Quebec government action plan for pension plan sustainabilityLinkedIn
There, in black and white
NB Bulletin Vol. 16 N. 20, January 2014
On December 12, the Quebec government unveiled its action plan for ensuring the sustainability of pension plans and protecting defined benefit pension plans (DB plans). Click here to access the document presented by Minister Agnès Maltais (available in French only).
This action plan will be rolled out over a two-year period and is based on four key government policy directions:
The government announced its position on some specific aspects:
1. Longevity pension
This D’Amours Committee proposal, along with the possibility of enhancing the Quebec Pension Plan, will be discussed during upcoming federal, provincial and territorial meetings.
During the meeting of federal and provincial finance ministers
2. Plan funding
A different approach will apply depending on the sector:
3. Restructuring of defined benefit pension plans
Public and private sector stakeholders will have to negotiate the restructuring of DB plans. These negotiations will take place over the next two years (2014 and 2015).
The process for delivering the action plan is as follows:
1. The government’s action plan starts with the creation of three work forums, one for each of the private, municipal and university sectors, which will be held between January and April 2014. Their mandate will be to:
The government announced the composition of these forums;
2. Negotiations concerning DB plan restructuring will take into account the new funding rules to be implemented, government policy directions and any consensus reached during the work forums. The process outlined below will apply to negotiations:
Applying this type of process in a non-unionized environment raises
3. The government plans to introduce the following bills:
In a bulletin published on December 18 by the Office of Minister Maltais, the following items were clarified following discussions with municipal sector stakeholders:
The bill to be introduced in the spring will be divided to introduce a bill more specific to the municipal sector when Parliament resumes in the winter. (The bill planned for the spring will still be introduced; it will focus on the other sectors).
The three work forums will be held as planned.
Now more than ever, pension plan funding will be the focus of public discussions. The Normandin Beaudry consultants will be closely following any developments on this subject and will keep you informed.
Please feel free to contact us for additional information.
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