My Account

Your role, powers and responsibilities

As the employer, you have important powers over your simplified pension plan (SIPP). You also have certain responsibilities regarding the financial institution that administers your SIPP and the Supplemental Pension Plans Act This link will open in a new window..

If your company has a union

By means of a power sharing agreement, you can share with the union some of your powers, including, for example:

  • determining the conditions for plan member enrolment and withdrawal
  • determining whether member contributions are locked-in or not locked-in.

Your rights and powers

  • Determining plan characteristics, for example:

    • conditions for member enrolment and withdrawal
    • whether or not members must make contributions
    • the rates for member and employer contributions

    • whether member contributions are locked-in or not locked-in

      • As the employer, you can decide whether or not contributions made by your employees are not locked-in.
      • If there is no employer rule on this point, member contributions will automatically be credited to a locked-in account.
      • You can also decide that member contributions in a not locked-in account may not be withdrawn either until the member ceases to be an active member, or until the member turns 55, whichever comes first.
    • the possibility of making at any time an additional employer contribution for any member in one or several payments; this contribution will be locked-in just like the regular employer contribution
  • Amending the plan's provisions, for example, to reduce or increase your employer contribution; certain conditions must be met.
  • Replacing your SIPP with an SIPP from another financial institution.
  • Terminating your plan; certain conditions must be met.

Locked-in and not locked-in accounts

Under an SIPP, the financial institution that administers the plan opens 2 accounts for each plan member:

  • one account is locked-in because it is intended to ensure the member a retirement income. All regular employer contributions go into this account, as well as any additional employer contributions.
  • the other account is not locked-in. It is for member contributions, if the employer's rules require members to make contributions, as well as any additional voluntary contributions made by the member.

Your responsibilities

  • Inform employees when they become eligible for membership in the plan.
  • Provide the financial institution that administers the SIPP all the required information so that the institution can carry out its functions in accordance with the provisions of the plan and of the Supplemental Pension Plans Act. Among other information, that includes providing the names and addresses of eligible employees and notifying it when members cease active membership.

  • Make contributions to the SIPP in which you participate and remit your contributions and the member contributions to the financial institution. Your employer contributions will be locked-in for the purpose of providing members with a retirement income.

    • You will be able to deduct your employer contributions from your company's income, in the same way as salaries and wages; they will not be subject to payroll taxes.
  • In the absence of a retirement information committee, forward information requests from members to the financial institution and the institution's replies to the members.

To find out more...

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