such extent as is permitted by the instrument of delegation, the person or body to whom or which the pension committee has delegated powers may subdelegate all or part of such powers.

1989, c. 38, s. 152.

153. The person or body exercising delegated powers shall assume the same obligations and incur the same liability as those the pension committee or one of its members would have had to assume or have incurred if the powers had been exercised by the pension committee.

1989, c. 38, s. 153.

154. The pension committee is accountable for the person to whom it has delegated powers if, among other things, it was not authorized to do so; if it was so authorized, it is accountable only for the care with which it selected the delegatee and gave him instructions.

1989, c. 38, s. 154; 1994, c. 24, s. 11.

155. The pension committee shall, within 30 days after the date on which the member designated by the plan members takes office, reexamine the delegations of powers to determine those that are to be maintained and those that are to be revoked.

The revocation of a delegation carries with it the revocation of every subdelegation made by the delegatee, if any.

1989, c. 38, s. 155.

156. Every member of the pension committee is presumed to have approved any decision made by the other members. He shall be solidarily liable therefor with the other members unless he expresses his dissent without delay.

He is also presumed to have approved any decision made in his absence unless he makes his dissent known to the other members, in writing, within a reasonable time after becoming aware of the decision.

1989, c. 38, s. 156; 1999, c. 40, s. 254.

Not in force

156.1. In the cases provided for by regulation, and for the amounts and on the conditions prescribed therein, the pension committee must furnish a guarantee securing the pension fund against losses which may result from theft or embezzlement and a guarantee covering the liability, except that which derives from the failure to act with honesty and loyalty, that may be incurred by a member of the pension committee or the person to whom the committee has delegated a power or given a mandate by reason of his functions.

1993, c. 45, s. 2.

157. The assets of the plan may not serve to secure any obligations other than those of the plan. Only an immovable hypothec may encumber a plan’s assets and only to the extent determined by regulation or authorized pursuant to section 247.1.

Except in the case of a hypothecary loan which shall not exceed the value of the hypothecated immovable after deducting other outstanding hypothecary loans encumbering the immovable, if any, the pension committee shall not borrow except for the payment of refunds, benefits or administration costs of the pension plan. The total outstanding borrowings, excluding hypothecary loans, shall not exceed, in a fiscal year of the plan, twice the amount of the current service contribution.

1989, c. 38, s. 157; 1994, c. 24, s. 12.

158. No member of a pension committee may exercise his powers in his own interest or in the interest of a third person nor may he place himself in a situation of conflict between his personal interest and the duties of his office.

If the committee member is himself a member or a beneficiary of the plan, he shall exercise his powers in the common interest, considering his own interest to be the same as that of the other members or beneficiaries of the plan.

1989, c. 38, s. 158.

159. Every member of a pension committee shall, without delay, notify the committee in writing of any interest he has in an enterprise that is susceptible of causing his personal interest to conflict with the duties of his office, and of any rights, other than those arising from the plan, he may have in or may invoke against the pension fund, specifying, where such is the case, the nature and value of the rights.

The pension committee shall keep at its office a register in which every interest or right notified to it pursuant to the first paragraph shall be recorded. Any interested person may examine the register without charge during usual working hours, and the limit set out in section 115 does not apply to such an examination.

1989, c. 38, s. 159.

160. Unless otherwise stipulated, the fiscal year of a pension plan ends on 31 December each year; the fiscal year shall not exceed or include less than 12 months unless authorized by the Régie.

1989, c. 38, s. 160.

161. The pension committee shall, within six months after the end of each fiscal year of the pension plan, transmit to the Régie an annual statement containing the information prescribed by regulation and accompanied with the prescribed attestations, certificates and documents.

It shall cause to be prepared, within the same time limit, a financial report containing a statement of the plan’s assets and a statement of revenues and expenditures for the fiscal year just ended. The report must be audited by an accountant, except in the cases prescribed by regulation.

1989, c. 38, s. 161; 1994, c. 24, s. 13.

161.1. The accountant shall submit reports to the pension committee in accordance with the mandate assigned to him.

The accountant shall also report to the pension committee any situation or operation, noted in the normal course of his mandate, which might adversely affect the financial interests of the pension fund and requires a correction.

If the pension committee fails to take corrective measures without delay with regard to the situation or operation reported, the accountant shall send a copy of his report to the Régie.

1994, c. 24, s. 14.

161.2. No accountant incurs any civil liability for making, in good faith, a report under the second paragraph of section 161.1.

1994, c. 24, s. 14.

162. Unless otherwise stipulated, the members of the pension committee are not entitled to any remuneration and the administration costs shall be borne by the pension fund.

1989, c. 38, s. 162.

163. Every refund or payment of pension benefits made by the pension committee shall constitute a full discharge where the committee has grounds to believe, on the basis of the information at its disposal, that the persons to whom they are made are the persons who are entitled thereto and the refunds or payments are, in other respects, in conformity with the law and the terms of the plan.

Such discharge is valid only with respect to the sums actually paid, or the value thereof.

1989, c. 38, s. 163.

164. Where several persons claim the same benefit under a pension plan, the pension committee may be fully discharged by depositing the amount due with the General Deposit Office of Québec or with a trust company which is, in that case, required to fulfil the obligations prescribed by the second paragraph of article 189.1 of the Code of Civil Procedure (chapter C-25), which applies adapted as required.

1989, c. 38, s. 164.

165. The pension committee shall transmit to the Régie the name and last-known address of every untraceable member or beneficiary who is entitled to a refund or to the payment of pension benefits or other amounts due to him following the total or partial termination of a pension plan.

If the Régie is able, with the information at its disposal, to locate the member or beneficiary, it shall notify him to communicate with the pension committee at the address indicated.

1989, c. 38, s. 165.

165.1. As soon as it is informed thereof, the pension committee shall notify the Régie in writing of any effective or proposed reduction in the number of active members due to changes of a technological or economic nature in the enterprise of an employer who is a party to the plan, or to the division, merger, alienation or closing down of the enterprise.

1992, c. 60, s. 13.

166. Within six months after the end of each fiscal year of the plan, or within any additional period which may be granted by the Régie, the pension committee shall, by a written notice, call each member and the employer to a meeting held to

 — inform them of the amendments made to the plan, the indications recorded in the register kept under section 159 and the financial position of the plan;

 — enable each group of active members and non-active members, to decide whether or not it will designate a member to the pension committee and, if it so decides, to proceed with the designation either in the manner proposed by the committee, or, if none is proposed or if the group refuses the manner proposed, in the manner, decided by the group, which allows to proceed with the designation at that meeting. Any decision relating to a matter mentioned above shall be made by a majority of the votes cast by the members of each group.

The subjects determined by regulation must, in addition, appear on the agenda of the meeting.

The pension committee shall, in addition, render an account of its administration at that meeting.

1989, c. 38, s. 166; 1994, c. 24, s. 15.

167. If a member of the pension committee designated by the plan members pursuant to section 166 is absent or unable to act or if a seat on the committee is vacant, the pension committee shall designate a plan member to replace the member until the next meeting held pursuant to the said section.

1989, c. 38, s. 167; 1999, c. 40, s. 254.

DIVISION II INVESTMENTS

168. Only the pension committee, the person or body to whom or which that power has been delegated or, if the pension plan so provides, the members of the plan may decide how the assets of the plan are to be invested.

Investments shall be made according to law and investments selected by the pension committee or the delegatee shall, in addition, be made in conformity with the investment policy.

1989, c. 38, s. 168.

169. The pension committee shall establish and adopt a written investment policy, giving particular consideration to the type of pension plan, its characteristics and its financial obligations.

1989, c. 38, s. 169.

170. Unless the Régie authorizes, on the conditions it fixes, that the investment policy be simplified, the policy must set out

(1)  the expected rate of return;

(2)  the degree of risk involved in the investment portfolio, particularly as regards price fluctuations;

(3)  liquidity requirements;

(4)  the proportion of assets that may be invested in debt securities and equity securities, respectively;

(5)  the permitted categories and sub-categories of investments;

(6)  investment portfolio diversification measures conducive to an overall reduction of the degree of risk;

(7)  rules and a time schedule applicable to the valuation of the investment portfolio and to the monitoring of the management of the investment portfolio and those applicable to the review of the investment policy.

Unless they are already set out in the plan, the policy must also include

(1)  rules regarding the solvency of borrowers and the security required for granting loans out of the assets, in particular the lending of securities and hypothecary loans;

(2)  rules applicable to the exercise of the voting rights attached to the securities forming part of the assets;

(3)  the basis for the valuation of investments that are not traded on an organized market;

(4)  rules applicable to the use of futures contracts, options, share purchase warrants or share rights or other financial instruments;

(5)  rules regarding the loans that may be raised by the pension committee.

1989, c. 38, s. 170.

171. All deposits and investments of the assets of the pension fund must be made in the name of the pension fund or for its account.

1989, c. 38, s. 171.

172. In no case may a proportion of the assets of the pension plan greater than 10 % of their total book value be invested directly or indirectly

(1)  in any one property;

(2)  in one or more loans to any one natural person;

(3)  in any form whatever, in any one legal person or in any one body or group of persons or properties without juridical personality, such as an association, a partnership or a trust.

Any group of closed companies within the meaning of the Securities Act (chapter V-1.1), made up either of subsidiaries of the same parent company or of a parent company and its subsidiaries, constitutes one and the same group for the purposes of subparagraph 3 of the first paragraph.

1989, c. 38, s. 172.

173. The 10 % limit does not apply

(1)  securities issued or guaranteed by the Gouvernement du Québec, the Government of Canada or the government of a Canadian province;

(2)  units of an unincorporated mutual fund or shares in a mutual fund provided that the investments made by the fund are in conformity with this Act and, where the fund is neither a fund governed by Titles II to VIII of the Securities Act (chapter V-1.1) nor a fund all the securities of which are issued in the name of pension funds, provided that its operating rules are comparable to those prescribed under the Securities Act;

(3)  sums deposited, under the terms of a management contract, with an insurer authorized to carry on insurance business in Québec or elsewhere in Canada where an agreement under section 249 is applicable, subject to the following conditions:

(a)  under the contract, the insurer guarantees the capital and a minimum rate of interest and the criteria applicable to the calculation of the maximum premium payable for the purchase of a pension are specified in the contract;

(b)  in the case of a defined contribution plan, the insurer binds himself directly toward each member and any member to whom sums in excess of the coverage provided by the Canadian Life and Health Insurance Compensation Corporation are attributed has the right to transfer all or any part of the excess amount to such pension plan as he chooses among those referred to in the third paragraph of section 98;

(4)  deposits with a financial institution that are insured by the Régie de l’assurance-dépôts du Québec or any equivalent body in Canada, but only up to the insured amount.

The right to a transfer under subparagraph b of subparagraph 3 of the first paragraph may be exercised for the first time by applying therefor within 180 days after transmission of the first statement under the first paragraph of section 112 showing that the sums attributed to the member exceed the coverage referred to in the said subparagraph, and every three years thereafter, within 180 days after the expiry of the third year. The sums transferred must be equal to or greater than the value at maturity of the investment made with that part of the excess amount the member is applying to have transferred, unless the transfer is made before the date of maturity at the member’s request, in which case the sums transferred may be equal only to the market value of the investment. Transfers shall be made free of charge unless a transfer charge, which may in no case exceed the charge for the transfer of the benefits of a member who ceases to be an active member, is stipulated in the contract.

1989, c. 38, s. 173; 1994, c. 24, s. 16.

174. Except in the case of securities traded on an organized market, the assets of the pension plan shall not be invested in securities issued by a legal person to whom a loan out of such assets is prohibited under sections 176 and 177.

1989, c. 38, s. 174.

175. The assets of a pension plan shall not be invested, directly or indirectly, in shares carrying more than 30% of the voting rights attached to the shares of a legal person.

The 30% limit does not apply to the shares of a legal person referred to in paragraph c.1, c.2 or c.3 of section 998 of the Taxation Act (chapter I-3).

1989, c. 38, s. 175.

176. No loan out of the assets of the pension plan may be granted

(1)  to a member of a pension committee, a delegatee or, where that member or delegatee is a legal person or group without juridical personality, to the directors, officers or employees of the legal person or group;

(2)  to an employees’ association representing members or to its directors, officers or employees;

(3)  to the spouse or child of any person referred to in paragraph 1 or 2;

(4)  where the employer is a legal person and administers all or part of the plan,

(a)  to a shareholder, associate or member who holds directly or indirectly more than 10% of the capital stock of the legal person or to his spouse or child;

(b)  to a shareholder, associate or member or to his spouse or child if, together, they hold directly or indirectly more than 10% of the capital stock of the legal person;

(5)  where the employer administers all or part of the plan, to any legal person more than 10% of the capital stock of which is directly or indirectly held by the employer;

(6)  to a legal person, other than the employer, more than 10% of the capital stock of which is held by a person referred to in paragraph 1, 2, 3 or 4;

(7)  to a legal person, other than the employer, more than 50% of the capital stock of which is held by a group composed exclusively of persons referred to in paragraph 1, 2 or 4, of the employer where he administers all or part of the plan, or of the spouse or child of any of them;

(8)  to a legal person, other than the employer, controlled by a person referred to in paragraph 1, 2, 3 or 4, or by the employer where he administers all or part of the plan, or by a group composed exclusively of such persons.

1989, c. 38, s. 176.

177. Despite section 176, a loan secured in the manner prescribed by regulation may be granted

(1)  to a member or to the spouse or child of a member;

(2)  to the employer;

(3)  to a parent company and a subsidiary provided that one of the companies is the employer and that the total loans granted to them do not exceed 10% of the total book value of the assets of the pension plan.

1989, c. 38, s. 177.

178. For the purposes of sections 176 and 177, spouses are persons married to each other or persons of opposite sex or the same sex who have been living in a conjugal relationship for a period of not less than three years, or for a period of not less than one year if

 — at least one child is born, or to be born, of their union;

 — they have adopted, jointly, at least one child while living in a conjugal relationship; or

 — one of them has adopted at least one child who is the child of the other, while living in a conjugal relationship.

For the purposes of the same sections, a natural or legal person is deemed to hold the shares held, directly or indirectly, by a legal person controlled by such natural or legal person. A person who holds, directly or indirectly, otherwise than as security, securities entitling him to elect in all cases a majority of the directors of a legal person controls that legal person.

1989, c. 38, s. 178; 1999, c. 14, s. 28.

179. If, as a result of an unforeseen or uncontrollable event, the assets of the pension plan cease to be invested according to law, the pension committee shall, within a reasonable time after it has knowledge of the event, take every step necessary to regularize the situation.

1989, c. 38, s. 179.

180. Every person who makes an investment otherwise than according to law is, by that sole fact and without further proof of wrongdoing, liable for any resulting loss.

The members of a pension committee who approved such an investment are, by that sole fact and without further proof of wrongdoing, solidarily liable for any resulting loss.

However, such persons incur no liability under this section if they acted within their powers and on the recommendation of persons whose profession gives credence to their opinion.

1989, c. 38, s. 180.

181. Any investment made in contravention of the law may be annulled by judicial action on the application of the Régie or any interested person.

The court may order any person who is liable under section 180 to pay to the pension fund an amount equal to the resulting loss or to the sums so invested.

1989, c. 38, s. 181.

182. No fee, commission or other benefit in respect of any transaction relating to the investment of the assets of the pension plan may be paid or granted

(1)  to the members of a pension committee, to a delegatee or to the spouse or children of any of them;

(2)  to the employer, to the employer’s employees responsible for the administration of all or part of the plan, or, where the employer is a legal person, to the directors or officers of the legal person;

(3)  to the persons or groups referred to in section 176.

The first paragraph does not apply, however, to a person or group referred to therein if such benefit is ordinarily granted to him or it in the performance of his or its duties and if it corresponds to what is usually granted in respect of such a transaction.

1989, c. 38, s. 182.

