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Duties of the plan administrator

Pension plan administration involves:

Financial duties

The financial duties include:

  • ensuring that employer contributions and member contributions, if any, are paid into the pension fund within the prescribed period and that the amounts received correspond to the amounts prescribed by the plan and, if applicable, actuarial valuation report;
  • paying pensions and benefits, refunding or transferring accrued benefits;
  • adopting an investment policy adapted to the plan's characteristics and financial obligations;
  • monitoring investments and ensuring that they respect the plan's investment policy;
  • in the case of a defined contribution plan in which members make the investment choices, ensuring that at least three investment options are offered by the pension plan. The options must have different degrees of risk and expected rates of return, which will allow the creation of portfolios that are generally well adapted to the members' needs;
  • having the pension fund's financial report or financial statements audited by an accountant, except in the following cases, where a plan is exempt from an audit:
    • an insured pension plan This link will open in a new window.;
    • a simplified pension plan (SIPP);
    • a pension plan whose asset market value is lower than $5 million, where members and beneficiaries were informed in advance of the audit exemption at the annual meeting;
  • filing an annual information return with Retraite Québec and the Canada Revenue Agency
  • for a defined-benefit plan or a target-benefit plan, having the required actuarial valuation prepared by an actuary and filing the actuarial valuation report with Retraite Québec and the Canada Revenue Agency. The purpose of the actuarial valuation is to determine the funding required for the plan until the next actuarial valuation and to assess the plan's financial situation on a funding basis (going concern), and on a solvency basis (termination of the plan).

Administrative duties

The administrative duties include:

  • ensuring that eligible workers become members of the plan. In order for the administrator to be able to perform this duty, the employer must provide the necessary information on these persons;
  • ensuring that plan members and beneficiaries receive the statements and other information provided for under the Supplemental Pension Plans Act;

    Worth knowing about...

    Information and documents can be sent electronically. As a precautionary measure, the administrator should apply the guideline number 2 – Electronic Communication in the Pension Industry This link will open in a new window. from the Canadian Association of Pension Supervisory Authorities (CAPSA).

  • answering questions from plan members and beneficiaries about their rights and obligations;
  • holding an annual meeting, to which the members, beneficiaries and the employer are called, to report on the pension plan's administration;

    Worth knowing about...

    The annual meeting may be held via videoconference or any other means of electronic communication. However, the plan's internal bylaws should indicate as such.

  • requesting the registration of the amendments to the plan with Retraite Québec and the Canada Revenue Agency;
  • recommending amendments to the plan to the person who has the authority to amend it, for example when certain provisions are unclear. The authority to amend the plan generally belongs to the employer, or to the employer and the union;
  • selecting service providers (accountant and others) and monitoring their work.

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