Variable employer contributions
In a defined contribution plan or in a simplified pension plan (SIPP), the employer contributions can vary depending on the number of years of employment or credited service if Retraite Québec gives its approval. The plan must, however, specify whether it is the number of years of employment or the credited service that will be taken into consideration.
To obtain Retraite Québec's approval, the variable employer contributions must allow a gradual and relatively constant accumulation of employer contributions to be credited to the member. If it respects the criteria in this section, it will be approved by Retraite Québec. Examples of how the criteria are applied are provided to facilitate your comprehension.
A formula for variable employer contributions that has already been approved by Retraite Québec will not be called into question. However, if the formula is changed, Retraite Québec will approve it provided it respects the criteria in this section.
The rules for variable employer contributions also apply to the defined contribution component of a defined benefit plan.
Employer contributions that vary based on parameters other than the numbers of years of employment or credited service do not require Retraite Québec's approval. However, employer contributions cannot contravene laws such as the Charter of Human Rights and Freedoms, the Act respecting labour standards, the Civil Code of Québec, etc.
Supplemental Pension Plans Act (section 57)