PrintInformation for Members and Beneficiaries
Administering a pension plan requires ongoing communication with members and beneficiaries to inform them of their rights and obligations and explain how the pension plan works and how it is administered. Members and beneficiaries need a variety of complex information on which to base their decisions.
To meet its obligations, a pension committee must satisfy all legal requirements and act in a prudent, competent and diligent manner.
To do so, it must make sure that members and beneficiaries receive all the information required under the
Supplemental Pension Plans Act. In addition, all committee communications must respect the rules set out in other laws, specifically those regarding the protection of personal information. They should also take into account jurisprudence, pension plan governance standards and any rules set out in the plan text.
To ensure the sound administration of a pension plan, the pension committee's internal bylaws must specify standards for communicating with members and beneficiaries regarding services provided by the committee. They should also outline standards regarding the reliability and clarity of the information communicated.
In addition to making pension plan administration a more transparent process, effective communication has a number of other benefits. In particular, it allows members to:
- make informed decisions regarding financial planning for retirement
- better understand how a pension plan works and recognize its importance
- have confidence in the plan and its administration.
Also, if the situation requires, members and beneficiaries should be given the assistance they need to fully understand the consequences of their choices.
This part of the collection presents the key information that must be given to members and beneficiaries under the
Supplemental Pension Plans Act and the
Regulation respecting supplemental pension plans. What information must be provided? To whom? When? How? A helpful table summarizes the information that must be communicated with respect to each of the key elements set out in the
Supplemental Pension Plans Act.
This part of the collection also describes a few rules and principles of effective communication, including communication methods and the language of communication.
A list of the relevant sections of the
Supplemental Pension Plans Act and the ensuing regulations is provided in the
References section.
Information about the pension plan
The pension committee must provide entitled parties with general and specific information about the pension plan. Whether this information is provided verbally or in writing, on paper or electronically (see
Methods of Communication), it must be reliable and clear.
Inaccurate or imprecise information can be detrimental to members and beneficiaries. That is why it is so important for the pension committee to establish rules in its internal bylaws to meet its legal obligations and reduce the risk of error.
General information about the pension plan
General information about the pension plan is designed to inform concerned parties about the provisions of the pension plan.
Summary of the pension plan
The summary of the pension plan, or information booklet, is of key importance. It is often the only document given to eligible workers and members to familiarize them with the plan, as well as with their rights and obligations.
The summary should be written in plain language, be easy to read and understand, and accurately describe the provisions of the pension plan. The full plan text cannot be given in place of the summary.
Written summary of the pension plan
What is it?
A written summary of the provisions of the pension plan.
What information must be provided?
The summary must contain the following information:
- a description of the main provisions of the pension plan, including membership conditions, contributions payable, the various benefits, the rules for exercising the right to transfer, the types of fees payable by members, and the rules that apply when members choose their own investments
- a brief description of members' rights and obligations
- the main advantages of membership in the plan.
To whom?
- Eligible workers (employees belonging to the group of workers covered by the plan who have not yet joined it).
- Members, whether plan membership is optional or compulsory.
When?
The summary must be provided within 90 days following the date on which:
- a worker becomes eligible for the plan
- the pension plan was registered with the Retraite Québec.
How?
Distributed individually.
The summary must be
updated to take into account amendments to the pension plan and the
Supplemental Pension Plans Act. The committee should establish rules to make sure that it is reviewed on a regular basis.
Information regarding amendments
The pension plan is a contract under which members receive benefits according to the terms outlined therein. The
Supplemental Pension Plans Act provides for various methods of informing members, as well as beneficiaries where applicable, of anticipated amendments to the contract.
The information that the pension committee must provide varies depending on the type of amendment and its impact on member and beneficiary benefits.
Notice of amendment
A pension committee that is planning to apply for the registration of an amendment to the plan text must inform members by sending a notice of amendment.
This notice allows members to keep abreast of any changes that could affect their benefits.
Notice of amendment
What is it?
A written notice indicating the planned amendments to the pension plan.
What information must be provided?
