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What's New in 2020

COVID-19: Temporary easing measures regarding the administration of supplemental pension plans

In the context of the COVID-19 outbreak, we have implemented 2 temporary easing measures to assist administrators of supplemental pension plans. Once parliamentary proceedings resume, the measures may be subject to specific legislative provisions.

The measures covering supplemental pension plans are:

  • the extension of deadlines for certain regulatory and legal obligations
  • an update to the degree of solvency that must be taken into account for payments (transfers and refunds) under defined benefit pension plans.

General extension of 3-month deadlines

We have extended the deadlines for providing certain documents to Retraite Québec and to members by 3 months, without penalty (additional fees). For more information, see the table below.

Please note that the extension applies to all the deadlines that had not expired by 12 March 2020, but which would have expired in 2020.

Impacts on a plan whose fiscal year ended on 31 December 2019

Supplemental pension plan (SPP) Current deadline Extended deadline
Annual statement for members and beneficiaries30 September 202031 December 2020
Triennial or annual actuarial valuation, actuarial valuation for an amendment to the plan or for the use of excess assets30 September 202031 December 2020
Actuarial valuation for a purchase of annuitiesWithin 4 months of the date of purchaseCurrent deadline + 3 months
Actuarial valuation required by Retraite QuébecWithin 60 days of the date of the valuationCurrent deadline + 3 months
Notice regarding the plan's financial situation30 September 202031 December 2020
Actuarial valuation for a negotiated contribution plan30 June 202030 September 2020
Recovery plan for negotiated contribution plansWithin 18 months of the valuation dateCurrent deadline + 3 months
Application for registration of amendments provided for in the recovery planWithin 24 months of the valuation dateCurrent deadline + 3 months
Annual information return (AIR) and financial report 30 June 202030 September 2020
Notice of annual meeting30 September 202031 December 2020
Termination report Within 90 days of receiving the termination reportCurrent deadline + 3 months
Termination or employer withdrawal report (if the employer is insolvent)Within 120 days of the date of the termination or withdrawalCurrent deadline + 3 months
Supplemental pension plan (SPP) Current deadline Extended deadline
AIR and financial report30 June 202030 September 2020

IMPORTANT: The following deadlines have not been extended:

  • deadline for sending a statement once an employee leaves;
  • deadline for filing a transfer application.

Update to the degree of solvency that must be taken into account for payment (transfers and refunds) under defined benefit pension plans

All payments (transfers and refunds) between 17 April 2020 and 31 December 2020 must take into account a degree of solvency that reflects the plans' current financial situation.

Therefore, the payments must take into account the degree of solvency updated on the last working day of the month preceding the date on which the value of the member's benefits was determined. However, if the date on which the value is determined is prior to 1 April 2020, the degree of solvency must be determined based on the plan's estimated financial situation as at 31 March 2020.

The degree of solvency must be the one estimated by an actuary based on the plan's estimated financial situation, by taking into account, in particular, the real rate of return of the pension fund, changes in interest rates on a solvency basis and contributions that were made since the plan's last complete actuarial valuation. It is not necessary to provide the estimate unless Retraite Québec requests it.

Additional information concerning actuarial valuations as at 31 December 2019

The Supplemental Pension Plans Act provides for the funding of a pension plan to be based on an actuarial valuation that must be produced at least every 3 years. As a result, a plan could choose to produce an actuarial valuation as at 31 December 2019, regardless of whether it is required. The measure is already allowed under the Act and does not require any authorization from Retraite Québec.

Payment of contributions into the pension fund

Despite the current situation, deadlines for making payments into the pension fund (every month) and for notifying Retraite Québec of any unpaid contribution (within 60 days after it becomes due) have not been extended.

Additional information

For all questions regarding the administration of your retirement pension, contact the Direction des régimes complémentaires de retraite by telephone or by email at rcr@retraitequebec.gouv.qc.ca

 

16 April 2020
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