Payment of benefits to plan members and beneficiaries
Prescribed time limit for payment of benefits
The plan administrator must pay benefits to members and beneficiaries between
30 and 60 days after receipt of the termination report by
Retraite Québec. In other words, the administrator must wait 30 days before paying benefits.
Worth knowing about...
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.
Postponement of the payment of benefits
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.
Advence of funds to plan members and beneficiaries
The plan administrator can:
- continue to pay pensions that were already in payment on the termination date or early benefits already scheduled on the termination date
- start payment of pensions that become payable after the termination date.
However, if the plan is not solvent, the administrator must get
Retraite Québec's consent prior to making payments.
Other types of advances
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:
- the plan's pension fund has poor returns
- amounts that were supposed to be paid by the employer will not be collected because of bankruptcy
- the termination report contains an error or an omission.
Untraceable persons and
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 amounts owing to those persons to
Revenu Québec .
The plan administrator may only remit the amounts owing 3 years after expiry of the
90-day period. However, it can proceed before that 3-year period has passed if
all that is left to do is pay the benefits of such untraceable members and beneficiaries.
90-day period starts on the date the plan administrator receives the notice of termination from the employer or
Retraite Québec's decision to terminate the plan.
Retraite Québec informed as to how the situation progresses!
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.