Changes to the stabilization provision are confirmed – Private-sector retirement plans in Quebec

On November 20, 2019, the Quebec government published a regulation amending the Supplemental Pension Plans Regulation. The regulation confirms the new parameters for determining the stabilization provision for actuarial valuations of private sector defined benefit pension plans in Quebec.

The new chart used to determine the stabilization provision (as indicated in our July 2019 press release) is confirmed as follows:

Minor adjustments were made relative to the draft regulation released this summer. For example, the way unquoted private debt is considered in the stabilization provision chart has changed. Also, private debt managers will have to certify the credit quality of their investment products at each actuarial valuation date (instead of annually).

Normandin Beaudry consultants will be pleased to discuss the new regulation with you and clarify how it could affect your plan. Give us a call or email us.