DIVISION III PROVISIONAL ADMINISTRATION

183. The Régie may, for the period it fixes, assume the administration of all or part of a pension plan or entrust it to the person or body it designates in any of the following cases:

(1)  where the Régie or the investigator it has designated is making an inquiry into the plan’s conformity with the law or into its administration;

(2)  where, in the opinion of the Régie, the plan or the administration thereof is not in conformity with this Act;

(3)  where, in the opinion of the Régie, the pension committee, a member of that committee, a delegatee or, where the member or delegatee is a legal person or a group without juridical personality, any of its directors has committed a malversation, a breach of trust or other form of misconduct;

(4)  where the Régie becomes aware that the pension committee or a person to whom it has delegated powers has failed to comply with an order issued by the Régie.

1989, c. 38, s. 183; 2000, c. 41, s. 104.

184. Before deciding to assume the provisional administration, the Régie shall give the pension committee and, where such is the case, the person or body whose administration or conduct is questioned an opportunity to present observations. However, in cases of emergency, the Régie may make its decision before giving them such an opportunity, provided it does so within 15 days of the decision.

1989, c. 38, s. 184; 1997, c. 43, s. 651.

185. The Régie shall transmit its decision to the pension committee and, where such is the case, the person or body whose administration or conduct is questioned and to the employer. It shall also, where the decision contemplates the provisional administration of the whole pension plan, transmit it to the members or, in the case of a plan established under a collective agreement or an arbitration award in lieu thereof, to the employees’ association representing the members.

1989, c. 38, s. 185.

186. The provisional administrator shall, to the extent set out in the decision of the Régie, exercise the powers of the pension committee; the committee, or the person or body to whom or which such powers have been delegated, becomes, to the same extent, disqualified from exercising such powers.

The provisional administrator shall have the same obligations and liability as the pension committee.

1989, c. 38, s. 186.

187. After having decided to assume the provisional administration on any of the grounds set out in subparagraph 2 or 3 of the first paragraph of section 183 and having given the person or body whose administration or conduct is questioned an opportunity to present observations, the Régie may dismiss that person or body and disqualify him or it from exercising such functions for a period of five years. In that case, the Régie may, on the conditions and in the manner it determines, see to the replacement of the dismissed person or body.

Section 185 applies to every decision of the Régie made under this section.

1989, c. 38, s. 187; 1997, c. 43, s. 652.

188. The Régie, where it assumes the provisional administration of all or part of the pension plan, or the provisional administrator designated by it may amend the plan to bring it into conformity with the law or to protect the rights of members or beneficiaries.

Before amending the plan, the Régie shall give the employer and the members or, in the case of a plan established under a collective agreement or an arbitration award in lieu thereof, every employees’ association representing members an opportunity to present observations. The Régie shall register every amendment made under this section.

Where the designated provisional administrator proposes to amend the pension plan, he shall, before amending the plan, transmit the notice provided for in section 26 to the pension committee, to the employer and to the members and, in the case of a plan established under a collective agreement or an arbitration award in lieu thereof, to every employees’ association representing members. In that case, the Régie may, in addition to the grounds set out in section 28, refuse to register the amendment applied for if it is of the opinion that the amendment is not in the interest of the members or beneficiaries.

1989, c. 38, s. 188; 1997, c. 43, s. 653.

189. Every amendment to the plan whether it is made by the Régie or by the designated provisional administrator shall become effective on the date it is registered and shall be binding on the employer and members.

1989, c. 38, s. 189.

190. The Régie, where it assumes the provisional administration of all or part of the pension plan or, with the approval of the Régie, the designated provisional administrator may terminate the plan in accordance with Chapter XIII, which applies adapted as required.

Notice of the termination shall be given to the pension committee, the employer, the members affected thereby and, in the case of a plan established under a collective agreement or an arbitration award in lieu thereof, to every employees’ association representing members. The notice shall indicate whether the termination is total or partial, the date on which it is to become effective and the members affected by the termination.

1989, c. 38, s. 190.

191. The Régie shall determine the remuneration and the allowances and indemnities, if any, to be paid to the designated provisional administrator.

The Régie is entitled to the reimbursement of expenses it has incurred for the provisional administration or for lending any of its officers to the designated provisional administrator.

1989, c. 38, s. 191.

192. At the request of the Régie, the designated provisional administrator shall make an inventory.

In addition, the designated provisional administrator shall, on the conditions and in the manner determined by the Régie, take out liability insurance or give any other security to guarantee his administration.

1989, c. 38, s. 192.

193. Without prejudice to the right to claim reimbursement before the court, the expenses relating to the provisional administration shall be borne by the pension fund unless the Régie elects to assume them.

1989, c. 38, s. 193.

CHAPTER XII DIVISION AND MERGER

194. Any division of the assets and liabilities of a pension plan among several plans or any merger of all or part of the assets and liabilities of several pension plans into a single plan, in particular where an employer sells, assigns or otherwise disposes of his enterprise, is subject to the authorization of the Régie and to such conditions as it may prescribe.

1989, c. 38, s. 194.

195. The Régie shall not authorize a division of the assets and liabilities of a pension plan unless the value of the assets to be transferred is equal to the value of the assets which, assuming that the plan were terminated in part on the effective date of the proposed division, would have been allocated, pursuant to subdivision 3 of Division II of Chapter XIII, to the group of benefits attributable to the members or beneficiaries affected by the termination.

The Régie may not authorize such a division except where the plan into which a portion of the assets to be divided is to be transferred includes provisions which, in respect of the allocation of any surplus assets in case of termination, are identical in their effects to the provisions of the plan from which such assets are transferred. In verifying whether the effects are identical as required by this paragraph, only the terms in force when the application for authorization is made shall be considered.

Moreover, where, in the hypothetical situation described in the first paragraph, the value of the allocated assets is not sufficient to pay all the benefits of the affected members or beneficiaries and where a new employer will be required, after the division, to assume responsibility for the obligations related to such benefits, the authorization of the Régie may be made conditional to mandatory payment into the pension fund by the employer then responsible for those obligations of an amount to form part of the assets to be transferred, equal to the amount to be funded to ensure full payment of such benefits.

1989, c. 38, s. 195; 1992, c. 60, s. 14.

196. The Régie shall not authorize the merger of all or part of the assets and liabilities of several plans unless all the plans include terms which, in relation to the allocation of surplus assets determined upon termination, have identical effects. In verifying whether the effects are identical, only the terms in force when the application for authorization is made shall be considered.

However, where the effects of the terms are not identical, the merger may still be authorized if all the members and beneficiaries of the absorbed plan who are affected by the merger are informed of the effects thereof — in particular those effects which result from the application of the last paragraph — and if less than 30 % of them are opposed to the merger. The provisions of sections 230.4 to 230.6 apply, with the necessary modifications, in respect of the procedure to be followed to inform and consult the said members and beneficiaries.

Moreover, if the proposed merger is to affect all the members or beneficiaries of the plans concerned, the Régie shall not grant its authorization unless all of the assets of every plan concerned are merged. If that is not the case, the authorization shall be granted only on the condition that the assets to be merged from any plan only part of the members or beneficiaries of which are affected be determined, as far as their benefits are concerned, in accordance with the provisions of section 195, which apply with the necessary modifications.

Where a merger is authorized in the conditions provided for in the second paragraph, only the terms of the absorbing plan will, for matters concerning the allocation of surplus assets in case of termination of the plan, apply to the members and beneficiaries to whom that paragraph applies.

1989, c. 38, s. 196; 1992, c. 60, s. 15.

197. Service credited to members under a pension plan involved in a division or a merger must be taken into account for the vesting of benefits under the pension plan into which assets have been transferred as a result of the division or merger.

For the purposes of section 34, any remuneration received or, as the case may be, any number of hours of employment completed before the division or merger must also be taken into account.

1989, c. 38, s. 197.

CHAPTER XIII WINDING-UP OF A PLAN

DIVISION I TERMINATION

198. Except if termination is prevented by an agreement and except in the case of a pension plan imposed by an order or decree which does not authorize termination, an employer may terminate, in whole or in part, the plan to which he is a party by means of a written notice of termination to the affected members or, in the case of a plan established under a collective agreement or an arbitration award in lieu thereof, to the employees’ association representing the members, to the pension committee, to the Régie and, where applicable, to the insurer.

The notice shall indicate whether the termination is total or partial, the members who are affected and the date on which the termination is to become effective; the date shall not precede the date on which member contributions ceased to be collected or, in the case of a non-contributory plan, the date on which the notice was given to the affected members.

In the case of a multi-employer pension plan, the notice of termination shall have effect only with respect to the employer who issues the notice and the affected members.

1989, c. 38, s. 198.

199. On receipt of a notice of termination, the Régie may either confirm the decision of the employer or, if the circumstances so justify, decide that the plan is not terminated, change the total or partial character of the termination indicated in the notice, reduce or increase the number of members affected or fix a different termination date.

The Régie may also terminate a pension plan in whole or in part where an employer who has not transmitted a notice of termination fails to collect member contributions or to pay into the pension fund or to the insurer his employer contributions or the member contributions he has collected, or where there is a decrease in the number of active members.

However, before amending the notice of termination or terminating the plan in whole or in part, the Régie shall give the pension committee an opportunity to present observations.

1989, c. 38, s. 199; 1997, c. 43, s. 654.

199.1. Where several partial terminations have occurred in respect of the same pension plan, or where, in a given period and on different dates, several events have occurred which could each result in a partial termination of the plan, those terminations or events may, for the purposes of this chapter, be considered to be or to relate to one and the same partial termination if, in the opinion of the Régie, they are based on similar circumstances, such as those mentioned in section 165.1.

1992, c. 60, s. 16.

200. Every decision of the Régie relating to a notice of termination or terminating a pension plan shall indicate whether the termination is total or partial, the members who are affected and the date on which the termination is to become effective; in the case of a contributory plan, the effective date shall not be prior to the date on which member contributions ceased to be collected.

Where it relates to the partial termination of a plan, the decision of the Régie may indicate that the members who subsequently cease to be active shall also be affected by the termination, to the extent that the terminations in question are based on similar circumstances, such as those mentioned in section 165.1.

1989, c. 38, s. 200; 1992, c. 60, s. 17.

201. Every decision of the Régie amending a notice of termination or terminating a pension plan shall be communicated to the pension committee, which shall forthwith transmit it to every member affected, or, in the case of a plan established under a collective agreement or an arbitration award in lieu thereof, to the employees’ association representing the members, to the employer and, where applicable, to the insurer.

1989, c. 38, s. 201.

202. Within 60 days after the date of receipt of a decision of the Régie relating to a notice of termination or terminating a pension plan or within such extension of time as may be granted by the Régie, the pension committee shall cause a draft termination report to be prepared, for approval by the Régie, establishing, in particular, the benefits of each member or beneficiary affected and the value of such benefits, and containing the information prescribed by regulation. In addition, where the provisions of subdivision 4.1 of Division II of Chapter XIII must be applied in order to determine to whom the surplus assets are to be allocated, the draft report shall mention, in respect of that surplus, only the amount thereof. The draft report shall be prepared by an actuary. In the case of a defined contribution plan, it may be prepared by an accountant and, in the case of an insured plan, by the insurer.

The pension committee shall also, within the same time limit, obtain the opinion of the Régie as to the conformity of the draft report with this Act. If applicable, the Régie shall send a notice of conformity to the pension committee.

1989, c. 38, s. 202; 1992, c. 60, s. 18.

203. Within 60 days after receipt of the notice of conformity, the pension committee shall transmit to each member or beneficiary affected a statement setting out his benefits and their value as established in the draft termination report, accompanied with the following information:

(1)  the methods of payment of the benefits, including the pension plan to which the member or beneficiary may, if he so elects, transfer such benefits, the options he may exercise and the time limits applicable;

(2)  the surplus assets, if any, determined in the termination report and the person entitled thereto; however, this information is not required where the provisions of subdivision 4.1 of Division II of Chapter XIII must be applied in order to determine the person entitled thereto;

(3)  a note to the effect that the draft termination report along with the data used to establish his benefits or their value and to determine the surplus assets may, within 30 days and without charge, be examined either at the office of the pension committee or, where the employer has one or several establishments located within 150 km of an active member’s place of employment, at that establishment or the establishment designated by the committee, if there are more than one;

(4)  a note to the effect that the member or beneficiary may, within 30 days, present observations in writing to the pension committee, with a copy thereof to the Régie;

(5)  any other information prescribed by regulation.

The pension committee is also required, within the same time limit, to send a copy of the draft termination report to the employer and, where applicable, to the insurer and to the employees’ association representing the members concerned, and to inform them that they may, within 30 days, present observations in writing to the committee, with a copy thereof to the Régie.

1989, c. 38, s. 203; 1992, c. 60, s. 19; 1997, c. 43, s. 655.

204. In the event of total termination of a pension plan, or partial termination affecting all members whose rights are governed by this Act, or if the Régie so orders, the pension committee shall also, within 30 days after transmission of the statements referred to in section 203, cause to be published in a newspaper circulated in the region in Québec where the greatest number of active members reside, a notice inviting any person who has not received the statement provided for in section 203 and who believes that he is entitled to benefits under the plan or under this Act, to assert his rights with the committee or the Régie within 30 days after the publication.

In the case of a multi-employer pension plan, even a plan not considered as such pursuant to section 11, the notice shall be published for each employer that is a party to the plan in the region in Québec where the greatest number of members employed by that employer reside.

1989, c. 38, s. 204; 1992, c. 60, s. 20.

205. The pension committee shall, within 30 days after the expiration of the period granted to members or beneficiaries to assert their rights or present observations, or within such extension of time, of not more than 60 days, as may be granted by the Régie, file with the Régie an application for approval of the draft termination report for which the notice of conformity was issued.

The application shall set out the date on which the statements of benefits of members or beneficiaries were sent or, if the statements were sent on different dates, the date of the last statement sent, the date of publication of the notice prescribed by section 204, the newspaper in which it appeared and, where applicable, the amendments made to the draft report.

1989, c. 38, s. 205; 1992, c. 60, s. 21; 1997, c. 43, s. 656.

205.1. Each time the provisions of subdivision 4.1 of Division II of Chapter XIII are applied to determine to whom the surplus assets are to be allocated, the pension committee shall, within 60 days after the making of an agreement, the transmission of a declaration or the date on which an arbitration award becomes executory, present to the Régie, for approval, a supplement to the draft termination report setting out the final allocation of the surplus and the share, if any, due to each of the members and beneficiaries.

1992, c. 60, s. 22.

206. Before approving a draft termination report or a supplement thereto providing for the payment of surplus assets to the employer or to the members or beneficiaries affected, the Régie shall verify that the designated recipient is the person entitled thereto and that the determination of such surplus assets and payment thereof are, in other respects, in conformity with the law.

1989, c. 38, s. 206; 1992, c. 60, s. 23.

207. The decision of the Régie ruling on the application for approval of the draft termination report or a supplement thereto shall be communicated to the pension committee, which shall forthwith inform, in writing, the employer, the insurer and the employees’ association representing the members concerned, where applicable, and every member or beneficiary affected. If approval is given, the committee shall, in the same manner, notify every affected member or beneficiary of

 — the manner in which his benefits will be paid;

 — the statement of his benefits, or their value, as established in the approved draft report or supplement thereto, where the benefits or value differ from those established in the statement sent to him pursuant to section 203.

1989, c. 38, s. 207; 1992, c. 60, s. 24.

207.1. A pension plan which has been totally terminated may not be amended after the date of termination, except to allow any increase in benefits which may result from a written instrument to which allocation of surplus assets is subject, in particular an agreement or an arbitration award referred to in section 230.1.

This provision shall not prevent the Régie from registering after that date an amendment to the plan made before that date.

1992, c. 60, s. 25.

DIVISION II PAYMENT OF THE BENEFITS OF MEMBERS OR BENEFICIARIES

§ 1 . — Scope

208. (Repealed).

1989, c. 38, s. 208; 1992, c. 60, s. 26.

209. Sections 215, 216 and 218 do not apply to the payment of the benefits of members or beneficiaries affected by the total or partial termination of a pension plan if, on the date of termination, the degree of solvency of the plan is equal to or greater than 100 %.

1989, c. 38, s. 209.

