End of the plan’s fiscal year

That date corresponds to the date set out in the plan text.

Plan name change

If the plan’s name has been changed, write the new name on this line.

Type of plan administrator

Give the type of administrator, not the person, body or group to whom administrative duties have been delegated or assigned.

The following are the three possible types of administrators:

All pension plans under Retraite Québec’s supervision must be administered by a pension committee, except for those indicated in points 2 and 3.

1. A pension committee

A pension committee must be composed of at least three voting members:

• a third-party member;
• one person designated by the active members, if not, one member designated in accordance with the plan;
• one person designated by the non‐active members and beneficiaries, if not, one member or beneficiary designated in accordance with the plan.

However, if the plan has 50 members and beneficiaries or less and it is provided in the plan that it is administered by a pension committee, the committee must be composed of at least two voting members:

• a third-party member
• one person designated by the members and beneficiaries, if not, one plan member or beneficiary designated in accordance with the plan.

2. A person, body or group duly authorized by a law to administer the plan

In accordance with section 266 of the Supplemental Pension Plans Act, a plan is administered by a natural person, a legal person or a body or group without juridical personality if they are authorized by an act other than the Supplemental Pension Plans Act to administer the plan.

This is the case of a plan administered by a union under section 9 of the Professional Syndicates Act.

3. An employer

If the plan has not yet been registered with Retraite Québec and no pension committee has been formed, it must be administered by the employer, except in the case of a target-benefit plan, which must rather, during that period, be administered by the person or body that established the plan.

The plan can be administered by the employer if it has 50 members and beneficiaries or less and the plan text designates the employer as the administrator.

Administrator's representative

The person representing the plan administrator is the person designated by the plan’s administrator to be the plan’s liaison person with Retraite Québec. Among other activities, that person:

• receives written correspondence addressed to the plan;
• handles requests from Retraite Québec;
• forwards correspondence received by the plan to the persons or service providers concerned;
• verifies the validity of certain information provided in the annual information return and forwards that information to Retraite Québec.

For more information on the role and responsibilities of this person, consult the Person Representing the Pension Plan Administrator page.

Pension committee

Be sure that the makeup of the pension committee and the addresses of its members are up to date before submitting the return.

Information in this subsection can be updated at any time.

Example on how to complete the Pension Committee subsection

The ABC Pension Committee provides in the plan text that it is administered by a pension committee made up of the five following voting members:

1. a person appointed by active members during the annual meeting (e.g. Victor), or a member designated by the employer (in this case, the employer did not have to designate a member);
2. a person appointed by non-active members and beneficiaries at the annual meeting (in this case, no one was appointed), or a member or beneficiary designated by the employer (e.g. Clara);
3. a person designated by the employer who is not party to the plan (third-party member) (e.g. Lénya);
4. a person designated by the employer (e.g. Line);
5. the director of human resources (e.g. Alexandre).

The following two non-voting members are added to the committee:

1. a person designated during the annual meeting by the group of active members (e.g. Jonathan);
2. a person designated during the annual meeting by the group of non active members and beneficiaries (e.g. Serge).

You must enter the types of designation of the pension committee members in the SPP Portal as follows:

Employers

An employer is considered to be a party to the plan on the earliest of the following dates:

• the date on which the current service of at least one of its workers is taken into account to calculate his or her pension
  or
• the date on which the member contributions of at least one of its workers begin to be collected.

Consequently, an employer that has never had any obligations under the plan because no employee joined the plan with which the employer is associated is not considered a party to the plan.

When an employer becomes party to the plan, an application for registration of an amendment to have the employer’s name added to the plan text must be filed with Retraite Québec at the latest by the end of the 12th month following the one during which the employer joined the plan.

An employer ceases to be party to the plan when an amendment to that effect is made to the plan text. The effective date of the amendment must comply with the Act. Furthermore, the amendment cannot be taken into account until it has been registered and authorized by Retraite Québec.

All changes during the fiscal year, such as changes to the employer’s name, membership, or any substitution or withdrawal of an employer must be shown in the list of employers.

Note that an Application for Registration of an Amendment to a Pension Plan concerning the changes must be filed with Retraite Québec.

Please ensure that the employer’s details are indicated as they appear in the Québec enterprise register.

• employer’s name
• enterprise number.

Note that an employer that is not subject to the Québec Act respecting the legal publicity of enterprises is not required to indicate an enterprise number.

You must provide the names and enterprise numbers of all the subsidiaries of the employers who are members of the plan, provided the subsidiaries are also members.

Usually, a corporation’s divisions are administrative units of the corporation, and as such its name should not be listed in the Employers’ subsection unless the division is a distinct entity such as a subsidiary corporation.

Line 1

In accordance with section 166 of the Act, the date of the meeting required for this line is the date of the most recent meeting, even if it was not held during the fiscal year covered by the return. An annual meeting must be held whether or not there is a pension committee, regardless of the number of members, whether they are active or non-active, and beneficiaries.

Insolvent company

Insolvent companies (lines 503 and 503.1)

Include any employers party to the plan that are in either of the following situations at the time this return is being completed.

The employer:

• is the subject of a bankruptcy order;
• is the subject of an initial order under the Companies’ Creditors Arrangement Act;
• has made a proposal under the Bankruptcy and Insolvency Act.

