Retraite Québec's authority to terminate a pension plan

Retraite Québec can decide to terminate a pension plan in one of the following circumstances:

  • A plan no longer has any active members
  • The employer fails to collect member contributions or to pay employer or member contributions collected into the pension fund
  • The plan administrator, its delegatee or any other party to the plan fails to comply with an order issued by Retraite Québec.

In the scope of its authority, and unless other factors render plan termination inevitable, Retraite Québec will not terminate a defined benefit pension plan, for example, in one of the following cases:

  • The plan has been divided to retain only retirees and to adopt an investment policy adapted to their situation.
  • The plan has been amended to allow all members to end active membership and join a member-funded pension plan (MFPP).
  • The plan has been amended to allow all members to end active membership and join a target benefit pension plan (TBPP).

However, Retraite Québec can subsequently terminate the plans if circumstances warrant.

Before terminating a pension plan

Retraite Québec will send a written notice to the plan administrator, which has a minimum of 10 days to present observations.

If the plan administrator does not present any new elements, Retraite Québec will render its decision to terminate the plan, confirming the termination date as well as the members and beneficiaries who will be affected.

Once Retraite Québec receives the decision:

  • immediately send a copy of Retraite Québec's decision to terminate the plan to:
    • all the members and beneficiaries affected by the termination
    • the employer
    • the union, if applicable
    • the insurer, if any
  • invite all the above to contact the administrator for information.

Legal references

Sections 205 and 206 of the Supplemental Pension Plans Act This link will open in a new window.

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