§ 2 . — Calculation of benefits and order of priority for their payment

210. At the expiry of a period of 60 days following the decision of the Régie approving the termination report or supplement thereto, or prior to the expiration of such period if all interested persons agree thereto, the pension committee or the insurer, as the case may be, shall pay the benefits of the employer and of the members or beneficiaries affected by the total or partial termination of a pension plan, in accordance with the report or supplement thereto and the provisions of this Act.

The pension committee or the insurer may, however, at any time if the plan is solvent and with the authorization of the Régie if the plan is not solvent, pay a pension in payment at the date of termination of the pension plan or a pension the first instalment of which becomes payable after that date. Where the amount of pension benefits paid exceeds the benefits allocated to the recipient in the termination report for the period covered by the pension benefits, the recipient shall repay the overpayment; otherwise, the overpayment may be deducted from the benefits that remain to be paid to him.

1989, c. 38, s. 210; 1992, c. 60, s. 27.

211. Every member affected by the partial termination of a pension plan and every member affected by the total termination of a plan who was still active on the date of termination is entitled, in respect of the service credited to him under the plan to the date of termination, to the value of the normal pension, including benefits ancillary to any pension to which he would have been entitled if he had retired on the day preceding the date of terminaison.

The same right is granted to every member affected by the total termination of the plan who ceased to be an active member during any period prior to the date of termination that is determined by the Régie, in circumstances which, in the opinion of the Régie, are similar to those mentioned in section 165.1. The decision of the Régie regarding the notice of termination of the plan or terminating the plan must specify the period so determined and the non-active members to whom the right is granted.

The amount of the pension shall, where the pension plan provides that it is to be calculated according to the progression of various factors, such as the member’s remuneration, be determined so as to take the progression into account until a date not prior to the date of termination.

However, if the member ceased to be a member before the termination date, and the plan provides that in that case such factors cease their progression on the date of termination of membership or on any later date set by the plan, the amount of the pension shall be determined so as to take the factors into account until the date on which the factors cease their progression.

1989, c. 38, s. 211; 1994, c. 24, s. 17.

212. The value of the benefits of members or beneficiaries affected by the termination of a pension plan shall be determined in accordance with actuarial assumptions and methods identical to those which were sent to the Régie and which, on either of the following dates, were used to determine the value of the pension benefits to which section 60 applies and to which the members or beneficiaries were entitled on that date:

(1)  on the date on which the member ceased to be an active member in case of partial termination of the plan or, in case of total termination, if the benefits whose value is to be determined are the benefits of the following members or beneficiaries:

(a)  a member who ceased to be an active member prior to total termination and who, on the date of such termination, had already elected for payment of his benefits within the time limits set out in subparagraph 1 of the second paragraph of section 99 or in section 236, or who was still within the time limit to exercise such an election, and the beneficiaries whose benefits derive from service credited to such a member;

(b)  a member to whom the second paragraph of section 211 applies;

(2)  on the date of termination, if the benefits whose value is to be determined are the benefits of any other member or beneficiary affected by the total termination of the plan.

The first paragraph does not apply to a pension that must be guaranteed by an insurer pursuant to section 237.

1989, c. 38, s. 212; 1994, c. 24, s. 18.

213. (Replaced).

1989, c. 38, s. 213; 1992, c. 60, s. 28; 1994, c. 24, s. 18.

214. For the purposes of this subdivision, the date of cessation of contribution payments is, depending on the first event leading to total or partial termination of a pension plan, the date on which the employer fails to pay into the pension fund or to the insurer, as the case may be, either his employer contributions or the member contributions collected by him.

1989, c. 38, s. 214.

215. Any benefit derived from an obligation arising from the pension plan and causing an initial unfunded liability not fully amortized at the date of cessation of contribution payments shall be reduced for payment purposes if, at that date, the value of n in the following formula is greater than zero:

                        p - (c - a) = n

where

“p” represents the value established in accordance with section 211, of such unpaid benefit at the date of cessation of contribution payments;

“c” represents the initial value of the unfunded liability, discounted at the date of cessation of contribution payments and reduced by the value of the benefits already paid at that date;

“a” represents the value, discounted at the date of cessation of contribution payments, of the payments which, if the plan had not been terminated, would remain payable to amortize that portion of the unfunded liability which relates to the unpaid benefits at that date.

Values c and a shall be determined using the same interest rate as that used to determine the amortization amounts relating to the unfunded liability, taking into account the amortization period covered by each of the values.

The reduction is obtained by multiplying the amount of each such benefit by the following fraction, which shall not be greater than 1:

                        p - (c - a)
                       -------------
                             p

1989, c. 38, s. 215.

216. Any benefit, other than a benefit referred to in section 215, derived from obligations arising from an amendment to the pension plan related to service completed in a period preceeding the effective date of the amendment shall, for payment purposes, be reduced

(1)  by 100 %, if the period from the effective date of the amendment to the date of cessation of conbribution payments is less than one year or if the effective date of the amendment is subsequent to the date of cessation of contribution payments;

(2)  by 80 %, if the period is one year or more, but less than two years;

(3)  by 60 %, if the period is two years or more, but less than three years;

(4)  by 40 %, if the period is three years or more, but less than four years;

(5)  by 20 %, if the period is four years or more, but less than five years.

Where the amendment is related to service completed in a period subsequent to the termination date of the plan, the reduction of benefits deriving therefrom shall operate according to the same rules.

However, no benefit derived from an amendment to the plan causing an improvement unfunded actuarial liability that is considered to be an initial unfunded actuarial liability under this Act may be reduced under this section.

1989, c. 38, s. 216; 1992, c. 60, s. 29.

217. Except in the case of a share of the surplus assets, any amount due to a member or beneficiary which, pursuant to the pension plan and the provisions of this Act, must be paid following the total or partial termination of the plan shall bear interest, from the date of termination to the date of payment, either at the rate used to determine the value of his benefits or, where that value has been determined on the basis of an insurance proposal, at the monthly rate of return on personal five-year term deposits with chartered banks, as compiled by the Bank of Canada. Where the amount due is due under a defined contribution plan, or where it is due under provisions of the plan which relate to additional voluntary contributions or under provisions which, in a defined benefit plan, are identical to those of a defined contribution plan, the rate of interest shall be the rate mentioned in section 44 or 45 and which is applicable to the contributions paid under the plan.

1989, c. 38, s. 217; 1992, c. 60, s. 30.

218. The benefits of the members or beneficiaries affected by the total or partial termination of a pension plan shall be paid in the following order:

(1)  the amounts representing the following values, paid concurrently:

(a)  the value of benefits, other than the benefits referred to in subparagraph 6 of this paragraph, accumulated in respect of service completed before the date of cessation of contribution payments;

(b)  the value of member contributions paid into the pension fund or to the insurer, from the date of cessation of contribution payments to the date of termination of the plan;

(c)  the value of additional voluntary contributions paid into the pension fund or to the insurer to the date of termination of the plan;

(d)  the value of amounts received by the plan following a transfer under section 98 or 100;

(2)  the amount representing the value of any reduction of benefits pursuant to section 215;

(3)  the amount representing the value of any reduction of benefits pursuant to section 216;

(4)  the interest on the aforementioned amounts;

(5)  the amounts representing the following values, with interest, paid in that order:

(a)  the value of member contributions or additional voluntary contributions received by the employer from the date of cessation of contribution payments to the date of termination of the plan and not paid into the pension fund or to the insurer;

(b)  the value of unpaid benefits accumulated in respect of service completed from the date of cessation of contribution payments to the date of termination of the plan;

(6)  the value of the benefits payable to members under the terms of the plan granting them an indemnity in case of cessation of their continuous employment due to changes of a technological or economic nature in the enterprise of the employer who is a party to the plan, or to the division, merger, alienation or closing down of the enterprise.

The aforementioned values shall be discounted at the date of termination of the plan.

1989, c. 38, s. 218; 1992, c. 60, s. 31.

§ 3 . — Distribution of the assets

219. (Repealed).

1989, c. 38, s. 219; 1992, c. 60, s. 32.

220. The assets of any pension plan that is partially terminated or of a multi-employer pension plan that is totally terminated shall be distributed among the groups of benefits constituted pursuant to this subdivision, according to the value of the benefits in each group and the order of payment established by this Act.

The assets of a multi-employer pension plan that is terminated in whole or in part shall, for the purpose of such distribution, be increased by the amount representing the contributions that any employer who is a party to the plan has, at the date of termination, failed to pay into the pension fund or to the insurer.

1989, c. 38, s. 220.

221. The benefits of the members or beneficiaries not affected by the partial termination of the pension plan shall be determined at the date of termination, in accordance with sections 211 to 216.

1989, c. 38, s. 221.

222. In the event of partial termination of a pension plan, the benefits accumulated under the plan by the members or beneficiaries shall be divided into two groups, one of which shall consist of the benefits of the persons affected by the termination.

Where more than one employer is involved in the partial termination of a multi-employer pension plan, the group of benefits of the members or beneficiaries affected by the termination shall be distributed in accordance with section 223.

1989, c. 38, s. 222.

223. In the event of total termination of a multi-employer plan, the benefits accumulated under the plan by the members or beneficiaries shall be divided into as many groups as there are employers, each group consisting of the benefits accumulated by members in respect of employment with the employer to whom the group of benefits pertains.

1989, c. 38, s. 223.

224. Where a member has been employed by more than one participating employer of a multi-employer pension plan that is totally or partially terminated, the benefits accumulated under the plan by that member shall be included in the group of benefits pertaining to the last employer by whom he was employed while he was an active member.

However, the first paragraph does not apply if the plan provides that, in such a case, the benefits accumulated by the member in respect of his employment with one of the employers shall be included in the group of benefits pertaining to that employer.

1989, c. 38, s. 224.

225. In the event of partial termination of a multi-employer pension plan, the benefits of members or beneficiaries which remained unpaid after a previous partial termination of the plan shall, if they have not been paid pursuant to section 234 or 235 or transferred pursuant to section 236, constitute a separate group of benefits.

1989, c. 38, s. 225.

226. If, after the assets have been distributed, a surplus remains, the surplus shall be so distributed among the groups of benefits constituted pursuant to this subdivision as to ensure that the obligations arising from the plan from which the benefits in each group derive maintain a funding level proportional to that which they would have had if the plan had not been terminated.

The funding level is determined without reference to the value of the obligations arising from the plan with respect to any portion of an initial or improvement unfunded actuarial liability remaining to be paid at the date of termination.

1989, c. 38, s. 226.

227. Any contribution which, at the date of total or partial termination of the pension plan, an employer who is a party to a multi-employer plan has failed to pay into the pension fund or to the insurer, as the case may be, must be deducted from that portion of the assets which is allocated to the group of benefits pertaining to that employer.

1989, c. 38, s. 227.

§ 4 . — Debts of the employer

228. The amount to be funded to ensure full payment of the benefits of the members or beneficiaries affected by the total termination of a pension plan or partial termination of a multi-employer plan due to the withdrawal of an employer who was a party to the plan shall constitute a debt of the employer.

The amount to be funded to ensure full payment of the benefits of the members or beneficiaries affected by the partial termination of a plan not exempt from the provisions of sections 220 to 227, except a partial termination to which the first paragraph applies, shall be paid by the employer into the pension fund as though it were an amount determined pursuant to subparagraph 4 of the second paragraph of section 137, subject to the first paragraph of section 229 as to spreading the payment.

If, at the date of termination, the employer has failed to pay contributions into the pension fund or to the insurer, as the case may be, the debt shall be the amount by which the amount to be funded exceeds such contributions.

In the case of a multi-employer plan, this section applies to every employer who is a party to the plan and to whom a group of benefits under subdivision 3 consisting of the benefits of the members or beneficiaries affected by the termination pertains.

1989, c. 38, s. 228; 1992, c. 60, s. 33.

229. Any amount owed by an employer under section 228 must, upon its determination, be paid into the pension fund or to the insurer, as the case may be. However, the Régie may, on the conditions it determines, allow any employer to spread the payment of such amount over a period of not more than five years.

Any amount not paid into the pension fund or to the insurer shall bear interest from the date of default, at the monthly rate of return on personal five-year term deposits with chartered banks, as compiled by the Bank of Canada.

1989, c. 38, s. 229.

230. Any amount paid by an employer under this subdivision shall be applied to the payment of benefits of members or beneficiaries in the order of priority established under this Act.

1989, c. 38, s. 230.

§ 4.1 . — Distribution of surplus assets in the event of total termination

1992, c. 60, s. 34.

230.1. The allocation of any surplus assets from a pension plan which has been totally terminated is subject

(1)  to an agreement to be made between the employer, the members and the beneficiaries pursuant to sections 230.2 to 230.6; or

(2)  where the plan is established pursuant to a collective agreement, an arbitration award in lieu thereof or an order which renders such an agreement compulsory,

(a)  to the application of the provisions, if any, of the agreement or the arbitration award in lieu thereof which provide for the allocation of the surplus assets in the event of total termination of the plan. A joint statement by the parties bound by the agreement or award must, in that case, be sent to the pension committee, stating that under the agreement or award the surplus assets will be allocated, as the case may be, to the employer only, to the members and beneficiaries only or to both the employer and the members and beneficiaries and, in the latter case, the percentage due to each; or

(b)  to an agreement to be made between the parties bound by the agreement or award, establishing the surplus assets on the date of termination, which of the employer only, the members and beneficiaries only or both the employer and the members and beneficiaries is entitled thereto and, in the latter case, the percentage due to each.

In all cases, however, the parties bound by the agreement or award may elect to make an agreement pursuant to paragraph 1 of this section. Finally, the application of the provisions of the agreement or award providing for the allocation of the surplus, or the making of an agreement under subparagraph b above, does not remove the obligation also to make an agreement under the said paragraph 1 which affects any other members who are not governed by the agreement or award, and the beneficiaries; or

In force: 1994-07-01

(3)  in all the cases provided for in section 230.7, to an arbitration award rendered pursuant to Chapter XIV.1.

1992, c. 60, s. 34.

230.2. In order that an agreement may be made pursuant to paragraph 1 of section 230.1, the employer must, within six months after transmission to the pension committee of the decision of the Régie which fixes the date of termination of the plan, send to the pension committee a draft agreement indicating

(1)  the surplus assets determined on termination of the plan;

(2)  to whom such a surplus is to be allocated: to the employer only, to the members and beneficiaries only or to both the employer and the members and beneficiaries and, in the latter case, the percentage due to each;

(3)  where an agreement has been made or a statement sent pursuant to paragraph 2 of section 230.1, the portion of the surplus assets due to those who are governed by the collective agreement or the arbitration award in lieu thereof, and the proportion that the value of their benefits is of the value of the benefits of all the members and beneficiaries;

(4)  to the extent that all or part of the surplus is to be allocated to the members and beneficiaries, the method of apportionment to be used to determine the share of each;

(5)  any other information prescribed by regulation.

The method referred to in subparagraph 4 of the first paragraph shall be the method of proportionalization of the surplus according to the value of the benefits of the members and beneficiaries; however, the following methods may also be used in the conditions described:

 — a method which grants members who are non-active on the date of termination a larger share of the surplus assets than they would have received on a proportional basis;

 — if an actuary certifies that all or part of the surplus is a result of circumstances related to a given group of members or beneficiaries, a method which grants them a larger share than they would have received on a proportional basis;

 — if the plan provides that all or part of the surplus must be used to increase their benefits, a method which grants members or beneficiaries a share of the surplus which, although different from the share they would have received on a proportional basis, corresponds to the share to which they are entitled under the plan;

 — a method which combines elements from several of the abovementioned methods;

 — any other method, provided that no member or beneficiary subsequently opposes the draft agreement within the period prescribed by section 230.4.

Such a method shall provide for the adjustment of the share of every member or beneficiary in the surplus assets in the event of a change in the amount of the surplus or in the overall value of the benefits of the members and beneficiaries between the date of termination and the date of payment of the share to the persons entitled thereto.

1992, c. 60, s. 34.

