Recent legislative and regulatory measures

Regulation to amend the Regulation respecting supplemental pension plans

The Regulation to amend the Regulation respecting supplemental pension plans This link will open in a new window. was published in the Gazette officielle du Québec of 20 December 2017 and came  into force on 4 January 2018. It follows up on the measures provided for under the Act to amend the Supplemental Pension Plans Act mainly with respect to the funding of defined benefit pension plans (S.Q. 2015, chapter 29), which concern:

  • information that actuarial valuation reports and statements must contain
  • funding policies for defined benefit plans
  • annuity purchasing policies and special annuity purchasing payments
  • terms and conditions regarding letters of credit
  • rules for the transfer of benefits between spouses and for the seizure of benefits
  • variable benefits
  • prescribed fees.

Restructuring of university-sector plans

The Act respecting the restructuring of university sector defined benefit pension plans This link will open in a new window. (CQLR, chapter R 26.2.1) came into force on 8 June 2016. The Act provides that certain plans must be restructured in order to ensure better risk management and correct the financial situations of certain plans to ensure their sustainability.

For additional information, see our Web page on university-sector pension plans.

Funding of defined benefit pension plans and other measures that came into force on 1 January 2016

The Act to amend the Supplemental Pension Plans Act mainly with respect to the funding of defined benefit pension plans (S.Q. 2015, chapter 29) came into force on 1 January 2016. The main objectives of the Act are to

  • establish a new method for funding defined benefit pension plans that includes:
    • replacing the solvency method by one based on funding
    • establishing a stabilization provision
  • give plans a funding policy
  • modify the rules for appropriating and allocating surplus assets
  • eliminate the obligation of including the additional pension benefit
  • allow defined contribution plans to pay variable benefits.

The Regulation to amend the Regulation respecting supplemental pension plans, which was published in the Gazette officielle du Québec This link will open in a new window. of 13 July 2016, contains the scale that must be used to determine the target level of a pension plan's stabilization provision and the information that must be provided to Retraite Québec with regard to the plan's financial situation.

For further information, consult our Web page on private-sector pension plans et al.

Funding and restructuring of certain multi-employer plans

The Act to amend the Supplemental Pension Plans Act with respect to the funding and restructuring of certain multi-employer pension plans This link will open in a new window. (S.Q. 2015, chapter 7) came into force on 2 April 2015. The Act applies to certain multi-employer defined benefit-defined contribution plans that may not be amended unilaterally by any of the employers that are party to those plans and for which the employer's sole obligation is the negotiated contribution. The Act introduces rules specific to those plans concerning

  • their funding
  • their restructuring where, according to the actuarial valuation report, contributions are insufficient.

For further information, consult our Web page on multi-employer negotiated contribution pension plans.

Restructuring of municipal pension plans

The Act to foster the financial health and sustainability of municipal defined benefit pension plans This link will open in a new window. (CQLR, chapter S-2.1.1) came into force on 5 December 2014. The Act provides that municipal sector defined benefit plans must be restructured in order to improve the plans' financial health and ensure their sustainability.

For further details, consult our Web page on  municipal-sector pension plans (French only).

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