Your simplified pension plan ends

To terminate a simplified pension plan (SIPP), the financial institution that administers it must follow certain rules. Retraite Québec monitors the application of those rules and ensures that the payment of the sums credited to your accounts is properly made.

Your SIPP may be terminated as a result of your employer's withdrawal from the plan or a decision made by the financial institution that administers the plan. In both cases, as a member of the plan, the following information is important for you to know.

Termination or withdrawal notice

The financial institution that administers an SIPP must send a written notice to all the affected members of the plan to inform them of the withdrawal of their employer or the termination of the plan, as the case may be.

For more information about the notice, contact the financial institution that administers your plan.

Statement of benefits

The financial institution that administers your SIPP must send a statement of benefits to all the members affected by the withdrawal of an employer or the termination of the SIPP. The statement contains the following information:

  • the sums credited to your accounts
  • payment methods (transfer options) for the sums credited to your accounts (for example: transfer to a locked-in retirement account (LIRA) or a life income fund (LIF))
  • notice that withing 60 days after the statement of benefits is sent, the sums credited to your accounts will be transferred according to your payment options or, if no options are made, as determined by the financial institution

Advice from Retraite Québec

  • Check to be sure the information given on your statement of benefits is correct. If you find an error or omission or if you need more information, contact the financial institution that administers your plan.
  • If you are not satisfied with the information received from the plan administrator, you can contact Retraite Québec.

Payment of your benefits (the sums credited to your accounts)

The sums credited to your accounts will be paid in accordance with your statement of benefits. The payment of the sums credited to you takes into account the pension fund's rate of return on investments (whether negative or positive) between the termination date and the date on which benefits are paid. It is therefore possible that your benefits may be have to be adjusted and may differ from the benefits initially determined and shown on your statement of benefits.

In case of bankruptcy...

If a employer owes money to the plan and the financial institution is unable to recover the sums due because of the employer's bankruptcy, for example, it may be necessary to reduce the sums credited to the accounts of the members. 

If any unpaid plan expenses were to be paid by the employer and the employer is bankrupt, those expenses may be deducted from your accounts and the accounts of the other.

Untraceable members

If the financial institution that administers your plan has tried to contact you but was unable to locate you, you many be considered to be an "untraceable" member. In that case, the financial institution may be required to transfer your unclaimed sums to Revenu Québec This link will open in a new window..

To find out more about the withdrawal of an employer from an SIPP, consult the section Withdrawal of an employer from an SIPP.

To find out more about the termination of an SIPP, consult the section Termination of an SIPP.

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