230.3. If the employer fails to send a draft agreement to the pension committee within the time and containing the indications prescribed in the first paragraph of section 230.2 and in the regulations, the employer shall be bound, to the extent to be determined by the arbitrator or arbitrators in view of the circumstances of such a failure, to pay the expenses and fees payable by the members and beneficiaries with respect to any arbitration which may follow and which relates to the surplus. This section shall not apply, however, where the members and beneficiaries have agreed to have recourse to arbitration before the end of the six-month period.

1992, c. 60, s. 34.

230.4. Upon receipt of the draft agreement, the pension committee shall send a copy to every member and beneficiary affected, together with a notice informing them

(1)  of the provisions of the plan relating to the allocation of surplus assets in the event of total termination;

(2)  that they may, within 60 days, inform the pension committee in writing of their opposition to the draft agreement.

Unless the pension committee is exempted therefrom by the Régie where it is attested in writing that all the members and beneficiaries who may be entitled to assert rights under the plan or under this Act have been notified personally, the pension committee shall, in addition, not later than the date on which the notices provided for in the first paragraph are sent, cause to be published in a newspaper circulated in the region of Québec where the greatest number of members who were active at the date of termination reside, a notice of the total termination of the plan and of the existence of a surplus of assets and a draft agreement submitted by the employer concerning apportionment of that surplus. The notice shall also invite any person who has not received the abovementioned notice and who believes he has rights under the plan or under this Act

 — to assert his rights with the pension committee within 60 days after the publication, subject to the additional time granted by section 230.8;

 — to the extent that he is able to justify his rights, to consult the text of the draft agreement at the office of the pension committee, or to request a copy thereof from the committee and, where applicable, to inform the committee in writing of his opposition within the abovementioned time.

The time allowed under this section to assert rights or to oppose the draft agreement begins to run only from the date on which the statement provided for in section 203 is sent to every member or beneficiary, where that statement is sent after the copy of the draft agreement.

The pension committee shall also send without delay to the Régie a copy of the draft agreement, the notice sent to members and beneficiaries and, where applicable, the notice published in the newspaper.

1992, c. 60, s. 34.

230.5. Where the content of the draft agreement or the transmission thereof does not conform to the provisions of this Act or the regulations, the Régie may order that any measure be taken to correct the irregularity, provided this may still be done within the six-month period provided for in section 230.2. If the period expires before the irregularity is corrected, the Régie is bound to invalidate the draft agreement, unless it grants an additional period not exceeding four months if it is satisfied that the employer or the pension committee, as the case may be, was unable to act sooner or could not correct the irregularity for a reason outside their control or if the Régie is of the opinion that an additional period would serve the interests of the parties to the plan.

Where the content or publication of the notices referred to in section 230.4 does not conform to the requirements of that section, the Régie may order the pension committee to take any corrective measure it indicates, within the time fixed, including the prorogation of the time for opposition or assertion of rights.

1992, c. 60, s. 34.

230.6. The draft agreement submitted by the employer is, upon expiry of the time for opposition, deemed to be accepted, unless

(1)  30% or more of the members and beneficiaries oppose it;

(2)  at least one member or beneficiary opposes it when the proposed method of apportionment, under the terms of the second paragraph of section 230.2, admits of no opposition;

(3)  the Régie has invalidated it by reason of an irregularity.

The pension committee shall send forthwith to the Régie a statement evidencing the acceptance.

1992, c. 60, s. 34.

230.7. Where

 — 30 % or more of the members and beneficiaries oppose the draft agreement submitted by the employer;

 — at least one member or beneficiary opposes the draft agreement submitted by the employer when the proposed method of apportionment, under the terms of the second paragraph of section 230.2, admits of no opposition;

 — the employer has failed to send a draft agreement to the pension committee within the time prescribed by section 230.2 or within the additional period granted by the Régie pursuant to the first paragraph of section 230.5;

 — at least six months have elapsed since the decision of the Régie fixing the date of termination of the plan was transmitted to the pension committee, and no statement was sent and no agreement was made as provided, respectively, in subparagraphs a and b of paragraph 2 of section 230.1;

 — the agreements made and statements sent do not affect all the members and beneficiaries of the plan;

 — the Régie has invalidated the draft agreement submitted by the employer by reason of an irregularity;

 — the pension committee has not regularized the content or publication of the notices referred to in section 230.4, as it was ordered to do by the Régie;

 — the interested persons have agreed to have recourse to arbitration before expiry of the time prescribed in sections 230.2 to 230.5,

 — the employer, the employees’ association and, unless they are prevented from doing so by the effect of other legislation, any member or beneficiary, may have recourse to arbitration pursuant to Chapter XIV.1 in order to determine who is entitled to the surplus assets and what share of that surplus is due to them.

Such persons may also have recourse to arbitration even where an agreement has been reached, in order to obtain a decision on any difficulty in interpreting or implementing the agreement.

The arbitrator or arbitrators seized of a matter may, of his or their own initiative or on application, and after giving the interested persons the opportunity to present their points of view, decide that an agreement made under section 230.1 is prejudicial to the rights of any employer, member or beneficiary not affected by the agreement and that as a result all or part of it may not be set up against him. He or they may also, in such a case and notwithstanding the provisions of such an agreement, fix the share of the surplus assets to be paid to the employer, to the members and to the beneficiaries affected by the agreement.

1992, c. 60, s. 34; 1994, c. 24, s. 20.

230.8. The recourse to arbitration provided for in the first paragraph of section 230.7 extends the time limit established by the second paragraph of section 230.4 for asserting rights until the date on which the matter is taken under advisement.

1992, c. 60, s. 34.

§ 5 . — Miscellaneous provisions

231. If the assets, including income and capital gain derived from the investment of those assets after the date of termination, are not sufficient to pay all the benefits of the members or beneficiaries affected, the income and gain mentioned above shall first be applied to the payment of the interest referred to in section 217.

1989, c. 38, s. 231.

232. If the assets determined at the date of termination are not sufficient to pay all the benefits of equal rank of the members or beneficiaries affected, payment shall be made proportionately to the value of the benefits of each member or beneficiary. In addition, where benefits of equal rank have been the cause of several unfunded actuarial liabilities of the same nature, the payment of benefits shall be made from the earliest to the most recent.

The same applies where the income and capital gain from the investment of such assets after the date of termination are not sufficient to pay all the interest referred to in section 217.

1989, c. 38, s. 232.

233. Every amount recovered after the date of termination as due and outstanding contributions shall first be applied to the payment of the amounts referred to in paragraph 5 of section 218.

1989, c. 38, s. 233.

234. The benefits of a member affected by the partial termination of a multi-employer plan who is not receiving a pension under the plan at the date of termination need not be paid if the member is deemed to meet the requirements for entitlement to a deferred pension in respect of the service credited to him under the plan and if he remains an active member.

1989, c. 38, s. 234.

235. Pensions paid to members or beneficiaries affected by the partial termination of a pension plan shall continue to be paid under that plan except if the recipient, within 30 days after the day the information prescribed in section 203 is sent to him, requests that payment of the pension be henceforth assumed by an insurer.

Where that is the case, the pension paid by the insurer shall be a life pension and shall not be paid in any form other than that authorized by this Act.

1989, c. 38, s. 235.

236. The benefits, other than pensions referred to in section 235 or 237, accumulated under the pension plan by a member affected by the total or partial termination of the plan shall, if the member has been an active member for not less than two years, be paid by way of a transfer pursuant to sections 98 and 100 to 105, which apply adapted as required. In that case, the member shall, within 30 days after the information prescribed in section 203 is sent to him, indicate to the pension committee the plan to which he elects to transfer his benefits; if he fails to do so, the transfer shall be made to the plan proposed by the committee in the said sending of information.

However, in the event of a partial termination, the benefits of affected members shall be transferred in whole or in part only if the members apply therefor within the time prescribed in the first paragraph and, subsequently, within the time limits prescribed in subparagraph 2 or 3 of the second paragraph of section 99.

1989, c. 38, s. 236.

237. The vested pension of a member or beneficiary affected by the total termination of the pension plan, which is in payment on the date of the termination, shall be guaranteed by an insurer.

The pension shall be a life pension and shall not be paid in any form other than that authorized by this Act.

1989, c. 38, s. 237.

238. Any amount due to a member or beneficiary affected by the total termination of the pension plan that is not claimed within three years following the notice under section 203 or 240.1, as the case may be, shall be transferred to the Public Curator; the amount may, however, be transferred before the expiry of that time if the only benefits remaining to be settled are due to untraceable members or beneficiaries. The transfer shall be accompanied by a statement setting out the amount due and indicating, where applicable, the name and last known address of the member or beneficiary.

The provisions of the Public Curator Act (chapter C-81) pertaining to unclaimed property shall apply to the amount so transferred to the Public Curator.

1989, c. 38, s. 238; 1997, c. 80, s. 76.

238.1. Subject to the provisions of section 238, failure by a person to assert his rights within the time prescribed by this Act shall deprive that person of the right to claim payment of the corresponding benefits out of the assets of the pension plan, unless that person shows, before the payment of the benefits of the affected members or beneficiaries begins, that it was impossible for him to act sooner or that he did not receive the information to which he was entitled under this Act for a reason outside his control.

1992, c. 60, s. 35.

239. The assets of an uninsured plan under which certain refunds or pension benefits are guaranteed by an insurer shall, where the plan is terminated in whole or in part, include the value of the pension benefits guaranteed by the insurer, for the purposes of the settlement of the pension benefits of the members or beneficiaries affected by the termination.

1989, c. 38, s. 239.

240. If, in the case referred to in section 239, the amount of insured benefits accumulated by the members or beneficiaries affected by the termination of the pension plan which the insurer would have to assume if the pension plan were not terminated exceeds the amount of such benefits as established pursuant to this chapter, the insurer, at the request of the pension committee, is bound to guarantee the uninsured benefits of the members or beneficiaries, up to the value of the excess amount.

This section shall not apply to impair the degree of solvency of the plan.

1989, c. 38, s. 240.

240.1. The share of the surplus assets to which a member or beneficiary is entitled may be paid to him in a lump sum, transferred into a plan referred to in section 98 or used to purchase a pension or other pension benefit, according to the chosen option he indicates to the pension committee within 30 days after the pension committee sends him a notice setting out the various modes of payment, which notice must be sent within the time limit prescribed in section 205.1. The share may not, however, be used to purchase a pension the value of which exceeds the amount that, under a registered pension plan as defined in section 1 of the Taxation Act (chapter I-3), may be transferred directly into another plan.

If the member or beneficiary fails to indicate which option he has chosen within the time limit prescribed in the first paragraph, payment shall be made to him according to the mode proposed by the pension committee in the notice.

1992, c. 60, s. 36; 1994, c. 24, s. 21.

240.2. The members affected by the partial termination of a pension plan whose benefits were paid in full on that occasion or subsequently shall remain members, notwithstanding the provisions of the second paragraph of section 33, for the sole purpose of the apportionment of any surplus assets which may be made pursuant to this Act.

However, if the date of partial termination precedes the date of total termination of the plan by seven years or more, the members whose benefits have been paid shall retain their status as members for the said purpose only if they assert their rights with the pension committee within the prescribed time limits.

Whenever the provisions of the second paragraph must be applied, the notice required to be published under the second paragraph of section 230.4 must set out the rules established by this section. However, where a case has been referred to arbitration under section 230.7 without publication of the notice, the pension committee shall, upon being informed of the referral to arbitration, cause to be published in a newspaper circulated in the region of Québec where the greatest number of members who were active at the date of termination reside, a notice setting out the application for arbitration together with the rule established by this section, and informing interested parties that, until the matter is taken under advisement, they are entitled to assert their rights with the pension committee. A copy of the public notice must be sent without delay to the Régie.

The Régie may, however, exempt the pension committee from the obligation to publish the notice if it is attested in writing that all members and beneficiaries who may be entitled to assert rights under the plan or under this Act have been notified personally.

1992, c. 60, s. 36; 1994, c. 24, s. 22.

240.3. The Régie may, in the cases and on the conditions set out in paragraphs 1, 2 and 3 below, and to the extent that it considers it in the interest of the members and beneficiaries, exempt a pension plan which has been totally or partially terminated from the application of the provisions of this chapter mentioned in the said paragraphs:

(1)  any plan which is totally terminated may be exempted from the application of all or some of the provisions of this chapter, provided the following conditions are satisfied:

 — the pension committee attests in writing that the persons who may be entitled to assert rights under the plan or pursuant to this Act have all been notified personally of the termination of the plan and the value of their benefits;

 — all such persons have accepted, in writing, the assessment of their benefits;

 — any other conditions which the Régie may fix;

(2)  any plan which is partially terminated may be exempted, in matters relating to the termination, from the application of all or some of the provisions of sections 202 to 210, 212 to 227 and 231 to 240, provided the conditions fixed by the Régie are satisfied;

(3)  any multi-employer plan which is totally terminated may, on the conditions fixed by the Régie, be exempted from the application of all or some of the provisions of sections 220 to 227.

1992, c. 60, s. 36; 1994, c. 24, s. 23.

CHAPTER XIV REVIEW AND PROCEEDING BEFORE THE ADMINISTRATIVE TRIBUNAL OF QUÉBEC

1997, c. 43, s. 657.

241. The Régie may, at the request of any interested person, review any decision or order made by it.

The application for review must be made in writing, within 60 days of notification of the contested decision or order, and must state briefly the grounds on which it is based.

The Régie may extend the 60-day time limit or relieve a person of the consequences of failing to comply with it if it is shown that the application for review cannot or could not, for a valid reason, be made within the prescribed time.

The application for review suspends execution of the contested decision or order, unless the Régie orders provisional execution where so justified by circumstances.

1989, c. 38, s. 241; 1997, c. 43, s. 658.

242. The Régie shall dispose of the application for review without delay and after giving all interested persons an opportunity to present observations.

The decision of the Régie must state the grounds on which it is based and be notified in writing to the interested persons.

1989, c. 38, s. 242; 1997, c. 43, s. 659.

243. A review decision rendered by the Régie may, within 30 days of notification of the decision, be contested before the Administrative Tribunal of Québec.

1989, c. 38, s. 243; 1997, c. 43, s. 660.

CHAPTER XIV.1 ARBITRATION

1992, c. 60, s. 37.

243.1. The provisions of Title I of Book VII of the Code of Civil Procedure (chapter C-25), with the exception of articles 940, 940.1, 940.5 to 942, 942.6, 943 to 944, 944.10, 945.4 and 946 to 947.4 apply, adapted as required and subject to the provisions of this chapter and the regulations, to any arbitration under this Act.

1992, c. 60, s. 37.

243.2. Any matter relating to the allocation of a surplus of assets determined upon the total termination of a pension plan comes under the exclusive jurisdiction of the arbitrators appointed pursuant to this chapter.

1992, c. 60, s. 37.

243.3. The mission of arbitration shall be entrusted

(1)  to one arbitrator, where the value involved does not exceed $100 000;

(2)  to one arbitrator or, if the representatives of the parties designated pursuant to section 243.6 agree thereto, to three arbitrators, where the value involved is more than $100 000 but does not exceed $350 000;

(3)  to one arbitrator or, if any of the representatives mentioned above so requests, or if the representatives agree thereto, to three arbitrators, where the value involved is more than $350 000 but does not exceed $1 000 000;

(4)  to three arbitrators or, if the representatives mentioned above agree thereto, to one arbitrator, where the value involved exceeds $1 000 000.

1992, c. 60, s. 37.

243.4. Only a natural person may act as an arbitrator.

The Government may, by regulation, determine the qualifying criteria and other conditions to be met by any person in order to act as an arbitrator, in particular the experience required in the field of pension plans or the professional training required in subjects related to the issues raised by arbitration.

1992, c. 60, s. 37.

243.5. Recourse to arbitration is introduced by an application made to the pension committee.

The information which must be contained in the application, and the documents which must accompany it, shall be fixed by government regulation.

1992, c. 60, s. 37.

243.6. Upon receiving an application for arbitration, the pension committee must convene the members and beneficiaries concerned to a meeting to select the natural person who will represent them for the purposes of sections 243.3 and 243.7, and request the employer to communicate the name of the natural person who will be his representative for the same purposes.

