Target-benefit pension plan
This section is currently being updated to take into account the Act mainly to allow the establishment of target benefit pension plans, which came into effect on 11 December 2020.
A target-benefit pension plan is a defined benefit plan under which:
- the employer contributions and, if applicable, the member contributions are set in advance
- the normal pension payable is based on the financial situation of the plan.
Access to target-benefit plans is limited by law.
Under the Act to provide for the establishment of target-benefit pension plans in certain pulp and paper sector enterprises and the
Regulation respecting target-benefit pension plans in certain pulp and paper sector enterprises,
the employer party to the target-benefit plan must:
- work in the pulp and paper sector
- have a written agreement with a union to establish a target-benefit plan at the same time that the employer, or another employer from which the assets were acquired, was subject to an order filed under the
Companies' Creditors Arrangement Act
- meet the two above-mentioned conditions between 30 December 2010 and 1 January 2014.
The plans submitted to date are those that are a party to Produits Forestiers Résolu or an entity of Papiers White Birch group.