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Normandin Beaudry

The Act Respecting the Funding of Certain Pension Plans

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There, in black and white

NB Bulletin Vol. 8 N. 9, July 2005

On June 17, 2005, the National Assembly passed Bill 102, an Act respecting the funding of certain pension plans ("Act").

Our May 2005 Bulletin ( Vol. 8, No. 8) outlining the proposed temporary measures aimed at easing the funding of certain pension plans can be consulted for added details.

The Act further describes the transitional rules for 2005. If a pension committee requested an actuarial valuation before June 17, 2005, the committee has 30 days to notify the employer in writing, i.e., until July 17. If the pension committee requests an actuarial valuation after June 17, 2005, the committee must notify the employer within 10 days of the decision. Within 30 days of the notification, the employer may issue instructions regarding the valuation date, consolidation of solvency deficits and easing of amortization requirements.

In all cases where the employer issues instructions before August 16, 2005 the following conditions apply:

  • The 30-day period during which the employer would otherwise have to respond to the pension committee does not apply;
  • The employer may choose December 31, 2004, as the actuarial valuation date or any time thereafter;
  • The deadline for transmitting the actuarial valuation report is 9 months after the valuation date or December 31, 2005, whichever is the latest.

The Act also contains an additional provision to accurately coordinate with legislative provisions specifically applicable to the municipal sector.

On May 24, the Régie des rentes du Québec announced a public consultation on the long-term funding of pension plans. It also provided some background information in a working paper entitled Toward Better Funding of Defined Benefit Pension Plans, available on its Web site at www.rrq.gouv.qc.ca/en/programmes/rcr/consultation_financement. Individuals and groups interested in participating in this consultation are encouraged to make their comments known no later than August 15, 2005.

 

Please feel free to contact us for additional information.

514.285.1122
 
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Montreal, Quebec, H3B 1S6