The business is sold

Impact on your simplified pension plan (SIPP)

The sale of a business may lead to a change in your pension plan. If that happens, you will be informed, no matter how small the change. However, if you do not receive any information about the effect of such a business change on you pension plan and you are concerned, you can contact your employer or the financial institution that administers your plan.

The most common changes

When a business is sold, the most frequently occurring changes are as follows:

• 2 or more plans are merged into a single plan
• the plan is divided into 2 or more plans
  (for example, one for union members and one for non-unionized employees)
• there is a change in the employer responsible for the plan

Impact on your benefits

Generally, a sale will not have any effect on the benefits that you have accumulated in the pension plan as a member (amounts entered in your accounts). If this is not the case, you will be informed. However, your benefits and those of the other members can never be reduced without your consent.

The plan is terminated

The sale of business may also lead to termination of the plan. 

If you have questions

You should contact your employer or the financial institution that administers your plan.