The notice must:
- state the purpose and effective date of the amendment
- specify that the text of the amendment can be examined at the pension committee's office
andat the employer's offices if they are located no more than 150 km from the members' place of work. If the employer has no offices within that distance, the notice must specify that members can obtain a copy of the amendment without charge upon written request.
Supporting documents are often enclosed with the notice to explain the impact of the amendments on member benefits.
To whom?
Active and non-active members.
If the amendment is established by collective agreement, the committee is not obligated to notify the employees covered by the agreement because they were informed when they adopted the agreement.
When?
Before filing an application for registration of the amendment with Retraite Québec.
(A copy of the notice of amendment must be enclosed with the application for registration.)
How?
- Distributed individually
or
- published in a daily newspaper circulated in the areas where at least half the active and non-active members live
or
- posted in plain view in the employer's establishment, for active members.
Exception
Individual notice must be given to all members for amendments concerning the following:
- a reduction in benefits
- the merger of the plan with another plan
- the division of the plan
- the allocation of surplus assets during the plan's existence
- the appropriation of surplus assets upon plan termination.
Amendments for which members and beneficiaries must be consulted
The pension committee must consult members and beneficiaries before applying to register certain amendments.
Generally speaking, the consultation process is designed to give active members, non-active members and beneficiaries an opportunity to share their views on the proposed amendment.
The pension committee must consult the members and beneficiaries for amendments to the plan involving the following:
- the allocation of surplus assets during the plan's existence
- the appropriation of surplus assets upon plan termination.
Similarly, if 2 plans are to merge, the members and beneficiaries of the plan that will be merged into the other (the exporting plan) must be consulted in the following cases:
- if the consequences of the plans' provisions concerning the allocation of surplus assets during the plan's existence are not identical
- if the consequences of the plans' provisions concerning the appropriation of surplus assets upon plan termination are not identical
- if the provisions of the importing plan are less advantageous with respect to the appropriation of surplus assets upon plan termination.
Special conditions apply for multi-employer plans with negotiated contributions, as well as for the defined contribution plans covered by the
Regulation respecting the funding of pension plans of the municipal and university sectors.
The rules governing the consultation process—specifically those regarding the people that the pension committee must consult, the notices that must be sent and the information that must be provided—vary depending on the type of amendment. The
References section lists the relevant sections of the
Supplemental Pension Plans Act and the ensuing regulations for each type of amendment.
Important!
If an amendment to the plan text requires that members and beneficiaries be consulted, and if the pension committee is informed of an association that represents members or beneficiaries (e.g. retirees or managers) in pension plan-related matters, it must send the members concerned a notice indicating the name and address of the association, along with its purpose and membership conditions. Interested members can then contact the association as needed.
Amendments requiring the individual consent of members
Generally speaking, pension plan amendments apply to all affected members, without them having to give their individual consent.
However, for certain amendments, the pension committee must obtain the consent of each member or beneficiary and provide an individual notice of amendment in order for the amendment to apply to that member or beneficiary. Consent must be obtained in the following cases:
- when an
amendment that reduces member benefits takes effect prior to the date on which the notice is sent or prior to the effective date of the collective agreement, the arbitration award or the decree establishing the amendment
- the
conversion of a defined benefit plan into a defined contribution plan.
The information provided must help members and beneficiaries understand what they are consenting to. This is why they are usually invited to meetings where they can receive additional information and ask questions.
Retraite Québec may set special conditions before approving amendments of conversion, employer substitution, division or merger.
Important!
Before registering an amendment that requires the individual consent of members and beneficiaries, Retraite Québec must make sure that sufficient information was provided. To that end, the required consents must be included with the application for registration of the amendment.
Annual summary of amendments
To give members and beneficiaries a general overview of pension plan amendments, the pension committee must provide them with an annual summary of amendments.
Annual summary of amendments
What is it?
A summary of amendments made to the pension plan
during the last fiscal year.
What information must be provided?
The summary must contain a simple description of the amendments made to the plan during the fiscal year and the rights and obligations arising therefrom.
It can also refer members and beneficiaries to the notice of amendment for additional information.
To whom?
