Written notice of plan termination
After deciding to terminate the plan, the employer must send a written notice of termination to:
The written notice of termination must be sent to the active members no later than
after the plan's termination date; if not, their written consent to the termination date is required.
Non-active members and beneficiaries
There is no prescribed time limit for sending the termination notice to non-active members and beneficiaries. The notice must be sent within a reasonable period of time so as not to unnecessarily delay the termination process.
Contents of the written notice of termination
At a minimum, the notice must include the following information:
Example of a notice
Notice of termination of the Pension Plan of Company XYZ
Please note that the pension plan of Company XYZ was terminated on 31 December 2021, that is, the date the company closed. The termination affects all those who were plan members and beneficiaries on 31 December 2021 as well as those employees who ceased to be active plan members on or after 30 September 2021, the date on which the closure of the business was announced.
For the employer,
Section 204 of the Supplemental Pension Plans Act