Target-benefit pension plan
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.