Active and non-active members and beneficiaries.
When?
At the same time as the annual statement, no later than
9 months following the end of each fiscal year of the plan.
How?
Distributed individually.
Annual meeting
Like anyone who administers another person's assets, pension committees must give an account of their actions. As the key democratic component of the plan, the annual meeting gives interested parties an opportunity to designate pension committee members in accordance with the method of their choice or the method proposed by the committee.
Annual meeting
What is it?
A meeting during which the pension committee reports on its administration of the pension plan, and participants designate committee members.
What information must be provided?
During the annual meeting, the pension committee must do the following:
- present the plan's activities during the last fiscal year, reporting on the plan's financial situation, the main amendments, matters of day-to-day administration and interest entered in the register
- allow active members, non-active members (including retirees) and beneficiaries to designate pension committee members with or without voting rights
- in the case of a defined benefit plan, address the main risks associated with the plan's funding established in the funding policy and the measures taken in the last fiscal year to administrate them
- in the case of a defined contribution plan, report on the annuity purchases made under the annuity purchase policy since the last annual meeting.
To whom?
Active and non-active members, beneficiaries and the employer.
When?
The meeting must be:
- called within 9 months of the end of the fiscal year of the plan
- held a reasonable time after the notice of meeting is sent.
How?
Notice of meeting distributed individually.
The pension committee is responsible for organizing the annual meeting. Its internal bylaws should contain provisions to encourage attendance and ensure a transparent process. The following examples provide some useful tips.
Ways of encouraging attendance:
- use videoconferencing or other information technologies
- include the benefits of attending in the notice of meeting (e.g. participants can find out information, ask questions, exercise their right to vote, if applicable)
- place meeting reminders in the employee newsletter, on the company's website, on pay slips or on retirement pension payment statements
- pair the meeting with another event (e.g. staff meeting, training day, recreational activity)
- provide information about certain aspects of the plan (e.g. right to transfer benefits, death benefits)
- gather ideas from members and beneficiaries about topics to address, and invite a speaker to discuss retirement-related subjects
- encourage members and beneficiaries to ask the committee questions ahead of time and answer them at the meeting.
If there are members and beneficiaries in different areas:
- hold the meeting at different times and at different locations
- hold the meeting at a different location each year and give members and beneficiaries who cannot attend the text of the presentation given at the meeting, with a list of the questions asked and the answers given.
Ways of ensuring a transparent process:
- draft minutes of the meeting and make them available for consultation
- schedule a question period for members and beneficiaries.
Consultation of pension plan documents
The pension committee must give certain individuals an opportunity to consult the pension plan documents. This right is often set out in the written summary of the plan.
Consultation of pension plan documents
What is it?
An examination of the plan text and other documents prescribed by regulation.
What information must be provided?
The following documents must be available for consultation:
- the plan text and the amendments in effect for the period during which the worker is a member
- the document governing plan-related working conditions (e.g. the collective agreement)
- the pension committee's internal bylaws
- the investment policy
- the acts of delegation of the pension committee's powers
- the framework agreement concerning the transfer of benefits between pension plans
- the funding policy
- the recovery plans of the pension plan
- the annual information returns and financial reports or financial statements
- the actuarial valuations sent to Retraite Québec
- the employer's written acknowledgement of the obligations incumbent
- upon it under the plan or an amendment
- the plan's annuity purchasing policy
- correspondence between Retraite Québec and the pension committee in the 60 months prior to the request, with the exception of correspondence involving another worker, member or beneficiary.
To whom?
Eligible workers, active and non-active members and beneficiaries.
A member's spouse, upon presentation of an application for separation from bed and board, divorce or marriage annulment, or for the dissolution or annulment of a civil union.
When?
Within 30 days following a written request to the pension committee.
How?
In person: At the office of the pension committee or at the establishment of the employer designated by the committee, whichever is closer to the applicant's residence.
The documents can be consulted during regular business hours.
By email or mail: At its discretion, the pension committee may opt to send a copy of the document directly to the applicant.
Important!