Expected reduction in the number of active members

Expected reduction in the number of active members (lines 504 and 504.1)

Include any events or announcements known at the time this return is being completed.

Amendment made to the plan

Amendment made to the plan (lines 505 and 505.1)

Include any known changes that have not been reported to Retraite Québec at the time this return is being completed.

If the plan is subject to a merger, consult the Plan Division or Merger web page.

Changes in plan membership

A pension plan can have two types of members:

• active members
• non-active members

Pension beneficiaries are added to these types of members.

Line 3

If this return covers the plans’ first fiscal year, enter 0.

Line 4

Persons who joined the plan during the fiscal year covered by this return as a result of a merger or division are also plan members that must be indicated on that line, even if the merger or division has not yet been authorized by Retraite Québec.

If a member who was receiving a retirement pension returned to work during the fiscal year covered by the return, he or she must be included on this line if he or she has resumed accruing benefits under the plan. Otherwise, include that member on line 11 only.

Line 6

Retirement

• Any member who ceased active membership and who asked for payment of his or her pension must be included here. The first payment does not need to have been made.
• A phased retirement benefit is not considered a retirement pension. Any member who ceased active membership during the fiscal year and who requested a phased retirement benefit should not be included on this line.

Disability

• Any member who is entitled to a disability pension must be included here. The term disability pension means a life annuity for which a plan text may provide in the case of a permanent disability.

Line 7

You must enter the number of members who ceased to be active during the fiscal year covered by the return and who were not included on lines 6 and 6.1.

You must count any member who ceased to be an active member because, for example,

• his or her period of continuous employment ended and he or she did not ask for payment of his or her retirement or disability pension;
• he or she joined another plan as result of the division or merger of the plan;
• his or her employer withdrew from a multi-employer pension plan.

Line 11

You must provide the sum of the following two numbers:

• the number of active members entered on line 9 of the return
• the number of non-active members and beneficiaries entered in the plan’s registers.

Types of benefits accrued

Types of benefits accrued

The number of active members on the date the fiscal year ends must be distributed amongst lines 11.1, 11.3 and 11.5, according to the type of benefits they have under the plan at that date.

On lines 11.2, 11.4 and 11.6, distribute:

• the number of non-active members on the date the fiscal year ends according to the type of benefits they have under the plan at that date.
• the number of beneficiaries according to the type of benefits the deceased member had under the plan at the time of his or her death.

Line 11.4

Non-active members of a defined-benefit plan who are entitled to a balance owing following a partial payment must be included here.

Lines 11.1 to 11.6

• Defined-contribution and defined-benefit pension plans (including negotiated-contribution plans) are defined-benefit plans (See Example 6.). Those benefits should not be confused with benefits accrued under a dual-component plan, which is shown in Example 4.
• Benefits accrued under a target-benefit plan must be considered as defined-benefit plans. A target-benefit plan is a plan under which the employer contribution and a target benefit are determined in advance. Members must be identified in that section as accruing benefits with a defined-benefit plan, even if, for the purposes of the financial statements, the plan can be considered as a defined-contribution plan.
• Benefits accrued under a floor plan must be considered as both defined-contribution benefits and defined-benefits until the type of benefits to which the contributor is entitled can be determined using the minimum income test. A floor plan is a defined-contribution plan that provides a minimum retirement income that is established using the criteria for a defined benefit plan (see Example 7).

Distribution of the number of members and beneficiaries

Use the table to break down the number of active members based on sex and place of work. Those whose work conditions are under federal jurisdiction must be entered only on the line entitled Employment under federal jurisdiction.

Use the table to break down the number of non-active members and beneficiaries based on each member’s place of work at the end of their active membership. Non-active members whose work conditions were under federal jurisdiction must be entered on the line entitled Employment under federal jurisdiction. For beneficiaries, the distribution must be made based on the member giving them entitlement.

Calculation of fees

If, at any moment, the benefits of all members and beneficiaries are made up only of the amounts paid into their accounts (defined benefits) or benefits or refunds guaranteed by an insurance company, the basic amount is $250. In all other cases, it is $500.

The fees to be paid by the administrator consist of the basic amount to which fees payable by members and beneficiaries (line 15) are added. However, the amount of those fees cannot exceed the maximum amount (line 17).

Should there be failure to produce an annual information return or to pay the required fees, additional fees will be charged in accordance with section 14 of the Regulation respecting supplemental pension plans. There are two types of additional fees:

• those levied on the required fees for not filing a return within the time period prescribed by law, that is, six months after the end of the fiscal year. Those fees are equal to 10% of the fees initially due for each full month of delay, up to a maximum of 100%.
• those levied for failure to pay fees after the filing deadline, that is, six months after the end of the fiscal year. They are equal to 10% of the unpaid balance at the expiry of the time allotted for submitting the document for each complete month of delay, up to a maximum of 100%.

The two types of additional fees do not apply at the same time. Those for failure to produce a return are calculated first. Then, when the maximum has been reached, the additional fees for failure to pay required fees are added. Therefore, it is possible for the additional fees to amount to 200%.

In addition, the plan administrator is liable to a fine of $500 to $25 000 in the following cases:

• it fails to send us the duly completed annual information return and the required documents within six months of the end of the fiscal year;
  OR
• it makes a false declaration.

If the administrator is a legal entity, the amount of the fine is tripled.

