R-15.1 - Supplemental Pension Plans Act

Section 218 Disposition versions

2006-12-13

218. Where an employer withdraws from a multi-employer pension plan or a pension plan is terminated, the amounts to which the members and beneficiaries affected are entitled shall be paid out in the following order:

(1)  amounts corresponding to the following values, concurrently:

(a)  the value of the additional voluntary contributions paid into the pension fund or to the insurer;

(b)  the value of the member or employer contributions paid into the pension fund under provisions which, in a defined benefit plan, are identical to those of a defined contribution plan; and

(c)  the value of amounts received by the pension plan following a transfer, even a transfer other than a transfer under Chapter VII;

(2)  the value of other benefits, excluding those referred to in subparagraph 4, accrued under the plan and reduced under section 216;

(3)  the value of any benefit reduction under section 216; and

(4)  the value of benefits payable to members under pension plan terms granting them compensation for cessation of continuous employment due to technological or economic changes in the employer’s enterprise or to the division, merger, alienation or closing down of the enterprise.

If the assets are insufficient for the full satisfaction of the rights that are collocated in the same rank, payment shall be made proportionately to the value of the benefits concerned.

The benefits referred to in the first and second paragraphs are the benefits accrued under the plan at the date of termination. The value of those benefits must be established at that date, and is increased by the interest calculated in accordance with section 217.

1989, c. 38, s. 218; 1992, c. 60, s. 31; 2000, c. 41, s. 126; 2006, c. 42, s. 34.

2001-01-01

218. Where an employer withdraws from a multi-employer pension plan or a pension plan is terminated, the amounts to which the members and beneficiaries affected are entitled shall be paid out in the following order:

(1)  concurrently, amounts representing

(a)  the value of benefits accrued under the plan, other than those referred to in subparagraph 4, up to the date of termination;

(b)  the value of additional voluntary contributions paid into the pension fund or to the insurer, as the case may be, up to the date of termination, with interest accrued to that date; and

(c)  the value of amounts received by the pension plan following a transfer, even a transfer other than a transfer under Chapter VII, with interest accrued to the date of termination;

(2)  the amount representing the value of any benefit reduction pursuant to section 216;

(3)  the interest on the amounts referred to in subparagraphs 1 and 2, calculated in accordance with section 217;

(4)  the value of benefits payable to members, at the date of termination, under pension plan terms granting them compensation for cessation of their continuous employment due to technological or economic changes in the employer’s enterprise or to the division, merger, alienation or closing down of the enterprise, with interest calculated in accordance with section 217.

If the assets are insufficient for the full satisfaction of the rights of the members and beneficiaries affected that are collocated in the same rank, payment shall be made proportionately to the value of their accrued benefits.

1989, c. 38, s. 218; 1992, c. 60, s. 31; 2000, c. 41, s. 126.

1993-01-01

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.

1990-01-01

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 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 concurrently:

(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.

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

1989, c. 38, s. 218.