The pension committee cannot charge consultation fees. If the committee decides to send the applicant a copy of the document in question, it must do so free of charge.
However, if the same person makes more than one request in any 12-month period, fees may be charged for sending copies and any subsequent consultations.
Information about the individual benefits of members and beneficiaries
Members and beneficiaries are entitled to information about their individual benefits under the plan. Members normally make decisions based on this information, specifically in regard to financial planning for retirement.
Annual statement
The annual statement allows members and beneficiaries to track their benefits under the pension plan and verify the accuracy of the information concerning them. It also informs them of the plan's financial situation.
Annual statement
What is it?
A document detailing the member's or beneficiary's benefits and the pension plan's financial situation
during the last fiscal year.
What information must be provided?
The
first part of the annual statement presents the benefits accumulated.
The information it contains varies depending on whether the person is an active or non-active member or a beneficiary, as well as on the type of pension plan.
In the case of a defined benefit plan, the annual statement indicates the following:
- member contributions paid in the last fiscal year, with interest
- all member contributions paid since the start of membership, with interest
- the interest rate credited to member contributions in the last fiscal year
- the annual pension payable at the normal retirement age
- years of service credited for the calculation of the normal pension
- remuneration taken into account in the calculation of the normal pension
- the contact information for the plan and pension committee's resource person
- the benefits that remain to be paid at the end of the fiscal year, and the year or years in which payments will have to be made.
Every 3 years, the statement also indicates the value of benefits that can be transferred, along with the payment rules.
In the case of a defined contribution plan, the annual statement indicates the following:
- employer contributions paid in the last fiscal year
- member contributions paid in the last fiscal year, with interest
- all member contributions paid since the start of membership, by type, with interest
- the interest rate credited in the last fiscal year
- the contact information for the plan and pension committee's resource person.
The
second part of the annual statement covers the plan's financial situation.
In the case of a defined benefit plan, the annual statement indicates the following:
- employer contributions paid during the fiscal year
- the amounts recognized under
section 42.2 of the
Supplemental Pension Plans Act
, i.e. the "bankers clause" - the surplus assets and their use
- the plan's degree of solvency and funding level, as well as the target level of the stabilization provision.
The annual statement for a defined contribution plan has no second part, unless the plan has surplus assets. The surplus assets must then be indicated along with the portion used to pay employer contributions and the portion use to fund an amendment to the plan.
To whom?
Active and non-active members and beneficiaries.
When?
Within
9 months following the end of each fiscal year of the plan.
How?
Distributed individually.
Important!
When the pension committee is informed of an
association that represents members or beneficiaries (e.g. retirees or admnistrators) in pension plan-related matters, it must enclose with the annual statements sent to the members concerned a notice indicating the name and address of the association, along with its purpose and membership conditions. Interested members can then contact the association as needed.
Such an association can also ask the pension committee to provide it with a list of the names and addresses of the members and beneficiaries it represents. The committee must then ask the individuals in question for their consent before personal information can be provided. A notice to this effect must be enclosed with the annual statement sent to members and beneficiaries or with the statement of cessation of active membership, if it is sent before. Once the committee has provided an initial list, the notice is sent only to new members or beneficiaries represented by the association.
Statement of variable benefits
In the case of a defined contribution plan or a defined benefit plan that includes defined contribution provisions, non-active members or their surviving spouses can receive variable benefits directly from the funds they hold. The plan must provide for payment of such benefits.
Non-active members or their spouses set the income to be received as variable benefits for each calendar year, taking the following limits into account:
- The maximum amount of variable benefits is the maximum income from a
life income fund (LIF).
- The minimum amount of variable benefits is the same amount as established for a defined contribution plan. The minimum amount is nil before the age of 71.
Statement of variable benefits
What is it?
A statement indicating the fund balance at the beginning of the calendar year, as well as the minimum and maximum amount of variable benefits that can be withdrawn during the calendar year.
What information must be provided?
The statement provides mainly the following information:
- the fund balance at the beginning of the calendar year and a reconciliation of this amount with the amount at the beginning of the previous calendar year
- the maximum amount of variable benefits that can be withdrawn
- the minimum amount of variable benefits that can be withdrawn
- if applicable, the payment conditions for temporary variable benefits.