In cases where several employers are parties to the plan, the pension committee must, unless it receives confirmation of a written agreement concerning the selection of the employers’ representative, convene the employers to a meeting to proceed with the selection of their representative.

The manner of convening such meetings, the quorum and the terms and conditions applicable to the appointment of representatives shall be fixed by regulation of the Government.

1992, c. 60, s. 37.

243.7. The representatives appointed pursuant to section 243.6 shall select, from among the arbitration bodies accredited by the Government, the body that will be responsible for organizing the arbitration; they shall inform the pension committee and the Minister of Employment and Solidarity thereof forthwith. Failing agreement between them concerning the selection of a body, it shall be designated by the Minister.

The same representatives must also appoint the arbitrator or arbitrators and inform the arbitration body thereof. Failing agreement concerning the selection of one or more arbitrators, the said body shall be entrusted with completing the appointments from the list of arbitrators drawn up pursuant to section 243.17.

The arbitration body must, as soon as the appointments are made as required by the second paragraph, so inform the parties to the arbitration in the manner prescribed by government regulation.

1992, c. 60, s. 37; 1994, c. 12, s. 67; 1997, c. 63, s. 128.

243.8. The pension committee shall forward to the arbitration body the application for arbitration, accompanied with the provision for costs and the information and documents prescribed by regulation of the Government; the body shall, in turn, submit them to the appointed arbitrators.

A copy of the application, together with the accompanying documents or information, must also be furnished by the committee to the Régie.

1992, c. 60, s. 37.

243.9. At all times during the arbitration proceedings, the arbitrator or arbitrators may, on an application, dismiss the recourse to arbitration if it is proved to them that the recourse is frivolous or clearly devoid of substance.

In such a case, the person who instituted the recourse, notwithstanding the provisions of section 243.18, shall be bound to pay the arbitration costs and the arbitrators’ fees, to the extent that the arbitrators determine in view of the circumstances.

1992, c. 60, s. 37.

243.10. The arbitration decision must be rendered within a period of six months from the date on which the arbitrator or arbitrators appointed were seized of the case, unless, before its expiry, the period is extended by an agreement of the parties or by the arbitration body following an application by one of the parties.

1992, c. 60, s. 37.

243.11. No arbitrator may be prosecuted by reason of acts performed in good faith in the performance of his duties.

1992, c. 60, s. 37.

243.12. No arbitrator may be recused except where the prevailing circumstances may give rise to doubts as to his impartiality, independence or qualifications.

1992, c. 60, s. 37.

243.13. Any arbitrator may ask a witness any question he considers useful; he may also summon a witness and require him to state what he knows or produce any document requested by the arbitrator.

If the witness so summoned fails to appear, the arbitrator may apply to a judge for a compelling order in accordance with article 284 of the Code of Civil Procedure (chapter C-25).

1992, c. 60, s. 37.

243.14. The arbitrators shall rule in accordance with the rules of law; they shall also, where circumstances justify it, call on equity.

In particular, the evolution of the pension plan, any amendments made to it and the circumstances in which those amendments were made, the origin of the surplus assets concerned, the use made in the past of any surplus assets, as well as any information sent to members and beneficiaries in relation to any such matter, shall be taken into consideration.

The arbitration decision, upon being rendered, is binding on any person who has rights or obligations under the plan.

Unless the arbitration decision rules only on a difficulty in interpreting or implementing an agreement or a declaration, the arbitration decision must specify, in particular,

(1)  who is entitled to the surplus assets as determined at the date of termination of the plan, whether the employer alone, the members and beneficiaries alone or both the employer and the members and beneficiaries and, in the latter case, the amount to be allocated to the members and beneficiaries as well as the method for adjusting that amount in the event of a variation in the surplus assets between the date of termination and the date of implementation of the decision; and

(2)  insofar as some or all of the surplus assets are allocated to members and beneficiaries,

(a)  the identity of each such member or beneficiary and, in the event that other names are added to the names appearing in the termination report, the method for determining the value of their accrued benefits; and

(b)  the distribution method to be used to determine the share of each member or beneficiary.

No appeal lies from an arbitration decision.

1992, c. 60, s. 37; 2000, c. 41, s. 158.

243.15. A certified copy of the arbitration decision must be filed without delay by the arbitrator or arbitrators who rendered the decision, at the office of the clerk of the Superior Court of the district in which the office of the pension committee is located.

Once filed, the arbitration decision becomes executory as a judgment of that court.

A copy of the arbitration decision must also be sent to the Régie and to the pension committee which, upon receipt, shall transmit to each member or beneficiary involved a notice summarizing the decision and indicating where a copy of it may be obtained.

Unless an application under article 945.6 of the Code of Civil Procedure (chapter C-25) has been submitted to the arbitrators for the same purpose, the pension committee or the Régie may, within 60 days after receiving a copy of the arbitration decision, apply to the arbitrators for

(1)  the correction of a clerical error in the decision;

(2)  the interpretation of a specific part of the decision; or

(3)  a supplementary decision on a part of the application omitted in the decision.

An interpretation forms an integral part of the decision.

1992, c. 60, s. 37; 2000, c. 41, s. 159.

243.16. Except on a question of jurisdiction, no recourse provided under articles 33 and 834 to 846 of the Code of Civil Procedure (chapter C-25) may be exercised, nor any injunction granted, against an arbitration body, the committee formed pursuant to section 243.17 or an arbitrator acting in his official capacity.

A judge of the Court of Appeal may, on a motion, summarily annul any decision, order or injunction rendered, issued or granted contrary to the first paragraph.

1992, c. 60, s. 37.

243.17. The list of persons who may be appointed as arbitrators by the arbitration body shall be drawn up by a committee composed of the following members, appointed by the Government for the period it determines:

(1)  two persons recommended by the Minister;

(2)  one person appointed after consultation with the Régie;

(3)  one person appointed after consultation with the most representative employees’ associations;

(4)  one person appointed after consultation with the most representative employers’ associations.

1992, c. 60, s. 37.

243.18. The costs of arbitration and the arbitrators’ fees shall be payable by the pension fund but only up to the amount of the surplus assets under consideration. The arbitration body alone is competent to draw up the account of such costs and fees for payment. The account must be paid before execution of the arbitration decision begins.

The Government shall determine the arbitration costs that are subject to a tariff, and shall fix the rate applicable to those costs and to the arbitrators’ fees.

For the purposes of this section, arbitration costs include the expenses incurred by the arbitration body and the cost of its services.

1992, c. 60, s. 37.

243.19. In addition to the regulatory powers conferred on it by this chapter, the Government may make any other regulation required for the purposes of this chapter, in particular in respect of

(1)  the transmission of any document required under this chapter;

(2)  the time limits applicable to the execution of any obligation, procedure or formality under this chapter.

1992, c. 60, s. 37.

CHAPTER XV REGULATIONS OF THE RÉGIE DES RENTES DU QUÉBEC

244. The Régie may, by regulation,

(1)  determine the form and content of any document, certificate or attestation prescribed by this Act and the regulations;

(2)  determine the documents and information that must accompany every application for registration of a pension plan or amendment;

(3)  determine what income security programs are contemplated by section 58;

(3.1)  determine the rules applicable to the establishment of the benefits of the member to whom a benefit has been paid under section 69.1;

(3.2)  determine, for the purposes of section 91.1, under what conditions a pension may be replaced by a temporary pension;

(4)  determine, for the purposes of section 92, under what conditions a pension may be replaced, the terms and conditions of the replacement pension contract and the methods, assumptions, rules or factors applicable in computing the maximum annual amount of pension;

(5)  determine the benefits which, pursuant to paragraph 6 of section 93, may replace a pension to which a member or his spouse has become entitled, and the conditions attached to such a replacement;

(6)  determine, for the purposes of section 98 or 100, the plans or annuity contracts not governed by this Act that are included in the expression “pension plan” and the norms applicable to such plans or contracts, or make all or part of this Act and the regulations applicable to them;

(7)  determine, for the purposes of section 108 or 110, the rules applicable to the determination of the benefits of the member and their value before and after partition of such benefits or payment of a compensatory allowance, and to the payment of benefits awarded to the spouse, in particular, the rules governing the transfer of the sums of money to which the spouse is entitled, the interest payable thereon and the information to be provided to the spouse within the prescribed time, and the obligations incumbent upon the person responsible for managing the sums thus transferred;

(8)  determine any document which may be examined pursuant to section 114;

Not in force

(8.1)  determine the cases where a pension committee must furnish the guarantees described in section 156.1, and prescribe the amounts and the terms and conditions of such guarantees;

(8.2)  prohibit that the assets of a pension plan be encumbered with an immovable hypothec or determine the maximum proportion of the book value of the assets of a plan that may be encumbered with an immovable hypothec;

(8.3)  determine the information that must be contained in the annual statement referred to in section 161 as well as the attestations, certificates and documents it must be accompanied with;

(8.4)  determine the cases in which the audit of the financial report referred to in section 161 is not required;

(8.5)  determine the subjects, other than those mentioned in the first paragraph of section 166, that must be placed on the agenda of the annual meeting;

(9)  limit or prohibit the investment of the assets of a pension plan in certain forms of investments;

(10)  determine the security which must be furnished by persons or bodies to whom or which a loan may be granted under section 177;

(11)  determine the methods, assumptions, rules or factors which are applicable or prohibited for the purpose of calculating any contribution or benefit, refund, interest rate or rate of return and, where applicable, their actuarial value;

(12)  determine the methods, assumptions, rules or factors which are applicable or prohibited for the purpose of calculating the assets and liabilities of a plan and distributing them among the groups of benefits in the event of a partial termination of the plan or in the event of the total termination of a multi-employer pension plan, and for the purposes of a conversion of the plan into a plan of another type, the division of the assets and liabilities of a plan among several plans or the merger of the assets and liabilities of several plans;

(12.1)  prescribe the information other than that required under section 230.2 which must be contained in any draft agreement sent by the employer to the pension committee concerning the apportionment of surplus assets;

(13)  determine the procedure for any matter within its competence, the applicable time limits and the required documents;

(14)  prescribe the fees payable for the financing of expenses incurred by the Régie for the administration of this Act and the regulations and for any formality prescribed by this Act or the regulations, including additional fees, not greater than twice the original fee, which may be imposed as an overdue charge;

(15)  determine, among the provisions of any regulation made under this section, those provisions the contravention of which is punishable under Chapter XVII.

A regulation under subparagraph 4 of the first paragraph relating to factors applicable in computing the maximum annual amount of a replacement pension is not subject to the requirements of sections 8 and 17 of the Regulations Act (chapter R-18.1) as regards publication and the date of coming into force where the Régie is of the opinion that the urgency of the situation justifies that it be so exempted.

A regulation made under subparagraph 8.2 or 9 may prescribe the cases in which and the types of plans to which it applies. It may also prescribe the conditions on which it applies to loans or investments existing on the date it comes into force.

The regulations of the Régie shall be submitted to the Government for approval.

1989, c. 38, s. 244; 1992, c. 60, s. 38; 1993, c. 45, s. 3; 1994, c. 24, s. 24; 1997, c. 19, s. 16; 1997, c. 43, s. 661.

CHAPTER XVI FUNCTIONS AND POWERS OF THE RÉGIE DES RENTES DU QUÉBEC

245. In addition to the other functions conferred on it by this Act, the Régie shall ensure that pension plans are administered and operated according to law.

The Régie also has the duty to encourage financial planning for retirement, in particular by promoting the establishment and improvement of pension plans.

1989, c. 38, s. 245.

246. To exercise its functions under this Act, the Régie, in addition to the other powers conferred on it by this Act and the Act respecting the Québec Pension Plan (chapter R-9), may

(1)  conduct or commission surveys and research programs and make recommendations to the Minister on any matter related to this Act;

(2)  provide information in the form of general or specific instructions regarding the administration of this Act;

(3)  carry out the inspection of any pension plan;

(4)  prepare, or cause to be prepared, any document prescribed or required by this Act and not furnished in accordance with this Act or the requirements of the Régie, at the expense of the person who is required to furnish it;

(5)  in the case of a pension plan to which Chapter X does not apply, require from the pension committee or the insurer, on the conditions and within the time limits established by the Régie, any document or information it considers necessary to measure the funding or solvency of the plan;

(6)  require from the pension committee or the insurer, on the conditions and within the time limits established by the Régie, any document or information it considers necessary to ascertain whether a pension plan, a report respecting its termination or an actuarial valuation is in conformity with this Act;

(6.1)  require, subject to the conditions and within the time it fixes, that the pension committee or any party to a contract referred to in section 92 or to a pension plan or annuity contract to which sums may be transferred under section 98 provide it with any document or information the Régie considers necessary for ascertaining that the requirements imposed by this Act in respect of the plan or contract are complied with;

(7)  carry out any mandate entrusted to it by the Government.

1989, c. 38, s. 246; 1992, c. 60, s. 39; 1997, c. 19, s. 17.

247. For the purpose of inspecting a pension plan, any inspector appointed by the Régie may, at any reasonable time, enter any premises where the pension committee, the person exercising a delegated power or any party to the plan keeps a document relating to the plan, examine such document, and take an extract therefrom or make a copy thereof.

Whoever has custody, possession or control of the document shall, on request, make it available to the inspector and facilitate his examination of it.

On request, the inspector shall identify himself and exhibit a certificate, issued by the Régie, attesting his capacity.

1989, c. 38, s. 247.

247.1. The Régie, on the conditions it fixes, may authorize a departure from the limits established by a regulation made under subparagraph 8.2 or, with respect to immovable property investments, under subparagraph 9 of the first paragraph of section 244.

1994, c. 24, s. 25; 1999, c. 40, s. 254.

248. The Régie may make an order directing the pension committee, the person exercising a delegated power or any party to the pension plan to take any remedial measure determined by the Régie within the time and on the conditions it fixes, where it is of the opinion that

(1)  his or its action is contrary to sound financial practices;

(2)  the assumptions or methods used

 — for the actuarial valuation of the plan,

 — for the determination of the value referred to in section 60,

 — for the fixing of the interest rate applicable to contributions, or

 — in the preparation of the termination report or any other document required by the Régie,

 — do not accord with generally accepted actuarial principles;

(3)  the assumptions or methods used are inappropriate for the type of plan concerned or in view of its obligations, the financial position of the pension fund or the investment policy;

(4)  the corrective measures transmitted by the pension committee under section 135 will not allow amortization of an unfunded actuarial liability within the period initially fixed;

(5)  the pension plan or its administration is not in compliance with this Act, for instance by reason of the fact that the plan is not being wound up in accordance with the provisions of Chapter XIII or Chapter XIV.1; or

(6)  the content of a document provided for in this Act or required by the Régie is not in compliance with the requirements of this Act or of the Régie.

In addition, if the Régie considers it necessary in the best interests of the members and beneficiaries, it may order any person who has custody, possession or control of funds, securities or other assets of a pension plan not to dispose of them without the authorization of the Régie or otherwise than in accordance with the conditions it fixes.

1989, c. 38, s. 248; 2000, c. 41, s. 164.

249. The Régie may enter into agreements according to law with any government, government department, international body or agency of a government or international body for the purposes of this Act or any other Act applicable, in whole or in part, to pension plans.

The agreements may, in particular,

(1)  where a pension plan is governed both by this Act and by an Act of a legislative body other than the Parliament of Québec, determine on what conditions and to what extent each Act applies to the plan in respect of the employees referred to in section 1 who are parties to the plan and prescribe any other rule applicable to the plan;

(2)  determine on what conditions and to what extent this Act applies to benefits or assets transferred from a pension plan governed by this Act to a pension plan governed by an Act of a legislative body other than the Parliament of Québec;

(3)  provide for the delegation of powers that this Act confers on the Régie or that an Act of a legislative body other than the Parliament of Québec confers on a similar agency.

Every agreement bearing on a matter referred to in the second paragraph must be tabled in the National Assembly within 15 days after the date on which it is entered into if the Assembly is in session or, if not, within 15 days after the opening of the next session or resumption. The agreement acquires force of law from the time it is tabled in the National Assembly.

