Régie des rentes du Québec

Termination of a simplified pension plan (SIPP)

As the employer, you have the right to cease participating in a simplified pension plan (SIPP). That is considered to be an "employer withdrawal". You must take certain steps, particularly if the plan members are unionized.

The financial institution that administers your plan also has the right to remove you from the SIPP if, for example, you go bankrupt. The financial institution can also decide to no longer offer the SIPP.

 

You decide to terminate your participation in an SIPP

Step to take before termination

Verify with the union any power sharing agreement to ensure that there is nothing to prevent you from withdrawing from the SIPP at the desired date.

Such an agreement (signed by you and the union) is considered to be an integral part of the SIPP text. However, it does not have to be included in collective agreement negotiations. You must take it into account if you decide to withdraw from the SIPP.

Termination steps


  1. Give written notice to the financial institution that administers the plan, specifying the date of your withdrawal from the SIPP. The financial institution will carry out the administrative and financial details related to termination of the plan.

  2. Give written notice to the union, if any, specifying the date of your withdrawal from the SIPP.

  1. Pay all the contributions required up to the date of your withdrawal. If all the contributions owing have not been paid, the financial institution that administers the SIPP will have to take the measures necessary to collect those contributions and to claim any interest accrued on the unpaid.

    Note: If the employer is unable to pay any of the sums due, because, for example, of bankruptcy, the financial institution will then be forced to reduce the amounts credited to the accounts of the affected plan members.

The financial institution decides to end your participation in the SIPP

Steps to be taken by the financial institution with respect to the employer


  1. Inform you of its decision.

  2. Ensure that all required contributions have been paid up to the date of the termination of your participation.

    If all the contributions owing have not been paid, the financial institution that administers the SIPP will have to take the measures necessary to collect those contributions and to claim any interest accrued on the unpaid.

    Note: If the employer is unable to pay any of the sums due, because, for example, of bankruptcy, the financial institution will then be forced to reduce the amounts credited to the accounts of the affected plan members.

  3. Handle the financial and administrative details related to the termination.

The financial institution decides to stop offering the SIPP

Steps to be taken by the financial institution with respect to the employer


  1. Inform you of its decision.

  2. Ensure that all required contributions have been paid up to the date of the termination.

    If all the contributions owing have not been paid, the financial institution that administers the SIPP will have to take the measures necessary to collect those contributions and to claim any interest accrued on the unpaid.

    Note: If the employer is unable to pay any of the sums due, because, for example, of bankruptcy, the financial institution will then be forced to reduce the amounts credited to the accounts of the affected plan members.

  3. Handle the financial and administrative details related to the termination.


If you want to continue offering an SIPP to your employees

You can transfer the accounts of your employees en bloc to an SIPP offered by another financial institution of your choice. Inform both institutions so that the required administrative steps can be taken.


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