To whom?
Non-active members or, if they are deceased, their spouses.
When?
At the beginning of the calendar year.
How?
Distributed individually.
Statement of cessation of active membership
The statement of cessation of active membership, also called the "termination statement", provides information about the benefits a member has accumulated in the pension plan and how they may be used.
Statement of cessation of active membership
What is it?
A statement indicating a member's benefits at the time of cessation of active membership (e.g. end of employment, retirement, death) and applicable payment methods.
What information must be provided?
The information it contains varies depending on the member's situation, for example, whether he or she is entitled to a normal pension, an early pension or a deferred pension, or if he or she is deceased.
The statement provides mainly the following information:
- the benefits accumulated in the plan from the beginning of the current fiscal year to the end of active membership, including member contributions with accrued interest
- the amount that can be refunded
- the nature and
value of the accrued benefits, for example:
- in the case of a defined benefit plan, a deferred pension of $30 000 annually with a total value of $175 000
- in the case of a defined contribution plan, $110 000 covering the employer and member contributions accumulated in the member's account, with interest
- the nature of and the requirements for entitlement to other benefits (e.g. early pension payable as of age 55 with an actuarial reduction of 6% per year)
- the mention that the plan is subject to an annuity purchasing policy
- the personal information used to determine the member's benefits, with the mention that he or she must have the information corrected if it is inaccurate.
To whom?
Members or, if they are deceased, the people entitled to a refund or benefit.
When?
Within 60 days following the date
on which the committee is informed that the member's active membership has ceased.
How?
Distributed individually.
The pension committee must provide, free of charge, the information used to compile the statement within 30 days of receiving a written request from the member or another person entitled to a refund or benefit. The committee must also provide, free of charge, an updated statement within 60 days of receiving a written request from the member.
Important!
When the value of the benefits established on the date of a member's cessation of active participation is less than 20% of the maximum pensionable earnings (MPE), i.e. $11 740 in 2020,this person is entitled to a refund of his or her benefits. The pension plan administrator may decide to reimburse the member even if he or she has not requested reimbursement. The administrator must then notify the member of the decision, and the member will have 30 days to indicate how he or she wishes the benefits to be paid (e.g. deposit to an
RRSP, cash payment).
If the member does not so indicate, the administrator will decide how the benefits will be paid (e.g. cash payment). The notice sent to the member must indicate this possibility.
Important!
When a pension payable under a pension plan is
directly or indirectly integratedwith a public plan, such as the Québec Pension Plan or the Canada Pension Plan,
all documents regarding plan benefits or their calculation must indicate the applicable reduction and the method used to calculate it.
These documents include the plan summary, the various statements and all other information that is not required under the
Supplemental Pension Plans Act (e.g. pension estimates).
This requirement must be met, whether the information is provided by the pension committee or by another party (e.g. the employer).
Forms to facilitate decision making
All pension plan members and, on occasion, their spouses have to make choices at one time or another, for example, at retirement. Some pension committees provide members and their spouses with forms to inform them of their choices and help them make decisions.
Since the decisions to be made can have a significant impact on the benefits of members and their spouses, they should also be offered the assistance of capable persons to explain the different options, answer their questions and make sure they understand the consequences of their choices, specifically where the spouse renounces his or her benefits.
This assistance for members and their spouses is not explicitly provided for in the
Supplemental Pension Plans Act. However, it is a good administrative practice.
Choice of options form
When a member ceases to be an active member, it is common to enclose a choice of options form with the statement of cessation of active membership. This administrative document indicates the various payment options.
It is usually given to the member or any other person, specifically a spouse, who has a choice to make in the following situations:
- at the end of employment
- at retirement
- in the event of death
- when an application for partition of pension plan benefits following the breakdown of a union is filed with Retraite Québec (see
Breakdown of a union).
The information on the form must be adapted to the situation. For example, if the member can transfer his or her benefits, the form must indicate the potential transfer instruments. If the member is entitled to an immediate pension, the form must indicate the various types of pension to choose from (guaranteed, temporary, indexed, etc.).