For the purposes of such an agreement, the Régie may act as the mandatary of the department or agency with which the agreement has been made.

1989, c. 38, s. 249; 2000, c. 41, s. 165.

250. The Régie may delegate any of its powers under this Act to a member of its board of directors, to a member of its personnel or to a committee formed of board members or personnel members. The Régie may also, in the act of delegation, authorize the subdelegation of the powers enumerated therein. In that case, it shall identify the member of its board of directors or the member of its personnel to whom powers may be subdelegated. The act of delegation shall be published in the Gazette officielle du Québec.

It may also delegate, irrevocably, to any person it designates the powers conferred on it by this Act concerning the review of a decision or order. The act of delegation shall also be published in the Gazette officielle du Québec.

1989, c. 38, s. 250; 1992, c. 60, s. 40; 2000, c. 41, s. 166.

251. No document relating to a matter contemplated by this Act is binding on the Régie or may be attributed to it unless it is signed by the president of the Régie or by a member of its board of directors or personnel but, in the latter case, only to the extent provided in the instrument under which powers are delegated to that member or in the internal management by-laws of the Régie.

1989, c. 38, s. 251.

252. Every decision, order or notice of the Régie that must be notified to the members or beneficiaries may be

(1)  sent to the employer who shall, as soon as he receives it, post it conspicuously in his establishment in Québec employing the largest number of members concerned, in an area ordinarily frequented by them;

(2)  published in a newspaper circulated in the locality where that establishment is situated; or

(3)  sent to the plan members who are members of the pension committee, to every other member of the committee designated by the plan members and, in the case of a plan established under a collective agreement or an arbitration award in lieu thereof, to the employees’ association representing them.

Where the Régie uses either of the modes of transmission provided for in subparagraphs 1 and 2 of the first paragraph, a summary of the decision or order may be substituted for the integral text thereof.

1989, c. 38, s. 252.

253. The Régie shall publish periodically a bulletin containing information on its activities and the general instructions it provides pursuant to paragraph 2 of section 246.

1989, c. 38, s. 253.

254. Where, for the purposes of a decision, a problem arises as to the interpretation of this Act or a pension plan, the Régie may, where it is of the opinion that the interest of the parties to the plan warrants a prompt solution of the problem, postpone its decision and submit the problem to the court by way of a motion.

Articles 454 to 456 of the Code of Civil Procedure (chapter C-25) apply, adapted as required.

1989, c. 38, s. 254; 1997, c. 43, s. 662.

255. The Régie may apply by motion to a judge of the Superior Court to obtain an injunction in respect of any matter contemplated by this Act.

The application for an injunction shall in itself constitute an action.

The procedure provided for in the Code of Civil Procedure (chapter C-25) applies except that the Régie cannot be required to give security.

1989, c. 38, s. 255.

256. The Régie may, of its own initiative and without notice, intervene in any civil action or arbitration proceedings pertaining to this Act to participate in the proof and hearing.

1989, c. 38, s. 256; 1992, c. 60, s. 41.

256.1. The Régie may intervene before the Administrative Tribunal of Québec in any proceeding relating to this Act at any time until the end of the hearing.

If it wishes to intervene, the Régie shall send a notice to each of the parties and to the Tribunal; the Régie is thereupon considered to be a party to the proceeding.

2000, c. 41, s. 168.

CHAPTER XVII PENAL PROVISIONS

257. Every person is liable to a fine of $500 to $25 000 who:

(1)  contravenes any provision of the first paragraph of section 14 or 16, of sections 17, 25, 26, 39, 41 to 43, 51 and 58, of the first paragraph of section 66, of sections 102, 119, 140, 157, 158, 159, 161, 166, 168, 169, 172, 174 to 176, 179, 210 and 240.1, of subparagraph 1 of the first paragraph of section 252 and of section 307;

(1.1)  permits the allocation of all or part of surplus assets determined upon total termination of the plan other than in the conditions prescribed by the provisions of subdivision 4.1 of Division II of Chapter XIII or of section 311.3;

(2)  contravenes any regulatory provision made under subparagraph 9 of the first paragraph of section 244 where, for the purposes of subparagraph 15 of the first paragraph of the said section, such contravention is punishable by a penalty;

(3)  contravenes any order issued by the Régie under section 35, 230.5 or 248;

(4)  makes a false declaration, hinders or attempts to hinder the Régie, a member of its personnel, a provisional administrator, any person to whom the Régie has delegated a power or any inspector appointed by the Régie, in the carrying out of its or his duties;

(5)  makes a false declaration for the purpose of obtaining

(a)  a temporary pension under section 91.1;

(b)  a temporary or life pension or a lump-sum payment under section 92;

(c)  a temporary or life pension or a lump-sum payment payable under a pension plan or annuity contract prescribed by regulation pursuant to the third paragraph of section 98.

1989, c. 38, s. 257; 1992, c. 60, s. 42; 1997, c. 19, s. 18.

258. Every person is liable to a fine of not over $2 000 who

(1)  contravenes any provision of sections 61, 111 to 114, 135, 142 to 144, 165.1, 182, 203, 204, 207, 230.4, 230.6, 243.6, 243.8, the second paragraph of section 310.1 or section 313 or 314;

(2)  contravenes any regulatory provision other than the provision referred to in paragraph 2 of section 257, where, for the purposes of subparagraph 15 of the first paragraph of section 244, such contravention is punishable by a penalty.

1989, c. 38, s. 258; 1992, c. 60, s. 43.

259. Where any of the offences under sections 257 and 258 is committed by a legal person, the amount of the fine is three times the amount prescribed.

1989, c. 38, s. 259.

260. Every person who, through encouragement or advice or by his orders, incites another person to commit an offence under section 257 or 258 is guilty of the offence and of any other offence committed by the other person as a result of such encouragement, advice or orders, if he knew or ought to have known that it would probably result in the commission of the offence.

1989, c. 38, s. 260.

261. Every person who, by his act or omission, aids another person to commit an offence under section 257 or 258 is guilty of the offence as if he had committed it himself, if he knew or ought to have known that his act or omission would probably result in aiding the commission of the offence.

1989, c. 38, s. 261.

262. In the event of a subsequent offence, the fine is twice the amount prescribed for a first offence.

1989, c. 38, s. 262.

263. In determining the fines, the court shall take into account the prejudice involved and the benefits derived from the offence, if any.

1989, c. 38, s. 263.

CHAPTER XVIII MISCELLANEOUS AND TRANSITIONAL PROVISIONS

264. Unless otherwise provided by law, the following amounts or contributions are unassignable and unseizable:

(1)  all member or employer contributions paid or payable into the pension fund or to the insurer, with accrued interest;

(2)  all amounts refunded or pension benefits paid under a pension plan or this Act and derived from member or employer contributions;

(3)  all amounts awarded to the spouse of a member following partition or any other transfer of benefits effected pursuant to Chapter VIII, with accrued interest, and the benefits deriving from such amounts.

Except as far as they derive from additional voluntary contributions, any of the above-mentioned amounts that have been transferred to a pension plan contemplated by section 98, with accrued interest, any refunds of and benefits resulting from such amounts, and any pension or payment having replaced a pension pursuant to section 92 are also unassignable and unseizable.

1989, c. 38, s. 264; 1992, c. 60, s. 44; 1997, c. 19, s. 19.

265. (Repealed).

1989, c. 38, s. 265; 1992, c. 57, s. 690.

266. Every natural or legal person and every body or group without juridical personality shall, if authorized under another Act to administer a pension plan governed by this Act, be regarded as pension committees.

1989, c. 38, s. 266.

ACT RESPECTING THE CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC

267. (Amendment integrated into c. C-2, s. 21).

1989, c. 38, s. 267.

CITIES AND TOWNS ACT

268. (Amendment integrated into c. C-19, s. 464).

1989, c. 38, s. 268.

269. (Amendment integrated into c. C-19, s. 465).

1989, c. 38, s. 269.

MUNICIPAL CODE OF QUÉBEC

270. (Amendment integrated into c. C-27.1, a. 704).

1989, c. 38, s. 270.

271. (Amendment integrated into c. C-27.1, a. 706).

1989, c. 38, s. 271.

272. (Amendment integrated into c. C-27.1, a. 707).

1989, c. 38, s. 272.

273. (Amendment integrated into c. C-27.1, a. 710).

1989, c. 38, s. 273.

ACT RESPECTING LABOUR STANDARDS

274. (Amendment integrated into c. N-1.1, s. 49).

1989, c. 38, s. 274.

ACT RESPECTING THE QUÉBEC PENSION PLAN

275. (Amendment integrated into c. R-9, s. 28).

1989, c. 38, s. 275.

ACT RESPECTING THE GOVERNMENT AND PUBLIC EMPLOYEES RETIREMENT PLAN

276. (Amendment integrated into c. R-10, s. 108).

1989, c. 38, s. 276.

PROFESSIONAL SYNDICATES ACT

277. (Amendment integrated into c. S-40, s. 9).

1989, c. 38, s. 277.

278. (Amendment integrated into c. S-40, s. 14).

1989, c. 38, s. 278.

279. (Amendment integrated into c. S-40, s. 17).

1989, c. 38, s. 279.

280. (Amendment integrated into c. S-40, s. 21).

1989, c. 38, s. 280.

281. (Amendment integrated into c. S-40, s. 25).

1989, c. 38, s. 281.

282. Every provision of another Act requiring the approval of the Régie as a condition precedent to the coming into force of a plan, an amendment or an agreement with respect to the transfer of benefits, obligations or assets is hereby repealed as to that requirement.

1989, c. 38, s. 282.

283. This Act replaces the Act respecting supplemental pension plans (chapter R-17), except for the first paragraph of section 9.1, the first and last paragraphs of section 43.1 and section 43.2, and except to the extent that it continues to apply to a plan by virtue of section 286 or 316.

In addition, the prohibition enacted by the first and last paragraphs of the said section 43.1 shall cease to apply to any surplus assets of a plan which is totally terminated

(1)  from 1 January 1993, where that surplus has been the subject of judicial proceedings, of apportionment or of an order or decree referred to in section 311.1, or of a judgment that acquires the authority of a final judgment (res judicata) before that date;

(2)  from the date on which a statement was sent or the agreement was made, where the surplus has been the subject of an agreement or statement mentioned in paragraph 1 or 2 of section 230.1;

(3)  from the date on which the award becomes executory, where the surplus has been the subject of an arbitration award referred to in paragraph 3 of section 230.1 or in section 311.3.

1989, c. 38, s. 283; 1992, c. 60, s. 45.

284. Every registration of a plan made and every certificate of registration issued under the Act respecting supplemental pension plans (chapter R-17) remain valid.

The same applies to every other decision rendered under the said Act.

1989, c. 38, s. 284.

285. Every agreement entered into pursuant to section 74 of the Act respecting supplemental pension plans (chapter R-17) remains effective.

Such agreements may, however, be amended, replaced or repealed in accordance with this Act.

1989, c. 38, s. 285.

286. Subject to section 311.1, the Act respecting supplemental pension plans (chapter R-17) continues to apply to matters pending on 31 December 1989 before the Régie, except matters related to the approval of amendments to a pension plan reducing the amounts or values of the benefits of the members or beneficiaries or concerning

 — the conversion of the plan into a plan of another type,

 — the substitution of the employer who is a party to the plan,

 — the division of the plan’s assets and liabilities among several plans, or

 — the merging of the assets and liabilities of several plans,

to which sections 20 to 23 and Chapter XII apply.

Any application for review filed after 31 December 1989 with respect to a decision rendered by the Régie before that date shall be decided in accordance with the Act respecting supplemental pension plans.

This section shall not be construed as invalidating any thing that has been validly done.

1989, c. 38, s. 286; 1992, c. 60, s. 46.

286.1. With the exception of the application for review referred to in section 286 which remain subject to the Act respecting supplemental pension plans (chapter R-17), and subject to the provisions of sections 308.2 and 311.1, any applications for review pending before the Régie on 1 January 1993, or introduced after that date and relating to decisions rendered before that date, shall be decided according to the provisions of this Act as they read before that date.

1992, c. 60, s. 47.

287. Proceedings for an offence against the Act respecting supplemental pension plans (chapter R-17) are instituted or continued in accordance with the said Act.

1989, c. 38, s. 287.

288. Unless otherwise provided by this chapter, this Act also applies in respect of service credited under a pension plan before 1 January 1990.

1989, c. 38, s. 288.

288.0.1. The orders made by the Government under section 2 as it read before 5 December 2000 are deemed to be regulations.

2000, c. 41, s. 174.

288.0.2. Section 2.1 only applies to a pension plan registered before 5 December 2000 if

(1)  the pension committee has made a written application to that effect to the Régie;

(2)  the pension plan has been amended, if necessary, to satisfy the requirements set out in the first paragraph of section 2.1;

(3)  all members and beneficiaries at the date of the application under subparagraph 1 have been notified in writing that their pension plan would no longer be subject to this Act and have consented thereto;

(4)  the fees prescribed by regulation have been fully paid to the Régie in respect of the last complete fiscal year of the plan; and

(5)  the Régie has revoked the registration of the plan, after making sure that all the conditions of this section were fulfilled.

Section 2.1 only applies to a pension plan registered after 4 December 2000 that does not satisfy the requirements set out in that section at the date of its registration if the requirements set out in the first paragraph of this section are satisfied after the benefits that were transferred into the pension plan are transferred into another plan in accordance with section 98.

2000, c. 41, s. 174.

288.1. The provisions of subparagraph 16 of the second paragraph of section 14 are not applicable to pension plans in force on 1 January 1993.

However, subject to any contrary provision of an agreement or arbitration award referred to in section 230.1, where such a plan does not specify to whom the surplus assets determined at the time of total termination are to be allocated, only the members and beneficiaries shall be entitled thereto.

1992, c. 60, s. 48.

288.2. The provisions of the second paragraph of section 22, as they read before 1 January 1993, shall continue to apply to applications pending before the Régie on that date which relate to the conversion of the type of the plan if, before 14 May 1992, a written offer had been made to the members and beneficiaries to convert their benefits in accordance with the new version of the provisions of the second paragraph of section 22. Those provisions continue to apply to such applications in respect of the surplus assets of the plan, but only up to the amount offered to the members and beneficiaries who have agreed to the conversion.

1992, c. 60, s. 48; 1997, c. 43, s. 664.

289. Subject to the provisions of section 45.1, member contributions or additional voluntary contributions paid by a member into the pension fund or to the insurer, as the case may be, before 1 January 1990, with accrued interest, if any, shall bear interest from 1 January 1990 at the rate referred to in section 44.

1989, c. 38, s. 289; 1992, c. 60, s. 49.

289.1. Section 59, as it read prior to 5 June 1997, shall continue to apply to a pension to which the member or spouse is entitled on that same date the amount of which is adjusted to take into account an amount equal to the benefits determined under the Old Age Security Act (Revised Statutes of Canada, 1985, chapter O-9), the Act respecting the Québec Pension Plan (chapter R-9) or a similar plan within the meaning of paragraph u of section 1 of the latter Act.

1997, c. 19, s. 20.

290. Unless otherwise stipulated, section 60 does not apply to the benefit to which a member or beneficiary is entitled in respect of service credited under the plan for a period of employment prior to 1 January 1990, without prejudice to the application to that benefit of section 61.

1989, c. 38, s. 290; 1992, c. 60, s. 50.

In force: 2001-01-01

290.1. Unless otherwise stipulated, section 60.1 does not apply to the pension benefit to which a member or beneficiary is entitled in respect of service credited under the plan for a period of employment prior to 1 January 2001.

A pension plan is exempted from the application of section 60.1 if, as of 16 March 2000, the plan contains a provision that is in force, was registered with the Régie before that date and provides that the deferred pension is adjusted before retirement according to a formula different from the formula provided in the second paragraph of section 60.1, provided the formula is approved by the Régie on the application of the pension committee.

