The plan administrator must pay benefits to members and beneficiaries between the 30th and 60th day after Retraite Québec has received the termination report. In other words, the administrator must wait 30 days before paying benefits.
The acknowledgement of receipt for the termination report that Retraite Québec sends indicates the date on which the administrator can pay benefits.
The 30-day waiting period imposed on the administrator for paying benefits allows Retraite Québec to read the termination report and demand corrections, if necessary.
Retraite Québec has the power, in some cases, to order the administrator to postpone payment of benefits, for example, to get certain details about the termination report.
When the situation arises, Retraite Québec informs the administrator of the new waiting period for payment of benefits.
Retirees and beneficiaries' annuities may be purchased from an insurer before the date as of which benefits may be paid. For example, they may be purchased between the termination date and the date on which the termination report was prepared. However, the purchase of those annuities will be considered as payment of benefits only as of the date on which benefits may be paid.
The plan administrator can:
However, if the plan is not solvent, the administrator must get Retraite Québec's consent prior to making payments.
The Supplemental Pension Plans Act does not make any provision either allowing or forbidding advances of funds.
If the administrator decides to make advances of funds, it must assume the risk. Thus, the plan administrator is responsible for recovering overpayments to members and beneficiaries, if, for example, it turns out that:
If the administrator is still unable to trace missing plan members or beneficiaries even after taking the proper step, including contacting Retraite Québec, the administrator must remit the amouts owing to those persons to Revenu Québec within the prescribed time.
Although Retraite Québec no longer has to formally revoke a pension plan's registration after its termination, we appreciate being informed of your progress, especially with respect to pension fund liquidation until a final settlement.
