Canada: Québec (Canada) Introduces Occupational Pension Plan

Submitted by mmarquez on

Social Security Agency (25.02.2021) On December 11, Québec's government approved a law introducing the Target Benefit Pension Plan (TBPP), an occupational pension plan that combines certain features of existing defined contribution (DC) and defined benefit (DB) plans. Like a DC plan, a TBPP is funded with employee and employer contributions paid at fixed rates and does not provide guaranteed benefits. However, by pooling its members' assets and setting a target benefit level, a TBPP can provide workers with a predictable periodic pension at retirement like a DB plan. The main objective behind the TBPP is to offer Québec's employers and workers another alternative to traditional DB plans, which have been in decline for many years. Additional regulatory guidance on the TBPP is expected by the end of 2023 from Retraite Québec, which supervises the province's mandatory and voluntary pension plans.

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