The pension committee must submit the application to the Régie not later than 31 December 2000. However, in the case of a pension plan applicable to employees governed by a collective agreement, an arbitration award in lieu thereof or an order or decree rendering a collective agreement compulsory in force on 1 January 2001, the application must be submitted not later than the day immediately preceding the date of expiry of the collective agreement or arbitration award or the date of expiry, extension or renewal of the order or decree.

If such a formula is amended after being approved by the Régie, the amended formula may be approved by the Régie provided the related application is submitted to the Régie before the effective date of the amendment. If approval is granted, the plan is exempted from the application of section 60.1 in respect of the formula.

The Régie cannot approve an adjustment formula unless it is of the opinion that the value of the pension referred to in the second paragraph of section 60.1 determined according to that formula for the period referred to in that paragraph will be generally equivalent to the value that would be determined pursuant to that paragraph. The Régie may use any assumption, method, rule, scenario or factor it sees fit in order to assess such equivalence.

2000, c. 41, s. 179.

291. The value of the benefits to which section 60 does not apply and to which a member or a beneficiary is entitled in respect of service credited under the plan before 1 January 1990 shall be equal to or greater than the member contributions paid into the plan by the member before that date, with interest accrued to the date on which the value of the benefit is determined, calculated at the rate provided under the plan for the period prior to 1 January 1990 and, subject to the provisions of section 45.1, at the rate referred to in section 44 for the subsequent period.

The value of the benefit shall be determined at the date on which the member or beneficiary becomes entitled thereto, on the basis of those actuarial assumptions and methods referred to in section 61 which are applicable to determine the value of other benefits vested at that date in respect of service credited after 31 December 1989.

1989, c. 38, s. 291; 1992, c. 60, s. 51.

292. Articles 2445 to 2460 of the Civil Code, adapted as required, apply to the revocation of the designation of any person who, on 31 December 1989, is a beneficiary designated by a member.

A member may, however, where the beneficiary is his spouse and the designation has been made without a stipulation as to the revocability or irrevocability of the designation, render the designation revocable by way of a writing to that effect transmitted to the pension committee or to the insurer before 1 January 1992. If the member dies before that date and had not transmitted such a writing, the designation of his spouse is deemed to be revocable.

Within 12 months after 31 December 1989, the pension committee or the insurer shall transmit a copy of this section to every member to whom the second paragraph applies.

1989, c. 38, s. 292; 1999, c. 40, s. 254.

293. Notwithstanding the first paragraph of section 66, a member whose period of continuous employment is not terminated is not entitled to any refund of member contributions paid by him before 1 January 1990 or of employer contributions paid in his respect before that date.

1989, c. 38, s. 293.

294. Notwithstanding subparagraph 2 of the first paragraph of section 66, any member who, having ceased to be an active member within the meaning of subparagraph 2 of the first paragraph of section 36, is entitled to a deferred pension under section 69 although he is not entitled to a deferred pension in respect of service credited to him under the plan before 1 January 1990, is entitled to the refund of member contributions paid by him into the plan from the date he became a member to 1 January 1990, with accrued interest.

1989, c. 38, s. 294; 1994, c. 24, s. 26.

295. Notwithstanding section 69 and the first paragraph of section 71, no member is entitled to a deferred pension or an early retirement pension in respect of service credited to him under the pension plan from the date he became a member to 31 December 1989, unless he meets the following requirements either at the time he ceases to be an active member or, if at that time he does not meet those requirements but continues to work for the same employer, at the time his period of continuous employment ends:

(1)  he has attained 45 years of age but not normal retirement age;

(2)  he has completed at least ten years of continuous employment or has been an active member for at least ten years;

(3)  in the case of an early retirement pension, his period of continuous employment will terminate within ten years of the date on which he attains normal retirement age.

The deferred pension shall be equal to or greater than the normal pension; the value of an early retirement pension shall be equal to or greater than the value of the normal pension, discounted at the date on which payment of the early retirement pension begins.

However, if the plan is amended after 31 December 1989 to increase the benefits accumulated in respect of service credited before 31 December 1989, sections 69 and 71 apply to the pension benefits resulting from the increase.

1989, c. 38, s. 295; 1992, c. 60, s. 52.

296. Despite section 73, the normal retirement age applicable to benefits accumulated in respect of service credited under the pension plan before 1 January 1990 may, except for an early retirement pension, exceed the limit fixed by this section, provided it does not exceed the limit fixed by section 23 of the Act respecting supplemental pension plans (chapter R-17).

1989, c. 38, s. 296.

297. Any pension postponed before 1 April 1982 or between 1 April 1982 and 1 January 1990 shall be adjusted in such a manner as to ensure that the pension payable at the end of the postponement is actuarially equivalent, in the former case, to the pension the payment of which would have begun on 1 April 1982 had the pension not been postponed and, in the latter case, to the pension the payment of which would have begun on the date on which the member would have attained normal retirement age had the pension not been postponed.

Such adjustment must not create only surpluses in the pension fund of the plan nor must it create only unfunded liabilities.

1989, c. 38, s. 297.

298. The provisions of subdivision 7 of Division III of Chapter VI relating to the rights of a surviving spouse prevail, where the death of a member occurs after 31 December 1989, over any inconsistent provision which, before that date, gave entitlement to death benefits.

1989, c. 38, s. 298.

299. Service credited to a member under the pension plan before 1 January 1990 shall not be taken into account for the purposes of section 86, unless the plan is amended after 1 January 1990 to increase the benefits accumulated in respect of service credited before that date, in which case section 86 applies to the benefits resulting from the increase.

In addition, the successors of a member who dies after 31 December 1989 shall be entitled to a benefit equal to or greater than the member contributions paid by the member before that date, with interest accrued to the date of the member’s death, calculated at the rate provided in the plan for the period prior to 1 January 1990 and, subject to the provisions of section 45.1, at the rate referred to in section 44 for the subsequent period.

1989, c. 38, s. 299; 1992, c. 60, s. 53; 1999, c. 40, s. 254.

300. Section 87 does not apply to the spouse of a member where the member began to receive, before 1 January 1990, a pension the amount of which is adjusted to take into account an amount equal to the benefits determined under the Old Age Security Act (Revised Statutes of Canada, 1985, chapter O-9), the Act respecting the Québec Pension Plan (chapter R-9) or a similar plan within the meaning of paragraph u of section 1 of the latter Act or a pension under Division III of Chapter VI or subparagraph 2 or 3 of the first paragraph of section 93.

1989, c. 38, s. 300; 1997, c. 19, s. 21.

300.1. If a member dies during the period in which all or part of his pension is postponed, the second paragraph of section 299 does not apply; however, the value of the benefit provided for in that paragraph shall, in determining the spouse’s benefits, be added to the value established under subparagraph 2 of the first paragraph of section 88 or, where there is no spouse, to the value of the benefit referred to in the third paragraph of that section.

1994, c. 24, s. 27.

301. Notwithstanding section 94, an amount equal to the benefits determined under the Old Age Security Act (Revised Statutes of Canada, 1985, chapter O-9) may serve, in determining the normal pension, to reduce the benefits accumulated by a member in respect of service credited under the plan before 1 January 1990 to the extent provided for in the plan before that date.

In no case may the reduction exceed 1/35 of that amount in respect of any year of service credited to the member.

1989, c. 38, s. 301.

302. The amount referred to in the first paragraph of section 95 shall be determined as of 1 January 1990 if, before that date, the member becomes entitled to a pension the amount of which is not determined before that date.

1989, c. 38, s. 302.

303. Notwithstanding subparagraph 1 of the first paragraph of section 98, any member who becomes entitled to a deferred pension in respect of service credited under the plan after 31 December 1989, although he is not entitled to a deferred pension in respect of service credited to him under the plan before that date, is entitled to transfer member contributions paid by him into the plan before that date, with accrued interest, if any.

Notwithstanding subparagraph 2 of the first paragraph of the said section, a member is entitled to transfer the amount representing the value of a pension benefit to which he has become entitled before 1 January 1990 only if the plan so provides.

1989, c. 38, s. 303.

304. Notwithstanding section 98, no member of an insured plan effective on 2 June 1989 is entitled to the transfer of contributions paid in respect of service credited under the plan before 1 January 1990 or to interest, or to the transfer of the amount representing the value of the pension benefits to which he is entitled in respect of such service where the following requirements are met:

(1)  the plan gives entitlement to a deferred pension in respect of the aforementioned service for all members who remain active members on 1 January 1990 and for all members who ceased to be active members from 2 June 1989 to 1 January 1990;

(2)  the deferred pension has been, in respect of each member referred to in paragraph 1, the subject of a contract entered into with an insurer who, besides guaranteeing the pension and, where the plan so provides, benefits for the member’s beneficiaries or successors, has undertaken to pay to them any other benefits, such as rebates, that he would otherwise have been required to pay to the employer after 2 June 1989.

1989, c. 38, s. 304; 1999, c. 40, s. 254.

305. Where an insurer has guaranteed, before 2 June 1989, refunds or pension benefits accrued to a member in respect of service credited to him under an uninsured pension plan before that date, the transfer of such benefits pursuant to section 98 or 100 may, if the member was an active member at that date, be made by subrogating the member in the rights of the pension fund as regards the contract entered into with the insurer.

The value of the guaranteed benefits so transferred shall not exceed the value of the refunds or pension benefits that would result therefrom if the latter value were determined on the basis of actuarial assumptions and methods identical to those which, on the date of the subrogation made in favour of the member, are used to determine the value of unguaranteed pension benefits to which section 60 applies and that are vested on that date.

1989, c. 38, s. 305.

306. Any liability referred to in paragraph c of section 1 of the General Regulation respecting supplemental pension plans (R.R.Q., 1981, chapter R-17, s. 1) that is determined in a report relating to an actuarial valuation of the plan filed with the Régie before 1 January 1990 constitutes an initial unfunded actuarial liability within the meaning of paragraph 1 of section 126.

Any deficiency referred to in paragraph d of section 1 of the said regulation that is determined in a report relating to an actuarial valuation of the plan filed with the Régie before 1 January 1990 constitutes a technical actuarial deficiency within the meaning of paragraph 3 of section 126.

1989, c. 38, s. 306.

306.1. As concerns the Régime de retraite de la Ville de Québec registered under number 24450, the amortization amounts remaining to be paid as at 30 December 1997 for any initial unfunded actuarial liability which affects the pension plan and for which the amortization period originally fixed by law exceeds 15 years must correspond to the amounts that were identified in the report of the latest actuarial valuation of the entire pension plan transmitted to the Régie before 12 March 1998.

Notwithstanding section 134, the reduction in the amortization amounts remaining to be paid in relation to the unfunded liability referred to in the first paragraph shall be effected last, the other reductions under that section being otherwise mandatory. The balance of the surplus, if any, may thereafter be used to reduce proportionately each of the amounts remaining to be paid to amortize the unfunded liability.

Section 135.5, adapted as required, applies to the pension plan as regards the initial unfunded actuarial liability referred to in the first paragraph.

The provisions of this section apply to any actuarial valuation of the plan the report of which is transmitted to the Régie after 12 March 1998. Such provisions shall prevail over any contrary provision.

1998, c. 2, s. 41.

306.2. As concerns the pension plans referred to in section 135.1, the amortization amounts remaining to be paid as at 30 December 1997 for any unfunded actuarial liability referred to in the second paragraph of section 135.3 shall be modified from that date to ensure that

(1)  the same amount is paid in the course of each year occurring between 1 January 1998 and 31 December 2003;

(2)  an amount corresponding to 170% of the amount referred to in subparagraph 1 is paid in the course of the year 2004;

(3)  an amount corresponding to 106% of the amount to be paid for the preceding year is paid in the course of each year occurring between 1 January 2005 and 31 December 2015;

(4)  an amount identical to the amount required to be paid for the year 2015 in accordance with subparagraph 3 is paid in the course of each year occurring between 1 January 2016 and 31 December 2045;

(5)  no amount is paid after 31 December 2045.

The amount referred to in subparagraph 1 of the first paragraph must be determined in such a manner that, as at 30 December 1997, the value of all the amounts referred to in that paragraph is the same as the value of the amortization amounts that remained to be paid after that date and that had been identified in the report of the latest actuarial valuation of the entire pension plan transmitted to the Régie before 12 March 1998. The values must be calculated using the same interest assumption as that used for the valuation. The amounts referred to in the first paragraph may not be modified after 30 December 1997 except in accordance with subdivision 3 of Division II of Chapter X and with sections 306.3 to 306.5.

1998, c. 2, s. 41.

306.3. As long as the value, as at 31 December 1997, of the reduction in amortization amounts effected up to or after that date, pursuant to the third paragraph of section 135.2 and to this section, is less than 9/14 of the portion of gain determined in respect of the pension plan pursuant to the first paragraph of section 32 of the Act respecting the negotiation of agreements concerning the reduction of labour costs in the municipal sector (1998, chapter 2), the balance of the surplus referred to in section 135.4 shall be used in the following manner and order:

(1)  to reduce proportionately each of the amortization amounts remaining to be paid to amortize any improvement unfunded actuarial liability or technical unfunded actuarial liability identified in the report of the latest actuarial valuation of the entire pension plan transmitted to the Régie before 12 March 1998, from the oldest to the most recent, if there is more than one;

(2)  to reduce proportionately each of the amortization amounts remaining to be paid after 31 December 2003 to amortize any unfunded actuarial liability referred to in the second paragraph of section 135.3.

1998, c. 2, s. 41.

306.4. Where the ceiling provided for in section 306.3 is reached but the value, as at 31 December 1997, of the reduction in amortization amounts effected up to or after that date, pursuant to this section, is less than the portion of gain determined in respect of the pension plan pursuant to the first paragraph of section 32 of the Act respecting the negotiation of agreements concerning the reduction of labour costs in the municipal sector (1998, chapter 2), the balance of the surplus referred to in section 135.4 shall be used

(1)  to reduce proportionately each of the amortization amounts remaining to be paid after 31 December 2003 to amortize the unfunded actuarial liability referred to in the second paragraph of section 135.3;

(2)  to eliminate all amortization amounts remaining to be paid to amortize an improvement unfunded actuarial liability resulting from the improvement of the benefits of the members or beneficiaries of the plan.

In the case of a plan referred to in paragraphs 2 to 6 of section 135.1, the balance of the surplus amount may be used in a proportion greater than 60% in accordance with subparagraph 1 of the first paragraph only if the city and the employee’s associations representing the majority of the members of the plan agree thereto in writing. A copy of the agreement must be transmitted to the Régie together with an application for registration of the amendment to the pension plan.

In the case of the plan referred to in paragraph 1 of section 135.1, the proportion of the balance used in accordance with subparagraph 1 of the first paragraph shall be at least 60%.

If, once the amortization amounts referred to in subparagraph 1 of the first paragraph are eliminated, a residual amount which may be used pursuant to this section is remaining on the balance of the surplus, the amount must be used for the purposes of subparagraph 2 of the first paragraph, in a proportion of 40%.

1998, c. 2, s. 41.

306.5. The value as at 31 December 1997 of the reductions referred in sections 306.3 and 306.4 must be calculated using the same interest assumption as that used for the actuarial valuation of the pension plan effected as at 31 December 1997. However, the city and the employees’ associations representing the majority of the members of the plan may agree in writing that the value of the reductions be calculated according to the interest assumption utilized in any valuation effected as at a later date; in such a case the plan must be amended to provide for the method of calculation of that value. Moreover, no reduction may be made that would cause an amount payable to be determined pursuant to subparagraph 4 of the second paragraph of section 137 or to be higher than it would have been without the reduction.

The amounts payable according to subparagraph 1 of the first paragraph of section 306.2 may not be reduced except in a proportionate manner and through the utilization of the gain determined in the actuarial valuation under section 30 of the Act respecting the negotiation of agreements concerning the reduction of labour costs in the municipal sector (1998, chapter 2). In addition, the amount referred to in subparagraph 2 of the first paragraph of section 306.2 shall be adjusted as at 31 December 1997 in such a manner that, after the application of paragraph 2 of section 306.3 or of subparagraph 1 of the first paragraph of section 306.4, the present value as at that date of the reduction of the amortization amounts that had been identified in the report referred to in the second paragraph of section 306.2 and that, according to that report, were required to be paid from that date until 31 December 2007 becomes equal to 50% of the value of the reduction of all the amortization amounts relating to the unfunded actuarial liability referred to in the second paragraph of section 135.3.

