The Retraite Québec's authority to terminate a pension plan
Retraite Québec may 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 (RRFS).
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, the plan administrator must:
- 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, where appropriate
- the insurer, if any
- invite all the above to contact the administrator for information.
Steps following the written notice from the employer
Terminating a simplified pension plan (SIPP)
The contents of this section are not pertinent to SIPPs. Please consult the section that deals with the steps to terminate an SIPP.