Bill 195, an act amending the Quebec Supplemental Pension Plans ActLinkedIn
There, in black and white
NB Bulletin Vol. 8 N. 7, April 2005
The National Assembly adopted on April 21, 2005, Bill 195, an act amending the Supplemental Pension Plans Act ("SPPA"). Bill 195 came in into effect on April 28, 2005.
Amendments to the SPPA, resulting from Bill 195, enable the two following groups of members to express their concurrence in relation to an amendment made to a pension plan confirming the employer's right to appropriate surplus assets to the payment of its contributions:
The current SPPA requires only the assent of the members represented by a certified association. Bill 195 provides that the assent of each of the above mentioned groups in relation to the proposed amendment to the plan should be expressed at the annual meeting or at a special meeting called by the pension committee.
Bill 195 does not have retroactive effect. Therefore, plans having already confirmed the employer's right to appropriate surplus assets to the payment of its contributions do not have to obtain the approval of the two groups of members mentioned above (confirmation process of employer's right completed). Only the plans that will be modified to confirm this employer's right will need to conform to the new SPPA provisions.
Few plans have already confirmed the employer's right to appropriate surplus assets to the payment of employer contributions under the terms of SPPA. Considering the new SPPA requirements, it is therefore expected that fewer plans will elect to confirm this employer’s right under the terms of SPPA.
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