1998, c. 2, s. 41.

306.6. The provisions of subdivision 3 of Division II of Chapter X and of sections 306.2 to 306.5 apply to any actuarial valuation of a pension plan referred to in section 135.1 the report of which is transmitted to the Régie after 12 March 1998. Such provisions shall prevail over any contrary provision.

1998, c. 2, s. 41.

307. Every person or body administering a pension plan shall, within five years from the date the plan becomes subject to this Act or within any extension of that period that may be granted by the Régie, regularize any investment of the assets of the plan made before that date which is not in conformity with this Act.

An additional period of 12 months shall be granted for the adoption of an investment policy which is in conformity with sections 169 and 170.

However, any investment made before 1 January 1990 in the name of the plan may, notwithstanding section 171, remain in the name of the plan.

1989, c. 38, s. 307.

307.1. Subparagraph 3 of the first paragraph of section 173 and the second paragraph of that section apply to deposits made or to be made under a management contract as it read on 17 June 1994, only from the expiry of the term of the investment stipulated in the contract.

However, the right to a transfer which those provisions grant to a member applies to such deposits, but only if the sums deposited are attributed to that member; the charge that may be claimed by an insurer for such a transfer shall in no case exceed the charge for the transfer of the benefits of a member who ceases to be an active member.

1994, c. 24, s. 29.

308. Where a pension plan is under trusteeship on 1 January 1990, the curator appointed under section 56 of the Act respecting supplemental pension plans (chapter R-17) shall continue to act as the provisional administrator as if he had been appointed under this Act.

1989, c. 38, s. 308.

308.1. Any pension plan to which the second paragraph of section 288.1 applies and of which division of the assets and liabilities must be authorized by the Régie is deemed, for the purposes of the second paragraph of section 195, to include a provision which, in case of total termination, allocates the surplus assets to the members and beneficiaries only.

1992, c. 60, s. 54; 1999, c. 40, s. 254.

308.2. Members affected by the partial termination of a pension plan whose settlement is pending before the Régie on 1 January 1993, shall, notwithstanding the repeal of section 213 as it read before that date, retain the rights in the surplus assets that the draft termination report proposes to allocate to them, provided that

(1)  where the date of the termination occurs before 14 May 1992, the pension committee has, before that date, sent the statement provided for in section 203 to the affected members or, if it did not do so, provided that the prescribed period for so doing expired before that date;

(2)  where the date of the termination occurs before 1 January 1993, the employer has, before that date, agreed in writing to grant such rights to the affected members, even where the statement provided for in section 203 has not been sent to them before that date.

1992, c. 60, s. 54.

308.3. In cases where, before 1 January 1993, the Régie has only approved in part the draft termination report relating to the partial termination of a plan occurring on a date before 1 January 1993, thus postponing its decision regarding the allocation of all or part of the surplus assets, those members affected by the termination whose benefits were paid between 1 January 1990 and 1 January 1993 shall remain members, notwithstanding the second paragraph of section 33, for the sole purpose of the apportionment of any surplus of assets which may be determined in the event of total termination of the plan.

1992, c. 60, s. 54.

309. Notwithstanding section 218, in the event of total or partial termination of a pension plan, the amount representing, at the date of termination, the value of any reduction of benefits which, pursuant to section 215, is made to offset an initial unfunded actuarial liability determined in a report relating to an actuarial valuation of the plan filed with the Régie before 1 January 1990, shall be paid

(1)  immediately before the amount referred to in subparagraph 2 of the first paragraph of section 218; or

(2)  after the amounts referred to in the first paragraph of the said section, if it is to be paid out of the amounts paid by the employer in respect of a debt under section 228.

1989, c. 38, s. 309.

310. The debt referred to in section 228 does not include the amount representing the unpaid value of any benefit reduction which, pursuant to section 215, has been made to offset an unfunded actuarial liability not fully amortized at the date of termination of the pension plan and determined in a report on an actuarial valuation of the plan filed with the Régie before 1 January 1990.

1989, c. 38, s. 310.

310.1. For the purposes of the provisions of subdivision 4.1 of Division II of Chapter XIII and of section 311.3, persons whose benefits under a pension plan have been paid before 1 January 1990 by means of an annuity contract entered into with an insurer, and persons designated as beneficiaries under the terms of such a contract who are still entitled to benefits thereunder, are deemed to be members or beneficiaries, as the case may be, provided that, in all cases, the interested parties have acted within the prescribed time limits.

In addition, each time the provisions of the said sections are to be applied following the termination of a pension plan which was in force on 1 January 1990, the notice of which publication is required under section 230.4 shall also state the rule established by the first paragraph of this section. However, if the matter was submitted to arbitration under section 230.7 or 311.3 without publication of the notice, the pension committee shall, as soon as it is informed that the matter will be submitted to arbitration, cause to be published in a newspaper circulated in the region of Québec in which the greatest number of members who were active at the date of termination reside, a notice mentioning the application for arbitration and the rule established by the first paragraph of this section, and informing the interested parties that they may, until the matter is taken under advisement, assert their rights with the committee. A copy of the notice shall be sent forthwith to the Régie.

However, the Régie may exempt the pension committee from the obligation to publish where it is attested in writing that all the members and beneficiaries who may be entitled to assert rights under the plan or under this Act have been notified personally.

1992, c. 60, s. 55; 1999, c. 40, s. 254.

310.2. The notice required to be sent under the first paragraph of section 230.4 must, where the person or body required to send it is not, within the meaning of section 318, a pension committee established as prescribed by section 147, indicate that any opposition to the draft agreement on the part of the members and beneficiaries concerned must be filed in writing with the Régie.

Section 230.6 shall apply in such a case, in respect of opposition communicated to the Régie under this section.

1992, c. 60, s. 55.

311. The obligation provided for in section 102 whereby transferred amounts must be paid in the form of a life pension shall not apply to amounts transferred pursuant to section 236 and relating to benefits accumulated under the pension plan in respect of service credited before 1 January 1990 unless, at the time of total or partial termination of the plan, the member had attained 45 years of age and completed a period of continuous employment of not less than ten years, or had been an active member for a period of not less than ten years.

1989, c. 38, s. 311.

311.1. The provisions of subdivision 4.1 of Division II of Chapter XIII and of section 311.3 also apply to the apportionment of the surplus assets of any pension plan in force on 1 January 1993, except where that surplus is the subject of

(1)  legal proceedings pending on 14 May 1992;

(2)  an apportionment proposed in a draft termination report which grants all the surplus to the members and beneficiaries, if one of the following conditions is met:

 — the Régie has, before 14 May 1992, considered the draft report to be in conformity with this Act, and the pension committee has, before that date, sent the statement required by section 203 to the members and beneficiaries or, where it has neglected to do so, provided that the time limit for doing so expires before that date;

 — the draft termination report has been sent to the Régie before 1 January 1993, and the employer has consented in writing to such an apportionment; the apportionment must also be in conformity with the law applicable before the above date;

(3)  an apportionment provided for in an agreement made before 1 January 1993, pursuant to subparagraph 2 of the first paragraph of section 43 of the Act respecting supplemental pension plans (chapter R-17), provided, however,

 — that the Régie has been informed of the agreement before that date and that it has subsequently judged that the apportionment is fair for all the members affected by the termination and the information pertaining thereto to be given to them is adequate;

 — that the members have been informed of the agreement before the expiry of the sixth month following the decision of the Régie on the apportionment provided for therein;

 — that less than 30 % of the members have, within 60 days after the date on which they were informed of the agreement, informed the Régie, in writing, of their opposition thereto.

Where the conditions prescribed by this paragraph are satisfied, the agreement is binding on the parties and on every member who has rights under plan. The same has always applied to any such agreement when the conditions prescribed in subparagraphs a and b of paragraph 2 of section 43 of the Act respecting supplemental pension plans have been satisfied;

(4)  an order made by the Government under section 43.1 of the Act respecting supplemental pension plans has authorized payment to the employer of all or part of the surplus assets.

Where the surplus assets to be apportioned in accordance with the provisions of subdivision 4.1 of Division II of Chapter XIII or of section 311.3 result from a totally terminated pension plan which continues to be governed by the Act respecting supplemental pension plans pursuant to section 286, the Régie may require, as a condition for approval of the report relating to the termination, that it be provided, in the conditions and within the period it fixes, with any information or document in addition to the said report and relating to the apportionment of such surplus assets.

1992, c. 60, s. 56.

311.2. In the case of a pension plan with surplus assets for which the Régie has, before 1 January 1994, rendered a decision fixing the date of its total termination, the employer, notwithstanding the time limit provided for in the first paragraph of section 230.2, has until 30 June 1994 to send the draft agreement provided for in that section to the pension committee.

Sections 230.3 and 230.5 shall apply in that case, subject to the time granted by the first paragraph of this section.

1992, c. 60, s. 56.

311.3. In addition to the provisions in this respect of paragraphs 1 and 2 of section 230.1, the allocation of surplus assets in a pension plan which has been totally terminated may also, before 1 July 1994, be subject to an arbitration award rendered pursuant to Chapter XIV.1, in the following conditions:

(1)  the interested parties have, before 1 July 1994, agreed to have recourse to arbitration in order to determine who is entitled to the surplus assets and what share of that surplus is due to them. In such a case, the application for arbitration must be introduced before the above date by a statement sent to the pension committee which evidences the agreement;

(2)  the application for arbitration must contemplate all the surplus assets and all the members and beneficiaries of the plan.

For the purposes of subparagraph 1 of the first paragraph, the members and beneficiaries are deemed to have agreed to arbitration if, after having been informed by public notice of the agreement of the employer, less than 30 % of them have opposed it. The public notice shall be published in accordance with the modalities prescribed by section 204, which applies with the necessary modifications; the notice shall state the agreement of the employer to the recourse to arbitration and the object of the recourse, and shall invite any person concerned who is opposed to arbitration to notify the pension committee of his opposition within 30 days. The application for arbitration shall, in such a case, be introduced by a statement of the pension committee evidencing the agreement of the employer, the publication of the above notice and the fact that less than 30 % of those concerned have filed their opposition to arbitration. If the pension plan is not, within the meaning of section 318, administered by a pension committee established as precribed by section 147, the above notice must indicate that those concerned must notify the Régie of their opposition.

1992, c. 60, s. 56.

311.4. A member or a beneficiary whose share of the surplus assets is established in a draft termination report or a supplement thereto approved by the Régie before 17 June 1994 may avail himself of section 240.1 for as long as the pension committee has not paid his benefits in full.

1992, c. 60, s. 56; 1994, c. 24, s. 30.

312. In addition to the transitional provisions contained in this chapter, the Régie may, by regulation, make any other transitional provision to facilitate the administration of this Act; the regulations may, in particular, determine on what conditions and to what extent this Act applies to a pension plan that is also governed by an Act of a legislative body other than the Parliament of Québec and prescribe any other rule applicable to such plan.

The regulations shall be submitted to the Government for approval; they may have retroactive effect to any date prior to the date on which they come into force, but not prior to 15 November 1988.

1989, c. 38, s. 312; 1992, c. 60, s. 57.

313. Every amendment required to bring the provisions of any pension plan that is effective on 1 January 1990 into conformity with this Act shall be filed with the Régie for registration, within 12 months after 1 January 1990 or within any extension of that period which may be granted by the Régie.

1989, c. 38, s. 313.

314. Notwithstanding section 313, the amendments required to bring the provisions of a pension plan of which all or part of the members are governed by a collective agreement, an arbitration award in lieu thereof or an order or decree imposing a collective agreement which are in force on 1 January 1990 into conformity with this Act shall be submitted to the Régie for registration within three months after the date of the signing of a new collective agreement, of the rendering of the arbitration award in lieu thereof, of the extension or renewal of the order or decree or of the coming into force of an order or decree replacing an order or decree which has expired.

The Régie may grant an extension of time.

1989, c. 38, s. 314.

315. From such time as the amendments referred to in sections 313 and 314 are registered in accordance with this Act, they have effect

(1)  in the case of section 313, from 1 January 1990;

(2)  in the case of section 314,

(a)  with respect to employees governed by a collective agreement, an arbitration award in lieu thereof or an order or decree in force on 1 January 1990, from the date of expiry of the agreement or award or from the date of expiry, extension or renewal of the order or decree;

(b)  with respect to employees not governed by a collective agreement, an arbitration award or an order or decree referred to in subparagraph a, from 1 January 1990.

1989, c. 38, s. 315.

316. The provisions of a collective agreement, of an arbitration award in lieu thereof or of an order or decree imposing a collective agreement and the terms of a pension plan applicable to employees governed by the agreement, award, order or decree, in force on 1 January 1990, which are incompatible with the provisions of this Act shall prevail over the provisions of this Act until the date of expiry of the agreement or award or until the date of expiry, extension or renewal of the order or decree.

The Act respecting supplemental pension plans (chapter R-17) shall continue, for the same period, to apply to the plan, to the extent that the employees concerned are governed by the said collective agreement, award, order or decree.

1989, c. 38, s. 316.

317. Any unfunded actuarial liability resulting

(1)  from an amendment to the plan that is an amendment referred to in section 313 or 314 made for the purpose of bringing the plan into conformity with Chapter IV, V or VI, or

(2)  from an amendment to the plan made for the purposes of the application of section 44, 45, 60, 69 or 86 to benefits accumulated in respect of service credited under the plan before 1 January 1990,

constitutes an improvement unfunded actuarial liability.

Such an improvement unfunded actuarial liability may be considered to be an initial unfunded actuarial liability.

1989, c. 38, s. 317.

318. Every person or body who or which, on 31 December 1989, administers a pension plan, may, despite the fact that he or it is not a pension committee established as prescribed by section 147, continue to administer the plan either until the expiry of the time prescribed in section 313 or 314 for the filing of amendments or until such later date that may be set by the Régie, or, if the plan cannot be amended within that time by reason of its total termination, until it ceases to be in force. In such a case, the person or body shall, during his or its administration, be regarded as a pension committee.

1989, c. 38, s. 318; 1992, c. 60, s. 58.

319. In any other Act and in any regulation, decree, order, agreement, contract or other document, unless otherwise required by the context, and taking into account any necessary changes,

(1)  a reference to a provision of the Act respecting supplemental pension plans (chapter R-17) is a reference to the corresponding provision of this Act;

(2)  the expression “Act respecting supplemental pension plans” is replaced by “Supplemental Pension Plans Act” and the expression “régime supplémentaire de rentes” is replaced by the expression “régime complémentaire de retraite”.

1989, c. 38, s. 319.

320. The appropriations allocated to the administration of the Act respecting supplemental pension plans (chapter R-17) shall be transferred to permit the administration of this Act.

Supplementary appropriations allocated to the administration of this Act for the fiscal year during which this Act comes into force shall be taken out of the Consolidated Revenue Fund to the extent determined by the Government.

1989, c. 38, s. 320.

321. The Minister of Employment and Solidarity is responsible for the administration of this Act.

1989, c. 38, s. 321; 1992, c. 44, s. 81; 1994, c. 12, s. 67; 1997, c. 63, s. 128.

322. (Omitted).

1989, c. 38, s. 322.

REPEAL SCHEDULES

In accordance with section 9 of the Act respecting the consolidation of the statutes and regulations (chapter R-3), chapter 38 of the statutes of 1989, in force on 1 March 1990, is repealed, except section 322, effective from the coming into force of chapter R-15.1 of the Revised Statutes.

In accordance with section 9 of the Act respecting the consolidation of the statutes and regulations (chapter R-3), sections 34, 35, 89, 107 to 110, subparagraph 7 of the first paragraph of section 244 and subparagraph 3 of the first paragraph of section 264 of chapter 38 of the statutes of 1989, in force on 1 September 1990, are repealed effective from the coming into force of the updating to 1 September 1990 of chapter R-15.1 of the Revised Statutes.