Amendment of the target-benefit pension plan

As for all supplemental pensions plans, the provisions of a target-benefit pension plan must indicate who can amend the plan after it has been set up. The employer or employers party to a target‑benefit pension plan cannot amend the plan unilaterally. In the case where active members of the plan are unionized, the accredited association representing them (e.g. the union) could have that right, alone or jointly with the employer or employers.

For certain amendments, the consent from the employer, members and beneficiaries is required.

Consent from the employer

If an amendment has an impact on the employer's obligations, consent from the employer is required in the case where the amendment is not the result of the application of recovery measures.

Consent from active members

An amendment that increases the member contribution requires consent from active members, except if it is the result of the application of recovery measures:

  • if active members are represented by an accredited association, the association can consent on the members' behalf;
  • active members that are not represented by such an association must be individually consulted. In that case, if less than 30% of those members oppose the amendment, their consent will be considered as having been obtained. Otherwise, the amendment cannot be made for these members.

Consent from members and beneficiaries

In the case of an amendment to the provisions of the plan that concerns the recovery measures, the restoration of benefits or the use of surplus assets, all members and beneficiaries must be individually consulted (a certified association cannot consent in the name of the members it represents). Such an amendment can be made only if less than 30% of members and beneficiaries are opposed to it.

The application to register an amendment to the plan sent to Retraite Québec must include the confirmation that the administrator obtained the required consents.

Note that...

As opposed to an adjustment of the target or the member or employer contributions, the adjustment of benefits related to credited service resulting from the application of recovery measures or from the restoration of benefits is not considered to be an amendment to the plan. As a result, the documents usually required to amend the plan, such as the notice sent to members and the application for registration, are not required.

Registration of an amendment to the target-benefit pension plan with Retraite Québec

The administrator of the plan must use the Application for Registration of an Amendment to a Pension Plan to register an amendment to the target-benefit pension plan with Retraite Québec. This form can facilitate his or her duties and ensure that he or she includes all the documents and information required under the Supplemental Pension Plans Act.


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