Waiver of spousal benefits
A member's spouse can at any time
waive the benefits to which he or she is entitled under the
Supplemental Pension Plans Act in the event of the member's death. To do so, the spouse must notify the pension committee of the waiver in writing. The committee can provide the spouse with a waiver form but cannot require that it be used.
The waiver must be signed by the spouse and contain the following information:
- the date of the declaration
- the name and address of the member and the spouse who is waiving spousal benefits
- the name of the member's pension plan and its registration number with Retraite Québec
- the name of the member's employer
- the benefit that the spouse is waiving (pre-retirement death benefit, joint and survivor pension or benefits in case of retirement pension postponement).
A spouse who waives spousal benefits can
revoke the waiver. He or she must notify the pension committee in writing before the member's death or before payment of the pension begins. The committee can provide a form for this purpose but cannot require that it be used.
Member investment choices
In a defined contribution plan where members choose their own investments, the pension committee's communications must take into account the
Canadian Association of Pension Supervisory Authority (CAPSA)'s Guideline no. 3 respecting capital accumulation plans .
The recommendations in this guideline reflect best practices in the field. Their goal is to ensure that members have the information and support they need to make wise investment choices. They cover the following topics:
Breakdown of a union
When there is a breakdown of the union between a pension plan member and
his or her spouse, the
Supplemental Pension Plans Act and the
Regulation respecting supplemental pension plans stipulate the following:
- the information that the pension committee must provide the married, civilly united or de facto couple
- the rules for valuating member benefits under the plan
- the procedure for partitioning the member's benefits under the pension plan.
Statement of member benefits
To make informed decisions regarding the partitioning of their assets, members and their spouses are entitled to receive a statement of member benefits under the pension plan at the breakdown of their union.
The application for a statement of benefits can be filed jointly or by one of the spouses. The application must be accompanied by documents or certificates proving certain information, such as the date of marriage, the date of the end of marital life or the date of the application for divorce.
Statement in the event of the breakdown of a union
What is it?
A statement indicating the member's benefits under the pension plan and their value on the date of the breakdown of the union.
What information must be provided?
The statement provides the following information:
- for married, civilly united or de facto spouses, the total value of the member's benefits under the plan
- for married or civilly united spouses, the value of the benefits that the member accumulated under the plan during the marriage or civil union; these benefits are part of the family patrimony
- the information used for the calculations, how the benefits can be partitioned and the rules respecting the calculation of interest added to the amount owing to the spouse.
To whom?
Members and their spouses.
When?
Within 60 days following receipt of a written application by the pension committee.
The application can be made:
- by married spouses upon presentation of an application for separation from bed and board, divorce or annulment of marriage, or on the occasion of mediation
- by civilly united spouses upon presentation of an application for the dissolution or annulment of the civil union, during a joint notarial process to dissolve the civil union, or on the occasion of mediation;
- by de facto spouses once they have stopped living together.
How?
Given to each spouse.
The pension plan may stipulate fees for producing the statement of benefits and partitioning the benefits. These fees cannot be higher than the limits set in the regulations.
Application for the partition of benefits
For a member's benefits to be partitioned, one or both spouses must file a written application with the pension committee.
For married couples, the application for partition may be filed once the deadline to appeal the judgment (divorce, separation of bed and board, annulment) has expired, i.e. 30 days after the judgment date.
For civilly united couples, the application for partition may be filed once the deadline to appeal the judgment (dissolution, annulment) has expired, i.e. 30 days after the judgment date, or once the notarized contracts (declaration of dissolution and transaction contract) have been signed, as the case may be.
For de facto couples, the application for partition may be filed once an agreement concerning the partition of benefits accrued under the pension plan has been reached.
The application must include the required documents, specifically the judgment or notarized contracts, or the agreement concerning the partition of benefits.
The time frame for partitioning varies depending on whether the application was filed jointly.
Important!
Forms are available to help spouses apply to the pension committee for a statement of member benefits and the partition of benefits.