The financial situation of the plan must show the plan’s financial information for the fiscal year covered by the return. Most of the information must be taken from the financial report required under the Act. The report and the information it contains must be presented in accordance with one of the following two accounting frameworks, at the administrator’s discretion:

• the framework with no pension obligations (special purpose);
• the framework with pension obligations (general purpose).

Financial report

For more information on the accounting frameworks accepted by Retraite Québec, consult the Accounting frameworks web page.

For more information on the requirements regarding auditors’ reports, see the Independent auditor's reports for pension plan financial statements page published by the Ordre des comptables professionnels agréés du Québec.

If you deem it appropriate to supplement the information provided in this section, please enclose any pertinent documents with the annual information return.

Line 301

The amount to be entered on this line must include:

• interest, dividends, rental property income and sums earned on investments, whether or not they have been cashed;
• variation in the fair value of investments, specifically the realized and unrealized gains (or losses).

If the amount to be entered on this line is negative, write the amount, preceded by a minus sign.

Line 301.1

The amount that you must enter includes the variation in the value of annuity contracts guaranteed by an insurance company.

The guaranteed annuity contracts concerned are buy-in annuity contracts, since they must be considered as pension fund investments. That variation includes, among other things, the amount of benefits paid by the insurance company under this contract.

If the amount to be entered on this line is negative, write the amount, preceded by a minus sign.

For information on annuity contracts guaranteed by an insurance company, see the Annuity contracts guaranteed by an insurance company page.

Line 305

Required member contributions are the amounts that the plan members must pay or choose to pay with a counterpart from the employer for the current fiscal year. The amount to be entered on this line must include:

• current service contribution payments by members, including the amounts paid to the pension fund to pay the administration expenses and management fees;
• amortization payments by members;
• stabilization contribution payments by members of plans of the municipal and university sectors;
• restructuring contributions from municipal-sector plans (Refer to the provisions of section 14 of the Act to foster the financial health and sustainability of municipal defined benefit pension plans.);

Line 334.1

The surplus assets appropriated to the payment of member current service contributions is also known as a contribution holiday.

The amount to be entered on this line must correspond to the difference between the following two amounts:

• the amount of the required member’s current service contributions, which is generally determined by the actuary for the valuation in effect during the financial year in question;
• the amount indicated on line 305.

Line 306

Additional voluntary member contributions are amounts that the members choose to pay with no counterpart from the employer.

Optional ancillary contributions paid by members into the fund of a flexible pension plan must be included on this line.

Line 307

The required employer current service contributions are the amounts that the employer is required to pay to fund the current service cost for the fiscal year covered by the return, in conformity with the actuarial valuation report or the plan text.

The portion of the service contribution paid to the pension fund by the employer to pay the administration expenses and management fees must be indicated here, in accordance with the recommendations made in the actuarial valuation report.

The amounts paid into the pension fund by the employer (not considered in the actuarial valuation report) for the payment of the administration expenses and management fees must be entered under Other sources of increase in assets, among the options offered, on lines 311 to 313.

Line 335

The surplus assets appropriated to the payment of the employer’s current service contributions is also known as a contribution holiday.

The amount of the required employer’s current service contributions, which is generally determined by the actuary for the valuation in effect during the financial year in question must correspond to the amounts entered on lines 307 and 335.

The amount of the surplus assets from the defined-benefit component, but appropriated to the payment of service contributions of the defined-contribution component, must be entered here.

When the employer uses surplus assets to increase plan benefits, the surplus amount must not be entered on line 335 because the amount was not used to reduce the employer's current service contributions determined by the actuary. The amount must be entered on line 335.0.

The portion of the surplus assets transferred to the employer during a fiscal year, in accordance with subparagraph 4 of the second paragraph of section 146.8 of the Supplemental Pension Plans Act, must be entered under Other sources of a decrease in assets, among the choices available on lines 326 to 328.

Line 308

The required employer special contributions and amortization payments are amounts established further to an actuarial valuation of the plan.

Should the employer decide to make additional contributions to improve the plan’s financial situation, the amounts must be included on line 308.

An employer placed under the protection of the Companies’ Creditors Arrangement Act may have been released from making amortization payments by the court. In this case, the contributions must be included in the amount indicated on that line, even if they have not been paid by the end of the fiscal year.

Furthermore, amounts listed on line 308 must not include:

• the amount of any letters of credit provided by the employer under section 42.1 of the Act
• amounts required to pay the residual benefits.

Line 335.0

When the employer uses surplus assets to increase plan benefits, the amount of the surplus assets must be entered here.

Line 308.1

The member and employer contributions paid for past service buy-backs are those, for example, that take into account in the calculation of benefits the period of work between the employee’s hiring date and the date the employee joined the plan.

Line 309.1

If the plan is insolvent, the payment of benefits to plan members and beneficiaries is generally in proportion to the plans degree of solvency. In this case, the balance (referred to as residual benefits) will not be paid to members or beneficiaries.

However, there are several situations (see the definition of partial payment) in which, after this initial payment, residual benefits are paid to members and beneficiaries (final payment). In those situations, before making the final payment, amounts must first be paid into the pension fund.

The amount to be entered on line 309.1 is the amount required in the fiscal year during which the benefits are initially paid, even if they were paid immediately, so that the final payment and the initial payment are made at the same time.

For further information on this subject, consult the example concerning residual benefits on the Payment of defined benefits page.

