Quebec: Adoption of the Act to enhance the Quebec Pension Plan and to amend various retirement-related provisions
Bill 149, an Act to enhance the Quebec Pension Plan and amend various retirement-related provisions (the “Act”), received assent by the Quebec National Assembly on February 22, 2018. For details about the bill, see our News & Views of November 2017. The Act came into force on February 22, 2018, but some provisions have been in effect since January 1, 2018.
This Act amends the Act respecting the Quebec Pension Plan mainly to enhance the Quebec Pension Plan by creating an additional component.
The Act also amends the Supplemental Pension Plans Act (SPP Act) as follows:
- To ease certain administrative rules, namely:
- plans that pay transfer values in proportion to the plan’s solvency ratio should use the solvency ratio on the date on which the value of the member’s benefit is established instead of the settlement date;
- the timeline for submitting the notice regarding the financial position of the plan to Retraite Québec has been changed from 4 months to 9 months after the end of the fiscal year. This notice is no longer required when an actuarial valuation is filed with Retraite Québec that establishes the solvency ratio of the plan at a date that falls between the end of the plan’s fiscal year (e.g.: December 31) and the notice filing deadline (September 30);
- the timeline for providing notice of the annual meeting has been changed from 6 months to 9 months after the end of the fiscal year.
- To include, in the banker’s clause, amounts paid by the employer:
- to reduce a letter of credit;
- as a special annuity purchasing payment, if the annuity purchasing policy so provides.
- To clarify the rules regarding the surplus assets of defined benefit plans in the private sector, primarily with respect to the utilization of surplus assets while the plan is ongoing.