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 or unless the applicable terms of the absorbing plan are more advantageous for the members and beneficiaries than the applicable terms of the absorbed plan. In verifying the effects of the applicable terms, only the terms in force when the application for authorization is made shall be considered.
In other cases, the merger may still be authorized if all the members and beneficiaries of the absorbed plan who are affected by the merger are informed by the pension committee by means of a notice in writing only containing the information prescribed by regulation and if less than 30%; of them are opposed to the merger. The provisions of sections 230.4 and 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.
Furthermore, if the absorbing plan or the absorbed plan is a plan to which subparagraph 16.1 or 17 of the second paragraph of section 14 applies or which has been amended pursuant to section 146.5 in order to confirm the employer’s right to appropriate all or part of the surplus assets to the payment of the value of the additional obligations arising from any amendment to the plan or to the payment of employer contributions, the merger may only be authorized if the concurrence of all parties whose consent would be required under section 146.5 for the amendment of the absorbed plan has been received.
If the merger is authorized, only the terms of the absorbing plan shall, as far as the employer’s right to appropriate surplus assets of the plan to the payment of the value of the additional obligations arising from any amendment to the plan or to the payment of employer contributions and the allocation of surplus assets in the case of termination are concerned, be applicable to the members and beneficiaries of the absorbed plan who are affected by the merger.
1989, c. 38, s. 196; 1992, c. 60, s. 15; 2000, c. 41, s. 111; 2006, c. 42, s. 32.