Line 310

Transfers to the pension fund are amounts coming from other pension plans, such as:

• another supplemental pension plan;
• a locked-in retirement account (LIRA);
• a registered retirement savings plan (RRSP);
• a deferred profit-sharing plan (DPSP).

If the plan has been divided or merged, consult the Plan Division or Merger web page.

Lines 311 to 313

Among the choices available, select the sources of increase in assets for the current fiscal year that have not been previously included and indicate the amount of those increases.

Details

• The adjustment to transferable assets – division/merger is the positive effect of income and expenses on the assets to be transferred into the plans subject to a division or merger. For more information, see the Plan Division or Merger web page.
• Interest charged on late contributions is the interest credited to the pension fund because of late payments.
• Interest charged on amounts payable for residual benefits are those credited to the pension fund.
• Other interest is all other types of interest that may be credited to the fund, for example:
  • where, after the tabling of a new actuarial valuation report, an adjustment to the required contributions must be made, with interest;
  • where transfers were paid late, with interest.
• Asset adjustments are accounting adjustments that had to be made, for example to correct bookkeeping errors in the recording of cash outflows during a previous fiscal year.
• Refund of letters of credit corresponds to amounts paid by the employer to reduce the amount of a letter of credit that it had provided to the pension committee in order to free itself from the payment of a portion of its contributions.
• Retirement pensions paid by an insurance company into the pension fund implies , for certain plans, that an insurance company pay into the fund an amount that corresponds to the pensions of retirees covered by the guaranteed annuity contract. Pensions are then paid to retirees under the plan.

If Other: specify is selected, please list the source of the increase in assets and indicate the amount. This may include:

• dividends, refunds or other advantages granted during the fiscal year by an insurance company, enterprise or body;
• soft-dollar commission.

Line 316

Expenses related to managing investments that must be assumed by the pension plan for the fiscal year include, in particular:

• brokerage or transaction fees;
• fees of a securities broker or financial manager;
• fees of a custodian of assets;
• other expenses related to managing investments.

Line 319

Administration expenses include the following:

• professional fees assumed by the pension plan related to the fiscal year (attorneys, accountants, actuaries, etc.).
• expenses related to:
  • the collection of contributions;
  • the calculation and payment of benefits;
  • the general administration of the plan (including expenses related to providing information to plan members);
  • the purchase of office supplies or computer equipment;
  • premiums for the pension committee’s liability insurance.

Line 320

Include the amounts of the various benefits or pensions paid in installments under the plan, such as:

• retirement pensions;
• disability pensions;
• phased retirement benefits;
• survivors’ benefits, for example, a pension paid to a spouse following the death of a plan member;
• pensions insured by a guaranteed annuity contract and paid by the pension plan. In the case of certain plans, the insurance company pays into the pension fund the amount corresponding to pensions of retirees covered by the guaranteed annuity contract. Pensions are then paid to retirees under the plan.

Line 322

A supplemental pension plan is a plan to which the employer is required to contribute and which is, according to the situation:

• governed by the Supplemental Pension Plans Act;
• governed by an act of a legislative authority other than Québec;
• established by an act of the Parliament of Québec, another Canadian legislature or another State, for example, the Government and Public Employees Retirement Plan (RREGOP).

Transfers to a supplemental pension plan ﴾whether made for an individual member or made as the result of a division or merger) must be taken into consideration on line 322.

If the plan has been divided or merged, consult the Plan Division or Merger web page.

Line 323.1

Transfers (other than those made under a supplemental pension plan) and refunds must be taken into consideration on line 323.1, in particular:

• partition between former spouses;
• death benefit payments.

The amount of the premium paid to the insurance company for guaranteed annuity contracts entered into under the annuity purchasing policy must also be included on this line. For more information on the annuity purchasing policy, see the Annuity purchasing policy web page.

For further information concerning rules for transfers or the refund of benefits accrued under a pension plan, consult the following:

• for-defined-benefit pension plans
  • Transfer rules for a defined benefit plan
  • Cash payments (refunds)
  • Payment of defined benefits
• for-defined-contribution pension plans
  • Transfer rules for a defined contribution plan
  • Cash payments (refunds)

Lines 326 to 328

Among the choices available, select the sources of decrease in assets for the current fiscal year that have not been previously included and indicate the amount of those decreases.

Details

• The adjustment to transferable assets – division/merger is the negative effect of income and expenses on the assets to be transferred into the plans subject to a division or merger. For more information, see the Plan Division or Merger web page.
• Interest on residual benefits is that debited from the pension fund.
• Other interest includes:
  • interest debited from the pension fund for uncollectible contributions and transfers;
  • interest paid on borrowings by the pension plan;
  • interest paid on other sums payable.
• Variable benefits paid by a pension plan that has defined contribution provisions are benefits that a member who ceased to be an active member or, following the death of the member, his or her spouse elects to receive from the funds held by the plan member under this type of provisions.
• Asset adjustments are accounting adjustments that had to be made, for example, to correct bookkeeping errors in the recording of cash inflows during a fiscal year.
• Refunds made to the employer are reimbursements to the employer of a portion of the surplus assets.

