Reform of Quebec’s Funding Rules for Defined Benefit Pension Plans in the Private Sector

Parlement_du_Quebec

Bill 57, an Act to amend the Supplemental Pension Plans Act mainly with respect to the funding of defined benefit pension plans, was presented on June 11, 2015 by the Quebec Minister of Labour, Employment and Social Solidarity, Mr. Sam Hamad. This reform is part of the comprehensive revision of rules applicable to pension plans, specifically: Act 15 regarding the restructuring of municipal pension plans (December 2014); Act 7 regarding multi-employer pension plans (April 2015); and those pertaining to the university sector (forthcoming).

The purpose of this memo is to list the main objectives of the Bill. Numerous specific terms and conditions are included and their actual application will be clarified in regulations published subsequent to the adoption of the Act.

We are currently analyzing the Bill and will publish more detailed memos after our analysis is completed and when further details are confirmed. According to the information we have, a committee proceedings will be held for this Bill at the beginning of September 2015 and the government is aiming for quick adoption during the fall session of Parliament.

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Reform of Quebec’s Funding Rules for Defined Benefit Pension Plans in the Private Sector

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