R-15.1, r. 7 - Regulation respecting the exemption of certain categories of pension plans from the application of provisions of the Supplemental Pension Plans Act

Section 65 Disposition versions

2017-09-21

65. This division refers to a pension plan called a “member-funded pension plan”, which has the following characteristics:

(1)  it is a defined benefit pension plan that sets in advance the employer contributions and the normal pension or their calculation method;

(2)  it came into effect after 15 March 2007;

(3)  it provides that the cost of the plan’s commitments, less the employer contribution fixed in the plan, is the sole responsibility of the plan’s active members;

(4)  it contains a provision whose effect is to prevent the employer who is party to the plan, or in the case of a multi-employer plan, even not considered as such under section 11 of the Act, the employers jointly or any one of them, from directly or indirectly amending or terminating the plan unilaterally;

(5)  it provides who may terminate the plan and under what conditions;

(6)  it provides that, for the purpose of respecting taxation rules, surplus assets may be appropriated to the payment of a contribution;

(7)  it may not contain provisions that, in a defined benefit pension plan, are identical to those of a defined contribution plan;

(8)  it stipulates that the members and beneficiaries alone are entitled to any surplus assets determined upon termination of the plan and that such assets shall be distributed among them pro rata to the value of their benefits;

(9)  it stipulates that the members and beneficiaries affected by the withdrawal of an employer party to a multi-employer plan have the same rights with respect to the surplus assets allocated to their benefits group as the members and beneficiaries affected by the termination;

(10)  it provides a rule to determine the date of withdrawal of an employer party to a multi-employer plan;

(11)  it provides that the benefits to be paid are calculated by multiplying their value by the degree of solvency of the plan even where the degree of solvency exceeds 100%.

O.C. 159-2007, s. 5; O.C. 833-2017, s. 2.

2012-09-01

65. This division refers to a pension plan called a “member-funded pension plan”, which has the following characteristics:

(1)  it is a defined benefit pension plan that sets in advance the employer contributions and the normal pension or their calculation method;

(2)  it came into effect after 15 March 2007;

(3)  it provides that the cost of the plan’s commitments, less the employer contribution fixed in the plan, is the sole responsibility of the plan’s active members;

(4)  it contains a provision whose effect is to prevent the employer who is party to the plan, or in the case of a multi-employer plan, even not considered as such under section 11 of the Act, the employers jointly or any one of them, from directly or indirectly amending or terminating the plan unilaterally;

(5)  it provides who may terminate the plan and under what conditions;

(6)  it provides that the employer may, for the purpose of respecting taxation rules, appropriate surplus assets to the payment of the employer contribution;

(7)  it may not contain provisions that, in a defined benefit pension plan, are identical to those of a defined contribution plan;

(8)  it stipulates that the members and beneficiaries alone are entitled to any surplus assets determined upon termination of the plan and that such assets shall be distributed among them pro rata to the value of their benefits;

(9)  it stipulates that the members and beneficiaries affected by the withdrawal of an employer party to a multi-employer plan have the same rights with respect to the surplus assets allocated to their benefits group as the members and beneficiaries affected by the termination;

(10)  it provides a rule to determine the date of withdrawal of an employer party to a multi-employer plan.

O.C. 159-2007, s. 5.