Amending a simplified pension plan (SIPP)
The power to amend a pension plan belongs to the financial institution for certain types of amendments, and to the employer for others, unless there is an agreement on sharing the employer's powers (if there is a union).
An institution that decides to amend a plan must notify the employer and the affected members. An employer who decides to amend a plan must notify the financial institution, who then informs the affected members.
Effective date of amendments
In general, any amendments reducing members' benefits may not take effect before the 30th day following, as the case may be:
- the effective date of the collective agreement, the arbitration award or the order or decree under which the amendment is made
- the date on which the notice to the members affected by the amendment is sent.
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