If Other: specify is selected, please list the source of the decrease in assets and indicate the amount. This may include:

• uncollectible contributions;
• uncollectible investment income owing;
• amounts remitted to Revenu Québec under the Unclaimed Property Act;
• other write-offs for outstanding amounts;
• reduction in the value of a municipal bond made under the Act to amend various legislative provisions concerning municipal affairs (2004, chapter 20).

Line 332

The net assets at the beginning of the fiscal year that are shown on line 332 must be the same as the net assets at the end of the preceding fiscal year. That amount is shown on line 333 of the preceding year’s return.

If the preceding financial assets were subject to a restatement of financial statements, the adjustment must be shown as Other sources of increase (lines 311 to 313) or Other sources of decrease (lines 326 to 328), and you must choose Adjustment of assets. The restatement could, for example, come from the presentation of a merger or division.

If it is the plan’s first fiscal year, the net assets of the preceding fiscal year is 0.

3.2.1 Assets

A plan’s assets comprise all the assets belonging to or owed to the pension fund.

Any deposit or investment made from the plan’s assets must be made on behalf of the fund or credited to its account.

Any deposit or investment in foreign funds must be reported in Canadian dollars as at the ending date of the fiscal year.

Line 336

Cash means the pension fund’s cash on hand. This mainly includes:

• demand deposits in a bank (current accounts, operating accounts or savings accounts);
• coins and bank notes;
• cheques, bank drafts and postal money orders.

Broadly speaking, cash on hand includes all securities that can be cashed within 30 days of the end of the fiscal year, except negotiable securities (shares, obligations, Treasury bonds, etc.).

Investments

These securities must all be reported at their fair value as at the date of the plan's financial situation.

To do so, the plan administrator must refer to the information on measuring the fair value in the CPA Canada Handbook – Accounting.

Investment income and earnings receivable must not be taken into account in the fair value of the investments shown on lines 336 through 358.

The table below contains a non-exhaustive, alphabetized list of investments made by pension plans. The line of the return on which each investment is to be indicated has been provided.

Line 337

On this line, include short-term notes and money market securities that mature in no more than one year.

• Treasury bonds;
• corporate promissory notes, also known as short-term notes, trade bills, bearer deposit notes and Treasury bills;
• bankers’ acceptances;
• certificates of deposit, term deposits, savings certificates and guaranteed investment certificates issued by a financial institution and which mature in no more than one year following their issuance;
• bonds and other securities whose maturity date is less than one year from the end of the fiscal year.

In addition to the value of the securities, include the value of money market funds, short-term investment funds and Treasury bond funds on line 337.

Line 337.1

A bond is a loan made to the issuer and can be guaranteed by a trust deed. It is not guaranteed if the loan is made on the basis of the borrower’s good reputation.

In addition to the value of the bonds and bond funds, include the value of fixed income funds on line 337.1.

Line 342

On this line, include the value of shares held in mortgage investment funds.

Line 343

Hypothecary (mortgage) loans are investments secured by real estate or movables. Include on line 343 the value of the securities or hypothecary (mortgage) loan contracts that are held directly by the pension fund.

Line 344.1

Term deposits include:

• certificates of deposit;
• savings certificates;
• guaranteed investment certificates issued by a financial institution and whose maturity is later than one year following the ending date of the fiscal year.

Where a deposit management contract is entered into with an insurance company, only the amount invested in the insurance company's general fund is a deposit that must be shown on this line.

Line 345.1

The annuity contracts guaranteed by an insurance company on this line are buy-in annuity contracts. These contracts must be considered as a pension fund investment, and their fair value must be entered on line 345.1, since the pension beneficiaries remain members of the plan.

The value of these contracts is usually determined with the help of the actuary who carries out the actuarial valuation of the plan.

Line 347.1

On this line, include the value of shares (ordinary and preferred) of Canadian corporations, Canadian shares and Canadian shares traded on an organized market outside Canada.

Line 349

On this line, include the value of shares (ordinary and preferred) of foreign corporations and foreign equity.

Line 349.1

On this line, include the value of shares (ordinary and preferred) of emerging market corporations and emerging market equity funds.

Emerging markets are developing countries that are experiencing strong economic growth and whose economic and social structures tend towards those of developed countries.

Line 352

The amounts that must be entered on this line are those that correspond to the value of immovables (real estate), infrastructures, shares in real estate or shares of infrastructures held directly, as investments, by the pension fund.

Where units of an immovables (real estate) or infrastructures fund are held by the pension fund, the amount of those units must be included on line 353.

Line 353

The amount that must be entered on this line is the value of the units held by the pension plan in immovables (real estate) and infrastructure investment funds. In this type of investment, the immovables (real estate) and infrastructures are not held directly by the pension fund.

Line 353.2

Private investments are investments that participate directly in the capital stock of private companies (which generally are not listed). Private investment funds combine the assets of several investors to make private investments. You must also include venture capital investments on this line.

Line 353.3

A hedge fund is a speculative fund in which a variety of strategies such as the use of derivatives, leveraging, and short selling are used to achieve a defined goal.

Line 355

On this line, you must enter the value of the units held in a balanced investment fund (diversified). They are constituted of various securities: shares, bonds, mortgages, real estate, etc.

You must also include asset allocation funds on this line.

Lines 356 to 358

Among the choices available, select the other investments that have not already been listed and indicate the amount.

