To become a member of the information committee
Are you a member of a simplified pension plan (SIPP) and interested in actively take part in its administration?
Unlike a defined contribution plan in which a pension committee generally acts as plan administrator, the SIPP is administered by the financial institution chosen by your employer, or by your employer and your union.
The financial institution provides the members as well as the supervisory agencies (Retraite Québec and the Canada Revenue Agency) relevant information about the plan administration, including a statement of member contributions and a summary of the provisions of the plan with a description of members' rights and obligations.
The employer also assumes some administrative tasks
Membership and member withdrawal
- Sets the requirements for membership and withdrawal
- Informs the employee of his or her eligibility
- Notifies the financial institution of memberships and withdrawals
- Collects contributions and sends them to the financial institution
Information to members
- Sends the members' requests for information to the financial institution and sends the members the institution's responses, if there is no retirement information committee.
Setting up a retirement information commitee
A retirement information committee can be set up in the company. However, the simplified pension plan (SIPP) must have at least 50 members who work for the same employer and who wish to create this type of committee. The financial institution and the employer must be informed before the committee is organized.
There are no established procedures for setting up the committee or for the number of members who can participate. Members of the SIPP who work for the same employer as well as any other interested person can express their interest in participating.
The role of the retirement information committee
The committee acts as an intermediary between the financial institution and the members. The committee, rather than the employer, sends the members the administrative and financial information related to the plan that must be available to members. The committee can also provide members with other administrative information to give them a better understanding of their rights.