Pension Benefits Standards Regulations, 1985 (SOR/87-19)

Regulations are current to 2014-09-29 and last amended on 2014-01-01. Previous Versions

SIMPLIFIED PENSION PLAN

  •  (1) An employer may enter into a contract with a financial institution for the purpose of establishing a simplified pension plan for its employees.

  • (2) A contract that establishes a simplified pension plan shall provide

    • (a) that the plan is a simplified pension plan and that the financial institution is the administrator of the plan;

    • (b) the amount and the frequency, of at least once per month, of the employee and employer contributions that are required to be remitted by the employer to the financial institution;

    • (c) the day on which the participation of an employer in the plan will cease as a result of the employer’s failure to remit the required contributions to the financial institution;

    • (d) that the plan is subject to section 11.2; and

    • (e) that the financial institution is subject to section 11.3.

  • SOR/2002-78, s. 10.
  •  (1) For the purposes of subsection 7(2) of the Act, the administrator of a simplified pension plan is the financial institution that has entered into the contract establishing the plan.

  • (2) The contributions made to the fund established in respect of a simplified pension plan, the investments in which pension money is invested and the returns on those contributions and investments constitute the plan’s pension fund and shall not at any time constitute assets of the administrator or employer.

  • (3) The participation of any employer in a simplified pension plan will cease if the employer fails to remit the contributions required by the contract within the period specified in the contract.

  • (4) If there is more than one participating employer in a plan, the cessation of participation by one or more employers in the plan does not constitute a termination, in whole or in part, of the plan.

  • (5) If an employer ceases participation in a plan, all benefits shall be vested without regard to age, period of membership in the plan or period of employment and payment of all accrued or payable benefits under the plan as of the date of cessation shall be made to members and former members and to their spouses, common-law partners, beneficiaries, estates or successions.

  • (6) For the purposes of paragraph 2(2)(c) of the Act, a member of a simplified pension plan ceases to be a member of the plan in any of the following circumstances:

    • (a) the participation of the member’s employer in the plan ceases; or

    • (b) the administrator terminates the plan or the part of the plan in which the member participates.

  • SOR/2002-78, s. 10.
  •  (1) Each administrator of a simplified pension plan shall keep records that are sufficient to allow the ownership of any investment to be traced to the plan at any time.

  • (2) Each administrator shall notify each participating employer in writing of an intended amendment to the plan at least 30 days before the effective date of the amendment.

  • (3) If an employer’s participation in the plan ceases, the administrator of the plan shall notify in writing, within 30 days of the effective date of the cessation, the members of the plan who are employees of the employer, of the cessation of that employer’s participation in the plan and the effective date of the cessation.

  • (4) If the administrator intends to terminate or wind up the plan in whole or in part, it shall provide each employer whose participation in the plan will cease with a notice in writing to that effect at least 60 days before the date of the intended termination and winding-up.

  • (5) The administrator shall, no later than each anniversary date of a plan, notify the Superintendent in writing of the employers who have commenced or ceased participation in a simplified pension plan.

  • SOR/2002-78, s. 10.