Plan members and beneficiaries affected by termination
All members and beneficiaries who have benefits in the pension plan as at the termination date are affected.
Does the plan termination follow a change to the business?
Other members are also affected if plan termination follows a change in the business or employer, i.e. a merger, a restructuring, a sale, a closure, etc.
If that is the case, it is necessary to include members who ceased to be active between the date on which the event in question was announced and the termination date.
That rule can apply even if the benefits for those members were paid before the termination date.
Example - On 31 January, the employer announced that it would close the factory on 30 June of the following year. The factory does in fact close on 30 June and the pension plan ends on that date. All the members who ceased being active in the plan after 31 January will automatically be affected by the plan termination.
The written notice of termination must be sent to all members and beneficiaries affected and must indicate the rule used to determine who those persons are.