Details

• private debt funds include private loans (not from a bank) other than hypothecary (mortgage) loans
• bank loan funds include debt securities generally benefiting from a priority rank compared with other receivables from the borrower with securities on certain of the borrower’s assets

• derivatives are financial instruments whose value is based on underlying goods or securities:

  • If the plan's financial statements present the net fair value of the derivatives, enter it here (a negative amount may be included).
  • If the derivatives must be presented on two lines in the plan’s financial statements (in assets and liabilities), enter the value of the assets on line 357 and those of the liabilities on line 375.
• asset-backed securities or mortgage-backed securities are securities with underlying assets or receivables (other than hypothecary), for example, asset-backed commercial paper (ABCP), securities backed by personal loans, credit card debts, etc.

If Other: specify is selected, list the investment and indicate the amount. They can be a specialized investment funds of a type other than those described on lines 337, 337.1, 342, 347.1, 349, 349.1, 353, 353.2, 353.3 and 355.

Accounts receivable and other assets

Contributions receivable, including interest (lines 360 to 362)

A contribution is considered receivable once service has been credited and the contribution has not been paid into the pension fund. For example, if the pension plan’s fiscal year ends on 31 December, the contributions for December that were not paid into the pension fund are receivable on that date and must therefore be entered on lines 360 through 362 according to the type of contribution.

Line 362

An employer placed under the protection of the Companies’ Creditors Arrangement Act may have been released from making amortization payments by the court. In such a case, if the payments have not been made by the end of the fiscal year, you must include their value on line 362.

Line 362.2

The amount of interest credited must be included in amounts receivable shown on this line.

For more information concerning residual benefits, consult the Payment of defined benefits page.

Line 363

Investment income and earnings receivable on the end date of the fiscal year include interest, dividends and rent as well as amounts earned on investments that have not yet been cashed in on that date.

Such income cannot be included in the fair value of the investments listed on lines 337 through 358.

Line 363.1

Receivable transfers to the pension fund are amounts that come from other pension plans such as:

• another supplemental pension plan;
• a locked-in retirement account (LIRA);
• a registered retirement savings plan (RRSP);
• a deferred profit-sharing plan (DPSP).

Interest accrued on unreceived transfers must be included.

If the plan has been divided or merged, see the Plan Division or Merger page.

Lines 364 to 365.3

Among the choices available, select other amounts receivable or assets for the current fiscal year that have not been previously included and indicate the amount.

Details

• Prepaid expenses include, in particular:
  • insurance premiums;
  • rents;
  • professional fees;
  • management fees or administration expenses;
  • other expenses paid in advance, such as annuities or benefits.
• Fixed assets include, in particular, immovables, land, movables and equipment needed to administer the plan.

If Other: specify is selected, specify the other amount or asset and include the amount. It can include, in particular:

• dividends, refunds or other advantages;
• amounts receivable from an indemnification agency (e.g., the Autorité des marchés financiers or Assuris) in the event of bankruptcy of a financial institution

3.2.2 Liabilities

For the purposes of lines 372 through 378, the liabilities are constituted of the debts or sums owing by the plan as at the end of the fiscal year. It does not include pension obligations.

Line 372

On this line, enter the following as of the ending date of the fiscal year:

• the amount of the hypothecary (mortgage) borrowings;
• the amounts owing for overdrawn accounts or credit lines used to acquire securities and investments.

Line 372.1

On this line, give the balance of the benefits, including interest, that has been generated and will be paid, regardless of the time frame to make the full payment to the member.

For more information concerning residual benefits, consult the Payment of defined benefits page.

Line 373

Amounts owing, including interest, correspond to transfers, pensions and refunds that are required but which remain to be paid by the plan as at the end of the fiscal year.

Line 373.1

A supplemental pension plan is a plan to which the employer is required to contribute and which is, as the case may be:

• governed by the Supplemental Pension Plans Act;
• governed by an act of a legislative authority other than Québec;
• established by an act of the Parliament of Québec, another Canadian legislature or another State, for example, the Government and Public Employees Retirement Plan (RREGOP).

Transfers payable to another supplemental pension plan, including interest, include:

• those payable to another supplemental pension plan following a division or merger;
• those to pay for a non‐active member who requested the transfer of his or her benefits in the pension plan of their new employer.

If the plan has been divided or merged, consult the Plan Division or Merger page.

Line 374

Expenses owing are the amount of the administration expenses and management fees of the pension plan that were owing as at the ending date of the plan’s fiscal year.

Lines 375 and 376

Among the choices available, select the other liabilities that have not been previously included and indicate the amount.

If Other: specify is selected, give the source of the other liabilities and include the amount. They can include:

• payments owing but not made for hypothecary (mortgage) borrowings still outstanding as at the ending date of the plan’s fiscal year;
• payments owing but not made for other borrowings outstanding as at the ending date of the plan’s fiscal year.

Line 376.1

If contributions over and above those required on lines 305, 307 and 308 were made for a future fiscal year, enter the amounts on this line.

Otherwise, they must be included on line 305, 307 or 308 (as applicable), even if the amount exceeds that of the required contributions.

Lines 376.2 to 376.4

Among the choices available, select the sums collected in advance that have not been previously included and indicate the amount.

Details

Retirement pensions collected in advance imply, for certain plans, that an insurance company paid into the pension fund, during the fiscal year, an amount that corresponds to the pensions of retirees covered by guaranteed annuity contracts. The plan will pay them at the beginning of the next fiscal year.