Withdrawal of an employer and pension plan termination
The withdrawal of an employer from a multi-employer pension plan and the termination of the pension plan require that the benefits of members and beneficiaries be liquidated. The pension committee must follow special rules to inform members and beneficiaries of their rights.
Withdrawal of an employer from a multi-employer pension plan
When an employer withdraws from a multi-employer plan, the pension committee must inform members, following the same rules as for a notice of amendment.
In addition, the committee must send the members and beneficiaries affected by the employer's withdrawal an individual notice informing them of benefit payment options and the plan's degree of solvency.
Termination of the pension plan
The termination of a plan requires that the pension fund be liquidated. The
Supplemental Pension Plans Act sets out the steps to take to pay the benefits of members and beneficiaries. In particular, the
Supplemental Pension Plans Act indicates the information that the pension committee must provide.
Generally speaking, the employer can decide to terminate the pension plan. To make its decision known, the employer must send a
notice of termination to members, the union, beneficiaries and the pension committee.
Retraite Québec can also terminate a plan, in particular if the employer fails to pay its contributions. It will then inform the pension committee of its decision, and the committee must immediately send a copy of the decision to members, the employer, the union and beneficiaries.
Once it has been notified of the termination of the plan, the pension committee must send members and beneficiaries a statement of their benefits as at the termination date. The
statement of termination informs them of the value of their benefits, payment options and the plan's general financial situation. The committee must also publish a notice in a daily newspaper inviting all those who believe they have rights under the plan and who have not received a statement to make their claim to the committee.
For further information about the pension committee's duties during the employer's withdrawal from the plan or the termination of the pension plan, consult the relevant sections of the
Supplemental Pension Plans Act and the ensuing regulations in the
References section.
Rules of effective communication
The pension committee can use various methods to communicate with members and beneficiaries, for example, by regular mail, in person or using another method provided for in the
Supplemental Pension Plans Act, such as publishing a notice in a daily newspaper or posting a notice in the workplace. It can also use electronic means of communication.
When the
Supplemental Pension Plans Act provides for a specific means of communication, such as publication of a notice in a daily newspaper, the committee can choose to notify members and beneficiaries using the paper or electronic version of a daily newspaper.
Electronic communications are governed by the
Civil Code of Québec and the
Act to establish a legal framework for information technology (CQLR, c. C-1.1). For an electronic document to be considered the same as a paper document, the
integrity of the document must be ensured.
In addition,
CAPSA Guideline no. 2 entitled
Electronic Communication in the Pension Industry makes general
recommendations to guide pension committees. It indicates the following:
- The requirement to provide information in writing may be satisfied by electronic communication. However, the committee must provide a paper copy of all documents that could not be sent electronically and to all those who request one.
- Recipients are deemed to have given consent to receiving electronic documentation if they designate an information system, for example, if they provide their email address. Recipients should be informed that they can revoke their consent at any time.
- Recipients must be able to keep electronic documents for future reference.
- When the information being provided is available electronically as well as in paper format, the information provided electronically must be identical in content to the paper version.
- The requirement for information to be transmitted by a specified method must be met. For instance, if legislation requires a notice to be placed in newspapers, sending an email will not suffice.
- Where there is a requirement for a signature, this may be satisfied by an electronic signature.
- A requirement to present an original document may be satisfied by electronic communication.
- A requirement to retain information may be satisfied by retaining it electronically.
- Electronic communication must be retained in the format in which it was made, sent or received, or in a format that accurately reflects the information contained in the original communication.
- Information can be provided through a website or other electronic tools. The committee must notify recipients of the release of such information. This notification must include all relevant details on how to access the information.
- Pension committees must address data protection and security challenges by implementing a protocol to protect the security of information that is sent and retained, as well as to retrieve lost or corrupted data. This protocol should be continuously monitored.
- Electronic communications that contain confidential information should be made accessible only to the intended recipients through secure information systems.
Language of communication
The
Charter of the French Language stipulates that French is the official language of Québec. Accordingly, the
employer's communications with its staff, including those concerning the pension plan, must be in French.
