Supplemental Pension Plans
Several terms are used in talking about supplemental pension plans: pension funds, pension plans, registered pension plans, company plans, etc.
A supplemental pension plan is a written contract by which an employer acting alone or an employer and its employees who are members of the plan are required to contribute to the plan. The contributions are intended to provide the plan's members with retirement income. The income from a pension plan tops off the income received from public plans.
The employer and member contributions are paid into a pension fund. The fund can be thought of as the plan's "bank account."
There are three kinds of transfer instruments for supplemental pension plans:
Supplemental Pension Plans Act
supplemental pension plans in which Québec workers participate are subject to the
Supplemental Pension Plans Act (SPP Act). Such plans comprise plans sponsored by employers in the private, municipal and university sectors, and some plans in the parapublic sector, which are under provincial jurisdiction.
Some supplemental pension plans are not subject to the
SPP Act, including plans in the Québec public sector (such as the Government and Public Employees Retirement Plan [RREGOP]) and in the federal public sector, as well as private plans in sectors under federal jurisdiction (such as plans for banks). Such plans are subject to
a different law applicable to supplemental pension plans.
Regulation respecting supplemental pension plans, which stems from the
SPP Act, governs
LIFs whose amounts come from a plan, such as the
RREGOP, that is subject to the
SPP Act or another Québec law. For details, consult
Applicable laws for
Regulation also governs annuity contracts whose amounts come from a pension plan subject to the
Under the supervision of
Supplemental pension plans subject to the
SPP Act along with LIRAs,
LIFs and pension annuity contracts governed by the
under the supervision of Retraite Québec. In this capacity,
Retraite Québec ensures that the plans are administered and operated in accordance with the
Retraite Québec's main duties are as follows:
- register plans, standard contracts for
LIFs and any amendments
- examine the annual information returns
- verify actuarial valuation reports and termination reports
- request additional documents and information
- inspect pension plans
- inform clients (plan administrators, members and beneficiaries, employers, etc.)
- provide training to pension committee members.
Under the supervision of another agency
Where a pension plan has workers whose rights are subject to the
Supplemental Pension Plans Act and workers whose rights are subject to another provincial or federal law, it may be under the supervision of
another agency having a similar mandate to that of
Retraite Québec. In such a case, the other agency must ensure, on behalf of
Retraite Québec, that the rights of Québec workers are in conformity with the
Supplemental Pension Plans Act. That agency takes its mandate from an agreement entered into between different government authorities that specifies how various pension plan legislation must be applied.