If Other: specify is selected, please specify the sums collected in advance and indicate the amount.

Information regarding the financial report

Generally speaking, the financial report of a pension plan must be audited. However, plans with a fair value of its net assets of less than $5 000 000 may be exempt.

When the plan’s financial report must be audited

The administrator of a plan whose net assets have a fair value equal to or greater than $5 000 000 must have the plan’s financial report audited. In that situation, the auditor must complete lines 387 and 388 and, if required, provide the explanations requested on line 389 under the Consult, verify and submit the AIR subsection.

If the plan’s financial report must be audited, the following 2 documents must be provided by an independent auditor:

• Independent auditor’s report concerning the financial statements;
• Report on Supplementary Matters Arising from an Audit regarding lines 387 through 389 of the return.

Both reports must be signed by the auditor or by his or her firm and must be sent to Retraite Québec at the same time as the annual information return.

When the plan’s financial report may be exempt from an audit

The administrator of a plan whose fair value of its net assets is less than $5 000 000 may be exempt from having the financial report audited if:

• It is the plan’s first fiscal year;
  or
• it is not the plan’s first fiscal year, the administrator informed the members and beneficiaries during the annual meeting of its intention not to have the plan’s financial report audited for the fiscal year covered by this annual information return.

If the plan is exempt from an audit, the administrator must answer the question on line 387 and, if required, provide the explanations requested on line 389.

Line 387

Cash on hand and investments are registered in the name of the pension fund or for its account particularly in the following cases:

• investment securities are kept by the securities custodian and on account with a securities clearing house;
• the administrator keeps a record of the inflows and outflows of petty cash;
• investments are made in a master trust and the corresponding units are recorded in the pension fund’s account.

Cash on hand and investments are not registered in the name of the pension fund or for its account particularly in the following cases:

• an investment is registered in the employer’s name;
• amounts are in the employer’s account.

Line 401

The plan administrator must adopt a written investment policy that takes into account:

• the type of plan concerned;
• the plan’s characteristics;
• the plan’s financial commitments;
• elements prescribed in section 170 of the Act;
• the plan’s funding policy.

If the plan administrator has not yet adopted a written investment policy, leave the space for the date blank.

If the administrator determined that the investment policy did not need to be revised, the date on which he or she decided to renew it must be indicated on this line. The investment policy must be revised periodically by the plan administrator so as to make sure it is still appropriate.

In the case of a plan that allows members to choose how all the amounts credited to their account are invested, the administrator is not required to adopt an investment policy. Leave the space for the date blank.

Line 401.3

The investment policy must take into account the funding policy, which must be established for all plans, except for defined‐contribution plans.

If the administrator determined that the investment policy did not need to be revised because it already takes into account the funding policy, please select Yes.

If no date is entered on line 401, please select No.

Line 401.5

The aim of the sustainable investment policy is to integrate all investment strategies that take into account the Environmental, Social and Governance (ESG) factors as part of the investment decision-making process or when holding investments. This policy aims to manage certain financial and non-financial risks in order to achieve robust long-term performance.

The following are examples of ESG factors:

Environmental (E):

• Climate change;
• Protection of the environment, endangered species and biodiversity;
• Energy consumption (greenhouse gas emissions);
• Sustainable use of resources (water, forest, etc.);
• Pollution and waste management;
• Other various topics related to the environment.

Social (S):

• Diversity and inclusion in the workforce;
• Work conditions (health and safety);
• Compliance with legislation;
• Labour and supply chain;
• Customer relations and supply;
• Local and indigenous communities;
• Respect of human rights;
• Other social topics (tobacco, alcohol, child labour, weapons, gambling, etc.)

Governance (G):

• Executive management remuneration (severance pay, incentive compensation, difference between executive management and salaried employees' remuneration);
• Transparency
• Independence and diversity of administrators;
• Rights granted to shareholders;
• Mergers/acquisitions;
• Designation of the auditor;
• Political lobbying and donations.

Line 407.0

Please indicate whether the plan holds shares in a master trust.

Line 407

Please indicate the fair value of shares held by the plan in a master trust.

Line 411

The securities custodian of the pension fund is a natural or legal person to whom all or part of the plan’s securities have been entrusted. Custodians are also known as depositaries or trustees.

The name of any custodian who is not an insurance company, a bank, a credit union or a trust company must be given in the space provided.

Line 412.0

A letter of credit may be provided by the employer in order to be released, in whole or in part, from paying the employer stabilization amortization payments required during the fiscal year (section 42.1 of the Act).

Line 412

Give the total amount of all letters of credit provided by the employer at the end of the fiscal year.

Line 412.1

Enter the amount of the letter(s) of credit provided for the payment of monthly payments owed during the fiscal year covered by this return.
Furthermore, you must not include the amount of the letters of credit provided for the fiscal year on lines 308 and 362.

Lines 413 to 422

Enter the information on the investments made to the same issuer of which the proportion invested is greater than 10% of the total assets entered on line 370. Enter the name of the issuer and the fair value of such assets as at the ending date of the fiscal year.

Important

• Enter the name of the issuer of the investment and not the investment manager’s name;
• In the case of a plan that has entered into a deposit management contract with an insurance company, you must take into consideration each investment made under the contract;
• In the case of investments made in a master trust, you must take into consideration each investment in the master trust in proportion to the shares held by the pension plan in the master trust.

