1. Regulation respecting the funding of pension plans of the municipal and university sectors
On August 2, 2017, the Québec Government proposed amendments to the Regulation respecting the funding of pension plans of the municipal and university sectors. The purpose of one of these amendments is to exclude the stabilization contributions paid by a plan member from the 50 per cent rule (whereby member contributions shall not be used to pay more than 50 per cent of the value of the benefit to which the member is entitled).
An exception to this proposed rule would also exist where a plan member makes amortization payments. Other proposed changes deal with certain actuarial valuation reports filed with Retraite Québec and which took into account stabilization contributions paid by plan members. The Québec Ministry of Finance accepted comments on the proposed changes until August 16, 2017.
2. Regulation respecting supplemental pension plans
On July 12, 2017, the Québec Government proposed amendments to the Regulation respecting supplemental pension plans. These amendments are being proposed with the purpose of completing various measures and rules regarding the funding of DB pension plans which were introduced in the Québec Supplemental Pension Plans Act by Bill 29 (i.e. An Act to amend the Supplemental Pension Plans Act mainly with respect to the funding of defined benefit pension plans). These proposed amendments deal with, among other things:
- the content of the actuarial valuation reports
- the content of certain statements (including the annual statement to be provided to plan members)
- the topics that must be on the agenda of the annual meeting of plan members
- the content and requirements of the funding policies of DB plans
- the content and requirements of a plan’s annuity purchasing policy (in cases where such a policy will be set up)
- the funding requirements for settling benefits under an annuity purchasing policy
- the conditions regarding variable benefits that a member may elect to receive from his/her DC account (in cases where the plan provides for such a possibility).
- The Québec Ministry of Finance accepted comments on the proposed changes until August 25, 2017.
François Parent is a partner with Lavery