Sale of the company

Here is some basic information that will help you carry out your role regarding the pension plan in effect in your company, in conformity with the provisions of the Supplemental Pension Plans Act.

Possible effects of the sale on the pension plan

• Change of employer responsible for the plan
• Merger of the plan (2 or more plans amalgamated into a single plan)
• Division of the plan (the plan is divided into two or more parts, for example, a plan for unionized employees and another for non-unionized employees)
• Other amendments required to the pension plan 
• Termination of the plan

Simplified Pension Plan

Possible effects

• Amendment of the SIPP
• Termination of the SIPP

Steps to take

• Give written notice to:

  • the financial institution that administers the plan
  • the union (if any)

Defined contribution or defined benefit plan

Possible effects

• Amendment of the defined contribution or defined benefit plan
• Termination of the defined contribution or defined benefit plan

Other changes that may effect a pension plan

• Merger
• Restructuring
• Closure
• Bankruptcy protection
• Bankruptcy