Line 425.0

In the case of certain pension plans, plan members are asked to make certain decisions with regard to investment choices. The plans allow members to distribute all or part of the amounts deposited into their account among various investments.

Line 425

• Enter 100% if members can make decisions for all amounts paid into their account.

• Enter the percentage of the fund’s investments where the members decide for a portion of those investments.

  For example, if the plan provides for the investments made in the defined contribution component to be chosen by members and that component makes up for 50% of the amount entered on line 359, then you must enter that 50% of the decision belongs to members.

If the plan administrator has not completed the Canada Revenue Agency Form T244, the plan administrator must complete this schedule and attach it to the annual information return required by the Supplemental Pension Plan Act. If this schedule is filed late or not filed with Retraite Québec at all, Canada Revenue Agency (CRA) can impose financial penalties under subsection 162(7) of the Income Tax Act. CRA can also revoke the registration of the plan under subsections 147.1(11) and (12) of the Income Tax Act.

If you need assistance in completing this schedule, please contact CRA at the general enquiries service of the Registered Plans Directorate at 1-800-267-3100.

Line 501
The registration number assigned by Retraite Québec is a five digit [sic] number which usually differs from the registration number assigned by the CRA.

Line 502
The CRA registration number is a seven-digit number, which usually differs from the registration number assigned by Retraite Québec. If you do not know the CRA registration number, please contact CRA's Registered Plans Directorate at the telephone number listed above.

All registered plans and all plans deemed to be registered have a name by which they are known. The name must make it possible to distinguish the plan from any other plan offered by the same employer.

Line 503
In the space provided, please specify the plan's fiscal year-end.

Lines 504, 505, 506
In the space provided, please specify the location of where the books and records are kept.

Line 507
All funds from the plan that were used to purchase an annuity from an insurance company must be reported on this line. Insured plans are not required to complete line 507.
Section 7 – Additional Information
Definitions :

Multi-Employer Plan (MEP): In accordance with the Income Tax Regulations, a MEP is a plan for which, at the beginning of the year, it is reasonable to expect that no more than 95% of the active plan members will work for any one of the employers or group of related employers at any time during the year.

For a complete definition of a MEP, see subsection 8500(1) of the Income Tax Act [sic] Regulations.

Specified Multi-Employer Plan (SMEP): In accordance with the Income Tax Regulations, a SMEP has the following characteristics:

• the plan is a MEP (see definition above);
• employers participate in the plan under a collective bargaining agreement and contributions are according to a negotiated formula;
• employer contributions are based on hours worked by employees or some other similar measure;
• all or nearly all (90% is acceptable) of the employers are taxable entities; and
• it is expected that at least 15 non-related employers will contribute to the plan in the year, or at least 10% of the active members of the plan will be employed in the year by more than one participating employer; or
• the plan administrator applied and was granted designation as a SMEP under paragraph 8510(2)(b) of the Income Tax Regulations.

For a complete definition of a SMEP, see subsection 8510(2) of the Income Tax Regulations.

Connected Persons: In accordance with the Income Tax Regulations, a connected person is generally one who:

• owns, directly or indirectly, 10% or more of the issued shares of any class of the capital stock of the employer or a related corporation;
• does not deal at arm's length with the employer (see section 251 of the Income Tax Act for details); or
• is a specified shareholder of the employer by reason of paragraph (d) of the definition of "specified shareholder" in subsection 248(1) of the Income Tax Act.

For a complete definition of a connected person, see subsection 8500(3) of the Income Tax Regulations.

Plan Administrator: The plan administrator is the person or the group of persons with ultimate responsibility for administering the plan. In many cases, the plan administrator will be the employer or a board of trustees.

Line 511
If the plan sponsor providing the plan is a corporation, indicate if the corporation underwent a change of control during the plan year. When the sponsor is not a corporation, check N/A box for non applicable.

Line 514
Indicate the total number of active members, of those specified on line 9, who were connected persons (as defined above) at the end of the plan year.

Line 387

Cash on hand and investments are registered in the name of the pension fund or for its account particularly in the following cases:

• investment securities are kept by the securities custodian and on account with a securities clearing house;
• the administrator keeps a record of the inflows and outflows of petty cash;
• investments are made in a master trust and the corresponding units are recorded in the pension fund’s account.

Cash on hand and investments are not registered in the name of the pension fund or for its account particularly in the following cases:

• an investment is registered in the employer’s name;
• amounts are in the employer’s account.

Line 388

This question makes it possible to know whether the information contained in the Statement of changes in the plan’s net assets and Net assets subsections correspond to the information in the audited financial report.

There must be no discrepancy where the financial information is broken down differently but the major groupings are identical. It is not necessary that all the financial information be exactly alike. The relative importance of any discrepancies is determined with reference to Canadian Auditing Standard (CAS) 320, Materiality in Planning and Performing an Audit, of the CPA Canada Handbook - Assurance.

The auditor must check “Yes,” particularly in the following cases:

• the discrepancy is due to the presentation of the master trust;
• where the financial statements, in the case of municipalities, separate the portion before and after 1 January 2014, although the return does not require such a distinction.

The auditor must check “No,” particularly in the following cases:

• where the financial information was not taken from the financial statements in respect of which his or her report was made;
• where there are discrepancies due to the division or merger of the plan.