Your simplified pension plan ends

The termination of a simplified pension plan (SIPP), involves the application of certain rules by the financial institution that administers the plan. Retraite Québec monitors the application of those rules and ensures that the payment of the sums credited to your accounts is properly carried out.

Whether it is your employer's withdrawal from the SIPP or the decision of the financial institution that administers the plan to terminate it, the following information concerns you as a plan member.

Notice of termination or withdrawal

The financial institution that administers an SIPP must send a written notice to all the affected members to inform them of the withdrawal of their employer or the termination of the plan, as the case may be.

For more information about the notice, contact the financial institution that administers your plan.

Statement of benefits

The financial institution that administers your SIPP must send a statement of benefits to all the members affected by the withdrawal of an employer or the termination of the SIPP. The statement informs you of:

• the sums credited to your accounts
• the payment methods (transfer options) applicable to the sums credited to your accounts (for example: transfer to a locked-in retirement account (LIRA) or a life income fund (LIF)
• the transfer, within 60 days after the statement of benefits is sent, of the sums credited to your accounts according to your payment options or, if no options are made, as determined by the financial institution.

Payment of your benefits (sums credited to your accounts)

The sums credited to your accounts will be paid in accordance with your statement of benefits. The payment of those sums takes into account the pension fund's rate of return on investments (whether negative or positive) until the payment date.

It is therefore possible that adjustments be made to the sums credited to your accounts compared to those initially determined on your statement of benefits.

In the event of bankruptcy...

If an employer owes money to the SIPP, the financial institution must take the necessary measures to recover the sums owing. The sums that will not have been recovered, where applicable, will not be paid to the accounts of members and beneficiaries.

If any plan expenses were to be paid by the employer and the employer is bankrupt, those expenses may be deducted from your accounts and those of other members.

Untraceable members

If the financial institution that administers your plan has tried to contact you but was unable to reach you, you could be considered as an untraceable member. In that case, the financial institution may be required to remit to Revenu Québec  the amount owing to you that have not been claimed.

For more information

• See the Withdrawal of an employer from a simplified pension plan section.
• See the Terminating a simplified pension plan section.