Because of its general duties as a trustee, the pension committee should use the language beneficiaries and members are able to understand in its communications with them. As a result, the notices and statements sent to French-speaking members and beneficiaries should be written in French. The internal bylaws should set out the committee's practices in this regard.
Pension committees with members and beneficiaries outside Québec must comply with the linguistic policies in effect for them.
Basic principles to help the pension committee communicate effectively
Jonathan Swift, the author of
Gulliver's Travels, wrote: "Proper words in proper places make the true definition of style." This applies equally well to pension plans.
Below are 8 basic principles that can help the pension committee communicate effectively with members and beneficiaries:
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Plan. Scheduling the information to send to members and beneficiaries will enable the committee to act efficiently.
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Avoid technical terms. Pension plans have their own language, which an ordinary person can have trouble understanding. That is why the pension committee should avoid using terms that are too technical. If technical terms must be used, they should be explained.
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Don't overuse synonyms. Use the same word to avoid confusion. For example, the terms
indexation and
increase in the cost of living may mean the same thing to the pension committee, but they may mean something else to a member.
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Use short sentences. Long sentences are hard to read. Sentences with several clauses separated by conjunctions such as
and and
but are probably too long. Shorten them by making two sentences.
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Use numbered or bulleted lists. If several items must be listed, present them as a list to facilitate reading.
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Anticipate questions. Anticipating members' questions helps make sure that all written communications have the desired effect.
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Avoid mixed messages. The committee should make sure that the information provided is clear and consistent.
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Get help. To ensure they can be understood, the committee can have its texts read by someone who has never seen them, preferably by someone unfamiliar with pension plans. In some cases, it may be best to use the services of a communications specialist.
The pension committee's
internal bylaws should include rules for communicating with members and beneficiaries, particularly with regard to the following subjects:
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risk management measures
(e.g. have the committee's communications prepared by experts)
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internal controls that make it possible to identify errors and irregularities with respect to the law
(e.g. analyze members' and beneficiaries' complaints)
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books and records
(e.g. identify the communications that the committee should retain and documents relating to the plan and its administration that the committee would like to make available to members and beneficiaries)
- the committee's service standards
(e.g. establish response times and deadlines for processing members' and beneficiaries' complaints, ensure the confidentiality of information, set up a website)
See
Internal bylaws in the part of this collection entitled
How a Pension Committee Operates.
References5
Legal references
Relevant sections of the
Supplemental Pension Plans Act and the ensuing regulations:
| Topics (in order of appearance in this part of the collection) |
SPPA |
RRSPP |
|---|
| Summary of the pension plan | 111 | 56.1 |
| Notice of amendment | 26 | |
| Conversion of benefits | 22 | |
| Merger of plans | 196 | 61.1 |
| Amendment reducing benefits | 20 | |
| Annual summary of amendments | 112 | |
| Annual meeting | 166 | 61.0.11 |
| Consultation of pension plan documents | 108, 114, 115 | 60 |
Annual statement: | 112 | |
| Part I | Active members | | 57 |
| Non-active members | | 59 |
Beneficiaries | | 59.0.1 |
| Part II | Financial situation of the plan | | 59.0.2 |
| Notice of the existence of an association representing members or beneficiaries | 113.1 | |
| Request for the names and addresses of the persons represented by the association | 113.2 | |
| Statement of variable benefits | 90.1 | 15.8 and 24 |
| Statement of cessation of active membership | 113 | 58 |
| Integration of plans | 111.1 | |
| Waiver of spousal benefits | 88.1 | 67.7 |
| Statement of benefits in the event of the breakdown of a union | 108 and 110 | 35 and 35.1 |
| Application for partition of pension plan benefits | 107 and 110 | 46 to 50 |
| Notice of employer's withdrawal from the plan | 200 | |
| Notice of termination sent by the employer | 204 | |
| Notice of termination sent by Retraite Québec | 205 and 206 | |
| Statement of benefits in the event of plan termination | 207.3 | 65 |
| Public notice of termination | 207.4 | |
| Pension committee's internal bylaws | 151.2 | |
Other references